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
Life Law Unit
The Hartford Financial Services Group, Inc.
200 Hopmeadow Street
Simsbury, Connecticut 06089
(Name and Address of Agent for Service)
Registrant's telephone number, including area code: (860) 843-4586
Date of fiscal year end: October 31, 2004
Date of reporting period: November 1, 2003 - October 31, 2004
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
DEAR FELLOW SHAREHOLDERS,
On September 21, 2004, The Hartford Mutual Funds Board of Directors
appointed Dr. Robert M. Gavin, Jr. to be its independent chair, succeeding Tom
Marra, President and Chief Operating Officer of Hartford Life. Although Tom will
remain on the Board of Directors, I would like to thank him for his outstanding
leadership over the past several years. In addition, I look forward to working
with Bob in his new position. Bob brings a tremendous amount of experience and
dedication to the role of chairman and his knowledge of mutual fund governance
makes him uniquely qualified to lead The Hartford Mutual Funds Board of
Directors in the years to come.
As I look back at the year, the U.S. economy continued to expand at the end of
October, albeit at a slower pace than the first quarter of the year. Slower than
expected economic growth was attributed to several factors, including rising oil
prices, turmoil in Iraq and a tight presidential race. These factors also
influenced the equity market throughout the year, creating volatility and
uncertainty that put a damper on investor confidence. Nevertheless, the market
as measured by the S&P 500 Index(1) returned 3.1 % year-to-date and 94% for the
12-month period ending October 31, 2004.
While 2004 has been a challenging year for investors, there were positive signs.
A clear cut decision in the presidential election appeared to push the S&P 500
Index to 3-year highs during the second week of November. Additionally, the
Federal Reserve showed its confidence in a strengthening economy and improving
labor market by increasing its federal funds target rate to 2.0% from 1.75%.
Despite these signs of improvement, we may continue to see market volatility in
the coming months. It's periods of market turbulence like these that truly
underscore the importance of professional investment management. The Portfolio
Managers at Wellington Management Company, LLC and Hartford Investment
Management Company average 17 years of investment experience and have managed
money through all types of market environments. Such a breadth of experience
provides a distinct advantage that can make a difference over the long term.
Another way to help reduce the volatility of your portfolio is to work with your
investment representative to create an asset allocation plan. Asset allocation
is a time-tested strategy where investments are diversified among various asset
classes including stocks, bonds and cash equivalents. Over time, this has been
an effective way to invest while maintaining a comfortable level of risk.
On May 28, 2004, we launched The Hartford Allocation Funds to offer a simple,
yet efficient, way to create a diversified investment portfolio. Each of these
Funds represents a different opportunity for investors based on their risk
tolerance and time horizon.
The Hartford Allocation Funds use a "fund-of-funds" approach where each Fund
invests in a diversified group of other Hartford Mutual Funds, known as
Underlying Funds. Furthermore, the Allocation Funds are actively managed and
reviewed to be sure they maintain their appropriate asset allocations over time.
The Hartford Allocation Funds represent another helpful step The Hartford Mutual
Funds has taken for our shareholders. We believe shareholder value, world class
customer service and investment management are key goals needed to meet your
expectations and to be a successful company. You can be sure we will continue to
work hard to maintain these goals.
Thank you for investing in The Hartford Mutual Funds.
DAVID ZNAMIEROWSKI
President, The Hartford Mutual Funds
1 The S&P 500 is an unmanaged Index which measures broad-based changes in
stock market conditions based on the average performance of 500 widely held
common stocks. It does not represent the performance of a specific product
or Investment option. This index is not available for direct Investment.
<Table>
Annual Report
October 31, 2004 (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 1
The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.
Financial Statements
Schedule of Investments at October 31, 2004:
The Hartford Advisers Fund 78
The Hartford Aggressive Growth Allocation Fund 82
The Hartford Balanced Allocation Fund 83
The Hartford Capital Appreciation Fund 84
The Hartford Conservative Allocation Fund 87
The Hartford Disciplined Equity Fund 88
The Hartford Dividend and Growth Fund 90
The Hartford Equity Income Fund 92
The Hartford Focus Fund 94
The Hartford Global Communications Fund 95
The Hartford Global Financial Services Fund 97
The Hartford Global Health Fund 99
The Hartford Global Leaders Fund 101
The Hartford Global Technology Fund 103
The Hartford Growth Allocation Fund 105
The Hartford Growth Fund 106
The Hartford Growth Opportunities Fund 107
The Hartford High Yield Fund 109
The Hartford Income Allocation Fund 116
The Hartford Income Fund 117
The Hartford Inflation Plus Fund 124
The Hartford International Capital Appreciation Fund 125
The Hartford International Opportunities Fund 128
The Hartford International Small Company Fund 131
The Hartford MidCap Fund 134
The Hartford MidCap Value Fund 136
The Hartford Money Market Fund 138
The Hartford Short Duration Fund 140
The Hartford Small Company Fund 146
The Hartford SmallCap Growth Fund 148
The Hartford Stock Fund 151
The Hartford Tax-Free California Fund 153
The Hartford Tax-Free Minnesota Fund 155
The Hartford Tax-Free National Fund 157
The Hartford Tax-Free New York Fund 161
The Hartford Total Return Bond Fund 163
The Hartford U.S. Government Securities Fund 170
The Hartford Value Fund 172
The Hartford Value Opportunities Fund 174
Statements of Assets and Liabilities at October 31, 2004 176
Statements of Operations for the Period Ended October 31, 2004 186
Statements of Changes in Net Assets for the Periods Ended October 31,
2004 and October 31, 2003 196
Notes to Financial Statements 216
Financial Highlights 238
Report of Independent Registered Public Accounting Firm 263
Directors and Officers (Unaudited) 264
Federal Income Tax Information (Unaudited) 266
Privacy Policy 271
The Hartford Advisers Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
MAXIMUM
LONG-TERM
RETURN.
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/04
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
16563 18694 17244
17260 19674 17414
17353 20036 17573
17492 20314 17787
17317 20008 17951
17002 19693 17400
17130 19963 17311
17421 20351 17382
16989 19677 17566
17118 19756 17938
17082 19969 18001
10/04 17094 20275 18158
</Table>
<Table>
--- ADVISERS FUND -- LEHMAN BROTHERS GOVERNMENT/ --- S&P 500 INDEX
$9,450 starting value CREDIT BOND INDEX $10,000 starting value
$17,094 ending value $10,000 starting value $20,275 ending value
$18,158 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ----------------------------------------------------------
Advisers A# 7/22/1996 3.93% 0.38% 7.42%
- ----------------------------------------------------------
Advisers A## 7/22/1996 -1.81% -0.75% 6.69%
- ----------------------------------------------------------
Advisers B# 7/22/1996 3.21% -0.33% NA*
- ----------------------------------------------------------
Advisers B## 7/22/1996 -1.79% -0.69% NA*
- ----------------------------------------------------------
Advisers C# 7/22/1996 3.27% -0.28% 6.69%
- ----------------------------------------------------------
Advisers C## 7/22/1996 1.24% -0.49% 6.56%
- ----------------------------------------------------------
Advisers Y# 7/22/1996 4.22% 0.87% 7.93%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGERS
RAND L. ALEXANDER, CFA
Senior Vice President, Partner, Portfolio Manager
JOHN C. KEOGH
Senior Vice President, Partner, Portfolio Manager
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Advisers Fund Class A, before sales charge, returned 3.93% for the
twelve-month period ended October 31, 2004. The Fund trailed its Composite Index
(S&P 500 Index 55%, Lehman Brothers Government/Credit 35%, Treasury Bill 10%)
return of 7.92%, and the Lipper Flexible Portfolio Funds average of 7.67%.
WHY DID THE FUND PERFORM THIS WAY?
The recovery in the U.S. equity markets continued at the end of 2003 into the
early part of 2004. Strong earnings, low interest rates, improving employment
trends, and merger activity propelled indexes higher. These positive factors
were offset somewhat by concerns over potential Federal Reserve interest rate
increases, higher energy prices, renewed fears of terrorism following the
bombings in Madrid, and volatility in Iraq. For the period, the S&P 500 index
outperformed the Lehman Government/Corporate Index.
The Fund's relative results were held back by performance in the equity portion
of the portfolio. Major detractors were stock selection and an overweight
position in Information Technology, which was the worst performing sector in the
S&P 500 during the period. The Fund had no exposure to Utilities and
Telecommunications, which despite limited long-term growth prospects, performed
well as investor sought higher yields in an uncertain stock market and interest
rate environment. The three largest detractors during the period were: Intel
(Semiconductors and Semiconductor equipment), which declined due to inventory
buildups, Marsh & McLennan, which fell after New York Attorney General Elliot
Spitzer began an investigation into the firm's business practices, and Eli
Lilly, which fell due to regulatory and pricing concerns for drug stocks.
On the positive side, the Fund was positioned to take advantage of the sharp
increase in oil prices by maintaining a higher weighting in Energy stocks than
the benchmark during the year. Two of the strongest contributors to absolute
performance were Exxon Mobil and Chevron Texaco. Among Industrials, General
Electric was a top contributor to the Fund, posting strong results in their
entertainment, plastics, and health care businesses.
Within the fixed income portion of the Fund, returns were slightly behind our
benchmark. Our fundamental high quality bias generated lower returns than an
approach that invested more aggressively in some of the lower quality segments
of the market. We continue to believe this approach is the correct one as
"insurance" for those unpredictable periods of stock market volatility. Our
tactical duration management was a positive factor this year. We had a slightly
short duration bias in anticipation of a stronger economy and higher interest
rates.
1
- --------------------------------------------------------------------------------
WHAT IS THE OUTLOOK?
We maintain equity exposure in the Fund at around 70%, which is at the high end
of our historical range. We believe stocks should outperform bonds in the
current environment. Our equity investment positioning continues to have a
cyclical bias with on-going overweights in Industrials and Technology. We
believe economic growth is sustainable and are seeking more exposure to business
spending rather than the consumer part of the economy. Large caps stocks have
underperformed smaller cap stock, but we maintain our conviction in large cap,
high quality companies. A weak dollar benefits large multi-nationals who export
goods. We believe dividends will be increasingly important, and valuations for
industry leading companies are attractive relative to historical levels. An
improving economic environment is also supportive of our slightly shorter
duration posture, as interest rates should continue their rise as the Federal
Reserve raises short term interest rates.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.3%
- -------------------------------------------------------------------
Capital Goods 3.6
- -------------------------------------------------------------------
Consumer Cyclical 5.6
- -------------------------------------------------------------------
Consumer Staples 8.8
- -------------------------------------------------------------------
Direct Federal Obligations 13.6
- -------------------------------------------------------------------
Energy 6.3
- -------------------------------------------------------------------
Finance 26.4
- -------------------------------------------------------------------
Health Care 10.4
- -------------------------------------------------------------------
Services 4.3
- -------------------------------------------------------------------
Technology 17.7
- -------------------------------------------------------------------
Transportation 0.4
- -------------------------------------------------------------------
Utilities 0.7
- -------------------------------------------------------------------
U.S. Government Agencies 3.2
- -------------------------------------------------------------------
Other Assets & Liabilities -6.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
COMPOSITION BY SECTOR
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
SECTOR NET ASSETS
- -------------------------------------------------------------------
Common Stocks 68.4%
- -------------------------------------------------------------------
Asset Backed and Commercial Mortgage Securities 2.7
- -------------------------------------------------------------------
Corporate Bonds: Investment Grade 11.0
- -------------------------------------------------------------------
U.S. Government Securities 13.6
- -------------------------------------------------------------------
U.S. Government Agencies 3.2
- -------------------------------------------------------------------
Short-Term Investments 7.4
- -------------------------------------------------------------------
Other Assets & Liabilities -6.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC); (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,005.30 $5.65
Hypothetical @ $1,000 $1,019.51 $5.69
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,002.40 $9.26
Hypothetical @ $1,000 $1,015.89 $9.32
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,002.00 $8.91
Hypothetical @ $1,000 $1,016.24 $8.97
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,005.90 $3.53
Hypothetical @ $1,000 $1,021.62 $3.56
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.12%, 1.84%,
1.77% and 0.70% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
2
The Hartford Aggressive Growth Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/28/04 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
AGGRESSIVE GROWTH ALLOCATION FUND S&P 500 INDEX
--------------------------------- -------------
5/28/04 9450 10000
6/04 9705 10194
7/04 9318 9857
8/04 9280 9896
9/04 9592 10003
10/04 9809 10156
</Table>
<Table>
--- AGGRESSIVE GROWTH ALLOCATION FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$9,809 ending value $10,156 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE INCEPTION
- ------------------------------------------------------------
Aggressive Growth Allocation A# 5/28/2004 3.80%
- ------------------------------------------------------------
Aggressive Growth Allocation A## 5/28/2004 -1.89%
- ------------------------------------------------------------
Aggressive Growth Allocation B# 5/28/2004 3.50%
- ------------------------------------------------------------
Aggressive Growth Allocation B## 5/28/2004 -1.50%
- ------------------------------------------------------------
Aggressive Growth Allocation C# 5/28/2004 3.50%
- ------------------------------------------------------------
Aggressive Growth Allocation C## 5/28/2004 1.46%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B and C shares will
vary from the results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Senior Vice President
CHRISTOPHER HANLON, CFA
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the period ended October 31, 2004, since inception of the Fund on May 28,
2004, The Hartford Aggressive Growth Allocation Fund Class A placed in the 2nd
quartile with a total return, before sales charge, of 3.80% versus a return of
3.56% for the Lipper Global Multi-Cap Core Funds and 1.56% for the S&P 500
Index.
WHY DID THE FUND PERFORM THIS WAY?
Within the S&P 500, energy was the top performer, followed by utilities and
telecommunication services. Health care was the laggard in the S&P 500, followed
by consumer staples and information technology. The Fund is structured around
five equity indices. Since inception of the Fund, the MSCI EAFE at 5.62% was the
top performer, followed by the S&P 500/Barra Value at 4.79%, Russell 2000 at
3.23%, S&P Midcap 400 at 1.73% and S&P 500/Barra Growth at -1.65%. The Fund
benefited from value within its large cap equity allocations. The Fund also
benefited from its allocations within the international, mid-cap and small cap
sectors. None of those sectors are represented in the S&P 500.
WHAT IS THE OUTLOOK?
The economy continues to expand at a healthy pace and the October payroll survey
indicated that the labor market may have finally gained traction. We therefore
expect that growth for the rest of the year will be firm as continued job
creation leads to higher income and spending. However, recent economic data is
not conclusive, and there are mixed signals in the business and consumer sector.
Corporate earnings growth is still healthy, but has recently slowed from very
high levels. Business investments continue to increase. We expect that business
investments will pick up further as the recovery continues, which again should
lead to higher job creation. Inventory levels are low, signaling that the
expansion has momentum. In light of our view of a robust economy, stronger
corporate balance sheets and increasing inflation, we expect domestic equity
markets to perform well. Additionally, we expect the Fund's international
exposure to benefit from overseas growth.
3
- --------------------------------------------------------------------------------
COMPOSITION BY UNDERLYING FUND
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 5.8%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 14.6
- -------------------------------------------------------------------
Hartford Dividend and Growth Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 12.7
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 10.7
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 14.6
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 5.8
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 8.8
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 13.6
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 5.8
- -------------------------------------------------------------------
Other Assets & Liabilities 2.7
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of May 28, 2004 (commencement of operations)
through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
EXPENSES PAID
DURING PERIOD **
MAY 28, 2004
BEGINNING ENDING THROUGH
ACCOUNT VALUE ACCOUNT OCTOBER 31,
MAY 28, 2004 VALUE 2004
(COMMENCEMENT OCTOBER 31, (COMMENCEMENT
OF OPERATIONS) 2004 OF OPERATIONS)
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,038.00 $2.91
Hypothetical @ $1,000 $1,018.46 $2.88
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,035.00 $5.72
Hypothetical @ $1,000 $1,015.69 $5.67
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,035.00 $5.72
Hypothetical @ $1,000 $1,015.69 $5.67
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.67%, 1.32%
and 1.32% for classes A, B and C, respectively, multiplied by the average
account value over the period, multiplied by 156/366 (to reflect the one-half
year period).
These ratios do not reflect fees and expenses associated with the underlying
funds. If such fees and expenses had been included, the expenses would have been
higher. Please refer to your prospectus for details on the expenses that apply
to the underlying funds.
4
The Hartford Balanced Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION
AND
INCOME.
PERFORMANCE OVERVIEW(2) 5/28/04 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
BALANCED ALLOCATION FUND S&P 500 INDEX AGGREGATE BOND INDEX
------------------------ ------------- --------------------
5/28/04 9450 10000 10000
6/04 9582 10194 10057
7/04 9394 9857 10157
8/04 9412 9896 10351
9/04 9606 10003 10379
10/04 9748 10156 10466
</Table>
<Table>
--- BALANCED ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
$9,450 starting value BOND INDEX $10,000 starting value
$9,748 ending value $10,000 starting value $10,156 ending value
$10,466 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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 Index and Commercial
Mortgage-Backed Securities Index.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE INCEPTION
- ---------------------------------------------------
Balanced Allocation A# 5/28/2004 3.15%
- ---------------------------------------------------
Balanced Allocation A## 5/28/2004 -2.50%
- ---------------------------------------------------
Balanced Allocation B# 5/28/2004 2.82%
- ---------------------------------------------------
Balanced Allocation B## 5/28/2004 -2.18%
- ---------------------------------------------------
Balanced Allocation C# 5/28/2004 2.82%
- ---------------------------------------------------
Balanced Allocation C## 5/28/2004 0.79%
- ---------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B and C shares will
vary from the results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Senior Vice President
CHRISTOPHER HANLON, CFA
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the period ended October 31, 2004, since inception of May 28, 2004, The
Hartford Balanced Allocation Fund Class A placed in the 1st quartile with a
total return, before sales charge, of 3.15% versus the return of 2.28% for the
Lipper Balanced Funds and 1.56% for the S&P 500 Index and 4.65% for the Lehman
Brothers U.S. Aggregate Bond Index.
WHY DID THE FUND PERFORM THIS WAY?
Within the S&P 500, energy was the top performer, followed by utilities and
telecommunication services. Health care was the laggard in the S&P 500, followed
by consumer staples and information technology. The equity component of the Fund
is structured around five equity indices. Since inception of the Fund, the MSCI
EAFE at 5.62% was the top performer, followed by the S&P 500/Barra Value at
4.79%, Russell 2000 at 3.23%, S&P Midcap 400 at 1.73% and S&P 500/Barra Growth
at -1.65%. The Fund benefited from value within its large cap equity
allocations. The Fund also benefited, relative to the benchmark, from its
allocations within the international, mid-cap and small cap sectors. None of
those sectors are represented in the S&P 500.
Yields fell, with the 10 year Treasury note yield falling 62 basis points to
4.03% and the 5 year Treasury note yield falling 51 basis points to 3.28%. The
Fund's duration is targeted to be less than the Lehman Aggregate based on the
risk preferences of the Fund and in anticipation of rising rates. For the
period, short duration positioning detracted from overall performance.
Within the major sectors of the Lehman Brothers U.S. Aggregate Index, corporates
were the top performer, while asset-backed securities were the worst. The fixed
income component of the Fund is structured around five fixed income indices. For
the period, the Lehman Brothers High Yield Index was the top performer at 8.27%,
followed by the Lehman Brothers U.S. TIPS Index at 4.92%, Lehman Brothers U.S.
Aggregate Index at 4.65%, Lehman Brothers 1-3 Year Government at 1.41% and
Merrill Lynch 3-Month U.S. Treasury Bill Index at 0.57%. The Fund benefited,
relative to the Index, from its allocation to the high yield and Treasury
Inflation Protected Securities (TIPS) asset classes. The Fund's benchmark does
not have an allocation to TIPS or high yield securities. Allocations to cash
securities contributed the least to the portfolio.
WHAT IS THE OUTLOOK?
The economy continues to expand at a healthy pace and the October payroll survey
indicated that the labor market may have finally gained traction. We therefore
expect that growth for the rest of the year will be firm as continued job
creation leads to higher income and spending. However, recent economic data is
not conclusive, and there are mixed signals in the business and consumer sector.
Corporate earnings growth is still healthy, but
5
- --------------------------------------------------------------------------------
has recently slowed from very high levels. Business investments continue to
increase. We expect that business investments will pick up further as the
recovery continues, which should lead to higher job creation. Inventory levels
are low, signaling that the expansion has momentum. In light of our view of a
robust economy, stronger corporate balance sheets and increasing inflation, we
expect domestic equity markets to perform well. Additionally, we expect the
Fund's international exposure to benefit from overseas growth.
The Federal Reserve believes that the expansion is on solid footing, and
predicts that growth will be moderate in the near term despite the rise in
energy prices. We believe the Federal Reserve will continue to raise rates and
we are anticipating slightly higher rates in the coming three to six months. Our
outlook is for short Treasury rates to rise more than longer Treasury rates and
a flatter yield curve to ensue. The allocations to TIPS and high yield should
continue to perform well given our view of economic growth, stronger corporate
earnings and increasing inflation.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 8.8%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 3.9
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 6.8
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 8.8
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 9.7
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 12.7
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Stock Fund, Class Y 6.8
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 7.8
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 7.8
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 3.9
- -------------------------------------------------------------------
Other Assets & Liabilities 2.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of May 28, 2004 (commencement of operations)
through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
EXPENSES PAID
DURING PERIOD **
BEGINNING ENDING MAY 28, 2004
ACCOUNT VALUE ACCOUNT THROUGH
MAY 28, 2004 VALUE OCTOBER 31, 2004
(COMMENCEMENT OCTOBER 31, (COMMENCEMENT
OF OPERATIONS) 2004 OF OPERATIONS)
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,031.50 $2.55
Hypothetical @ $1,000 $1,018.80 $2.54
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,028.20 $5.58
Hypothetical @ $1,000 $1,015.81 $5.54
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,028.20 $5.58
Hypothetical @ $1,000 $1,015.81 $5.54
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.59%, 1.29%
and 1.29% for classes A, B and C, respectively, multiplied by the average
account value over the period, multiplied by 156/366 (to reflect the one-half
year period).
These ratios do not reflect fees and expenses associated with the underlying
funds. If such fees and expenses had been included, the expenses would have been
higher. Please refer to your prospectus for details on the expenses that apply
to the underlying funds.
6
The Hartford Capital Appreciation Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(3) 7/22/96 - 4/30/04
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
35616 18694
38063 19674
38653 20036
40006 20314
39966 20008
38559 19693
39334 19963
40899 20351
38916 19677
38297 19756
39599 19969
10/04 40494 20275
</Table>
<Table>
--- CAPITAL APPRECIATION FUND --- S & P 500 INDEX
$9,450 starting value $10,000 starting value
$40,494 ending value $20,275 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
PORTFOLIO MANAGER
SAUL J. PANNELL, CFA
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ---------------------------------------------------------
Cap App A# 7/22/1996 16.23% 8.42% 19.21%
- ---------------------------------------------------------
Cap App A## 7/22/1996 9.84% 7.20% 18.40%
- ---------------------------------------------------------
Cap App B# 7/22/1996 15.42% 7.63% NA*
- ---------------------------------------------------------
Cap App B## 7/22/1996 10.42% 7.33% NA*
- ---------------------------------------------------------
Cap App C# 7/22/1996 15.52% 7.70% 18.42%
- ---------------------------------------------------------
Cap App C## 7/22/1996 13.36% 7.48% 18.28%
- ---------------------------------------------------------
Cap App Y# 7/22/1996 16.82% 9.00% 19.81%
- ---------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Capital Appreciation Fund Class A, before sales charge, returned
16.23% for the twelve month period ended October 31, 2004. The Fund outperformed
the 60% Russell 2500/40% S&P 500 blended benchmark return of 11.23%, the Lipper
Multi-Cap Core Funds average return of 8.25% and 9.42% return for the S&P 500.
WHY DID THE FUND PERFORM THIS WAY?
The twelve months ended October 31, 2004 were subject to significant volatility.
Late 2003 and early 2004 saw positive equity market returns driven by a
strengthening economy, robust corporate profits, and improved investor
sentiment. Stocks peaked in February, then entered a trading range before moving
down in July and August. The summer weakness was a result of investor focus on
several concerns: a softening economy, uncertainty over presidential elections,
continued violence in Iraq, and worries of potential terrorist strikes during
the political conventions or the Olympics. By fall, many of these worries had
been mitigated. The economy seemed to be moving forward despite record high oil
prices and America remained free of terrorist attacks. This benign news powered
another rise in September, resulting in positive full-year performance.
Performance by sector varied widely during the year, although nearly all sectors
showed positive results. Driven by rising oil prices and strong demand, the
Energy (47.1%) and Materials (28.5%) sectors led the benchmark while Technology
(-6.5%), Health Care (6.5%) and Consumer Staples (6.5%) lagged.
The Fund outperformed in this volatile environment by maintaining its focus on
stock selection. Positions in global conglomerate Tyco, food processor Bunge
Limited, and Mexican wireless provider American Movil added the most to returns.
On the negative side, results were hurt by holdings in semiconductor firm
Broadcom, Russian oil giant Yukos, and Biotechnology company Biovail.
The Technology and Energy sectors were the largest sources of value added for
the year. In Technology, wireless handheld device maker Research In Motion
continued to appreciate, most recently on the introduction of an appealing new
messaging and communication device and a software agreement with cell phone
giant Nokia. In Energy, oil and gas driller XTO, integrated South African energy
firm Sasol, and Brazilian oil giant Petrol Brasileiros rose throughout the
period on persistent increases in oil prices.
The Utilities and Financials sectors were a drag on relative results for the
year. Underperformance in the Utilities sector was a result of the Fund's low
weight in strongly-performing utility stocks. In Financials, positions in
banking giant Citigroup, insurance company St. Paul Travelers, and Japanese bank
Mitsubishi Financial Group, parent company of Bank of Tokyo-Mitsubishi and
Mitsubishi Trust Bank, all contributed to negative performance.
7
- --------------------------------------------------------------------------------
WHAT IS THE OUTLOOK?
As we enter the last quarter of 2004, the macro environment again appears mixed.
On one hand, GDP was recently revised upward, manufacturing indicators continue
to show strength, and interest rates are relatively low. On the other hand, oil
prices remain high, employment growth is somewhat sluggish, and the Federal
Reserve continues to raise short-term interest rates. In addition, questions
about the possibility of another terrorist incident and the slowdown in
corporate profits create a challenging near-term backdrop for equity investors.
In this uncertain environment, we continue to search for stocks that have
surprisingly strong earnings profiles and, therefore, should appreciate
regardless of any headwinds.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 11.3%
- -------------------------------------------------------------------
Capital Goods 5.7
- -------------------------------------------------------------------
Consumer Cyclical 10.8
- -------------------------------------------------------------------
Consumer Staples 3.8
- -------------------------------------------------------------------
Energy 9.1
- -------------------------------------------------------------------
Finance 27.9
- -------------------------------------------------------------------
Health Care 6.1
- -------------------------------------------------------------------
Services 1.3
- -------------------------------------------------------------------
Technology 25.6
- -------------------------------------------------------------------
Transportation 1.9
- -------------------------------------------------------------------
Other Assets & Liabilities -3.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 0.8%
- -------------------------------------------------------------------
Bermuda 0.6
- -------------------------------------------------------------------
Brazil 2.2
- -------------------------------------------------------------------
Canada 6.0
- -------------------------------------------------------------------
Cayman Islands 0.3
- -------------------------------------------------------------------
France 0.8
- -------------------------------------------------------------------
Germany 1.3
- -------------------------------------------------------------------
India 0.2
- -------------------------------------------------------------------
Ireland 0.2
- -------------------------------------------------------------------
Japan 7.1
- -------------------------------------------------------------------
Mexico 1.1
- -------------------------------------------------------------------
Russia 0.7
- -------------------------------------------------------------------
South Africa 1.4
- -------------------------------------------------------------------
South Korea 4.1
- -------------------------------------------------------------------
Switzerland 2.7
- -------------------------------------------------------------------
Taiwan 0.9
- -------------------------------------------------------------------
United Kingdom 3.5
- -------------------------------------------------------------------
United States 69.6
- -------------------------------------------------------------------
Other Assets & Liabilities -3.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,050.10 $ 6.96
Hypothetical @ $1,000 $1,018.35 $ 6.85
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,046.90 $10.50
Hypothetical @ $1,000 $1,014.88 $10.33
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,047.10 $10.14
Hypothetical @ $1,000 $1,015.23 $ 9.98
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,053.20 $ 3.97
Hypothetical @ $1,000 $1,021.27 $ 3.91
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.35%, 2.04%,
1.97% and 0.77% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
8
The Hartford Conservative Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT
OBJECTIVE -- SEEKS
CURRENT
INCOME
AND
LONG-
TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/28/04 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
CONSERVATIVE ALLOCATION FUND S&P 500 INDEX AGGREGATE BOND INDEX
---------------------------- ------------- --------------------
5/28/04 9450 10000 10000
6/04 9573 10194 10057
7/04 9431 9857 10157
8/04 9497 9896 10351
9/04 9606 10003 10379
10/04 9729 10156 10467
</Table>
<Table>
--- CONSERVATIVE ALLOCATION -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
FUND BOND INDEX $10,000 starting value
$9,450 starting value $10,000 starting value $10,156 ending value
$9,729 ending value $10,467 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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 Index and Commercial
Mortgage-Backed Securities Index.
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 distribution 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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE INCEPTION
- -------------------------------------------------------
Conservative Allocation
A#....................... 5/28/2004 2.96%
- -------------------------------------------------------
Conservative Allocation
A##...................... 5/28/2004 -2.69%
- -------------------------------------------------------
Conservative Allocation
B#....................... 5/28/2004 2.70%
- -------------------------------------------------------
Conservative Allocation
B##...................... 5/28/2004 -2.30%
- -------------------------------------------------------
Conservative Allocation
C#....................... 5/28/2004 2.70%
- -------------------------------------------------------
Conservative Allocation
C##...................... 5/28/2004 0.67%
- -------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B and C shares will
vary from the results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Senior Vice President
CHRISTOPHER HANLON, CFA
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the period ended October 31, 2004, since inception of May 28, 2004, The
Hartford Conservative Allocation Fund Class A placed in the 2nd quartile with a
total return, before sales charge, of 2.96% versus a return of 2.28% for the
Lipper Balanced Funds and 4.65% for the Lehman Brothers U.S. Aggregate Bond
Index and 1.56% for the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
Since inception of the Fund, yields fell, with the 10 year Treasury note yield
falling 62 basis points to 4.03% and the 5 year Treasury note yield falling 51
basis points to 3.28%. The Fund's duration is targeted to be less than the
Lehman Aggregate based on the risk preferences of the Fund and in anticipation
of rising rates. For the period, short duration positioning detracted from
overall performance.
Within the major sectors of the Lehman Brothers U.S. Aggregate Index, corporates
were the top performer, while asset-backed securities were the worst. The fixed
income component of the Fund is structured around five fixed income indices. For
the period, the Lehman Brothers High Yield Index was the top performer at 8.27%,
followed by the Lehman Brothers U.S. TIPS Index at 4.92%, Lehman Brothers U.S.
Aggregate Index at 4.65%, Lehman Brothers 1-3 Year Government at 1.41% and
Merrill Lynch 3-Month U.S. Treasury Bill Index at 0.57%. The Fund benefited,
relative to the Index, from an overweight to high yield bonds and Treasury
Inflation Protected Securities (TIPS). The Fund's benchmark does not hold any
(TIPS) or high yield securities. The Fund also maintained a higher allocation to
money market securities due to its conservative nature and in anticipation of a
rising rate environment. Having a shorter duration negatively impacted
performance.
On the equity side, within the S&P 500, energy was the top performer, followed
by utilities and telecommunication services. Health care was the laggard in the
S&P 500, followed by consumer staples and information technology. The equity
component of the Fund is structured around five equity indices. Since inception
of the Fund, the MSCI EAFE at 5.62% was the top performer, followed by the S&P
500/Barra Value at 4.79%, Russell 2000 at 3.23%, S&P Midcap 400 at 1.73% and S&P
500/Barra Growth at -1.65%. The Fund benefited from value within its large cap
equity allocations. The Fund also benefited, relative to the benchmark, from its
allocations within the international, mid-cap and small cap sectors. None of
those sectors are represented in the S&P 500.
9
- --------------------------------------------------------------------------------
WHAT IS THE OUTLOOK?
The economy continues to expand at a healthy pace and the October payroll survey
indicated that the labor market may have finally gained traction. We therefore
expect that growth for the rest of the year will be firm as continued job
creation leads to higher income and spending. However, recent economic data is
not conclusive, and there are mixed signals in the business and consumer sector.
Corporate earnings growth is still healthy, but has recently slowed from very
high levels. Business investments continue to increase. We expect that business
investments will pick up further as the recovery continues, which should lead to
higher job creation. Inventory levels are low, signaling that the expansion has
momentum.
The Federal Reserve believes that the expansion is on a solid footing, and
predicts that growth will be moderate in the near term despite the rise in
energy prices. We believe the Federal Reserve will continue to raise rates and
we are anticipating slightly higher rates in the coming three to six months. Our
outlook is for short Treasury rates to rise more than longer treasury rates and
a flatter yield curve to ensue.
We anticipate reducing the Fund's money market exposure in favor of higher
yielding securities. The allocations to TIPS and high yield bonds should
continue to perform well given our view of economic growth, stronger corporate
earnings and increasing inflation. In this market environment, we also expect
the domestic equity markets to perform well. Additionally, overseas growth
should benefit the Fund's international exposure.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 6.9%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 5.9
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 10.8
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 9.8
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 4.9
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 19.7
- -------------------------------------------------------------------
Hartford Stock Fund, Class Y 9.8
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 13.8
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 3.9
- -------------------------------------------------------------------
Other Assets & Liabilities 1.8
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of May 28, 2004 (commencement of operations)
through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
EXPENSES PAID
DURING PERIOD **
MAY 28, 2004
BEGINNING ENDING THROUGH
ACCOUNT VALUE ACCOUNT OCTOBER 31,
MAY 28, 2004 VALUE 2004
(COMMENCEMENT OCTOBER 31, (COMMENCEMENT
OF OPERATIONS) 2004 OF OPERATIONS)
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,029.60 $2.60
Hypothetical @ $1,000 $1,018.75 $2.58
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,027.00 $5.40
Hypothetical @ $1,000 $1,015.98 $5.37
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,027.00 $5.40
Hypothetical @ $1,000 $1,015.98 $5.37
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratio of 0.60%, 1.25%,
and 1.25% for classes A, B and C, respectively, multiplied by the average
account value over the period, multiplied by 156/366 (to reflect the one-half
year period).
These ratios do not reflect fees and expenses associated with the underlying
funds. If such fees and expenses had been included, the expenses would have been
higher. Please refer to your prospectus for details on the expenses that apply
to the underlying funds.
10
The Hartford Disciplined Equity Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
GROWTH
OF
CAPITAL
AND
CURRENT
INCOME.
PERFORMANCE OVERVIEW(3) 4/30/98 - 10/31/04
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
10253 10319
10780 10860
10941 11059
11061 11213
10891 11044
10740 10870
10731 11019
10971 11233
10530 10861
10520 10905
10630 11022
10/04 10700 11191
</Table>
<Table>
--- DISCIPLINED EQUITY FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$10,700 ending value $11,191 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------------
Disciplined Eqy A# 4/30/1998 5.92% -2.04% 1.92%
- -----------------------------------------------------------------
Disciplined Eqy A## 4/30/1998 0.06% -3.15% 1.04%
- -----------------------------------------------------------------
Disciplined Eqy B# 4/30/1998 5.16% -2.75% 1.20%
- -----------------------------------------------------------------
Disciplined Eqy B## 4/30/1998 0.16% -3.12% 1.20%
- -----------------------------------------------------------------
Disciplined Eqy C# 4/30/1998 5.25% -2.71% 1.24%
- -----------------------------------------------------------------
Disciplined Eqy C## 4/30/1998 3.20% -2.91% 1.07%
- -----------------------------------------------------------------
Disciplined Eqy Y# 4/30/1998 6.55% -1.53% 2.45%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
JAMES A. RULLO, CFA
Senior Vice President, Partner, Portfolio Manager
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Disciplined Equity Fund Class A, before sales charge, returned
5.92% for the twelve-month period ended October 31, 2004, matching the Lipper
Large Cap Core average, which returned 5.98%, but underperforming its benchmark,
the S&P 500 index, which returned 9.42% during the period.
WHY DID THE FUND PERFORM THIS WAY?
Oil prices reached a historic nominal high of over $50 per barrel, and the
Federal Reserve Bank exercised its policy of measured rate rises, and signaled
its intention to increase rates gradually to a "normal" level. Investor concerns
over energy prices, higher interest rates, the geopolitical environment, and the
U.S. elections, have endured. Nevertheless, all sectors of the S&P 500 Index
advanced, except for Information Technology, which was down 0.9%. Other sectors
that lagged the overall market include Health Care, Consumer Staples, and
Financials, returning 1.7%, 3.9%, and 8.1% respectively, for the twelve-month
period. Energy, Utilities, and Telecommunication Service stocks led the advance,
with sector returns of 44.5%, 24.1%, and 20.8%, respectively.
The four largest contributors to the Fund during this period include Bank of
America, utility Exelon and energy companies ConocoPhillips and ExxonMobil. In
spite of these strong performers, the Fund fell short of benchmark performance.
This was primarily due to poor stock selection within the Consumer
Discretionary, Telecommunication Services and Financial sectors. Stocks that
detracted most from performance include the health care giant Pfizer, Texas
Instruments and media holding Comcast. Comcast sold off abruptly when the
hostile bid for Disney was poorly received by investors. We have maintained the
position due to the attractive valuation of Comcast shares given the company's
solid cash flow, positive advertising trends, and growth opportunities from new
product offerings. Among our Financial holdings, St. Paul Travelers declined. In
July, St. Paul restated reserves, sending the stock sharply lower. We felt this
decline was unwarranted as the company's balance sheet is on a conservative
footing, the integration with Travelers is well underway, and the company has a
strong market position.
In this environment, stock selection within the Health Care sector was a
meaningful contributor to our relative performance. Our investment in Guidant, a
medical device manufacturer, advanced during the period on positive news,
offsetting any losses from our position in Pfizer. Guidant reported better than
expected results from its Drug Eluting Stents pilot trial and reported strength
in its
11
- --------------------------------------------------------------------------------
Cardiac Rhythm Management business. The Fund also benefited from not owning drug
company Merck, whose shares fell sharply at the end of September. Merck
announced it would be pulling its arthritis drug, Vioxx, from the market as a
new study indicated that it contributed to cardiac issues. This decision should
benefit Pfizer, one of our larger holdings, as patients are expected to migrate
to Pfizer's arthritis drug Celebrex.
WHAT IS THE OUTLOOK?
The global expansion has started to moderate. We anticipate a period of slower
growth in the U.S. as consumption, investment, and exports show signs of
deceleration from the world GDP growth highs attained in the second quarter.
Although consumption spending was previously enhanced in the post-bubble period
by tax cuts and cash-outs from mortgage refinancing, future consumer
expenditures will be determined by employment gains, which are forecast to
improve steadily.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 4.9%
- -------------------------------------------------------------------
Capital Goods 6.2
- -------------------------------------------------------------------
Consumer Cyclical 7.1
- -------------------------------------------------------------------
Consumer Staples 7.6
- -------------------------------------------------------------------
Energy 8.7
- -------------------------------------------------------------------
Finance 26.1
- -------------------------------------------------------------------
Health Care 10.1
- -------------------------------------------------------------------
Future Contract 2.0
- -------------------------------------------------------------------
Services 4.7
- -------------------------------------------------------------------
Technology 22.0
- -------------------------------------------------------------------
Utilities 2.5
- -------------------------------------------------------------------
Other Assets & Liabilities -1.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $ 996.30 $ 7.28
Hypothetical @ $1,000 $1,017.85 $ 7.35
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $ 993.20 $10.77
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $ 994.20 $10.48
Hypothetical @ $1,000 $1,014.63 $10.58
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,000.00 $ 4.27
Hypothetical @ $1,000 $1,020.86 $ 4.32
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.45%, 2.15%,
2.09% and 0.85% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
12
The Hartford Dividend and Growth Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
A HIGH
LEVEL
OF
CURRENT
INCOME
CONSISTENT
WITH
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/04
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
18165 18694
19342 19674
19398 20036
19746 20314
19497 20008
19306 19693
19317 19963
19808 20351
19358 19677
19527 19756
19863 19969
10/04 20077 20275
</Table>
<Table>
--- DIVIDEND AND GROWTH FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$20,077 ending value $20,275 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------
Div & Growth A# 7/22/1996 12.53% 3.43% 9.53%
- --------------------------------------------------------------
Div & Growth A## 7/22/1996 6.33% 2.26% 8.79%
- --------------------------------------------------------------
Div & Growth B# 7/22/1996 11.62% 2.66% NA*
- --------------------------------------------------------------
Div & Growth B## 7/22/1996 6.62% 2.30% NA*
- --------------------------------------------------------------
Div & Growth C# 7/22/1996 11.76% 2.74% 8.78%
- --------------------------------------------------------------
Div & Growth C## 7/22/1996 9.64% 2.53% 8.66%
- --------------------------------------------------------------
Div & Growth Y# 7/22/1996 13.06% 3.99% 10.08%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
EDWARD P. BOUSA, CFA
Vice President, Portfolio Manager
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Dividend and Growth Fund Class A, before sales charge, returned
12.53% for the twelve-month period ended October 31, 2004. The Fund mirrored the
Lipper Equity Income average, which returned 12.42%, and outperformed its
benchmark, the S&P 500 Index, which returned 9.42% over the same period.
WHY DID THE FUND PERFORM THIS WAY?
Market strength during the beginning of the period turned more volatile as
investors continued to focus on the high price of oil and its impact on the
economy. Despite this headwind, the domestic economy grew a respectable 3.3%
over the last few months. However, with oil at $50 per barrel, investors seem to
expect both earnings and top line growth to begin slowing for most companies. In
fact, several consumer companies were unable to pass through higher raw
materials costs and subsequently missed earnings. Higher energy prices have also
contributed to slower retail sales. On the opposite end of the spectrum, better
Asian demand has buoyed industrial production. This stronger industrial activity
contributed to the Federal Reserve's decision to raise interest rates during the
period. This seems to reflect more confidence in an economic recovery. Several
other issues were also weighing on the market, including the outcome of the 2004
presidential election and the threat of domestic terrorism. Despite the burden
of all these issues, the market has been quite resilient.
The Fund's outperformance relative to the S&P 500 was attributable primarily to
the Fund's underweight position and strong stock selection within Information
Technology, as well as an overweight position to the Energy sector. Personal
computer manufacturer, Apple Computer, helped boost returns in the Information
Technology sector. It remains one of the most innovative computer companies in
the world. However, we eliminated Apple as the stock reached our valuation
target. The top three contributors to performance during the period were all
Energy stocks: ExxonMobil, ChevronTexaco and BP. Energy holdings advanced on
robust earnings stemming from persistently high natural gas prices.
ChevronTexaco reduced its debt by more than $4 billion and has shown renewed
strength through capital discipline and higher commodity prices. BP is well
positioned to grow its volumes over the next several years and is committed to
returning any excess cash flow above $20 per barrel with either share buybacks
or increased dividends.
Stocks that detracted from the Fund's performance during the period include:
Cardinal Health, Marsh & McLennan and Delphi. Cardinal Health disappointed
investors in a couple of ways. First, the company lowered earning expectations
not once, but twice. Second, the company's accounting practices have come under
continued scrutiny. We initially maintained the position, but we began to sell
the shares as we became more concerned these issues will not abate in the near
to medium term. March & McLennan
13
- --------------------------------------------------------------------------------
recently fell on a review of commission practices by the New York attorney
general's office. We began selling the position in October. Delphi also
struggled during the period as they are experiencing an inventory correction at
its largest customer, General Motors.
WHAT IS THE OUTLOOK?
The Fund takes a long-term view. Our discipline focuses primarily on the
supply/demand balance in most sectors. We maintain our overweight positions in
Energy and Materials, as we are seeing improving fundamentals slowly play out.
It appears there are fewer buying opportunities in pharmaceuticals because few
companies have impressive research and development pipelines. We are looking to
increase our retail holdings as consumer weakness becomes increasingly
discounted in the stock prices. Going forward, we expect the Fund's cyclical
holdings to continue to perform well. Our strategy of buying high quality
companies with above-average dividends has been quite successful versus the S&P
500 index.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 9.3%
- -------------------------------------------------------------------
Capital Goods 5.7
- -------------------------------------------------------------------
Consumer Cyclical 6.3
- -------------------------------------------------------------------
Consumer Staples 8.3
- -------------------------------------------------------------------
Energy 13.1
- -------------------------------------------------------------------
Finance 23.4
- -------------------------------------------------------------------
Health Care 8.8
- -------------------------------------------------------------------
Services 4.2
- -------------------------------------------------------------------
Technology 13.5
- -------------------------------------------------------------------
Transportation 4.5
- -------------------------------------------------------------------
Utilities 4.4
- -------------------------------------------------------------------
Other Assets & Liabilities -1.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,039.80 $ 5.95
Hypothetical @ $1,000 $1,019.30 $ 5.89
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,035.20 $10.33
Hypothetical @ $1,000 $1,014.98 $10.23
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,036.10 $ 9.52
Hypothetical @ $1,000 $1,015.79 $ 9.42
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,041.60 $ 3.69
Hypothetical @ $1,000 $1,021.52 $ 3.66
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.16%, 2.02%,
1.86% and 0.72% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
14
The Hartford Equity Income Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
A HIGH
LEVEL OF
CURRENT
INCOME
CONSISTENT
WITH
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(2) 8/28/03 - 10/31/04
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
9403 9902
10/03 9800 10508
9944 10651
10612 11307
10545 11506
10735 11753
10621 11649
4/04 10430 11365
10468 11481
10631 11752
10420 11586
10640 11751
10761 11933
10/04 10857 12131
</Table>
<Table>
--- EQUITY INCOME FUND --- RUSSELL 1000 VALUE INDEX
$9,450 starting value $10,000 starting value
$10,857 ending value $12,131 ending value
</Table>
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index
companies with lower price-to-book ratios and lower forecasted growth values.
PORTFOLIO MANAGER
JOHN R. RYAN, CFA
Senior Vice President, Managing Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------
Equity Income A# 8/28/2003 10.82% 14.92%
- -----------------------------------------------------------------
Equity Income A## 8/28/2003 4.76% 8.62%
- -----------------------------------------------------------------
Equity Income B# 8/28/2003 9.93% 13.89%
- -----------------------------------------------------------------
Equity Income B## 8/28/2003 4.93% 9.89%
- -----------------------------------------------------------------
Equity Income C# 8/28/2003 10.12% 14.08%
- -----------------------------------------------------------------
Equity Income C## 8/28/2003 8.02% 11.94%
- -----------------------------------------------------------------
Equity Income Y# 8/28/2003 11.53% 15.88%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the 12-month period ending October 31, 2004, The Hartford Equity Income Fund
Class A, before sales charge, returned 10.82%, trailing both the Russell 1000
Value Index return of 15.45% and the Lipper Equity Income peer group average
return of 12.42%.
WHY DID THE FUND PERFORM THIS WAY?
Improving jobs data and strong corporate profits eased investors' concern about
the impact of the Federal Reserve rate hikes, which resulted in positive equity
market performance during the period. Value outperformed growth by 12.0%,
measured by the Russell 1000 Value index (15.5%) versus the Russell 1000 Growth
index (3.5%). The broader market, as represented by the S&P 500, returned 9.4%.
The more defensive sectors of the Russell 1000 Value index posted positive
gains, with Energy and Utilities leading the way.
Relative to the benchmark, the Fund's holdings within Energy, Consumer
Discretionary, Information Technology and Materials did not perform well despite
positive contribution to performance from sector allocation. Additionally, weak
stock selection within Financials and Industrials detracted from index-relative
performance. The top three detractors, on an absolute basis, were Merrill Lynch
(Financials), Hewlett-Packard (Information Technology) and St. Paul Travelers
(Financials). With respect to Merrill Lynch and other brokerage stocks, the
market was concerned about the carry-trade (the interest rate arbitrage between
low short-term rates and higher intermediate-term rates). We believe the mergers
and acquisitions cycle and the underwriting cycle are turning up, which should
benefit these stocks. Within Technology, company specific problems at
Hewlett-Packard hurt performance. We trimmed our position in St. Paul Travelers
because the underlying earnings power of the company is weaker than we expected.
However, the stock is very cheap, which is why we have not eliminated it. As of
the end of the period, all three stocks were held in the portfolio.
To partially offset these results, the Fund benefited from positive stock
selection within Health Care, Utilities and Consumer Staples. Among the
contributors were TXU (Utilities), Baxter (Health Care) and Kellogg (Consumer
Staples). On an absolute basis, Exxon Mobil (Energy), Bank of America
(Financials) and ChevronTexaco (Energy) were contributors. As of the end of the
period, all three stocks were held in the Fund.
WHAT IS THE OUTLOOK?
Our "major worry factor" is the continued upward movement of oil prices, and we
are watching energy market developments quite closely. Longer term it appears
higher fuel prices are here to stay, but we still anticipate a correction to the
$30 range sometime in the next twelve months. Assuming a more normalized oil
price, we have not changed our moderately constructive outlook on the economy.
Dividends and free cash flow are still expanding. Better earnings, better free
cash flow and higher dividends are key drivers of higher stock prices.
15
- --------------------------------------------------------------------------------
The Fund is positioned in anticipation of a continuing global economic recovery.
Year-to-date, this stance has hurt the Fund's results, but we continue to
believe the economy will expand in the face of modest interest rate increases.
At the end of the period, relative to the Russell 1000 Value Index, the Fund was
overweight Financials, Materials, Health Care, Energy and Utilities.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 11.6%
- -------------------------------------------------------------------
Capital Goods 1.1
- -------------------------------------------------------------------
Consumer Cyclical 6.9
- -------------------------------------------------------------------
Consumer Staples 6.1
- -------------------------------------------------------------------
Energy 9.3
- -------------------------------------------------------------------
Finance 39.2
- -------------------------------------------------------------------
Health Care 7.0
- -------------------------------------------------------------------
Services 1.2
- -------------------------------------------------------------------
Technology 5.5
- -------------------------------------------------------------------
Transportation 1.7
- -------------------------------------------------------------------
Utilities 9.3
- -------------------------------------------------------------------
Other Assets & Liabilities 1.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,041.00 $2.92
Hypothetical @ $1,000 $1,022.27 $2.90
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,037.20 $7.27
Hypothetical @ $1,000 $1,018.00 $7.20
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,038.40 $6.10
Hypothetical @ $1,000 $1,019.15 $6.04
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,047.00 $0.41
Hypothetical @ $1,000 $1,024.73 $0.41
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.57%, 1.42%,
1.19% and 0.08% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
16
The Hartford Focus Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/24/01 - 10/31/04
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
8512 8527
9031 8974
9088 9139
9107 9266
8890 9126
8701 8983
8806 9106
9061 9282
8854 8975
8825 9011
8787 9108
10/04 8636 9248
</Table>
<Table>
--- FOCUS FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$8,636 ending value $9,248 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
PORTFOLIO MANAGER
RAND L. ALEXANDER, CFA
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------
Focus A# 5/24/2001 2.24% -2.58%
- ---------------------------------------------------------
Focus A## 5/24/2001 -3.38% -4.16%
- ---------------------------------------------------------
Focus B# 5/24/2001 1.48% -3.27%
- ---------------------------------------------------------
Focus B## 5/24/2001 -3.52% -4.12%
- ---------------------------------------------------------
Focus C# 5/24/2001 1.59% -3.27%
- ---------------------------------------------------------
Focus C## 5/24/2001 -0.43% -3.55%
- ---------------------------------------------------------
Focus Y# 5/24/2001 2.65% -2.15%
- ---------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Focus Fund Class A, before sales charge, returned 2.24% for the
twelve-month period ended October 31, 2004, trailing the Lipper Large Cap Core
peer group average return of 5.98%, and the 9.42% return of the S&P 500 Index,
the Fund's benchmark.
WHY DID THE FUND PERFORM THIS WAY?
The strength of the U.S. equity markets continued at the end of 2003 and into
the early part of 2004. U.S. markets, however, experienced volatility during the
middle part of 2004 due to moderating economic growth, uncertainty about the
pace of Federal Reserve interest rate increases, higher energy prices, and
concern about the war in Iraq and terrorism.
The Fund underperformed due to combination of sector weightings and stock
selection during the period. In terms of sectors, Energy was the strongest
performing sector in the S&P 500 during the year, and the Fund, on average, had
an underweight in the sector. The Fund had no exposure to Utilities and
Telecommunications which, despite limited long-term growth prospects, performed
well as investor sought higher yields in an uncertain stock market and interest
rate environment.
The Fund was overweight Information Technology, which was the worst performing
sector in the S&P 500 during the period. Intel (Semiconductors & Semiconductor
Equipment) was the largest detractor from absolute returns. When the economy
slowed during the middle of the year, demand from end consumers slowed down,
causing a build-up in inventory at semi-conductor companies. We continued to own
Intel at the end of the period, believing growth will resume when the supply
chain settles. In terms of stock selection, Financials was an area of weakness.
Marsh & McLennan (Insurance) declined after New York Attorney General, Eliott
Spitzer, announced an investigation into the firm's business practices.
The Fund's overweight to Industrials was an area of strength as trends in the
industrial economy were positive. General Electric, a top contributor to
absolute returns, had good results in health care, entertainment, and plastics.
Another strong contributor to returns was Bank of America, which benefited from
credit gains and synergies from their acquisition of Fleet Bank.
17
- --------------------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 3.0%
- -------------------------------------------------------------------
Capital Goods 3.2
- -------------------------------------------------------------------
Consumer Cyclical 3.9
- -------------------------------------------------------------------
Consumer Staples 6.6
- -------------------------------------------------------------------
Energy 8.9
- -------------------------------------------------------------------
Finance 18.9
- -------------------------------------------------------------------
Health Care 23.1
- -------------------------------------------------------------------
Technology 28.3
- -------------------------------------------------------------------
Services 3.1
- -------------------------------------------------------------------
Other Assets & Liabilities 1.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,001.00 $ 5.03
Hypothetical @ $1,000 $1,020.11 $ 5.08
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,000.05 $ 6.84
Hypothetical @ $1,000 $1,013.30 $ 6.90
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,005.05 $ 6.84
Hypothetical @ $1,000 $1,018.30 $ 6.90
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,002.10 $ 2.77
Hypothetical @ $1,000 $1,022.37 $ 2.80
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.00%, 1.36%,
1.36% and 0.55% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
18
The Hartford Global Communications Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 10/31/00 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MSCI AC WORLD FREE
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
4564 5413 7772
5017 5855 8179
5159 6052 8330
5159 6096 8446
5159 5968 8318
4960 5868 8187
4904 5717 8300
5083 5824 8461
4922 5792 8181
4667 5848 8213
4790 6000 8302
10/04 5178 6285 8429
</Table>
<Table>
--- GLOBAL COMMUNICATIONS FUND --- MSCI AC WORLD FREE TELECOMMUNICATIONS
$9,450 starting value SERVICES INDEX
$5,178 ending value $10,000 starting value
$6,285 ending value
-- S & P 500 INDEX
$10,000 starting value
$8,429 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------------
Global Comm A# 10/31/2000 17.34% -13.96%
- ---------------------------------------------------------------
Global Comm A## 10/31/2000 10.93% -15.17%
- ---------------------------------------------------------------
Global Comm B# 10/31/2000 16.59% -14.52%
- ---------------------------------------------------------------
Global Comm B## 10/31/2000 11.59% -15.16%
- ---------------------------------------------------------------
Global Comm C# 10/31/2000 16.63% -14.56%
- ---------------------------------------------------------------
Global Comm C## 10/31/2000 14.46% -14.77%
- ---------------------------------------------------------------
Global Comm Y# 10/31/2000 18.14% -13.49%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
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
17.34% for the twelve-month period ended October 31, 2004. The Fund
underperformed the MSCI All Country World Free Telecommunication Services Index,
which returned 20.00%, and the Lipper Telecommunications Mutual Funds Average,
which returned 18.31% over the same period.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's underperformance over the twelve-month period relative to the MSCI AC
World Free Telecommunications Services Index was a result of allocation across
the sub-sectors invested in by the Fund. However, stock selection within the
Integrated/ Diversified telecommunications sub-sector, accounting for over
two-thirds of the Fund, was markedly stronger for the Fund than for the Index.
The Fund is underweight the Wireless sub-sector, which makes up approximately
one-third of the benchmark.
Within the Integrated/Diversified telecommunications sub-sector, top
contributors were Philippine Long Distance, Telekom South Africa and Telenor, a
Norwegian company. We have tended to favor emerging markets and European
companies over U.S. companies within Integrated Telecommunications, given the
difficult competition the U.S. companies face from cable and wireless companies.
The largest detractors from overall Fund returns were U.S. wireless service
provider Dobson Communications and Chinese wireless content provider KongZhong.
KongZhong fell on concerns over a class action lawsuit alleging material
information was withheld in the prospectus related to its IPO in July. We
maintained our position in the stock and it has since recovered a portion of its
losses.
WHAT IS THE OUTLOOK?
We remain optimistic on the performance of emerging market telecommunications
companies relative to U.S. companies. Emerging markets penetration of
telecommunication services is low, allowing for healthy growth for years to
come. The U.S. companies are benefiting from recent regulatory wins, but we
expect that competition in the arena of VOIP (voice over internet protocol) will
negatively impact results in the second half of 2005. The RBOCs (Regional Bell
Operating Companies) are in the process of deploying video technology to compete
against cable companies, and are increasing their capital spending in 2005.
Unfortunately, we do not expect the benefits from the video
19
- --------------------------------------------------------------------------------
expenditures to be realized for another couple of years. Lastly, the competition
for residential phone service will increase considerably over the next year.
While many wireline carriers face access line declines and voice substitution to
wireless, these same carriers often have wireless operations that are performing
well, resulting in solid revenue growth. Wireless data is becoming increasingly
popular with both consumers and businesses, and this is reflected in better than
expected wireless revenue growth. U.S. wireless carriers are blessed by
favorable network supply and demand characteristics. Conversely, we continue to
believe that the European wireless industry suffers from excess capacity that
will result in erosion of average revenue per user.
DIVERSIFICATION BY COUNTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Austria 4.1%
- -------------------------------------------------------------------
Brazil 9.7
- -------------------------------------------------------------------
Cayman Islands 6.5
- -------------------------------------------------------------------
China 1.5
- -------------------------------------------------------------------
France 8.7
- -------------------------------------------------------------------
Germany 1.1
- -------------------------------------------------------------------
Indonesia 4.3
- -------------------------------------------------------------------
Ireland 3.2
- -------------------------------------------------------------------
Italy 3.4
- -------------------------------------------------------------------
Netherlands 8.3
- -------------------------------------------------------------------
Norway 4.6
- -------------------------------------------------------------------
Philippines 4.4
- -------------------------------------------------------------------
South Africa 8.7
- -------------------------------------------------------------------
South Korea 3.3
- -------------------------------------------------------------------
Taiwan 0.7
- -------------------------------------------------------------------
United States 26.9
- -------------------------------------------------------------------
Other Assets & Liabilities 0.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,043.80 $ 8.48
Hypothetical @ $1,000 $1,016.84 $ 8.36
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,040.90 $12.06
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,041.00 $12.06
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,048.70 $ 6.18
Hypothetical @ $1,000 $1,019.10 $ 6.09
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.65%, 2.35%,
2.35% and 1.20% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
20
The Hartford Global Financial Services Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 10/31/00 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GLOBAL FINANCIAL SERVICES MSCI FINANCE 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
9255 9459 7772
9830 10035 8179
10022 10290 8330
10280 10526 8446
10242 10482 8318
9802 10091 8187
9830 10180 8300
9925 10289 8461
9476 9974 8181
9715 10199 8213
9782 10293 8302
10/04 9992 10580 8429
</Table>
<Table>
--- GLOBAL FINANCIAL SERVICES FUND --- MSCI FINANCE EX REAL ESTATE INDEX
$9,450 starting value $10,000 starting value
$9,992 ending value $10,580 ending value
-- S&P 500 INDEX
$10,000 starting value
$8,429 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Global Fin Ser A# 10/31/2000 8.42% 1.41%
- ------------------------------------------------------------------
Global Fin Ser A## 10/31/2000 2.40% -0.01%
- ------------------------------------------------------------------
Global Fin Ser B# 10/31/2000 7.71% 0.71%
- ------------------------------------------------------------------
Global Fin Ser B## 10/31/2000 2.71% -0.03%
- ------------------------------------------------------------------
Global Fin Ser C# 10/31/2000 7.71% 0.71%
- ------------------------------------------------------------------
Global Fin Ser C## 10/31/2000 5.63% 0.46%
- ------------------------------------------------------------------
Global Fin Ser Y# 10/31/2000 9.06% 1.89%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
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
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, returned 8.42% for the
twelve-month period ended October 31, 2004. The Fund underperformed its
benchmark, the MSCI Finance ex-Real Estate Index, which returned 12.56%, and the
Lipper Financial Services Mutual Funds Average, which returned 10.57% over the
same period.
WHY DID THE FUND PERFORM THIS WAY?
Global finance stocks, as measured by the MSCI Financials ex Real Estate index,
posted competitive results versus U.S. and global equity markets, as measured by
the S&P 500 and MSCI World indices, respectively, over the twelve-month period.
Relative to the MSCI Finance ex-Real Estate Index, the Fund's security selection
within the Insurance industry was a primary driver of underperformance. An
overweight to Thrifts & Mortgage Finance and an underweight to strong-performing
Commercial Banks also detracted from relative performance, offset by our
positive stock selection in both industries.
On an absolute basis, the Fund's positive returns were driven primarily by
holdings of Commercial Banks. The top contributors to the Fund's absolute
returns during the twelve-month period were Hibernia, Bank of America and Bank
One. Bank One was acquired by J.P. Morgan Chase for a substantial premium. The
largest detractors from Fund returns were Insurance holdings Marsh & McLennan
and Converium. Marsh & McLennan declined significantly after the New York
Attorney General announced an investigation into business practices at the firm.
We held shares of the Swiss reinsurer Converium based on our belief that the
company could grow earnings substantially as it benefited from an environment of
rising premiums. Unfortunately, the company warned in July that it would have to
substantially increase reserves for its U.S. operations. The reserve restatement
was related to directors' and officers' liability insurance claims stemming back
to the late 1990s and the market was surprised by the news as the company's
reserve levels had previously been reviewed by an independent third party.
Following the announcement, Converium undertook a plan to reduce its risk and
raise capital. However, its subsequent downgrade by Standard & Poor's
21
- --------------------------------------------------------------------------------
put the viability of its U.S. operations into question, and we decided to sell
our holdings.
WHAT IS THE OUTLOOK?
It is generally believed that consolidation of the American banking system will
continue until all that is left are four or five national banks and thousands of
tiny community banks. However, new species of banks are finding niches for
themselves and will compete very effectively against the victorious megabanks
like Bank of America, Wachovia, Wells Fargo and U.S. Bancorp. Outside the U.S.,
the Australian banks are modestly cheaper than, for example, Canadian banks, yet
have better earnings quality and much higher yields. Australian banks are
showing earnings per share growth due to better volume growth, no capital
markets exposure and somewhat better expense control.
Among the trust banks, the thesis remains the same. Balance sheet leverage to
rising rates should ultimately breed strong earnings per share growth and
operating leverage. While we don't expect expense pressures to abate, the
recovery in net interest revenues creates a significant cushion looking forward.
The brokerage group trades at a discount to fundamental value and we have a
positive bias. In addition to some potential for price-to-book valuation
expansion, book value should continue to grow at mid-to-high-teen rates per
year, suggesting solid return potential over the next year.
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 5.1%
- -------------------------------------------------------------------
Canada 1.9
- -------------------------------------------------------------------
Germany 1.2
- -------------------------------------------------------------------
Italy 2.4
- -------------------------------------------------------------------
Japan 3.1
- -------------------------------------------------------------------
Panama 1.7
- -------------------------------------------------------------------
Spain 4.8
- -------------------------------------------------------------------
Sweden 2.6
- -------------------------------------------------------------------
Switzerland 4.7
- -------------------------------------------------------------------
United Kingdom 11.5
- -------------------------------------------------------------------
United States 67.3
- -------------------------------------------------------------------
Other Assets & Liabilities -6.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,019.50 $ 8.38
Hypothetical @ $1,000 $1,016.84 $ 8.36
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,016.80 $11.91
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,015.80 $11.91
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,022.30 $ 6.10
Hypothetical @ $1,000 $1,019.10 $ 6.09
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.65%, 2.35%,
2.35% and 1.20% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
22
The Hartford Global Health Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/1/00 - 10/31/04
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
14594 7692 10410
15309 8095 10966
15880 8244 11288
15983 8359 11443
15807 8233 11112
15953 8103 11508
15870 8214 11493
16067 8374 11491
15205 8096 10773
15361 8129 10905
15526 8217 10876
10/04 15558 8342 10622
</Table>
<Table>
--- GLOBAL HEALTH FUND -- GOLDMAN SACHS HEALTH CARE INDEX
$9,450 starting value $10,000 starting value
$15,558 ending value $10,622 ending value
--- S & P 500 INDEX
$10,000 starting value
$8,342 ending value
</Table>
S & P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------
Global Health A# 5/1/2000 9.21% 11.71%
- -----------------------------------------------------------------
Global Health A## 5/1/2000 3.23% 10.32%
- -----------------------------------------------------------------
Global Health B# 5/1/2000 8.49% 10.90%
- -----------------------------------------------------------------
Global Health B## 5/1/2000 3.49% 10.59%
- -----------------------------------------------------------------
Global Health C# 5/1/2000 8.49% 10.91%
- -----------------------------------------------------------------
Global Health C## 5/1/2000 6.41% 10.66%
- -----------------------------------------------------------------
Global Health Y# 5/1/2000 9.88% 12.37%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
PORTFOLIO MANAGEMENT TEAM
JOSEPH H. SCHWARTZ, CFA
Senior Vice President, Partner, Portfolio
Coordinator, Global Industry Analyst
ROBERT L. DERESIEWICZ
Vice President, 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 9.21% for
the twelve-month period ended October 31, 2004. The Fund outperformed the
Goldman Sachs Health Care Index, which returned 3.88%, and the Lipper Health and
Biotechnology Mutual Fund Average, which returned 5.93% over the period.
WHY DID THE FUND PERFORM THIS WAY?
The Fund outperformed the Goldman Sachs Health Care Index due to strong stock
selection in Pharmaceuticals, a sub-sector that accounted for roughly half of
the Fund's assets. Irish drug company Elan was the top contributor relative to
the Index, and the largest contributor of absolute Fund returns. Elan shares
were up dramatically due to promising data for its multiple sclerosis drug
Antegren. Our avoidance of Merck, comprising a large weighting in the benchmark,
also helped our relative outperformance. Merck shares plummeted after the
company pulled its rheumatoid arthritis drug, Vioxx, after a study found
increased risk of heart problems from prolonged use.
Strong relative results in the areas mentioned above were offset somewhat by
stock selection in the Biotechnology and Health Care Providers & Services
sub-sectors. Individual holdings that detracted from absolute results included
drug distributors Cardinal Health and McKesson. We sold our position in Cardinal
Health prior to the end of the period. AstraZeneca, an international
pharmaceutical company, was also weak, driven mainly by a negative FDA panel
review of its pipeline product, Exanta. Overall, we believe that fundamentals
will continue to drive valuations upward.
WHAT IS THE OUTLOOK?
Driven by the combination of escalating drug costs and the passage of the
Medicare Drug Benefit in 2003, the U.S. government will have a much greater
influence over pharmaceutical prices over the next five years. The government
will begin paying prescription drug subsidies in 2006. Price competi-
23
- --------------------------------------------------------------------------------
tion will occur in competitive categories without differentiation. The weak
pricing environment has been reflected in the stocks. Many companies believe
that slowing prescription trends have been impacted by increases in insurance
co-pays impacting consumer behavior.
Smaller capitalization stocks have outperformed larger capitalization stocks and
valuations are now at fair comparison levels. Currency has aided non-U.S.
companies, placing their attractiveness in line with U.S. companies. Given this
valuation parity, our turnover has declined from the levels of early to mid
2003. We expect the outlook for health care equities to be challenging but we
will continue to position the Fund in a positive and diversified way.
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
France 3.0%
- -------------------------------------------------------------------
Germany 1.8
- -------------------------------------------------------------------
Ireland 3.2
- -------------------------------------------------------------------
Japan 9.9
- -------------------------------------------------------------------
Sweden 0.4
- -------------------------------------------------------------------
Switzerland 4.2
- -------------------------------------------------------------------
United Kingdom 5.1
- -------------------------------------------------------------------
United States 82.5
- -------------------------------------------------------------------
Other Assets & Liabilities -10.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $ 975.30 $ 8.19
Hypothetical @ $1,000 $1,016.84 $ 8.36
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $ 971.80 $11.65
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $ 971.90 $11.95
Hypothetical @ $1,000 $1,013.02 $12.19
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $ 978.40 $ 5.47
Hypothetical @ $1,000 $1,019.61 $ 5.58
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.65%, 2.35%,
2.41% and 1.10% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
24
The Hartford Global Leaders Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(2) 9/30/98 - 10/31/04
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
14234 11182
14951 11886
15528 12080
16066 12287
16355 12210
15727 11967
15936 12075
16475 12337
15180 11937
15090 11995
15857 12225
10/04 16424 12527
</Table>
<Table>
--- GLOBAL LEADERS FUND --- MSCI WORLD INDEX
$9,450 starting value $10,000 starting value
$16,424 ending value $12,527 ending value
</Table>
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.
PORTFOLIO MANAGER
ANDREW S. OFFIT
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEARS INCEPTION
- -----------------------------------------------------------------
Global Leaders A# 9/30/1998 18.12% 2.25% 9.50%
- -----------------------------------------------------------------
Global Leaders A## 9/30/1998 11.65% 1.10% 8.50%
- -----------------------------------------------------------------
Global Leaders B# 9/30/1998 17.25% 1.51% 8.71%
- -----------------------------------------------------------------
Global Leaders B## 9/30/1998 12.25% 1.13% 8.71%
- -----------------------------------------------------------------
Global Leaders C# 9/30/1998 17.42% 1.59% 8.79%
- -----------------------------------------------------------------
Global Leaders C## 9/30/1998 15.25% 1.39% 8.61%
- -----------------------------------------------------------------
Global Leaders Y# 9/30/1998 18.97% 2.85% 10.11%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Leaders Fund Class A, before sales charge, returned 18.12%
for the twelve-month period ended October 31, 2004. The Fund outperformed the
MSCI World benchmark return of 13.76% and the Lipper Global Large Cap Growth
Funds Average return of 10.71%.
WHY DID THE FUND PERFORM THIS WAY?
During the period, global equity markets, as measured by the MSCI World Index,
modestly outperformed U.S. equity markets, as measured by the S&P 500 Index. The
advance of global markets was disparate, with value-oriented sectors of the MSCI
World Index, such as Energy, Utilities, Telecommunications, Industrials and
Materials, achieving returns ranging from 18 to 42%. The returns of more
growth-oriented sectors, such as Health Care, Consumer Discretionary, and
Consumer Staples, were much lower, with the Information Technology sector
recording the worst return at -2.0%.
We do not manage the Fund according to country weights but, instead, focus
mainly on sector and stock weights. Our outperformance versus the benchmark was
primarily driven by strong stock selection within the Health Care and
Information Technology sectors. The five largest contributors to the Fund's
absolute returns were all from these two sectors. The two largest contributors
were Irish biotech company Elan, and Canadian technology hardware company,
Research in Motion. Research in Motion, which produces the wildly successful
Blackberry device, is an example of how we are able to take advantage of price
moves that are not based on the fundamentals. During the summer, the stock fell
although there was no change in the outlook for the company. We took advantage
of this disparity and added to our position. The stock price has subsequently
risen dramatically.
Relative performance was offset somewhat by the Fund's stock selection in Energy
and Industrials. The three largest detractors from absolute returns were
Alcatel, Munich Re and Samsung Electronics. Alcatel, the French communications
and energy infrastructure company, dramatically underperformed since reporting
weak second quarter results, largely upon disappointment with cost cutting
efforts. We continued to hold the stock as of the end of the period as the price
has rebounded. Samsung Electronics is a world class electronics company.
However, it is fighting price declines and oversupply in almost all of its
businesses. As a result, we sold the stock.
WHAT IS THE OUTLOOK?
We continue to be positioned for economic growth and are beginning to see many
of the trends play out in stock price performance. Our focus will remain on
intense bottom-up research, stock and sector selection. Our large weights in the
Consumer Discretionary and Information Technology sectors, some of the strongest
representatives of growth, are a result of our bottom-up research and stock
analysis.
25
- --------------------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.6%
- -------------------------------------------------------------------
Capital Goods 6.4
- -------------------------------------------------------------------
Consumer Cyclical 16.4
- -------------------------------------------------------------------
Consumer Staples 2.6
- -------------------------------------------------------------------
Energy 6.6
- -------------------------------------------------------------------
Finance 30.7
- -------------------------------------------------------------------
Health Care 9.7
- -------------------------------------------------------------------
Services 8.0
- -------------------------------------------------------------------
Technology 34.2
- -------------------------------------------------------------------
Transportation 2.1
- -------------------------------------------------------------------
Other Assets & Liabilities -19.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Canada 6.0%
- -------------------------------------------------------------------
Finland 2.0
- -------------------------------------------------------------------
France 5.2
- -------------------------------------------------------------------
Germany 3.8
- -------------------------------------------------------------------
Hong Kong 3.4
- -------------------------------------------------------------------
India 1.8
- -------------------------------------------------------------------
Indonesia 0.5
- -------------------------------------------------------------------
Ireland 5.7
- -------------------------------------------------------------------
Italy 0.9
- -------------------------------------------------------------------
Japan 4.5
- -------------------------------------------------------------------
Luxembourg 0.6
- -------------------------------------------------------------------
Mexico 0.4
- -------------------------------------------------------------------
Netherlands 2.3
- -------------------------------------------------------------------
Russia 2.3
- -------------------------------------------------------------------
South Korea 2.2
- -------------------------------------------------------------------
Spain 1.0
- -------------------------------------------------------------------
Sweden 1.9
- -------------------------------------------------------------------
Switzerland 0.9
- -------------------------------------------------------------------
United Kingdom 15.1
- -------------------------------------------------------------------
United States 58.8
- -------------------------------------------------------------------
Other Assets & Liabilities -19.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,044.30 $ 8.74
Hypothetical @ $1,000 $1,016.59 $ 8.62
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,040.20 $12.56
Hypothetical @ $1,000 $1,012.82 $12.40
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,041.40 $12.01
Hypothetical @ $1,000 $1,013.37 $11.84
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,048.60 $ 4.84
Hypothetical @ $1,000 $1,020.41 $ 4.77
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.70%, 2.45%,
2.34% and 0.94% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
26
The Hartford Global Technology Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/1/00 - 10/31/04
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
4476 3759 7692
4523 3817 8095
4701 3996 8244
4645 3883 8359
4513 3776 8233
4204 3556 8103
4485 3753 8214
4579 3846 8374
4063 3481 8096
3791 3308 8129
3960 3422 8217
10/04 4147 3604 8342
</Table>
<Table>
--- GLOBAL TECHNOLOGY FUND --- GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX
$9,450 starting value $10,000 starting value
$4,147 ending value $3,604 ending value
-- S & P 500 INDEX
$10,000 starting value
$8,342 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ----------------------------------------------------------------
Global Tech A# 5/1/2000 -5.56% -16.72%
- ----------------------------------------------------------------
Global Tech A## 5/1/2000 -10.71% -17.76%
- ----------------------------------------------------------------
Global Tech B# 5/1/2000 -6.14% -17.32%
- ----------------------------------------------------------------
Global Tech B## 5/1/2000 -10.83% -17.68%
- ----------------------------------------------------------------
Global Tech C# 5/1/2000 -6.14% -17.32%
- ----------------------------------------------------------------
Global Tech C## 5/1/2000 -8.08% -17.50%
- ----------------------------------------------------------------
Global Tech Y# 5/1/2000 -5.05% -16.35%
- ----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
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
ERIC STROMQUIST
Senior Vice President, Partner, Global Industry Analyst
VIKRAM MURTHY
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Technology Fund Class A, before sales charge, declined 5.56%
for the twelve-month period ended October 31, 2004. The Fund underperformed the
Goldman Sachs Technology Index, which fell 2.28%, and the Lipper Science and
Technology Mutual Fund Average, which declined 3.14% over the period.
WHY DID THE FUND PERFORM THIS WAY?
Worried about decelerating corporate spending, economic growth and the impact of
higher oil prices, investors became increasingly risk-averse throughout the
period. The Technology sector saw a number of corrections, which brought many
stocks down to attractive valuations.
The Fund's negative returns and underperformance relative to the Goldman Sachs
Technology Composite Index were driven primarily by its weight in Semiconductors
& Semiconductor Equipment. Semiconductor shares struggled as the pace of demand
slowed and inventories started to build up. We attribute the supply-chain
inventory reversal to buyers' growing fears of an economic slowdown combined
with fresh memories of the bubble cycle's excesses, rather than to fundamental
imbalances.
In terms of individual names, our position in disk drive manufacturer Maxtor
(Technology Hardware & Equipment) was the largest detractor from absolute and
relative returns; we no longer held the stock as of the end of the period.
Absolute returns, and performance relative to the Index, were helped by Internet
Software & Services holdings. Yahoo! and VeriSign were top contributors to
absolute returns. Yahoo! continues to benefit from the strength of paid search
and the double-digit growth rate of online advertising.
WHAT IS THE OUTLOOK?
Beyond the fears about the sustainability of the corporate IT spending recovery,
many Technology stocks are trading at
27
- --------------------------------------------------------------------------------
reasonable prices after this year's corrections and offer attractive upside
opportunities for the patient investor.
Our outlook for the handset industry continues to improve with several
manufacturers including Motorola and Nokia launching new products. Internet
stocks continue to benefit from the significant growth of online advertising.
The rapid adoption of open-source software and database technology is another
important trend. We expect the "commoditization" of many software technologies
over the next few years as the open-source community develops viable low-cost
alternatives. As a result, stock selection is becoming even more critical than
in the past.
For semiconductors, 2005 is now likely to be a low growth year, since supply
chain inventories are never restocked immediately after being disgorged. 2006
should prove much stronger unless there is a recession or unless semiconductor
capacity spending is cut. For now, we are focusing selectively on semiconductor
stocks that show the greatest upside by having corrected furthest without
exhibiting secular fundamental deterioration.
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Canada 1.0%
- -------------------------------------------------------------------
Finland 3.8
- -------------------------------------------------------------------
Netherlands 2.2
- -------------------------------------------------------------------
Switzerland 2.0
- -------------------------------------------------------------------
United States 92.5
- -------------------------------------------------------------------
Other Assets & Liabilities -1.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $ 986.60 $ 8.24
Hypothetical @ $1,000 $1,016.84 $ 8.36
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $ 983.90 $11.72
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $ 983.90 $11.87
Hypothetical @ $1,000 $1,013.17 $12.04
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $ 989.00 $ 5.75
Hypothetical @ $1,000 $1,019.36 $ 5.84
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.65%, 2.35%,
2.38% and 1.15% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
28
The Hartford Growth Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/28/04 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
GROWTH ALLOCATION FUND S&P 500 INDEX AGGREGATE BOND INDEX
---------------------- ------------- --------------------
5/28/04 9450 10000 10000
6/04 9611 10194 10057
7/04 9337 9857 10157
8/04 9346 9896 10351
9/04 9601 10003 10379
10/04 9790 10156 10467
</Table>
<Table>
--- GROWTH ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
$9,450 starting value BOND INDEX $10,000 starting value
$9,790 ending value $10,000 starting value $10,156 ending value
$10,467 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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 Index and Commercial
Mortgage-Backed Securities Index.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE INCEPTION
- -------------------------------------------------
Growth Allocation A# 5/28/2004 3.60%
- -------------------------------------------------
Growth Allocation A## 5/28/2004 -2.08%
- -------------------------------------------------
Growth Allocation B# 5/28/2004 3.40%
- -------------------------------------------------
Growth Allocation B## 5/28/2004 -1.60%
- -------------------------------------------------
Growth Allocation C# 5/28/2004 3.30%
- -------------------------------------------------
Growth Allocation C## 5/28/2004 1.27%
- -------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B and C shares will
vary from the results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Senior Vice President
CHRISTOPHER HANLON, CFA
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the period ended October 31, 2004, since inception of May 28, 2004, The
Hartford Growth Allocation Fund Class A placed in the 1st quartile with a total
return, before sales charge, of 3.60%, versus a return of 1.28% for the Lipper
Mid-Cap Core Funds and 1.56% for the S&P 500 Index and 4.65% for the Lehman
Brothers U.S. Aggregate Bond Index.
WHY DID THE FUND PERFORM THIS WAY?
Within the S&P 500, energy was the top performer, followed by utilities and
telecommunication services. Health care was the laggard in the S&P 500, followed
by consumer staples and information technology. The equity component of the Fund
is structured around five equity indices. Since inception of the Fund, the MSCI
EAFE at 5.62% was the top performer, followed by the S&P 500/Barra Value at
4.79%, Russell 2000 at 3.23%, S&P Midcap 400 at 1.73% and S&P 500/Barra Growth
at -1.65%. The Fund benefited from value within its large cap equity
allocations. The Fund also benefited, relative to the benchmark, from its
allocations within the international, mid-cap and small cap sectors. None of
those sectors are represented in the S&P 500.
Yields fell, with the 10 year Treasury note yield falling 62 basis points to
4.03% and the 5 year Treasury note yield falling 51 basis points to 3.28%. The
Fund's duration is targeted to be less than the Lehman Aggregate based on the
risk preferences of the Fund and in anticipation of rising rates. For the
period, short duration positioning detracted from overall performance.
Within the major sectors of the Lehman Brothers U.S. Aggregate Bond Index,
corporates were the top performer, while asset-backed securities were the worst.
The fixed income component of the Fund is structured around five fixed income
indices. For the period, the Lehman Brothers High Yield Index was the top
performer at 8.27%, followed by the Lehman Brothers U.S. TIPS Index at 4.92%,
Lehman Brothers U.S. Aggregate Index at 4.65%, Lehman Brothers 1-3 Year
Government at 1.41% and Merrill Lynch 3-Month U.S. Treasury Bill Index at 0.57%.
The Fund benefited, relative to the Index, from its allocation to the high yield
and Treasury Inflation Protected Securities (TIPS) asset classes. The Fund's
benchmark does not hold any TIPS or high yield securities. Allocations to cash
securities contributed the least the portfolio.
WHAT IS THE OUTLOOK?
The economy continues to expand at a healthy pace and the October payroll survey
indicated that the labor market may have finally gained traction. We therefore
expect that growth for the rest of the year will be firm as continued job
creation leads to higher income and spending. However, recent economic data is
not
29
- --------------------------------------------------------------------------------
conclusive, and there are mixed signals in the business and consumer sector.
Corporate earnings growth is still healthy, but has recently slowed from very
high levels. Business investments continue to increase. We expect that business
investments will pick up further as the recovery continues, which should lead to
higher job creation. Inventory levels are low, signaling that the expansion has
momentum. In light of our view of a robust economy, stronger corporate balance
sheets and increasing inflation, we expect domestic equity markets to perform
well. Additionally, we expect the Fund's international exposure to benefit from
overseas growth.
The allocations to TIPS and high yield should continue to perform well given our
view of economic growth, stronger corporate earnings and increasing inflation.
We believe the Federal Reserve will continue to raise rates and we are
anticipating slightly higher rates in the coming three to six months. Our
outlook is for short Treasury rates to rise more than longer Treasury rates and
a flatter yield curve to ensue.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 6.9%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 10.7
- -------------------------------------------------------------------
Hartford Dividend and Growth Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 11.7
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 7.8
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 6.8
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 11.7
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 9.7
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 11.7
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 2.9
- -------------------------------------------------------------------
Other Assets & Liabilities 2.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of May 28, 2004 (commencement of operations)
through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
EXPENSES PAID
DURING PERIOD **
MAY 28, 2004
BEGINNING ENDING THROUGH
ACCOUNT VALUE ACCOUNT OCTOBER 31,
MAY 28, 2004 VALUE 2004
(COMMENCEMENT OCTOBER 31, (COMMENCEMENT
OF OPERATIONS) 2004 OF OPERATIONS)
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,036.00 $2.73
Hypothetical @ $1,000 $1,018.00 $2.71
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,034.00 $5.55
Hypothetical @ $1,000 $1,017.00 $5.50
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,033.00 $5.55
Hypothetical @ $1,000 $1,016.50 $5.50
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.63%, 1.28%,
and 1.28% for classes A, B, and C, respectively, multiplied by the average
account value over the period, multiplied by 156/366 (to reflect the one-half
year period).
These ratios do not reflect fees and expenses associated with the underlying
funds. If such fees and expenses had been included, the expenses would have been
higher. Please refer to your prospectus for details on the expenses that apply
to the underlying funds.
30
The Hartford Growth Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 10/31/94 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GROWTH FUND RUSSELL 1000 GROWTH INDEX
----------- -------------------------
10/31/94 9450 10000
8991 9680
8956 9843
9019 10052
9273 10473
9587 10779
9608 11015
9905 11400
10617 11840
11167 12332
11236 12346
11249 12915
10/95 10990 12924
11350 13427
10887 13503
11200 13954
11439 14210
11571 14228
11869 14602
12192 15112
12123 15133
11386 14246
11614 14614
12526 15678
10/96 12654 15772
13338 16956
12908 16624
13488 17789
13177 17668
12483 16713
12950 17822
14176 19109
14726 19873
16066 21630
15629 20365
16359 21367
10/97 15857 20576
15749 21451
15980 21691
16172 22340
17328 24019
18286 24978
18350 25323
18052 24603
19102 26109
18776 25937
15874 22044
16980 23737
10/98 17827 25645
18864 27597
20716 30086
21704 31852
20898 30396
21972 31998
22299 32040
21838 31056
22836 33230
22462 32173
21886 32698
21493 32011
10/99 22970 34428
24111 36287
27898 40061
26985 38182
29834 40049
29651 42917
27094 40874
26266 38814
27252 41756
26826 40015
29042 43636
28653 39508
10/00 27508 37639
24946 32091
26517 31077
25306 33225
24124 27583
22552 24582
25205 27692
25277 27285
24499 26652
23749 25985
21759 23860
19841 21479
10/01 20519 22606
22429 24779
22645 24732
21967 24294
21347 23286
21996 24091
20237 22125
19818 21590
18015 19593
16818 18515
17035 18571
15679 16645
10/02 17164 18171
18145 19158
17035 17834
16659 17401
16371 17321
16919 17643
18347 18947
19241 19892
19688 20167
20006 20669
20424 21184
20366 20957
10/03 21910 22135
22198 22367
22588 23141
23323 23613
23583 23764
23482 23322
23179 23051
24145 23480
24650 23774
22775 22430
22227 22320
23179 22532
10/04 23352 22884
</Table>
<Table>
--- GROWTH FUND --- RUSSELL 1000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$23,352 ending value $22,884 ending value
</Table>
RUSSELL 1000 GROWTH INDEX is an unmanaged index that measures the performance of
those Russell 1000 Index companies with higher price-to-book ratios and higher
forecasted growth values.
The 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.
PORTFOLIO MANAGER
ANDREW J. SHILLING, CFA
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION
- -------------------------------------------------------------------
Growth A# 6/8/1949 6.58% 0.33% 9.47% 11.16%
- -------------------------------------------------------------------
Growth A## 6/8/1949 0.75% -0.80% 8.85% 11.04%
- -------------------------------------------------------------------
Growth B# 11/14/1994 5.77% -0.38% NA* NA*
- -------------------------------------------------------------------
Growth B## 11/14/1994 0.77% -0.64% NA* NA*
- -------------------------------------------------------------------
Growth C# 11/14/1994 5.84% -0.37% NA 8.83%
- -------------------------------------------------------------------
Growth C## 11/14/1994 3.78% -0.78% NA 8.73%
- -------------------------------------------------------------------
Growth H# 11/14/1994 6.19% -0.27% NA* NA*
- -------------------------------------------------------------------
Growth H## 11/14/1994 2.19% -0.53% NA* NA*
- -------------------------------------------------------------------
Growth L# 6/8/1949 6.95% 0.49% 9.56% 11.19%
- -------------------------------------------------------------------
Growth L## 6/8/1949 1.87% -0.48% 9.02% 11.09%
- -------------------------------------------------------------------
Growth M# 11/14/1994 6.20% -0.27% NA* NA*
- -------------------------------------------------------------------
Growth M## 11/14/1994 2.20% -0.53% NA* NA*
- -------------------------------------------------------------------
Growth N# 11/14/1994 6.20% -0.27% NA 8.88%
- -------------------------------------------------------------------
Growth N## 11/14/1994 5.20% -0.27% NA 8.88%
- -------------------------------------------------------------------
Growth Y# 2/19/2002 7.25% NA NA 3.62%
- -------------------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, H, L, M, N and
Y shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Growth Fund Class A, before sales charge, returned 6.58% for the
twelve-month period ended October 31, 2004. The Fund outperformed the Russell
1000 Growth benchmark return of 3.38% and the Lipper Large Cap Growth Funds
Average return of 2.67%. These results were achieved against a backdrop of
underperformance for growth investing. The Russell 1000 Growth's 3.4% return was
well below the 15.5% posted by the Russell 1000 Value, a bias that was repeated
across all capitalization ranges.
WHY DID THE FUND PERFORM THIS WAY?
The twelve months ended October 31, 2004, the market was subject to significant
volatility. Late 2003 and early 2004 saw strong equity market returns driven by
a strengthening economy, robust corporate profits, and improved investor
sentiment. Stocks peaked in February, then entered a trading range before moving
down in July and August. The summer weakness was a result of investor focus on
several concerns: a softening economy, uncertainty over presidential elections,
continued violence in Iraq, and worries of potential terrorist strikes during
the political conventions or the Olympics. By fall, many of these worries had
been mitigated. The economy seemed to be moving forward despite record high oil
prices and America remained free of terrorist attacks. This benign news powered
another rise in September, resulting in positive performance for the twelve
month period.
The Fund outperformed in this volatile environment by maintaining its focus on
stock selection. Despite the negative return for benchmark Technology stocks,
the Fund's Technology holdings were strongly additive to returns. Wireless
handheld device maker Research In Motion continued to appreciate, most recently
on the introduction of an appealing new messaging and communication device and a
software agreement with cell phone giant Nokia. Internet media company Yahoo!
also boosted results on favorable trends for online advertising and paid search,
while online auctioneer eBay, a Consumer Discretionary stock, rose on strong
international growth and accelerating PayPal metrics. In the Financials sector,
mortgage lender Countrywide Financial continued to benefit from favorable
mortgage rates.
31
- --------------------------------------------------------------------------------
On the negative side, semiconductor manufacturer KLA-Tencor fell on concerns
about excess industry capacity. Business technology outsourcing software firm
Mercury Interactive announced worse-than-expected earnings and guidance in the
third quarter, creating downward pressure on the stock. In Health Care, drug
distributor Cardinal Health was hurt by an investigation of accounting
practices. We exited the stock as the investigation continues and we see signs
of emerging weakness in Cardinal's non-distribution businesses. Another Health
Care stock, drug firm Astra Zeneca, was impacted by FDA concerns about negative
side effects of a new blood thinning drug.
WHAT IS THE OUTLOOK?
Though we believe that the economy will exhibit moderate growth over the
intermediate term, we are somewhat challenged to aptly forecast the near-term
macroeconomic environment. On the one hand, GDP was recently revised upward,
manufacturing indicators continue to show strength, and interest rates are
relatively low. On the other hand, employment growth remains somewhat sluggish,
the Federal Reserve continues to raise short-term interest rates, and oil prices
remain high. Elevated energy prices, particularly if they persist or rise in the
winter months, could serve to restrain corporate spending and/or curtail
consumer consumption. In this uncertain environment, we continue to emphasize
competitively-advantaged, share-gaining industry leaders that should perform
well in most economic scenarios.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 1.8%
- -------------------------------------------------------------------
Capital Goods 1.0
- -------------------------------------------------------------------
Consumer Cyclical 13.2
- -------------------------------------------------------------------
Energy 1.2
- -------------------------------------------------------------------
Finance 23.1
- -------------------------------------------------------------------
Health Care 20.6
- -------------------------------------------------------------------
Services 12.5
- -------------------------------------------------------------------
Technology 36.2
- -------------------------------------------------------------------
Other Assets & Liabilities -8.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,007.50 $ 7.42
Hypothetical @ $1,000 $1,017.75 $ 7.46
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,004.20 $10.83
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,004.80 $10.23
Hypothetical @ $1,000 $1,014.93 $10.28
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,006.20 $ 9.13
Hypothetical @ $1,000 $1,016.04 $ 9.17
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,009.90 $ 5.36
Hypothetical @ $1,000 $1,019.81 $ 5.38
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,006.20 $ 9.13
Hypothetical @ $1,000 $1,016.04 $ 9.17
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,006.20 $ 9.13
Hypothetical @ $1,000 $1,016.04 $ 9.17
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,011.70 $ 4.15
Hypothetical @ $1,000 $1,021.01 $ 4.17
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.47%, 2.15%,
2.03%, 1.81%, 1.06%, 1.81%, 1.81% and 0.82% for classes A, B, C, H, L, M, N
and Y, respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
32
The Hartford Growth Opportunities Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
SHORT-
AND
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 10/31/94 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GROWTH OPPORTUNITIES FUND RUSSELL 3000 GROWTH INDEX
------------------------- -------------------------
10/31/94 9450 10000
9128 9672
9312 9840
9184 10009
9428 10432
9706 10737
9655 10964
10107 11324
11051 11794
11762 12327
11908 12355
12291 12891
10/95 11871 12833
12054 13339
11686 13438
11906 13830
12430 14120
12345 14164
12962 14609
13321 15145
13097 15057
11917 14076
12395 14505
13529 15529
10/96 13575 15546
14220 16642
13693 16377
14380 17453
13579 17247
12634 16289
12756 17259
14173 18614
14760 19349
16253 20992
15743 19936
16578 20981
10/97 15848 20154
15717 20872
15574 21085
15338 21627
16704 23279
17554 24212
17663 24529
17238 23732
18159 25078
17247 24742
14076 20865
15177 22507
10/98 15891 24267
16491 26116
18529 28472
19105 30115
17627 28636
18555 30111
18567 30330
18075 29472
19393 31497
19354 30498
19694 30877
19783 30312
10/99 21210 32494
23674 34359
28473 38101
28094 36417
36351 38693
32965 40883
30155 38781
28308 36730
32610 39643
31583 37867
35878 41331
35909 37545
10/00 32791 35679
26489 30338
29462 29559
28941 31625
25212 26328
22413 23497
24528 26463
24313 26148
24262 25643
23690 24894
22086 22890
18674 20510
10/01 19624 21642
21596 23702
22359 23757
22122 23308
20790 22303
21885 23151
20801 21356
20532 20786
18230 18874
16444 17708
16052 17757
14772 15949
10/02 15804 17371
17239 18362
16001 17094
15784 16675
15567 16575
16001 16880
17456 18149
18808 19127
19355 19397
19541 19948
20419 20484
20150 20243
10/03 21936 21425
22669 21684
22979 22384
23681 22894
24021 23025
24197 22638
23474 22307
24372 22725
25085 23045
22958 21678
22648 21542
23867 21824
10/04 24249 22180
</Table>
<Table>
--- GROWTH OPPORTUNITIES FUND --- RUSSELL 3000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$22,249 ending value $22,180 ending value
</Table>
RUSSELL 3000 GROWTH INDEX is an unmanaged index that measures the performance of
those Russell 3000 Index companies with higher price-to-book ratios and higher
forecasted growth values.
The 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.
PORTFOLIO MANAGER
MICHAEL T. CARMEN, CFA
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- --------------------------------------------------------------------
Growth Opp A# 3/31/1963 10.54% 2.71% 9.88% 12.77%
- --------------------------------------------------------------------
Growth Opp A## 3/31/1963 4.45% 1.56% 9.26% 12.62%
- --------------------------------------------------------------------
Growth Opp B# 11/14/1994 9.84% 2.02% NA* NA*
- --------------------------------------------------------------------
Growth Opp B## 11/14/1994 4.84% 1.78% NA* NA*
- --------------------------------------------------------------------
Growth Opp C# 11/14/1994 9.84% 2.02% NA 9.29%
- --------------------------------------------------------------------
Growth Opp C## 11/14/1994 7.74% 1.63% NA 9.18%
- --------------------------------------------------------------------
Growth Opp H# 11/14/1994 10.16% 2.14% NA* NA*
- --------------------------------------------------------------------
Growth Opp H## 11/14/1994 6.16% 1.89% NA* NA*
- --------------------------------------------------------------------
Growth Opp L# 3/31/1963 11.00% 2.91% 9.98% 12.79%
- --------------------------------------------------------------------
Growth Opp L## 3/31/1963 5.71% 1.91% 9.45% 12.66%
- --------------------------------------------------------------------
Growth Opp M# 11/14/1994 10.12% 2.14% NA* NA*
- --------------------------------------------------------------------
Growth Opp M## 11/14/1994 6.12% 1.89% NA* NA*
- --------------------------------------------------------------------
Growth Opp N# 11/14/1994 10.12% 2.14% NA 9.35%
- --------------------------------------------------------------------
Growth Opp N## 11/14/1994 9.12% 2.14% NA 9.35%
- --------------------------------------------------------------------
Growth Opp Y# 2/19/2002 11.20% NA NA 6.06%
- --------------------------------------------------------------------
Growth Opp Z# 3/1/1996 11.23% 3.20% NA 8.66%
- --------------------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, H, L, M, N, Y
and Z shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Growth Opportunities Fund Class A, before sales charge, returned
10.54% for the twelve-month period ended October 31, 2004, outperforming the
benchmark Russell 3000 Growth Index, which rose 3.54%. The Fund also
outperformed the Lipper Multi-Cap Growth Funds Average, which returned 4.69%.
These results were achieved against a backdrop of underperformance for growth
investing. The Russell 3000 Growth's 3.5% return was well below the 15.6% posted
by the Russell 3000 Value, a bias that was repeated across all capitalization
ranges.
WHY DID THE FUND PERFORM THIS WAY?
The twelve months ended October 31, 2004, were subject to significant
volatility. Late 2003 and early 2004 saw strong equity market returns driven by
a strengthening economy, robust corporate profits, and improved investor
sentiment. Stocks peaked in February, then entered a trading range before moving
down in July and August. The summer weakness was a result of investor focus on
several concerns: a softening economy, uncertainty over presidential elections,
continued violence in Iraq, and worries of potential terrorist strikes during
the political conventions or the Olympics. By fall, many of these worries had
been mitigated. The economy seemed to be moving forward despite record high oil
prices and America remained free of terrorist attacks. This benign news powered
another rise in September, resulting in positive full-year performance.
The Fund outperformed in this volatile environment by maintaining its focus on
stock selection. For the year, the Fund had positive value-added in eight of ten
economic sectors. Positions in Technology, Industrials, and Consumer
Discretionary stocks were most additive to returns. In Technology, wireless
handheld device maker Research In Motion continued to appreciate, most recently
on the introduction of an appealing new messaging and communication device and a
software agreement with cell phone giant Nokia. Consumer Discretionary stock
Techtronic Industries, a maker of rechargeable products including cordless power
tools and health care products, also saw a significant advance during the year.
In the Industrials sector, corporate strategy consultant Corporate Executive
Board posted strong revenue and net income gains as the firm continued to
benefit from improving business and spending trends.
33
- --------------------------------------------------------------------------------
Negative results were seen in several areas. Semiconductor firm Broadcom
suffered along with many other semiconductor companies on concerns about
industry-wide inventory levels. Dobson Communications, a rural wireless carrier
based in Oklahoma, fell when the company cut its forecast for subscriber
additions and revenue per subscriber. This contributed to reductions in
anticipated revenue and earnings growth for 2004. European low fare carrier
Ryanair fell early in the period following an adverse ruling by the European
Union relating to one of its European airport hubs.
WHAT IS THE OUTLOOK?
As we enter the last quarter of 2004, the macro environment again appears mixed.
On one hand, GDP was recently revised upward, manufacturing indicators continue
to show strength, and interest rates remain relatively low. On the other hand,
oil prices are hovering around $50 per barrel, employment growth remains
somewhat sluggish and the Federal Reserve continues to raise short-term interest
rates. In addition, questions about the possibility of another terrorist
incident and the slowdown in corporate profits create a challenging near-term
backdrop for equity investors. In this uncertain environment, we continue to
search for stocks that have surprisingly strong earnings profiles and,
therefore, should appreciate regardless of any headwinds caused by the market.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.1%
- -------------------------------------------------------------------
Capital Goods 3.0
- -------------------------------------------------------------------
Consumer Cyclical 11.6
- -------------------------------------------------------------------
Energy 3.6
- -------------------------------------------------------------------
Finance 15.3
- -------------------------------------------------------------------
Health Care 15.5
- -------------------------------------------------------------------
Services 15.8
- -------------------------------------------------------------------
Technology 32.3
- -------------------------------------------------------------------
Transportation 4.6
- -------------------------------------------------------------------
Other Assets & Liabilities -6.8
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,033.00 $ 7.46
Hypothetical @ $1,000 $1,017.80 $ 7.41
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,030.20 $10.97
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,030.20 $10.97
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,031.60 $ 9.24
Hypothetical @ $1,000 $1,016.04 $ 9.17
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,035.80 $ 5.42
Hypothetical @ $1,000 $1,019.81 $ 5.38
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,031.60 $ 9.24
Hypothetical @ $1,000 $1,016.04 $ 9.17
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,031.60 $ 9.24
Hypothetical @ $1,000 $1,016.04 $ 9.17
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,036.60 $ 4.35
Hypothetical @ $1,000 $1,020.86 $ 4.32
- ----------------------------------------------------------------------
CLASS Z
Actual $1,000 $1,036.60 $ 4.15
Hypothetical @ $1,000 $1,021.06 $ 4.12
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.46%, 2.15%,
2.15%, 1.81%, 1.06%, 1.81%, 1.81%, 0.85% and 0.81% for classes A, B, C, H, L,
M, N, Y and Z, respectively, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
34
The Hartford High Yield Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
HIGH
CURRENT
INCOME.
GROWTH
OF
CAPITAL
IS A
SECONDARY
OBJECTIVE.
PERFORMANCE OVERVIEW(2) 9/30/98 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS CORPORATE HIGH
HIGH YIELD FUND YIELD 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
11859 12886
12130 13178
12265 13429
12233 13396
12270 13487
12097 13395
11865 13169
12014 13357
12166 13539
12381 13804
12552 14004
10/04 12790 14258
</Table>
<Table>
--- HIGH YIELD FUND --- LEHMAN BROTHERS CORPORATE HIGH YIELD INDEX
$9,550 starting value $10,000 starting value
$12,790 ending value $14,258 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------
High Yield A# 9/30/1998 9.26% 4.97% 4.92%
- ------------------------------------------------------------
High Yield A## 9/30/1998 4.39% 4.00% 4.13%
- ------------------------------------------------------------
High Yield B# 9/30/1998 8.45% 4.23% 4.18%
- ------------------------------------------------------------
High Yield B## 9/30/1998 3.45% 3.94% 4.18%
- ------------------------------------------------------------
High Yield C# 9/30/1998 8.54% 4.27% 4.21%
- ------------------------------------------------------------
High Yield C## 9/30/1998 6.45% 4.06% 4.04%
- ------------------------------------------------------------
High Yield Y# 9/30/1998 9.72% 5.37% 5.33%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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, 2004, The Hartford High Yield Fund
Class A placed in the 4th quartile with a total return, before sales charge, of
9.26% versus a return of 11.03% for the Lipper High Current Yield Funds and a
return of 12.32% for the Lehman Brothers Corporate High Yield Index.
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, 2004, the SEC yield for this Fund's
class A shares was 5.22%.
WHY DID THE FUND PERFORM THIS WAY?
The high yield market has continued to post solid returns (coming off the second
best year in high yield performance) and outperformed many other fixed income
asset classes. In 2003 and continuing into 2004 the market rewarded the lowest
credits ("CCC"), which negatively impacted the portfolio as the Fund had a
weighting to higher rated securities. During the third quarter of 2004, however,
this trend reversed itself and higher quality securities outperformed, given
their greater correlation to Treasuries. This resulted in improved performance
for the Fund. Our holdings in Treasury sensitive issues benefited from this
trend.
Within the high yield universe, basic industrials, energy and utilities were top
performers, while communications, technology and transportation meaningfully
under performed. We maintained an overweight to the capital goods sector,
consistent with our view of an improving macro economic environment. We also
maintained an overweight to the paper sector (basic industrials), but moved from
initially focusing on lumber and wood, which perform well in a low interest rate
environment, to pulp and packaging products, which should outperform in a rising
interest rate environment. In addition, we were favorable to the lodging
industry, given the improvement of both revenues and occupancy numbers due to an
increase of business travel.
WHAT IS THE OUTLOOK?
It appears investment grade buyers' interest in high yield continues to support
the crossover and high quality end of the market as the search for yield goes
unabated. Hedge funds' appetite for the asset class continues to grow and the
growth of the high yield derivatives market is resulting in an increase in
liquidity.
Companies within the S&P 500 continue to boost their dividends. According to
International Strategy and Investment, the S&P Payout Ratio remains at very low
levels due to the strong and rapid rise in corporate profits. This suggests that
there remains the ability for companies to increase payouts. To this point, year
over year percentage increases for dividends for the S&P are approaching 11%.
This trend has historically topped out much closer to 14%. Despite analysts
initially revising down earnings expectations for the third quarter, actual
numbers on average
35
- --------------------------------------------------------------------------------
exceeded expectations. Fourth quarter estimates have also been revised higher
from what was originally anticipated at the beginning of the year.
Our outlook for the sector remains positive, and we continue to recommend an
over-weight to the high yield market versus other fixed income alternatives,
despite the spread tightening that has taken place year-to-date.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
A 1.0%
- -------------------------------------------------------------------
BBB 4.1
- -------------------------------------------------------------------
BB 47.1
- -------------------------------------------------------------------
B 44.0
- -------------------------------------------------------------------
CCC 3.4
- -------------------------------------------------------------------
NR 0.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 15.8%
- -------------------------------------------------------------------
Capital Goods 4.8
- -------------------------------------------------------------------
Consumer Cyclical 8.4
- -------------------------------------------------------------------
Consumer Staples 4.2
- -------------------------------------------------------------------
Energy 5.5
- -------------------------------------------------------------------
Finance 21.8
- -------------------------------------------------------------------
Health Care 3.0
- -------------------------------------------------------------------
Services 16.1
- -------------------------------------------------------------------
Technology 16.5
- -------------------------------------------------------------------
Transportation 1.0
- -------------------------------------------------------------------
Utilities 12.4
- -------------------------------------------------------------------
Other Assets & Liabilities -9.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,057.30 $ 6.72
Hypothetical @ $1,000 $1,018.60 $ 6.60
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,054.50 $10.54
Hypothetical @ $1,000 $1,014.88 $10.33
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,055.20 $ 9.87
Hypothetical @ $1,000 $1,015.53 $ 9.68
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,058.90 $ 4.30
Hypothetical @ $1,000 $1,020.96 $ 4.22
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.30%, 2.04%,
1.91% and 0.83% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
36
The Hartford Income Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT
OBJECTIVE -- SEEKS
CURRENT
INCOME
AND,
AS A
SECONDARY
OBJECTIVE,
CAPITAL
PRESERVATION.
PERFORMANCE OVERVIEW(2) 5/28/04 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S. AGGREGATE BOND
INCOME ALLOCATION FUND INDEX
---------------------- -----------------------------------
5/28/04 9550 10000
6/04 9560 10057
7/04 9603 10157
8/04 9683 10351
9/04 9713 10379
10/04 9781 10466
</Table>
<Table>
--- INCOME ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE
$9,450 starting value BOND INDEX
$9,781 ending value $10,000 starting value
$10,466 ending value
</Table>
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 Index and Commercial
Mortgage-Backed Securities Index.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE SINCE INCEPTION
- ------------------------------------------------------------
Income Allocation A# 5/28/2004 2.42%
- ------------------------------------------------------------
Income Allocation A## 5/28/2004 -2.18%
- ------------------------------------------------------------
Income Allocation B# 5/28/2004 2.08%
- ------------------------------------------------------------
Income Allocation B## 5/28/2004 -2.92%
- ------------------------------------------------------------
Income Allocation C# 5/28/2004 2.08%
- ------------------------------------------------------------
Income Allocation C## 5/28/2004 0.06%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Senior Vice President
CHRISTOPHER HANLON, CFA
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the period ended October 31, 2004, since inception at May 28, 2004, The
Hartford Income Allocation Fund Class A placed in the 3rd quartile with a total
return, before sales charge, of 2.42%, versus a return of 3.72% for the Lipper
General Bond Funds and 4.65% for the Lehman Brothers U.S. Aggregate Bond Index.
WHY DID THE FUND PERFORM THIS WAY?
Since inception of the Fund, yields fell, with the 10 year Treasury note yield
falling 62 basis points to 4.03% and the 5 year Treasury note yield falling 51
basis points to 3.28%. The Fund's duration is targeted to be less than the
Lehman Aggregate based on the risk preferences of the Fund and in anticipation
of rising rates. For the period, short duration positioning detracted from
overall performance.
Within the major sectors of the Lehman Brothers U.S. Aggregate Bond Index,
corporates were the top performer, while asset-backed securities were the worst.
The fixed income component of the Fund is structured around five fixed income
indices. For the period, the Lehman Brothers High Yield Index was the top
performer at 8.27%, followed by the Lehman Brothers U.S. TIPS Index at 4.92%,
Lehman Brothers U.S. Aggregate Index at 4.65%, Lehman Brothers 1-3 Year
Government at 1.41% and Merrill Lynch 3-Month U.S. Treasury Bill Index at 0.57%.
The Fund benefited, relative to the Index, from an overweight to high yield
bonds and Treasury Inflation Protected Securities (TIPS). The Fund's benchmark
does not hold any TIPS or high yield securities. The Fund also maintained a
higher allocation to money market securities due to its conservative nature and
in anticipation of a rising rate environment. Having a shorter duration
negatively impacted performance.
WHAT IS THE OUTLOOK?
The economy continues to expand at a healthy pace and the October payroll survey
indicated that the labor market may have finally gained traction. We therefore
expect that growth for the rest of the year will be firm as continued job
creation leads to higher income and spending. However, recent economic data is
not conclusive, and there are mixed signals in the business and consumer sector.
Corporate earnings growth is still healthy, but has recently slowed from very
high levels. Business investments continue to increase. We expect that business
investments will pick up further as the recovery continues, which again should
lead to higher job creation.
37
- --------------------------------------------------------------------------------
Inventory levels are low, signaling that the expansion has momentum.
The Federal Reserve believes that the expansion is on a solid footing, and
predicts that growth will be moderate in the near term despite the rise in
energy prices. We believe the Federal Reserve will continue to raise rates and
we are anticipating slightly higher rates in the coming three to six months. Our
outlook is for short-term Treasury rates to rise more than longer-term Treasury
rates and a flatter yield curve to ensue.
We anticipate reducing the Fund's money market exposure in favor of higher
yielding securities. The allocations to TIPS and high yield should continue to
perform well given our view of economic growth, stronger corporate earnings and
increasing inflation.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 17.2%
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 14.3
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 17.2
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 26.8
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 20.0
- -------------------------------------------------------------------
Other Assets & Liabilities 4.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs(in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of May 28, 2004 (commencement of operations)
through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
EXPENSES PAID
DURING PERIOD **
BEGINNING ENDING MAY 28, 2004
ACCOUNT VALUE ACCOUNT THROUGH
MAY 28, 2004 VALUE OCTOBER 31, 2004
(COMMENCEMENT OCTOBER 31, (COMMENCEMENT
OF OPERATIONS) 2004 OF OPERATIONS)
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,024.20 $2.42
Hypothetical @ $1,000 $1,012.10 $2.41
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,020.80 $5.43
Hypothetical @ $1,000 $1,010.40 $5.41
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,020.80 $5.43
Hypothetical @ $1,000 $1,010.40 $5.41
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.56%%, 1.26%
and 1.26% for classes A, B and C, respectively, multiplied by the average
account value over the period, multiplied by 156/366 (to reflect the one-half
year period).
These ratios do not reflect fees and expenses associated with the underlying
funds. If such fees and expenses had been included, the expenses would have been
higher. Please refer to your prospectus for details on the expenses that apply
to the underlying funds.
38
The Hartford Income Fund
(subadvised by Hartford Investment Management Company) INVESTMENT
OBJECTIVE -- SEEKS TO
PROVIDE A HIGH LEVEL OF
CURRENT INCOME. CAPITAL
APPRECIATION IS A
SECONDARY OBJECTIVE.
PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/04
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
10637 10516
10805 10623
10896 10708
10996 10824
11082 10905
10790 10621
10693 11072
10771 10639
10899 10745
11110 10950
11172 10979
10/04 11306 11072
</Table>
<Table>
--- INCOME FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX
$9,550 starting value $10,000 starting value
$11,306 ending value $11,072 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ----------------------------------------------------------
Income A# 10/31/2002 6.85% 8.80%
- ----------------------------------------------------------
Income A## 10/31/2002 2.00% 6.33%
- ----------------------------------------------------------
Income B# 10/31/2002 6.10% 8.03%
- ----------------------------------------------------------
Income B## 10/31/2002 1.10% 6.17%
- ----------------------------------------------------------
Income C# 10/31/2002 6.09% 8.13%
- ----------------------------------------------------------
Income C## 10/31/2002 4.03% 7.60%
- ----------------------------------------------------------
Income Y# 11/28/2003 NA 6.57%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Managing Director
EDWARD VAIMBERG
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2004, The Hartford Income Fund Class A
placed in the 2nd quartile with a total return, before sales charge, of 6.85%
versus a return of 6.40% for the Lipper Corporate BBB - Rated Debt Funds and
5.53% 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,
2004, the SEC yield for this Fund's Class A share was 3.76%.
WHY DID THE FUND PERFORM THIS WAY?
The past year has seen wide swings in the yield of U.S. Treasury securities amid
concerns about the sustainability of U.S. economic growth, as well as the
expected timing and pace of increases in U.S. short term interest rates. The
yield of the 10 year Treasury note, for example, began the period at 4.3%, fell
to 3.7%, rose to over 4.8% and closed the period at 4.0%.
The Fund was positioned for a growing economy over the past year, which
benefited performance. The market's major "spread" sectors outperformed U.S.
Treasury securities of a similar duration. High yield bonds in particular
contributed substantially to total return. This reflected a reduction in
concerns relating to terrorism following completion of the political conventions
and the Olympics without a grave terrorist incident. In addition, growth
remained strong enough to contribute significantly to profitability and improved
credit quality. The Fund's yield also benefited from its allocation to Treasury
Inflation Protected Securities (TIPS), which passed through increases in
inflation resulting from seasonal factors and higher oil prices. During the year
we decreased our weighting in residential mortgage backed securities as we felt
there were better yields and returns in other sectors, and increased allocations
to emerging markets. The increase to emerging markets reflected both market
appreciation and a decision to selectively add new issues as opportunities
arose.
The Fund's duration was shortened during the year in anticipation of rising
interest rates. More recently, the duration has been extended as we sought out
opportunities for greater yield as rates began to rise. At a duration of 4.21
years, the Fund is still slightly short the index. Positions were distributed
across the yield curve, with an emphasis on the 3-10 year maturities.
WHAT IS THE OUTLOOK?
We continue to expect the economy to grow at a healthy pace. Despite the recent
moderation in inflation data, core inflation is likely to continue to be
pressured upward, reflecting the increase in pipeline pressures. Further
increases in the U.S. Federal Funds rate are expected. The pace and magnitude
are likely to be influenced
39
- --------------------------------------------------------------------------------
in part by perceptions of the extent to which the U.S. Federal Reserve is
"behind the curve." The Fund has been positioned to benefit from a recovery in
the U.S. economy. We will continue to monitor duration closely, as well as the
potential for wider spreads in the corporate and other sectors. We continue to
expect to have significant positions in corporate bonds, as firms have
demonstrated ongoing improvements in free cash flow, liquidity, and other
measures of corporate health.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 42.8%
- -------------------------------------------------------------------
AA 1.6
- -------------------------------------------------------------------
A 7.7
- -------------------------------------------------------------------
BBB 20.8
- -------------------------------------------------------------------
BB 16.0
- -------------------------------------------------------------------
B 10.6
- -------------------------------------------------------------------
CCC 0.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.2%
- -------------------------------------------------------------------
Capital Goods 2.7
- -------------------------------------------------------------------
Consumer Cyclical 4.1
- -------------------------------------------------------------------
Consumer Staples 1.9
- -------------------------------------------------------------------
Direct Federal Obligations 24.5
- -------------------------------------------------------------------
Energy 3.7
- -------------------------------------------------------------------
Finance 23.6
- -------------------------------------------------------------------
General Obligations 0.4
- -------------------------------------------------------------------
Health Care 2.0
- -------------------------------------------------------------------
Services 6.7
- -------------------------------------------------------------------
Technology 8.8
- -------------------------------------------------------------------
Transportation 1.1
- -------------------------------------------------------------------
Utilities 4.5
- -------------------------------------------------------------------
U.S. Government Agencies 8.5
- -------------------------------------------------------------------
Other Assets & Liabilities 1.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,047.80 $5.15
Hypothetical @ $1,000 $1,020.11 $5.08
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,043.20 $8.73
Hypothetical @ $1,000 $1,016.59 $8.67
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,043.10 $8.73
Hypothetical @ $1,000 $1,016.59 $8.62
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,048.40 $3.60
Hypothetical @ $1,000 $1,021.62 $3.56
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.00%, 1.70%,
1.70% and 0.70% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
40
The Hartford Inflation Plus Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
A TOTAL
RETURN
THAT
EXCEEDS
THE
RATE OF
INFLATION
OVER AN
ECONOMIC
CYCLE.
PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/04
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
10410 11082
10499 11195
10608 11324
10841 11585
11002 11771
10487 11200
10627 11402
10620 11406
10706 11512
10975 11821
10988 11844
10/04 11077 11963
</Table>
<Table>
--- INFLATION PLUS FUND --- LEHMAN BROTHERS U.S. TIPS INDEX
$9,550 starting value $10,000 starting value
$11,077 ending value $11,963 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Inflation Plus A# 10/31/2002 6.39% 7.70%
- ------------------------------------------------------------------
Inflation Plus A## 10/31/2002 1.61% 5.26%
- ------------------------------------------------------------------
Inflation Plus B# 10/31/2002 5.65% 7.02%
- ------------------------------------------------------------------
Inflation Plus B## 10/31/2002 0.65% 5.13%
- ------------------------------------------------------------------
Inflation Plus C# 10/31/2002 5.74% 7.02%
- ------------------------------------------------------------------
Inflation Plus C## 10/31/2002 3.68% 6.49%
- ------------------------------------------------------------------
Inflation Plus Y# 11/28/2003 NA 6.89%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Managing Director
TIMOTHY WILHIDE
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2004, The Hartford Inflation Plus Fund
Class A placed in the 4th quartile with a total return, before sales charge, of
6.39%, versus a return of 7.35% for the Lipper Intermediate U.S. Treasury Funds
and 6.85% for the Lehman Brothers U.S. TIPS Index.
WHY DID THE FUND PERFORM THIS WAY?
Treasury Inflation Protected Securities (TIPS), as an asset class, have
performed well over the past 12 months and have outperformed similar maturity
nominal Treasuries. Beginning in the second quarter, the Fund was positioned for
a rise in rates in anticipation of an increase in the Fed Funds rate. While this
ultimately proved to be the correct strategy, we were premature. In addition, we
had expected that real rates would increase once the Fed tightened, but in fact
yields fell. Further affecting performance was the soft patch experienced in May
through August, when we expected stronger growth. As a result of these
circumstances, Fund performance was negatively affected. During the year, the
Fund opportunistically added floating rate securities for yield opportunities
and as an inflation hedge, ending the year with a 3% allocation. In addition,
with the Treasury's new TIPS auctions this past year, the Treasury is working to
establish a full maturity curve, similar to what is exists in the nominal
market. This offered new opportunities for diversification within the Fund. The
Fund has continued to maintain a high weighting to TIPS throughout the year. As
of the end of October 2004, the Fund was 96% invested in TIPS.
WHAT IS THE OUTLOOK?
We expect October data will show a modest pickup in economic growth and we
believe this will lead the Federal Reserve to continue its tightening of
monetary policy. We also expect upcoming year over year increases in the
Consumer Price Index to increase from the recent 2.5% to 3% or slightly higher.
As a result we look for real and nominal rates to rise somewhat and for the
market to increase its inflation forecast as measured by the difference between
real and nominal Treasuries. As a result we expect TIPS will continue to
experience outperformance.
41
- --------------------------------------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 97.2%
- -------------------------------------------------------------------
AA 0.5
- -------------------------------------------------------------------
A 0.6
- -------------------------------------------------------------------
BBB 1.1
- -------------------------------------------------------------------
NR 0.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,056.20 $5.17
Hypothetical @ $1,000 $1,020.11 $5.08
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,053.50 $8.78
Hypothetical @ $1,000 $1,016.59 $8.62
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,053.50 $8.78
Hypothetical @ $1,000 $1,016.59 $8.62
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,059.80 $3.37
Hypothetical @ $1,000 $1,021.87 $3.30
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.00%, 1.70%,
1.70% and 0.65% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
42
The Hartford International Capital Appreciation Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL CAP APP 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
9211 9285
9716 10011
10087 10153
10553 10390
10800 10452
10286 10224
10467 10256
10800 10498
10038 10158
10086 10205
10590 10473
10/04 11027 10831
</Table>
<Table>
--- INTERNATIONAL CAP APP FUND --- MSCI EAFE
$9,450 starting value $10,000 starting value
$11,027 ending value $10,831 ending value
</Table>
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.
PORTFOLIO MANAGER
ANDREW S. OFFIT
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------
Int'l Cap App A# 4/30/2001 21.14% 4.49%
- -----------------------------------------------------------------
Int'l Cap App A## 4/30/2001 14.48% 2.82%
- -----------------------------------------------------------------
Int'l Cap App B# 4/30/2001 20.33% 3.76%
- -----------------------------------------------------------------
Int'l Cap App B## 4/30/2001 15.33% 2.97%
- -----------------------------------------------------------------
Int'l Cap App C# 4/30/2001 20.33% 3.76%
- -----------------------------------------------------------------
Int'l Cap App C## 4/30/2001 18.13% 3.47%
- -----------------------------------------------------------------
Int'l Cap App Y# 4/30/2001 21.61% 4.95%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford International Capital Appreciation Fund Class A, before sales
charge, returned 21.14% for the twelve-month period ended October 31, 2004. The
Fund outperformed its MSCI EAFE benchmark, which returned 19.27%, as well as the
Lipper International Multi Cap Growth Funds Average, which returned 13.15% for
the period.
WHY DID THE FUND PERFORM THIS WAY?
During the period, international equity markets, as measured by the MSCI EAFE
Index, outperformed U.S. equity markets, as measured by the S&P 500 Index. The
advance of international markets was disparate, with the Energy and Utilities
sector returns near 40% while the Information Technology sector returned -1%.
Value stocks outperformed Growth stocks, both internationally and in the U.S.
We do not manage the Fund according to country weights but, instead, focus
mainly on sector and stock weights. Our outperformance versus the benchmark was
primarily driven by strong stock selection within the Health Care and
Information Technology sectors. Although the return of the Technology sector
holdings within the benchmark was the lowest of any benchmark sector, the return
of the Fund's Technology holdings were the second highest. The three largest
contributors to the Fund's absolute return were all from these two sectors:
Canadian technology hardware company Research in Motion, Irish biotech company
Elan, and Finnish technology hardware company Ericsson. Research in Motion,
which produces the successful Blackberry device, is an example of how we are
able to take advantage of price moves that are not based on the fundamentals.
During the summer, the stock fell although there was no change in the outlook
for the company. We took advantage of this disparity and added to our position.
The stock price has subsequently risen dramatically.
Relative performance was offset somewhat by the Fund's overweight position and
stock selection in Consumer Discretionary, as well as underweight positions in
the strong performing Energy and Utilities sectors. Three of the largest
detractors from absolute returns were Munich Re, Alcatel, and Samsung
Electronics. Alcatel, the French communications and energy infrastructure
company, dramatically underperformed since reporting weak second quarter
results, largely upon disappointment with cost cutting efforts. We continued to
hold the stock as of the end of the period as the price has rebounded. Samsung
Electronics is a world class electronics company. However, it is fighting price
declines and oversupply in almost all of its businesses. As a result, we sold
the stock.
WHAT IS THE OUTLOOK?
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.
By remaining in growth companies and in sectors that have "time on their side,"
we have been able to continue to benefit from the strong market conditions,
rather than trying to jump in and out of specific sectors or countries that were
having a short-term run. Thus, we feel that we remain in a very good position
going forward, and do not expect to have to make significant changes to the
Fund. Our process will remain the same regardless: collaborative research with
our global and regional analysts,
43
- --------------------------------------------------------------------------------
frequent meetings with company managements, a strong focus on stock-picking, and
an emphasis on growth. Our goal is to continue to show that this is effective
and can generate sustainable results.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.5%
- -------------------------------------------------------------------
Capital Goods 5.5
- -------------------------------------------------------------------
Consumer Cyclical 16.2
- -------------------------------------------------------------------
Consumer Staples 4.7
- -------------------------------------------------------------------
Energy 8.8
- -------------------------------------------------------------------
Finance 34.2
- -------------------------------------------------------------------
Health Care 6.1
- -------------------------------------------------------------------
Services 6.8
- -------------------------------------------------------------------
Technology 26.9
- -------------------------------------------------------------------
Transportation 3.9
- -------------------------------------------------------------------
Other Assets & Liabilities -15.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Canada 7.7%
- -------------------------------------------------------------------
Finland 2.6
- -------------------------------------------------------------------
France 11.4
- -------------------------------------------------------------------
Germany 4.8
- -------------------------------------------------------------------
Greece 1.8
- -------------------------------------------------------------------
Hong Kong 4.7
- -------------------------------------------------------------------
India 2.4
- -------------------------------------------------------------------
Indonesia 0.8
- -------------------------------------------------------------------
Ireland 4.5
- -------------------------------------------------------------------
Italy 2.4
- -------------------------------------------------------------------
Japan 9.5
- -------------------------------------------------------------------
Luxembourg 1.4
- -------------------------------------------------------------------
Mexico 0.8
- -------------------------------------------------------------------
Netherlands 3.9
- -------------------------------------------------------------------
Norway 0.6
- -------------------------------------------------------------------
Russia 3.4
- -------------------------------------------------------------------
South Korea 3.8
- -------------------------------------------------------------------
Spain 1.4
- -------------------------------------------------------------------
Sweden 1.8
- -------------------------------------------------------------------
Switzerland 4.1
- -------------------------------------------------------------------
United Kingdom 19.3
- -------------------------------------------------------------------
United States 22.5
- -------------------------------------------------------------------
Other Assets & Liabilities -15.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,072.20 $ 8.59
Hypothetical @ $1,000 $1,016.84 $ 8.36
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,068.90 $12.22
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,067.90 $12.22
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,074.20 $ 6.31
Hypothetical @ $1,000 $1,019.05 $ 6.14
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.65%, 2.35%,
2.35% and 1.21% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
44
The Hartford International Opportunities Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/04
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
10867 11866
11621 12772
11754 12978
12041 13308
12107 13390
11765 12974
11854 13004
12151 13298
11578 12911
11578 13014
11931 13433
10/04 12372 13900
</Table>
<Table>
--- INTERNATIONAL OPPORTUNITIES --- MSCI AC WORLD FREE EX U.S. INDEX
$9,450 starting value $10,000 starting value
$12,372 ending value $13,900 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------
Int'l Opp A# 7/22/1996 16.20% -1.93% 3.31%
- -----------------------------------------------------------
Int'l Opp A## 7/22/1996 9.83% -3.03% 2.60%
- -----------------------------------------------------------
Int'l Opp B# 7/22/1996 15.40% -2.65% NA*
- -----------------------------------------------------------
Int'l Opp B## 7/22/1996 10.40% -2.99% NA*
- -----------------------------------------------------------
Int'l Opp C# 7/22/1996 15.39% -2.68% 2.54%
- -----------------------------------------------------------
Int'l Opp C## 7/22/1996 13.24% -2.88% 2.41%
- -----------------------------------------------------------
Int'l Opp Y# 7/22/1996 16.87% -1.48% 3.77%
- -----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
TROND SKRAMSTAD
Senior Vice President, Partner, Director of Global Equity
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford International Opportunities Fund Class A, before sales charge,
returned 16.20% for the twelve-month period ended October 31, 2004. The Fund
trailed the 19.67% return of the MSCI All-Country World Free ex U.S. Index, but
outperformed the Lipper International Large Cap Core Funds Average which
returned 14.63%.
WHY DID THE FUND PERFORM THIS WAY?
The Fund uses a three-pronged strategy that considers relative attractiveness of
countries and sectors as well as fundamental company analysis. Relative to the
benchmark, the Fund's regional allocation decisions were generally positive,
driven primarily by an underweight in Japan. Sector decisions detracted value,
driven primarily by an overweight in Technology and underweights in Materials
and Utilities, as Semiconductor stocks, in particular, were weak, while
Materials names benefited from strong demand from China and Utilities
dramatically outperformed despite the specter of rising interest rates. Good
stock selection in the Industrials and Materials sectors was offset by poor
selection in Consumer Discretionary, Financials, and Consumer Staples.
Despite underperforming the index, the Fund recorded strong absolute returns
during the period. Average returns were above 10% in seven of the ten sectors,
with Technology the only sector with negative returns. Pharmaceutical company
Elan was the top contributor to absolute Fund returns due to promising data for
its multiple sclerosis drug Antegren. Aided by record high oil prices, three
Energy companies, Total, ENI, and SK, were also strong drivers of returns during
the year. The largest detractors from absolute Fund returns were food retailer
Ahold and insurer Converium. We continue to own Ahold as we believe that
investors will move beyond prior accounting and liquidity concerns to focus on
the company's profit growth potential. Converium surprised us and the market by
announcing a large reserve charge and associated capital raising to cover
recently discovered losses on business written prior to its spin-out from Zurich
Insurance. We have eliminated Converium from the Fund.
WHAT IS THE OUTLOOK?
The global economic cycle peaked earlier this year and is now decelerating as a
result of high oil and commodity prices, tighter money, and tougher comparisons
versus year earlier figures, which had benefited from several one-off factors.
We expect that the global economy will see modest seasonal strength in the
fourth quarter but will decelerate further in 2005 as higher input costs and
interest rates take their toll. With respect to regional allocation, we remain
underweight in the U.S. but are looking to add to our holdings at the margin as
recent underperformance has improved relative valuations somewhat. Longer-term
issues, including the twin budget and trade deficits and high consumer
indebtedness, drive our continued underweight stance. We remain overweight in
Continental Europe on reasonable valuations and a delayed peaking of the cycle,
and underweight in the UK due to concerns about rising interest rates and the
housing bubble. In Japan, we maintain a positive longer-term secular view, due
to the structural improvements being made at both the corporate and government
level, but are tactically underweight due to slowing
45
- --------------------------------------------------------------------------------
economic growth, to which the market is particularly sensitive. We are
overweight in emerging markets, particularly in Asia, after their sharp
underperformance in the second quarter. From a sector point of view, two of our
largest overweights are in Health Care, which has lost its growth premium
despite better long-term growth prospects, and Technology, where valuations are
quite reasonable due to recent underperformance. We are underweight Financials,
which have outperformed and face excess capacity, particularly in the U.S., and
Materials, where many stocks are re-visiting their earlier highs on renewed
China fever.
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Belgium 2.4%
- -------------------------------------------------------------------
Canada 3.9
- -------------------------------------------------------------------
China 0.9
- -------------------------------------------------------------------
Denmark 1.0
- -------------------------------------------------------------------
Egypt 0.8
- -------------------------------------------------------------------
France 16.6
- -------------------------------------------------------------------
Germany 6.5
- -------------------------------------------------------------------
Hong Kong 1.6
- -------------------------------------------------------------------
India 1.0
- -------------------------------------------------------------------
Indonesia 0.7
- -------------------------------------------------------------------
Ireland 1.7
- -------------------------------------------------------------------
Italy 2.5
- -------------------------------------------------------------------
Japan 14.0
- -------------------------------------------------------------------
Malaysia 0.8
- -------------------------------------------------------------------
Netherlands 6.5
- -------------------------------------------------------------------
Philippines 0.6
- -------------------------------------------------------------------
Russia 0.6
- -------------------------------------------------------------------
South Korea 3.3
- -------------------------------------------------------------------
Spain 1.2
- -------------------------------------------------------------------
Sweden 2.1
- -------------------------------------------------------------------
Switzerland 5.6
- -------------------------------------------------------------------
Taiwan 2.1
- -------------------------------------------------------------------
Thailand 0.3
- -------------------------------------------------------------------
United Kingdom 17.3
- -------------------------------------------------------------------
United States 27.4
- -------------------------------------------------------------------
Other Assets & Liabilities -21.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.6%
- -------------------------------------------------------------------
Capital Goods 6.6
- -------------------------------------------------------------------
Consumer Cyclical 11.8
- -------------------------------------------------------------------
Consumer Staples 7.2
- -------------------------------------------------------------------
Energy 9.4
- -------------------------------------------------------------------
Finance 44.5
- -------------------------------------------------------------------
Health Care 9.0
- -------------------------------------------------------------------
Services 4.8
- -------------------------------------------------------------------
Technology 19.1
- -------------------------------------------------------------------
Transportation 2.1
- -------------------------------------------------------------------
Utilities 1.3
- -------------------------------------------------------------------
Other Assets & Liabilities -21.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,051.60 $ 8.56
Hypothetical @ $1,000 $1,016.79 $ 8.42
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,048.30 $12.10
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,046.50 $12.50
Hypothetical @ $1,000 $1,012.92 $12.30
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,054.90 $ 5.32
Hypothetical @ $1,000 $1,019.96 $ 5.23
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.66%, 2.35%
2.43% and 1.03% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
46
The Hartford International Small Company Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL SMALL CO FUND CITIGROUP BROAD MARKET EURO-PACIFIC
--------------------------- -----------------------------------
4/30/01 9450 10000
9781 9952
9205 9582
9044 9331
9044 9325
7825 8117
10/01 8335 8459
8901 8765
8713 8753
8580 8532
8561 8699
8968 9265
9346 9459
9619 9800
9506 9460
8920 8646
8713 8573
7833 7778
10/02 7909 7921
8155 8215
8331 8081
8142 7877
8123 7741
8094 7691
9098 8457
9827 9166
9960 9477
10357 9799
10869 10243
11570 10727
10/03 12242 11488
12323 11657
12886 12358
13211 12824
13555 13223
14022 13567
13758 13219
13454 13222
13850 13688
13109 13139
12997 13242
13179 13638
10/04 13635 14064
</Table>
<Table>
--- INTERNATIONAL SMALL CO FUND --- CITIGROUP BROAD MARKET EURO-PACIFIC <$2B INDEX
$9,450 starting value $10,000 starting value
$13,635 ending value $14,064 ending value
</Table>
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.
PORTFOLIO MANAGER
EDWARD L. MAKIN
Vice President, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Int'l Small Co A# 4/30/2001 11.39% 11.01%
- ------------------------------------------------------------------
Int'l Small Co A## 4/30/2001 5.28% 9.24%
- ------------------------------------------------------------------
Int'l Small Co B# 4/30/2001 10.62% 10.47%
- ------------------------------------------------------------------
Int'l Small Co B## 4/30/2001 5.62% 9.80%
- ------------------------------------------------------------------
Int'l Small Co C# 4/30/2001 10.63% 10.22%
- ------------------------------------------------------------------
Int'l Small Co C## 4/30/2001 8.52% 9.91%
- ------------------------------------------------------------------
Int'l Small Co Y# 4/30/2001 11.80% 11.50%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford International Small Company Fund Class A, before sales charge,
returned 11.39% for the twelve-month period ended October 31, 2004. The Fund
underperformed the 20.66% return of the benchmark, (S&P/Citigroup Euro Pacific
EMI Index since 1/1/04 and Citigroup Broad Market Euro-Pacific <$2b Index prior
to 1/1/04) and the 19.71% return of the Lipper International Small/Mid-Cap Core
peer group average.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's posture in the context of the market during much of the twelve-month
period negatively impacted performance. The Fund's long-term growth bias,
contrarian style and its propensity to take risk have not helped in a period
dominated by value stocks, momentum investing and low risk. While stock
selection has not contributed positively over the period under discussion we are
confident that, over time, stock selection, rather than sector, cap or style
rotation, will continue to be the driver of our success. Within our benchmark,
Energy, Utilities and Health Care sectors advanced the most, while Information
Technology was the only sector to decline.
Underperformance relative to the benchmark was driven by unfavorable stock
selection, primarily within the Industrials and Health Care sectors, which more
than offset strength in Information Technology and Consumer Staples. Equant
(Telecommunication Services), the greatest detractor from our relative
performance, was dragged down following earnings disappointments across its
industry. However, we feel the company is positioned well relative to the
industry and we have since added to our position. Alstom (Capital Goods), a
French power and railway equipment company, fell on restructuring issues, but
has now succeeded in securing new financing and we continue to believe in the
long term prospects of the company. Our small position in Far East
Pharmaceuticals (Pharmaceuticals & Biotechnology), a manufacturer of OTC drugs
for the Chinese market, declined substantially and halted trading on news of a
legal matter involving the Chairman. We await developments and believe that the
stock will recover when it re-opens (the factory is still running, it is
believed the company's cash is still sitting in the company's bank account, and
the company's end-markets are still there) but this is a salutary lesson for
investors in the Asian markets.
While our investment process is bottom-up, the Fund's sector allocations also
detracted from relative performance during the twelve-month period.
Specifically, underweight positions in the Utilities and Materials sectors,
which were among the top performing sectors of our benchmark during the annual
period, were a disadvantage.
The Fund's benchmark-relative performance was positively impacted by stock
selection in the Information Technology and Consumer Staples sectors. On an
absolute basis, several of our Consumer Discretionary and Financials stocks were
the leading contributors to performance. EMI Group (Media), a U.K. based music
recording and publishing company, was a standout performer, which we later
removed from the Fund. Banca Popolare Milan (Banks) and Korea Exchange Bank
(Banks) were also additive to the Fund's advance, and remained in the Fund as of
the end of the period.
WHAT IS THE OUTLOOK?
The second quarter of 2004 marked the peak in world GDP growth. Thus far the
slowdown has been noticeable only in select countries, but we expect it to
spread across all regions next year. Signs of moderating economic growth has
caused investors to reassess profit forecasts, but at the same time, has reduced
some of the upward pressure on interest rates. We expect a period of
decelerating demand from China, higher oil supply in the
47
- --------------------------------------------------------------------------------
medium-term, leading to easier prices, and a return to stable growth in the
global economy.
As a result of our bottom-up stock selection, we retain greater than benchmark
weights in Industrials; in Information Technology, where we are beginning to
find attractive valuations; and Health Care, where our fundamental analysis
continues to find companies with sustainable competitive advantages. We remain
underweight Consumer Discretionary, Financials and Materials.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 7.7%
- -------------------------------------------------------------------
Capital Goods 8.8
- -------------------------------------------------------------------
Consumer Cyclical 6.9
- -------------------------------------------------------------------
Consumer Staples 7.1
- -------------------------------------------------------------------
Energy 1.4
- -------------------------------------------------------------------
Finance 40.3
- -------------------------------------------------------------------
Health Care 9.1
- -------------------------------------------------------------------
Services 23.9
- -------------------------------------------------------------------
Technology 14.9
- -------------------------------------------------------------------
Transportation 5.3
- -------------------------------------------------------------------
Utilities 0.3
- -------------------------------------------------------------------
Other Assets & Liabilities -25.7
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 1.3%
- -------------------------------------------------------------------
Cayman Islands 0.0
- -------------------------------------------------------------------
China 1.5
- -------------------------------------------------------------------
Denmark 2.7
- -------------------------------------------------------------------
Finland 1.0
- -------------------------------------------------------------------
France 11.8
- -------------------------------------------------------------------
Germany 4.2
- -------------------------------------------------------------------
Greece 2.6
- -------------------------------------------------------------------
Hong Kong 1.1
- -------------------------------------------------------------------
Italy 6.6
- -------------------------------------------------------------------
Japan 26.8
- -------------------------------------------------------------------
Liechtenstein 0.5
- -------------------------------------------------------------------
Mexico 1.0
- -------------------------------------------------------------------
Netherlands 5.4
- -------------------------------------------------------------------
New Zealand 1.8
- -------------------------------------------------------------------
Singapore 1.5
- -------------------------------------------------------------------
South Korea 2.1
- -------------------------------------------------------------------
Spain 0.9
- -------------------------------------------------------------------
Sweden 3.4
- -------------------------------------------------------------------
Switzerland 3.1
- -------------------------------------------------------------------
United Kingdom 21.9
- -------------------------------------------------------------------
United States 24.5
- -------------------------------------------------------------------
Other Assets & Liabilities -25.7
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $ 991.20 $ 8.26
Hypothetical @ $1,000 $1,016.84 $ 8.36
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $ 987.30 $11.74
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $ 988.00 $11.74
Hypothetical @ $1,000 $1,013.32 $11.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $ 992.70 $ 6.01
Hypothetical @ $1,000 $1,019.10 $ 6.09
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.65%, 2.35%,
2.35% and 1.20% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
48
The Hartford MidCap Fund*
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(3) 12/31/97 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MIDCAP FUND S & P MIDCAP 400 INDEX
----------- ----------------------
12/30/97 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 12347
14996 12995
17461 13767
17412 13379
20132 14316
21360 15514
20082 14972
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 13135
18813 14088
20373 15255
20495 15449
20674 15998
21620 16722
21164 16467
10/03 22936 17712
23360 18328
23995 18637
24542 19042
24766 19499
24632 19581
23952 18938
24276 19331
24844 19771
23629 18848
23584 18799
24676 19355
10/04 25199 19665
</Table>
<Table>
--- MIDCAP FUND --- S & P MIDCAP 400 INDEX
$9,450 starting value $10,000 starting value
$25,199 ending value $19,665 ending value
</Table>
S&P MIDCAP 400 INDEX is an unmanaged index measuring the performance of the
mid-size company segment of the U.S. market.
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.
PORTFOLIO MANAGER
PHILLIP H. PERELMUTER
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------
MidCap A# 12/31/1997 9.86% 12.10% 15.41%
- ------------------------------------------------------------
MidCap A## 12/31/1997 3.81% 10.83% 14.47%
- ------------------------------------------------------------
MidCap B# 12/31/1997 9.10% 11.29% 14.60%
- ------------------------------------------------------------
MidCap B## 12/31/1997 4.10% 11.03% 14.60%
- ------------------------------------------------------------
MidCap C# 12/31/1997 9.18% 11.36% 14.65%
- ------------------------------------------------------------
MidCap C## 12/31/1997 7.09% 11.14% 14.49%
- ------------------------------------------------------------
MidCap Y# 12/31/1997 10.47% 12.69% 15.98%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
* 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.
(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 above due to differences in
the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford MidCap Fund Class A before sales charge, returned 9.86% for the
twelve-month period ended October 31, 2004, underperforming both the S&P MidCap
400 Index return of 11.04% and the Lipper Mid-Cap Core Average return of 10.53%.
WHY DID THE FUND PERFORM THIS WAY?
Equity markets continued their ascent throughout the trailing twelve-months,
although the climb was somewhat volatile. During the period, all market cap
styles posted gains, with the performance of small cap stocks exceeding mid cap
and large cap stocks. Within the S&P MidCap 400 Index the Energy, Materials and
Utilities sectors were the top performers, while Information Technology was the
only sector to post a negative return.
The Fund was hurt by disappointing performance from a few stocks in the
Industrials and Health Care sectors. Within Industrials, postsecondary educator
Career Education fell on litigation and regulatory concerns, and AMR was
pressured by competition from low-cost carriers and rising jet fuel costs. These
two stocks were no longer held as of the end of the period. Health Care stocks
Watson Pharmaceuticals and King Pharmaceuticals both fell during the period.
Watson noted sluggish sales of its branded products, and King posted weak
earnings due to an inventory draw down and fears of generic competition. The
Fund also generally held an overweight to the Information Technology sector
where results from select stocks such as KLA-Tencor, Red Hat and BEA Systems
were unfavorable. KLA-Tencor and BEA Systems were no longer held as of the end
of the period.
Stock selection overall, and in Information Technology in particular, was
additive to relative performance. Within Information Technology, strong
performers included VeriSign, Symantec and Research in Motion. VeriSign, the
provider of secure digital commerce and communications, performed well due to
continued strength in its internet registration business and better-than-
expected contribution from its acquisition of wireless content firm Jamba!.
Symantec, a provider of content and network security software, rose on favorable
demand for its anti-virus software. Research in Motion benefited from growth in
its subscriber base and the introduction of an appealing new messaging and
communication device that closely resembles a wireless handheld phone. In
addition, Energy holdings XTO Energy and EOG Resources advanced on robust
earnings stemming from relatively high natural gas prices.
WHAT IS THE OUTLOOK?
As we approach the end of 2004, the macro environment appears mixed. On one
hand, GDP was recently revised upward, manufacturing indicators continue to show
strength, and interest rates are relatively low. On the other hand, oil prices
are hovering
49
- --------------------------------------------------------------------------------
around $45 per barrel, employment growth remains somewhat sluggish, and the
Federal Reserve continues to raise short-term interest rates. As of the end of
the period, the Fund was overweight the Information Technology,
Telecommunication Services, and Industrials sectors and underweight the Consumer
Staples and Utilities sectors.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.8%
- -------------------------------------------------------------------
Capital Goods 3.6
- -------------------------------------------------------------------
Consumer Cyclical 16.5
- -------------------------------------------------------------------
Consumer Staples 1.0
- -------------------------------------------------------------------
Energy 9.3
- -------------------------------------------------------------------
Finance 34.7
- -------------------------------------------------------------------
Health Care 7.8
- -------------------------------------------------------------------
Services 11.1
- -------------------------------------------------------------------
Technology 17.7
- -------------------------------------------------------------------
Utilities 2.9
- -------------------------------------------------------------------
Other Assets & Liabilities -10.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,052.10 $ 6.76
Hypothetical @ $1,000 $1,018.55 $ 6.65
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,048.30 $10.55
Hypothetical @ $1,000 $1,014.83 $10.38
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,048.70 $10.14
Hypothetical @ $1,000 $1,015.23 $ 9.98
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,054.90 $ 4.18
Hypothetical @ $1,000 $1,021.06 $ 4.12
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.31%, 2.05%,
1.97% and 0.81% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
50
The Hartford MidCap Value Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/04
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
11077 13313
11568 13836
11748 14285
11993 14575
11964 14691
11540 13921
11757 14201
12229 14765
11700 14170
11501 14348
11917 14802
10/04 12182 15070
</Table>
<Table>
--- MIDCAP VALUE FUND --- RUSSELL 2500 VALUE INDEX
$9,450 starting value $10,000 starting value
$12,182 ending value $15,070 ending value
</Table>
RUSSELL 2500 VALUE INDEX measures the performance of those Russell 2500 Index
companies with lower price-to-book ratios and lower forecasted growth values.
PORTFOLIO MANAGER
JAMES N. MORDY
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ----------------------------------------------------------------
MidCap Value A# 4/30/2001 13.87% 7.50%
- ----------------------------------------------------------------
MidCap Value A## 4/30/2001 7.60% 5.79%
- ----------------------------------------------------------------
MidCap Value B# 4/30/2001 13.22% 6.78%
- ----------------------------------------------------------------
MidCap Value B## 4/30/2001 8.22% 6.05%
- ----------------------------------------------------------------
MidCap Value C# 4/30/2001 13.12% 6.78%
- ----------------------------------------------------------------
MidCap Value C## 4/30/2001 10.99% 6.48%
- ----------------------------------------------------------------
MidCap Value Y# 4/30/2001 14.40% 8.02%
- ----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
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.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the 12-month period ending October 31, 2004, The Hartford MidCap Value Fund
Class A, before sales charge, returned 13.87% trailing both the Russell 2500
Value Index return of 17.81% and the Lipper Mid Cap Value peer group return of
15.75%.
WHY DID THE FUND PERFORM THIS WAY?
During the period, U.S. equities posted good positive returns supporting the
Fund's positive, absolute return for the period. Both mid cap and small cap
stocks out performed larger cap stocks during the period. Value stocks continued
to outperform growth during the period, driven by the relative strength of
sectors like Utilities, Industrials, Materials and Energy, while the Information
Technology sector lagged.
The Fund has a somewhat higher average market cap than the benchmark. This
larger cap-bias hindered the Fund's relative performance. Additionally, poor
stock selection within Financials, Information Technology, Industrials and
Consumer Discretionary also detracted from performance. We moved to an
overweight position in Technology earlier in the year, buying into weakness in
semiconductor and semiconductor capital equipment stocks. We were clearly too
early, as worldwide demand for electronics, while still healthy, has cooled a
bit. Short-sighted investors are treating the stocks as if we face a downturn as
severe as that which followed the bursting of the tech bubble four years ago. It
is our view that the industry's quick response to pare inventories ensures a
relatively short correction and an extended up-cycle over the next couple of
years. We have maintained our overweight in the group as the upside from current
levels should be very rewarding. Within Financials, Converium, a European
re-insurer announced significant U.S. reserve shortfalls which led to a very
dilutive equity offering and a loss of confidence by investors. The position was
eliminated from the portfolio. Additionally, we were hurt by continued very
strong performance in REITs (where we are significantly underweight relative to
the 13% share of our benchmark Index). This group is significantly overvalued by
our standards and is ripe for correction.
Partially offsetting the under performance was strong stock selection within
Consumer Staples, Utilities, Materials and Telecommunications. While the Fund
does not employ a "top-down" focus, at the margin, the Fund's overweight in
Energy also added to performance. The top three contributors to returns were IMC
Global (Materials), Bunge (Consumer Staples) and TXU (Utilities). Bunge and IMC
Global (now renamed Mosaic Company following a merger with Cargill's fertilizer
business) were held in the Fund at period end. TXU was sold during the period.
WHAT IS THE OUTLOOK?
Economic growth has clearly cooled from the robust pace of the first half of
2004. Job growth remains subdued, consumer stimulus from tax relief and mortgage
refinancing is behind us, corporate profit growth and spending have probably
peaked, China has
51
- --------------------------------------------------------------------------------
applied some brakes to their economy, and high energy costs are a drag globally.
We look for GDP growth of around 3% going forward, but this could be reduced to
2.5% if oil prices remain near $50 per barrel. We do look for energy costs to
begin easing, and with election uncertainties behind us, business and consumer
confidence could get a lift.
In light of this outlook, we have taken some profits in the strong Energy
sector, bought into the continued Technology weakness at the margin, and bumped
up our Health Care weighting having uncovered some bargains in the months
leading up to the Presidential election. The Fund is overweight, relative to the
benchmark, in seven out of ten sectors, most notably Technology, Consumer
Discretionary and Materials. The Fund's most significant underweight continues
to be Financials, due to our limited exposure to REITs.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 11.5%
- -------------------------------------------------------------------
Capital Goods 8.7
- -------------------------------------------------------------------
Consumer Cyclical 12.1
- -------------------------------------------------------------------
Consumer Staples 4.4
- -------------------------------------------------------------------
Energy 5.1
- -------------------------------------------------------------------
Finance 23.5
- -------------------------------------------------------------------
Health Care 4.8
- -------------------------------------------------------------------
Services 6.6
- -------------------------------------------------------------------
Technology 14.2
- -------------------------------------------------------------------
Transportation 5.5
- -------------------------------------------------------------------
Utilities 3.7
- -------------------------------------------------------------------
Other Assets & Liabilities -0.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,055.70 $ 7.49
Hypothetical @ $1,000 $1,017.85 $ 7.35
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,052.70 $11.09
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,051.80 $11.09
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,057.30 $ 4.76
Hypothetical @ $1,000 $1,020.51 $ 4.67
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.45%, 2.15%,
2.15% and 0.92% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
52
The Hartford Short Duration Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
TO
PROVIDE
A HIGH
LEVEL
OF
INCOME.
PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/04
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
10131 10406
10209 10485
10255 10527
10319 10609
10365 10667
10242 10495
10219 10468
10236 10482
10283 10542
10356 10663
10345 10663
10/04 10376 10713
</Table>
<Table>
--- SHORT DURATION FUND --- LEHMAN BROTHERS U.S. GOVERNMENT/CREDIT
$9,700 starting value 1-5 YEAR INDEX
$10,376 ending value $10,000 starting value
$10,713 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Short Duration A# 10/31/2002 2.40% 3.43%
- ------------------------------------------------------------------
Short Duration A## 10/31/2002 -0.64% 1.87%
- ------------------------------------------------------------------
Short Duration B# 10/31/2002 1.68% 2.72%
- ------------------------------------------------------------------
Short Duration B## 10/31/2002 -3.29% 0.75%
- ------------------------------------------------------------------
Short Duration C# 10/31/2002 1.68% 2.72%
- ------------------------------------------------------------------
Short Duration C## 10/31/2002 -0.34% 2.21%
- ------------------------------------------------------------------
Short Duration Y# 11/28/2003 NA 2.62%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
N/A Not Applicable.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGERS
ROBERT CRUSHA, CFA
Vice President
BRIAN DIRGINS
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the period ended October 31, 2004, The Hartford Short Duration Fund Class A
placed in the 1st quartile with a total return, before sales charge, of 2.40%
versus a return of 1.89% for the Lipper Short Intermediate Investment Grade
Funds and 2.95% for the Lehman Brothers U.S. Government/Credit 1-5 Year Index.
WHY DID THE FUND PERFORM THIS WAY?
During the first three quarters of 2004, the Federal Reserve increased the Fed
Funds rate three times to 1.75% and then an additional 25 basis points in early
November 2004. We reduced the duration of the Fund from 2.3 years at the end of
October 2003 to 1.8 years at the end of October 2004. Duration was reduced in
anticipation of the rate hikes and as a result of our view that given the
improving economic fundamentals, we were not being compensated enough for buying
longer dated paper.
Over the course of the year we reduced our corporate exposure from 63% to 38% as
we saw better opportunities in asset backed securities and commercial mortgage
backed securities. Asset backed securities were increased from 3% to 23% and
commercial mortgage backed securities from 3% to 14%. We increased allocations
to these sectors due to stable credit quality, muted "headline risk", attractive
spreads and our competitive advantage emanating from our experience within these
sectors. We also traded in and out of Treasury Inflation Protected Securities
(TIPS) over the year to capture the attractive seasonal accruals that they offer
investors. Exposure to Treasurys increased to 15% which, along with asset backed
and commercial mortgage backed securities, had the effect of upgrading the
portfolio to Aa3/AA-.
WHAT IS THE OUTLOOK?
Growth in the U.S. economy has been steady, but slightly below expectations over
recent months. Our expectations are for the economy to move out of this "soft
patch" in the near term to a more expansionary trajectory. We are seeing
strength in manufacturing and improvement on the hiring front. The surge in
inflation measures, which we experienced in the spring, have abated over the
summer months, although energy prices are still a wildcard. We foresee higher
interest rates, particularly in the short end of the yield curve. Given this
backdrop, we expect to maintain the portfolio's effective duration at or close
to it's current level. Our focus over the near-term will be sourcing attractive
income producing securities to enhance the Fund's yield. We remain positive on
the spread sectors and will look for attractive
53
- --------------------------------------------------------------------------------
opportunities to replace lower yielding positions within the portfolio.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 47.0%
- -------------------------------------------------------------------
AA 3.3
- -------------------------------------------------------------------
A 19.8
- -------------------------------------------------------------------
BBB 29.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.7%
- -------------------------------------------------------------------
Capital Goods 1.4
- -------------------------------------------------------------------
Consumer Cyclical 5.1
- -------------------------------------------------------------------
Consumer Staples 1.7
- -------------------------------------------------------------------
Direct Federal Obligations 15.6
- -------------------------------------------------------------------
Energy 2.0
- -------------------------------------------------------------------
Finance 52.2
- -------------------------------------------------------------------
Health Care 0.4
- -------------------------------------------------------------------
Services 4.9
- -------------------------------------------------------------------
Technology 5.0
- -------------------------------------------------------------------
Transportation 1.0
- -------------------------------------------------------------------
Utilities 2.5
- -------------------------------------------------------------------
U.S. Government Agencies 6.6
- -------------------------------------------------------------------
Other Assets & Liabilities -1.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,013.20 $4.81
Hypothetical @ $1,000 $1,020.36 $4.82
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,009.60 $8.33
Hypothetical @ $1,000 $1,016.84 $8.36
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,009.60 $8.33
Hypothetical @ $1,000 $1,016.84 $8.36
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,013.80 $3.04
Hypothetical @ $1,000 $1,022.12 $3.05
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.95%, 1.65%,
1.65% and 0.60% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
54
The Hartford Small Company Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
GROWTH
OF
CAPITAL.
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/04
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
18237 11807
18573 12427
19317 12482
19342 12463
19716 12522
18696 11893
19031 12130
19454 12534
17851 11408
17079 11163
18408 11781
10/04 18743 12067
</Table>
<Table>
--- SMALL COMPANY FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$18,743 ending value $12,067 ending value
</Table>
RUSSELL 2000 GROWTH INDEX is an unmanaged index of those Russell 2000 Index
growth companies with higher price-to-book ratios and higher forecasted growth
values.
The 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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ----------------------------------------------------------
Small Co A# 7/22/1996 5.67% 0.91% 8.63%
- ----------------------------------------------------------
Small Co A## 7/22/1996 -0.13% -0.23% 7.89%
- ----------------------------------------------------------
Small Co B# 7/22/1996 4.88% 0.19% NA*
- ----------------------------------------------------------
Small Co B## 7/22/1996 -0.12% -0.16% NA*
- ----------------------------------------------------------
Small Co C# 7/22/1996 4.96% 0.22% 7.90%
- ----------------------------------------------------------
Small Co C## 7/22/1996 2.91% 0.01% 7.77%
- ----------------------------------------------------------
Small Co Y# 7/22/1996 6.14% 1.38% 9.14%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
STEVEN C. ANGELI, CFA
Senior Vice President, Partner, Portfolio Manager
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Small Company Fund Class A, before sales charge, returned 5.67% for
the twelve-month period ended October 31, 2004. The Fund's return exceeded the
5.53% return of the Russell 2000 Growth Index and the 2.52% return of the Lipper
Small Cap Growth peer group average.
WHY DID THE FUND PERFORM THIS WAY?
All major equity indexes posted positive returns over the twelve month period.
Small cap stocks slightly outperformed large cap stocks and value stocks
exceeded growth stocks by a wide margin. Within the Russell 2000 Growth Index,
nine of ten sectors advanced. Energy, Financials and Industrials were the
strongest performing sectors. Information Technology was the only sector to
decline during the twelve month period, while Utilities and Consumer
Discretionary were relatively weak.
Stock selection within Information Technology, Telecommunication Services and
Consumer Discretionary favorably impacted positive benchmark-relative returns.
Key contributors to performance were American Tower (Telecommunication
Services), Sirius Satellite (Media) and Red Hat (Software & Services). American
Tower, through its broad network of towers, has been successful at addressing
the needs of wireless service providers and radio and television broadcast
companies on a national basis. Sirius Satellite, a provider of satellite radio
service, benefited from growth of its subscriber base. Lastly, Red Hat benefited
from greater investor focus on its open source software and operating system,
Linux. Both stocks remained in the portfolio at the end of the period.
While the Fund's sector allocations are a fallout of our bottom-up investment
process, we also benefited from sector positioning during the period.
Specifically, underweight positions in the poor performing Information
Technology and Health Care sectors, as well as overweight positions in
Telecommunications Services and Industrials were additive to the Fund's return.
Stock selection in Health Care, Financials and Materials sectors detracted from
the Fund's benchmark-relative return, as did an underweight position in the
strong performing Financials sector. On an absolute basis, the largest detractor
over the twelve month period was Sierra Wireless (Technology Hardware &
Equipment), which we held at the end of the period. Dobson Communication
(Telecommunication Services) and Harmonic (Technology Hardware & Equipment),
both of which we eliminated from the portfolio, also subtracted from our return.
WHAT IS THE OUTLOOK?
While confident in the economy's direction, we believe the recovery has been
hampered by inflationary pressures throughout the manufacturing supply chain. As
a result, decelerating profit growth and weak employment trends are hindering
consumption.
55
- --------------------------------------------------------------------------------
While we do not foresee a doomsday scenario, we might see lower-than-expected
earnings growth, especially in the Information Technology and Consumer
Discretionary sectors. Therefore, we will continue to focus on individual stock
selection across all sectors.
In this environment, we continue to underweight Information Technology stocks,
while maintaining a modest overweight in the Consumer Discretionary sector. The
Fund is positioned with the greatest overweight in Telecommunication Services
and Industrials stocks relative to the Russell 2000 Growth Index.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.9%
- -------------------------------------------------------------------
Capital Goods 1.9
- -------------------------------------------------------------------
Consumer Cyclical 13.9
- -------------------------------------------------------------------
Consumer Staples 1.1
- -------------------------------------------------------------------
Energy 3.3
- -------------------------------------------------------------------
Finance 32.8
- -------------------------------------------------------------------
Health Care 11.9
- -------------------------------------------------------------------
Services 16.1
- -------------------------------------------------------------------
Technology 24.7
- -------------------------------------------------------------------
Transportation 9.8
- -------------------------------------------------------------------
Utilities 0.9
- -------------------------------------------------------------------
Other Assets & Liabilities -22.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,002.70 $ 7.30
Hypothetical @ $1,000 $1,017.85 $ 7.35
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $ 998.60 $10.80
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $ 999.30 $10.80
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,004.50 $ 4.89
Hypothetical @ $1,000 $1,020.26 $ 4.93
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.45%, 2.15%,
2.15% and 0.97% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
56
The Hartford SmallCap Growth Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
TO
MAXIMIZE
SHORT-
AND
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 10/31/94 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX
-------------------- -------------------------
10/31/94 9450 10000
9212 9595
9384 9821
9302 9621
9737 10066
9917 10359
10085 10515
10143 10653
11065 11387
12443 12274
12574 12425
13246 12681
10/95 12730 12057
13029 12588
12795 12868
12580 12761
13414 13343
13749 13607
15013 14652
15748 15404
14720 14403
13224 12644
14360 13580
15344 14279
10/96 14253 13664
14249 14043
13681 14317
13469 14675
11848 13789
10806 12815
10543 12667
12522 14570
12825 15064
13577 15836
13227 16311
14113 17612
10/97 13465 16554
13512 16160
13888 16170
13426 15955
15021 17363
15985 18093
16106 18203
15280 16880
15898 17052
14615 15628
11420 12021
12211 13240
10/98 13007 13931
14649 15012
16645 16371
17828 17107
15571 15542
16697 16095
17319 17517
17445 17545
19861 18469
20118 17898
20587 17229
21552 17562
10/99 24734 18011
27804 19915
35193 23424
35877 23206
50095 28606
44824 25600
37531 23014
32318 20998
40052 23711
37082 21679
44434 23960
41920 22769
10/00 38111 20920
27140 17121
30282 18169
30861 19639
25063 16946
22396 15406
24432 17291
24412 17693
25342 18176
23492 16625
21952 15586
17870 13071
10/01 19678 14328
21906 15524
23629 16491
22852 15904
21581 14875
23808 16168
22789 15819
21192 14893
19217 13630
16611 11535
16527 11530
15151 10697
10/02 16359 11238
18197 12352
16758 11500
16201 11187
15466 10888
15644 11053
17126 12098
19143 13462
19637 13722
20940 14759
22400 15552
22411 15158
10/03 24071 16468
24670 17005
25016 17081
26508 17978
26466 17951
26256 18035
25100 17130
25363 17470
26193 18052
24060 16431
23745 16078
25048 16967
10/04 25846 17379
</Table>
<Table>
--- SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$25,846 ending value $17,379 ending value
</Table>
RUSSELL 2000 GROWTH INDEX is an unmanaged index of those Russell 2000 Index
growth companies with higher price-to-book ratios and higher forecasted growth
values.
The 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.
PORTFOLIO MANAGERS
DAVID J. ELLIOTT, CFA
Vice President, Portfolio Manager
JAMES A. RULLO, CFA
Senior Vice President, Partner, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1.2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- --------------------------------------------------------------------
SmallCap A# 1/4/1988 7.38% 0.88% 10.58% 12.43%
- --------------------------------------------------------------------
SmallCap A## 1/4/1988 1.48% -0.25% 9.96% 12.06%
- --------------------------------------------------------------------
SmallCap B# 11/14/1994 6.67% 0.28% NA* NA*
- --------------------------------------------------------------------
SmallCap B## 11/14/1994 1.67% 0.07% NA* NA*
- --------------------------------------------------------------------
SmallCap C# 11/14/1994 6.67% 0.25% NA 10.15%
- --------------------------------------------------------------------
SmallCap C## 11/14/1994 4.60% -0.15% NA 10.04%
- --------------------------------------------------------------------
SmallCap H# 11/14/1994 6.85% 0.31% NA* NA*
- --------------------------------------------------------------------
SmallCap H## 11/14/1994 2.85% 0.10% NA* NA*
- --------------------------------------------------------------------
SmallCap L# 1/4/1988 7.42% 0.88% 10.58% 12.43%
- --------------------------------------------------------------------
SmallCap L## 1/4/1988 2.33% -0.09% 10.05% 12.11%
- --------------------------------------------------------------------
SmallCap M# 11/14/1994 6.86% 0.33% NA* NA*
- --------------------------------------------------------------------
SmallCap M## 11/14/1994 2.86% 0.11% NA* NA*
- --------------------------------------------------------------------
SmallCap N# 11/14/1994 6.85% 0.31% NA 10.18%
- --------------------------------------------------------------------
SmallCap N## 11/14/1994 5.85% 0.31% NA 10.18%
- --------------------------------------------------------------------
SmallCap Y# 2/19/2002 7.89% NA NA 7.00%
- --------------------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, H, L, M, N, Y
and Z shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
Hartford SmallCap Growth Fund Class A, before sales charge, returned 7.38% for
the twelve-month period ended October 31, 2004. The Fund outperformed the 5.53%
return of the Russell 2000 Growth Index. Performance trailed the 12.93% return
of the Lipper Small Cap Core peer group average (the Fund's current peer group)
and exceeded the 2.52% return of the Lipper Small Cap Growth peer group average.
WHY DID THE FUND PERFORM THIS WAY?
The U.S. economy continued to demonstrate underlying strength throughout the
twelve-month period, with an encouraging turn in employment and increased merger
activity. Although higher energy prices, inflation, the geopolitical environment
and a Federal Reserve telegraphing higher policy rates weighed on investors,
indexes propelled higher during the twelve-month period. Small cap stocks
continued to lead large cap stocks, as the Russell 2000 Index gained 11.7%
compared to the Russell 1000 Index gain of 9.3%. Value stocks, as measured by
the Russell 2000 Value Index advanced 15.5% during the period, outperforming the
of 5.5% rise in the Russell 2000 Growth Index. Within the Russell 2000 Growth
Index, Energy and Materials sectors appreciated the most, while Information
Technology was the only sector to decline.
Stock selection, primarily within the Information Technology and Industrials
sectors, drove the Fund's outperformance relative to the benchmark. Leading
contributors to absolute performance during the twelve-month period were Incyte
Genomics (Pharmaceuticals & Biotechnology), FLIR Systems (Technology Hardware &
Equipment) and Cytyc Corporation (Health Care Equipment & Services). Incyte
Genomics was favorably impacted by the prospects for its drug for patients with
HIV infections, Reverset. FLIR Systems, a manufacturer of thermal imaging
products, benefited from revenue and earnings growth. At the end of the annual
period, we maintained our position in Incyte Genomics, but removed FLIR Systems
and Cytyc from the Fund.
Stock selection within Telecommunication Services and Financials were two areas
of weakness relative to the benchmark during the twelve month period. On an
absolute basis, the decline of Primus Telecommunications (Telecommunication
Services), ESS Technology (Semiconductors & Semiconductor Equipment) and
Ciphergen Biosystems (Pharmaceutical & Biotechnology) were the leading
detractors from performance. The share price of Primus, a global provider
telecommunication services, declined when revenue and profitability growth fell
short of expectations. The stock was eliminated from the portfolio as of the end
of the period. We continued to hold ESS Technology and Ciphergen Biosystems.
57
- --------------------------------------------------------------------------------
The Fund's sector positioning relative to the Russell 2000 Growth Index also
detracted from benchmark-relative returns. Specifically, a modest overweight in
the worst performing sector, Information Technology, and a modest underweight in
two of the best performing sectors, Energy and Industrials, detracted from
relative performance.
WHAT IS THE OUTLOOK?
The global expansion has started to moderate. We anticipate a period of slower
growth in the U.S. as consumption, investment, and exports show signs of
deceleration from the world GDP growth highs attained in the second quarter.
Although consumption spending was previously enhanced in the post-bubble period
by tax cuts and cash-outs from mortgage refinancing, future consumer
expenditures will be determined by employment gains, which are forecast to
improve steadily. We remain focused on leveraging our research resources to
build a diversified portfolio that emphasizes stock selection.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.3%
- -------------------------------------------------------------------
Capital Goods 2.9
- -------------------------------------------------------------------
Consumer Cyclical 11.4
- -------------------------------------------------------------------
Energy 3.7
- -------------------------------------------------------------------
Finance 19.1
- -------------------------------------------------------------------
Health Care 16.1
- -------------------------------------------------------------------
Futures Contracts 0.6
- -------------------------------------------------------------------
Services 18.6
- -------------------------------------------------------------------
Technology 25.4
- -------------------------------------------------------------------
Transportation 4.2
- -------------------------------------------------------------------
Utilities 0.7
- -------------------------------------------------------------------
Other Assets & Liabilities -8.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,029.70 $ 7.40
Hypothetical @ $1,000 $1,017.85 $ 7.35
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,026.60 $10.95
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,026.60 $10.95
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,027.00 $10.09
Hypothetical @ $1,000 $1,015.18 $10.03
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,029.70 $ 7.30
Hypothetical @ $1,000 $1,017.95 $ 7.25
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,027.50 $10.09
Hypothetical @ $1,000 $1,015.18 $10.03
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,027.50 $10.09
Hypothetical @ $1,000 $1,015.18 $10.03
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,032.40 $ 5.26
Hypothetical @ $1,000 $1,019.96 $ 5.23
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.45%, 2.15%,
2.15%, 1.98%, 1.43%, 1.98%, 1.98% and 1.03% for classes A, B, C, H, L, M, N
and Y, respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
58
The Hartford Stock Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
GROWTH
OF
CAPITAL,
WITH
INCOME
AS A
SECONDARY
CONSIDERATION.
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/04
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
16918 18694
17911 19674
17994 20036
18107 20314
17776 20008
17527 19693
17755 19963
18138 20351
17465 19677
17465 19756
17383 19969
10/04 17341 20275
</Table>
<Table>
--- STOCK FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$17,341 ending value $20,275 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -------------------------------------------------------
Stock A# 7/22/1996 3.39% -4.01% 7.60%
- -------------------------------------------------------
Stock A## 7/22/1996 -2.27% -5.08% 6.87%
- -------------------------------------------------------
Stock B# 7/22/1996 2.67% -4.69% NA*
- -------------------------------------------------------
Stock B## 7/22/1996 -2.33% -5.05% NA*
- -------------------------------------------------------
Stock C# 7/22/1996 2.79% -4.60% 6.90%
- -------------------------------------------------------
Stock C## 7/22/1996 0.76% -4.79% 6.77%
- -------------------------------------------------------
Stock Y# 7/22/1996 4.04% -3.48% 8.15%
- -------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
RAND L. ALEXANDER, CFA
Senior Vice President, Partner, Portfolio Manager
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Stock Fund, Class A, before sales charge, returned 3.39% for the
twelve-month period ended October 31, 2004, trailing the average return of 5.98%
by its Lipper Large Cap Core peer group, and the 9.42% return of its benchmark,
the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
The strength of the U.S. equity markets continued at the end of 2003 and into
the early part of 2004. U.S. markets, however, experienced volatility during the
middle part of 2004 due to moderating economic growth, uncertainty about the
pace of Federal Reserve interest rate increases, higher energy prices, and
concern about the war in Iraq and terrorism.
The best performing sectors of the S&P 500 index were Energy, Industrials,
Utilities, and Telecommunications. The Fund was positioned to take advantage of
the sharp increase in oil prices by maintaining a higher weighting in Energy
stocks than the benchmark during the year. Two of the strongest contributors to
absolute returns were Exxon Mobil and Chevron Texaco. Among Industrials, General
Electric was a top contributor to the Fund. The Fund's performance, however, was
hindered by having no exposure to the strong performing Utilities and
Telecommunications sectors. Investors favored these defensive companies, despite
their limited long term growth prospects, for their higher yields during an
uncertain stock market and interest rate environment.
The Fund's positions in Information Technology and Health Care detracted from
relative performance during the year. The Fund was overweight Information
Technology, which was the worst performing sector in the S&P 500 during the
period. Intel (Semiconductors & Semiconductor Equipment) was the largest
detractor from absolute returns. When economic growth moderated during the
middle of the year, inventories at semiconductor companies built up due to a
slowdown in demand from the end consumer. We think growth will resume when the
supply chain settles, and we continue to own Intel. In Health Care, regulatory
and pricing concerns pulled down large pharmaceutical stocks. Eli Lilly and
Pfizer were among the larger detractors from the Fund's performance during the
period, but we continue to own each stock based on attractive valuations and our
view that sentiment will improve in the wake of the U.S. election. Stock
selection in Financials generally detracted from relative returns. Marsh &
McLennan (Insurance) was a significant detractor, declining after the New York
Attorney General announced an investigation into business practices at the firm.
On the positive side, top contributor Bank of America benefited from credit
gains and realized synergies from the Fleet acquisition.
59
- --------------------------------------------------------------------------------
WHAT IS THE OUTLOOK?
Our investment positioning continues to have a cyclical bias with on-going
overweights in Industrials and Technology. We believe economic growth is
sustainable and are seeking more exposure to business and industrial spending,
rather than the consumer driven areas of the economy. We have experienced
another year of large cap underperformance relative to mid and small cap stocks
and we think large caps stocks are well-positioned to outperform. We see a
series of supporting factors: a weak dollar benefits large multi-nationals who
export goods, dividends will be increasingly important, and valuations for
industry leaders are extremely attractive relative to historical levels.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.2%
- -------------------------------------------------------------------
Capital Goods 4.4
- -------------------------------------------------------------------
Consumer Cyclical 7.5
- -------------------------------------------------------------------
Consumer Staples 9.8
- -------------------------------------------------------------------
Energy 8.5
- -------------------------------------------------------------------
Finance 20.1
- -------------------------------------------------------------------
Health Care 14.2
- -------------------------------------------------------------------
Services 4.8
- -------------------------------------------------------------------
Technology 25.2
- -------------------------------------------------------------------
Other Assets & Liabilities -0.7
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $ 989.40 $ 7.30
Hypothetical @ $1,000 $1,017.80 $ 7.41
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $ 985.60 $11.23
Hypothetical @ $1,000 $1,013.83 $11.39
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $ 986.30 $10.29
Hypothetical @ $1,000 $1,014.78 $10.43
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $ 992.60 $ 3.86
Hypothetical @ $1,000 $1,021.27 $ 3.91
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.46%, 2.25%,
2.06% and 0.77% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
60
The Hartford Tax-Free California Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
TO
PROVIDE
CURRENT
INCOME
EXEMPT
FROM
BOTH
FEDERAL
AND
CALIFORNIA
INCOME
TAX.
PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/04
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 10152
9540 10234
9869 10529
10/03 9842 10491
9990 10618
10087 10704
10142 10770
10337 10948
10319 10923
10018 10652
9970 10611
10023 10679
10189 10821
10478 11058
10541 11116
10/04 10643 11231
</Table>
<Table>
--- TAX-FREE CALIFORNIA FUND --- LEHMAN BROTHERS CALIFORNIA EXEMPT
$9,550 starting value INDEX
$10,643 ending value $10,000 starting value
$11,231 ending value
</Table>
LEHMAN BROTHERS CALIFORNIA EXEMPT INDEX is an unmanaged index of municipal bonds
issued by the State of California with maturities greater than two years.
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.
PORTFOLIO MANAGER
Charles Grande
Senior Vice President
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------
California A# 10/31/2002 8.15% 5.57%
- ----------------------------------------------------
California A## 10/31/2002 3.26% 3.18%
- ----------------------------------------------------
California B# 10/31/2002 7.40% 4.78%
- ----------------------------------------------------
California B## 10/31/2002 2.40% 2.86%
- ----------------------------------------------------
California C# 10/31/2002 7.49% 4.88%
- ----------------------------------------------------
California C## 10/31/2002 5.42% 4.36%
- ----------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2004, The Hartford California Tax-Free
Fund Class A placed in the 1st quartile with a total return, before sales
charge, of 8.15% versus a return of 5.96% for the Lipper California Municipal
Debt Funds and 7.05% 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, 2004, the SEC yield for the Fund's Class A shares was 3.32%.
WHY DID THE FUND PERFORM THIS WAY?
Over the past year, the economic picture for the state has improved
dramatically. The state elected a new governor and rebounded economically in
revenue generation and job growth. The Governor led the charge in formulating a
bailout package for the state, which contributed to the state's credit rating
upgrade by all the rating agencies.
The Fund benefited from purchasing long state general obligation debt when
spreads widened and liquidating those positions as spreads tightened. The Fund's
overweight to high yield debt, which also experienced spread tightening as the
state economy improved, contributed to our performance. For much of the year,
the Fund benefited from its exposure to long maturities (those maturing 22 years
and longer) and its underweight to the short end of the curve.
The Fund's allocations to special tax bonds turned in solid performance. We
maintained an overweight to the special assessment and tax allocation sectors as
we felt the strength of the California real estate market would benefit the
bonds. Our focus was on new housing developments with good highway access and
close proximity to major economic centers, primarily in southern California.
Densely populated areas experiencing good job growth have led the California
real estate market and home prices in these areas continue to grow at a healthy
pace.
In expectation of continued problems in the airline industry we avoided exposure
to airline special facility debt, which benefited performance of the Fund.
Airline bonds experienced a steep price decline over the year, which began when
the judge in the UAL bankruptcy case called into question the security
supporting this debt. Since that decision, US Air and Delta have announced
troubles. In addition, while tobacco debt has recently begun to show strong
performance, our reduction in exposure to this sector was positive for the Fund
for much of the year.
WHAT IS THE OUTLOOK?
General credit strength suggests to us further compression of credit spreads for
many California issuers. We are encouraged by widespread improvement in many
California credits, but are cautiously monitoring developments in sectors
showing relative weakness. We are very cautious of health care sectors in the
state because of the costs associated with strong state oversight and nurse to
patient staffing regulations.
61
- --------------------------------------------------------------------------------
Municipal bond issuance continues to trickle to market and we expect issuance to
remain tepid for the remainder of the year. Although low rate environments often
inspire opportunistic refunding bond issuance, one mitigating factor this year
is that many issuers took advantage of the low rate environment in 2003, as they
perceived that rates were more likely to rise in 2004. Some issuers will likely
take advantage of the recent drop in rates, but not to a degree that will
significantly pressure the market. Light supply has been met by moderate demand,
creating a very thinly traded market. We expect this condition to continue as we
enter the fourth quarter. As a result, the broader fixed-income market will
drive the general direction of municipal interest rates. Because of the
defensive characteristics of the municipal market, we continue to expect
municipal bonds to outperform Treasuries in a sustained rising rate environment.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 32.4%
- -------------------------------------------------------------------
AA 5.0
- -------------------------------------------------------------------
A 20.9
- -------------------------------------------------------------------
BBB 21.2
- -------------------------------------------------------------------
NR 20.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Finance 5.0%
- -------------------------------------------------------------------
General Obligations 22.6
- -------------------------------------------------------------------
Health Care/Services 6.9
- -------------------------------------------------------------------
Higher Education 7.3
- -------------------------------------------------------------------
Land Development 9.1
- -------------------------------------------------------------------
Miscellaneous 12.0
- -------------------------------------------------------------------
Pollution Control 1.5
- -------------------------------------------------------------------
Public Facilities 11.3
- -------------------------------------------------------------------
Utilities -- Combined 1.7
- -------------------------------------------------------------------
Utilities -- Electric 1.8
- -------------------------------------------------------------------
Utilities -- Gas 1.8
- -------------------------------------------------------------------
Utilities -- Water and Sewer 11.1
- -------------------------------------------------------------------
Waste Disposal 2.3
- -------------------------------------------------------------------
Other Assets & Liabilities 5.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,062.60 $4.93
Hypothetical @ $1,000 $1,020.36 $4.82
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,058.80 $8.54
Hypothetical @ $1,000 $1,016.84 $8.36
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,057.70 $8.53
Hypothetical @ $1,000 $1,016.84 $8.36
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.95%, 1.65%
and 1.65% for classes A, B, and C, respectively, multiplied by the average
account value over the period, multiplied by 184/366 (to reflect the one-half
year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
62
The Hartford Tax-Free Minnesota Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
TO
PROVIDE
CURRENT
INCOME
EXEMPT
FROM
BOTH
FEDERAL
INCOME
TAX AND
MINNESOTA
STATE
PERSONAL
INCOME
TAX.
PERFORMANCE OVERVIEW(1,3) 10/31/94 - 10/31/04
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
----------------------- ------------------------------
10/31/94 9550 10000
9383 9819
9596 10035
9838 10322
10082 10622
10140 10744
10138 10757
10425 11100
10323 11003
10391 11108
10490 11248
10537 11320
10/95 10687 11484
10838 11675
10947 11787
10995 11876
10918 11796
10777 11645
10751 11612
10756 11608
10857 11734
10947 11840
10931 11838
11065 12003
10/96 11156 12139
11313 12361
11275 12309
11279 12332
11371 12445
11222 12279
11314 12382
11463 12569
11579 12702
11852 13054
11721 12932
11850 13085
10/97 11923 13170
11984 13247
12150 13440
12257 13579
12237 13583
12241 13595
12174 13534
12365 13748
12403 13802
12430 13837
12670 14051
12828 14226
10/98 12772 14225
12823 14275
12850 14311
12974 14481
12913 14418
12902 14438
12941 14474
12840 14390
12676 14183
12712 14235
12623 14121
12609 14127
10/99 12468 13973
12583 14122
12519 14017
12455 13956
12611 14118
12819 14427
12744 14341
12668 14267
12947 14645
13109 14848
13298 15077
13223 14999
10/00 13373 15163
13471 15277
13839 15655
13924 15810
13982 15860
14079 16002
13889 15829
14054 15999
14134 16106
14342 16345
14553 16614
14489 16558
10/01 14682 16756
14499 16614
14350 16457
14554 16743
14629 16945
14382 16612
14648 16937
14718 17040
14887 17221
15058 17443
15216 17652
15533 18039
10/02 15220 17740
15112 17665
15467 18038
15394 17993
15629 18245
15616 18256
15680 18376
16098 18806
16010 18725
15368 18070
15465 18205
10/03 15982 18741
15864 18647
16050 18841
16208 18997
16274 19105
16525 19392
16499 19324
16099 18866
16057 18798
16093 18866
16303 19115
16640 19497
16741 19601
10/04 16873 19769
</Table>
<Table>
--- TAX-FREE MINNESOTA FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX
$9,550 starting value $10,000 starting value
$16,873 ending value $19,769 ending value
</Table>
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds
with maturities greater than two years.
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.
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -----------------------------------------------------------------------
Minnesota A# 6/2/1986 6.37% 6.24% 5.86% 6.17%
- -----------------------------------------------------------------------
Minnesota A## 6/2/1986 1.60% 5.27% 5.37% 5.91%
- -----------------------------------------------------------------------
Minnesota B# 11/14/1994 5.71% 5.46% NA* NA*
- -----------------------------------------------------------------------
Minnesota B## 11/14/1994 0.72% 5.13% NA* NA*
- -----------------------------------------------------------------------
Minnesota C# 11/14/1994 5.60% 5.43% NA 5.24%
- -----------------------------------------------------------------------
Minnesota C## 11/14/1994 3.54% 5.05% NA 5.13%
- -----------------------------------------------------------------------
Minnesota E# 6/2/1986 6.62% 6.54% 6.00% 6.25%
- -----------------------------------------------------------------------
Minnesota E## 6/2/1986 1.78% 5.56% 5.52% 5.99%
- -----------------------------------------------------------------------
Minnesota H# 11/14/1994 5.61% 5.50% NA* NA*
- -----------------------------------------------------------------------
Minnesota H## 11/14/1994 1.61% 5.18% NA* NA*
- -----------------------------------------------------------------------
Minnesota L# 11/14/1994 6.41% 6.29% NA 6.06%
- -----------------------------------------------------------------------
Minnesota L## 11/14/1994 1.66% 5.32% NA 5.57%
- -----------------------------------------------------------------------
Minnesota M# 11/14/1994 5.61% 5.53% NA* NA*
- -----------------------------------------------------------------------
Minnesota M## 11/14/1994 1.62% 5.21% NA* NA*
- -----------------------------------------------------------------------
Minnesota N# 11/14/1994 5.71% 5.55% NA 5.27%
- -----------------------------------------------------------------------
Minnesota N## 11/14/1994 4.71% 5.55% NA 5.27%
- -----------------------------------------------------------------------
Minnesota Y# 2/19/2002 6.58% NA NA 5.92%
- -----------------------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, E, H, L, M, N
and Y shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2004, The Hartford Tax-Free Minnesota
Fund Class A placed in the 1st quartile with a total return, before sales
charge, of 6.37% versus a return of 5.49% for the Lipper Minnesota Municipal
Debt Funds and 6.04% for the Lehman Brothers Municipal Bond Index.
The primary objective of The Hartford Tax-Free Minnesota Fund is to provide
current income exempt from both federal tax and Minnesota state personal income
tax. As of October 31, 2004, the SEC yield for this Fund's Class A shares was
2.99%.
WHY DID THE FUND PERFORM THIS WAY?
The economic recovery had a positive effect on most municipal credits. As the
year progressed, Minnesota reported increased revenue from tax receipts with
particular strength in corporate tax collections. For much of the year, the Fund
benefited from its exposure to long maturities (those maturing 22 years and
longer) and its underweight to the short end of the curve as the longer
maturities performed well. We began to shorten duration in the second quarter of
2004, in anticipation of a rise in rates, and focused our purchases on higher
coupon bonds on the intermediate part of the curve.
Solid performance was achieved in spite of the lack of new issuance. In general,
we were overweight to revenue bonds versus general obligation bonds for the
additional yield pickup. We also maintained sector overweights in select bonds
with strong credit profiles in education, higher yielding transportation and
special tax bonds. Our purchases in these sectors provided both total return and
yield enhancement. Within education, we favored non-rated charter schools with
capabilities in specialized areas of teaching.
The portfolio also benefited from our decision to reduce exposure to bonds
linked directly to airlines. Airline bonds experienced a steep price decline
over the year, which began when the judge in the UAL bankruptcy case called into
question the security supporting this debt. Subsequent to this event, U.S. Air
and Delta have announced troubles. In addition, while tobacco debt has recently
begun to show strong performance, our reduction in exposure to this sector was
positive for the Fund for much of the year.
WHAT IS THE OUTLOOK?
Unaudited reports from the Minnesota Department of Finance indicating the state
finished fiscal year 2004 with a $194 million surplus are encouraging. The
surplus was primarily the product of net general fund receipts coming in 1.5%
above forecasts. National
63
- --------------------------------------------------------------------------------
economic recovery and general credit strengthening suggest further compression
of high yield municipal credit spreads. Since the second half of the year,
municipal bond issuance has trickled to the market, and we expect Minnesota
issuance to remain tepid for the remainder of the year. Although low rate
environments often inspire opportunistic refunding bond issuance, one mitigating
factor this year is that many issuers took advantage of the low rate environment
in 2003, as they perceived that rates were more likely to rise in 2004. Some
Minnesota issuers will likely take advantage of the recent drop in rates, but
not to a degree that will significantly pressure the market. Light supply has
been met by moderate demand, creating a very thinly traded market. We expect
this condition to continue. As a result, the broader fixed-income market will
drive the general direction of municipal interest rates. Because of the
defensive characteristics of the municipal market, we continue to expect
municipal bonds to outperform Treasuries in a sustained rising rate environment.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 36.9%
- -------------------------------------------------------------------
AA 17.6
- -------------------------------------------------------------------
A 26.2
- -------------------------------------------------------------------
BBB 11.8
- -------------------------------------------------------------------
BB 2.3
- -------------------------------------------------------------------
NR 5.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Airport Revenues 3.1%
- -------------------------------------------------------------------
Finance 4.9
- -------------------------------------------------------------------
General Obligations 32.4
- -------------------------------------------------------------------
Health Care/Services 11.0
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 1.0
- -------------------------------------------------------------------
Housing (HFA's, etc.) 10.9
- -------------------------------------------------------------------
Miscellaneous 8.3
- -------------------------------------------------------------------
Pollution Control 3.5
- -------------------------------------------------------------------
Public Facilities 2.3
- -------------------------------------------------------------------
Transportation 5.4
- -------------------------------------------------------------------
Utilities -- Combined 0.8
- -------------------------------------------------------------------
Utilities -- Electric 7.5
- -------------------------------------------------------------------
Utilities -- Water and Sewer 4.9
- -------------------------------------------------------------------
Other Assets & Liabilities 4.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,048.10 $4.63
Hypothetical @ $1,000 $1,020.61 $4.57
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,044.40 $8.22
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,044.30 $8.22
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
CLASS E
Actual $1,000 $1,049.00 $4.17
Hypothetical @ $1,000 $1,021.06 $4.12
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,044.20 $8.22
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,044.20 $8.22
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,044.20 $8.22
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,044.20 $8.22
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,048.30 $4.48
Hypothetical @ $1,000 $1,020.76 $4.42
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.90%, 1.60%,
1.60%, 0.81%, 1.60, 1.60%, 1.60%, 1.60% and 0.87% for classes A, B, C, E H,
L, M, N and Y, respectively, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
64
The Hartford Tax-Free National Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
TO
PROVIDE
CURRENT
INCOME
EXEMPT
FROM
FEDERAL
INCOME
TAX.
PERFORMANCE OVERVIEW(1,3) 10/31/94 - 10/31/04
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
---------------------- ------------------------------
10/31/94 9550 10000
9407 9819
9639 10035
9895 10322
10192 10622
10240 10744
10240 10757
10570 11100
10404 11003
10492 11108
10608 11248
10656 11320
10/95 10823 11484
11051 11675
11168 11787
11225 11876
11111 11796
10944 11645
10889 11612
10895 11608
10994 11734
11124 11840
11099 11838
11262 12003
10/96 11383 12139
11589 12361
11522 12309
11517 12332
11609 12445
11444 12279
11536 12382
11705 12569
11830 12702
12216 13054
12025 12932
12184 13085
10/97 12256 13170
12316 13247
12527 13440
12655 13579
12625 13583
12607 13595
12498 13534
12737 13748
12761 13802
12774 13837
12993 14051
13155 14226
10/98 13110 14225
13146 14275
13182 14311
13313 14481
13231 14418
13209 14438
13258 14474
13139 14390
12912 14183
12949 14235
12829 14121
12818 14127
10/99 12636 13973
12784 14122
12699 14017
12626 13956
12803 14118
13054 14427
12971 14341
12886 14267
13207 14645
13377 14848
13585 15077
13501 14999
10/00 13647 15163
13743 15277
14175 15655
14271 15810
14302 15860
14421 16002
14161 15829
14320 15999
14422 16106
14651 16345
14962 16614
14875 16558
10/01 15077 16756
14879 16614
14670 16457
14938 16743
15079 16945
14749 16612
15068 16937
15196 17040
15363 17221
15572 17443
15768 17652
16145 18039
10/02 15811 17740
15670 17665
16093 18038
15983 17993
16260 18245
16237 18256
16377 18376
16835 18806
16709 18725
15940 18070
16098 18205
16580 18741
10/03 16471 18647
16670 18841
16846 18997
16963 19105
17232 19392
17197 19324
16764 18866
16698 18798
16755 18866
16999 19115
17369 19497
17474 19601
10/04 17641 19769
</Table>
<Table>
--- TAX-FREE NATIONAL FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX
$9,550 starting value $10,000 starting value
$17,641 ending value $19,769 ending value
</Table>
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds
with maturities greater than two years.
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.
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ------------------------------------------------------------------
National A# 6/2/1986 7.10% 6.90% 6.33% 6.64%
- ------------------------------------------------------------------
National A## 6/2/1986 2.29% 5.91% 5.84% 6.37%
- ------------------------------------------------------------------
National B# 11/14/1994 6.39% 5.94% NA* NA*
- ------------------------------------------------------------------
National B## 11/14/1994 1.39% 5.62% NA* NA*
- ------------------------------------------------------------------
National C# 11/14/1994 6.47% 6.01% NA 5.70%
- ------------------------------------------------------------------
National C## 11/14/1994 4.41% 5.64% NA 5.59%
- ------------------------------------------------------------------
National E# 6/2/1986 7.45% 7.03% 6.39% 6.67%
- ------------------------------------------------------------------
National E## 6/2/1986 2.62% 6.04% 5.90% 6.41%
- ------------------------------------------------------------------
National H# 11/14/1994 6.37% 6.02% NA* NA*
- ------------------------------------------------------------------
National H## 11/14/1994 2.37% 5.70% NA* NA*
- ------------------------------------------------------------------
National L# 11/14/1994 7.12% 6.77% NA 6.48%
- ------------------------------------------------------------------
National L## 11/14/1994 2.30% 5.80% NA 5.99%
- ------------------------------------------------------------------
National M# 11/14/1994 6.37% 6.00% NA* NA*
- ------------------------------------------------------------------
National M## 11/14/1994 2.37% 5.68% NA* NA*
- ------------------------------------------------------------------
National N# 11/14/1994 6.38% 5.99% NA 5.69%
- ------------------------------------------------------------------
National N## 11/14/1994 5.38% 5.99% NA 5.69%
- ------------------------------------------------------------------
National Y# 2/19/2002 7.36% NA NA 6.47%
- ------------------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, E, H, L, M, N
and Y shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2004, The Hartford Tax-Free National
Fund Class A placed in the 1st quartile with a total return, before sales
charge, of 7.10% versus a return of 5.23% for the Lipper General Municipal Debt
Funds and 6.04% 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, 2004, the SEC
yield for the Fund's Class A shares was 3.41%.
WHY DID THE FUND PERFORM THIS WAY?
The national economic recovery continues to have a positive effect on most
municipal credits. Revenue growth had been broad based, with each of the major
geographic regions of the country showing growth. The Fund's strong performance
can be attributed to yield curve positioning and sector allocation. Fund
duration was shortened over the year to reduce the interest rate sensitivity of
the portfolio. For much of the year, we maintained an overweight to the longer
part of the curve versus the benchmark, which proved to be beneficial for all
periods except the second quarter of 2004. This had the effect of maximizing
yield and enhancing total return for the Fund.
The new issue calendar for municipal bonds has been thin in the second half of
2004, and as a result there has been a scarcity of product. Our focus has been
on the education, special tax and hospital sectors for the incremental yield
they offer. Within education, our focus was on lower tier colleges, which
exhibit stable credit characteristics and non-rated private charter schools. We
prefer charter schools with 3-5 years of operational history and preferably
those that operate in a niche market such as English as a second language. Our
holdings in special assessment debt has also helped portfolio total return
performance and enhanced yield with the non-rated debt paying up to 100 basis
points in extra yield.
As important as it is to select the right sectors for the portfolio, it is
equally important to avoid sectors that are on a downward trend. A lack of
exposure to airline debt enhanced performance of the Fund. Airline bonds
experienced a steep price decline over the year, which began when the judge in
the UAL bankruptcy case brought into question the security supporting this debt.
Since that
65
- --------------------------------------------------------------------------------
event, US Air and Delta have announced troubles. In addition, while tobacco debt
has recently begun to show strong performance, our reduction in exposure to this
sector was positive for the Fund for much of the year.
WHAT IS THE OUTLOOK?
We expect issuance to remain tepid for a while. Although low rate environments
often inspire opportunistic refunding bond issuance, one mitigating factor this
year is that many issuers took advantage of the low rate environment in 2003, as
they perceived that rates were more likely to rise in 2004. Some issuers will
likely take advantage of the recent drop in rates, but not to a degree that will
significantly pressure the market. Light supply has been met by moderate demand,
creating a very thinly traded market. We expect this condition to continue for
the near term. As a result, the broader fixed-income market will drive the
general direction of municipal interest rates. Because of the defensive
characteristics of the municipal market, we continue to expect municipal bonds
to outperform Treasuries in a sustained rising rate environment.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 18.6%
- -------------------------------------------------------------------
AA 15.0
- -------------------------------------------------------------------
A 20.7
- -------------------------------------------------------------------
BBB 28.4
- -------------------------------------------------------------------
BB 1.1
- -------------------------------------------------------------------
NR 16.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Airport Revenues 0.6%
- -------------------------------------------------------------------
Debt Futures Contracts and Options 0.6
- -------------------------------------------------------------------
General Obligations 24.6
- -------------------------------------------------------------------
Health Care/Services 9.2
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 11.0
- -------------------------------------------------------------------
Housing (HFA's, etc.) 3.5
- -------------------------------------------------------------------
Industrial 1.1
- -------------------------------------------------------------------
Land Development 5.0
- -------------------------------------------------------------------
Miscellaneous 7.5
- -------------------------------------------------------------------
Pollution Control 2.4
- -------------------------------------------------------------------
Public Facilities 9.2
- -------------------------------------------------------------------
Refunded with U.S. Government Securities 2.1
- -------------------------------------------------------------------
Transportation 2.6
- -------------------------------------------------------------------
Utilities -- Combined 0.9
- -------------------------------------------------------------------
Utilities -- Electric 5.6
- -------------------------------------------------------------------
Utilities -- Water and Sewer 9.5
- -------------------------------------------------------------------
Other Assets & Liabilities 4.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DISTRIBUTION BY STATE
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
STATE NET ASSETS
- -------------------------------------------------------------------
Alabama 2.2%
- -------------------------------------------------------------------
Arizona 8.1
- -------------------------------------------------------------------
California 11.2
- -------------------------------------------------------------------
Florida 5.7
- -------------------------------------------------------------------
Georgia 5.1
- -------------------------------------------------------------------
Hawaii 0.6
- -------------------------------------------------------------------
Illinois 5.6
- -------------------------------------------------------------------
Kentucky 1.1
- -------------------------------------------------------------------
Louisiana 0.6
- -------------------------------------------------------------------
Maryland 3.0
- -------------------------------------------------------------------
Massachusetts 1.2
- -------------------------------------------------------------------
Michigan 5.5
- -------------------------------------------------------------------
Minnesota 3.4
- -------------------------------------------------------------------
Mississippi 0.3
- -------------------------------------------------------------------
Missouri 0.6
- -------------------------------------------------------------------
Nevada 1.7
- -------------------------------------------------------------------
New Hampshire 0.8
- -------------------------------------------------------------------
New Jersey 5.7
- -------------------------------------------------------------------
New York 7.3
- -------------------------------------------------------------------
North Carolina 1.2
- -------------------------------------------------------------------
Ohio 3.4
- -------------------------------------------------------------------
Other U.S. Territories 3.0
- -------------------------------------------------------------------
Pennsylvania 3.6
- -------------------------------------------------------------------
Rhode Island 0.3
- -------------------------------------------------------------------
South Carolina 2.5
- -------------------------------------------------------------------
Tennessee 0.5
- -------------------------------------------------------------------
Texas 4.2
- -------------------------------------------------------------------
Utah 0.6
- -------------------------------------------------------------------
Virginia 1.2
- -------------------------------------------------------------------
Washington 0.8
- -------------------------------------------------------------------
Wisconsin 4.0
- -------------------------------------------------------------------
Other Assets & Liabilities 5.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
66
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,052.30 $5.42
Hypothetical @ $1,000 $1,019.86 $5.33
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,048.90 $9.01
Hypothetical @ $1,000 $1,016.34 $8.87
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,049.80 $9.02
Hypothetical @ $1,000 $1,016.34 $8.87
- ----------------------------------------------------------------------
CLASS E
Actual $1,000 $1,053.50 $4.59
Hypothetical @ $1,000 $1,020.66 $4.52
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,048.80 $8.96
Hypothetical @ $1,000 $1,016.39 $8.82
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,052.40 $5.42
Hypothetical @ $1,000 $1,019.86 $5.33
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,048.80 $9.01
Hypothetical @ $1,000 $1,016.34 $8.87
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,048.90 $9.01
Hypothetical @ $1,000 $1,016.34 $8.87
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,053.20 $4.90
Hypothetical @ $1,000 $1,020.36 $4.82
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.05%, 1.75%,
1.75%, 0.89%, 1.74%, 1.05%, 1.75%, 1.75% and 0.95% for classes A, B, C, E, H,
L, M, N and Y, respectively, multiplied by average account value over the
period, multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
67
The Hartford Tax-Free New York Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
TO
PROVIDE
CURRENT
INCOME
EXEMPT
FROM
FEDERAL,
NEW
YORK
STATE
AND
NEW
YORK
CITY
INCOME
TAX.
PERFORMANCE OVERVIEW(2) 10/31/02 - 10/31/04
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 10349
10256 10584
10168 10542
9643 10185
9752 10267
10097 10562
10/03 10030 10514
10171 10621
10319 10698
10384 10757
10577 10914
10538 10873
10225 10626
10166 10587
10197 10620
10351 10760
10588 10969
10671 11028
10/04 10784 11120
</Table>
<Table>
--- TAX-FREE NEW YORK FUND --- LEHMAN BROTHERS NEW YORK EXEMPT INDEX
$9,550 starting value $10,000 starting value
$10,784 ending value $11,120 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------
New York A# 10/31/2002 7.52% 6.27%
- ------------------------------------------------------------
New York A## 10/31/2002 2.67% 3.86%
- ------------------------------------------------------------
New York B# 10/31/2002 6.76% 5.52%
- ------------------------------------------------------------
New York B## 10/31/2002 1.76% 3.61%
- ------------------------------------------------------------
New York C# 10/31/2002 6.76% 5.52%
- ------------------------------------------------------------
New York C## 10/31/2002 4.69% 5.00%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2004, The Hartford Tax-Free New York
Fund Class A placed in the 1st quartile with a total return, before sales
charge, of 7.52% versus a return of 5.03% for the Lipper New York Municipal Debt
Funds and 5.77% 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 State and New York City income
tax. As of October 31, 2004, the SEC yield for this Fund's Class A shares was
3.17%.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's solid performance is attributable to yield curve positioning and
sector allocation. Throughout the year, the Fund's duration was lowered
significantly, from 12 years on October 31, 2003, to its current position of 7.9
years in order to reduce the portfolio's sensitivity to interest rates. Our
current focus has concentrated on investing in the intermediate segment of the
yield curve. We have, however, maintained an overweight versus the benchmark to
the longer maturities, which has positively affected Fund performance.
Throughout much of the year, our overweight to revenue bonds (for the additional
yield opportunities) and underweight to insured bonds proved beneficial. Within
the revenue sector we favored select bonds with strong credit profiles in
education, health care and special tax sectors. Our focus in education has been
on lower tier colleges with stable financial characteristics. We believe these
institutions will benefit from recent demographic trends indicating a small boom
in the number of young adults entering college. Special tax bond exposure is
primarily supported by economically sensitive revenues (personal income and
sales taxes), which should continue to perform well as the New York economy
improves.
In expectation of continued problems in the airline industry we avoided exposure
to airline special facility debt, which benefited performance of the Fund.
Airline bonds experienced a steep price decline over the year, which began when
the judge in the UAL bankruptcy case called into question the security
supporting this debt. Subsequent to this event, U.S. Air and Delta announced
troubles. In addition, while tobacco debt has recently begun to show strong
performance, our reduction in exposure to this sector was positive for the Fund
for much of the year.
WHAT IS THE OUTLOOK?
The economic recovery continues to have a positive effect on many New York
credits. New York issuance has dropped significantly from last year. Although
low rate environments often inspire opportunistic refunding bond issuance, one
mitigating factor this year is that many issuers took advantage of the low rate
environment in 2003, as they perceived that rates were more likely
68
- --------------------------------------------------------------------------------
to rise in 2004. We do expect New York issuance to pick up slightly now that the
annual budget has been passed. Light supply has been met by moderate demand,
creating a very thinly traded market. We expect this condition to continue,
despite the expected up-tick in New York issuance. As a result, the broader
fixed-income market will drive the general direction of municipal interest
rates. Because of the defensive characteristics of the municipal market, we
continue to expect municipal bonds to outperform Treasuries in a sustained
rising rate environment.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 18.2%
- -------------------------------------------------------------------
AA 32.7
- -------------------------------------------------------------------
A 30.1
- -------------------------------------------------------------------
BBB 15.7
- -------------------------------------------------------------------
BB 1.7
- -------------------------------------------------------------------
NR 1.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Airport Revenues 1.6%
- -------------------------------------------------------------------
Finance 4.9
- -------------------------------------------------------------------
General Obligations 14.4
- -------------------------------------------------------------------
Health Care/Services 9.4
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 25.3
- -------------------------------------------------------------------
Housing (HFA's, etc.) 4.9
- -------------------------------------------------------------------
Industrial 1.8
- -------------------------------------------------------------------
Land Development 1.7
- -------------------------------------------------------------------
Miscellaneous 8.6
- -------------------------------------------------------------------
Pollution Control 3.3
- -------------------------------------------------------------------
Public Facilities 3.3
- -------------------------------------------------------------------
Transportation 10.0
- -------------------------------------------------------------------
Utilities -- Electric 1.8
- -------------------------------------------------------------------
Utilities -- Water and Sewer 5.0
- -------------------------------------------------------------------
Other Assets & Liabilities 4.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,054.80 $4.55
Hypothetical @ $1,000 $1,020.71 $4.47
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,050.00 $8.19
Hypothetical @ $1,000 $1,017.14 $8.06
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,050.00 $8.24
Hypothetical @ $1,000 $1,017.09 $8.11
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 0.88%, 1.59%
and 1.60% for classes A, B and C, respectively, multiplied by the average
account value over the period, multiplied by 184/366 (to reflect the one-half
year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
69
The Hartford Total Return Bond Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
A
COMPETITIVE
TOTAL
RETURN,
WITH
INCOME
AS A
SECONDARY
OBJECTIVE.
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/04
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
16211 17055
16416 17229
16544 17367
16676 17554
16769 17686
16362 17226
16303 17157
16368 17255
16483 17426
16768 17759
16848 17807
10/04 16983 17956
</Table>
<Table>
--- TOTAL RETURN BOND FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX
$9,550 starting value $10,000 starting value
$16,983 ending value $17,956 ending value
</Table>
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.
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.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------
Total Return A# 7/22/1996 5.10% 7.62% 7.20%
- --------------------------------------------------------------
Total Return A## 7/22/1996 0.41% 6.64% 6.60%
- --------------------------------------------------------------
Total Return B# 7/22/1996 4.37% 6.85% NA*
- --------------------------------------------------------------
Total Return B## 7/22/1996 -0.54% 6.54% NA*
- --------------------------------------------------------------
Total Return C# 7/22/1996 4.76% 6.93% 6.48%
- --------------------------------------------------------------
Total Return C## 7/22/1996 2.71% 6.72% 6.35%
- --------------------------------------------------------------
Total Return Y# 7/22/1996 5.64% 8.13% 7.70%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Class B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(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 above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
NASRI TOUTOUNGI
Managing Director
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the year ended October 31, 2004, The Hartford Total Return Bond Fund Class A
placed in the 2nd quartile with a return, before sales charge, of 5.10% versus a
return of 4.86% for the Lipper Intermediate Investment Grade Funds and 5.53% for
the Lehman Brothers U.S. Aggregate Bond Index.
WHY DID THE FUND PERFORM THIS WAY?
In the past year, the Fund was positioned for a growing economy. After a period
of slow growth in the end of 2003 and into 2004, key indicators began to point
to a sustainable recovery towards the end of March. During the second and third
quarters of 2004, the major credit sectors outperformed U.S. Treasuries because
of a reduction in concerns relating to terrorism following completion of the
political conventions and the Olympics without grave terrorist incident, and
because growth, while moderate, remained strong enough to contribute
significantly to profitability and credit quality. The Fund's duration proved
beneficial as interest rates rose toward the end of the first quarter and
throughout the second quarter of 2004. As rates declined in the third quarter,
however, the Fund's short duration became a drag on performance. Allocations to
non-dollar and emerging markets proved beneficial to the Fund over the past 12
months while being underweight mortgage-backed securities detracted from
performance. High yield allocations added value as the sector continues to post
solid returns in 2004.
WHAT IS THE OUTLOOK?
The Fund has a slightly defensive stance to rates. We expect 10 year Treasury
rates to rise gently between now and December 31, 2004 to a 4.5% rate. Our
outlook is driven by the fact that fundamentals continue to point to relatively
subdued but sound economic growth. While the consumption side of the economy has
slowed some, businesses are still investing and cash flow is strong. The latest
employment numbers are confirming that we might be pulling out of the soft
patch. With the uncertainty of the election results behind us, equity markets
are also pointing to stronger economic growth ahead. The Federal Reserve seems
intent on raising the Fed Funds Rate every opportunity it has.
We favor income-producing securities. This strategy should yield good results in
a steadily growing economy. We remain constructive on corporate bond spreads,
including high yield securities. While we expect bottom line growth rates will
slow to mid-single digits, cash flows remain strong for corporations. The
economy will continue to provide a solid base for corporate spreads to hold
steady or compress further. While mortgage backed securities are also good
income generators, we are concerned about price depreciation in the event of a
significant move in interest rates. We will remain under invested in agency
70
- --------------------------------------------------------------------------------
debentures due to potential for continued headline risk. Currently, we favor
non-U.S. government securities as we believe that they might rise in yield less
than their U.S. counterpart. We also favor foreign currencies versus the U.S.
dollar.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 57.4%
- -------------------------------------------------------------------
AA 3.5
- -------------------------------------------------------------------
A 11.4
- -------------------------------------------------------------------
BBB 21.5
- -------------------------------------------------------------------
BB 5.4
- -------------------------------------------------------------------
B 0.2
- -------------------------------------------------------------------
CCC 0.3
- -------------------------------------------------------------------
NR 0.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.8%
- -------------------------------------------------------------------
Capital Goods 1.2
- -------------------------------------------------------------------
Consumer Cyclical 2.1
- -------------------------------------------------------------------
Consumer Staples 1.9
- -------------------------------------------------------------------
Direct Federal Obligations 8.5
- -------------------------------------------------------------------
Energy 4.0
- -------------------------------------------------------------------
Finance 35.0
- -------------------------------------------------------------------
General Obligations 4.5
- -------------------------------------------------------------------
Health Care 0.8
- -------------------------------------------------------------------
Services 3.0
- -------------------------------------------------------------------
Technology 6.7
- -------------------------------------------------------------------
Transportation 0.5
- -------------------------------------------------------------------
Utilities 5.9
- -------------------------------------------------------------------
U.S. Government Agencies 27.6
- -------------------------------------------------------------------
Other Assets & Liabilities -4.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,038.00 $6.35
Hypothetical @ $1,000 $1,018.90 $6.29
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,034.40 $9.97
Hypothetical @ $1,000 $1,015.33 $9.88
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,037.30 $8.96
Hypothetical @ $1,000 $1,016.34 $8.87
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,041.00 $3.64
Hypothetical @ $1,000 $1,021.57 $3.61
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.24%, 1.95%,
1.75% and 0.71% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
71
The Hartford U.S. Government Securities Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT
OBJECTIVE -- SEEKS
TO
PROVIDE
CURRENT
INCOME
WHILE
MAINTAINING
PRESERVATION
OF
CAPITAL
CONSISTENT
WITH
PRUDENT
INVESTMENT
RISK.
PERFORMANCE OVERVIEW(1,3) 10/31/94 - 10/31/04
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
U.S. GOVERNMENT SECURITIES FUND LEHMAN BROTHERS U.S. GOV'T INDEX*
------------------------------- ---------------------------------
10/31/94 9550 10000
9524 9982
9585 10043
9759 10230
9956 10450
10008 10515
10128 10653
10429 11083
10502 11168
10472 11127
10593 11257
10688 11365
10/95 10841 11538
10984 11718
11116 11884
11189 11956
10998 11712
10927 11615
10866 11541
10851 11521
10983 11670
11004 11699
10988 11673
11183 11867
10/96 11407 12128
11593 12339
11489 12213
11525 12227
11548 12244
11417 12114
11582 12289
11684 12394
11812 12533
12112 12889
12013 12761
12192 12953
10/97 12359 13177
12392 13244
12507 13383
12676 13584
12652 13547
12696 13585
12740 13646
12867 13787
12994 13944
13011 13965
13279 14328
13605 14715
10/98 13481 14665
13541 14669
13572 14702
13629 14787
13356 14435
13428 14491
13457 14525
13328 14397
13271 14368
13214 14346
13185 14346
13350 14462
10/99 13368 14486
13372 14465
13302 14371
13247 14391
13391 14596
13551 14853
13528 14811
13505 14820
13745 15084
13862 15230
14058 15455
14177 15499
10/00 14283 15648
14532 15956
14831 16273
15003 16438
15159 16625
15235 16683
15147 16513
15204 16568
15225 16644
15568 17043
15731 17255
16008 17555
10/01 16278 18008
16043 17604
15942 17451
16027 17565
16221 17726
16002 17342
16299 17754
16424 17861
16566 18111
16856 18509
17077 18876
17368 19317
10/02 17310 19163
17212 18998
17668 19458
17569 19409
17842 19722
17796 19665
17902 19755
18257 20267
18090 20161
17304 19329
17366 19437
17863 20002
10/03 17667 19718
17710 19742
17824 19918
17938 20083
18129 20324
18266 20503
17846 19886
17706 19812
17809 19893
17987 20078
18260 20470
18249 20511
10/04 18388 20675
</Table>
<Table>
--- U.S. GOVERNMENT SECURITIES FUND --- LEHMAN BROTHERS U.S. GOV'T INDEX*
$9,550 starting value $10,000 starting value
$18,388 ending value $20,675 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.
LEHMAN BROTHERS U.S. GOVERNMENT INDEX is an unmanaged index of government bonds
with maturities of one year or more.
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.
PORTFOLIO MANAGER
CHRISTOPHER HANLON, CFA
Senior Vice President
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION
- ---------------------------------------------------------------------
U.S. Gov A# 2/28/1973 4.08% 6.58% 6.77% 7.80%
- ---------------------------------------------------------------------
U.S. Gov A## 2/28/1973 -0.65% 5.61% 6.28% 7.64%
- ---------------------------------------------------------------------
U.S. Gov B# 11/14/1994 3.37% 5.68% NA* NA*
- ---------------------------------------------------------------------
U.S. Gov B## 11/14/1994 -1.62% 5.36% NA* NA*
- ---------------------------------------------------------------------
U.S. Gov C# 11/14/1994 3.37% 5.71% NA 5.85%
- ---------------------------------------------------------------------
U.S. Gov C## 11/14/1994 1.34% 5.34% NA 5.75%
- ---------------------------------------------------------------------
U.S. Gov E# 2/28/1973 4.50% 6.80% 6.88% 7.83%
- ---------------------------------------------------------------------
U.S. Gov E## 2/28/1973 -0.25% 5.83% 6.39% 7.67%
- ---------------------------------------------------------------------
U.S. Gov H# 11/14/1994 3.48% 5.74% NA* NA*
- ---------------------------------------------------------------------
U.S. Gov H## 11/14/1994 -0.52% 5.42% NA* NA*
- ---------------------------------------------------------------------
U.S. Gov L# 11/14/1994 4.24% 6.53% NA 6.67%
- ---------------------------------------------------------------------
U.S. Gov L## 11/14/1994 -0.49% 5.55% NA 6.17%
- ---------------------------------------------------------------------
U.S. Gov M# 11/14/1994 3.47% 5.72% NA* NA*
- ---------------------------------------------------------------------
U.S. Gov M## 11/14/1994 -0.52% 5.40% NA* NA*
- ---------------------------------------------------------------------
U.S. Gov N# 11/14/1994 3.37% 5.75% NA 5.87%
- ---------------------------------------------------------------------
U.S. Gov N## 11/14/1994 2.37% 5.75% NA 5.87%
- ---------------------------------------------------------------------
U.S. Gov Y# 2/19/2002 4.48% NA NA 5.32%
- ---------------------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, E, H, L, M, N
and Y shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the year ended October 31, 2004, The Hartford U.S. Government Securities
Fund Class A placed in the 2nd quartile with a return, before sales charge, of
4.08% versus a return of 4.19% for the Lipper General U.S. Government Funds and
4.83% for the Lehman Brothers U.S. Government Index.
The primary objective of The Hartford U.S. Government Securities Fund is to
provide current income while maintaining preservation of capital consistent with
prudent investment risk. As of October 31, 2004, the SEC yield for this Fund's
Class A shares was 3.92%.
WHY DID THE FUND PERFORM THIS WAY?
Over the past twelve months, the Fund shifted positions as the economy grew at
an uneven pace. In the first six months of the year, the Treasury market moved
modestly due to the slow growth of the economy. In last six months, however,
overall economic data implied a continuing expansion, but indicators still
provided a mixed picture in some areas. The Fund moved from a neutral to short
duration in order to protect against rising interest rates. This proved
beneficial toward the end of the first quarter and into the second quarter of
2004. As rates fluctuated, however, the Fund suffered from its short duration
stance in the third quarter as interest rates declined across the curve on
growing evidence of a "soft patch" in economic growth. The Fund maintained a
solid yield during the periods of declining interest rates through sector
allocation and security selection. The Fund maintained an underweight to
Treasury and agency debt, favoring mortgage backed securities (MBS) and
government guaranteed Commercial Mortgage Backed Securities (CMBS) whose yields
continued to offer value relative to Treasuries. The Fund's allocation to
residential mortgages and Collateralize Mortgage Obligations contributed to
higher yields, but detracted from performance.
WHAT IS THE OUTLOOK?
We expect the economy to gradually accelerate out of the current "soft patch"
post election. The Fed still appears committed to a measured pace of
tightenings. Rates should drift higher and the curve should continue to flatten
longer term.
The Fund's duration will be flat to short the duration of the Lehman Brothers
U.S. Government Index and will favor securities that perform well in an
unchanged to rising interest rate
72
- --------------------------------------------------------------------------------
environment. A continued steep Treasury yield curve, with a trend toward higher
rates, should lead to solid performance for Mortgage Backed Securities, which
are fairly priced and will continue to offer good diversification and total
return potential within an overall government mandate. The Fund will also
maintain its allocations to high quality CMBS, which should outperform Mortgage
Backed Securities during large changes in interest rates.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
RATING RATED HOLDINGS
- -------------------------------------------------------------------
AAA 94.0%
- -------------------------------------------------------------------
AA 6.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DISTRIBUTION BY CATEGORY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
CATEGORY NAME NET ASSETS
- -------------------------------------------------------------------
Federal Home Loan Mortgage Corporation 36.2%
- -------------------------------------------------------------------
Federal National Mortgage Association 30.2
- -------------------------------------------------------------------
Government National Mortgage Association 13.9
- -------------------------------------------------------------------
Other Direct Federal Obligations 3.3
- -------------------------------------------------------------------
U.S. Treasury Securities 14.5
- -------------------------------------------------------------------
Other Assets & Liabilities 1.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,030.40 $6.12
Hypothetical @ $1,000 $1,019.10 $6.09
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,027.90 $9.69
Hypothetical @ $1,000 $1,015.58 $9.63
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,026.90 $9.68
Hypothetical @ $1,000 $1,015.58 $9.63
- ----------------------------------------------------------------------
CLASS E
Actual $1,000 $1,033.60 $3.88
Hypothetical @ $1,000 $1,021.32 $3.86
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,028.50 $8.97
Hypothetical @ $1,000 $1,016.29 $8.92
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,032.30 $5.16
Hypothetical @ $1,000 $1,020.06 $5.13
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,027.40 $8.97
Hypothetical @ $1,000 $1,016.29 $8.92
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,027.50 $8.97
Hypothetical @ $1,000 $1,016.29 $8.92
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,032.30 $4.24
Hypothetical @ $1,000 $1,020.96 $4.22
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.20%, 1.90%,
1.90%, 0.76%, 1.76%, 1.01%, 1.76%, 1.76% and 0.83% for classes A, B, C, E, H,
L, M, N and Y, respectively, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
73
The Hartford Value Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
LONG-TERM
TOTAL
RETURN.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/04
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
8674 9892
9157 10501
9224 10686
9341 10915
9245 10819
9090 10555
9226 10663
9399 10914
9051 10760
9109 10913
9215 11082
10/04 9370 11266
</Table>
<Table>
--- VALUE FUND --- RUSSELL 1000 VALUE INDEX
$9,450 starting value $10,000 starting value
$9,370 ending value $11,266 ending value
</Table>
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index
companies with lower price-to-book ratios and lower forecasted growth values.
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.
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/04)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------
Value A# 4/30/2001 9.70% -0.25%
- ---------------------------------------------------------
Value A## 4/30/2001 3.66% -1.84%
- ---------------------------------------------------------
Value B# 4/30/2001 8.91% -0.96%
- ---------------------------------------------------------
Value B## 4/30/2001 3.91% -1.81%
- ---------------------------------------------------------
Value C# 4/30/2001 8.91% -0.96%
- ---------------------------------------------------------
Value C## 4/30/2001 6.82% -1.24%
- ---------------------------------------------------------
Value Y# 4/30/2001 9.76% 0.01%
- ---------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A and C shares reflects the
maximum sales charge and Class B shares reflect a CDSC.
(2) Growth of a $10,000 investment in Class B, C and Y shares
will vary from the results seen above due to differences in
the expenses charged to these share classes.
PORTFOLIO MANAGER
JOHN R. RYAN, CFA
Senior Vice President, Managing Partner, Portfolio Manager
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the 12-month period ending October 31, 2004, The Hartford Value Fund, Class
A, before sales charge, returned 9.70%, trailing both the Russell 1000 Value
Index return of 15.45% and the Lipper Large Cap Value peer group average return
of 11.58%.
WHY DID THE FUND PERFORM THIS WAY?
Improving jobs data and strong corporate profits eased investors' concern about
the impact of the Federal Reserve rate hikes, which resulted in positive equity
market performance during the period. Value outperformed growth by 12.10%,
measured by the Russell 1000 Value index (15.50%) versus the Russell 1000 Growth
index (3.50%). The broader market, as represented by the S&P 500, returned
9.42%. The more defensive sectors of the Russell 1000 Value index posted
positive gains, with Energy and Utilities leading the way.
The Fund's underperformance during this period was due to unfavorable stock
selection within Financials, Materials and Information Technology. The top three
detractors, on an absolute basis, were Applied Materials, Teradyne and Intel,
three of our semiconductor holdings. There has been a large sell-off in
semiconductor stocks, in part due to a mid-cycle inventory correction, which is
currently correcting itself. As of the end of the period, all three stocks were
held in the portfolio.
To help partially offset these results, the Fund benefited from positive stock
selection within Health Care, Utilities, Consumer Staples and Industrials. Among
the top contributors were Exxon Mobil (Energy), Tyco (Industrials) and TXU
(Utilities). As of the end of the period, all three stocks were held in the
Fund.
WHAT IS THE OUTLOOK?
We continue to believe that the expansion should be sustainable for the
foreseeable future, albeit at a somewhat lower rate of 3%, versus the 4% we have
experienced over the past year. We remain encouraged by what companies are
saying regarding orders and revenue trends. We believe that higher profits and
business confidence will drive employment gains, which should support further
growth in the economy. The U.S. corporate mentality continues to be very
cautious and focused on cost reductions and productivity improvements. Corporate
profits are expanding at a pace above consensus expectations. Dividends and free
cash flow are still expanding. Better earnings, better free cash flow and higher
dividends are key drivers of higher stock prices.
The Fund is positioned in anticipation of a continuing global economic recovery.
Year-to-date, this stance has hurt the Fund's results, but we continue to
believe the economy will expand in the face of modest interest rate increases.
At the end of the period, relative to the Russell 1000 Value Index, the Fund was
overweight Energy, Utilities, Health Care, Industrials, Consumer Staples,
Materials and Information Technology.
74
- --------------------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.8%
- -------------------------------------------------------------------
Capital Goods 5.8
- -------------------------------------------------------------------
Consumer Cyclical 7.9
- -------------------------------------------------------------------
Consumer Staples 4.5
- -------------------------------------------------------------------
Energy 9.2
- -------------------------------------------------------------------
Finance 33.1
- -------------------------------------------------------------------
Health Care 9.4
- -------------------------------------------------------------------
Services 1.8
- -------------------------------------------------------------------
Technology 11.3
- -------------------------------------------------------------------
Transportation 5.2
- -------------------------------------------------------------------
Utilities 7.9
- -------------------------------------------------------------------
Other Assets & Liabilities -2.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,030.80 $ 7.40
Hypothetical @ $1,000 $1,017.85 $ 7.35
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,027.80 $10.96
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,027.80 $10.96
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,029.70 $ 4.64
Hypothetical @ $1,000 $1,020.56 $ 4.62
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.45%, 2.15%,
2.15% and 0.91% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
75
The Hartford Value Opportunities Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT
OBJECTIVE -- SEEKS
SHORT-
AND
LONG-TERM
CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 1/2/96 - 10/31/04
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 18007
16107 19218
16288 19464
16499 19802
17207 20143
17207 19943
10/03 18307 21194
18909 21522
19949 22806
20597 23237
20989 23732
20642 23566
20130 22939
20311 23175
20883 23771
20180 23371
20220 23696
20612 24111
10/04 21185 24509
</Table>
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.
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>
--- VALUE OPPORTUNITIES FUND --- RUSSELL 3000 VALUE INDEX
$9,450 starting value $10,000 starting value
$21,185 ending value $24,509 ending value
</Table>
PORTFOLIO MANAGERS
JAMES H. AVERILL
Senior Vice President, Partner, Portfolio Manager
JAMES N. MORDY
Senior Vice President, Partner, Portfolio Manager
DAVID R. FASSNACHT, CFA
Senior Vice President, Partner, Portfolio Manager
DAVID W. PALMER, CFA
Vice President, Portfolio Manager
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/04)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------
Value Opp A# 1/2/1996 15.72% 6.01% 9.57%
- -----------------------------------------------------------
Value Opp A## 1/2/1996 9.33% 4.82% 8.88%
- -----------------------------------------------------------
Value Opp B# 1/2/1996 14.83% 5.24% NA*
- -----------------------------------------------------------
Value Opp B## 1/2/1996 9.83% 4.91% NA*
- -----------------------------------------------------------
Value Opp C# 1/2/1996 14.92% 5.24% 8.77%
- -----------------------------------------------------------
Value Opp C## 1/2/1996 12.77% 4.86% 8.65%
- -----------------------------------------------------------
Value Opp H# 1/2/1996 14.82% 5.24% NA*
- -----------------------------------------------------------
Value Opp H## 1/2/1996 10.82% 4.91% NA*
- -----------------------------------------------------------
Value Opp L# 1/2/1996 15.72% 6.01% 9.57%
- -----------------------------------------------------------
Value Opp L## 1/2/1996 10.19% 4.99% 8.97%
- -----------------------------------------------------------
Value Opp M# 1/2/1996 14.83% 5.24% NA*
- -----------------------------------------------------------
Value Opp M## 1/2/1996 10.83% 4.91% NA*
- -----------------------------------------------------------
Value Opp N# 1/2/1996 14.90% 5.25% 8.78%
- -----------------------------------------------------------
Value Opp N## 1/2/1996 13.90% 5.25% 8.78%
- -----------------------------------------------------------
Value Opp Y# 2/19/2002 15.96% NA 6.52%
- -----------------------------------------------------------
</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.
(1) 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.
(2) 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.
(3) Growth of a $10,000 investment in Class B, C, H, L, M, N, Y
and Z shares will vary from the results seen above due to
differences in expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the 12-month period ended October 31, 2004, The Hartford Value Opportunities
Fund, Class A, before sales charge, returned 15.72% outperforming both the
Russell 3000 Value Index return of 15.64% and the Lipper Multi Cap Value Average
return of 12.73%.
WHY DID THE FUND PERFORM THIS WAY?
The equity markets posted positive returns despite higher energy prices,
prospects of interest rate tightening by the Federal Reserve and escalating
tensions in Iraq. During this period, value stocks outperformed growth stocks by
over 1,000 basis points, while small and mid cap stocks outperformed large cap
stocks. The Fund's overweight position in small and mid caps relative to large
caps, versus the benchmark, served us well during the period.
The Fund outperformed its market benchmark during the period primarily due to
strong stock selection within the Materials, Health Care, Utilities and Consumer
Discretionary sectors. Tyco (Capital Goods), TXU (Utilities) and Rinker
(Materials) were the top contributors to performance, on an absolute basis. Tyco
continues to benefit from improving operating cash flow. TXU, a Texas-based coal
and nuclear utility, has benefited from an intelligent corporate restructuring
and a price umbrella created by the expensive natural gas prices its competitors
use in electricity generation. Rinker, Australian-domiciled but predominantly a
Floridian aggregates and cement producer, is part of a duopoly in a fast-growing
state at a time when cement is scarce globally.
The three biggest detractors from performance, Continental Airlines
(Transportation), Rent-a-Center (Retail) and AMR (Transportation), were victims
of high energy prices. AMR and Continental have suffered as the airline industry
has not been able to pass through the spike in energy prices, and
Rent-a-Center's core customer has been disproportionately affected by higher
gasoline and energy prices. Modest positions of all three stocks were held in
the portfolio at the end of the period due to our belief that current energy
pricing is unsustainable and that these companies have the financial and
management strength to persevere.
76
- --------------------------------------------------------------------------------
WHAT IS THE OUTLOOK?
The stimulus-driven phase of the recovery is waning, and we believe the US
economy is transitioning into a period of slower economic growth. In this
environment, we expect those companies unable to obtain sales and earnings
growth necessary to support their current valuations to give way to large cap
low P/E companies with good relative returns on capital and decent growth
prospects.
Given this outlook, we expect our low P/E approach to outperform over the long
term. We are finding large cap value companies increasingly attractive, and they
are gaining a higher weighting in the portfolio. As of the end of the period,
the Fund was overweight Consumer Discretionary, Health Care, Information
Technology and Materials, relative to the benchmark. Underweights were in
Consumer Staples, Utilities, and Industrials, which seem expensive relative to
their growth prospects.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 7.7%
- -------------------------------------------------------------------
Capital Goods 4.2
- -------------------------------------------------------------------
Consumer Cyclical 12.6
- -------------------------------------------------------------------
Consumer Staples 1.4
- -------------------------------------------------------------------
Energy 7.9
- -------------------------------------------------------------------
Finance 36.1
- -------------------------------------------------------------------
Health Care 8.3
- -------------------------------------------------------------------
Services 4.2
- -------------------------------------------------------------------
Technology 12.2
- -------------------------------------------------------------------
Transportation 3.5
- -------------------------------------------------------------------
Utilities 1.3
- -------------------------------------------------------------------
Other Assets & Liabilities 0.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- ----------------------------------------------------------------------
CLASS A
Actual $1,000 $1,052.40 $ 7.48
Hypothetical @ $1,000 $1,017.85 $ 7.35
- ----------------------------------------------------------------------
CLASS B
Actual $1,000 $1,048.30 $11.07
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS C
Actual $1,000 $1,049.10 $11.07
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS H
Actual $1,000 $1,048.30 $11.07
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS L
Actual $1,000 $1,052.40 $ 7.17
Hypothetical @ $1,000 $1,018.15 $ 7.05
- ----------------------------------------------------------------------
CLASS M
Actual $1,000 $1,048.30 $11.07
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS N
Actual $1,000 $1,049.00 $11.07
Hypothetical @ $1,000 $1,014.33 $10.89
- ----------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,053.50 $ 6.04
Hypothetical @ $1,000 $1,019.25 $ 5.94
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.45%, 2.15%,
2.15%, 2.15%, 1.39%, 2.15%, 2.15% and 1.17% for classes A, B, C, H, L, M, N
and Y, respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
77
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- 68.4%
BASIC MATERIALS -- 4.5%
432 3M Co. ........................................... $ 33,534
93 Air Products and Chemicals, Inc. ................. 4,935
749 Alcoa, Inc. ...................................... 24,343
508 DuPont (E.I.) de Nemours & Co. ................... 21,791
561 Gillette Co. ..................................... 23,283
126 Rio Tinto plc I................................... 3,303
----------
111,189
----------
CAPITAL GOODS -- 3.2%
303 Illinois Tool Works, Inc. ........................ 27,961
365 Northrop Grumman Corp. ........................... 18,909
331 United Technologies Corp. ........................ 30,705
----------
77,575
----------
CONSUMER CYCLICAL -- 5.1%
435 Caterpillar, Inc. ................................ 35,043
449 Costco Wholesale Corp. ........................... 21,525
1,024 Gap, Inc. ........................................ 20,456
628 Home Depot, Inc. ................................. 25,798
259 NIKE, Inc. Class B................................ 21,067
37 Target Corp. ..................................... 1,856
----------
125,745
----------
CONSUMER STAPLES -- 6.9%
421 Anheuser-Busch Companies, Inc. ................... 21,044
739 Coca-Cola Co. .................................... 30,036
529 Colgate-Palmolive Co. ............................ 23,586
456 General Mills, Inc. .............................. 20,182
660 PepsiCo, Inc. .................................... 32,728
833 Procter & Gamble Co. ............................. 42,648
----------
170,224
----------
ENERGY -- 5.8%
163 BHP Billiton Ltd. ADR............................. 3,361
611 ChevronTexaco Corp. .............................. 32,430
59 ConocoPhillips.................................... 4,957
1,500 Exxon Mobil Corp. ................................ 73,810
86 Occidental Petroleum Corp. ....................... 4,824
380 Schlumberger Ltd. ................................ 23,930
----------
143,312
----------
FINANCE -- 12.7%
578 American Express Co. ............................. 30,685
820 American International Group, Inc. ............... 49,805
1,182 Bank of America Corp. ............................ 52,946
1,714 Citigroup, Inc. .................................. 76,029
271 Fannie Mae........................................ 18,983
6 General Growth Properties Warrants BI............. 5
61 General Growth Properties, Inc. .................. 2,016
611 Marsh & McLennan Companies, Inc. ................. 16,903
483 Morgan Stanley.................................... 24,676
552 St. Paul Travelers Companies, Inc. ............... 18,757
502 State Street Corp. ............................... 22,602
----------
313,407
----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
HEALTH CARE -- 9.7%
488 Abbott Laboratories............................... $ 20,812
603 Amgen, Inc. B..................................... 34,262
42 AstraZeneca plc ADR............................... 1,718
258 Genzyme Corp. B................................... 13,527
677 Lilly (Eli) & Co. ................................ 37,147
762 Medtronic, Inc. .................................. 38,925
2,502 Pfizer, Inc. ..................................... 72,429
512 Wyeth............................................. 20,289
----------
239,109
----------
SERVICES -- 3.3%
774 Accenture Ltd. Class A B.......................... 18,734
266 FedEx Corp. ...................................... 24,201
294 Marriott International, Inc. Class A.............. 16,026
602 Viacom, Inc. Class B.............................. 21,967
----------
80,928
----------
TECHNOLOGY -- 17.2%
937 Applied Materials, Inc. B......................... 15,081
360 Broadcom Corp. Class A B.......................... 9,749
2,117 Cisco Systems, Inc. B............................. 40,675
1,059 EMC Corp. B....................................... 13,624
546 First Data Corp. ................................. 22,547
2,575 General Electric Co. ............................. 87,849
1,440 Hewlett-Packard Co. .............................. 26,862
1,384 Intel Corp. ...................................... 30,812
409 Lockheed Martin Corp. ............................ 22,532
3,254 Microsoft Corp. .................................. 91,088
1,142 Motorola, Inc. ................................... 19,718
2,538 Time Warner, Inc. B............................... 42,229
----------
422,766
----------
Total common stock
(cost $1,603,637)............................... $1,684,255
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 2.7%
FINANCE -- 1.8%
$ 10,000 Chase Manhattan Auto Owner Trust,
4.21%, 1-15-2009................................ $ 10,129
10,000 Citibank Credit Card Issuance Trust,
5.65%, 6-16-2008................................ 10,451
1,000 Citibank Credit Card Master Trust I,
6.90%, 11-15-2006............................... 1,002
10,000 MBNA Credit Card Master Note Trust,
4.95%, 6-15-2009................................ 10,445
10,000 Peco Energy Transition Trust,
6.13%, 3-1-2009................................. 10,838
1,500 Standard Credit Card Master Trust,
8.45%, 1-7-2007................................. 1,518
----------
44,383
----------
TRANSPORTATION -- 0.4%
10,000 Connecticut RRB Special Purpose Trust,
6.21%, 12-30-2011............................... 11,103
----------
</Table>
The accompanying notes are an integral part of this financial statement.
78
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- (CONTINUED)
UTILITIES -- 0.5%
$ 10,000 PSE&G Transition Funding LLC,
6.61%, 6-15-2015................................ $ 11,477
----------
Total asset backed and
commercial mortgage securities
(cost $64,734).................................. $ 66,963
----------
CORPORATE BONDS: INVESTMENT GRADE -- 11.0%
BASIC MATERIALS -- 0.8%
4,000 Alcan, Inc.,
6.45%, 3-15-2011................................ $ 4,480
7,000 Alcoa, Inc.,
7.375%, 8-1-2010................................ 8,196
7,000 Rohm & Haas Co.,
7.40%, 7-15-2009................................ 8,039
----------
20,715
----------
CAPITAL GOODS -- 0.4%
2,000 Rockwell Automation, Inc.,
6.70%, 1-15-2028................................ 2,286
7,000 United Technologies Corp.,
7.125%, 11-15-2010.............................. 8,129
----------
10,415
----------
CONSUMER CYCLICAL -- 0.5%
4,000 Dayton Hudson Corp.,
5.875%, 11-1-2008............................... 4,345
250 Sysco Corp.,
6.50%, 8-1-2028................................. 285
6,000 Wal-Mart Stores, Inc.,
6.875%, 8-10-2009............................... 6,831
----------
11,461
----------
CONSUMER STAPLES -- 1.9%
4,000 Anheuser-Busch Companies, Inc.,
7.55%, 10-1-2030................................ 5,099
5,000 Archer-Daniels-Midland Co.,
7.00%, 2-1-2031................................. 5,972
2,000 Archer-Daniels-Midland Co.,
8.125%, 6-1-2012................................ 2,483
4,000 Coca-Cola Enterprises, Inc.,
5.75%, 11-1-2008................................ 4,303
2,000 Colgate-Palmolive Co.,
5.58%, 11-6-2008................................ 2,151
4,906 ConAgra Foods, Inc.,
6.70%, 8-1-2027................................. 5,609
2,000 Hershey Foods Corp.,
7.20%, 8-15-2027................................ 2,438
500 Pepsi Bottling Group, Inc.,
7.00%, 3-1-2029................................. 599
3,000 PepsiAmericas, Inc.,
5.95%, 2-15-2006................................ 3,130
3,000 PepsiAmericas, Inc.,
6.375%, 5-1-2009................................ 3,309
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
CONSUMER STAPLES -- (CONTINUED)
$ 7,000 Procter & Gamble Co.,
9.36%, 1-1-2021................................. $ 9,452
2,300 Weyerhaeuser Co.,
7.375%, 3-15-2032............................... 2,683
----------
47,228
----------
ENERGY -- 0.5%
7,000 Atlantic Richfield Co.,
5.90%, 4-15-2009................................ 7,638
4,000 National Fuel Gas Co.,
6.00%, 3-1-2009................................. 4,311
----------
11,949
----------
FINANCE -- 4.5%
3,675 ACE INA Holdings, Inc.,
5.875%, 6-15-2014............................... 3,820
2,000 Allstate Corp.,
6.75%, 5-15-2018................................ 2,293
250 American General Corp.,
6.625%, 2-15-2029............................... 282
4,000 AXA Financial, Inc.,
7.00%, 4-1-2028................................. 4,616
1,475 Bank of America Corp.,
5.875% 2-15-2009................................ 1,601
3,000 Bank of America Corp.,
7.40%, 1-15-2011................................ 3,515
2,000 Bayerische Landesbank NY,
5.65%, 2-1-2009................................. 2,152
2,000 Berkshire Hathaway, Inc.,
3.375%, 10-15-2008 M ........................... 1,993
500 BSCH Issuance Ltd.,
7.625%, 11-3-2009............................... 583
750 Citigroup, Inc.,
3.625%, 2-9-2009 H.............................. 750
1,600 Citigroup, Inc.,
6.00%, 10-30-2033............................... 1,649
500 Citigroup, Inc.,
6.50%, 1-18-2011................................ 565
2,725 ERAC USA Finance Co.,
7.35%, 6-15-2008 M ............................. 3,055
1,500 Export-Import Bank of Korea,
4.125%, 2-10-2009 M ............................ 1,515
10,000 Financing Corp.,
9.80%, 4-6-2018................................. 14,842
545 First Union National Bank,
5.80%, 12-1-2008................................ 587
4,000 General Motors Acceptance Corp.,
5.625%, 5-15-2009............................... 4,039
2,600 HSBC Bank USA, Inc.,
3.875%, 9-15-2009............................... 2,606
4,000 International Lease Finance Corp.,
5.75%, 2-15-2007................................ 4,225
6,045 J.P. Morgan Chase & Co.,
5.125%, 9-15-2014............................... 6,142
2,000 Jackson National Life Insurance Co.,
8.15%, 3-15-2027 M ............................. 2,498
</Table>
The accompanying notes are an integral part of this financial statement.
79
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 4,000 John Hancock,
7.375%, 2-15-2024 M ............................ $ 4,692
250 KeyCorp Capital II,
6.875%, 3-17-2029............................... 270
2,335 Liberty Mutual Group,
5.75%, 3-15-2014 M ............................. 2,289
1,000 MBIA, Inc.,
7.00%, 12-15-2025............................... 1,130
3,650 Metlife, Inc.,
6.375%, 6-15-2034............................... 3,892
250 National City Corp.,
6.875%, 5-15-2019............................... 291
3,100 New England Mutual Life Insurance Co.,
7.875%, 2-15-2024 M ............................ 3,801
2,000 Prudential Funding LLC,
6.75%, 9-15-2023 M ............................. 2,144
500 Prudential Insurance Co. of America,
6.375%, 7-23-2006 M ............................ 531
500 ReliaStar Financial Corp.,
8.00%, 10-30-2006............................... 550
250 Republic New York Capital I,
7.75%, 11-15-2026............................... 276
500 Salomon Smith Barney Holdings, Inc.,
5.875%, 3-15-2006............................... 521
200 State Street Corp.,
7.65%, 6-15-2010................................ 238
500 Texaco Capital, Inc.,
8.625%, 6-30-2010............................... 617
3,000 Torchmark Corp.,
8.25%, 8-15-2009................................ 3,447
2,000 Toyota Motor Credit Corp.,
5.50%, 12-15-2008............................... 2,145
4,000 United Health Group Inc.,
5.00%, 08-15-2014............................... 4,052
3,100 US Bank NA,
4.95%, 10-30-2014............................... 3,151
250 Verizon Global Funding Corp.,
7.25%, 12-1-2010................................ 292
250 Verizon Global Funding Corp.,
7.75%, 12-1-2030................................ 307
3,000 Wachovia Corp.,
5.625%, 12-15-2008.............................. 3,232
4,000 Wells Fargo Bank N.A.,
6.45%, 2-1-2011................................. 4,506
4,165 XL Capital Europe plc,
6.50%, 1-15-2012................................ 4,547
----------
110,249
----------
HEALTH CARE -- 0.7%
4,000 Becton, Dickinson & Co.,
6.70%, 8-1-2028................................. 4,585
4,000 Cardinal Health, Inc.,
6.75%, 2-15-2011 H.............................. 4,368
685 CVS Corp.,
4.875%, 9-15-2014 M ............................ 691
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
HEALTH CARE -- (CONTINUED)
$ 1,600 Pharmacia Corp.,
6.60%, 12-1-2028................................ $ 1,859
4,000 Wyeth,
6.95%, 3-15-2011................................ 4,486
----------
15,989
----------
SERVICES -- 1.0%
7,000 Comcast Cable Communications, Inc.,
6.875%, 6-15-2009............................... 7,831
500 Comcast Cable Communications, Inc.,
8.50%, 5-1-2027................................. 654
4,000 Federal Express Corp.,
3.50%, 4-1-2009................................. 3,948
7,000 USA Networks, Inc.,
6.75%, 11-15-2005............................... 7,268
4,000 Walt Disney Co.,
6.375%, 3-1-2012................................ 4,456
----------
24,157
----------
TECHNOLOGY -- 0.5%
2,000 Danaher Corp.,
6.00%, 10-15-2008............................... 2,169
7,725 General Electric Co.,
5.00%, 2-1-2013................................. 8,008
1,000 New York Telephone Co.,
6.00%, 4-15-2008................................ 1,066
250 Royal KPN N.V.,
8.375%, 10-1-2030............................... 326
250 Telecomunicaciones de Puerto Rico, Inc.,
6.65%, 5-15-2006................................ 263
500 Vodafone Group plc,
7.875%, 2-15-2030............................... 643
----------
12,475
----------
UTILITIES -- 0.2%
500 Alabama Power Co.,
7.125%, 10-1-2007............................... 552
255 Chilquinta Energia Finance Co. LLC,
6.62%, 4-1-2011 M .............................. 285
2,000 Kansas City Power & Light Co.,
7.125%, 12-15-2005.............................. 2,103
1,150 Northern Border Pipeline Co.,
7.75%, 9-1-2009................................. 1,335
250 TransCanada Pipelines Ltd.,
6.49%, 1-21-2009................................ 274
----------
4,549
----------
Total corporate bonds:
investment grade
(cost $245,918)................................. $ 269,187
----------
U.S. GOVERNMENT SECURITIES -- 13.6%
U.S. TREASURY SECURITIES -- 13.6%
72,900 1.50% 2006 H[ ]................................... 72,043
107,900 1.875% 2006....................................... 107,323
61,400 2.375% 2006 H..................................... 61,290
20,800 5.375% 2031 H..................................... 22,592
</Table>
The accompanying notes are an integral part of this financial statement.
80
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
U.S. GOVERNMENT SECURITIES -- (CONTINUED)
U.S. TREASURY SECURITIES -- (CONTINUED)
$ 60,240 6.25% 2023........................................ $ 71,159
----------
Total U.S. government securities
(cost $333,163)................................. $ 334,407
----------
U.S. GOVERNMENT AGENCIES -- 3.2%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.1%
3,750 2.50% 2013........................................ $ 3,656
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.3%
6,125 5.00% 2019........................................ 6,259
246 6.30% 2008........................................ 264
10 9.00% 2016 -- 2021................................ 11
----------
6,534
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 2.8%
22,036 5.00% 2033 -- 2034 *.............................. 22,124
25,506 5.50% 2016 -- 2033................................ 26,321
6,339 6.00% 2023 -- 2030................................ 6,611
5,573 6.50% 2026 -- 2029................................ 5,908
5,900 7.00% 2023 -- 2032................................ 6,303
1,046 8.00% 2029 -- 2031................................ 1,141
121 9.00% 2023........................................ 137
----------
68,545
----------
Total U.S. government agencies
(cost $77,255).................................. $ 78,735
----------
Total long-term investments
(cost $2,324,707)............................... $2,433,547
----------
SHORT-TERM INVESTMENTS -- 7.4%
FINANCE -- 1.3%
2,333 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 2,333
6,036 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 6,036
643 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 643
4,827 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 4,827
4,424 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 4,424
781 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 781
12,069 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 12,069
----------
31,113
----------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 6.1%
$ 99,855 BNY Institutional Cash Reserve Fund............... $ 99,855
51,423 Lehman Brothers Repurchase Agreement.............. 51,423
----------
151,278
----------
Total short-term investments
(cost $182,391)................................. $ 182,391
----------
Total investments in securities
(cost $2,507,098) O............................. $2,615,938
----------
</Table>
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 0.85% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $2,524,792 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $184,675
Unrealized depreciation........................ (93,529)
--------
Net unrealized appreciation.................... $ 91,146
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $23,494, which represents 0.96%
of total net assets.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $3,308, which represents 0.13% of total
net assets.
* The cost of securities purchased on a when-issued basis at October 31, 2004
was $12,000.
H Security is fully or partially on loan at October 31, 2004.
[ ]Security pledged as initial margin deposit for open futures contracts
at October 31, 2004.
Futures contracts outstanding at October 31, 2004:
<Table>
<Caption>
UNREALIZED
NUMBER DEPRECIATION
OF AT
DESCRIPTION CONTRACTS POSITION EXPIRATION 10/31/2004
----------- --------- -------- ---------- ------------
CBT 10 Year U.S.
Treasury Note
futures contracts 165 Short December 2004 $(26)
</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.
81
THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
AFFILIATED INVESTMENT COMPANIES -- 97.3%
EQUITY FUNDS -- 97.3%
40 Hartford Capital Appreciation Fund, Class Y B..... $ 1,306
297 Hartford Disciplined Equity Fund, Class Y......... 3,264
61 Hartford Dividend and Growth Fund, Class Y........ 1,088
166 Hartford Global Leaders Fund, Class Y B........... 2,829
146 Hartford Growth Fund, Class Y B................... 2,393
278 Hartford International Capital Appreciation Fund,
Class Y......................................... 3,264
83 Hartford Small Company Fund, Class Y B............ 1,305
79 Hartford SmallCap Growth Fund, Class Y B.......... 1,958
314 Hartford Value Fund, Class Y...................... 3,046
92 Hartford Value Opportunities Fund, Class Y B...... 1,305
--------
Total equity funds
(cost $20,896).................................. $ 21,758
--------
Total investments in affiliated investment
companies
(cost $20,896) O................................ $ 21,758
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $20,903 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation............................ $855
Unrealized depreciation............................ --
----
Net unrealized appreciation........................ $855
====
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of this financial statement.
82
THE HARTFORD BALANCED ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
AFFILIATED INVESTMENT COMPANIES -- 97.5%
EQUITY FUNDS -- 58.5%
317 Hartford Capital Appreciation Fund, Class Y B..... $ 10,225
517 Hartford Disciplined Equity Fund, Class Y......... 5,681
333 Hartford Global Leaders Fund, Class Y B........... 5,681
208 Hartford Growth Fund, Class Y B................... 3,408
191 Hartford Growth Opportunities Fund, Class Y B..... 4,544
969 Hartford International Capital Appreciation Fund,
Class Y......................................... 11,361
361 Hartford Small Company Fund, Class Y B............ 5,681
455 Hartford Stock Fund, Class Y B.................... 7,953
936 Hartford Value Fund, Class Y...................... 9,089
321 Hartford Value Opportunities Fund, Class Y B...... 4,544
--------
Total equity funds
(cost $65,671).................................. $ 68,167
--------
FIXED INCOME FUNDS -- 36.1%
973 Hartford High Yield Fund, Class Y................. $ 7,953
932 Hartford Inflation Plus Fund, Class Y............. 10,225
1,467 Hartford Short Duration Fund, Class Y............. 14,770
822 Hartford Total Return Bond Fund, Class Y.......... 9,089
--------
Total fixed income funds
(cost $41,726).................................. $ 42,037
--------
MONEY MARKET FUND -- 2.9%
3,405 Hartford Money Market Fund, Class Y............... $ 3,405
--------
Total money market fund
(cost $3,405)................................... $ 3,405
--------
Total investments in securities
(cost $110,802) O............................... $113,609
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $110,801 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,825
Unrealized depreciation.......................... (17)
------
Net unrealized appreciation...................... $2,808
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of this financial statement.
83
THE HARTFORD CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- 93.4%
BASIC MATERIALS -- 11.3%
1,995 Allegheny Technologies, Inc. ..................... $ 33,543
1,256 Apex Silver Mines Ltd. BH......................... 23,568
594 Cameco Corp. ..................................... 48,145
3,209 Companhia Vale do Rio Doce ADR H.................. 67,894
1,088 Dow Chemical Co. ................................. 48,877
1,077 Engelhard Corp. .................................. 30,471
1,020 International Steel Group, Inc. B................. 37,654
462 Kimberly-Clark Corp. ............................. 27,579
2,900 Lyondell Chemical Co. ............................ 66,642
474 Peabody Energy Corp. ............................. 30,219
4,570 Rio Tinto plc I ................................. 119,892
4,095 Smurfit-Stone Container Corp. BH.................. 71,093
3,879 Tek Cominco Ltd. Class B.......................... 92,668
915 United States Steel Corp. H....................... 33,606
4,703 Xstrata plc BI.................................... 72,898
----------
804,749
----------
CAPITAL GOODS -- 5.7%
876 Deere & Co. ...................................... 52,355
1,476 Honeywell International, Inc. .................... 49,708
995 Ingersoll-Rand Co. Class A........................ 68,111
735 Parker-Hannifin Corp. ............................ 51,899
3,892 Tyco International Ltd. H......................... 121,233
4,153 Xerox Corp. B..................................... 61,343
----------
404,649
----------
CONSUMER CYCLICAL -- 10.8%
672 eBay, Inc. B...................................... 65,555
3,000 Gap, Inc. ........................................ 59,940
12,211 Kingfisher plc I.................................. 67,747
683 Lennar Corp. Class A.............................. 30,703
966 Neiman-Marcus Group, Inc. Class A................. 58,786
296 Nintendo Co. Ltd. I............................... 33,245
2,615 Penney (J.C.) Co., Inc. H......................... 90,460
210 Puma AG I......................................... 52,536
720 Renault S.A. I.................................... 60,231
3,491 Safeway, Inc. B................................... 63,674
4,778 Toyota Motor Corp. I.............................. 185,000
----------
767,877
----------
CONSUMER STAPLES -- 3.8%
2,237 Bunge Ltd. ....................................... 106,782
1,472 EnCana Corp. ..................................... 72,714
10 Japan Tobacco, Inc. I............................. 86,324
----------
265,820
----------
ENERGY -- 8.6%
2,787 BHP Billiton Ltd. ADR H........................... 57,597
994 CONSOL Energy 1 Pipe Private Placement M ......... 35,177
953 Devon Energy Corp. ............................... 70,464
1,000 Halliburton Co. .................................. 37,040
1,276 Petro-Canada...................................... 69,502
3,146 Sasol Ltd. ADR.................................... 63,335
1,490 SK Corp. I........................................ 78,135
2,848 Suncor Energy, Inc. .............................. 97,110
239 Valero Energy Corp. .............................. 10,248
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
ENERGY -- (CONTINUED)
798 Weatherford International Ltd. B.................. $ 41,677
1,447 XTO Energy, Inc. ................................. 48,293
----------
608,578
----------
FINANCE AND INSURANCE -- 18.3%
3,028 ACE Ltd. ......................................... 115,261
968 American Capital Strategies Ltd. ................. 29,953
770 American International Group, Inc. ............... 46,725
1,277 Bank of America Corp. ............................ 57,205
1,852 Bayerische Hypo-und Vereinsbank AG BI............. 36,305
3,866 Citigroup, Inc. .................................. 171,548
4,863 Countrywide Financial Corp. ...................... 155,285
1,192 Freddie Mac....................................... 79,367
83 General Growth Properties Warrants IB............. 63
903 General Growth Properties, Inc. .................. 29,793
302 Golden West Financial Corp. ...................... 35,251
4,733 Host Marriott Corp. H............................. 68,870
1,709 ICICI Bank Ltd. BM................................ 11,567
1,166 iStar Financial, Inc. ............................ 48,308
10 Mitsubishi Tokyo Financial Group, Inc. *I......... 81,528
700 ORIX Corp. I...................................... 81,801
1,093 Spirit Finance BM................................. 10,929
2,781 St. Paul Travelers Companies, Inc. ............... 94,439
4,300 Standard Bank Group Ltd. ......................... 37,570
531 Takefuji Corp. I.................................. 33,495
300 UBS AG I.......................................... 21,655
2,091 Uniao de Bancos Brasileiros S.A. GDR.............. 55,312
----------
1,302,230
----------
HEALTH CARE -- 6.1%
1,500 AstraZeneca plc ADR H............................. 61,800
672 Elan Corp. plc ADR BH............................. 17,338
1,611 IVAX Corp. B...................................... 29,152
70 Kose Corp. ....................................... 2,733
2,527 McKesson Corp. ................................... 67,364
1,607 Millennium Pharmaceuticals, Inc. B................ 20,864
2,097 Novartis AG ADR................................... 100,682
156 OSI Pharmaceuticals, Inc. BH...................... 10,137
4,230 Pfizer, Inc. ..................................... 122,456
----------
432,526
----------
SERVICES -- 1.3%
1,454 Fluor Corp. ...................................... 67,538
346 Omnicom Group, Inc. .............................. 27,274
----------
94,812
----------
TECHNOLOGY -- 25.6%
7,686 Altera Corp. B.................................... 174,712
1,789 America Movil S.A. de C.V. ADR.................... 78,712
1,980 Amphenol Corp. Class A B.......................... 67,984
3,400 Broadcom Corp. Class A BH......................... 91,970
2,500 Cisco Systems, Inc. B............................. 48,025
1,386 Cognex Corp. ..................................... 35,476
715 Cooper Industries Ltd. Class A.................... 45,682
1,002 Corning, Inc. B................................... 11,468
616 Electronic Arts, Inc. B........................... 27,648
2,937 EMC Corp. B....................................... 37,794
</Table>
The accompanying notes are an integral part of this financial statement.
84
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
17,088 Hon Hai Precision Industry Co. Ltd. I............. $ 62,893
1,622 IAC/Interactive Corp. B........................... 35,070
785 International Business Machines Corp. ............ 70,418
796 Lam Research Corp. BH............................. 20,725
4,300 Microsoft Corp. .................................. 120,357
350 Mobile Telesystems ADR............................ 50,792
4,926 Motorola, Inc. ................................... 85,016
9,593 Nextel Communications, Inc. Class A B............. 254,127
2,308 NVIDIA Corp. B.................................... 33,401
530 Research In Motion Ltd. B......................... 46,764
541 Samsung Electronics Co. Ltd. I.................... 212,660
4,153 Time Warner, Inc. B............................... 69,103
2,037 VeriSign, Inc. B.................................. 54,645
2,175 Yahoo!, Inc. B.................................... 78,699
----------
1,814,141
----------
TRANSPORTATION -- 1.9%
2,134 CSX Corp. ........................................ 77,902
2,150 JetBlue Airways Corp. BH.......................... 47,410
900 Northwest Airlines Corp. BH....................... 7,965
----------
133,277
----------
Total common stock
(cost $5,710,766)............................... $6,628,659
----------
PREFERRED STOCKS -- 0.5%
ENERGY -- 0.5%
1,000 Petroleo Brasileiro S.A. ADR...................... $ 32,600
----------
TECHNOLOGY -- 0.0%
6,325 SensAble Technologies, Inc. Class C Private
Placement IV.................................... @@
----------
Total preferred stocks
(cost $23,102).................................. $ 32,600
----------
Total long-term investments
(cost $5,733,868)............................... $6,661,259
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 9.6%
FINANCE -- 6.3%
$ 33,478 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 33,478
86,598 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 86,598
9,215 Deutche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 9,215
69,258 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 69,258
63,475 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 63,475
11,210 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 11,210
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
FINANCE -- (CONTINUED)
$173,145 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ $ 173,145
----------
446,379
----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 3.3%
196,640 BNY Institutional Cash Reserve Fund............... 196,640
3,773 Evergreen Institutional Money Market Fund......... 3,773
32,714 Lehman Brothers Repurchase Agreement.............. 32,714
----------
233,127
----------
Total short-term investments
(cost $679,506)................................. $ 679,506
----------
Total investments in securities
(cost $6,413,374) O............................. $7,340,765
==========
</Table>
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 34.09% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $6,417,806 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation....................... $1,078,242
Unrealized depreciation....................... (155,283)
----------
Net unrealized appreciation................... $ 922,959
==========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
V The following securities are considered illiquid. Securities identified
below as 144A are 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>
<Caption>
PERIOD
ACQUIRED SHARES/PAR SECURITY COST BASIS
-------- ---------- -------- ----------
SensAble Technologies,
Inc.
2000 6,325 $4,000
</Table>
The value of this security at October 31, 2004 rounded to zero.
M 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, 2004, was $57,673, which represents
0.81% of total net assets.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $1,286,408, which represents 18.12% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
The accompanying notes are an integral part of this financial statement.
85
THE HARTFORD CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DELIVERY DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ------------- --------------
Japanese Yen Buy $ 10,550 $ 10,546 11/04/2004 $ 4
South African Rand Buy 146,718 128,216 12/31/2004 18,502
Japanese Yen Sell 5,351 5,341 11/01/2004 (10)
Japanese Yen Sell 5,240 5,235 11/02/2004 (5)
South African Rand Sell 146,718 123,633 12/31/2004 (23,085)
--------
$ (4,594)
========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
DIVERSIFICATION BY COUNTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 0.8%
- -------------------------------------------------------------------
Bermuda 0.6
- -------------------------------------------------------------------
Brazil 2.2
- -------------------------------------------------------------------
Canada 6.0
- -------------------------------------------------------------------
Cayman Islands 0.3
- -------------------------------------------------------------------
France 0.8
- -------------------------------------------------------------------
Germany 1.3
- -------------------------------------------------------------------
India 0.2
- -------------------------------------------------------------------
Ireland 0.2
- -------------------------------------------------------------------
Japan 7.1
- -------------------------------------------------------------------
Mexico 1.1
- -------------------------------------------------------------------
Russia 0.7
- -------------------------------------------------------------------
South Africa 1.4
- -------------------------------------------------------------------
South Korea 4.1
- -------------------------------------------------------------------
Switzerland 2.7
- -------------------------------------------------------------------
Taiwan 0.9
- -------------------------------------------------------------------
United Kingdom 3.5
- -------------------------------------------------------------------
United States 69.6
- -------------------------------------------------------------------
Other Assets & Liabilities -3.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
86
THE HARTFORD CONSERVATIVE ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
AFFILIATED INVESTMENT COMPANIES -- 98.2%
EQUITY FUNDS -- 39.3%
106 Hartford Capital Appreciation Fund, Class Y B..... $ 3,418
133 Hartford Disciplined Equity Fund, Class Y......... 1,465
172 Hartford Global Leaders Fund, Class Y B........... 2,930
208 Hartford International Capital Appreciation Fund,
Class Y......................................... 2,442
186 Hartford MidCap Value Fund, Class Y B............. 2,442
279 Hartford Stock Fund, Class Y B.................... 4,883
138 Hartford Value Opportunities Fund, Class Y B...... 1,953
-------
Total equity funds
(cost $18,838).................................. $19,533
-------
FIXED INCOME FUNDS -- 54.0%
657 Hartford High Yield Fund, Class Y................. $ 5,371
445 Hartford Inflation Plus Fund, Class Y............. 4,883
970 Hartford Short Duration Fund, Class Y............. 9,766
618 Hartford Total Return Bond Fund, Class Y.......... 6,836
-------
Total fixed income funds
(cost $26,644).................................. $26,856
-------
MONEY MARKET FUND -- 4.9%
2,439 Hartford Money Market Fund, Class Y............... $ 2,439
-------
Total money market fund
(cost $2,439)................................... $ 2,439
-------
Total investments in affiliated investment
companies
(cost $47,921) O................................ $48,828
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $47,921 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation............................ $914
Unrealized depreciation............................ (7)
----
Net unrealized appreciation........................ $907
====
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of this financial statement.
87
THE HARTFORD DISCIPLINED EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 97.4%
BASIC MATERIALS -- 4.9%
39 3M Co. ........................................... $ 3,002
36 Air Products and Chemicals, Inc. ................. 1,915
96 Gillette Co. ..................................... 3,961
112 Kimberly-Clark Corp. ............................. 6,677
26 Temple-Inland, Inc. .............................. 1,543
--------
17,098
--------
CAPITAL GOODS -- 6.2%
53 General Dynamics Corp. ........................... 5,382
119 Graco, Inc. ...................................... 4,080
10 Ingersoll-Rand Co. Class A........................ 650
55 Pitney Bowes, Inc. ............................... 2,406
95 United Technologies Corp. ........................ 8,846
--------
21,364
--------
CONSUMER CYCLICAL -- 7.1%
168 Delphi Corp. ..................................... 1,409
115 Gap, Inc. ........................................ 2,304
37 Genuine Parts Co. ................................ 1,460
76 Lennar Corp. Class A.............................. 3,396
178 Ltd. Brands, Inc. ................................ 4,398
100 McDonald's Corp. ................................. 2,921
47 NIKE, Inc. Class B................................ 3,854
103 Supervalu, Inc. .................................. 3,029
34 Wal-Mart Stores, Inc. ............................ 1,806
--------
24,577
--------
CONSUMER STAPLES -- 7.6%
128 Altria Group, Inc. ............................... 6,188
125 Coca-Cola Co. .................................... 5,087
145 PepsiCo, Inc. .................................... 7,199
44 UST, Inc. ........................................ 1,823
97 Weyerhaeuser Co. ................................. 6,045
--------
26,342
--------
ENERGY -- 8.7%
104 ChevronTexaco Corp. .............................. 5,540
63 ConocoPhillips.................................... 5,320
29 Devon Energy Corp. ............................... 2,108
88 Exxon Mobil Corp. ................................ 4,341
105 Marathon Oil Corp. ............................... 4,005
69 Occidental Petroleum Corp. ....................... 3,841
91 Unocal Corp. ..................................... 3,812
30 Valero Energy Corp. .............................. 1,289
--------
30,256
--------
FINANCE -- 23.6%
96 ACE Ltd. ......................................... 3,635
295 Bank of America Corp. ............................ 13,213
77 Capital One Financial Corp. ...................... 5,657
324 Citigroup, Inc. .................................. 14,374
55 Comerica, Inc. ................................... 3,371
171 Countrywide Financial Corp. ...................... 5,450
68 Fannie Mae........................................ 4,742
72 Freddie Mac....................................... 4,762
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
FINANCE -- (CONTINUED)
3 General Growth Properties Warrants BI............. $ 2
27 General Growth Properties, Inc. .................. 874
13 Golden West Financial Corp. ...................... 1,485
15 Goldman Sachs Group, Inc. ........................ 1,427
77 MBIA, Inc. ....................................... 4,438
199 Medco Health Solutions, Inc. B.................... 6,731
60 Regions Financial Corp. .......................... 2,101
173 St. Paul Travelers Companies, Inc. ............... 5,861
50 XL Capital Ltd. Class A........................... 3,610
--------
81,733
--------
HEALTH CARE -- 10.1%
75 Abbott Laboratories............................... 3,189
72 Amgen, Inc. B..................................... 4,112
28 Becton, Dickinson & Co. .......................... 1,454
26 Cephalon, Inc. B.................................. 1,235
50 Forest Laboratories, Inc. B....................... 2,212
85 Genzyme Corp. B................................... 4,470
64 Gilead Sciences, Inc. B........................... 2,206
16 Hospira, Inc. B................................... 513
196 King Pharmaceuticals, Inc. B...................... 2,139
365 Pfizer, Inc. ..................................... 10,563
151 Schering-Plough Corp. ............................ 2,742
--------
34,835
--------
SERVICES -- 4.7%
132 Accenture Ltd. Class A B.......................... 3,198
99 Cendant Corp. .................................... 2,034
55 Comcast Corp. Class A B........................... 1,627
24 FedEx Corp. ...................................... 2,214
34 Gannett Co., Inc. ................................ 2,804
33 Omnicom Group, Inc. .............................. 2,620
66 Waste Management, Inc. ........................... 1,868
--------
16,365
--------
TECHNOLOGY -- 22.0%
38 Adobe Systems, Inc. .............................. 2,152
41 CenturyTel, Inc. ................................. 1,313
391 Cisco Systems, Inc. B............................. 7,503
147 Dell, Inc. B...................................... 5,143
99 First Data Corp. ................................. 4,079
155 General Electric Co. ............................. 5,295
247 Intel Corp. ...................................... 5,487
79 International Business Machines Corp. ............ 7,099
471 Microsoft Corp. .................................. 13,169
334 Motorola, Inc. ................................... 5,770
144 National Semiconductor Corp. ..................... 2,403
157 Nextel Communications, Inc. Class Al.............. 4,162
198 Oracle Corp. B.................................... 2,504
51 Scientific-Atlanta, Inc. ......................... 1,383
93 Sprint Corp. ..................................... 1,946
41 Tektronix, Inc. .................................. 1,247
331 Time Warner, Inc. B............................... 5,506
--------
76,161
--------
</Table>
The accompanying notes are an integral part of this financial statement.
88
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- (CONTINUED)
UTILITIES -- 2.5%
28 Ameren Corp. ..................................... $ 1,349
182 Exelon Corp. ..................................... 7,204
--------
8,553
--------
Total common stock
(cost $311,502)................................. $337,284
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 2.5%
FINANCE -- 2.5%
$ 658 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 658
1,702 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,702
182 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 182
1,361 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 1,361
1,248 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,248
220 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 220
3,404 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 3,404
--------
Total short-term investments
(cost $8,775)................................... $ 8,775
--------
Total investments in securities
(cost $320,277) O............................... $346,059
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $321,127 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $34,279
Unrealized depreciation......................... (9,347)
-------
Net unrealized appreciation..................... $24,932
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I 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
at October 31, 2004, was $2, which represents 0.00% of total net assets.
[ ]Cash of $400 is pledged as initial margin deposit for open futures
contracts at October 31, 2004.
Futures contracts outstanding at October 31, 2004:
<Table>
<Caption>
UNREALIZED
NUMBER APPRECIATION
OF AT
DESCRIPTION CONTRACTS POSITION EXPIRATION 10/31/2004
----------- --------- -------- ---------- ------------
S&P 500 E-mini
Futures 125 Long December 2004 $91
</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.
89
THE HARTFORD DIVIDEND AND GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- 96.6%
BASIC MATERIALS -- 9.3%
811 Abitibi-Consolidated, Inc. ....................... $ 4,833
887 Alcoa, Inc. ...................................... 28,837
213 Bowater, Inc. H................................... 7,828
276 Dow Chemical Co. ................................. 12,408
1,149 DuPont (E.I.) de Nemours & Co. ................... 49,265
265 Gillette Co. ..................................... 11,005
745 International Paper Co. .......................... 28,671
395 Kimberly-Clark Corp. ............................. 23,552
264 Rio Tinto plc ADR................................. 28,010
618 Rohm & Haas Co. .................................. 26,210
193 Temple-Inland, Inc. .............................. 11,434
----------
232,053
----------
CAPITAL GOODS -- 5.7%
355 General Dynamics Corp. ........................... 36,242
528 Honeywell International, Inc. .................... 17,793
448 Parker-Hannifin Corp. ............................ 31,649
552 Pitney Bowes, Inc. ............................... 24,163
190 United Technologies Corp. ........................ 17,664
1,091 Xerox Corp. BH.................................... 16,113
----------
143,624
----------
CONSUMER CYCLICAL -- 6.3%
334 Avery Dennison Corp. ............................. 20,320
322 Caterpillar, Inc. ................................ 25,918
1,476 Delphi Corp. ..................................... 12,410
585 Family Dollar Stores, Inc. ....................... 17,293
349 Genuine Parts Co. ................................ 13,902
672 Mattel, Inc. H.................................... 11,763
1,071 McDonald's Corp. ................................. 31,208
1,016 TJX Companies, Inc. .............................. 24,361
----------
157,175
----------
CONSUMER STAPLES -- 8.3%
639 Altria Group, Inc. H.............................. 30,956
605 Coca-Cola Co. .................................... 24,587
513 Coca-Cola Enterprises, Inc. ...................... 10,729
440 Colgate-Palmolive Co. ............................ 19,615
930 EnCana Corp. ..................................... 45,952
474 General Mills, Inc. .............................. 20,957
642 Sara Lee Corp. ................................... 14,951
632 Weyerhaeuser Co. ................................. 39,601
----------
207,348
----------
ENERGY -- 13.1%
345 Anadarko Petroleum Corp. ......................... 23,264
705 BP plc ADR........................................ 41,049
985 ChevronTexaco Corp. .............................. 52,285
1,644 Exxon Mobil Corp. ................................ 80,924
190 Occidental Petroleum Corp. ....................... 10,624
447 Progress Energy, Inc. ............................ 18,473
675 Royal Dutch Petroleum Co. NY Shares H............. 36,612
301 Schlumberger Ltd. ................................ 18,913
432 Total S.A. ADR.................................... 45,091
----------
327,235
----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
FINANCE -- 18.5%
267 ACE Ltd. ......................................... $ 10,158
477 American International Group, Inc. ............... 28,965
1,267 Bank of America Corp. ............................ 56,749
1,410 Citigroup, Inc. .................................. 62,540
195 Comerica, Inc. ................................... 12,007
447 Franklin Resources, Inc. ......................... 27,073
473 Freddie Mac....................................... 31,508
165 Goldman Sachs Group, Inc. ........................ 16,193
79 HSBC Holdings plc ADR H........................... 6,380
693 J.P. Morgan Chase & Co. .......................... 26,743
189 Marsh & McLennan Companies, Inc. ................. 5,233
415 MBIA, Inc. ....................................... 23,997
810 MBNA Corp. ....................................... 20,765
267 Merrill Lynch & Co., Inc. ........................ 14,375
310 Prudential Financial, Inc. ....................... 14,396
549 St. Paul Travelers Companies, Inc. ............... 18,658
732 Synovus Financial Corp. .......................... 19,909
312 UBS AG............................................ 22,602
433 XL Capital Ltd. Class A........................... 31,378
230 Zions Bancorp..................................... 15,246
----------
464,875
----------
HEALTH CARE -- 8.8%
1,262 Abbott Laboratories............................... 53,799
438 AstraZeneca plc ADR............................... 18,050
619 Baxter International, Inc. ....................... 19,040
160 Cardinal Health, Inc. ............................ 7,466
449 Lilly (Eli) & Co. ................................ 24,627
260 McKesson Corp. ................................... 6,934
312 Novartis AG ADR................................... 14,970
636 Pfizer, Inc. ..................................... 18,414
1,622 Schering-Plough Corp. ............................ 29,382
676 Wyeth............................................. 26,811
----------
219,493
----------
SERVICES -- 4.2%
479 Comcast Corp. Class A B........................... 14,135
507 Comcast Corp. Special Class A B................... 14,709
237 FedEx Corp. ...................................... 21,586
280 Gannett Co., Inc. ................................ 23,226
1,101 Waste Management, Inc. ........................... 31,362
----------
105,018
----------
TECHNOLOGY -- 13.5%
728 BellSouth Corp. .................................. 19,424
1,080 EMC Corp. B....................................... 13,903
302 Emerson Electric Co. ............................. 19,356
769 General Electric Co. ............................. 26,228
608 International Business Machines Corp. ............ 54,559
1,190 Microsoft Corp. .................................. 33,311
1,420 Motorola, Inc. ................................... 24,516
1,132 SBC Communications, Inc. ......................... 28,587
597 Sprint Corp. ..................................... 12,505
1,022 Texas Instruments, Inc. .......................... 24,995
1,575 Time Warner, Inc. B............................... 26,211
1,399 Verizon Communications, Inc. ..................... 54,718
----------
338,313
----------
</Table>
The accompanying notes are an integral part of this financial statement.
90
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- 4.5%
426 Canadian Pacific Railway Ltd. ADR................. $ 12,020
952 CSX Corp. ........................................ 34,755
360 Norfolk Southern Corp. ........................... 12,219
881 Southwest Airlines Co. ........................... 13,900
587 Union Pacific Corp. .............................. 36,982
104 USF Corp. ........................................ 3,735
----------
113,611
----------
UTILITIES -- 4.4%
377 Dominion Resources, Inc. ......................... 24,255
1,006 Exelon Corp. ..................................... 39,853
440 FPL Group, Inc. .................................. 30,330
376 Pinnacle West Capital Corp. ...................... 16,029
----------
110,467
----------
Total common stock
(cost $2,174,654)............................... $2,419,212
----------
PRINCIPAL
AMOUNT
-------
SHORT-TERM INVESTMENTS -- 4.9%
FINANCE -- 3.4%
$ 6,406 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 6,406
16,571 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 16,571
1,767 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 1,767
13,250 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 13,250
12,146 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 12,146
2,145 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 2,145
33,132 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 33,132
----------
85,417
----------
MARKET
SHARES VALUE U
------- ----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 1.5%
36,615 BNY Institutional Cash Reserve Fund............... $ 36,615
----------
Total short-term investments
(cost $122,032)................................. $ 122,032
----------
Total investments in securities
(cost $2,296,686) O............................. $2,541,244
==========
</Table>
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 11.00% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $2,302,627 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $283,656
Unrealized depreciation........................ (45,039)
--------
Net unrealized appreciation.................... $238,617
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
H Security is fully or partially on loan at October 31, 2004.
@@ 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.
91
THE HARTFORD EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ---------
COMMON STOCK -- 97.5%
BASIC MATERIALS -- 11.6%
50 Air Products and Chemicals, Inc. ................. $ 2,643
285 Alcoa, Inc. ...................................... 9,252
145 Dow Chemical Co. ................................. 6,531
144 DuPont (E.I.) de Nemours & Co. ................... 6,181
59 Kimberly-Clark Corp. ............................. 3,504
59 PPG Industries, Inc. ............................. 3,744
--------
31,855
--------
CAPITAL GOODS -- 1.1%
69 Rockwell Automation, Inc. ........................ 2,885
--------
CONSUMER CYCLICAL -- 6.9%
158 Caterpillar, Inc. ................................ 12,757
163 General Motors Corp. ............................. 6,296
--------
19,053
--------
CONSUMER STAPLES -- 6.1%
86 Altria Group, Inc. ............................... 4,168
66 General Mills, Inc. .............................. 2,931
58 Heinz (H.J.) Co. ................................. 2,102
86 Kellogg Co. ...................................... 3,709
59 Weyerhaeuser Co. ................................. 3,702
--------
16,612
--------
ENERGY -- 9.3%
87 BP plc ADR........................................ 5,074
26 ChevronTexaco Corp. .............................. 1,360
70 ConocoPhillips.................................... 5,904
269 Exxon Mobil Corp. ................................ 13,236
--------
25,574
--------
FINANCE -- 37.8%
6 ACE Ltd. ......................................... 233
294 Bank of America Corp. ............................ 13,185
34 Chubb Corp. ...................................... 2,469
284 Citigroup, Inc. .................................. 12,606
44 Comerica, Inc. ................................... 2,719
37 Fannie Mae........................................ 2,564
59 First Horizon National Corp. ..................... 2,558
2 General Growth Properties Warrants BI ............ 1
19 General Growth Properties, Inc. .................. 617
88 Goldman Sachs Group, Inc. ........................ 8,677
171 J.P. Morgan Chase & Co. .......................... 6,601
140 Merrill Lynch & Co., Inc. ........................ 7,544
114 Morgan Stanley.................................... 5,826
187 National City Corp. .............................. 7,276
122 PNC Financial Services Group, Inc. ............... 6,387
51 St. Paul Travelers Companies, Inc. ............... 1,726
106 SunTrust Banks, Inc. ............................. 7,473
30 U.S. Bancorp...................................... 857
46 Wachovia Corp. ................................... 2,267
22 Washington Mutual, Inc. .......................... 841
91 Wells Fargo & Co. ................................ 5,428
82 XL Capital Ltd. Class A........................... 5,917
--------
103,772
--------
HEALTH CARE -- 7.0%
102 Abbott Laboratories............................... 4,344
87 Baxter International, Inc. ....................... 2,672
188 Pfizer, Inc. ..................................... 5,454
172 Wyeth............................................. 6,827
--------
19,297
--------
SERVICES -- 1.2%
40 Gannett Co., Inc. ................................ 3,320
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ---------
TECHNOLOGY -- 5.5%
68 BellSouth Corp. .................................. $ 1,810
86 Emerson Electric Co. ............................. 5,533
98 Hewlett-Packard Co. .............................. 1,827
145 SBC Communications, Inc. ......................... 3,663
61 Verizon Communications, Inc. ..................... 2,384
--------
15,217
--------
TRANSPORTATION -- 1.7%
101 Shell Transport & Trading Co. plc ADR............. 4,778
--------
UTILITIES -- 9.3%
121 Dominion Resources, Inc. ......................... 7,783
51 Entergy Corp. .................................... 3,360
125 Exelon Corp. ..................................... 4,945
70 FPL Group, Inc. .................................. 4,790
51 SCANA Corp. ...................................... 1,896
44 TXU Corp. ........................................ 2,681
--------
25,455
--------
Total common stock
(cost $259,001)................................. $267,818
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.4%
FINANCE -- 1.4%
$ 288 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 288
746 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 746
80 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 80
596 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 596
547 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 547
96 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 96
1,491 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,491
--------
Total short-term investments
(cost $3,844)................................... $ 3,844
--------
Total investments in securities
(cost $262,845) O .............................. $271,662
========
</Table>
The accompanying notes are an integral part of this financial statement.
92
- --------------------------------------------------------------------------------
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 3.59% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $262,872 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $14,407
Unrealized depreciation......................... (5,617)
-------
Net unrealized appreciation..................... $ 8,790
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $1, which represents 0.00% of total net
assets.
@@ 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.
93
THE HARTFORD FOCUS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 97.9%
BASIC MATERIALS -- 3.0%
43 3M Co. ........................................... $ 3,359
--------
CAPITAL GOODS -- 3.2%
38 United Technologies Corp. ........................ 3,499
--------
CONSUMER CYCLICAL -- 3.9%
54 Caterpillar, Inc. ................................ 4,357
--------
CONSUMER STAPLES -- 6.6%
77 Colgate-Palmolive Co. ............................ 3,418
76 Procter & Gamble Co. ............................. 3,885
--------
7,303
--------
ENERGY -- 8.9%
38 ConocoPhillips.................................... 3,212
56 Occidental Petroleum Corp. ....................... 3,126
55 Schlumberger Ltd. ................................ 3,487
--------
9,825
--------
FINANCE -- 17.8%
77 American International Group, Inc. ............... 4,656
69 Bank of America Corp. ............................ 3,095
131 Citigroup, Inc. .................................. 5,795
96 Marsh & McLennan Companies, Inc. ................. 2,666
67 Morgan Stanley.................................... 3,408
--------
19,620
--------
HEALTH CARE -- 23.1%
67 Abbott Laboratories............................... 2,835
83 Amgen, Inc. B..................................... 4,737
62 Genzyme Corp. B................................... 3,248
85 Lilly (Eli)& Co. ................................. 4,651
86 Medtronic, Inc. .................................. 4,380
194 Pfizer, Inc. ..................................... 5,628
--------
25,479
--------
SERVICES -- 3.1%
142 Accenture Ltd. Class A B.......................... 3,445
--------
TECHNOLOGY -- 28.3%
82 Broadcom Corp. Class A B.......................... 2,205
185 Cisco Systems, Inc. B............................. 3,544
153 General Electric Co. ............................. 5,214
74 Intel Corp. ...................................... 1,647
64 Lockheed Martin Corp. ............................ 3,537
316 Microsoft Corp. .................................. 8,836
174 Motorola, Inc. ................................... 3,005
200 Time Warner, Inc. B............................... 3,335
--------
31,323
--------
Total common stock
(cost $107,083)................................. $108,210
--------
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- 1.1%
FINANCE -- 1.1%
$ 95 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 95
245 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 245
26 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 26
196 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 196
180 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 180
32 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 32
490 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 490
--------
Total short-term investments
(cost $1,264)................................... $ 1,264
--------
Total investments in securities
(cost $108,347) O............................... $109,474
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $109,417 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $ 4,476
Unrealized depreciation......................... (4,419)
-------
Net unrealized appreciation..................... $ 57
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
@@ 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.
94
THE HARTFORD GLOBAL COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 96.7%
AUDIO AND VIDEO EQUIPMENT -- 1.8%
1 Samsung Electronics Co. Ltd. I.................... $ 212
-------
CABLE & OTHER SUBSCRIPTION PROGRAMMING -- 0.3%
1 Comcast Corp. Class A B........................... 35
-------
INFORMATION -- SOFTWARE PUBLISHERS -- 11.5%
109 KongZhong Corp. ADR B............................. 778
51 Openwave Systems, Inc. B.......................... 594
-------
1,372
-------
OTHER INFORMATION SERVICES -- 0.4%
22 Primus Telecommunications Group, Inc. B........... 42
-------
OTHER TELECOMMUNICATIONS -- 51.7%
47 Brasil Telecom S.A. ADR........................... 561
560 China Telecom Corp. Ltd. I........................ 180
36 France Telecom S.A. MI............................ 1,038
10 KT Corp. ADR...................................... 183
27 P.T. Telekomunikasi Indonesia ADR................. 509
36 Sprint Corp. ..................................... 754
161 Telecom Italia S.p.A. I........................... 402
32 Telekom Austria AG MI............................. 485
24 Telemar Norte Leste S.A. ......................... 441
69 Telenor ASA MI.................................... 550
18 Telkom South Africa Ltd. ADR...................... 1,039
-------
6,142
-------
TELECOMMUNICATION RESELLERS -- 0.7%
4 Chunghwa Telecom Co. Ltd. ADR..................... 81
-------
WIRED TELECOMMUNICATIONS CARRIERS -- 13.2%
7 Deutsche Telekom AG BI............................ 134
184 Eircom Group plc BM............................... 384
7 General Communication, Inc. Class A B............. 66
123 Koninklijke (Royal) KPN N.V. I.................... 982
-------
1,566
-------
WIRELESS COMMUNICATIONS SERVICES -- 1.8%
164 Dobson Communications Corp. B..................... 218
-------
WIRELESS TELECOMMUNICATIONS CARRIERS -- 15.3%
38 Citizens Communications Co. B..................... 506
30 Nextel Communications, Inc. Class A B............. 795
21 Philippine Long Distance Telephone Co. BI......... 523
-------
1,824
-------
Total common stock
(cost $10,147).................................. $11,492
-------
PREFERRED STOCKS -- 1.2%
INFORMATION -- OTHER TELECOMMUNICATIONS -- 1.2%
11 Tele Norte Leste Participacoes S.A. ADR........... 137
-------
Total preferred stocks
(cost $113)..................................... $ 137
-------
Total long-term investments
(cost $10,260).................................. $11,629
-------
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- 1.5%
BANKING -- 1.5%
$ 13 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 13
35 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 35
4 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 4
27 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 27
25 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 1-1-2004................................. 25
4 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 4
69 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 69
-------
Total short-term investments
(cost $177)..................................... $ 177
-------
Total investments in securities
(cost $10,437) O................................ $11,806
=======
</Table>
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 72.51% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $10,437 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,355
Unrealized depreciation.......................... (986)
------
Net unrealized appreciation...................... $1,369
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $2,457, which represents 20.67%
of total net assets.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $4,506, which represents 37.91% of
total net assets.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Norwegian Krone Sell $23 $23 11/01/2004 $@@
</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.
95
THE HARTFORD GLOBAL COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
DIVERSIFICATION BY COUNTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- ------------------------------------------------------------------
Austria 4.1%
- ------------------------------------------------------------------
Brazil 9.7
- ------------------------------------------------------------------
Cayman Islands 6.5
- ------------------------------------------------------------------
China 1.5
- ------------------------------------------------------------------
France 8.7
- ------------------------------------------------------------------
Germany 1.1
- ------------------------------------------------------------------
Indonesia 4.3
- ------------------------------------------------------------------
Ireland 3.2
- ------------------------------------------------------------------
Italy 3.4
- ------------------------------------------------------------------
Netherlands 8.3
- ------------------------------------------------------------------
Norway 4.6
- ------------------------------------------------------------------
Philippines 4.4
- ------------------------------------------------------------------
South Africa 8.7
- ------------------------------------------------------------------
South Korea 3.3
- ------------------------------------------------------------------
Taiwan 0.7
- ------------------------------------------------------------------
United States 26.9
- ------------------------------------------------------------------
Other Assets & Liabilities 0.6
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
96
THE HARTFORD GLOBAL FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
COMMON STOCK -- 99.3%
AGENCIES, BROKERAGES, OTHER INSURANCE
ACTIVITIES -- 1.9%
13 Marsh & McLennan Companies, Inc. ................. $ 357
-------
COMMERCIAL BANKING -- 10.4%
62 Capitalia S.p.A. I................................ 237
12 UBS AG I.......................................... 898
39 UniCredito Italiano S.p.A. IH .................... 211
46 Westpac Banking Corp. I........................... 645
-------
1,991
-------
CONSUMER LENDING -- 0.9%
3 Takefuji Corp. I.................................. 166
-------
DEPOSITORY CREDIT BANKING -- 34.7%
58 Banco Bilbao Vizcaya Argentaria S.A. IH........... 909
21 Bank of America Corp. ............................ 936
4 Bank of Hawaii Corp. ............................. 191
6 Canadian Western Bank............................. 253
21 Citigroup, Inc. .................................. 918
8 Golden West Financial Corp. ...................... 935
37 Hibernia Corp. Class A............................ 1,061
81 HSBC Holdings plc I............................... 1,301
6 Laurentian Bank of Canada......................... 115
-------
6,619
-------
INSURANCE CARRIERS -- 21.2%
20 ACE Ltd. ......................................... 757
8 AMBAC Financial Group, Inc. ...................... 593
16 American International Group, Inc. ............... 953
7 MBIA, Inc. ....................................... 417
3 Prudential Financial, Inc. B...................... 140
11 Reinsurance Group of America...................... 487
21 St. Paul Travelers Companies, Inc. ............... 696
-------
4,043
-------
INTERNATIONAL TRADE FINANCING (FOREIGN
BANKS) -- 7.7%
12 Bayerische Hypo-und Vereinsbank AG BI............. 227
18 Northern Rock plc I............................... 243
22 Royal Bank of Scotland Group plc I................ 655
19 St. George Bank Ltd. IH........................... 336
-------
1,461
-------
MONETARY AUTHORITIES -- CENTRAL BANK -- 2.3%
@@ Mitsubishi Tokyo Financial Group, Inc. I.......... 237
@@ Sumitomo Mitsui Financial Group, Inc. IH.......... 195
-------
432
-------
NONDEPOSITORY CREDIT BANKING -- 5.8%
17 Banco Latinoamericano de Exportaciones S.A. ADR
Class E......................................... 317
6 Fannie Mae........................................ 393
6 Freddie Mac....................................... 393
-------
1,103
-------
OTHER FINANCIAL INVESTMENT ACTIVITIES -- 7.7%
2 Eaton Vance Corp. ................................ 96
8 Franklin Resources, Inc. ......................... 491
57 Nordea Bank AB I.................................. 495
9 State Street Corp. ............................... 387
-------
1,469
-------
REAL ESTATE CREDIT (MORTGAGE BANKING) -- 2.0%
12 Countrywide Financial Corp. ...................... 393
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
SECURITIES, COMMODITIES AND BROKERAGE -- 4.7%
5 Goldman Sachs Group, Inc. ........................ $ 453
8 Merrill Lynch & Co., Inc. ........................ 442
-------
895
-------
Total common stock
(cost $17,025).................................. $18,929
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 7.0%
BANKING -- 0.7%
$ 10 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 10
25 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 25
3 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 3
20 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 20
19 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 19
3 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 3
51 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 51
-------
131
-------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 6.3%
1,204 Navigator Prime Portfolio......................... 1,204
-------
Total short-term investments
(cost $1,335)................................... $ 1,335
-------
Total investments in securities
(cost $18,360) O................................ $20,264
=======
</Table>
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 39.05% of total net asset at October 31, 2004.
B Currently non-income producing. For long-term debt securities,
items identified are in default as to payment of interest and/or principal.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $18,518 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,385
Unrealized depreciation.......................... (639)
------
Net unrealized appreciation...................... $1,746
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $6,755, which represents 35.45% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
@@ 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.
97
THE HARTFORD GLOBAL FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
DIVERSIFICATION BY COUNTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- ------------------------------------------------------------------
Australia 5.1%
- ------------------------------------------------------------------
Canada 1.9
- ------------------------------------------------------------------
Germany 1.2
- ------------------------------------------------------------------
Italy 2.4
- ------------------------------------------------------------------
Japan 3.1
- ------------------------------------------------------------------
Panama 1.7
- ------------------------------------------------------------------
Spain 4.8
- ------------------------------------------------------------------
Sweden 2.6
- ------------------------------------------------------------------
Switzerland 4.7
- ------------------------------------------------------------------
United Kingdom 11.5
- ------------------------------------------------------------------
United States 67.3
- ------------------------------------------------------------------
Other Assets & Liabilities -6.3
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
98
THE HARTFORD GLOBAL HEALTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 97.5%
AGENCIES, BROKERAGES, OTHER INSURANCE
ACTIVITIES -- 3.6%
315 Medco Health Solutions, Inc. B.................... $ 10,678
--------
BASIC CHEMICAL MANUFACTURING -- 0.9%
101 Bayer AG I........................................ 2,851
--------
DATA PROCESSING SERVICES -- 2.3%
409 NDCHealth Corp.................................... 6,862
--------
DRUGS & DRUGGISTS SUNDRIES WHOLESALERS -- 3.1%
346 McKesson Corp. ................................... 9,227
--------
ELECTRICAL EQUIP MANUF -- 0.9%
138 Olympus Corp. IH.................................. 2,667
--------
ELECTROMEDICAL MANUFACTURING -- 6.0%
110 Guidant Corp. .................................... 7,322
210 Medtronic, Inc. .................................. 10,738
--------
18,060
--------
INSURANCE CARRIERS -- 4.5%
49 Aetna, Inc........................................ 4,665
249 PacifiCare Health Systems, Inc. B................. 8,873
--------
13,538
--------
MEDICAL EQUIPMENT & SUPPLIES MANUFACTURING -- 3.4%
187 Baxter International, Inc. ....................... 5,752
66 Becton, Dickinson & Co. .......................... 3,449
100 Gambro AB Class B IH.............................. 1,132
--------
10,333
--------
NAVIGATE, MEASURE, CONTROL INSTRUMENTS -- 1.8%
42 Beckman Coulter, Inc. ............................ 2,505
394 Bruker BioSciences Corp. B........................ 1,359
176 CTI Molecular Imaging, Inc. B..................... 1,379
--------
5,243
--------
OFFICES OF PHYSICIANS -- 0.9%
7 Edwards Lifesciences Corp. B...................... 2,587
--------
OTHER CHEMICAL AND PREPARATION -- 0.4%
39 Connetics Corp. BH................................ 1,059
--------
OUTPATIENT CARE CENTERS -- 0.8%
119 Humana, Inc. B.................................... 2,275
--------
PHARMACEUTICAL & MEDICINE
MANUFACTURING -- 50.5%
345 Abbott Laboratories............................... 14,724
101 Abgenix, Inc. BH.................................. 917
136 Amylin Pharmaceuticals, Inc. BH................... 2,897
373 AstraZeneca plc ADR............................... 15,380
112 AtheroGenics, Inc. BH............................. 3,356
74 Cephalon, Inc. BH................................. 3,523
24 Cytokinetics, Inc. BH............................. 216
227 Eisai Co. Ltd. I.................................. 6,527
163 Forest Laboratories, Inc. B....................... 7,257
289 Fujisawa Pharmaceutical Co. Ltd. I................ 7,541
68 Hospira, Inc. B................................... 2,174
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
PHARMACEUTICAL & MEDICINE
MANUFACTURING -- (CONTINUED)
393 King Pharmaceuticals, Inc. B...................... $ 4,288
177 Lilly (Eli) & Co.................................. 9,697
264 Novartis AG I..................................... 12,605
76 NPS Pharmaceuticals, Inc. BH...................... 1,296
32 Onyx Pharmaceuticals, Inc. BH..................... 898
25 OSI Pharmaceuticals, Inc. B....................... 1,625
192 Sankyo Co. Ltd. I................................. 3,985
244 Sanofi-Aventis S.A. ADR........................... 8,913
1,000 Schering-Plough Corp. ............................ 18,110
67 Schwarz Pharma AG IH.............................. 2,513
366 Shionogi & Co. Ltd. I............................. 5,665
66 Takeda Pharmaceutical Co. Ltd. I.................. 3,186
90 Vertex Pharmaceuticals, Inc. BH................... 979
133 Watson Pharmaceuticals, Inc. B.................... 3,720
234 Wyeth............................................. 9,274
--------
151,266
--------
PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES -- 0.9%
312 Exelixis, Inc. BH................................. 2,778
--------
SCIENTIFIC RESEARCH & DEVELOPMENT SERVICES -- 17.5%
444 Applera Corp. -- Celera Genomics Group B.......... 5,691
94 ARIAD Pharmaceuticals, Inc. BH.................... 532
171 Ciphergen Biosystems, Inc. BH..................... 629
145 CV Therapeutics, Inc. BH.......................... 2,418
368 Elan Corp. plc ADR BH............................. 9,494
272 Genzyme Corp. B................................... 14,282
134 Gilead Sciences, Inc. B........................... 4,647
223 Human Genome Sciences, Inc. B..................... 2,296
57 ICOS Corp. BH..................................... 1,288
156 Medicines Co. B................................... 4,161
336 Millennium Pharmaceuticals, Inc. B................ 4,359
152 Regeneron Pharmaceutical, Inc. BH................. 1,102
86 Zymogenetics, Inc. BH............................. 1,626
--------
52,525
--------
Total common stock
(cost $276,986)................................. $291,949
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 12.6%
BANKING -- 2.2%
$ 503 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 503
1,301 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,301
139 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 139
1,040 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 1,040
954 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 954
</Table>
The accompanying notes are an integral part of this financial statement.
99
THE HARTFORD GLOBAL HEALTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- (CONTINUED)
BANKING -- (CONTINUED)
$ 168 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ $ 168
2,601 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 2,601
--------
6,706
--------
SHARES
-------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING 10.4%
31,103 Navigator Prime Portfolio......................... 31,103
--------
Total short-term investments
(cost $37,809).................................. $ 37,809
--------
Total investments in securities
(cost $314,795) O............................... $329,758
========
</Table>
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 27.54% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $315,628 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 38,156
Unrealized depreciation........................ (24,026)
--------
Net unrealized appreciation.................... $ 14,130
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $48,672, which represents 16.26% of
total net assets.
@@ Security is fully or partially on loan at October 31, 2004.
@@ Due to the presentation of the financial statements in thousands,
the number or shares and/or dollars round to zero.
DIVERSIFICATION BY COUNTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- ------------------------------------------------------------------
France 3.0%
- ------------------------------------------------------------------
Germany 1.8
- ------------------------------------------------------------------
Ireland 3.2
- ------------------------------------------------------------------
Japan 9.9
- ------------------------------------------------------------------
Sweden 0.4
- ------------------------------------------------------------------
Switzerland 4.2
- ------------------------------------------------------------------
United Kingdom 5.1
- ------------------------------------------------------------------
United States 82.5
- ------------------------------------------------------------------
Other Assets & Liabilities -10.1
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
100
THE HARTFORD GLOBAL LEADERS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 99.2%
CANADA -- 6.0%
114 Canadian National Railway Co. H................... $ 6,117
406 Research In Motion Ltd. BH........................ 35,774
--------
41,891
--------
FINLAND -- 2.0%
911 Nokia Oyj ADR..................................... 14,040
--------
FRANCE -- 5.2%
863 Alcatel S.A. BIH.................................. 12,622
145 Cie Generale D'Optique Essilor International S.A.
IH.............................................. 9,858
25 Pernod-Ricard IH.................................. 3,476
51 Total S.A. IH..................................... 10,530
--------
36,486
--------
GERMANY -- 3.8%
50 Adidas-Salomon AG IH.............................. 7,033
92 Allianz AG IH..................................... 9,768
526 Bayerische Hypo-und Vereinsbank AG BIH............ 10,304
--------
27,105
--------
HONG KONG -- 3.4%
11,256 CNOOC Ltd. I...................................... 5,799
1,905 Esprit Holdings Ltd. I............................ 10,183
1,061 Hutchison Whampoa Ltd. I.......................... 8,148
--------
24,130
--------
INDIA -- 1.8%
192 Infosys Technologies Ltd. ADR..................... 12,775
--------
INDONESIA -- 0.5%
183 P.T. Telekomunikasi Indonesia ADR................. 3,492
--------
IRELAND -- 5.7%
1,552 Elan Corp. plc ADR BH............................. 40,052
--------
ITALY -- 0.9%
281 Autostrade S.p.A. I .............................. 6,147
--------
JAPAN -- 4.5%
588 Bank of Yokohama Ltd. I........................... 3,506
1 Japan Tobacco, Inc. I............................. 8,105
19 Nintendo Co. Ltd. IH.............................. 2,103
244 Trend Micro, Inc. I............................... 11,651
1 UFJ Holdings, Inc. BI............................. 6,040
--------
31,405
--------
LUXEMBOURG -- 0.6%
393 SES Global M...................................... 4,054
--------
MEXICO -- 0.4%
51 Grupo Televisa S.A. ADR........................... 2,816
--------
NETHERLANDS -- 2.3%
325 European Aeronautic Defence and Space Co. IH...... 9,270
203 Koninklijke (Royal) KPN N.V. BI................... 6,823
--------
16,093
--------
RUSSIA -- 2.3%
28 LUKOIL ADR........................................ 3,469
49 Mobile Telesystems ADR............................ 7,053
142 OAO Gazprom Class S ADR M......................... 5,294
--------
15,816
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
SOUTH KOREA -- 2.2%
334 Kia Motors Corp. I................................ $ 3,141
220 LG Electronics, Inc. IH........................... 12,430
--------
15,571
--------
SPAIN -- 1.0%
455 Banco Bilbao Vizcaya Argentaria S.A. IH........... 7,141
--------
SWEDEN -- 1.9%
4,547 Telefonaktiebolaget LM Ericsson I................. 13,188
--------
SWITZERLAND -- 0.9%
63 Roche Holding AG I................................ 6,399
--------
UNITED KINGDOM -- 15.1%
2,092 British Airways plc BI............................ 8,302
1,699 Capita Group plc I................................ 10,964
43 Carnival plc I.................................... 2,258
4,016 Carphone Warehouse Group plc I.................... 12,265
1,309 EMI Group plc I................................... 5,094
748 GUS plc I......................................... 12,227
739 InterContinental Hotels Group plc I............... 9,031
1,075 Kingfisher plc I.................................. 5,963
2,322 Rolls-Royce Group plc I........................... 11,050
55,558 Rolls-Royce Group plc Class B..................... 102
655 Standard Chartered plc I.......................... 11,698
6,642 Vodafone Group plc I.............................. 17,047
--------
106,001
--------
UNITED STATES -- 38.7%
154 Altera Corp. B.................................... 3,496
64 Anadarko Petroleum Corp........................... 4,344
330 Apple Computer, Inc. B............................ 17,356
320 Bank of America Corp.............................. 14,351
220 Best Buy Co., Inc................................. 13,040
371 Cisco Systems, Inc. B............................. 7,127
98 Citigroup, Inc.................................... 4,328
74 Costco Wholesale Corp............................. 3,557
177 Danaher Corp...................................... 9,741
145 Dell, Inc. B...................................... 5,091
70 eBay, Inc. B...................................... 6,852
207 Exxon Mobil Corp. ................................ 10,189
466 General Electric Co. ............................. 15,883
195 Gillette Co. ..................................... 8,101
79 Goldman Sachs Group, Inc. ........................ 7,802
25 Google, Inc. B.................................... 4,710
259 Home Depot, Inc................................... 10,632
385 IVAX Corp. B ..................................... 6,962
137 Medtronic, Inc. .................................. 6,987
268 Microsoft Corp. .................................. 7,487
240 Monster Worldwide, Inc. BH ....................... 6,743
324 Motorola, Inc. ................................... 5,584
131 Parker-Hannifin Corp. ............................ 9,281
46 Pixar B........................................... 3,723
409 Schering-Plough Corp. ............................ 7,407
109 Schlumberger Ltd. ................................ 6,879
353 Staples, Inc. .................................... 10,483
219 Starbucks Corp. BH ............................... 11,554
219 Tyco International Ltd. .......................... 6,813
482 XM Satellite Radio Holdings, Inc. Class A BH ..... 15,565
555 Yahoo!, Inc. B ................................... 20,100
--------
272,168
--------
Total common stock
(cost $601,221)................................. $696,770
--------
</Table>
The accompanying notes are an integral part of this financial statement.
101
HARTFORD GLOBAL LEADERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- 20.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 19.2%
$135,193 Navigator Prime Portfolio......................... $135,193
--------
UNITED STATES -- 0.9%
457 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ 457
1,182 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,182
126 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11/1/2004................................ 126
945 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 945
867 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 867
153 UBS Securities Joint Repurchase Agreement,
1.77%, 11/1/2004................................ 153
2,364 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 2,364
--------
6,094
--------
Total short-term investments
(cost $141,287)................................. $141,287
--------
Total investments in securities
(cost $742,508) O............................... $838,057
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $749,082 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation..................................... $92,159
Unrealized depreciation..................................... (3,184)
-------
Net unrealized appreciation................................. $88,975
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
M 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, 2004, was $9,348, which represents 1.33% of
total net assets.
I 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 at
October 31, 2004, was $289,564, which represents 41.22% of total net
assets.
H Security is fully or partially on loan at October 31, 2004.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Buy $ 251 $ 251 11/01/2004 $@@
British Pound Buy 307 306 11/02/2004 1
British Pound Sell 38 38 11/03/2004 @@
Hong Kong Dollars Buy 1,166 1,166 11/02/2004 @@
Japanese Yen Buy 3,296 3,290 11/01/2004 6
Japanese Yen Sell 1,927 1,926 11/04/2004 (1)
---
$ 6
===
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
of shares and/or dollars round to zero.
DIVERSIFICATION BY INDUSTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ---------------------------------------------------------------
Basic Materials 2.6%
- ---------------------------------------------------------------
Capital Goods 6.4
- ---------------------------------------------------------------
Consumer Cyclical 16.4
- ---------------------------------------------------------------
Consumer Staples 2.6
- ---------------------------------------------------------------
Energy 6.6
- ---------------------------------------------------------------
Finance 30.7
- ---------------------------------------------------------------
Health Care 9.7
- ---------------------------------------------------------------
Services 8.0
- ---------------------------------------------------------------
Technology 34.2
- ---------------------------------------------------------------
Transportation 2.1
- ---------------------------------------------------------------
Other Assets & Liabilities -19.3
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
102
THE HARTFORD GLOBAL TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
COMMON STOCK -- 99.7%
COMMUNICATIONS EQUIPMENT -- 12.9%
156 Cisco Systems, Inc. B............................. $ 3,003
166 Lucent Technologies, Inc. B....................... 588
34 Motorola, Inc. ................................... 580
146 Nokia Oyj ADR..................................... 2,253
6 Plantronics, Inc. ................................ 265
36 Scientific-Atlanta, Inc. ......................... 972
-------
7,661
-------
COMPUTER AND PERIPHERAL -- 9.8%
49 Dell, Inc. B...................................... 1,725
38 EMC Corp. B....................................... 494
34 Hutchinson Technology, Inc. B..................... 1,156
27 International Business Machines Corp. ............ 2,459
-------
5,834
-------
COMPUTER SYSTEMS DESIGN & RELATED SERVICES -- 7.5%
65 BISYS Group, Inc. B............................... 945
40 CheckFree Corp. B................................. 1,240
22 Computer Sciences Corp. B......................... 1,098
26 DST Systems, Inc. B............................... 1,170
-------
4,453
-------
DATA PROCESSING SERVICES -- 4.5%
65 First Data Corp. ................................. 2,687
-------
ELECTRICAL EQUIP MANUF -- COMPONENT OTHER -- 3.3%
172 Corning, Inc. B................................... 1,967
-------
INFORMATION -- SOFTWARE PUBLISHERS -- 16.6%
76 Brocade Communications Systems, Inc. B............ 519
9 Electronic Arts, Inc. B........................... 404
198 Microsoft Corp. .................................. 5,528
115 Red Hat, Inc. B................................... 1,474
73 VeriSign, Inc. B.................................. 1,945
-------
9,870
-------
INTERNET PROVIDERS & WEB SEARCH PORT -- 7.1%
117 Yahoo!, Inc. B.................................... 4,216
-------
MANAGEMENT, SCIENTIFIC, AND TECH CONSULTING
SVCS -- 2.0%
50 Accenture Ltd. Class A B.......................... 1,208
-------
OTHER SERVICES -- OTHER PERSONAL SERVICES -- 1.3%
24 Cendant Corp. .................................... 494
10 TaTa Consulting BM................................ 242
-------
736
-------
OTHER TELECOMMUNICATIONS -- 1.2%
34 ADTRAN, Inc. ..................................... 739
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
RETAIL -- ELECTRONIC SHOPPING AND MAIL-ORDER
HOUSES -- 1.5%
9 eBay, Inc. B...................................... $ 888
-------
SEMICONDUCTOR, ELECTRONIC COMPON -- 29.5%
57 Altera Corp. B.................................... 1,287
53 Analog Devices, Inc. ............................. 2,114
99 Applied Materials, Inc. B......................... 1,594
59 ASM International N.V. BH......................... 837
32 ASML Holding N.V. B............................... 461
42 Broadcom Corp. Class A B.......................... 1,128
122 Fairchild Semiconductor International, Inc. B..... 1,750
36 Flextronics International Ltd. B.................. 435
29 KLA-Tencor Corp. B................................ 1,325
64 Lam Research Corp. B.............................. 1,658
47 Micron Technology, Inc. B......................... 569
212 ON Semiconductor Corp. B.......................... 763
37 QLogic Corp. B.................................... 1,198
65 STMicroelectronics N.V. .......................... 1,197
40 Xilinx, Inc. ..................................... 1,215
-------
17,531
-------
WASTE MANAGEMENT -- BUSINESS SUPPORT
SERVICES -- 1.0%
18 Iron Mountain, Inc. B............................. 588
-------
WASTE MANAGEMENT -- EMPLOYMENT SERVICES -- 0.5%
6 Manpower, Inc. ................................... 290
-------
WIRELESS TELECOMMUNICATIONS CARRIERS -- 1.0%
7 Research In Motion Ltd. B......................... 609
-------
Total common stock
(cost $55,762).................................. $59,277
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.8%
BANKING -- 0.6%
$ 29 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 29
76 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 76
8 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 8
61 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 61
55 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 55
10 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 10
151 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 151
-------
390
-------
</Table>
The accompanying notes are an integral part of this financial statement.
103
THE HARTFORD GLOBAL TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 1.2%
705 BNY Institutional Cash Reserve Fund............... $ 705
-------
Total short-term investments
(cost $1,095)................................... $ 1,095
-------
Total investments in securities
(cost $56,857) O ............................... $60,372
=======
</Table>
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 9.01% of
total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $58,058 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $ 5,306
Unrealized depreciation......................... (2,992)
-------
Net unrealized appreciation..................... $ 2,314
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $242, which represents
0.41% of total net assets.
H Security is fully or partially on loan at October 31, 2004.
@@ Due to the presentation of the financial statements in thousands,
the number or shares and/or dollars round to zero.
DIVERSIFICATION BY COUNTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- ------------------------------------------------------------------
Canada 1.0%
- ------------------------------------------------------------------
Finland 3.8
- ------------------------------------------------------------------
Netherlands 2.2
- ------------------------------------------------------------------
Switzerland 2.0
- ------------------------------------------------------------------
United States 92.5
- ------------------------------------------------------------------
Other Assets & Liabilities -1.5
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
104
THE HARTFORD GROWTH ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
AFFILIATED INVESTMENT COMPANIES -- 97.4%
EQUITY FUNDS -- 77.9%
166 Hartford Capital Appreciation Fund, Class Y B..... $ 5,361
766 Hartford Disciplined Equity Fund, Class Y......... 8,424
213 Hartford Dividend and Growth Fund, Class Y........ 3,829
539 Hartford Global Leaders Fund, Class Y B........... 9,189
373 Hartford Growth Fund, Class Y B................... 6,126
784 Hartford International Capital Appreciation Fund,
Class Y......................................... 9,190
243 Hartford Small Company Fund, Class Y B............ 3,829
154 Hartford SmallCap Growth Fund, Class Y B.......... 3,829
946 Hartford Value Fund, Class Y...................... 9,189
162 Hartford Value Opportunities Fund, Class Y B...... 2,297
-------
Total equity funds
(cost $58,959).................................. $61,263
-------
FIXED INCOME FUNDS -- 19.5%
489 Hartford Inflation Plus Fund, Class Y............. $ 5,361
228 Hartford Short Duration Fund, Class Y............. 2,297
692 Hartford Total Return Bond Fund, Class Y.......... 7,658
-------
Total fixed income funds
(cost $15,185).................................. $15,316
-------
Total investments in affiliated investment
companies
(cost $74,144) O................................ $76,579
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $74,144 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,437
Unrealized depreciation.......................... (2)
------
Net unrealized appreciation...................... $2,435
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of this financial statement.
105
THE HARTFORD GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 96.5%
BASIC MATERIALS -- 1.8%
360 Gillette Co. ..................................... $ 14,942
--------
CAPITAL GOODS -- 1.0%
83 General Dynamics Corp. ........................... 8,494
--------
CONSUMER CYCLICAL -- 13.2%
217 AutoZone, Inc. B.................................. 17,776
234 Best Buy Co., Inc. ............................... 13,847
365 CDW Corp. ........................................ 22,669
313 eBay, Inc. B...................................... 30,583
183 Lennar Corp. Class A.............................. 8,229
153 Lowe's Companies, Inc. ........................... 8,632
156 Starbucks Corp. BH................................ 8,260
--------
109,996
--------
ENERGY -- 1.2%
190 Petro-Canada...................................... 10,356
--------
FINANCE -- 10.0%
357 Citigroup, Inc. .................................. 15,844
1,196 Countrywide Financial Corp. ...................... 38,191
203 Franklin Resources, Inc. ......................... 12,333
260 Freddie Mac....................................... 17,317
--------
83,685
--------
HEALTH CARE -- 20.6%
237 Abbott Laboratories............................... 10,115
706 AstraZeneca plc ADR............................... 29,090
293 Elan Corp. plc ADR BH............................. 7,560
149 Forest Laboratories, Inc. B....................... 6,638
120 Genzyme Corp. BH.................................. 6,312
225 Gilead Sciences, Inc. B........................... 7,791
612 Guidant Corp. .................................... 40,752
445 Lilly (Eli) & Co. ................................ 24,408
563 Medtronic, Inc. .................................. 28,800
586 Schering-Plough Corp. ............................ 10,605
--------
172,071
--------
SERVICES -- 12.5%
387 Accenture Ltd. Class A B.......................... 9,380
567 Apollo Group, Inc. Class A B...................... 37,430
124 Moody's Corp. .................................... 9,672
287 Omnicom Group, Inc. .............................. 22,644
83 Pixar B........................................... 6,707
574 XM Satellite Radio Holdings, Inc. Class A BH...... 18,561
--------
104,394
--------
TECHNOLOGY -- 36.2%
436 Analog Devices, Inc. H............................ 17,549
1,211 Cisco Systems, Inc. B............................. 23,258
621 Corning, Inc. B................................... 7,115
204 Danaher Corp. .................................... 11,272
870 Dell, Inc. B...................................... 30,513
527 Electronic Arts, Inc. B........................... 23,685
678 First Data Corp. ................................. 27,987
573 General Electric Co. ............................. 19,563
74 Lexmark International, Inc. ADR B................. 6,173
796 Microsoft Corp. .................................. 22,271
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
TECHNOLOGY -- (CONTINUED)
563 Research In Motion Ltd. BH........................ $ 49,672
508 Xilinx, Inc. ..................................... 15,533
1,317 Yahoo!, Inc. B.................................... 47,662
--------
302,253
--------
Total common stock
(cost $710,942)................................. $806,191
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 13.1%
FINANCE -- 5.1%
$ 3,193 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 3,193
8,260 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 8,260
880 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 880
6,605 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 6,605
6,055 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 6,055
1,069 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 1,069
16,516 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 16,516
--------
42,578
--------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 8.0%
67,044 BNY Institutional Cash Reserve Fund............... 67,044
--------
Total short-term investments
(cost $109,622)................................. $109,622
--------
Total investments in securities
(cost $820,564) O............................... $915,813
========
</Table>
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 11.57% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $821,713 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $113,298
Unrealized depreciation........................ (19,198)
--------
Net unrealized appreciation.................... $ 94,100
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
H Security is fully or partially on loan at October 31, 2004.
@@ 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.
106
THE HARTFORD GROWTH OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 97.5%
BASIC MATERIALS -- 5.1%
243 Alkermes, Inc. BH................................. $ 3,001
192 Arch Coal, Inc. .................................. 6,227
290 Jarden Corp. B.................................... 10,194
144 Precision Castparts Corp. ........................ 8,640
74 Rio Tinto plc ADR................................. 7,898
--------
35,960
--------
CAPITAL GOODS -- 3.0%
169 Bucyrus International, Inc. ...................... 5,073
248 European Aeronautic Defence and Space Co. I....... 7,066
1,888 Rolls-Royce Group plc I........................... 8,984
47,556 Rolls-Royce Group plc Class B..................... 87
--------
21,210
--------
CONSUMER CYCLICAL -- 11.6%
734 American Tower Corp. Class A BH................... 12,614
161 Best Buy Co., Inc. ............................... 9,517
189 Chico's FAS, Inc. B............................... 7,554
214 D.R. Horton, Inc. ................................ 6,422
94 Grainger (W.W.), Inc. ............................ 5,490
437 Michaels Stores, Inc. ............................ 12,705
210 New York & Co., Inc. B............................ 4,343
188 RARE Hospitality International, Inc. B............ 5,208
1,469 Rinker Group Ltd. I............................... 9,548
435 Sotheby's Holdings, Inc. Class A B................ 8,130
--------
81,531
--------
ENERGY -- 3.6%
628 Chesapeake Energy Corp. H......................... 10,101
186 Noble Corp. B..................................... 8,506
116 Smith International, Inc. B....................... 6,749
--------
25,356
--------
FINANCE -- 6.0%
275 Citigroup, Inc. .................................. 12,193
332 Countrywide Financial Corp. ...................... 10,601
118 Freddie Mac....................................... 7,839
330 Medco Health Solutions, Inc. B.................... 11,197
--------
41,830
--------
HEALTH CARE -- 15.5%
245 AstraZeneca plc ADR............................... 10,082
152 AtheroGenics, Inc. BH............................. 4,545
225 Auxilium Pharmaceuticals, Inc. B.................. 1,968
196 Cephalon, Inc. B.................................. 9,324
426 Elan Corp. plc ADR BH............................. 10,980
231 Forest Laboratories, Inc. B....................... 10,289
9 Foxhollow Technologies, Inc. B.................... 177
184 Gilead Sciences, Inc. B........................... 6,375
146 Guidant Corp. .................................... 9,693
130 ICOS Corp. BH..................................... 2,916
153 Medicines Co. B................................... 4,068
280 Medtronic, Inc. .................................. 14,321
624 Millennium Pharmaceuticals, Inc. B................ 8,093
76 Neurocrine Biosciences, Inc. B.................... 3,515
168 NPS Pharmaceuticals, Inc. BH...................... 2,876
513 Schering-Plough Corp. ............................ 9,296
--------
108,518
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
SERVICES -- 15.8%
389 Accenture Ltd. Class A B.......................... $ 9,408
140 Adecco S.A. BI.................................... 6,749
155 Apollo Group, Inc. Class A B...................... 10,256
654 Cendant Corp. .................................... 13,466
261 Corporate Executive Board Co. .................... 16,625
489 Education Management Corp. B...................... 13,112
7 Jackson Hewitt Tax Service, Inc. ................. 151
256 Life Time Fitness, Inc. B......................... 5,958
315 Manpower, Inc. ................................... 14,245
218 Monster Worldwide, Inc. B......................... 6,109
5 Per-Se Technologies, Inc. B....................... 71
1,603 Sirius Satellite Radio, Inc. BH................... 6,252
103 TaTa Consulting BM................................ 2,613
174 XM Satellite Radio Holdings, Inc. Class A B....... 5,637
--------
110,652
--------
TECHNOLOGY -- 32.3%
371 Amdocs Ltd. B..................................... 9,338
183 Comverse Technology, Inc. B....................... 3,783
540 Crown Castle International Corp. B................ 8,266
196 Electronic Arts, Inc. B........................... 8,795
234 First Data Corp. ................................. 9,664
280 FuelCell Energy, Inc. BH.......................... 3,449
114 L-3 Communications Holdings, Inc. ................ 7,523
577 MEMC Electronic Materials, Inc. B................. 5,428
49 Mobile Telesystems ADR............................ 7,111
608 Motorola, Inc. ................................... 10,489
95 NAVTEQ Corp. B.................................... 3,846
628 Network Appliance, Inc. BH........................ 15,370
700 Nextel Communications, Inc. Class A B............. 18,540
287 Novatel Wireless, Inc. B.......................... 5,949
201 NTL, Inc. B....................................... 13,349
301 Openwave Systems, Inc. B.......................... 3,544
269 P.T. Telekomunikasi Indonesia ADR................. 5,124
206 Qualcomm, Inc. ................................... 8,613
213 Red Hat, Inc. B................................... 2,730
158 Research In Motion Ltd. B......................... 13,909
271 Salesforce.com, Inc. BH........................... 5,501
281 Scientific-Atlanta, Inc. ......................... 7,691
177 SES Global M...................................... 1,822
273 Take-Two Interactive Software, Inc. B............. 9,011
7,385 Techtronic Industries Co. Ltd. I.................. 14,734
284 Verint Systems, Inc. B............................ 11,057
325 Yahoo!, Inc. B.................................... 11,751
--------
226,387
--------
TRANSPORTATION -- 4.6%
418 GOL Linhas Aereas Inteligentes S.A. ADR BH........ 8,634
658 Sirva, Inc. B..................................... 15,792
159 Yellow Roadway Corp. B............................ 7,630
--------
32,056
--------
Total common stock
(cost $573,410)................................. $683,500
--------
</Table>
The accompanying notes are an integral part of this financial statement.
107
THE HARTFORD GROWTH OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE U
- ----------- ---------
SHORT-TERM INVESTMENTS -- 9.3%
FINANCE -- 0.5%
$ 269 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 269
695 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 695
74 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 74
556 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 556
510 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 510
90 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 90
1,390 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,390
---------
3,584
---------
SHARES
---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 8.8%
61,870 BNY Institutional Cash Reserve Fund............... 61,870
Total short-term investments
(cost $65,454).................................. $ 65,454
---------
Total investments in securities
(cost $638,864) O............................... $ 748,954
=========
</Table>
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 17.42% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $638,987 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $120,843
Unrealized depreciation........................ (10,876)
--------
Net unrealized appreciation.................... $109,967
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $4,435, which represents
0.63% of total net assets.
I Securities valued in good faith at fair value by, or under the
direction of, the Fund's Board of Directors. The aggregate value of these
securities at October 31, 2004, was $47,081, which represents 6.72% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
@@ 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.
108
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 0.1%
FINANCE -- 0.1%
$ 579 Home Equity Asset Trust,
5.25%, 4-27-2034 M.............................. $ 579
--------
Total asset backed and commercial mortgage
securities
(cost $578)..................................... $ 579
--------
CORPORATE BONDS: INVESTMENT GRADE -- 3.8%
BASIC MATERIALS -- 0.6%
506 Georgia Gulf Corp.,
7.625%, 11-15-2005.............................. $ 525
1,000 Methanex Corp.,
8.75%, 8-15-2012................................ 1,170
650 Potlatch Corp.,
12.50%, 12-1-2009............................... 815
--------
2,510
--------
CONSUMER CYCLICAL -- 0.2%
550 AutoNation, Inc.,
9.00%, 8-1-2008 H............................... 633
--------
ENERGY -- 0.1%
725 Gazprom International S.A.,
7.201%, 2-1-2020................................ 760
730 Gazprom International, Inc.,
9.625%, 3-1-2013................................ 840
--------
1,600
--------
FINANCE -- 0.1%
340 TuranAlem Finance B.V.,
8.00%, 3-24-2014 M.............................. 332
--------
SERVICES -- 0.5%
1,400 Hilton Hotels Corp.,
7.625%, 5-15-2008............................... 1,569
260 Hilton Hotels Corp.,
8.25%, 2-15-2011................................ 310
--------
1,879
--------
TECHNOLOGY -- 1.8%
2,010 Intelsat Ltd.,
6.50%, 11-1-2013................................ 1,724
4,240 Rogers Cable, Inc.,
6.25%, 6-15-2013................................ 4,229
1,205 Thomas & Betts Corp.,
7.25%, 6-1-2013................................. 1,312
@@ VoiceStream Wireless Corp.,
10.375%, 11-15-2009 I........................... ]
--------
7,265
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
UTILITIES -- 0.5%
$ 630 Centerpoint Energy Resources Corp.,
7.875%, 4-1-2013................................ $ 753
875 Centerpoint Energy, Inc.,
6.85%, 6-1-2015................................. 967
125 El Paso Electric Co.,
9.40%, 5-1-2011................................. 140
--------
1,860
--------
Total corporate bonds:
investment grade
(cost $15,366).................................. $ 16,079
--------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 91.1%
BASIC MATERIALS -- 15.2%
3,000 Abitibi-Consolidated Finance L.P.,
7.875%, 8-1-2009 H.............................. $ 3,195
470 Abitibi-Consolidated, Inc.,
7.75%, 6-15-2011 H.............................. 498
1,415 Acetex Corp.,
10.875%, 8-1-2009............................... 1,557
775 Airgas, Inc.,
9.125%, 10-1-2011............................... 872
1,895 AK Steel Corp.,
7.75%, 6-15-2012 H.............................. 1,919
895 AK Steel Corp.,
7.875%, 2-15-2009 H............................. 908
2,295 Ball Corp.,
6.875%, 12-15-2012.............................. 2,502
1,375 Boise Cascade Corp.,
7.50%, 2-1-2008................................. 1,535
610 Boise Cascade LLC,
7.125%, 10-15-2014 M............................ 637
2,130 Bowater Canada Finance,
7.95%, 11-15-2011 H............................. 2,305
400 Bowater, Inc.,
6.50%, 6-15-2013 H.............................. 401
1,310 California Steel Industries, Inc.,
6.125%, 3-15-2014............................... 1,287
1,735 Cascades, Inc.,
7.25%, 2-15-2013................................ 1,874
1,696 Crown European Holdings S.A.,
9.50%, 3-1-2011 H............................... 1,933
1,982 FMC Corp.,
10.25%, 11-1-2009............................... 2,299
700 Foundation PA Coal Co.,
7.25%, 8-1-2014 M............................... 748
2,340 Georgia-Pacific Corp.,
8.125%, 5-15-2011............................... 2,732
2,750 Georgia-Pacific Corp.,
8.875%, 2-1-2010................................ 3,238
600 Hercules, Inc.,
11.125%, 11-15-2007 H........................... 726
260 Hercules, Inc.,
6.60%, 8-1-2027................................. 268
150 Huntsman International LLC (Euro),
10.125%, 7-1-2009............................... 200
1,820 Huntsman International LLC,
9.875%, 3-1-2009................................ 2,020
</Table>
The accompanying notes are an integral part of this financial statement.
109
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
BASIC MATERIALS -- (CONTINUED)
$ 265 IMC Global, Inc.,
11.25%, 6-1-2011 H.............................. $ 311
1,430 Intertape Polymer Group, Inc.,
8.50%, 8-1-2014 M............................... 1,421
300 Jefferson Smurfit Corp.,
7.50%, 6-1-2013................................. 327
1,210 Jefferson Smurfit Corp.,
8.25%, 10-1-2012................................ 1,343
415 Kappa Beheer B.V. (Euro),
10.625%, 7-15-2009.............................. 562
720 Longview Fibre Co.,
10.00%, 1-15-2009............................... 790
1,510 Lyondell Chemical Co.,
9.625%, 5-1-2007 H.............................. 1,657
1,750 Nalco Co.,
7.75%, 11-15-2011............................... 2,387
1,760 Nalco Co.,
7.75%, 11-15-2011............................... 1,905
240 Norampac, Inc.,
6.75%, 6-1-2013 H............................... 253
555 Norske Skog Canada Ltd.,
7.375%, 3-1-2014 H.............................. 577
880 Norske Skog Canada Ltd.,
8.625%, 6-15-2011............................... 950
380 Nova Chemicals Corp.,
6.50%, 1-15-2012................................ 400
835 Oregon Steel Mills, Inc.,
10.00%, 7-15-2009 H............................. 927
1,445 Owens-Brockway Glass Container, Inc.,
8.75%, 11-15-2012............................... 1,629
1,250 Owens-Brockway Glass Container, Inc.,
8.875%, 2-15-2009............................... 1,372
1,485 Peabody Energy Corp.,
6.875%, 3-15-2013............................... 1,630
1,730 Plastipak Holdings, Inc.,
10.75%, 9-1-2011................................ 1,938
115 PolyOne Corp.,
10.625%, 5-15-2010 H............................ 128
1,615 PolyOne Corp.,
8.875%, 5-1-2012................................ 1,724
440 Steel Dynamics, Inc.,
9.50%, 3-15-2009 H.............................. 487
1,050 Stone Container Corp.,
8.375%, 7-1-2012................................ 1,160
965 Stone Container Corp.,
9.75%, 2-1-2011................................. 1,076
645 United States Steel Corp.,
9.75%, 05-15-2010............................... 739
419 United States Steel LLC,
10.75%, 8-1-2008................................ 497
650 Westlake Chemical Corp.,
8.75%, 7-15-2011................................ 733
--------
60,577
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CAPITAL GOODS -- 4.8%
$ 1,699 AGCO Corp.,
9.50%, 5-1-2008................................. $ 1,826
1,105 Bombardier Recreational,
8.375%, 12-15-2013 M............................ 1,188
340 Cummins, Inc.,
6.75%, 2-15-2027................................ 357
430 Cummins, Inc.,
9.50%, 12-1-2010................................ 494
254 Flowserve Finance B.V., (Euro),
12.25%, 8-15-2010............................... 360
425 Jorgensen (Earle M.) Co.,
9.75%, 6-1-2012 H............................... 472
670 Joy Global, Inc.,
8.75%, 3-15-2012................................ 757
1,525 K2 Corp.,
7.375%, 7-1-2014 M.............................. 1,662
1,330 Rexnord Corp.,
10.125%, 12-15-2012............................. 1,503
3,195 SPX Corp.,
6.25%, 6-15-2011................................ 3,259
2,690 Terex Corp.,
7.375%, 1-15-2014............................... 2,878
930 Terex Corp.,
9.25%, 7-15-2011................................ 1,042
1,100 Xerox Corp.,
6.875%, 8-15-2011............................... 1,174
400 Xerox Corp.,
7.125%, 6-15-2010 H............................. 433
1,120 Xerox Corp.,
7.625%, 6-15-2013............................... 1,232
570 Xerox Corp.,
9.75%, 1-15-2009................................ 668
--------
19,305
--------
CONSUMER CYCLICAL -- 8.4%
1,675 Ahold Finance USA, Inc.,
8.25%, 7-15-2010................................ 1,913
852 Collins & Aikman Floorcoverings, Inc.,
9.75%, 2-15-2010................................ 911
1,320 Dana Corp.,
6.50%, 3-15-2008 H.............................. 1,389
3,455 Delhaize America, Inc.,
8.125%, 4-15-2011............................... 3,981
1,610 Finlay Fine Jewelry Corp.,
8.375%, 6-1-2012................................ 1,759
2,520 Group 1 Automotive, Inc.,
8.25%, 8-15-2013................................ 2,665
900 Ingles Markets, Inc.,
8.875%, 12-1-2011............................... 972
1,400 J.C. Penney Co., Inc.,
7.65%, 8-15-2016................................ 1,589
</Table>
The accompanying notes are an integral part of this financial statement.
110
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CONSUMER CYCLICAL -- (CONTINUED)
$ 935 Millennium America, Inc.,
7.00%, 11-15-2006 H............................. $ 977
594 Navistar International Corp.,
9.375%, 6-1-2006................................ 641
1,380 Perry Ellis International, Inc.,
8.875%, 9-15-2013............................... 1,477
670 Phillips Van-Heusen Corp.,
7.75%, 11-15-2023............................... 673
850 Russel Metals, Inc.,
6.375%, 3-1-2014................................ 850
1,150 Saks, Inc.,
7.50%, 12-1-2010................................ 1,219
910 Scotts Co.,
6.625%, 11-15-2013.............................. 960
1,430 Sealy Mattress Co.,
8.25%, 6-15-2014 H.............................. 1,512
3,300 Sonic Automotive, Inc.,
8.625%, 8-15-2013............................... 3,490
1,640 Stater Brothers Holdings, Inc.,
8.125%, 6-15-2012............................... 1,738
2,544 TRW Automotive, Inc.,
9.375%, 2-15-2013............................... 2,926
860 United Auto Group, Inc.,
9.625%, 3-15-2012............................... 957
450 United Components, Inc.,
9.375%, 6-15-2013 H............................. 488
475 Warnaco Inc.,
8.875%, 6-15-2013............................... 531
--------
33,618
--------
CONSUMER STAPLES -- 4.2%
623 Armkel LLC,
9.50%, 8-15-2009................................ 678
520 Constellation Brands, Inc.,
8.125%, 1-15-2012 H............................. 569
890 Dole Food Co., Inc.,
7.25%, 6-15-2010................................ 932
910 Dole Food Co., Inc.,
8.625%, 5-1-2009................................ 1,008
1,560 Johnsondiversey, Inc.,
9.625%, 5-15-2012............................... 1,755
950 Pierre Foods, Inc.,
9.875%, 7-15-2012 MH............................ 964
315 Pilgrim's Pride Corp.,
9.625%, 9-15-2011............................... 354
1,750 PPC Escrow Corp.,
9.25%, 11-15-2013 H............................. 1,951
2,500 Premium Standard Farms, Inc.,
9.25%, 6-15-2011 H.............................. 2,638
215 Remy Cointreau (Euro),
6.50%, 7-1-2010 M............................... 289
1,185 Smithfield Foods, Inc.,
8.00%, 10-15-2009............................... 1,315
1,725 Tembec Industries, Inc.,
7.75%, 3-15-2012................................ 1,691
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
$ 2,400 Tembec Industries, Inc.,
8.625%, 6-30-2009 H............................. $ 2,442
275 United Agri Products,
8.25%, 12-15-2011 M............................. 297
--------
16,883
--------
ENERGY -- 5.4%
625 Chesapeake Energy Corp.,
6.875%, 1-15-2016............................... 669
555 Chesapeake Energy Corp.,
7.75%, 1-15-2015................................ 616
415 Citgo Petroleum Corp.,
6.00%, 10-15-2011 M............................. 422
2,650 Coastal Corp.,
7.75%, 6-15-2010 H.............................. 2,743
2,340 Comstock Resources, Inc.,
6.875%, 3-1-2012................................ 2,422
1,055 CONSOL Energy, Inc.,
7.875%, 3-1-2012................................ 1,192
1,070 El Paso CGP Co.,
6.50%, 6-1-2008................................. 1,070
1,125 Giant Industries, Inc.,
8.00%, 5-15-2014 H.............................. 1,173
195 Houston Exploration Co.,
7.00%, 6-15-2013................................ 207
1,469 Magnum Hunter Resources, Inc.,
9.60%, 3-15-2012 H.............................. 1,678
1,410 Newpark Resources, Inc.,
8.625%, 12-15-2007.............................. 1,431
700 Plains Exploration & Production Co.,
8.75%, 7-1-2012................................. 791
906 Port Arthur Finance Corp.,
12.50%, 1-15-2009............................... 1,060
410 Premcor Refining Group, Inc.,
6.125%, 5-1-2011................................ 433
1,580 Premcor Refining Group, Inc.,
9.25%, 2-1-2010................................. 1,797
1,040 Tesoro Petroleum Corp.,
8.00%, 4-15-2008................................ 1,131
750 Tesoro Petroleum Corp.,
9.625%, 11-1-2008 H............................. 827
975 Whiting Petroleum Corp.,
7.25%, 5-1-2012................................. 1,024
--------
20,686
--------
FINANCE -- 6.8%
2,335 BCP Caylux Holdings Corp.,
9.625%, 6-15-2014 M............................. 2,615
1,125 BSN Glasspack Obligation (Euro),
9.25%, 8-1-2009 M............................... 1,581
1,650 Burns Philip Capital Property Ltd.,
9.75%, 7-15-2012................................ 1,815
390 Couche-Tard US Finance Corp.,
7.50%, 12-15-2013............................... 420
435 Forest City Enterprises, Inc.,
7.625%, 6-1-2015................................ 461
3,415 Host Marriott L.P.,
7.00%, 8-15-2012 M.............................. 3,688
</Table>
The accompanying notes are an integral part of this financial statement.
111
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 2,145 IPC Acquisition Corp.,
11.50%, 12-15-2009.............................. $ 2,370
475 La Quinta Properties,
7.00%, 8-15-2012 M.............................. 510
1,250 La Quinta Properties,
8.875%, 3-15-2011............................... 1,413
4,566 Lehman High Yield TRAIN,
8.2105%, 2004-1 8-1-2015 MX..................... 4,977
1,450 Poster Financial Group,
8.75%, 12-1-2011 H.............................. 1,519
1,090 Senior Housing Properties Trust,
7.875%, 4-15-2015............................... 1,199
485 United Rentals North America, Inc.,
6.50%, 2-15-2012................................ 480
1,650 United Rentals North America, Inc.,
7.00%, 2-15-2014 H.............................. 1,522
1,000 United Rentals North America, Inc.,
7.75%, 11-15-2013 H............................. 968
605 Ventas Realty L.P.,
8.75%, 5-1-2009................................. 684
700 Ventas Realty L.P. Capital Corp.,
6.625%, 10-15-2014 M............................ 714
225 Western Financial Bank,
9.625%, 5-15-2012............................... 257
--------
27,193
--------
HEALTH CARE -- 3.0%
1,150 Curative Health Services,
10.75%, 5-1-2011................................ 1,023
1,050 General Nutrition Centers, Inc.,
8.50%, 12-1-2010................................ 1,058
1,875 Jean Coutu Group (PJC), Inc.,
8.50%, 8-1-2014 MH.............................. 1,912
470 Medex, Inc.,
8.875%, 5-15-2013............................... 512
680 Omnicare, Inc.,
8.125%, 3-15-2011............................... 738
1,640 Polypore, Inc.,
11.00%, 10-1-2012 (Zero coupon through
10-1-2008, thereafter 10.50%) MY................ 1,062
975 Polypore, Inc.,
8.75%, 5-15-2012 M.............................. 1,019
2,300 Province Healthcare Co.,
7.50%, 6-1-2013................................. 2,599
1,600 Tenet Healthcare Corp.,
6.50%, 6-1-2012................................. 1,452
580 United Surgical Partners International, Inc.,
10.00%, 12-15-2011.............................. 666
--------
12,041
--------
SERVICES -- 15.7%
3,035 Allied Waste North America, Inc.,
5.75%, 2-15-2011................................ 2,800
170 Allied Waste North America, Inc.,
7.625%, 1-1-2006................................ 176
400 Allied Waste North America, Inc.,
7.875%, 4-15-2013 H............................. 407
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SERVICES -- (CONTINUED)
$ 1,900 Allied Waste North America, Inc.,
8.875%, 4-1-2008................................ $ 2,014
290 Allied Waste North America, Inc.,
9.25%, 9-1-2012 H............................... 313
960 Argosy Gaming Co.,
7.00%, 1-15-2014................................ 1,022
325 Atlantic Broadband Finance LLC,
9.375%, 1-15-2014 M............................. 304
525 Boyd Gaming Corp.,
6.75%, 4-15-2014................................ 551
1,905 Boyd Gaming Corp.,
7.75%, 12-15-2012............................... 2,100
970 Boyd Gaming Corp.,
8.75%, 4-15-2012................................ 1,096
460 Browning-Ferris Industries, Inc.,
6.375%, 1-15-2008............................... 454
500 Browning-Ferris Industries, Inc.,
7.875%, 3-15-2005............................... 507
1,000 Canwest Media, Inc.,
7.625%, 4-15-2013............................... 1,088
225 CBD Media, Inc.,
8.625%, 6-1-2011................................ 236
690 CSC Holdings, Inc.,
6.75%, 4-15-2012 M.............................. 714
750 CSC Holdings, Inc.,
7.25%, 7-15-2008................................ 796
1,700 CSC Holdings, Inc.,
7.625%, 4-1-2011 H.............................. 1,849
1,500 CSC Holdings, Inc.,
8.125%, 8-15-2009............................... 1,650
650 CSC Holdings, Inc.,
8.125%, 7-15-2009............................... 715
1,945 Dex Media West LLC, Inc.,
9.875%, 8-15-2013............................... 2,300
3,275 EchoStar DBS Corp.,
5.75%, 10-1-2008................................ 3,349
290 Felcor Lodging L.P.,
10.00%, 9-15-2008............................... 305
800 Fresenius Finance B.V. (Euro),
7.75%, 4-30-2009 M.............................. 1,109
591 HMH Properties, Inc.,
7.875%, 8-1-2008................................ 607
900 Intrawest Corp.,
7.50%, 10-15-2013 M............................. 963
1,190 Intrawest Corp.,
7.50%, 10-15-2013............................... 1,273
1,275 Iron Mountain, Inc.,
6.625%, 1-1-2016................................ 1,269
1,335 Iron Mountain, Inc.,
7.75%, 1-15-2015................................ 1,442
3,660 John Q. Hammons Hotels, Inc.
8.875%, 5-15-2012............................... 4,209
905 Lamar Media Corp.,
7.25%, 1-1-2013................................. 982
1,110 Mail Well I Corp.,
7.875%, 12-1-2013............................... 1,071
</Table>
The accompanying notes are an integral part of this financial statement.
112
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SERVICES -- (CONTINUED)
$ 1,180 Mandalay Resort Group,
6.50%, 7-31-2009 H.............................. $ 1,242
1,155 Medianews Group, Inc.,
6.875%, 10-1-2013............................... 1,198
1,750 MGM Mirage, Inc.,
6.75%, 9-1-2012 M............................... 1,855
415 MGM Mirage, Inc.,
8.50%, 9-15-2010................................ 477
535 Mohegan Tribal Gaming Authority,
8.00%, 4-1-2012 H............................... 591
1,085 Mohegan Tribal Gaming Authority,
7.125%, 8-15-2014 M............................. 1,158
1,430 Premier Entertainment,
10.75%, 2-1-2012................................ 1,523
175 Primedia, Inc.,
7.625%, 4-1-2008................................ 176
700 Primedia, Inc.,
8.00%, 5-15-2013 MH............................. 702
1,000 Quebecor Media, Inc.,
11.125%, 7-15-2011.............................. 1,158
420 R.H. Donnelley Financial Corp. I,
8.875%, 12-15-2010 M............................ 477
1,485 Sensus Metering Systems,
8.625%, 12-15-2013.............................. 1,530
1,660 Service Corp. International,
6.50%, 3-15-2008................................ 1,743
1,090 Service Corp International,
6.75%, 4-1-2016................................. 1,123
670 Service Corp. International,
7.70%, 4-15-2009................................ 735
600 Service Corp. International,
7.70%, 4-15-2009................................ 658
300 Service Corp. International,
7.875%, 2-1-2013................................ 327
2,300 Starwood Hotels & Resorts Worldwide, Inc.,
7.375%, 5-1-2007................................ 2,475
1,320 Station Casinos, Inc.,
6.00%, 4-1-2012................................. 1,379
500 Sun Media Corp.,
7.625%, 2-15-2013............................... 542
450 Unisys Corp.,
7.875%, 4-1-2008................................ 462
2,080 Venetian Casino Resort LLC,
11.00%, 6-15-2010............................... 2,389
780 Wynn Las Vegas LLC Corp.,
12.00%, 11-1-2010............................... 975
--------
62,566
--------
TECHNOLOGY -- 14.7%
730 ACC Escrow Corp.,
10.00%, 8-1-2011................................ 613
2,090 Amkor Technology, Inc.,
7.75%, 5-15-2013 H.............................. 1,803
4,313 AT&T Corp.,
8.05%, 11-15-2011 H............................. 4,944
1,645 Bio-Rad Laboratories, Inc.,
7.50%, 8-15-2013................................ 1,781
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
TECHNOLOGY -- (CONTINUED)
$ 960 Centennial Cell Communications,
10.125%, 6-15-2013 H............................ $ 1,042
780 Charter Communications Holdings II,
10.25%, 9-15-2010............................... 811
2,195 Charter Communications Holdings LLC,
10.00%, 4-1-2009 H.............................. 1,833
1,575 Charter Communications Operating LLC,
8.00%, 4-30-2012 M.............................. 1,593
780 Cincinnati Bell, Inc.,
8.375%, 1-15-2014 H............................. 745
800 Corning, Inc.,
8.30%, 4-4-2025................................. 833
2,560 DirecTV Holdings LLC,
8.375%, 3-15-2013............................... 2,918
990 Dobson Communications Corp.,
8.875%, 10-1-2013 H............................. 666
785 DRS Technologies, Inc.,
6.875%, 11-1-2013............................... 824
1,680 Fimep S.A.,
10.50%, 2-15-2013............................... 1,965
1,285 Fisher Scientific International, Inc.,
8.125%, 5-1-2012................................ 1,433
900 Flextronics International Ltd.,
6.25%, 5-15-2013................................ 945
925 Houghton Mifflin Co.,
8.25%, 2-1-2011 H............................... 984
1,000 Itron, Inc.,
7.75%, 5-15-2012 M.............................. 1,012
420 L-3 Communications Corp.,
6.125%, 7-15-2013............................... 436
1,200 L-3 Communications Corp.,
7.625%, 6-15-2012............................... 1,326
1,855 Lucent Technologies, Inc.,
5.50%, 11-15-2008 H............................. 1,901
1,149 Lucent Technologies, Inc.,
6.45%, 3-15-2029................................ 987
394 MCI, Inc.,
5.91%, 5-1-2007................................. 393
394 MCI, Inc.,
6.69%, 5-1-2009................................. 388
338 MCI, Inc.,
7.74%, 5-1-2014................................. 326
6,270 Nextel Communications, Inc.,
7.375%, 8-1-2015................................ 6,960
430 PanAmSat Corp.,
6.375%, 1-15-2008............................... 445
795 PanAmSat Corp.,
6.875%, 1-15-2028............................... 700
2,500 PerkinElmer, Inc.,
8.875%, 1-15-2013............................... 2,844
3,300 Qwest Capital Funding, Inc.,
7.25%, 2-15-2011 H.............................. 3,077
590 Qwest Corp.,
6.875%, 9-15-2033............................... 507
215 Qwest Corp.,
7.25%, 10-15-2035............................... 187
</Table>
The accompanying notes are an integral part of this financial statement.
113
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
TECHNOLOGY -- (CONTINUED)
$ 1,850 Qwest Corp.,
9.125%, 3-15-2012 M............................. $ 2,086
1,220 Rayovac Corp.,
8.50%, 10-1-2013................................ 1,339
200 Rogers Cantel, Inc.,
9.75%, 6-1-2016................................. 230
2,200 Rogers Wireless Communications Inc.,
6.375%, 3-1-2014................................ 2,101
300 Rogers Wireless Communications, Inc.,
9.625%, 5-1-2011................................ 340
1,670 Sanmina-SCI Corp.,
10.375%, 1-15-2010.............................. 1,958
1,200 Shaw Communications, Inc.,
8.25%, 4-11-2010................................ 1,377
1,750 Solectron Corp.,
9.625%, 2-15-2009 H............................. 1,956
--------
58,609
--------
TRANSPORTATION -- 1.0%
825 CP Ships Ltd.,
10.375%, 7-15-2012.............................. 951
2,900 Trinity Industries, Inc.,
6.50%, 3-15-2014................................ 2,886
--------
3,837
--------
UTILITIES -- 11.9%
4,610 AES Corp.,
8.75%, 5-15-2013 M.............................. 5,325
1,590 Calpine Canada Energy Finance,
8.50%, 5-1-2008 H............................... 978
150 Calpine Corp.,
8.625%, 8-15-2010 H............................. 86
350 CMS Energy Corp.,
7.50%, 1-15-2009................................ 375
910 CMS Energy Corp.,
7.75%, 8-1-2010 H............................... 996
2,530 CMS Energy Corp.,
8.50%, 4-15-2011 H.............................. 2,872
1,540 DPL, Inc.,
6.875%, 9-1-2011................................ 1,679
3,360 Dynegy Holdings, Inc.,
10.125%, 7-15-2013 M............................ 3,914
500 Edison Mission Energy, Corp.,
7.73%, 6-15-2009................................ 533
4,100 Edison Mission Energy Corp.
9.875%, 04-15-2011.............................. 4,848
900 El Paso Corp.,
7.875%, 6-15-2012 H............................. 938
925 El Paso Natural Gas Co.,
7.625%, 8-1-2010................................ 1,000
865 Illinois Power Co.,
7.50%, 6-15-2009................................ 992
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
UTILITIES -- (CONTINUED)
$ 1,370 Illinois Power Co.,
7.50%, 7-15-2025................................ $ 1,416
785 Illinois Power Co.,
11.50%, 12-15-2010.............................. 931
665 Kansas Gas & Electric Co.,
8.29%, 3-29-2016................................ 686
2,015 Monongahela Power Co.,
7.36%, 1-15-2010 H.............................. 2,200
225 Nevada Power Co.,
6.50%, 4-15-2012 H.............................. 234
400 Nevada Power Co.,
8.50%, Ser Z 1-1-2023........................... 412
4,600 NRG Energy, Inc.,
8.00%, 12-15-2013 M............................. 5,066
220 Sierra Pacific Power Co.,
6.25%, 4-15-2012................................ 228
730 Sierra Pacific Power Co.,
8.00%, 6-1-2008................................. 803
625 Southern Star Central Corp.,
8.50%, 8-1-2010................................. 691
330 TECO Energy, Inc.,
7.00%, 5-1-2012 H............................... 356
1,980 TECO Energy, Inc.,
7.20%, 5-1-2011................................. 2,158
4,350 Tennessee Gas Pipeline Co.,
7.50%, 4-1-2017................................. 4,654
2,035 Transcontinental Gas Pipeline Corp.,
7.00%, 8-15-2011................................ 2,264
800 Transcontinental Gas Pipeline Corp.,
8.875%, 7-15-2012............................... 988
--------
47,623
--------
Total corporate bonds:
non-investment grade
(cost $345,027)................................. $362,938
--------
COMMON STOCK -- 0.0%
BASIC MATERIALS -- 0.0%
1 Solutia (Warrants) BV............................. $ @@
--------
CONSUMER CYCLICAL -- 0.0%
1 Hosiery Corp. of America, Inc., Class A IBV....... @@
--------
TECHNOLOGY -- 0.0%
1 Minorplanet Systems USA, Inc. (Warrants) IBV...... @@
--------
Total common stock
(cost $34)...................................... $ @@
--------
PREFERRED STOCKS -- 0.1%
CAPITAL GOODS -- 0.1%
3 Xerox Corp., 7.50%, Conv. 11-27-2021 M............ $ 225
--------
</Table>
The accompanying notes are an integral part of this financial statement.
114
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
TECHNOLOGY -- 0.0%
20 Adelphia Communications Corp.,
7.50%, Conv. 2-1-2005 B......................... $ 20
15 McLeod USA, Inc.
2.50%, Conv. Pfd. 4-18-2012 B................... 26
--------
46
--------
Total preferred stocks
(cost $727)..................................... $ 271
--------
Total long-term investments
(cost $361,732)................................. $379,867
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 14.9%
FINANCE -- 3.1%
$ 2,439 BNP Paribas Repurchase Agreement,
1.77%, 11-1-2004................................ $ 2,439
2,439 RBS Greenwich Repurchase Agreement,
1.77%, 11-1-2004................................ 2,439
2,571 State Street Bank Repurchase Agreement,
1.75%, 11-1-2004................................ 2,571
4,877 UBS Warburg LLC Repurchase Agreement,
1.77%, 11-1-2004................................ 4,877
200 US Treasury Bill,
1.69%, 12-23-2004 [ ]........................... 199
--------
12,525
--------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 11.8%
46,995 Navigator Prime Portfolio......................... 46,995
--------
Total short-term investments
(cost $59,520).................................. $ 59,520
--------
Total investments in securities
(cost $421,252) O............................... $439,387
--------
</Table>
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 12.44% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $421,519 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 20,047
Unrealized depreciation........................ (2,179)
--------
Net unrealized appreciation.................... $ 17,868
--------
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
V The following securities are considered illiquid. Securities identified
below as 144A are 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>
<Caption>
PERIOD SHARES/ COST
ACQUIRED PAR SECURITY BASIS
-------- ------- -------- -----
1994 1 Hosiery Corp. of America, Inc. $21
Class A - 144A
1997 1 Minorplanet Systems USA 13
(Warrants) - 144A
2003 1 Solutia (Warrants) @@
2003 @@ VoiceStream Wireless Corp. due @@
2009
</Table>
The aggregate value of these securities at October 31, 2004 rounds
to zero.
M 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, 2004, was $53,120, which
represents 13.30% of total net assets.
I 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
at October 31, 2004, rounds to zero.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
Y The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
H Security is fully or partially on loan at October 31, 2004.
[ ]Security pledged as initial margin deposit for open futures contracts
at October 31, 2004.
Futures contract outstanding at October 31, 2004:
<Table>
<Caption>
UNREALIZED
NUMBER DEPRECIATION
OF AT
DESCRIPTION CONTRACTS POSITION EXPIRATION 10/31/2004
----------- --------- -------- ---------- ------------
CBT 10 Year U.S.
Treasury Note
futures............ 140 Short December 2004 $(186)
-----
</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.
115
THE HARTFORD INCOME ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -------
FIXED INCOME FUNDS -- 78.3%
360 Hartford High Yield Fund, Class Y................. $ 2,939
223 Hartford Inflation Plus Fund, Class Y............. 2,450
454 Hartford Short Duration Fund, Class Y............. 4,573
310 Hartford Total Return Bond Fund, Class Y.......... 3,429
-------
Total fixed income funds (cost $13,302)........... $13,391
-------
MONEY MARKET FUND -- 17.2%
2,937 Hartford Money Market Fund, Class Y............... $ 2,937
-------
Total money market fund
(cost $2,937)................................... $ 2,937
-------
Total investments in securities
(cost $16,239) O................................ $16,328
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $16,239 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation............................. $95
Unrealized depreciation............................. (6)
---
Net unrealized appreciation......................... $89
===
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of this financial statement.
116
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
MUNICIPAL BONDS -- 0.4%
GENERAL OBLIGATIONS -- 0.4%
$ 150 Illinois,
5.10%, GO Taxable Pension 6-1-2033.............. $ 145
--------
Total municipal bonds (cost $150)................. $ 145
--------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 9.7%
FINANCE -- 9.7%
71 AQ Finance CEB Trust,
6.93%, 8-25-2033 MX............................. $ 70
41 Asset Backed Funding Corp. NIM Trust,
4.55%, 12-26-2033 M............................. 41
3,176 Banc of America Commercial Mortgage, Inc.,
5.50%, 11-10-2039 MWX........................... 79
8,268 Banc of America Commercial Mortgage, Inc.,
5.75%, 6-1-2039 WX.............................. 101
3,549 Bear Stearns Commercial Mortgage Securities, Inc.,
5.50%, 2-11-2041 MWX............................ 79
75 Citibank Credit Card Issuance Trust,
5.00%, 6-10-2015................................ 75
6,462 Commercial Mortgage Pass-Through Certificates,
5.50%, 3-10-2039 MWX............................ 149
200 CS First Boston Mortgage Securities Corp.,
3.81%, 12-15-2036............................... 201
100 DLJ Mortgage Acceptance Corp.,
7.50%, 12-17-2027 M............................. 102
50 Equity One ABS, Inc.,
4.34%, 7-25-2034 X.............................. 50
100 Equity One ABS, Inc.,
5.46%, 12-25-2033............................... 101
200 First Union-Lehman Brothers-Bank of America,
6.56%, 11-18-2035............................... 218
100 Ford Credit Auto Owner Trust,
4.29%, 11-15-2007............................... 101
200 GE Capital Commercial Mortgage Corp.,
5.00%, 12-10-2037............................... 208
159 GMAC Commercial Mortgage Securities, Inc.,
3.34%, 5-10-2036................................ 155
200 GMAC Commercial Mortgage Securities, Inc.,
4.22%, 4-10-2040................................ 203
79 Green Tree Financial Corp,
5.76%, 11-1-2018................................ 80
50 Green Tree Financial Corp.,
6.48%, 12-1-2030................................ 52
33 Green Tree Financial Corp.,
7.30%, 1-15-2026................................ 35
23 Green Tree Financial Corp.,
7.35%, 5-15-2027................................ 25
200 Greenwich Capital Commercial Funding Corp.,
4.02%, 1-5-2036................................. 202
43 Home Equity Asset Trust,
5.25%, 4-27-2034 M.............................. 43
200 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
4.13%, 1-12-2038................................ 202
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 175 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
4.33%, 12-12-2034............................... $ 178
185 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
4.38%, 10-12-2037............................... 189
2,560 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
5.50%, 1-15-2038 MWX............................ 77
200 Morgan Stanley Capital I,
4.17%, 12-15-2041............................... 202
169 Morgan Stanley Dean Witter Capital I,
5.38%, 1-15-2039................................ 178
67 Navistar Financial Corp. Owner Trust,
3.08%, 11-15-2009............................... 66
48 Residential Asset Mortgage Products, Inc.,
6.14%, 6-25-2032................................ 48
92 Residential Asset Mortgage Products, Inc.,
6.59%, 6-25-2032................................ 92
22 Soundview Home Equity Loan Trust, Inc.,
8.64%, 5-25-2030................................ 23
100 Wachovia Bank Commercial Mortgage Trust,
4.87%, 2-15-2035................................ 102
7,096 Wachovia Bank Commercial Mortgage Trust,
5.50%, 2-15-2041 MWX............................ 159
68 WFS Financial Owner Trust,
3.05%, 12-20-2010............................... 68
10 Whole Auto Loan Trust,
6.00%, 4-15-2009 M.............................. 10
3,964
--------
Total asset backed and
commercial mortgage securities
(cost $3,943)................................... $ 3,964
--------
CORPORATE BONDS: INVESTMENT GRADE -- 28.6%
BASIC MATERIALS -- 1.4%
100 Inco Ltd.,
0%, Conv. 3-29-2021 Y........................... $ 97
100 International Paper Co.,
5.25%, 4-1-2016................................. 99
65 Lubrizol Corp.,
5.50%, 10-1-2014................................ 65
100 Phelps Dodge Corp.,
9.50%, 6-1-2031................................. 149
150 Rock-Tenn Co.,
5.625%, 3-15-2013............................... 152
--------
562
--------
CAPITAL GOODS -- 1.2%
55 American Standard, Inc.,
7.375%, 2-1-2008................................ 61
100 Bombardier, Inc.,
6.75%, 5-1-2012 M............................... 94
150 Hutchinson Whampoa International Ltd.,
6.25%, 1-24-2014 M.............................. 156
</Table>
The accompanying notes are an integral part of this financial statement.
117
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
CAPITAL GOODS -- (CONTINUED)
$ 50 Tyco International Group S.A.,
6.00%, 11-15-2013............................... $ 54
100 Tyco International Group S.A.,
6.375%, 2-15-2006............................... 104
--------
469
--------
CONSUMER CYCLICAL -- 1.7%
75 CRH America, Inc.,
5.30%, 10-15-2013............................... 77
150 DaimlerChrysler N.A. Holdings Corp.,
6.50%, 11-15-2013............................... 164
50 Fosters Financial Corp.,
4.875%, 10-1-2014 M............................. 50
200 General Motors Corp.,
7.125%, 7-15-2013............................... 208
100 May Department Stores Co.,
5.75%, 7-15-2014 M.............................. 103
100 PHH Corp.,
6.00%, 3-1-2008................................. 107
--------
709
--------
CONSUMER STAPLES -- 0.8%
150 Northern Rock plc,
5.60%, 4-30-2049 M.............................. 155
150 Tyson Foods, Inc.,
8.25%, 10-1-2011................................ 178
--------
333
--------
ENERGY -- 2.5%
100 Diamond Offshore Drill Co.,
1.50%, 4-15-2031................................ 101
100 Gazprom International S.A.,
7.20%, 2-1-2020 M............................... 105
125 Marathon Oil Corp.,
9.375%, 2-15-2012............................... 162
120 Pemex Project Funding Master Trust,
7.375%, 12-15-2014.............................. 133
100 Petroliam Nasional Berhad,
7.625%, 10-15-2026 M............................ 119
100 Transocean, Inc.,
1.50%, 5-15-2021................................ 99
100 Valero Energy Corp.,
7.50%, 4-15-2032................................ 120
75 XTO Energy, Inc.,
4.90%, 2-1-2014................................. 75
75 XTO Energy, Inc.,
6.25%, 4-15-2013................................ 83
--------
997
--------
FINANCE -- 10.4%
125 ACE INA Holdings, Inc.,
5.875%, 6-15-2014............................... 130
150 Arden Realty L.P.,
5.20%, 9-1-2011................................. 153
100 Banque Cent De Tunisie,
7.375%, 4-25-2012............................... 114
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 125 Capital One Bank,
5.125%, 2-15-2014............................... $ 126
75 Chile (Republic of),
5.50%, 1-15-2013................................ 78
100 El Salvador (Republic of),
8.50%, 7-25-2011 M.............................. 113
25 Farmers Exchange Capital,
7.20%, 7-15-2048 M.............................. 25
100 Ford Motor Credit Co.,
6.50%, 1-25-2007................................ 105
100 Ford Motor Credit Co.,
7.00%, 10-1-2013................................ 106
125 Goldman Sachs Group, Inc.,
5.15%, 1-15-2014................................ 127
100 Halyk Savings Bank of Kazakhstan,
8.125%, 10-7-2009 M............................. 103
100 Household Finance Corp.,
7.00%, 5-15-2012................................ 116
100 HSBC Capital Funding L.P.,
4.61%, 12-27-2049 M............................. 97
25 HVB Funding Trust III,
9.00%, 10-22-2031 M............................. 32
265 Istar Financial, Inc.,
5.70%, 3-1-2014................................. 271
50 J.P. Morgan Chase & Co.,
5.125%, 9-15-2014............................... 51
175 J.P. Morgan Chase & Co.,
5.25%, 5-1-2015................................. 179
40 Kazkommerts International B.V.,
7.00%, 11-3-2009 MI............................. 40
150 Merrill Lynch & Co. Inc.,
5.45%, 7-15-2014................................ 157
100 Mizuho Financial Group, Inc.,
5.79%, 4-15-2014 M.............................. 104
175 Morgan Stanley,
4.75%, 4-1-2014................................. 171
100 Natexis AMBS Co. LLC,
8.44%, 12-29-2049 M............................. 115
525 New South Wales Treasury Corp.,
6.50%, 5-1-2006................................. 399
100 Rabobank Capital Funding II,
5.26%, 12-29-2049 M............................. 103
65 Russian Federation,
8.25%, 3-31-2010................................ 71
100 Santander Central Hispano Issuances Ltd.,
7.625%, 9-14-2010............................... 119
75 Shurgard Storage Centers, Inc.,
5.875%, 3-15-2013............................... 77
35 South Africa (Republic of),
6.50%, 6-2-2014................................. 38
100 South Africa (Republic of),
7.375%, 4-25-2012............................... 114
100 Swedbank Foreningssparbanken,
9.00%, 12-31-2049 M............................. 122
25 TuranAlem Finance B.V.,
7.875%, 6-2-2010................................ 26
</Table>
The accompanying notes are an integral part of this financial statement.
118
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 30 TuranAlem Finance B.V.,
8.00%, 3-24-2014 M.............................. $ 29
200 UFJ Finance Aruba AEC,
6.75%, 7-15-2013................................ 223
35 United Mexican States,
4.625%, 10-8-2008............................... 36
100 Vornado Realty L.P.,
4.75%, 12-1-2010................................ 101
100 Washington Mutual, Inc.,
4.625%, 4-1-2014................................ 96
100 Westpac Capital Trust IV,
5.26%, 12-31-2049 M............................. 99
70 Woori Bank,
5.75%, 3-13-2014 M.............................. 74
--------
4,240
--------
HEALTH CARE -- 1.3%
15 Bausch & Lomb, Inc.,
6.95%, 11-15-2007............................... 16
53 Bausch & Lomb, Inc.,
7.125%, 8-1-2028................................ 57
100 Boston Scientific Corp.,
5.45%, 6-15-2014................................ 105
75 Manor Care, Inc.,
6.25%, 5-1-2013................................. 80
100 Universal Health Services, Inc.,
6.75%, 11-15-2011............................... 111
150 Wyeth,
5.50%, 2-1-2014................................. 154
--------
523
--------
SERVICES -- 2.8%
10 American Greetings Corp.,
6.10%, 8-1-2028................................. 11
150 Clear Channel Communications, Inc.,
5.50%, 9-15-2014................................ 151
100 Comcast Cable Communications, Inc.,
6.75%, 1-30-2011................................ 112
75 Harrah's Operating Co., Inc.,
5.375%, 12-15-2013.............................. 76
150 Hyatt Equities LLC,
6.875%, 6-15-2007 M............................. 160
100 InterActive Corp.,
7.00%, 1-15-2013................................ 111
125 Liberty Media Corp.,
5.70%, 5-15-2013................................ 126
150 Marriott International, Inc.,
7.875%, 9-15-2009............................... 174
100 News America Holdings, Inc.,
7.75%, 1-20-2024................................ 119
50 News America Holdings, Inc.,
9.25%, 2-1-2013................................. 65
50 Sun Microsystems, Inc.,
7.65%, 8-15-2009................................ 56
--------
1,161
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
TECHNOLOGY -- 4.3%
$ 210 AT&T Wireless Services, Inc.,
8.125%, 5-1-2012................................ $ 256
100 British Sky Broadcasting Group plc,
6.875%, 2-23-2009............................... 111
125 Cox Communications, Inc.,
4.625%, 6-1-2013................................ 119
150 Deutsche Telekom International Finance B.V.,
5.25%, 7-22-2013................................ 155
150 France Telecom S.A.,
8.50%, 3-1-2011................................. 180
210 Intelsat Ltd.,
6.50%, 11-1-2013................................ 180
150 Motorola, Inc.,
8.00%, 11-1-2011................................ 181
100 Rogers Cable, Inc.,
6.25%, 6-15-2013................................ 100
100 Sprint Capital Corp.,
8.375%, 3-15-2012............................... 123
150 Thomas & Betts Corp.,
7.25%, 6-1-2013................................. 163
160 Turner Broadcasting System, Inc.,
8.375%, 7-1-2013................................ 196
--------
1,764
--------
TRANSPORTATION -- 0.3%
100 Continental Airlines, Inc.,
6.56%, 2-15-2012................................ 108
--------
UTILITIES -- 1.9%
155 Centerpoint Energy, Inc.,
6.85%, 6-1-2015................................. 171
75 Consumers Energy Co.,
5.375%, 4-15-2013............................... 78
50 Consumers Energy Co.,
6.00%, 2-15-2014................................ 54
150 Duke Energy Corp.,
5.30%, 10-1-2015................................ 155
100 Southern California Edison Co.,
8.00%, 2-15-2007................................ 110
100 Tampa Electric Co.,
6.375%, 8-15-2012............................... 110
100 Western Resources, Inc.,
7.875%, 5-1-2007................................ 111
--------
789
--------
Total corporate bonds:
investment grade
(cost $11,194).................................. $ 11,655
--------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 26.7%
BASIC MATERIALS -- 4.8%
200 Abitibi-Consolidated, Inc.,
6.00%, 6-20-2013................................ $ 191
60 AK Steel Corp.,
7.75%, 6-15-2012................................ 61
40 AK Steel Corp.,
7.875%, 2-15-2009............................... 41
</Table>
The accompanying notes are an integral part of this financial statement.
119
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
BASIC MATERIALS -- (CONTINUED)
$ 45 Boise Cascade LLC,
7.125%, 10-15-2014 M............................ $ 47
100 Bowater Canada Finance,
7.95%, 11-15-2011............................... 108
65 Bowater, Inc.,
6.50%, 6-15-2013................................ 65
100 Cascades, Inc.,
7.25%, 2-15-2013................................ 108
70 Crown European Holdings S.A.,
9.50%, 3-1-2011................................. 80
40 Equistar Chemicals L.P.,
8.75%, 2-15-2009................................ 44
75 FMC Corp.,
10.25%, 11-1-2009............................... 87
100 Georgia-Pacific Corp.,
8.875%, 5-15-2031............................... 123
75 International Steel Group, Inc.,
6.50%, 4-15-2014................................ 80
140 Intertape Polymer Group, Inc.,
8.50%, 8-1-2014 M............................... 139
85 Jefferson Smurfit Corp.,
7.50%, 6-1-2013................................. 93
60 Lyondell Chemical Co.,
9.625%, 5-1-2007................................ 66
15 Norampac, Inc.,
6.75%, 6-1-2013................................. 16
50 Norske Skog Canada Ltd.,
7.375%, 3-1-2014................................ 52
80 Norske Skog Canada Ltd.,
8.625%, 6-15-2011............................... 86
100 Nova Chemicals Corp.,
7.00%, 5-15-2006................................ 105
75 Owens-Brockway Glass Container, Inc.,
8.75%, 11-15-2012............................... 85
15 Peabody Energy Corp.,
6.875%, 3-15-2013............................... 16
75 Plastipak Holdings, Inc.,
10.75%, 9-1-2011................................ 84
70 PolyOne Corp.,
8.875%, 5-1-2012................................ 75
33 United States Steel LLC,
10.75%, 8-1-2008................................ 39
52 Westlake Chemical Corp.,
8.75%, 7-15-2011................................ 59
--------
1,950
--------
CAPITAL GOODS -- 1.5%
100 Cummins, Inc.,
9.50%, 12-1-2010................................ 115
100 K2 Corp.,
7.375%, 7-1-2014 M.............................. 109
145 Rexnord Corp.,
10.125%, 12-15-2012............................. 164
30 SPX Corp.,
6.25%, 6-15-2011................................ 31
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CAPITAL GOODS -- (CONTINUED)
$ 75 Terex Corp.,
7.375%, 1-15-2014............................... $ 80
100 Xerox Corp.,
7.125%, 6-15-2010............................... 108
--------
607
--------
CONSUMER CYCLICAL -- 2.4%
50 Dana Corp.,
6.50%, 3-1-2009................................. 53
25 Dana Corp.,
6.50%, 3-15-2008................................ 26
100 Delhaize America, Inc.,
8.125%, 4-15-2011............................... 115
75 Group 1 Automotive, Inc.,
8.25%, 8-15-2013................................ 79
75 Ingles Markets, Inc.,
8.875%, 12-1-2011............................... 81
75 Phillips Van-Heusen Corp.,
7.75%, 11-15-2023............................... 76
65 Russel Metals, Inc.,
6.375%, 3-1-2014................................ 65
100 Saks, Inc.,
7.50%, 12-1-2010................................ 106
75 Sonic Automotive, Inc.,
8.625%, 8-15-2013............................... 79
105 Stater Brothers Holdings, Inc.,
8.125%, 6-15-2012............................... 111
97 TRW Automotive, Inc.,
9.375%, 2-15-2013............................... 112
25 United Components, Inc.,
9.375%, 6-15-2013............................... 27
30 Warnaco Inc.,
8.875%, 6-15-2013............................... 34
--------
964
--------
CONSUMER STAPLES -- 1.1%
30 Del Monte Corp.,
8.625%, 12-15-2012.............................. 34
90 Pierre Foods, Inc.,
9.875%, 7-15-2012 M............................. 91
100 PPC Escrow Corp.,
9.25%, 11-15-2013............................... 111
100 Smithfield Foods, Inc.,
7.75%, 5-15-2013................................ 111
100 Tembec Industries, Inc.,
7.75%, 3-15-2012................................ 98
--------
445
--------
ENERGY -- 1.2%
50 Citgo Petroleum Corp.,
6.00%, 10-15-2011 M............................. 51
65 Comstock Resources, Inc.,
6.875%, 3-1-2012................................ 67
10 CONSOL Energy, Inc.,
7.875%, 3-1-2012................................ 11
45 Houston Exploration Co.,
7.00%, 6-15-2013................................ 48
</Table>
The accompanying notes are an integral part of this financial statement.
120
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
ENERGY -- (CONTINUED)
$ 41 Port Arthur Finance Corp.,
12.50%, 1-15-2009............................... $ 48
85 Premcor Refining Group, Inc.,
6.75%, 2-1-2011................................. 92
15 Premcor Refining Group, Inc.,
9.25%, 2-1-2010................................. 17
25 Tesoro Petroleum Corp.,
9.625%, 11-1-2008............................... 28
50 Vintage Petroleum, Inc.,
8.25%, 5-1-2012................................. 56
70 Whiting Petroleum Corp.,
7.25%, 5-1-2012................................. 74
--------
492
--------
FINANCE -- 3.2%
115 BCP Caylux Holdings Corp.,
9.625%, 6-15-2014 M............................. 129
88 Brazil (Republic of),
3.125%, 4-15-2012 X............................. 81
110 Columbia (Republic of),
10.75%, 1-15-2013............................... 127
150 Crescent Real Estate Equities L.P.,
9.25%, 4-15-2009................................ 163
21 Forest City Enterprises, Inc.,
7.625%, 6-1-2015................................ 22
15 Host Marriott L.P.,
7.00%, 8-15-2012 M.............................. 16
75 IPC Acquisition Corp.,
11.50%, 12-15-2009.............................. 83
20 Lebanon (Republic of),
10.125%, 8-6-2008............................... 22
60 Panama (Republic of),
8.875%, 9-30-2027............................... 62
50 Panama (Republic of),
9.625%, 2-8-2011................................ 57
60 Peru (Republic of),
4.50%, 3-7-2017................................. 53
40 Peru (Republic of),
8.75%, 11-21-2033............................... 40
50 Philippines (Republic of),
10.625%, 3-16-2025.............................. 52
50 Philippines (Republic of),
8.375%, 3-12-2009............................... 53
50 Turkey (Republic of),
12.00%, 12-15-2008.............................. 61
100 Ukraine Government,
6.875%, 3-4-2011 M.............................. 101
70 United Rentals NA, Inc.,
6.50%, 2-15-2012................................ 69
75 Venezuela (Republic of),
5.375%, 8-7-2010................................ 69
50 Venezuela (Republic of),
9.25%, 9-15-2027................................ 51
--------
1,311
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
HEALTH CARE -- 0.7%
$ 100 HCA, Inc.,
6.95%, 5-1-2012................................. $ 105
100 Jean Coutu Group (PJC), Inc.,
8.50%, 8-1-2014 M............................... 102
60 Select Medical Corp.,
9.50%, 6-15-2009................................ 65
--------
272
--------
SERVICES -- 3.9%
110 Allied Waste North America, Inc.,
5.75%, 2-15-2011................................ 101
50 Atlantic Broadband Finance LLC,
9.375%, 1-15-2014 M............................. 47
65 CBD Media, Inc.,
8.625%, 6-1-2011................................ 68
125 CSC Holdings, Inc.,
7.625%, 7-15-2018............................... 133
75 Dex Media West LLC, Inc.,
9.875%, 8-15-2013............................... 89
70 EchoStar DBS Corp.,
5.75%, 10-1-2008................................ 72
50 Grupo Posadas S.A. de C.V.,
8.75%, 10-4-2011 M.............................. 51
26 HMH Properties, Inc.,
7.875%, 8-1-2008................................ 27
75 Intrawest Corp.,
7.50%, 10-15-2013 M............................. 80
100 ITT Corp.,
7.375%, 11-15-2015.............................. 113
100 John Q. Hammons Hotels, Inc.,
8.875%, 5-15-2012............................... 115
30 Lamar Media Corp.,
7.25%, 1-1-2013................................. 32
30 Mail Well I Corp.,
7.875%, 12-1-2013............................... 29
75 Medianews Group, Inc.,
6.875%, 10-1-2013............................... 78
50 Primedia, Inc.,
7.625%, 4-1-2008................................ 50
50 Primedia, Inc.,
8.00%, 5-15-2013 M.............................. 50
45 R.H. Donnelley Financial Corp. I,
8.875%, 12-15-2010 M............................ 51
110 Reader's Digest Association, Inc.,
6.50%, 3-1-2011................................. 114
35 Service Corp. International,
6.50%, 3-15-2008................................ 37
20 Service Corp. International,
6.75%, 4-1-2016................................. 21
100 Service Corp. International,
7.70%, 4-15-2009................................ 110
100 Station Casinos, Inc.,
6.00%, 4-1-2012................................. 104
--------
1,572
--------
</Table>
The accompanying notes are an integral part of this financial statement.
121
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- 4.5%
$ 45 Amkor Technology, Inc.,
7.75%, 5-15-2013................................ $ 39
115 AT&T Corp.,
8.05%, 11-15-2011............................... 132
35 Charter Communications Holdings LLC,
10.00%, 4-1-2009................................ 29
130 Charter Communications Operating LLC,
8.00%, 4-30-2012 M.............................. 132
80 Cincinnati Bell, Inc.,
8.375%, 1-15-2014............................... 76
125 Crown Castle International Corp.,
10.75%, 8-1-2011................................ 138
80 DirecTV Holdings LLC,
8.375%, 3-15-2013............................... 91
60 Fimep S.A.,
10.50%, 2-15-2013............................... 70
100 Fisher Scientific International, Inc.,
6.75%, 8-15-2014 M.............................. 107
65 Fisher Scientific International, Inc.,
8.125%, 5-1-2012................................ 73
85 Houghton Mifflin Co.,
8.25%, 2-1-2011................................. 90
95 L-3 Communications Corp.,
6.125%, 7-15-2013............................... 99
200 Nextel Communications, Inc.,
7.375%, 8-1-2015................................ 222
50 PanAmSat Corp.,
6.875%, 1-15-2028............................... 44
95 PerkinElmer, Inc.,
8.875%, 1-15-2013............................... 108
135 Qwest Corp.,
7.875%, 9-1-2011 M.............................. 144
150 Rogers Wireless Communications, Inc.,
6.375%, 3-1-2014................................ 143
100 Solectron Corp.,
9.625%, 2-15-2009............................... 112
--------
1,849
--------
TRANSPORTATION -- 0.8%
150 Royal Caribbean Cruises Ltd.,
6.875%, 12-1-2013............................... 165
150 Trinity Industries, Inc.,
6.50%, 3-15-2014................................ 149
--------
314
--------
UTILITIES -- 2.6%
150 AES Corp.,
8.75%, 5-15-2013 M.............................. 173
50 Calpine Canada Energy Finance,
8.50%, 5-1-2008................................. 31
60 CMS Energy Corp.,
8.50%, 4-15-2011................................ 68
50 Dynegy Holdings, Inc.,
10.125%, 7-15-2013 M............................ 58
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
UTILITIES -- (CONTINUED)
$ 25 El Paso Corp.,
7.875%, 6-15-2012............................... $ 26
50 Montana Power Co.,
7.30%, 12-1-2006 M.............................. 54
100 Nevada Power Co.,
9.00%, 8-15-2013................................ 116
150 NRG Energy, Inc.,
8.00%, 12-15-2013 M............................. 165
105 TECO Energy, Inc.,
7.20%, 5-1-2011................................. 114
100 Tennessee Gas Pipeline Co.,
8.375%, 6-15-2032............................... 108
100 Texas-New Mexico Power Co.,
6.125%, 6-1-2008................................ 104
50 Transcontinental Gas Pipeline Corp.,
7.00%, 8-15-2011................................ 56
--------
1,073
--------
Total corporate bonds:
non-investment grade
(cost $10,333).................................. $ 10,849
--------
U.S. GOVERNMENT SECURITIES -- 24.5%
U.S. TREASURY SECURITIES -- 24.5%
1,597 3.125% 2007....................................... $ 1,613
1,411 3.375% 2009....................................... 1,417
6,850 3.50% 2009........................................ 6,921
--------
9,951
--------
Total U.S. government securities
(cost $9,914)................................... $ 9,951
--------
U.S. GOVERNMENT AGENCIES -- 8.5%
FEDERAL HOME LOAN MORTGAGE -- 2.2%
200 4.10% 2014........................................ $ 199
692 5.50% 2032........................................ 707
--------
906
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 6.3%
737 5.00% 2017........................................ 754
1,767 5.50% 2032 -- 2033................................ 1,803
--------
2,557
--------
Total U.S. government agencies
(cost $3,421)................................... $ 3,463
--------
Total long-term investments
(cost $38,955).................................. $ 40,027
--------
SHORT-TERM INVESTMENTS -- 0.3%
FINANCE -- 0.3%
27 BNP Paribas Repurchase Agreement,
1.77%, 11-1-2004................................ $ 27
27 RBS Greenwich Repurchase Agreement,
1.77%, 11-1-2004................................ 27
29 State Street Bank Repurchase Agreement,
1.75%, 11-1-2004................................ 29
</Table>
The accompanying notes are an integral part of this financial statement.
122
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 55 UBS Warburg LLC Repurchase Agreement,
1.77%, 11-1-2004................................ $ 55
--------
138
--------
Total short-term investments
(cost $138)..................................... $ 138
--------
Total investments in securities
(cost $39,093) O................................ $ 40,165
========
</Table>
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 13.88% of total net asset at October 31, 2004.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $39,093 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $1,200
Unrealized depreciation.......................... (128)
------
Net unrealized appreciation...................... $1,072
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $4,704, which represents
11.56% of total net assets.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
I The cost of securities purchased on a when-issued basis at
October 31, 2004 was $40.
Y The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
W The interest rates disclosed for interest only strips represent
effective yields based upon estimated future cash flows at October 31,
2004.
The accompanying notes are an integral part of this financial statement.
123
THE HARTFORD INFLATION PLUS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE
SECURITIES -- 1.9%
FINANCE -- 1.9%
$ 1,620 American Express Credit Account Master Trust,
2.37%, 2-15-2012 MX............................. $ 1,620
4,000 CS First Boston Mortgage Securities Corp., 2.52%,
11-15-2014 MX................................... 4,024
1,900 Granite Mortgages plc,
2.51%, 9-20-2044 X.............................. 1,898
2,000 Granite Mortgages plc,
3.45%, 10-20-2041 X............................. 2,016
3,000 Permanent Financing plc,
2.68%, 6-10-2042 X.............................. 3,002
2,000 Wachovia Bank Commercial Mortgage Trust,
2.33%, 10-15-2015 MX............................ 1,999
--------
14,559
--------
Total asset backed and
commercial mortgage securities
(cost $14,558).................................. $ 14,559
--------
CORPORATE BONDS: INVESTMENT GRADE -- 0.3%
FINANCE -- 0.3%
2,600 SLM Corp.,
3.78%, 4-1-2009 X............................... $ 2,626
--------
Total corporate bonds:
investment grade
(cost $2,606)................................... $ 2,626
--------
U.S. GOVERNMENT SECURITIES -- 95.8%
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.5%
3,000 Tennessee Valley Authority,
3.375%, 1-15-2007 J............................. $ 3,832
--------
U.S. TREASURY SECURITIES -- 95.3%
23,915 0.875% 2010 J..................................... 23,863
57,535 1.875% 2013 J..................................... 61,097
108,127 2.00% 2014 J...................................... 113,983
49,170 2.375% 2025 J..................................... 51,710
72,005 3.00% 2012 J...................................... 84,961
35,260 3.375% 2007 -- 2032 J............................. 46,371
33,955 3.50% 2011 J...................................... 42,295
89,000 3.625% 2008 -- 2028 J............................. 120,081
97,812 3.875% 2009 -- 2029 J............................. 141,151
32,695 4.25% 2010 J...................................... 43,163
--------
728,675
--------
Total U.S. government securities
(cost $713,640)................................. $732,507
--------
Total long-term investments
(cost $730,804)................................. $749,692
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- 0.5%
FINANCE -- 0.5%
$ 801 BNP Paribas Repurchase Agreement,
1.77%, 11-1-2004................................ $ 801
801 RBS Greenwich Repurchase Agreement,
1.77%, 11-1-2004................................ 801
844 State Street Bank Repurchase Agreement,
1.75%, 11-1-2004................................ 844
1,601 UBS Warburg LLC Repurchase Agreement,
1.77%, 11-1-2004................................ 1,601
--------
4,047
--------
Total short-term investments
(cost $4,047)................................... $ 4,047
--------
Total investments in securities
(cost $734,851) O............................... $753,739
========
</Table>
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 0.90% of total net asset at October 31, 2004.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $737,450 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $16,314
Unrealized depreciation......................... (25)
-------
Net unrealized appreciation..................... $16,289
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $7,643, which represents
1.00% of total net assets.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
J Inflation-protected securities 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.
@@ 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.
124
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 93.1%
CANADA -- 7.7%
25 Canadian National Railway Co. H................... $ 1,340
18 Petro-Canada...................................... 994
56 Research In Motion Ltd. B......................... 4,922
11 SNC-Lavalin Group, Inc. .......................... 497
--------
7,753
--------
FINLAND -- 2.6%
167 Nokia Oyj ADR..................................... 2,580
--------
FRANCE -- 11.4%
165 Alcatel S.A. BIH.................................. 2,414
37 Cie Generale D'Optique Essilor
International S.A. I............................ 2,504
14 Club Mediterranee BIH............................. 644
7 Pernod-Ricard I................................... 941
11 PSA Peugeot Citroen IH............................ 701
5 Rodriguez Group H................................. 222
13 Total S.A. IH..................................... 2,705
11 Unibail IH........................................ 1,395
--------
11,526
--------
GERMANY -- 4.8%
11 Adidas-Salomon AG I............................... 1,549
15 Allianz AG I...................................... 1,554
91 Bayerische Hypo-und Vereinsbank AG BI............. 1,784
--------
4,887
--------
GREECE -- 1.8%
67 EFG Eurobank Ergasias S.A. I...................... 1,844
--------
HONG KONG -- 4.7%
28 CNOOC Ltd. ADR.................................... 1,425
359 Esprit Holdings Ltd. I............................ 1,919
177 Hutchison Whampoa Ltd. I.......................... 1,359
--------
4,703
--------
INDIA -- 2.4%
37 Infosys Technologies Ltd. ADR..................... 2,467
--------
INDONESIA -- 0.8%
43 P.T. Telekomunikasi Indonesia ADR................. 816
--------
IRELAND -- 4.5%
176 Elan Corp. plc ADR BH............................. 4,546
--------
ITALY -- 2.4%
60 Autostrade S.p.A. I............................... 1,304
93 Saipem S.p.A. I................................... 1,070
--------
2,374
--------
JAPAN -- 9.5%
145 Bank of Yokohama Ltd. I........................... 864
@@ Japan Tobacco, Inc. I............................. 1,807
196 Minebea Co. Ltd. I................................ 831
4 Nintendo Co. Ltd. IH.............................. 394
2 OBIC Co. Ltd. I................................... 337
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
JAPAN -- (CONTINUED)
48 Pioneer Corp IH................................... $ 887
48 Suzuki Motor Corp. I.............................. 847
51 Trend Micro, Inc. I............................... 2,435
@@ UFJ Holdings, Inc. BI............................. 1,168
--------
9,570
--------
LUXEMBOURG -- 1.4%
137 SES Global M...................................... 1,413
--------
MEXICO -- 0.8%
14 Grupo Televisa S.A. ADR........................... 770
--------
NETHERLANDS -- 3.9%
67 European Aeronautic Defence and Space Co. IH...... 1,920
59 Koninklijke (Royal) KPN N.V. BI................... 1,978
--------
3,898
--------
NORWAY -- 0.6%
61 Tandberg ASA IH................................... 579
--------
RUSSIA -- 3.4%
11 LUKOIL ADR........................................ 1,328
9 Mobile Telesystems ADR............................ 1,350
20 OAO Gazprom Class S ADR M......................... 743
--------
3,421
--------
SOUTH KOREA -- 3.8%
26 Hyundai Motor Co. Ltd. I.......................... 1,279
73 Kia Motors Corp. I................................ 687
33 LG Electronics, Inc. I............................ 1,840
--------
3,806
--------
SPAIN -- 1.4%
89 Banco Bilbao Vizcaya Argentaria S.A. I............ 1,395
--------
SWEDEN -- 1.8%
63 Telefonaktiebolaget LM Ericsson ADR BH............ 1,827
SWITZERLAND -- 4.1%
5 Kuehne & Nagel International AG MI................ 882
16 Roche Holding AG I................................ 1,620
60 Swatch Group AG I................................. 1,649
--------
4,151
--------
UNITED KINGDOM -- 19.3%
175 BP plc I.......................................... 1,699
372 British Airways plc BI............................ 1,474
243 Capita Group plc I................................ 1,569
12 Carnival plc I.................................... 627
726 Carphone Warehouse Group plc I.................... 2,218
274 EMI Group plc I................................... 1,067
130 GUS plc I......................................... 2,132
137 InterContinental Hotels Group plc I............... 1,680
168 Kingfisher plc I.................................. 931
461 Rolls-Royce Group plc I........................... 2,194
8,703 Rolls-Royce Group plc Class B..................... 16
</Table>
The accompanying notes are an integral part of this financial statement.
125
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
103 Standard Chartered plc I.......................... $ 1,830
783 Vodafone Group plc I.............................. 2,009
--------
19,446
--------
Total common stock
(cost $82,733).................................. $ 93,772
--------
PRINCIPAL
AMOUNT
-------
SHORT-TERM INVESTMENTS -- 22.5%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 15.5%
$15,711 Navigator Prime Portfolio......................... $ 15,711
--------
UNITED STATES -- 7.0%
526 ABN AMRO Joint Repurchase Agreement,
1.78%, 11/1/2004................................ 526
1,360 CS First Boston Joint Repurchase Agreement,
1.86%, 11/1/2004................................ 1,360
145 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11/1/2004................................ 145
1,088 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11/1/2004................................ 1,088
997 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11/1/2004................................ 997
176 UBS Securities Joint Repurchase Agreement,
1.77%, 11/1/2004................................ 176
2,720 UBS Securities Joint Repurchase Agreement,
1.86%, 11/1/2004................................ 2,720
--------
7,012
--------
Total short-term investments
(cost $22,723).................................. $ 22,723
--------
Total investments in securities
(cost $105,456) O............................... $116,495
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $106,002 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $10,723
Unrealized depreciation......................... (317)
-------
Net unrealized appreciation..................... $10,406
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $3,038, which represents
3.02% of total net assets.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $66,516, which represents 66.05% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ------------------------------------------------------------------
Basic Materials 2.5%
- ------------------------------------------------------------------
Capital Goods 5.5
- ------------------------------------------------------------------
Consumer Cyclical 16.2
- ------------------------------------------------------------------
Consumer Staples 4.7
- ------------------------------------------------------------------
Energy 8.8
- ------------------------------------------------------------------
Finance 34.2
- ------------------------------------------------------------------
Health Care 6.1
- ------------------------------------------------------------------
Services 6.8
- ------------------------------------------------------------------
Technology 26.9
- ------------------------------------------------------------------
Transportation 3.9
- ------------------------------------------------------------------
Other Assets & Liabilities -15.6
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of this financial statement.
126
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- --------- --------------
Euro Buy $ 44 $ 44 11/1/2004 $@@
Euro Buy 91 91 11/2/2004 @@
Euro Sell 3 3 11/2/2004 @@
Euro Sell 20 20 11/3/2004 @@
British Pound Buy 101 101 11/1/2004 @@
British Pound Buy 80 80 11/2/2004 @@
British Pound Buy 94 94 11/3/2004 @@
Hong Kong Dollars Buy 178 178 11/2/2004 @@
Japanese Yen Buy 1,020 1,018 11/1/2004 2
Japanese Yen Sell 213 213 11/4/2004 @@
Norwegian Krone Buy 27 27 11/1/2004 @@
---
$ 2
===
</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.
127
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 95.8%
BELGIUM -- 2.4%
51 Belgacom S.A. BM.................................. $ 1,872
51 Fortis IH......................................... 1,287
--------
3,159
--------
CANADA -- 3.9%
22 Canadian National Railway Co. .................... 1,181
25 EnCana Corp. H.................................... 1,249
13 Research In Motion Ltd. B......................... 1,182
55 Talisman Energy, Inc. H........................... 1,464
--------
5,076
--------
CHINA -- 0.9%
3,124 China Petroleum & Chemical Corp. Class H I........ 1,193
--------
DENMARK -- 1.0%
28 Carlsberg A/S Class B IH.......................... 1,281
--------
EGYPT -- 0.8%
60 Orascom Telecom Holding GDR B..................... 1,043
--------
FRANCE -- 16.6%
80 Alcatel S.A. BI................................... 1,167
1,643 Alstom BIH........................................ 1,108
48 AXA I............................................. 1,044
26 Cie Generale D'Optique Essilor International S.A.
IH.............................................. 1,730
56 Credit Agricole S.A. IH........................... 1,649
79 France Telecom S.A. MIH........................... 2,264
15 Groupe Danone IH.................................. 1,240
17 Lafarge S.A. IH................................... 1,569
14 Pinault-Printemps-Redoute S.A. IH................. 1,302
21 PSA Peugeot Citroen IH............................ 1,260
48 Societe Television Francaise 1 IH................. 1,444
18 Total S.A. IH..................................... 3,726
32 Veolia Environnement IH........................... 960
47 Vivendi Universal S.A. BIH........................ 1,290
--------
21,753
--------
GERMANY -- 6.5%
63 Bayerische Hypo-und Vereinsbank AG BI............. 1,235
22 Bayerische Motoren Werke (BMW) AG IH.............. 912
26 DaimlerChrysler AG IH............................. 1,084
75 Deutsche Lufthansa AG BIH......................... 984
31 E.ON AG I......................................... 2,520
18 Muenchener Rueckversicherungs-Gesellschaft AG
IH.............................................. 1,762
--------
8,497
--------
HONG KONG -- 1.6%
198 Esprit Holdings Ltd. I............................ 1,056
118 Sun Hung Kai Properties Ltd. I.................... 1,092
--------
2,148
--------
INDIA -- 1.0%
30 Infosys Technologies Ltd. I....................... 1,249
--------
INDONESIA -- 0.7%
45 P.T. Telekomunikasi Indonesia ADR................. 850
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
IRELAND -- 1.7%
66 Elan Corp. plc ADR BH............................. $ 1,690
72 Ryanair Holdings plc BI........................... 367
7 Ryanair Holdings plc ADR BH....................... 187
--------
2,244
--------
ITALY -- 2.5%
315 Capitalia S.p.A. IH............................... 1,211
90 ENI-Ente Nazionale Idrocarburi S.p.A. IH.......... 2,061
--------
3,272
--------
JAPAN -- 14.0%
38 Canon, Inc. I..................................... 1,874
86 Central Glass Co. Ltd. I.......................... 578
51 Eisai Co. Ltd. I.................................. 1,466
7 Electric Power Development Co. Ltd. M............. 180
29 Fuji Photo Film Co. Ltd. I........................ 984
] Japan Tobacco, Inc. I............................. 2,561
] Mitsubishi Tokyo Financial Group, Inc. I.......... 330
9 Nintendo Co. Ltd. IH.............................. 1,024
1 NTT DoCoMo, Inc. I................................ 1,279
48 Olympus Corp. IH.................................. 928
9 ORIX Corp. I...................................... 1,063
49 Sankyo Co. Ltd. I................................. 1,009
30 Shin-Etsu Chemical Co. Ltd. I..................... 1,119
152 Sumitomo Metal Mining Co. Ltd. I.................. 1,026
14 Takefuji Corp. I.................................. 885
] UFJ Holdings, Inc. BI............................. 960
37 World Co. Ltd. I.................................. 1,074
--------
18,340
--------
MALAYSIA -- 0.8%
388 Astro All Asia Networks plc B..................... 531
181 Resorts World BHD I............................... 455
--------
986
--------
NETHERLANDS -- 6.5%
99 ABN AMRO Holding N.V. I........................... 2,373
18 ASML Holding N.V. B............................... 260
78 ASML Holding N.V. BI.............................. 1,110
44 European Aeronautic Defence and
Space Co. IH.................................... 1,257
82 ING Groep N.V. I.................................. 2,185
189 Koninklijke Ahold N.V. BI......................... 1,313
--------
8,498
--------
PHILIPPINES -- 0.6%
32 Philippine Long Distance Telephone Co. BI......... 797
--------
RUSSIA -- 0.6%
5 Mobile Telesystems ADR............................ 784
--------
SOUTH KOREA -- 3.3%
104 Kia Motors Corp. I................................ 979
21 LG Electronics, Inc. I............................ 1,201
26 SK Corp. I........................................ 1,339
42 SK Telecom Co. Ltd. ADR........................... 828
--------
4,347
--------
</Table>
The accompanying notes are an integral part of these financial statements.
128
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- (CONTINUED)
SPAIN -- 1.2%
71 Iberdrola S.A. IH................................. $ 1,557
--------
SWEDEN -- 2.1%
178 Nordea Bank AB I.................................. 1,535
418 Telefonaktiebolaget LM Ericsson I................. 1,212
--------
2,747
--------
SWITZERLAND -- 5.6%
77 Novartis AG I..................................... 3,662
45 Swatch Group AG I................................. 1,251
32 UBS AG I.......................................... 2,341
--------
7,254
--------
TAIWAN -- 2.1%
555 Quanta Computer, Inc. I........................... 897
1,398 Taiwan Semiconductor Manufacturing Co.
Ltd. I.......................................... 1,857
--------
2,754
--------
THAILAND -- 0.3%
367 Kasikornbank Public Co. Ltd. BI................... 421
--------
UNITED KINGDOM -- 17.3%
55 AstraZeneca plc I................................. 2,243
119 Aviva plc I....................................... 1,187
78 GlaxoSmithKline plc I............................. 1,630
109 Imperial Tobacco Group plc I...................... 2,543
195 Kesa Electricals plc I............................ 974
170 Kingfisher plc I.................................. 945
66 Reckitt Benckiser plc I........................... 1,808
50 Rio Tinto plc I................................... 1,322
349 Rolls-Royce Group plc I........................... 1,663
11,112 Rolls-Royce Group plc Class B..................... 20
111 Royal Bank of Scotland Group plc I................ 3,268
1,342 Vodafone Group plc I.............................. 3,444
158 WPP Group plc I................................... 1,586
--------
22,633
--------
UNITED STATES -- 1.8%
19 Schlumberger Ltd. ................................ 1,215
35 Tyco International Ltd. .......................... 1,084
--------
2,299
--------
Total common stock
(cost $112,527)................................. $125,182
--------
PRINCIPAL MARKET
AMOUNT VALUE U
------- --------
CORPORATE BONDS: INVESTMENT GRADE -- 0.0%
CANADA -- 0.0%
$ 1 Canadian Government,
6.00%, 6-1-2008................................. $ 1
--------
Total corporate bonds:
investment grade
(cost $1)....................................... $ 1
--------
Total long-term investments
(cost $112,528)................................. $125,183
--------
SHORT-TERM INVESTMENTS -- 25.6%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 23.6%
30,806 Navigator Prime Portfolio......................... $ 30,806
--------
UNITED STATES -- 2.0%
200 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ 200
518 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 518
55 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 55
414 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 414
380 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 380
67 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 67
1,036 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,036
--------
2,670
--------
Total short-term investments
(cost $33,476).................................. $ 33,476
--------
Total investments in securities
(cost $146,004) O............................... $158,659
========
</Table>
The accompanying notes are an integral part of these financial statements.
129
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
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 94.03% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $146,175 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation......................... $14,776
Unrealized depreciation......................... (2,292)
-------
Net unrealized appreciation..................... $12,484
=======
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
M 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, 2004, was $4,316, which represents
3.30% of total net assets.
I Securities valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $109,562, which represents 83.84% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Buy $ 128 $ 128 11/03/2004 @@
Danish Krone Buy 169 169 11/01/2004 @@
Euro Buy 197 198 11/02/2004 $ (1)
Euro Buy 777 781 11/03/2004 (4)
Swedish Krona Buy 196 197 11/03/2004 (1)
Australian Dollar Sell 868 862 11/03/2004 (6)
Australian Dollar Sell 848 848 11/04/2004 @@
British Pound Sell 291 291 11/02/2004 @@
British Pound Sell 1,256 1,222 12/22/2004 (34)
Canadian Dollar Sell 322 321 11/01/2004 (1)
Euro Sell 940 941 11/02/2004 1
Canadian Dollar Sell 244 243 11/02/2004 (1)
Japanese Yen Sell 429 428 11/01/2004 (1)
Japanese Yen Sell 97 97 11/02/2004 @@
Japanese Yen Sell 319 319 11/04/2004 @@
Swiss Franc Sell 1,317 1,252 12/22/2004 (65)
-----
$(113)
=====
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
DIVERSIFICATION BY INDUSTRY
As of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ------------------------------------------------------------------
Basic Materials 5.6%
- ------------------------------------------------------------------
Capital Goods 6.6
- ------------------------------------------------------------------
Consumer Cyclical 11.8
- ------------------------------------------------------------------
Consumer Staples 7.2
- ------------------------------------------------------------------
Energy 9.4
- ------------------------------------------------------------------
Finance 44.5
- ------------------------------------------------------------------
Health Care 9.0
- ------------------------------------------------------------------
Services 4.8
- ------------------------------------------------------------------
Technology 19.1
- ------------------------------------------------------------------
Transportation 2.1
- ------------------------------------------------------------------
Utilities 1.3
- ------------------------------------------------------------------
Other Assets & Liabilities -21.4
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
130
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 101.2%
AUSTRALIA -- 1.3%
330 Adsteam Marine Ltd. I............................. $ 412
121 AWB Ltd. I........................................ 423
76 John Fairfax Holdings Ltd. I...................... 244
--------
1,079
--------
CAYMAN ISLANDS -- 0.0%
2,016 Far East Pharmaceutical Technology Co. Ltd. IH.... @@
--------
CHINA -- 1.5%
1,544 Beijing Capital International Airport Co. Ltd.
Class H IH...................................... 555
2,296 China Oilfield Services Ltd. I.................... 671
--------
1,226
--------
DENMARK -- 2.7%
30 Carlsberg A/S Class B IH.......................... 1,375
55 FLS Industries A/S Class B BH..................... 753
--------
2,128
--------
FINLAND -- 1.0%
28 Tietoenator Oyj I................................. 777
--------
FRANCE -- 11.8%
2,829 Alstom BIH........................................ 1,909
18 Atos Origin BIH................................... 1,095
11 Bacou-Dalloz H.................................... 864
39 M6-Metropole Television IH........................ 1,003
14 Marionnaud Parfumeries H.......................... 399
11 Nexans S.A. IH.................................... 382
75 NRJ Group IH...................................... 1,553
30 Remy Cointreau IH................................. 1,043
30 Societe Nationale d'Etude et de Construction de
Moteurs d'Avion BH.............................. 639
22 Sodexho Alliance S.A. IH.......................... 555
--------
9,442
--------
GERMANY -- 4.2%
20 Deutsche Postbank AG BMH.......................... 806
33 ELMOS Semiconductor AG I.......................... 567
6 Funkwerk AG I..................................... 259
13 Heidelberger Druckmaschinen AG BI................. 370
32 Hochtief AG IH.................................... 836
10 Schwarz Pharma AG IH.............................. 385
6 United Internet AG I.............................. 154
--------
3,377
--------
GREECE -- 2.6%
196 Aktor S.A. Technical Co. ......................... 687
44 Piraeus Bank S.A. I............................... 586
30 Titan Cement Co. S.A. ............................ 793
--------
2,066
--------
HONG KONG -- 1.1%
796 China Power International Development Ltd. B...... 312
1,451 i-CABLE Communications Ltd. ...................... 555
--------
867
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
ITALY -- 6.6%
71 Banca Popolare di Milano S.c.r.l. I............... $ 498
89 Brembo S.p.A. I................................... 645
79 Caltagirone Editore S.p.A. I...................... 669
94 Hera S.p.A. I..................................... 258
29 Permasteelisa S.p.A. I............................ 474
32 Recordati S.p.A. I................................ 724
373 Sorin S.p.A. BI................................... 1,109
24 Tod's S.p.A. I.................................... 948
--------
5,325
--------
JAPAN -- 26.8%
216 77 Bank Ltd. I.................................... 1,284
10 Aichi Bank Ltd. .................................. 750
23 Asatsu-DK, Inc. I................................. 652
20 Disco Corp. IH.................................... 872
@@ eAccess Ltd. I.................................... 264
174 Ebara Corp. IH.................................... 804
11 Eneserve Corp. I.................................. 415
16 Fujimi, Inc. I.................................... 411
25 Futaba Corp. I.................................... 581
10 Hogy Medical Co. Ltd. ............................ 392
32 Hokuto Corp. IH................................... 584
69 Hosiden Corp. I................................... 771
21 INES Corp. I...................................... 167
202 Joyo Bank Ltd. I.................................. 897
41 Kobayashi Pharmaceutical Co. Ltd. ................ 1,021
23 Komori Corp. I.................................... 317
14 Kose Corp. ....................................... 550
12 Milbon Co. Ltd. .................................. 337
82 Mochida Pharmaceutical Co. Ltd. IH................ 495
74 Mori Seiki Co. Ltd. I............................. 558
43 NEC Soft Ltd. IH.................................. 1,073
94 Nikon Corp. IH.................................... 920
61 Nippon Shinyaku Co. Ltd. I........................ 440
1 OBIC Business Consultants Co. Ltd. ............... 52
3 OBIC Co. Ltd. I................................... 562
126 Shiga Bank Ltd. I................................. 664
72 Suruga Bank Ltd. I................................ 553
21 Taiyo Ink Manufacturing Co. Ltd. I................ 751
88 Tanabe Seiyaku Co. Ltd. I......................... 799
82 The Bank of Nagoya Ltd. I......................... 425
34 THK Co. Ltd. IH................................... 596
40 Tokyo Ohka Kogyo Co. Ltd. I....................... 740
56 Toppan Forms Co. Ltd. I........................... 673
17 Towa Pharmaceutical Co. Ltd. ..................... 319
13 Union Tool Co. ................................... 400
22 Ushio, Inc. I..................................... 380
--------
21,469
--------
LIECHTENSTEIN -- 0.5%
3 Verwaltungs-und Privat-Bank AG I.................. 409
--------
MEXICO -- 1.0%
280 Kimberly-Clark de Mexico S.A. Class A............. 839
--------
NETHERLANDS -- 5.4%
30 AM N.V. I......................................... 238
273 Equant N.V. BI.................................... 1,141
</Table>
The accompanying notes are an integral part of these financial statements.
131
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- (CONTINUED)
NETHERLANDS -- (CONTINUED)
24 Unit 4 Agresso N.V. BI............................ $ 346
44 VNU N.V. IH....................................... 1,200
79 Wolters Kluwer N.V. I............................. 1,438
--------
4,363
--------
NEW ZEALAND -- 1.8%
247 Air New Zealand Ltd. BI........................... 263
380 Carter Hold Harvey Ltd. I......................... 560
213 Warehouse Group Ltd. I............................ 596
--------
1,419
--------
SINGAPORE -- 1.5%
393 Datacraft Asia Ltd. B............................. 310
803 MobileOne Ltd. ................................... 800
38 SembCorp Logistics Ltd. IH........................ 53
--------
1,163
--------
SOUTH KOREA -- 2.1%
208 Daewoo Securities Co. Ltd. BI..................... 597
94 Korea Exchange Bank BIH........................... 626
19 LG Household & Health Care Ltd. I................. 499
--------
1,722
--------
SPAIN -- 0.9%
42 Prosegur, Compania de Seguridad S.A. I............ 728
--------
SWEDEN -- 3.4%
106 Eniro AB I........................................ 899
24 Modern Times Group AB BH.......................... 540
25 Munters AB I...................................... 609
161 Teleca AB Class B BI.............................. 668
--------
2,716
--------
SWITZERLAND -- 3.1%
7 Bachem Holding AG Class B I....................... 405
25 Baloise Holding AG I.............................. 998
3 Julius Baer Holding Ltd. I........................ 760
9 Micronas Semiconductor Holding AG BI.............. 347
--------
2,510
--------
UNITED KINGDOM -- 21.9%
318 Aggreko plc....................................... 873
143 AMVESCAP plc I.................................... 776
52 Cambridge Antibody Technology Group plc BI........ 646
61 Capital Radio plc................................. 456
155 De La Rue plc I................................... 920
350 easyJet plc BI.................................... 1,011
66 Expro International Group plc..................... 437
178 FirstGroup plc I.................................. 936
457 Group 4 Securicor plc B........................... 976
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
UNITED KINGDOM -- (CONTINUED)
84 GWR Group plc I................................... $ 405
208 Hiscox plc I...................................... 610
117 Jardine Lloyd Thompson Group plc.................. 985
56 London Stock Exchange plc I....................... 375
342 Misys plc I....................................... 1,349
327 Novar plc......................................... 712
611 PHS Group plc I................................... 784
400 Rentokil Initial plc.............................. 1,135
165 Sage Group plc I.................................. 556
150 Scottish & Newcastle plc I........................ 1,110
87 Smiths Group plc I................................ 1,192
48 SurfControl plc BI................................ 488
64 VT Group plc I.................................... 317
108 Yule Catto & Co. plc I............................ 501
--------
17,550
--------
Total common stock
(cost $79,979).................................. $ 81,175
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 24.5%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 20.4%
$16,369 Navigator Prime Portfolio......................... $ 16,369
--------
UNITED STATES -- 4.1%
248 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ 248
642 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 642
69 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 69
513 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 513
471 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 471
83 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 83
1,284 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,284
--------
3,310
--------
Total short-term investments
(cost $19,679).................................. $ 19,679
--------
Total investments in securities
(cost $99,658) O................................ $100,854
========
</Table>
The accompanying notes are an integral part of these financial statements.
132
- --------------------------------------------------------------------------------
<Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $100,205 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation......................... $ 4,048
Unrealized depreciation......................... (3,399)
-------
Net unrealized appreciation..................... $ 649
=======
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
M 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, 2004, was $806, which represents 1.00%
of total net assets.
I Securities valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $63,483, which represents 79.17% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS
OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DELIVERY DATE (DEPRECIATION)
- ----------- ----------- ------- -------- ------------- --------------
Australian Dollar Buy $ 227 $ 227 11/4/2004 $ @@
Australian Dollar Buy 2,269 2,062 12/31/2004 207
Australian Dollar Buy 1,154 1,041 3/31/2005 113
Australian Dollar Sell 2,269 2,157 12/31/2004 (112)
Australian Dollar Sell 1,154 1,147 3/31/2005 (7)
Euro Buy 612 615 11/3/2004 (3)
Euro Sell 113 113 11/1/2004 @@
Euro Sell 10,691 10,403 12/31/2004 (288)
Euro Sell 866 866 9/30/2005 @@
British Pound Buy 1,688 1,692 11/3/2004 (4)
British Pound Sell 5,571 5,246 12/31/2004 (325)
British Pound Sell 1,069 1,057 3/31/2005 (12)
British Pound Sell 3,856 3,897 6/30/2005 41
Hong Kong Dollars Sell 251 251 11/2/2004 @@
Japanese Yen Buy 198 197 11/1/2004 1
Japanese Yen Buy 1,922 1,922 11/4/2004 @@
Japanese Yen Sell 22 22 11/2/2004 @@
Mexican Peso Buy 212 212 11/2/2004 @@
Singapore Dollar Sell 121 121 11/2/2004 @@
Singapore Dollar Sell 1 1 11/3/2004 @@
-----
$(389)
=====
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ------------------------------------------------------------------
Basic Materials 7.7%
- ------------------------------------------------------------------
Capital Goods 8.8
- ------------------------------------------------------------------
Consumer Cyclical 6.9
- ------------------------------------------------------------------
Consumer Staples 7.1
- ------------------------------------------------------------------
Energy 1.4
- ------------------------------------------------------------------
Finance 40.3
- ------------------------------------------------------------------
Health Care 9.1
- ------------------------------------------------------------------
Services 23.9
- ------------------------------------------------------------------
Technology 14.9
- ------------------------------------------------------------------
Transportation 5.3
- ------------------------------------------------------------------
Utilities 0.3
- ------------------------------------------------------------------
Other Assets & Liabilities -25.7
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
133
THE HARTFORD MIDCAP FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- 97.2%
BASIC MATERIALS -- 5.8%
363 Cameco Corp. ..................................... $ 29,464
1,058 Pactiv Corp. BH................................... 25,055
703 Precision Castparts Corp. ........................ 42,156
710 Rohm & Haas Co. .................................. 30,111
1,271 Smurfit-Stone Container Corp. BH.................. 22,070
----------
148,856
----------
CAPITAL GOODS -- 3.6%
475 Eaton Corp. ...................................... 30,376
623 Parker-Hannifin Corp. ............................ 44,024
632 Rolls-Royce Group plc I ......................... 3,010
1,136 Xerox Corp. BH.................................... 16,779
----------
94,189
----------
CONSUMER CYCLICAL -- 16.5%
325 Abercrombie & Fitch Co. Class A................... 12,737
2,061 American Tower Corp. Class A HB................... 35,420
287 Avery Dennison Corp. ............................. 17,485
650 BorgWarner, Inc. ................................. 30,156
582 CDW Corp. ........................................ 36,089
293 Centex Corp. ..................................... 15,229
126 Genuine Parts Co. ................................ 5,010
444 Johnson Controls, Inc. ........................... 25,452
712 Lear Corp. ....................................... 38,386
537 Lennar Corp. Class A.............................. 24,141
234 Liz Claiborne, Inc. .............................. 9,570
1,448 Michaels Stores, Inc. ............................ 42,125
332 Mohawk Industries, Inc. BH........................ 28,264
558 PACCAR, Inc. ..................................... 38,682
683 PetsMart, Inc. ................................... 21,842
4,659 Rinker Group Ltd. I............................... 30,270
159 Ross Stores, Inc. ................................ 4,172
88 Scotts Co. Class A BH............................. 5,677
116 Williams-Sonoma, Inc. BH.......................... 4,424
----------
425,131
----------
CONSUMER STAPLES -- 1.0%
628 Constellation Brands, Inc. Class A BH............. 24,644
----------
ENERGY -- 9.3%
1,097 Chesapeake Energy Corp. .......................... 17,640
803 EOG Resources, Inc. .............................. 53,467
907 GlobalSantaFe Corp. .............................. 26,757
473 Nabors Industries Ltd. BH......................... 23,235
901 Premcor, Inc. BH.................................. 35,159
643 Valero Energy Corp. .............................. 27,638
1,671 XTO Energy, Inc. ................................. 55,790
----------
239,686
----------
FINANCE AND INSURANCE -- 21.5%
261 AMBAC Financial Group, Inc. ...................... 20,380
482 Bank of Hawaii Corp. ............................. 23,039
327 Blackrock, Inc. .................................. 24,012
239 Brown & Brown, Inc. .............................. 9,993
450 City National Corp. .............................. 30,991
1,548 Countrywide Financial Corp. ...................... 49,434
1,502 Equifax, Inc. .................................... 39,267
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
FINANCE AND INSURANCE -- (CONTINUED)
167 Everest Re Group Ltd. ............................ $ 13,231
139 Federated Investors, Inc. Class B................. 4,030
408 Fidelity National Financial, Inc. ................ 15,401
627 Gallagher (Arthur J.) & Co. ...................... 17,605
242 Golden West Financial Corp. ...................... 28,260
1,303 Hibernia Corp. Class A............................ 37,787
943 Host Marriott Corp. .............................. 13,715
510 IPC Holdings Ltd. ................................ 20,631
513 iStar Financial, Inc. ............................ 21,232
661 Legg Mason, Inc. ................................. 42,091
837 Medco Health Solutions, Inc. B.................... 28,379
195 North Fork Bancorporation, Inc. .................. 8,619
2,365 Providian Financial Corp. BH...................... 36,774
267 Takefuji Corp. I.................................. 16,848
361 UnionBanCal Corp. ................................ 21,950
58 White Mountains Insurance Group Ltd. ............. 29,592
----------
553,261
----------
HEALTH CARE -- 7.8%
508 Applera Corp. -- Celera Genomics Group HB......... 6,518
1,364 Biovail Corp. BH.................................. 25,530
353 Cephalon, Inc. BH................................. 16,815
713 Edwards Lifesciences Corp. HB..................... 24,377
321 Elan Corp. plc ADR BH............................. 8,272
259 Gilead Sciences, Inc. B........................... 8,976
242 Guidant Corp. .................................... 16,095
318 Human Genome Sciences, Inc. BH.................... 3,270
1,508 King Pharmaceuticals, Inc. BH..................... 16,451
362 McKesson Corp. ................................... 9,642
2,678 Millennium Pharmaceuticals, Inc. BH............... 34,758
686 Vertex Pharmaceuticals, Inc. BH................... 7,467
807 Watson Pharmaceuticals, Inc. BH................... 22,616
----------
200,787
----------
SERVICES -- 11.1%
517 Alliance Data Systems Corp. HB.................... 21,863
329 Apollo Group, Inc. Class A B...................... 21,688
2,043 BISYS Group, Inc.H B.............................. 29,827
486 CheckFree Corp. BH................................ 15,057
1,316 Education Management Corp. BH..................... 35,295
784 GTECH Holdings Corp. ............................. 18,548
270 Harrah's Entertainment, Inc. ..................... 15,806
616 Lamar Advertising Co. BH.......................... 25,519
468 Manpower, Inc. ................................... 21,157
278 MGM Mirage, Inc. B................................ 14,930
684 Monster Worldwide, Inc. BH........................ 19,197
328 NCR Corp. HB...................................... 18,477
218 Pixar BH.......................................... 17,524
248 Scripps (E.W.) Co. Class A........................ 11,819
----------
286,707
----------
TECHNOLOGY -- 17.7%
1,204 Amdocs Ltd. B..................................... 30,276
794 American Power Conversion Corp. .................. 15,306
590 Analog Devices, Inc. ............................. 23,741
1,267 ASML Holding N.V. BH.............................. 18,053
1,398 Citizens Communications Co. B..................... 18,735
</Table>
The accompanying notes are an integral part of these financial statements.
134
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- ----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
988 EchoStar Communications Corp. Class A BH.......... $ 31,225
702 Electronic Arts, Inc. BH.......................... 31,552
502 International Rectifier Corp. B................... 19,951
522 Intuit, Inc. BH................................... 23,673
1,992 Network Appliance, Inc. BH........................ 48,734
1,441 Nextel Communications, Inc. Class A BH............ 38,164
982 Red Hat, Inc. BH.................................. 12,606
347 Research In Motion Ltd. BH........................ 30,570
1,292 Rockwell Collins, Inc. ........................... 45,834
3,095 Solectron Corp. BH................................ 16,157
399 Symantec Corp. BH................................. 22,730
1,014 VeriSign, Inc. B.................................. 27,200
----------
454,507
----------
UTILITIES -- 2.9%
814 Cinergy Corp. .................................... 32,169
688 Energy East Corp. ................................ 17,345
744 Wisconsin Energy Corp. ........................... 24,271
----------
73,785
----------
Total common stock
(cost $2,033,166)............................... $2,501,553
----------
PRINCIPAL
AMOUNT
- --------
SHORT-TERM INVESTMENTS -- 13.2%
FINANCE -- 2.8%
$ 5,444 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 5,444
14,082 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 14,082
1,500 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 1,500
11,261 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 11,261
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- ----------
FINANCE -- (CONTINUED)
$ 10,322 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ $ 10,322
1,822 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 1,822
28,156 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 28,156
----------
72,587
----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 10.4%
267,426 Navigator Prime Portfolio......................... 267,426
----------
Total short-term investments
(cost $340,013)................................. $ 340,013
----------
Total investments in securities
(cost $2,373,179) O............................. $2,841,566
==========
</Table>
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 7.48% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $2,377,903 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $542,043
Unrealized depreciation........................ (78,380)
--------
Net unrealized appreciation.................... $463,663
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I 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
at October 31, 2004, was $50,128, which represents 1.95% of total net
assets.
H Security is fully or partially on loan at October 31, 2004.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- --------- --------------
British Pound Buy 255 255 11/2/2004 $@@
British Pound Buy 2,772 2,779 11/3/2004 (7)
---
$(7)
---
</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.
135
THE HARTFORD MIDCAP VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 98.4%
BASIC MATERIALS -- 11.5%
231 Cooper Tire & Rubber Co. ......................... $ 4,494
198 Engelhard Corp. .................................. 5,592
46 Grupo IMSA S.A. de C.V. ADR....................... 998
128 Inco Ltd. B....................................... 4,517
135 International Steel Group, Inc. B................. 4,971
129 Michelin (C.G.D.E.) Class B I..................... 7,019
211 Mosaic Co. B...................................... 3,175
381 Pactiv Corp. B.................................... 9,014
89 Sappi Ltd. ADR.................................... 1,282
343 Smurfit-Stone Container Corp. B................... 5,962
--------
47,024
--------
CAPITAL GOODS -- 8.7%
220 Axcelis Technologies, Inc. B...................... 1,895
795 Bombardier, Inc. Class B.......................... 1,825
57 FMC Technologies, Inc. B.......................... 1,717
163 IHC Caland N.V. IH................................ 9,356
181 Pall Corp. ....................................... 4,683
303 Teradyne, Inc. B.................................. 5,024
211 Yankee Candle Co., Inc. B......................... 5,831
165 York International Corp. ......................... 5,238
--------
35,569
--------
CONSUMER CYCLICAL -- 12.1%
72 BorgWarner, Inc. ................................. 3,339
210 CBRL Group, Inc. ................................. 7,607
412 Foot Locker, Inc. ................................ 10,048
299 Office Depot, Inc. B.............................. 4,834
1,333 Rinker Group Ltd. I............................... 8,659
194 Ross Stores, Inc. ................................ 5,097
15 Toll Brothers, Inc. B............................. 709
125 United Stationers, Inc. B......................... 5,563
70 V.F. Corp. ....................................... 3,747
--------
49,603
--------
CONSUMER STAPLES -- 4.4%
234 Bunge Ltd. ....................................... 11,145
91 Dean Foods Co. B.................................. 2,701
184 Smithfield Foods, Inc. B.......................... 4,451
--------
18,297
--------
ENERGY -- 5.1%
87 EOG Resources, Inc. .............................. 5,811
208 Talisman Energy, Inc. ............................ 5,597
138 UGI Corp. ........................................ 5,331
125 XTO Energy, Inc. ................................. 4,179
--------
20,918
--------
FINANCE AND INSURANCE -- 21.8%
40 Affiliated Managers Group, Inc. BH................ 2,239
148 AMBAC Financial Group, Inc. ...................... 11,561
294 Apollo Investment Corp. .......................... 3,993
72 CB Richard Ellis Group, Inc. Class A B............ 1,857
231 CIT Group, Inc. .................................. 9,332
40 City National Corp. .............................. 2,783
47 Comerica, Inc. ................................... 2,879
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
FINANCE AND INSURANCE -- (CONTINUED)
49 Endurance Specialty Holdings Ltd. ................ $ 1,638
47 Federated Investors, Inc. Class B................. 1,360
239 Hibernia Corp. Class A............................ 6,937
84 IndyMac Bancorp, Inc. ............................ 2,719
74 Platinum Underwriters Holdings Ltd. .............. 2,156
14 ProLogis.......................................... 542
120 Radian Group, Inc. ............................... 5,737
236 Reinsurance Group of America...................... 10,183
125 RenaissanceRe Holdings Ltd. ADR................... 5,852
173 Rent-A-Center, Inc. B............................. 4,150
137 UnionBanCal Corp. ................................ 8,335
192 United Rentals, Inc. B............................ 2,973
49 Webster Financial Corp. .......................... 2,352
--------
89,578
--------
HEALTH CARE -- 4.8%
119 Barr Pharmaceuticals, Inc. B...................... 4,495
291 Biovail Corp. B................................... 5,442
81 Coventry Health Care, Inc. B...................... 3,301
203 Endo Pharmaceuticals Holdings, Inc. B............. 4,430
80 Health Net, Inc. B................................ 1,943
--------
19,611
--------
SERVICES -- 6.6%
443 Bally Total Fitness Holding Corp. BH.............. 1,770
431 BearingPoint, Inc. B.............................. 3,752
144 Donnelley (R.R.) & Sons Co. ...................... 4,535
151 Republic Services, Inc. .......................... 4,648
319 Unisys Corp. B.................................... 3,383
1,200 UnitedGlobalCom, Inc. Class A B................... 8,975
--------
27,063
--------
TECHNOLOGY -- 14.2%
316 Arrow Electronics, Inc. B......................... 7,576
112 Cinram International, Inc. ....................... 2,144
133 Citizens Communications Co. B..................... 1,778
93 Dentsply International, Inc. ..................... 4,832
633 Fairchild Semiconductor International, Inc. B..... 9,092
157 Freescale Semiconductor, Inc. B................... 2,441
615 GrafTech International Ltd. B..................... 5,690
326 Lam Research Corp. B.............................. 8,473
111 QLogic Corp. B.................................... 3,610
160 Varian Semiconductor Equipment Associates, Inc.
B............................................... 5,524
552 Vishay Intertechnology, Inc. B.................... 7,132
--------
58,292
--------
TRANSPORTATION -- 5.5%
169 CNF, Inc. ........................................ 7,403
64 Continental Airlines, Inc. Class B BH............. 595
112 CSX Corp. ........................................ 4,084
76 ExpressJet Holdings, Inc. B....................... 842
157 United Defense Industries, Inc. B................. 6,306
99 USF Corp. ........................................ 3,541
--------
22,771
--------
</Table>
The accompanying notes are an integral part of these financial statements.
136
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 98.4% -- (CONTINUED)
UTILITIES -- 3.7%
96 Edison International.............................. $ 2,928
179 PPL Corp. ........................................ 9,324
90 Wisconsin Energy Corp. ........................... 2,951
--------
15,203
--------
Total common stock
(cost $363,623)................................. $403,929
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.7%
FINANCE -- 1.0%
$ 315 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 315
814 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 814
87 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 87
651 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 651
597 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 597
106 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ 106
1,628 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,628
--------
4,198
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 0.7%
$2,701 BNY Institutional Cash Reserve Fund............... $ 2,701
--------
Total short-term investments
(cost $6,899)................................... $ 6,899
--------
Total investments in securities
(cost $370,522) O............................... $410,828
========
</Table>
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 11.41% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $371,102 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 57,728
Unrealized depreciation........................ (18,002)
--------
Net unrealized appreciation.................... $ 39,726
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $25,034, which represents 6.10% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- --------- --------------
Canadian Dollar Buy $35 $35 11/3/2004 $@@
==
</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.
137
THE HARTFORD MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MATURITY MARKET
AMOUNT YIELD DATE VALUE U
- --------- ----- ---------- --------
CAPITAL GOODS -- 1.0%
$2,810 United Technologies Corp. ........................ 1.22% 11/15/2004 $ 2,816
--------
CONSUMER CYCLICAL -- 4.3%
7,000 Caterpillar Financial Services Corp. X............ 1.78% 06/01/2005 7,007
5,500 Toyota Motor Credit Corp. X....................... 1.88% 06/22/2005 5,499
--------
Total consumer cyclical........................... 12,506
--------
CONSUMER STAPLES -- 13.6%
6,000 American General Finance Corp. ................... 1.97% 12/10/2004 5,987
8,000 Northern Rock plc MX.............................. 2.01% 01/13/2005 8,000
5,309 Old Line Funding LLC M............................ 1.75% 11/02/2004 5,309
7,000 Preferred Receivables Funding Corp. .............. 1.75% 11/03/2004 6,999
6,000 Sara Lee Corp. ................................... 1.96% 12/16/2004 5,986
7,000 Stadshypotek Delaware, Inc. ...................... 1.85% 11/24/2004 6,992
--------
Total consumer staples............................ 39,273
--------
FINANCE -- 78.7%
5,000 Alliance & Leicester plc.......................... 2.12% 02/14/2005 $ 4,969
3,000 Alliance & Leicester plc.......................... 1.69% 12/15/2004 2,993
1,500 American Express Credit Corp. X................... 1.81% 12/16/2004 1,500
7,000 American Express Credit Corp. X................... 1.88% 12/27/2004 7,002
2,000 American General Finance Corp. X.................. 1.95% 03/24/2005 2,002
7,000 American Honda Finance Corp. MX................... 1.63% 08/04/2005 7,000
5,500 Amsterdam Funding Corp. .......................... 1.85% 11/17/2004 5,496
3,500 Amsterdam Funding Corp. .......................... 1.97% 12/02/2004 3,494
8,076 ANZ (Delaware), Inc. ............................. 1.65% 11/02/2004 8,076
7,000 Bank of America Corp. X........................... 1.70% 08/26/2005 7,017
7,200 Bear Stearns Co., Inc. X.......................... 1.88% 06/20/2005 7,209
8,500 Bradford & Bingley
plc MX.......................................... 2.01% 01/07/2005 8,500
5,700 Britannia Building Society........................ 1.95% 12/06/2004 5,689
4,000 CAFCO............................................. 1.97% 12/10/2004 3,992
7,000 Citigroup Global Markets X........................ 2.04% 07/20/2005 7,005
4,300 FHLB.............................................. 1.42% 04/01/2005 4,300
4,400 FHLB.............................................. 1.56% 05/04/2005 4,400
1,500 GE Capital Corp. ................................. 1.90% 12/17/2004 1,496
7,000 General Electric Co. X............................ 2.05% 10/24/2005 7,006
7,000 Goldman Sachs MX.................................. 2.08% 01/29/2005 7,000
7,000 HBOS Treasury Services plc........................ 1.69% 11/16/2004 6,995
7,300 J.P. Morgan Chase & Co. X......................... 1.66% 02/24/2005 7,307
3,900 Lehman Brothers Holdings, Inc. ................... 1.23% 01/15/2005 3,951
</Table>
<Table>
<Caption>
PRINCIPAL MATURITY MARKET
AMOUNT YIELD DATE VALUE U
- --------- ----- ---------- --------
FINANCE -- (CONTINUED)
$3,500 Lehman Brothers, Inc. X........................... 1.83% 05/16/2005 $ 3,500
3,400 Merrill Lynch & Co., Inc. X....................... 1.88% 09/21/2005 3,410
3,000 Merrill Lynch & Co., Inc. X....................... 2.02% 07/11/2005 3,004
7,300 Morgan Stanley X.................................. 2.04% 01/24/2005 7,305
7,000 Nationwide Building Society, Inc. MX.............. 2.06% 07/22/2005 7,004
7,000 Nordea North America.............................. 1.78% 11/12/2004 6,996
7,200 Quebec (Province of) Canada....................... 1.39% 01/11/2005 7,181
7,000 Sheffield Receivables MX.......................... 1.86% 01/25/2005 7,002
7,000 SLM Corp. X....................................... 1.85% 08/15/2005 7,006
6,800 State Street...................................... 1.73% 11/12/2004 6,800
7,000 Swedbank Foreningssparbanken...................... 1.75% 11/12/2004 6,996
7,000 Toronto-Dominion Holdings (USA), Inc. ............ 1.57% 11/09/2004 6,998
3,000 Toyota Motor Credit Corp. X....................... 1.88% 12/23/2004 3,000
7,500 US Bank N.A. X.................................... 1.88% 03/30/2005 7,499
6,000 Washington Mutual Bank N.A. X..................... 1.88% 03/15/2005 6,000
7,000 Wells Fargo & Company Co. X....................... 1.86% 06/17/2005 7,001
5,411 Yorktown Capital.................................. 1.89% 11/22/2004 5,405
--------
Total finance..................................... $226,506
--------
TECHNOLOGY -- 2.4%
7,000 Bellsouth Corp. .................................. 1.87% 11/17/2004 $ 6,994
--------
Total investments in securities
(cost $288,095) O............................... $288,095
========
</Table>
<Table>
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 10.67% of total net asset at October 31, 2004.
All the Securities are rated A1.
O Also represents cost for federal tax purposes.
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
M 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, 2004, was $49,815, which represents
17.32% of total net assets.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
</Table>
The accompanying notes are an integral part of this financial statement.
138
THE HARTFORD MONEY MARKET FUND
DIVERSIFICATION AND EXPENSE TABLES
OCTOBER 31, 2004
(UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFICATION BY INDUSTRY
as of October 31, 2004
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ------------------------------------------------------------------
Capital Goods 1.0%
- ------------------------------------------------------------------
Consumer Cyclical 4.3
- ------------------------------------------------------------------
Consumer Staples 13.6
- ------------------------------------------------------------------
Finance 78.7
- ------------------------------------------------------------------
Technology 2.4
- ------------------------------------------------------------------
TOTAL 100.0%
- ------------------------------------------------------------------
</Table>
YOUR FUND'S EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments and contingent
deferred sales charges (CDSC) (2) ongoing costs including management fees;
distribution fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the period of April 30, 2004 through October 31, 2004.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) and CDSC. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would be higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING PERIOD **
VALUE VALUE APRIL 30, 2004
APRIL 30, OCTOBER 31, THROUGH
2004 2004 OCTOBER 31, 2004
- --------------------------------------------------------------------
CLASS A
Actual $1,000 $1,001.00 $5.03
Hypothetical @ $1,000 $1,020.11 $5.08
- --------------------------------------------------------------------
CLASS B
Actual $1,000 $1,000.05 $6.84
Hypothetical @ $1,000 $1,018.30 $6.90
- --------------------------------------------------------------------
CLASS C
Actual $1,000 $1,000.05 $6.84
Hypothetical @ $1,000 $1,018.30 $6.90
- --------------------------------------------------------------------
CLASS Y
Actual $1,000 $1,002.10 $2.77
Hypothetical @ $1,000 $1,022.37 $2.80
- --------------------------------------------------------------------
</Table>
@ (5% return before expenses)
** Expenses are equal to the Fund's annualized expense ratios of 1.00%, 1.36%,
1.36% and 0.55% for classes A, B, C and Y, respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period).
Due to a change in the allocation methodology for transfer agent fees, the 6
month annualized expense ratio may differ from the annual expense ratio as shown
in the Notes to Financial Statements (Financial Highlights).
The accompanying notes are an integral part of this financial statement.
139
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 37.2%
FINANCE -- 37.2%
$ 800 American Express Credit Account Master Trust,
2.37%, 2-15-2012 MX............................. $ 800
500 AmeriCredit Automobile Receivables Trust,
3.61%, 5-6-2011................................. 504
400 AmeriCredit Automobile Receivables Trust,
5.07%, 7-6-2010................................. 406
43 AmeriCredit Automobile Receivables Trust,
5.81%, 5-6-2006................................. 44
214 AQ Finance CEB Trust,
6.93%, 8-25-2033 MX............................. 212
1,000 Argent NIM Trust
4.212%, 11-25-2034 M............................ 1,000
165 Asset Backed Funding Corp. NIM Trust,
4.55%, 12-26-2033 M............................. 164
2,500 Banc of America Commercial Mortgage, Inc.,
3.46%, 7-10-2042................................ 2,509
320 Bank One Issuance Trust,
4.54%, 9-15-2010................................ 327
1,000 BMW Vehicle Owner Trust,
3.52%, 10-25-2010............................... 1,004
750 Capital Auto Receivables Asset Trust,
2.84%, 9-15-2010................................ 740
2,000 Capital One Master Trust,
6.31%, 6-15-2011................................ 2,185
400 Capital One Master Trust,
7.90%, 10-15-2010 M............................. 442
146 Chase Commercial Mortgage Securities Corp.,
6.90%, 11-19-2028............................... 152
300 Chase Funding Mortgage Loan,
2.34%, 4-25-2024................................ 298
500 Chase Manhattan Auto Owner Trust,
2.78%, 6-15-2010................................ 498
500 Citibank Credit Card Issuance Trust,
2.70%, 2-9-2009 X............................... 506
2,000 Citibank Credit Card Issuance Trust,
4.95%, 2-9-2009................................. 2,085
750 Citibank Credit Card Issuance Trust,
7.45%, 9-15-2007................................ 780
669 CNH Equipment Trust,
3.35%, 2-15-2011................................ 671
3,924 Commercial Mortgage Pass-Through Certificates,
3.59%, 3-10-2039 MW............................. 175
200 CS First Boston Mortgage Securities Corp.,
3.29%, 11-18-2012 MX............................ 201
14,906 CS First Boston Mortgage Securities Corp.,
4.165%, 7-15-2036 MW............................ 489
1,500 Daimler Chrysler Auto Trust,
2.85%, 8-8-2010................................. 1,465
300 DLJ Mortgage Acceptance Corp.,
7.50%, 12-17-2027 M............................. 305
300 Equity One ABS, Inc.,
4.34%, 7-25-2034 X.............................. 302
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 400 Ford Credit Auto Owner Trust,
4.29%, 11-15-2007............................... $ 405
974 Freddie Mac,
6.00%, 6-15-2031................................ 999
10,248 GE Capital Commercial Mortgage Corp.,
3.76%, 3-10-2040 MW............................. 314
867 GMAC Commercial Mortgage Securities, Inc.,
3.12%, 3-10-2038................................ 860
490 GMAC Commercial Mortgage Securities, Inc.,
6.57%, 4-15-2029................................ 527
22,200 Goldman Sachs Mortgage Securities Corp. II,
4.38%, 8-10-2038 W.............................. 390
500 Granite Mortgages plc,
3.53%, 1-20-2043 X.............................. 511
500 Green Tree Financial Corp.,
6.27%, 6-1-2030................................. 515
33 Green Tree Financial Corp.,
7.30%, 1-15-2026................................ 35
174 Home Equity Asset Trust,
5.25%, 4-27-2034 M.............................. 174
750 Hyundai Auto Receivables Trust,
4.10%, 8-15-2011................................ 750
335 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
2.92%, 1-12-2038................................ 333
6,510 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
5.50%, 1-15-2038 MW............................. 303
2,000 LB-UBS Commercial Mortgage Trust
3.625%, 10-15-2029 I............................ 2,009
72 LB-UBS Commercial Mortgage Trust,
3.17%, 12-15-2026............................... 72
372 LB-UBS Commercial Mortgage Trust,
3.34%, 9-15-2027................................ 370
2,762 LB-UBS Commercial Mortgage Trust,
3.69%, 12-15-2036 MW............................ 141
2,200 MBNA Credit Card Master Note Trust,
4.95%, 6-15-2009................................ 2,298
1,478 Merrill Lynch Mortgage Trust,
3.46%, 8-12-2039................................ 1,480
20,853 Merrill Lynch Mortgage Trust,
3.81%, 8-12-2039 MW............................. 983
335 Morgan Stanley Capital I,
2.80%, 12-15-2041............................... 333
500 Morgan Stanley Capital I,
3.96%, 6-15-2040................................ 505
1,893 Morgan Stanley Capital I,
4.03%, 6-15-2038................................ 1,915
49 Morgan Stanley Dean Witter Capital I,
4.09%, 12-15-2035............................... 49
70 Morgan Stanley Dean Witter Capital I,
4.59%, 4-15-2034................................ 71
421 Morgan Stanley Dean Witter Capital I,
5.38%, 1-15-2039................................ 445
241 Nationslink Funding Corp.,
6.00%, 8-20-2030................................ 247
</Table>
The accompanying notes are an integral part of this financial statement.
140
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 369 Navistar Financial Corp. Owner Trust,
3.08%, 11-15-2009............................... $ 365
750 Providian Gateway Master Trust,
3.95%, 9-15-2011 M.............................. 753
1,000 Residential Asset Mortgage Products, Inc.,
3.675%, 8-25-2026............................... 1,005
120 Residential Asset Mortgage Products, Inc.,
6.14%, 6-25-2032................................ 120
160 Residential Asset Securities Corp.,
7.51%, 10-25-2030............................... 165
500 Saxon Asset Securities Trust,
2.92%, 6-25-2033................................ 500
111 Soundview Home Equity Loan Trust, Inc.,
8.64%, 5-25-2030................................ 114
1,000 Structured Asset Investment Loan Trust,
3.683%, 11-25-2033 X............................ 1,010
29 Vanderbilt Acquisition Loan Trust,
3.28%, 1-7-2013................................. 29
535 Wachovia Bank Commercial Mortgage Trust,
3.48%, 8-15-2041................................ 536
6,827 Wachovia Bank Commercial Mortgage Trust,
3.65%, 2-15-2041 MW............................. 305
87 Wachovia Bank Commercial Mortgage Trust,
4.54%, 4-15-2034................................ 88
478 WFS Financial Owner Trust,
2.73%, 5-20-2011................................ 476
203 WFS Financial Owner Trust,
3.05%, 12-20-2010............................... 203
500 WFS Financial Owner Trust,
3.07%, 11-21-2011............................... 500
414 Whole Auto Loan Trust,
2.24%, 3-15-2010................................ 412
1,000 Whole Auto Loan Trust,
3.37%, 3-15-2011 I ............................ 1,000
400 World Financial Network Credit Card Master,
4.82%, 8-15-2011 X.............................. 423
500 World Omni Auto Receivables Trust,
3.62%, 7-12-2011................................ 502
--------
43,804
--------
Total asset backed and
commercial mortgage securities
(cost $43,870).................................. $ 43,804
========
CORPORATE BONDS: INVESTMENT GRADE -- 37.0%
BASIC MATERIALS -- 2.7%
300 BOC Group, Inc.,
7.45%, 6-15-2006 M.............................. $ 319
250 Carlisle Companies, Inc.,
6.70%, 5-15-2008................................ 273
200 Dow Chemical Co.,
7.00%, 8-15-2005................................ 207
125 ICI North America,
8.875%, 11-15-2006.............................. 138
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
$ 160 International Flavors & Fragrances, Inc.,
6.45%, 5-15-2006................................ $ 168
200 International Paper Co.,
3.80%, 4-1-2008................................. 200
120 Lafarge North America, Inc.,
6.375%, 7-15-2005............................... 123
100 Pactiv Corp.,
8.00%, 4-15-2007................................ 109
50 Phelps Dodge Corp.,
6.375%, 11-1-2004............................... 50
380 Placer Dome, Inc.,
7.125%, 6-15-2007............................... 415
370 Potash Corp. of Saskatchewan, Inc.,
7.125%, 6-15-2007............................... 405
300 Westvaco Corp.,
8.40%, 6-1-2007................................. 336
430 Worthington Industries, Inc.,
7.125%, 5-15-2006............................... 452
--------
3,195
--------
CAPITAL GOODS -- 1.4%
360 Black & Decker Corp.,
7.00%, 2-1-2006................................. 378
450 Ingersoll-Rand Co.,
6.25%, 5-15-2006................................ 472
350 McDonnell Douglas Corp.,
6.875%, 11-1-2006............................... 375
100 Rockwell International Corp.,
6.625%, 6-1-2005................................ 102
300 Textron, Inc.,
6.625%, 11-15-2007.............................. 330
--------
1,657
--------
CONSUMER CYCLICAL -- 5.1%
250 American Stores Co.,
7.40%, 5-15-2005................................ 255
500 Centex Corp.,
4.75%, 1-15-2008................................ 515
100 DaimlerChrysler N.A. Holding Corp.,
4.05%, 6-4-2008................................. 101
500 DaimlerChrysler N.A. Holding Corp.,
7.75%, 6-15-2005................................ 516
700 Darden Restaurants, Inc.,
5.75%, 3-15-2007................................ 739
200 Jones Apparel Group, Inc.,
7.875%, 6-15-2006............................... 215
460 Kroger Co.,
7.80%, 8-15-2007................................ 512
150 Kroger Co.,
8.15%, 7-15-2006................................ 162
470 Masco Corp.,
6.75%, 3-15-2006................................ 496
200 May Department Stores Co.,
6.875%, 11-1-2005............................... 208
385 Mohawk Industries, Inc.,
6.50%, 4-15-2007................................ 412
150 Newell Rubbermaid, Inc.,
6.00%, 3-15-2007................................ 159
</Table>
The accompanying notes are an integral part of this financial statement.
141
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
CONSUMER CYCLICAL -- (CONTINUED)
$ 250 Nine West Group, Inc.,
8.375%, 8-15-2005............................... $ 259
300 PHH Corp.,
6.00%, 3-1-2008................................. 321
300 Philips Electronics N.V.,
8.375%, 9-15-2006............................... 328
320 Pulte Homes, Inc.,
7.30%, 10-24-2005............................... 333
350 Rubbermaid Inc.,
6.60%, 11-15-2006............................... 374
100 Safeway, Inc.,
3.80%, 8-15-2005................................ 101
--------
6,006
--------
CONSUMER STAPLES -- 1.7%
300 Cadbury Schweppes Finance plc,
5.00%, 6-26-2007................................ 311
350 ConAgra Foods, Inc.,
7.50%, 9-15-2005................................ 363
90 ConAgra Foods, Inc.,
9.875%, 11-15-2005.............................. 96
300 Dial Corp.,
7.00%, 8-15-2006................................ 321
400 General Mills, Inc.,
2.625%, 10-24-2006.............................. 396
350 Kellogg Co.,
6.00%, 4-1-2006................................. 366
105 Weyerhaeuser Co.,
5.50%, 3-15-2005................................ 106
--------
1,959
--------
ENERGY -- 2.0%
270 Consolidated Natural Gas Co.,
5.375%, 11-1-2006............................... 282
350 Louis Dreyfus Natural Gas Corp.,
6.875%, 12-1-2007............................... 382
150 Ocean Energy, Inc.,
7.625%, 7-1-2005................................ 155
350 Repsol International Finance B.V.,
7.45%, 7-15-2005................................ 362
50 Ultramar Diamond Shamrock Corp.,
8.00%, 3-15-2005................................ 51
300 Union Oil Co. of California,
9.125%, 2-15-2006............................... 323
300 Union Pacific Resources Group, Inc.,
6.50%, 5-15-2005................................ 306
451 Valero Energy Corp.,
6.125%, 4-15-2007............................... 481
--------
2,342
--------
FINANCE 10.3%
750 Ace Ina Holdings, Inc.,
8.30%, 8-15-2006................................ 812
451 Aetna, Inc.,
7.375%, 3-1-2006................................ 475
130 American General Finance Corp.,
5.875%, 12-15-2005.............................. 135
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 100 American General Finance Corp.,
5.91%, 6-12-2006................................ $ 105
400 Avalon Properties, Inc.,
6.875%, 12-15-2007.............................. 438
100 AXA Financial, Inc.,
9.00%, 12-15-2004............................... 101
100 Banca Commerciale Italiana,
8.25%, 7-15-2007................................ 112
150 Banesto Finance Ltd.,
7.50%, 3-25-2007................................ 164
200 BankAmerica Corp.,
6.75%, 9-15-2005................................ 207
250 BankBoston Corp.,
6.625%, 12-1-2005............................... 260
389 Bankers Trust Corp.,
7.125%, 3-15-2006............................... 411
290 BBV International Finance,
6.875%, 7-1-2005................................ 298
100 Bear Stearns & Co., Inc.,
7.625%, 2-1-2005................................ 101
100 Capital One Bank,
6.875%, 2-1-2006................................ 105
50 CIGNA Corp.,
8.25%, 1-1-2007................................. 55
150 CIT Group, Inc.,
7.625%, 8-16-2005............................... 156
250 Countrywide Funding Corp.,
6.875%, 9-15-2005............................... 258
250 Credit Suisse First Boston USA, Inc.,
5.875%, 8-1-2006................................ 263
220 Credit Suisse First Boston USA, Inc.,
6.50%, 5-1-2008 M............................... 240
300 Equifax, Inc.,
4.95%, 11-1-2007................................ 314
200 Equitable Life Assurance Society,
6.95%, 12-1-2005 M.............................. 209
100 ERAC USA Finance Co.,
6.625%, 2-15-2005 M............................. 101
225 ERAC USA Finance Co.,
8.25%, 5-1-2005 M............................... 231
200 Evans Withycombe Residential, Inc.,
7.625%, 4-15-2007............................... 219
700 Ford Motor Credit Co.,
6.875%, 2-1-2006................................ 728
100 Gables Realty L.P.,
6.80%, 3-15-2005................................ 101
100 General Motors Acceptance Corp.,
4.50%, 7-15-2006................................ 101
150 General Motors Acceptance Corp.,
6.125%, 2-1-2007................................ 156
600 General Motors Acceptance Corp.,
7.50%, 7-15-2005................................ 620
100 Goldman Sachs Group, Inc.,
7.50%, 1-28-2005................................ 101
150 Household Finance Corp.,
5.75%, 1-30-2007................................ 159
</Table>
The accompanying notes are an integral part of this financial statement.
142
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 250 Household Finance Corp.,
7.65%, 5-15-2007................................ $ 276
200 International Lease Finance Corp.,
2.95%, 5-23-2006................................ 200
100 International Lease Finance Corp.,
5.95%, 6-6-2005................................. 102
150 J.P. Morgan Chase & Co.,
5.625%, 8-15-2006............................... 157
450 J.P. Morgan Chase & Co.,
7.25%, 6-1-2007................................. 494
100 Key Bank N.A., Inc.,
7.125%, 8-15-2006............................... 107
150 Lehman Brothers Holdings, Inc.,
8.75%, 3-15-2005................................ 153
120 Lincoln National Corp.,
5.25%, 6-15-2007................................ 126
393 MBNA America Bank N.A.,
6.50%, 6-20-2006................................ 415
148 MBNA America Bank N.A.,
6.75%, 3-15-2008 M.............................. 162
150 Merrill Lynch & Co., Inc.,
8.00%, 6-1-2007................................. 167
300 Merry Land & Investment, Inc.,
7.25%, 6-15-2005................................ 308
150 Morgan Stanley,
7.75%, 6-15-2005................................ 155
250 PNC Funding Corp.,
5.75%, 8-1-2006................................. 262
300 Prudential Insurance Co. of America,
6.375%, 7-23-2006 M............................. 319
350 Simon Property Group L.P.,
7.125%, 9-20-2007............................... 384
235 St. Paul Companies, Inc.,
7.875%, 4-15-2005............................... 240
300 Wellpoint Health Networks, Inc.,
6.375%, 6-15-2006............................... 315
--------
12,078
--------
HEALTH CARE -- 0.4%
200 Boston Scientific Corp.,
6.625%, 3-15-2005............................... 203
300 Quest Diagnostics, Inc.,
6.75%, 7-12-2006................................ 318
--------
521
--------
SERVICES -- 4.9%
370 ARAMARK Services, Inc.,
8.15%, 5-1-2005................................. 379
550 Belo Corp.,
7.125%, 6-1-2007................................ 597
389 Comcast Cable Communications, Inc.,
6.375%, 1-30-2006............................... 406
500 Computer Sciences Corp.,
6.75%, 6-15-2006................................ 530
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
SERVICES -- (CONTINUED)
$ 150 Cox Enterprises, Inc.,
4.375%, 5-1-2008 M.............................. $ 149
100 Cox Enterprises, Inc.,
8.00%, 2-15-2007 M.............................. 108
300 Fiserv, Inc.,
3.00%, 6-27-2008................................ 293
450 Harrah's Operating Co., Inc.,
7.125%, 6-1-2007................................ 489
355 Hyatt Equities LLC,
6.875%, 6-15-2007 M............................. 379
250 Marriott International, Inc.,
6.875%, 11-15-2005.............................. 260
200 Marriott International, Inc.,
7.00%, 1-15-2008................................ 219
300 News America, Inc.,
6.625%, 1-9-2008................................ 328
200 Scholastic Corp.,
5.75%, 1-15-2007................................ 210
200 TCI Communications, Inc.,
6.875%, 2-15-2006............................... 209
395 USA Networks, Inc.,
6.75%, 11-15-2005............................... 410
300 Walt Disney Co.,
7.30%, 2-8-2005................................. 304
435 WMX Technologies, Inc.,
7.00%, 10-15-2006............................... 467
--------
5,737
--------
TECHNOLOGY -- 5.0%
100 AT&T Wireless Services, Inc.,
6.875%, 4-18-2005............................... 102
500 AT&T Wireless Services, Inc.,
7.50%, 5-1-2007................................. 551
550 British Telecommunications plc,
7.875%, 12-15-2005.............................. 581
450 Cingular Wireless LLC,
5.625%, 12-15-2006.............................. 473
290 Cox Communications, Inc.,
7.75%, 8-15-2006................................ 313
560 Deutsche Telekom International Finance B.V.,
8.25%, 6-15-2005................................ 579
550 France Telecom S.A.,
7.20%, 3-1-2006................................. 585
450 Hewlett-Packard Co.,
5.75%, 12-15-2006............................... 474
275 Maytag Corp.,
6.875%, 3-31-2006............................... 287
250 Puget Sound Energy, Inc.,
3.36%, 6-1-2008................................. 248
600 Sprint Capital Corp.,
7.90%, 3-15-2005................................ 612
375 Time Warner Companies, Inc.,
8.11%, 8-15-2006................................ 408
</Table>
The accompanying notes are an integral part of this financial statement.
143
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
$ 600 Verizon Wireless Capital LLC,
5.375%, 12-15-2006.............................. $ 629
75 Vodafone Group plc,
7.625%, 2-15-2005............................... 76
--------
5,918
--------
TRANSPORTATION -- 1.0%
325 CSX Corp.,
9.00%, 8-15-2006................................ 358
280 Norfolk Southern Corp.,
7.40%, 9-15-2006................................ 302
350 TTX Co.,
3.875%, 3-1-2008 M.............................. 349
200 Union Pacific Corp.,
7.60%, 5-1-2005................................. 205
--------
1,214
--------
UTILITIES -- 2.5%
340 Appalachian Power Co.,
4.80%, 6-15-2005................................ 345
145 Appalachian Power Co.,
6.80%, 3-1-2006................................. 152
557 Commonwealth Edison Co.,
6.40%, 10-15-2005............................... 576
325 Consumers Energy Co.,
6.25%, 9-15-2006................................ 343
250 FPL Group Capital, Inc.,
3.25%, 4-11-2006................................ 252
250 Georgia Power Co.,
6.20%, 2-1-2006................................. 261
140 Niagara Mohawk Power Corp.,
9.75%, 11-1-2005................................ 150
250 Northeast Utilities,
3.30%, 6-1-2008................................. 245
300 Southwestern Public Service Co.,
5.125%, 11-1-2006............................... 311
270 Texas Eastern Transmission L.P.,
5.25%, 7-15-2007................................ 283
--------
2,918
--------
Total corporate bonds:
investment grade
(cost $43,312).................................. $ 43,545
--------
U.S. GOVERNMENT SECURITIES -- 15.6%
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.3%
400 3.00% 2008........................................ $ 396
--------
U.S. TREASURY SECURITIES -- 15.3%
18,000 2.75% 2007........................................ 17,990
--------
Total U.S. government securities
(cost $18,373).................................. $ 18,386
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
U.S. GOVERNMENT AGENCIES -- 6.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.3%
$1,150 6.00% 2031 -- 2032................................ $ 1,179
319 6.50% 2017........................................ 338
--------
1,517
--------
REMIC-PAC'S -- 0.8%
1,000 5.50% 2029........................................ 1,017
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.8%
613 6.00% 2032 -- 2033................................ 637
243 6.50% 2032........................................ 256
--------
893
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 1.2%
1,194 6.00% 2033........................................ 1,246
171 7.00% 2032........................................ 183
--------
1,429
--------
REMIC-PAC'S -- 2.5%
2,878 6.00% 2030 -- 2032................................ 2,963
--------
Total U.S. government agencies
(cost $7,874)................................... $ 7,819
--------
Total long term investments
(cost $113,429)................................. $113,554
--------
SHORT-TERM INVESTMENTS -- 4.7%
FINANCE -- 4.7%
1,103 BNP Paribas Repurchase Agreement,
1.77%, 11-1-2004................................ $ 1,103
1,103 RBS Greenwich Repurchase Agreement,
1.77%, 11-1-2004................................ 1,103
1,163 State Street Bank Repurchase Agreement,
1.75%, 11-1-2004................................ 1,163
2,206 UBS Warburg LLC Repurchase Agreement,
1.77%, 11-1-2004................................ 2,206
--------
5,575
--------
Total short-term investments
(cost $5,575)................................... $ 5,575
--------
Total investments in securities
(cost $119,004) O............................... $119,129
========
</Table>
The accompanying notes are an integral part of this financial statement.
144
- --------------------------------------------------------------------------------
<Table>
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 3.92% of total net asset at October 31, 2004.
The average life of certain investment securities may differ signifi-
cantly from the stated maturity date.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $119,004 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation........................... $ 437
Unrealized depreciation........................... (312)
-----
Net unrealized appreciation....................... $ 125
=====
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
M 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, 2004, was $9,327, which represents
7.92% of total net assets.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
W The interest rates disclosed for interest only strips represent effective
yields based upon estimated future cash flows at October 31, 2004.
I The cost of securities purchased on a when-issued basis at October 31,
2004 was $3,010.
@@ 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.
145
THE HARTFORD SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 97.5%
BASIC MATERIALS -- 5.9%
226 Alkermes, Inc. BH................................. $ 2,794
99 Arch Coal, Inc. .................................. 3,205
56 Carpenter Technology Corp. ....................... 2,650
116 Connetics Corp. BH................................ 3,120
41 Eagle Materials, Inc. ............................ 2,818
135 Hercules, Inc. BH................................. 1,922
--------
16,509
--------
CAPITAL GOODS -- 1.9%
109 Helen of Troy Ltd. BH............................. 2,902
68 Moog, Inc. Class A BH............................. 2,541
--------
5,443
--------
CONSUMER CYCLICAL -- 13.9%
120 A.C. Moore Arts & Crafts, Inc. BH................. 3,085
513 American Tower Corp. Class A B.................... 8,817
149 Insight Enterprises, Inc. B....................... 2,758
6 Kenneth Cole Productions, Inc. Class A............ 161
106 Landry's Restaurants, Inc. ....................... 2,882
95 Men's Wearhouse, Inc. BH.......................... 2,940
135 New York & Co., Inc. B............................ 2,801
117 Quicksilver, Inc. BH.............................. 3,189
92 RARE Hospitality International, Inc. B............ 2,547
83 Sierra Wireless, Inc. BH.......................... 1,415
99 Sotheby's Holdings, Inc. Class A BH............... 1,850
55 Standard-Pacific Corp. ........................... 3,087
95 Washington Group International, Inc. BH........... 3,330
--------
38,862
--------
CONSUMER STAPLES -- 1.1%
116 Peet's Coffee & Tea, Inc. BH...................... 2,962
--------
ENERGY -- 3.3%
64 Cabot Oil & Gas Corp. ............................ 2,723
72 Patina Oil & Gas Corp. ........................... 2,063
54 Western Oil Sands, Inc. Class A B................. 1,732
92 Whiting Petroleum Corp. BH........................ 2,729
--------
9,247
--------
FINANCE AND INSURANCE -- 8.0%
66 Affiliated Managers Group, Inc. HB................ 3,669
87 AMCORE Financial, Inc. ........................... 2,642
142 American Equity Investment Life
Holding Co. .................................... 1,399
53 Arch Capital Group Ltd. B......................... 2,003
114 CB Richard Ellis Group, Inc. Class A B............ 2,940
124 IndyMac Bancorp, Inc. ............................ 3,996
61 Pirelli & C. Real Estate S.p.A. I ............... 2,660
72 Platinum Underwriters Holdings Ltd. .............. 2,108
108 U.S.I. Holdings Corp. BH.......................... 1,050
--------
22,467
--------
HEALTH CARE -- 11.9%
91 Abaxis, Inc. HB................................... 1,171
174 Abgenix, Inc. BH.................................. 1,583
85 Amylin Pharmaceuticals, Inc. HB................... 1,800
109 AtheroGenics, Inc. HB............................. 3,264
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
45 Eyetech Pharmaceuticals, Inc. BH.................. $ 1,889
110 Genesis HealthCare Corp. B........................ 3,384
76 ICOS Corp. BH..................................... 1,718
51 Kose Corp. ....................................... 2,000
113 Medicines Co. BH.................................. 3,018
36 Neurocrine Biosciences, Inc. B.................... 1,694
97 NPS Pharmaceuticals, Inc. BH...................... 1,658
16 Nu Skin Enterprises, Inc. Class A................. 316
32 Respironics, Inc. B............................... 1,651
114 Salix Pharmaceuticals Ltd. BH..................... 1,825
47 Schwarz Pharma AG I .............................. 1,760
149 Symbion, Inc. B................................... 2,323
66 Zoll Medical Corp. BH............................. 2,118
--------
33,172
--------
SERVICES -- 16.1%
120 Acxiom Corp. ..................................... 3,011
4,957 China Power International Development
Ltd. B.......................................... 1,942
61 Corporate Executive Board Co. .................... 3,875
222 DiamondCluster International, Inc. B.............. 2,701
182 Embarcadero Technologies, Inc. BH................. 1,481
193 Exelixis, Inc. BH................................. 1,718
227 Jackson Hewitt Tax Service, Inc. ................. 4,757
478 La Quinta Corp. BH................................ 3,848
505 Lions Gate Entertainment Corp. BH................. 4,954
193 MPS Group, Inc. B................................. 2,028
139 Navigant Consulting, Inc. BH...................... 3,456
64 Red Robin Gourmet Burgers, Inc. BH................ 2,686
268 Sapient Corp. BH.................................. 2,156
635 Service Corp. International B..................... 4,197
600 Sirius Satellite Radio, Inc. BH................... 2,338
--------
45,148
--------
TECHNOLOGY -- 24.7%
397 Aeroflex, Inc. B.................................. 4,401
345 Agile Software Corp. BH........................... 2,944
536 Crown Castle International Corp. BH............... 8,211
145 CSG Systems International, Inc. BH................ 2,442
42 F5 Networks, Inc. BH.............................. 1,666
152 Fairchild Semiconductor International,
Inc. BH......................................... 2,178
152 FuelCell Energy, Inc. BH.......................... 1,877
372 GrafTech International Ltd. BH.................... 3,445
471 MEMC Electronic Materials, Inc. BH................ 4,431
183 Microsemi Corp. B................................. 2,842
79 NAVTEQ Corp. B.................................... 3,184
69 Novatel Wireless, Inc. BH......................... 1,430
183 Openwave Systems, Inc. BH......................... 2,149
248 Opsware, Inc. BH.................................. 1,340
36 Plantronics, Inc. ................................ 1,556
184 Polycom, Inc. BH.................................. 3,809
113 Red Hat, Inc. BH.................................. 1,455
115 Semtech Corp. BH.................................. 2,394
26 Serena Software, Inc. BH.......................... 458
122 Take-Two Interactive Software, Inc. BH............ 4,005
1,843 Techtronic Industries Co. Ltd. I ................ 3,677
189 THQ, Inc. BH...................................... 3,574
</Table>
The accompanying notes are an integral part of these financial statements.
146
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
212 TiVo, Inc. BH..................................... $ 1,427
111 Verint Systems, Inc. BH........................... 4,306
--------
69,201
--------
TRANSPORTATION -- 9.8%
214 AirTran Holdings, Inc. BH......................... 2,489
90 Arkansas Best Corp. B............................. 3,505
210 Fleetwood Enterprises, Inc. BH.................... 2,647
61 Forward Air Corp. BH.............................. 2,495
162 GOL Linhas Aereas Inteligentes S.A.
ADR BH.......................................... 3,351
232 Sirva, Inc. B..................................... 5,580
86 United Defense Industries, Inc. B................. 3,440
80 Yellow Roadway Corp. BH........................... 3,858
--------
27,365
--------
UTILITIES -- 0.9%
277 ERG S.p.A. I .................................... 2,507
--------
Total common stock
(cost $243,114)................................. $272,883
--------
SHORT-TERM INVESTMENTS -- 24.8%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 24.8%
69,328 Navigator Prime Portfolio......................... $ 69,328
--------
Total short-term investments
(cost $69,328).................................. $ 69,328
--------
Total investments in securities
(cost $312,442) O............................... $342,211
========
</Table>
<Table>
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 9.29% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $313,121 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation........................ $ 40,760
Unrealized depreciation........................ (11,670)
--------
Net unrealized appreciation.................... $ 29,090
========
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
I Securities valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $10,604, which represents 3.79% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- --------- --------------
Japanese Yen Sell $78 $78 11/1/2004 $@@
Japanese Yen Sell 62 62 11/2/2004 @@
Japanese Yen Sell 78 78 11/4/2004 @@
--
$@@
==
</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.
147
THE HARTFORD SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 98.4%
BASIC MATERIALS -- 5.3%
127 Alkermes, Inc. B.................................. $ 1,571
37 Carpenter Technology Corp. ....................... 1,737
16 Eagle Materials, Inc. ............................ 1,071
34 Glatfelter........................................ 423
114 Longview Fibre Co. B.............................. 1,756
16 Precision Castparts Corp. ........................ 954
14 Schnitzer Steel Industries, Inc. ................. 398
44 Simpson Manufacturing Co., Inc. .................. 2,841
70 Wausau-Mosinee Paper Corp. ....................... 1,099
--------
11,850
--------
CAPITAL GOODS -- 2.9%
26 Albany International Corp. Class A................ 766
11 Briggs & Stratton Corp. .......................... 768
8 Curtis-Wright Corp. .............................. 424
89 Graco, Inc. ...................................... 3,065
29 Nautilus Group, Inc. H............................ 574
25 York International Corp. ......................... 805
--------
6,402
--------
CONSUMER CYCLICAL -- 11.4%
52 Aeropostale, Inc. B............................... 1,650
38 Bebe Stores, Inc. B............................... 1,174
77 Big 5 Sporting Goods Corp. B...................... 1,955
29 CEC Entertainment, Inc. B......................... 1,107
79 Charlotte Russe Holding, Inc. B................... 1,038
142 Genesco, Inc. B................................... 3,635
44 Hollywood Entertainment Corp. B................... 431
34 IKON Office Solutions, Inc. ...................... 360
52 Kenneth Cole Productions, Inc. Class A............ 1,370
111 Landry's Restaurants, Inc. ....................... 3,009
24 Noble International Ltd. ......................... 448
65 Pacific Sunwear of California, Inc. B............. 1,512
33 PolyMedica Corp. ................................. 1,152
74 Skechers U.S.A., Inc. Class A B................... 815
79 Standard-Pacific Corp. ........................... 4,458
12 Timberland Co. Class A B.......................... 761
35 WCI Communities, Inc. B........................... 826
--------
25,701
--------
ENERGY -- 3.7%
17 Cabot Oil & Gas Corp. ............................ 715
70 Chesapeake Energy Corp. .......................... 1,121
15 Cimarex Energy Co. B.............................. 531
85 Frontier Oil Corp. ............................... 2,099
51 Giant Industries, Inc. B.......................... 1,181
17 Houston Exploration Co. B......................... 1,014
23 Patina Oil & Gas Corp. ........................... 670
12 St. Mary Land & Exploration Co. .................. 485
18 Tesoro Petroleum Corp. B.......................... 542
--------
8,358
--------
FINANCE AND INSURANCE -- 10.1%
24 4Kids Entertainment, Inc. B....................... 439
32 Affiliated Managers Group, Inc. BH................ 1,776
85 American Capital Strategies Ltd. H................ 2,621
28 American Home Mortgage Investment Corp. .......... 760
16 AMERIGROUP Corp. B................................ 954
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
FINANCE AND INSURANCE -- (CONTINUED)
42 Arch Capital Group Ltd. B......................... $ 1,563
31 CB Richard Ellis Group, Inc. Class A B............ 808
38 CharterMac........................................ 869
130 IndyMac Bancorp, Inc. ............................ 4,194
29 Irwin Financial Corp. ............................ 710
9 Novastar Financial, Inc. H........................ 381
30 Platinum Underwriters Holdings Ltd. .............. 883
50 R&G Financial Corp. Class B....................... 1,892
23 Rotech Healthcare, Inc. B......................... 477
185 Scottish Re Group Ltd. ........................... 4,167
8 State Financial Services Corp. Class A............ 224
--------
22,718
--------
HEALTH CARE -- 16.1%
196 Abgenix, Inc. B................................... 1,789
33 Advanced Medical Optics, Inc. B................... 1,294
27 Amedisys, Inc. B.................................. 822
36 Amylin Pharmaceuticals, Inc. B.................... 765
253 Applera Corp. -- Celera Genomics Group B.......... 3,247
280 ARIAD Pharmaceuticals, Inc. B..................... 1,590
25 Bradley Pharmaceuticals, Inc. BH.................. 421
147 Ciphergen Biosystems, Inc. B...................... 541
172 CV Therapeutics, Inc. BH.......................... 2,884
5 Cytokinetics, Inc. B.............................. 45
16 Diagnostic Products Corp. ........................ 724
101 Encysive Pharmaceuticals, Inc. B.................. 884
26 Genesis HealthCare Corp. B........................ 810
113 Incyte Corp. BH................................... 1,178
20 Kensey Nash Corp. BH.............................. 569
42 Kos Pharmaceuticals, Inc. B....................... 1,482
81 Kosan Biosciences, Inc. B......................... 506
54 LifePoint Hospitals, Inc. B....................... 1,735
32 Medical Action Industries, Inc. B................. 529
187 NPS Pharmaceuticals, Inc. BH...................... 3,185
59 Nu Skin Enterprises, Inc. Class A................. 1,133
15 Ocular Sciences, Inc. B........................... 718
84 Perrigo Co. ...................................... 1,527
123 Regeneron Pharmaceutical, Inc. B.................. 891
36 Respironics, Inc. B............................... 1,850
115 Salix Pharmaceuticals Ltd. B...................... 1,839
39 Symbion, Inc. B................................... 602
73 Transkaryotic Therapies, Inc. B................... 1,271
17 Ventana Medical Systems, Inc. B................... 898
13 Vital Signs, Inc. ................................ 450
--------
36,179
--------
SERVICES -- 18.6%
70 Acxiom Corp. ..................................... 1,750
36 Advo, Inc. ....................................... 1,136
110 Allscripts Healthcare Solutions, Inc. BH.......... 1,025
16 Anteon International Corp. B...................... 641
22 Apollo Group, Inc. Class A B...................... 1,435
14 Argosy Gaming Co. B............................... 562
112 Aspect Communications Corp. B..................... 1,062
123 BISYS Group, Inc. B............................... 1,802
25 Black Box Corp. .................................. 962
19 CACI International, Inc. Class A B................ 1,128
61 Cerner Corp. BH................................... 2,745
</Table>
The accompanying notes are an integral part of these financial statements.
148
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- (CONTINUED)
SERVICES -- (CONTINUED)
27 Coinstar, Inc. B.................................. $ 687
38 Convergys Corp. B................................. 500
29 CPI Corp. ........................................ 350
98 Cumulus Media, Inc. Class A B..................... 1,599
478 Digital Generation Systems, Inc. B................ 573
19 Digital River, Inc. B............................. 636
26 eFunds Corp. B.................................... 512
127 Embarcadero Technologies, Inc. B.................. 1,033
70 Epicor Software Corp. B........................... 1,068
153 Exelixis, Inc. B.................................. 1,365
223 Gartner, Inc. Class A B........................... 2,654
99 Gevity HR, Inc. .................................. 1,767
13 Global Imaging Systems, Inc. B.................... 461
68 Imergent, Inc. BH................................. 667
17 ITT Educational Services, Inc. B.................. 627
39 Jackson Hewitt Tax Service, Inc. ................. 811
25 Journal Communications, Inc. Class A.............. 401
31 MAXIMUS, Inc. B................................... 851
20 MTS Systems Corp. ................................ 521
28 PDI, Inc. B....................................... 795
36 Performance Technologies, Inc. B.................. 225
202 Per-Se Technologies, Inc. B....................... 2,945
92 Quest Software, Inc. B............................ 1,352
304 UnitedGlobalCom, Inc. Class A B................... 2,273
111 Watson Wyatt & Co. Holdings, Inc. ................ 2,958
--------
41,879
--------
TECHNOLOGY -- 25.4%
49 ADTRAN, Inc. ..................................... 1,058
15 BEI Technologies, Inc. ........................... 436
104 Catalyst Semiconductor, Inc. B.................... 625
204 Checkpoint Systems, Inc. B........................ 3,482
55 Comtech Telecommunications Corp. B................ 1,508
90 Corillian Corp. B................................. 443
51 Cree, Inc. BH..................................... 1,760
22 CTS Corp. ........................................ 293
42 Cutera, Inc. B.................................... 454
49 Diodes, Inc. B.................................... 1,441
100 Electronics for Imaging, Inc. B................... 1,808
68 ESS Technology, Inc. B............................ 445
120 Evolving Systems, Inc. B.......................... 573
142 Fairchild Semiconductor International, Inc. B..... 2,035
27 FormFactor, Inc. B................................ 633
162 Gemstar-TV Guide International, Inc. B............ 930
97 General Communication, Inc. Class A B............. 885
88 Hutchinson Technology, Inc. B..................... 2,961
96 Hyperion Solutions Corp. B........................ 3,832
62 Insight Communications Co., Inc. Class A B........ 521
128 Intervoice, Inc. B................................ 1,590
67 Intrado, Inc. B................................... 910
28 j2 Global Communications, Inc. B.................. 853
33 Komag, Inc. B..................................... 558
38 Kronos, Inc. B.................................... 1,864
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
TECHNOLOGY -- (CONTINUED)
15 Lowrance Electronics, Inc. ....................... $ 392
79 MEMC Electronic Materials, Inc. B................. 741
58 Methode Electronics, Inc. ........................ 774
12 MicroStrategy, Inc. B............................. 732
79 New Frontier Media, Inc. B........................ 629
459 ON Semiconductor Corp. B.......................... 1,652
122 Pegasystems, Inc. B............................... 907
38 Perot Systems Corp. Class A B..................... 612
37 Plantronics, Inc. ................................ 1,588
70 Polycom, Inc. B................................... 1,441
298 PTEK Holdings, Inc. B............................. 2,963
31 QAD, Inc. ........................................ 238
95 Radyne Comstream, Inc. BH......................... 699
42 Semtech Corp. B................................... 879
110 Serena Software, Inc. B........................... 1,944
16 Siliconix, Inc. B................................. 642
19 Sonic Solutions, Inc. BH.......................... 373
23 Sybase, Inc. B.................................... 371
123 TALK America Holdings, Inc. BH.................... 702
22 Tektronix, Inc. .................................. 655
55 Transaction Systems Architects, Inc. B............ 898
184 Trizetto Group, Inc. B............................ 1,252
124 United Online, Inc. B............................. 1,165
28 Varian Semiconductor Equipment Associates, Inc.
B............................................... 980
86 WebEx Communications, Inc. B...................... 1,896
--------
57,023
--------
TRANSPORTATION -- 4.2%
61 Arkansas Best Corp. B............................. 2,373
35 General Maritime Corp. B.......................... 1,345
17 Old Dominion Freight Line, Inc. B................. 488
55 United Defense Industries, Inc. B................. 2,220
82 USF Corp. ........................................ 2,948
--------
9,374
--------
UTILITIES -- 0.7%
20 Cleco Corp. ...................................... 365
134 Sierra Pacific Resources BH....................... 1,287
--------
1,652
--------
Total common stock
(cost $208,597)................................. $221,136
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 9.0%
FINANCE -- 1.1%
$ 2,398 BNP Paribas Securities Corp.,
1.78%,11-1-2004................................. $ 2,398
200 US Treasury Bill,
1.69%, 12-23-2004 [ ]........................... 200
--------
2,598
--------
</Table>
The accompanying notes are an integral part of these financial statements.
149
THE HARTFORD SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
SHORT-TERM INVESTMENTS -- (CONTINUED)
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 7.9%
17,722 BNY Institutional Cash Reserve Fund............... $ 17,722
--------
Total short-term investments
(cost $20,320).................................. $ 20,320
--------
Total investments in securities
(cost $228,917) O............................... $241,456
========
</Table>
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 0.60% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $229,892 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 24,806
Unrealized depreciation........................ (13,242)
--------
Net unrealized appreciation.................... $ 11,564
========
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
H Securities is fully or partially on loan at October 31, 2004.
[ ]Security pledged as initial margin deposit for open futures contracts
at October 31, 2004.
Futures contract outstanding at October 31, 2004:
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION AT 10/31/2004
----------- --------- -------- ---------- -------------
Russell 2000 Index
Futures Contracts 22 Long December 2004 $35
===
</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.
150
THE HARTFORD STOCK FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -----------
COMMON STOCK -- 99.0%
BASIC MATERIALS -- 6.2%
419 3M Co. ........................................... $ 32,494
90 Air Products and Chemicals, Inc. ................. 4,781
645 Alcoa, Inc. ...................................... 20,956
406 DuPont (E.I.) de Nemours & Co. ................... 17,405
544 Gillette Co. ..................................... 22,582
122 Rio Tinto plc I................................... 3,190
-----------
101,408
-----------
CAPITAL GOODS -- 4.4%
291 Illinois Tool Works, Inc. ........................ 26,844
340 Northrop Grumman Corp. ........................... 17,595
294 United Technologies Corp. ........................ 27,289
-----------
71,728
-----------
CONSUMER CYCLICAL -- 7.5%
421 Caterpillar, Inc. ................................ 33,891
432 Costco Wholesale Corp. ........................... 20,691
1,021 Gap, Inc. ........................................ 20,408
614 Home Depot, Inc. ................................. 25,215
251 NIKE, Inc. Class B................................ 20,384
36 Target Corp. ..................................... 1,806
-----------
122,395
-----------
CONSUMER STAPLES -- 9.8%
349 Anheuser-Busch Companies, Inc. ................... 17,423
711 Coca-Cola Co. .................................... 28,897
511 Colgate-Palmolive Co. ............................ 22,783
448 General Mills, Inc. .............................. 19,806
615 PepsiCo, Inc. .................................... 30,502
804 Procter & Gamble Co. ............................. 41,123
-----------
160,534
-----------
ENERGY -- 8.5%
157 BHP Billiton Ltd. ADR............................. 3,247
591 ChevronTexaco Corp. .............................. 31,355
57 ConocoPhillips.................................... 4,823
1,448 Exxon Mobil Corp. ................................ 71,290
84 Occidental Petroleum Corp. ....................... 4,662
369 Schlumberger Ltd. ................................ 23,206
-----------
138,583
-----------
FINANCE AND INSURANCE -- 18.4%
539 American Express Co. ............................. 28,615
793 American International Group, Inc. ............... 48,128
1,147 Bank of America Corp. ............................ 51,352
1,661 Citigroup, Inc. .................................. 73,677
266 Fannie Mae........................................ 18,625
6 General Growth Properties Warrants IB............. 4
59 General Growth Properties, Inc. .................. 1,950
591 Marsh & McLennan Companies, Inc. ................. 16,339
433 Morgan Stanley.................................... 22,132
534 St. Paul Travelers Companies, Inc. ............... 18,134
481 State Street Corp. ............................... 21,687
-----------
300,643
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- -----------
HEALTH CARE -- 14.2%
469 Abbott Laboratories............................... $ 19,977
585 Amgen, Inc. B..................................... 33,205
40 AstraZeneca plc ADR H............................. 1,660
267 Genzyme Corp. BH.................................. 14,025
654 Lilly (Eli) & Co. ................................ 35,922
732 Medtronic, Inc. .................................. 37,397
2,409 Pfizer, Inc. ..................................... 69,753
520 Wyeth............................................. 20,618
-----------
232,557
-----------
SERVICES -- 4.8%
748 Accenture Ltd. Class A B.......................... 18,116
256 FedEx Corp. H..................................... 23,290
289 Marriott International, Inc. Class A H............ 15,742
582 Viacom, Inc. Class B.............................. 21,234
-----------
78,382
-----------
TECHNOLOGY -- 25.2%
909 Applied Materials, Inc. B......................... 14,627
349 Broadcom Corp. Class A B.......................... 9,430
2,048 Cisco Systems, Inc. B............................. 39,348
1,026 EMC Corp. B....................................... 13,202
528 First Data Corp. ................................. 21,779
2,476 General Electric Co. ............................. 84,468
1,420 Hewlett-Packard Co. .............................. 26,490
1,341 Intel Corp. ...................................... 29,857
393 Lockheed Martin Corp. ............................ 21,661
3,208 Microsoft Corp. .................................. 89,786
1,101 Motorola, Inc. ................................... 19,002
2,459 Time Warner, Inc. B............................... 40,921
-----------
410,571
-----------
Total common stock
(cost $1,593,101)............................... $ 1,616,801
-----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.7%
FINANCE -- 1.0%
$ 1,237 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 1,237
3,201 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 3,201
341 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 341
2,560 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 2,560
2,346 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 2,346
</Table>
The accompanying notes are an integral part of these financial statements.
151
THE HARTFORD STOCK FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -----------
FINANCE -- (CONTINUED)
$ 414 UBS Securities Joint Repurchase Agreement,
1.77%, 11-1-2004................................ $ 414
6,400 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 6,400
-----------
16,499
-----------
SHARES
-------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 0.7%
11,360 BNY Institutional Cash Reserve Fund............... 11,360
-----------
Total short-term investments
(cost $27,859).................................. $ 27,859
-----------
Total investments in securities
(cost $1,620,960) O............................. $ 1,644,660
===========
</Table>
<Table>
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 0.50% of total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $1,638,517 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation....................... $ 122,961
Unrealized depreciation....................... (116,818)
---------
Net unrealized appreciation................... $ 6,143
=========
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
I Securities valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $3,194, which represents 0.20% of
total net assets.
H Security is fully or partially on loan at October 31, 2004.
@@ 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.
152
THE HARTFORD TAX-FREE CALIFORNIA FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- 89.2%
GENERAL OBLIGATIONS -- 22.6%
$100 Azusa, CA,
5.75%, Special Tax Comm Fac Dist #1 Mountain
Cove GO 9-1-2021................................ $ 100
50 Beaumont, CA,
7.25%, FA Rev GO 9-1-2020....................... 54
500 California Infrastructure & Econ Dev,
5.00%, Bay Area Toll Brdgs 1st Lien GO FSA
7-1-2022........................................ 532
250 California,
5.25%, GO 2-1-2033.............................. 260
400 Contra Costa County, CA, Pub FA Tax Alloc Rev,
5.625%, Multiple Proj Areas GO 8-1-2033......... 409
200 Elk Grove, CA,
5.85%, Special Tax East Franklin Community #02-1
GO 8-1-2036..................................... 202
60 Indio, CA,
6.35%, Public Improvement Act 1915 Special
Assessment #2002-3 GO 9-2-2027.................. 61
365 Los Angeles, CA,
5.00%, GO 9-1-2015.............................. 405
300 Oceanside, CA,
5.70%, Community Dev Comm GO 9-1-2025........... 312
100 Perris, CA,
6.25%, Public FA Local Agency Rev GO 9-1-2033... 102
250 Puerto Rico Commonwealth,
5.00%, Ref GO 7-1-2030.......................... 271
300 Puerto Rico Commonwealth,
5.25%, Public Impt GO 7-1-2019.................. 329
250 San Jose, CA,
5.25%, Dev Agency GO 8-1-2014................... 285
425 Solano, CA,
5.25%, GO MBIA 11-1-2021........................ 463
110 University Virgin Islands,
5.00%, GO 12-1-2021............................. 114
-------
3,899
-------
HEALTH CARE/SERVICES -- 6.9%
200 ABAG FA for Non-Profit Corp. California,
5.375%, San Diego Hosp Assoc 3-1-2021........... 206
250 California Health Fac FA,
5.00%, Adv Health Services Rev 10-1-2023........ 248
250 California Health Fac FA,
5.25%, Catholic Healthcare West 7-1-2023........ 255
200 California Public Works Board,
5.375%, Dept of Mental Health Patton............ 209
250 California State Comm Dev Auth,
6.00%, Health Fac Memorial Health Services Rev
10-1-2023....................................... 270
-------
1,188
-------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 7.3%
500 California Educ FA,
5.25%, Santa Clara Univ Rev 9-1-2016............ 574
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
HIGHER EDUCATION -- (CONTINUED)
$200 California Educ Facilities,
3.875%, Luthern Univ 10-1-2014 *................ $ 198
250 California State Comm Dev Auth,
6.75%, John F. Kennedy Univ Rev 10-1-2033....... 246
250 Corona-Norco, CA,
5.625%, USD Special Tax Comm Fac Dist #02
9-1-2033........................................ 251
-------
1,269
-------
LAND DEVELOPMENT -- 9.1%
350 Burbank, CA,
5.50%, FA Rev South San Fernando Redev Proj B
12-1-2023....................................... 363
400 Fontana, CA,
5.50%, Redev Agency Tax Allocation Ref Jurupa
Hills Redev Proj 10-1-2027...................... 413
250 Oakland, CA,
5.25%, Redev Agency Colliseum Area Redev Tax
Allocation 9-1-2033............................. 254
200 San Diego, CA,
5.25%, Redev Agency Centre City Sub Pkg
9-1-2026........................................ 202
175 San Diego, CA,
5.30%, Redev Agency Tax Allocation North Park
Redev Proj 9-1-2016............................. 182
150 San Diego, CA,
5.60%, Redev Agency Tax Allocation North Bay
Redev Proj 9-1-2017............................. 158
-------
1,572
-------
MISCELLANEOUS -- 12.0%
500 California Infrastructure & Econ Dev,
5.25%, Workers Compensation Relief 10-1-2013.... 569
200 California Kings River Conservation Dist,
5.00%, Rev Ref Partner Peaking Project
5-1-2013........................................ 217
400 Huntington Park, CA, Public FA,
5.25%, Rev Ref 9-1-2019......................... 449
135 Indio, CA,
5.00%, Public FA Rev Local Agency 9-2-2014...... 137
100 Lake Elsinore, CA,
5.85%, Special Tax Impt Comm Fac Dist #2-A
9-1-2024........................................ 101
310 Long Beach, CA,
5.00%, Harbor Rev Ref 5-15-2015................. 333
250 Virgin Islands Public FA,
6.125%, Refinery Fac Rev Sr Secured Hovenska
Refinery 7-1-2022............................... 269
-------
2,075
-------
POLLUTION CONTROL -- 1.5%
250 California PCR,
3.50%, Pacific Gas & Elec 12-1-2023............. 256
-------
PUBLIC FACILITIES -- 11.3%
250 California Public Works Board,
5.00%, Dept of Corrections Ref 12-1-2018........ 273
</Table>
The accompanying notes are an integral part of this financial statement.
153
THE HARTFORD TAX-FREE CALIFORNIA FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- (CONTINUED)
PUBLIC FACILITIES -- (CONTINUED)
$100 Capistrano, CA,
5.875%, USD Comm Fac Dist Special Tax #90-2
Talega 9-1-2022................................. $ 103
100 Jurupa, CA,
5.875%, Comm Services Dist #6 Special Tax
9-1-2032........................................ 101
450 Los Angeles, CA,
5.00%, USD 7-1-2023............................. 471
110 Moreno Valley, CA,
5.60%, USD Comm Fac Special Tax #2002-1
9-1-2017........................................ 111
100 Orange County, CA,
5.20%, Comm Fac Dist Special #02-1 Ladera Ranch
8-15-2019....................................... 100
200 Orange County, CA,
5.40%, Comm Fac Dist Special Tax #02-1 Ladera
Ranch 8-15-2022................................. 202
250 Tustin, CA,
5.60%, USD Comm Fac Dist Special Tax #97 Jr Lien
9-1-2029........................................ 253
200 Val Verde, CA,
6.00%, USD FA Special Tax Rev Jr Lien
10-1-2021....................................... 207
125 William S. Hart USD,
5.85%, Special Tax Comm Fac Dist #2002-1
9-1-2022........................................ 128
-------
1,949
-------
UTILITIES -- COMBINED -- 1.7%
250 California State Water Dept,
5.875%, Res Power Supply Rev 5-1-2016........... 287
-------
UTILITIES -- ELECTRIC -- 1.8%
300 Vernon, CA,
5.50%, Elec Sys Rev Malburg Generating Station
Proj 4-1-2033................................... 309
-------
UTILITIES -- GAS -- 1.8%
300 Chula Vista, CA,
5.30%, IDR Daily San Diego Gas 7-1-2021......... 317
-------
UTILITIES -- WATER AND SEWER -- 11.1%
500 Atwater, CA,
5.50%, Public FA Rev Sewer & Water Proj Ser A
5-1-2028........................................ 509
250 Big Bear Muni Water Dist, CA,
5.00%, 1991 Ref Lake Imports 11-1-2024.......... 248
100 Eastern California Municipal Water Dist,
5.70%, Comm Fac Special Tax Improvement Area A
#2001-02 9-1-2018............................... 102
250 Lathrop, CA,
6.00%, FA Rev Water Supply Proj 6-1-2035........ 254
150 Lee Lake, CA,
5.75%, Water Dist Comm Fac Dist #3 Special Tax
Retreat 9-1-2023................................ 151
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
UTILITIES -- WATER AND SEWER -- (CONTINUED)
$200 Santa Margarita, CA,
6.00%, Water Dist Special Tax Comm Fac Dist
#99-1 9-1-2030.................................. $ 203
450 South California Metropolitan Water Dist,
5.00%, Waterworks Rev 7-1-2037.................. 459
-------
1,926
-------
WASTE DISPOSAL -- 2.3%
375 Stockton, CA,
5.20%, Wastewater Sys Proj MBIA 9-1-2029........ 392
-------
Total municipal bonds
(cost $14,981).................................. $15,439
-------
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 5.0%
FINANCE -- 5.0%
865 Dreyfus Basic California Municipal Money Market
Fund, current rate 1.21% X...................... $ 865
-------
Total short-term investments
(cost $865)..................................... $ 865
-------
Total investments in securities
(cost $15,846) O................................ $16,304
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
<Table>
O At October 31, 2004, the cost of securities for federal income tax
purposes is $15,846 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation........................... $467
Unrealized depreciation........................... (9)
----
Net unrealized appreciation....................... $458
====
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
* The cost of securities purchased on a when-issued basis at October 31,
2004 was $198.
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
</Table>
<Table>
AMT -- Alternative Minimum Tax
DA -- Development Authority
FA -- Finance Authority
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
IDA -- Industrial Development Authority Bond
IDR -- Industrial Development Revenue Bond
ISD -- Independent School District
MBIA -- Municipal Bond Insurance Association
PA -- Port Authority
PCR -- Pollution Control Revenue Bond
USD -- United School District
</Table>
The accompanying notes are an integral part of this financial statement.
154
THE HARTFORD TAX-FREE MINNESOTA FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- 91.1%
AIRPORT REVENUES -- 3.1%
$1,000 Minneapolis & St. Paul, MN, Metropolitan Airport
Commission,
5.625%, Airport Rev FGIC AMT 1-1-2018........... $ 1,094
-------
GENERAL OBLIGATIONS -- 32.4%
1,000 Anoka-Hennepin, MN,
5.00%, ISD #11 GO Credit Enhancement Prog
2-1-2015........................................ 1,082
1,300 Becker, MN,
6.00%, ISD #726 GO 2-1-2017..................... 1,490
500 Brainerd, MN,
5.375%, ISD #181 GO FGIC 2-1-2016............... 567
250 Minneapolis, MN,
5.00%, Parking Assess GO 12-1-2020.............. 269
1,000 Minnesota Higher Ed FA,
5.375%, Univ of St Thomas GO 4-1-2018........... 1,061
1,000 Minnesota Higher Ed FA,
5.40%, Univ of St Thomas GO 4-1-2023............ 1,045
1,000 Minnesota,
5.25%, GO 8-1-2016.............................. 1,092
785 Mounds View, MN,
5.25%, ISD #621 GO 2-1-2014..................... 872
1,000 Puerto Rico Commonwealth Public Fin Corp Approp,
5.75%, GO 8-1-2027.............................. 1,128
1,950 Rosemount, MN,
5.70%, ISD #196 GO MBIA 4-1-2015 M.............. 1,293
1,000 Univ of MN,
5.75%, GO 7-1-2018.............................. 1,206
270 Univ Virgin Islands,
5.125%, GO 12-1-2022............................ 281
100 Univ Virgin Islands,
5.25%, GO 12-1-2023............................. 104
125 Univ Virgin Islands,
5.25%, GO 12-1-2024............................. 129
-------
11,619
-------
HEALTH CARE/SERVICES -- 11.0%
1,130 Duluth, MN,
5.50%, Econ DA Health Care Fac Rev Benedictine
Health Sys St Mary 2-15-2023.................... 1,192
250 Minneapolis, MN, Health Care System,
6.00%, Rev Allina Health 11-15-2018............. 276
1,000 Minnesota Agriculture and Economic Dev Healthcare
Fac,
5.25%, Benedictine Health 2-15-2014............. 1,093
1,000 Waconia, MN,
6.10%, Health Care Fac Rev Ridgeview Med Ctr
Proj 1-1-2019................................... 1,131
250 Willmar, MN,
5.00%, Rice Memorial Hosp Proj FSA 2-1-2025..... 261
-------
3,953
-------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 1.0%
$ 350 Minnesota Higher Ed FA,
5.25%, College of St Benedict 3-1-2024.......... $ 361
-------
HOUSING (HFA'S, ETC.) -- 10.9%
695 Minneapolis, MN,
6.00%, Redev Mtg Rev Riverplace Proj 1-1-2020... 697
995 Minnesota Residential Housing Fin Agency,
5.00%, 1-1-2020................................. 1,018
750 Sartell, MN,
5.20%, Environmental Impact Rev Ref 6-1-2027.... 751
450 St Paul, MN,
6.25%, Housing Redev Hope Comm Academy Proj
12-1-2019....................................... 460
1,000 Washington County, MN,
4.60%, Housing and Redev Auth Governmental Rev
Ref Woodland Park Apartment Proj 4-1-2022....... 991
-------
3,917
-------
MISCELLANEOUS -- 8.3%
1,000 Golden Valley, MN,
5.875%, Breck School Proj Rev 10-1-2019......... 1,092
250 Ramsey, MN,
6.50%, Lease Rev Pact Charter School Proj
12-1-2022....................................... 251
500 St Paul, MN,
5.00%, PA Lease Rev 12-1-2019................... 540
300 St Paul, MN,
6.75%, Redev Auth Rev Ref Achieve Language
Academy 12-1-2022............................... 301
750 Virgin Islands Public FA,
6.125%, Refinery Fac Rev Sr Secured Hovenska
Refinery 7-1-2022............................... 806
-------
2,990
-------
POLLUTION CONTROL -- 3.5%
500 Cohasset, MN,
4.95%, PCR Ref Coll Allete Inc Proj 7-1-2022.... 509
750 International Falls, MN, Environmental Fac Rev,
7.20%, Ref Boise Cascade Corp Proj 10-1-2024.... 765
-------
1,274
-------
PUBLIC FACILITIES -- 2.3%
835 Minnesota Agricultural Society,
5.125%, State Fair Rev 9-15-2023................ 842
-------
TRANSPORTATION -- 5.4%
750 Duluth, MN,
4.20%, Seaway PA IDA Dock & Wharf Rev Ref
Cargill Inc Proj 5-1-2013....................... 768
</Table>
The accompanying notes are an integral part of this financial statement.
155
THE HARTFORD TAX-FREE MINNESOTA FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- (CONTINUED)
TRANSPORTATION -- (CONTINUED)
$1,000 Puerto Rico Commonwealth Highway & Transportation
Auth,
5.50%, Rev Ref FSA 7-1-2013..................... $ 1,167
-------
1,935
-------
UTILITIES -- COMBINED -- 0.8%
300 Princeton, MN,
5.00%, Public Utility Sys Rev 4-1-2024.......... 301
-------
UTILITIES -- ELECTRIC -- 7.5%
500 Minnesota Power Agency,
5.25%, Electric Rev 10-1-2019................... 551
1,000 Northern MN Municipal Power Agency,
5.30%, Elec Sys Rev FSA 1-1-2021................ 1,097
1,000 Western MN Municipal Power Agency,
5.00%, MBIA 1-1-2030............................ 1,028
-------
2,676
-------
UTILITIES -- WATER AND SEWER -- 4.9%
500 Minneapolis, MN, Metropolitan Council,
4.75%, Water Treatment 12-1-2016................ 548
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Auth
Rev,
6.25%, 7-1-2013................................. 1,202
-------
1,750
-------
Total municipal bonds
(cost $30,567).................................. $32,712
-------
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 4.9%
FINANCE -- 4.9%
1,764 State Street Bank Tax Free Money Market, Current
rate -- 1.07% X................................. $ 1,764
-------
Total short-term investments
(cost $1,764)................................... $ 1,764
-------
Total investments in securities
(cost $32,331) O ............................... $34,476
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $32,331 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,172
Unrealized depreciation.......................... (27)
------
Net unrealized appreciation...................... $2,145
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
Y The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
@@ Due to the presentation of the financial statements in thousands,
the number or shares and/or dollars round to zero.
<Table>
AMT -- Alternative Minimum Tax
DA -- Development Authority
FA -- Finance Authority
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligations
IDA -- Industrial Development Authority Bond
IDR -- Industrial Development Revenue Bond
ISD -- Independent School District
MBIA -- Municipal Bond Insurance Association
PA -- Port Authority
PCR -- Pollution Control Revenue Bond
USD -- United School District
</Table>
The accompanying notes are an integral part of this financial statement.
156
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- 95.0%
ALABAMA -- 2.2%
$1,855 Huntsville, AL, 5.25%, GO Ser A 5-1-2022.......... $ 2,018
-------
ARIZONA -- 8.1%
1,800 Phoenix, AZ, 6.25%, GO 7-1-2017................... 2,265
1,000 Pima County, AZ,
5.60%, Noah Webster Basic School 12-15-2019..... 986
1,100 Pima County, AZ,
5.75%, Charter Schools Proj 7-1-2016............ 1,110
1,000 Pima County, AZ,
6.10%, Charter Schools Proj 7-1-2024............ 970
487 Sundance Community Fac Dist, AZ,
7.125%, Assessment Dist Special Assessment Rev
#2 7-1-2027..................................... 499
1,225 Tucson, AZ,
5.50%, Water Rev Ref 7-1-2014................... 1,423
200 Vistancia Community Fac Dist, AZ,
6.75%, GO 7-15-2022............................. 205
-------
7,458
-------
CALIFORNIA -- 11.2%
800 California Kings River Conservation Dist,
5.00%, Rev Ref Partner Peaking Project
5-1-2013........................................ 870
80 California State Water Dept,
5.50%, Water Res Dev 12-1-2010.................. 92
750 California State Water Dept,
5.875%, Res Power Supply Rev 5-1-2016........... 861
750 California, 5.25%, GO 2-1-2033.................... 780
500 California, 6.75%, GO 8-1-2011.................... 601
250 Capistrano, CA,
5.875%, USD Comm Fac Dist Special Tax #90-2
Talega 9-1-2021................................. 258
250 Capistrano, CA,
5.90%, USD Comm Fac Dist Special Tax #90-2
Talega 9-1-2020................................. 258
95 Eastern California Municipal Water Dist,
5.70%, Comm Fac Special Tax Improvement Area A
#2001-02 9-1-2018............................... 97
625 Indio, CA,
5.625%, Public FA Rev Local Agency 9-2-2018..... 639
40 Indio, CA,
6.35%, Public Improvement Act 1915 Special
Assessment #2002-3 GO 9-2-2027.................. 41
400 Jurupa, CA,
5.875%, Comm Services Dist #6 Special Tax
9-1-2032........................................ 404
750 Lathrop, CA,
6.00%, FA Rev Water Supply Proj 6-1-2035........ 763
500 Moreno Valley, CA,
6.00%, USD Comm Fac Dist Special Tax #2002-1
9-1-2022........................................ 509
700 Oceanside, CA,
5.70%, Community Dev Comm GO 9-1-2025........... 729
535 Palm Springs, CA,
5.50%, Comm Redev Agency 9-1-2023............... 560
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
CALIFORNIA -- (CONTINUED)
$ 495 Perris, CA,
6.25%, Public FA Local Agency Rev GO 9-1-2033... $ 507
1,000 Pomona, CA,
5.50%, Public FA Rev Sub-Merged
Redev 2-1-2023.................................. 1,030
500 San Diego, CA,
5.25%, Redev Agency Centre City Sub Pkg
9-1-2026........................................ 506
800 Val Verde, CA,
6.00%, USD FA Special Tax Rev Jr Lien
10-1-2021....................................... 827
-------
10,332
-------
FLORIDA -- 5.7%
1,000 Bellalgo, FL,
5.85%, Educ Fac Benefits Dist FL Capital
Improvement Rev 5-1-2022........................ 1,019
1,000 Collier County, FL,
5.375%, School Board Cert of Participation FSA
2-15-2020....................................... 1,109
495 Colonial Country Club Comm Dev Dist, FL,
6.40%, Cap Impr Rev 5-1-2033 M.................. 518
1,250 Florida Dept of Environmental Protection
Preservation,
5.375%, Rev Ser A MBIA 7-1-2015................. 1,411
385 Gateway Services,
5.50%, Comm Dev Dist of FL Special Assessment
Sun City Center Fort Meyers Proj Ser B
5-1-2010........................................ 394
750 Hollywood, FL,
5.125%, Comm Redev Agency 3-1-2014.............. 784
-------
5,235
-------
GEORGIA -- 5.1%
1,105 Fulton County, GA,
5.375%, School Dist GO 1-1-2018................. 1,289
35 Fulton County, GA,
6.375%, Water & Sewer Rev FGIC 1-1-2014......... 42
1,765 Fulton County, GA,
6.375%, Water & Sewer Rev FGIC Part Prere
1-1-2014........................................ 2,104
40 Georgia Municipal Electric Auth,
6.50%, Power Rev 1-1-2017....................... 49
960 Georgia Municipal Electric Auth,
6.50%, Power Rev Ser Y 1-1-2017................. 1,193
-------
4,677
-------
HAWAII -- 0.6%
500 Hawaii,
5.50%, GO Ref Ser CY 2-1-2011................... 568
-------
ILLINOIS -- 5.6%
960 Chicago, IL,
5.25%, Board of Educ GO MBIA 12-1-2019.......... 1,060
1,000 Chicago, IL,
6.75%, Tax Increment Allocation Jr Lien Pilsen
Redev B 6-1-2022................................ 1,026
</Table>
The accompanying notes are an integral part of this financial statement.
157
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$ 500 Illinois Educ FA,
5.70%, Rev Ref Augustana College Ser A
10-1-2032....................................... $ 513
500 Round Lake, IL,
6.70%, Special Tax Rev 3-1-2033................. 527
1,000 Wauconda, IL,
6.625%, Special Service Area #1 Special Tax
Liberty Lakes Proj 3-1-2033..................... 1,015
1,000 Yorkville, IL,
6.875%, United City Special Service Area Special
Tax #2003-100 Raintree Village Proj
3-1-2033........................................ 1,034
-------
5,175
-------
KENTUCKY -- 1.1%
1,000 Christian County, KY,
6.00%, Hosp Rev Ref Jennie Stuart Medical Ser A
7-1-2013........................................ 1,057
-------
LOUISIANA -- 0.6%
500 Louisiana Public FA Rev,
5.50%, Ochsner Clinic Foundation Proj
5-15-2027....................................... 516
-------
MARYLAND -- 3.0%
685 Harford County, MD,
5.25%, Econ Dev Rev Battelle Mem Institute
Project 4-1-2034................................ 710
1,000 Maryland Economic Dev Corp,
6.50%, Student Housing Rev Univ of Maryland
College Park Proj 6-1-2027...................... 1,066
1,000 Maryland Economic Dev Corp.,
5.375%, Student Housing Rev Bowie State Univ
Proj 6-1-2033................................... 983
-------
2,759
-------
MASSACHUSETTS -- 1.2%
940 Massachusetts,
5.25%, GO Consolidated Loan 3-1-2021............ 1,062
60 Massachusetts,
5.25%, GO Consolidated Loan FSA Prere 3-1-021... 68
-------
1,130
-------
MICHIGAN -- 5.5%
500 Detroit, MI,
5.50%, GO MBIA 4-1-2020......................... 560
1,750 Detroit, MI,
6.50%, Water Supply Sys Ref Rev
FGIC 7-1-2015................................... 2,180
1,000 Macomb County, MI,
5.75%, Hosp FA Rev Mt Clemens Gen Hosp
11-15-2025...................................... 934
500 Michigan Hosp FA,
5.625%, Rev Ref Henry Ford Health Sys
3-1-2017........................................ 546
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MICHIGAN -- (CONTINUED)
$ 750 Michigan Strategic Fund Ltd,
5.50%, Rev Ref Dow Chemical Proj AMT
12-1-20283...................................... $ 815
-------
5,035
-------
MINNESOTA -- 3.4%
250 Duluth, MN,
4.20%, Seaway PA IDA Dock & Wharf Rev Ref
Cargill Inc Proj 5-1-2013....................... 256
750 Minneapolis, MN, Health Care System,
6.00%, Rev Allina Health 11-15-2018............. 829
995 Minnesota Residential Housing Fin Agency,
5.00%, 1-1-2020................................. 1,018
500 Ramsey, MN,
6.50%, Lease Rev Pact Charter School Proj
12-1-2022....................................... 503
500 St Paul, MN,
6.75%, Redev Auth Rev Ref Achieve Language
Academy 12-1-2022............................... 501
-------
3,107
-------
MISSISSIPPI -- 0.3%
250 Lowndes County, MS,
6.80%, Solid Waste Disposal & Poll Control Rev
Ref Weyerhaeuser Co Proj 4-1-2022............... 300
-------
MISSOURI -- 0.6%
500 Missouri State Dev Fin Board Infrastructure,
5.50%, Branson 12-1-2032........................ 515
-------
NEVADA -- 1.7%
1,000 Clark County, NV,
6.375%, Impt Dist #142 8-1-2023................. 1,016
500 North Las Vegas, NV,
6.40%, Local Special Impt Dist #60 Aliante
12-1-2022....................................... 515
-------
1,531
-------
NEW HAMPSHIRE -- 0.8%
750 New Hampshire Health & Educ Fac Auth Rev,
5.60% Elliot Hosp 10-1-2022..................... 776
-------
NEW JERSEY -- 5.7%
1,250 Middlesex County, NJ,
5.00%, Improvement Auth Street Student Housing
Proj 8-15-2018.................................. 1,286
750 New Jersey Educ Fac Auth Rev,
5.125%, Stevens Institute of Technology
7-1-2022........................................ 783
1,000 New Jersey Educ Fac Auth Rev,
5.50%, Somerset Medical Center 7-1-2023......... 1,021
275 New Jersey Educ Fac Auth Rev,
6.00%, Fairleigh Dickinson Univ 7-1-2025........ 294
500 New Jersey Educ Fac Auth Rev,
6.50%, Georgian Court College 7-1-2033.......... 554
500 New Jersey Health Care Fac FA Rev,
6.50%, Pascack Valley Hospital 7-1-2023......... 476
</Table>
The accompanying notes are an integral part of this financial statement.
158
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- (CONTINUED)
NEW JERSEY -- (CONTINUED)
v$ 800 New Jersey,
5.625%, Economic Dev Auth Rev Cigarette Tax
6-15-2019....................................... $ 836
-------
5,250
-------
NEW YORK -- 7.3%
250 Dutchess County, NY,
5.00%, IDA Civic Fac Rev Ref Marist College
7-1-2022........................................ 259
800 New York Dorm Auth,
5.25%, Methodist Hosp 7-1-2019.................. 852
1,000 New York NY,
5.75%, GO 3-1-2016.............................. 1,131
350 New York, NY,
5.125%, IDA Rev Empowerment Zone Harlen Mall
12-30-2023...................................... 351
255 New York, NY,
5.25%, IDA Civic Fac Rev American Council
Learned Societie 7-1-2027....................... 268
400 New York, NY,
5.65%, IDA Brooklyn Navy Yard Cogen Partners
10-1-2028....................................... 374
425 New York, NY,
8.25%, GO 6-1-2005.............................. 441
575 New York, NY,
8.25%, GO 6-1-2005.............................. 595
300 Saratoga, NY,
5.00%, IDR Saratoga Hosp Proj 12-1-2013......... 320
1,000 Triborough Bridge & Tunnel Auth of NY,
5.125%, Rev Ref GO 11-15-2029................... 1,038
620 Utica, NY,
6.875%, IDA Civic Fac Rev Utica College
12-1-2014....................................... 668
400 Westchester County, NY,
6.375%, IDA Continuing Care Retirement Mtg
Kendal on Hudson Proj A 1-1-2024................ 412
-------
6,709
-------
NORTH CAROLINA -- 1.2%
500 North Carolina Eastern Municipal Power Agency,
5.375%, Power Sys Rev Ref 1-1-2017.............. 538
500 North Carolina Municipal Power Agency,
5.50%, Catawba Elec Rev 1-1-2014................ 549
-------
1,087
-------
OHIO -- 3.4%
1,045 Cincinnati, OH,
5.50%, Water Sys Rev 12-1-2011.................. 1,190
300 Cuyahoga County, OH,
5.50%, Rev Ref Class A 1-1-2029................. 311
1,270 Hamilton, OH,
6.15%, School Dist Improvement
Ser A 12-1-2016................................. 1,602
-------
3,103
-------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
OTHER U.S. TERRITORIES -- 3.0%
$1,000 Puerto Rico Commonwealth,
5.00%, Ref GO 7-1-2030.......................... $ 1,083
800 Puerto Rico Commonwealth,
5.25%, Public Imprmnt GO 7-1-2019............... 876
110 Univ Virgin Islands,
5.00%, GO 12-1-2021............................. 113
750 Virgin Islands Public FA,
6.125%, Refinery Fac Rev Sr Secured Hovenska
Refinery 7-1-2022............................... 806
-------
2,878
-------
PENNSYLVANIA -- 3.6%
690 Carbon County, PA,
6.65%, IDA Ref Panther Creek Partners Proj AMT
5-1-2010........................................ 747
1,000 Lehigh County, PA,
5.375%, Gen Purpose Auth Rev Saint Lukes
Bethlehem Hosp 8-15-2033........................ 1,006
1,000 Pennsylvania Higher Educ Fac Auth,
5.25%, Widener Univ 7-15-2024................... 1,037
500 Susquehanna Area Regional Airport, PA,
5.375%, Auth Sys Rev Sub 1-1-2018............... 524
-------
3,314
-------
RHODE ISLAND -- 0.3%
250 Rhode Island Health & Educ Bldg Corp Rev,
6.50%, Hosp Financing 8-15-2032................. 266
-------
SOUTH CAROLINA -- 2.5%
1,000 Dorchester County, SC,
5.25%, School Dist #2 Installment Purchase Rev
Growth Remedy Oppty Hike 12-1-2024.............. 1,043
1,000 Piedmont Municipal Power Agency,
6.25%, Elec Rev Ref FGIC 1-1-2021............... 1,262
-------
2,305
-------
TENNESSEE -- 0.5%
500 McMinn County, TN,
7.625%, IDA PCR Calhoun Newsprint Co Proj
3-1-2016........................................ 501
-------
TEXAS -- 4.2%
1,000 Clear Creek, TX,
5.00%, ISD GO 2-15-2018......................... 1,084
400 Houston, TX,
5.50%, Water & Sewer Sys Rev 12-1-2013.......... 452
350 Houston, TX,
5.50%, Water & Sewer Sys Rev 12-1-2013.......... 404
1,000 Matagorda County, TX,
5.60%, Navigation Dist #1 Rev Ref Centerpoint
Energy Proj 3-1-2027............................ 1,036
500 Sam Rayburn Municipal Power Agency, TX,
5.50%, Rev Ref 10-1-2010........................ 540
350 San Antonio, TX,
5.25%, Elec & Gas Rev Ref 2-1-2014.............. 392
-------
3,908
-------
</Table>
The accompanying notes are an integral part of this financial statement.
159
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- -------
MUNICIPAL BONDS -- (CONTINUED)
vUtah -- 0.6%
$ 500 Utah,
5.375%, GO Ref 7-1-2011......................... $ 570
-------
VIRGINIA -- 1.2%
1,000 Peninsula PA of Virginia,
6.00%, Port Fac CSX Transportation Proj Rev Ref
12-15-2012...................................... 1,108
-------
WASHINGTON -- 0.8%
670 King County, WA,
5.00%, ISD #210 GO 6-1-2019..................... 714
-------
WISCONSIN -- 4.0%
1,305 Sparta, WI,
5.90%, School Dist Ref GO FGIC 3-1-2016......... 1,507
1,500 Wisconsin Health & Educ Fac Auth,
6.40%, Rev Aurora Health Care 4-15-2033......... 1,639
500 Wisconsin Housing & Economic Dev Auth,
4.85%, GO Home Ownership Rev 9-1-2017........... 515
-------
3,661
-------
Total municipal bonds
(cost $82,295).................................. $87,563
-------
SHARES
------
XV
SHORT-TERM INVESTMENTS -- 3.7%
FINANCE -- 3.7%
3,398 State Street Bank Tax Free Money Market, Current
rate -- 1.07% w................................. 3,398
-------
Total short-term investments
(cost $3,398)................................... $ 3,398
-------
Total investments in securities
(cost $85,693) O................................ $90,961
=======
</Table>
<Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $85,693 and the aggregate gross unrealized
</Table>
<Table>
Unrealized appreciation.......................... $5,336
Unrealized depreciation.......................... (68)
------
Net unrealized appreciation...................... $5,268
======
</Table>
<Table>
U See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
M 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, 2004, was $518, which represents 0.56%
of total net assets.
w Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
</Table>
<Table>
AMT -- Alternative Minimum Tax
DA -- Development Authority
FA -- Finance Authority
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
IDA -- Industrial Development Authority Bond
IDR -- Industrial Development Revenue Bond
ISD -- Independent School District
MBIA -- Municipal Bond Insurance Association
PA -- Port Authority
PCR -- Pollution Control Revenue Bond
USD -- United School District
</Table>
The accompanying notes are an integral part of this financial statement.
160
THE HARTFORD TAX-FREE NEW YORK FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
MUNICIPAL BONDS -- 91.1%
AIRPORT REVENUES -- 1.6%
$200 Monroe County, NY,
5.25%, Airport Auth Rev Ref Greater Rochester
International 1-1-2014.......................... $ 220
-------
GENERAL OBLIGATIONS -- 14.4%
425 New York, NY,
5.75%, GO 3-1-2016.............................. 481
200 New York, NY,
5.25%, GO 8-1-2015.............................. 222
250 New York, NY,
5.25%, GO 8-1-2015.............................. 279
250 Puerto Rico Commonwealth,
5.00%, Ref GO 7-1-2030.......................... 271
200 Puerto Rico Commonwealth,
5.25%, Public Impt GO 7-1-2019.................. 219
400 Tobacco Settlement FA of NY,
5.50%, GO 6-1-2022.............................. 436
110 Univ Virgin Islands,
5.00%, GO 12-1-2021............................. 114
-------
2,022
-------
HEALTH CARE/SERVICES -- 9.4%
125 Chemung County, NY,
5.00%, IDA Civic Fac Rev Arnot Ogden Medical Ctr
Constr 11-1-2034................................ 124
200 New York Dorm Auth Rev,
5.00%, Memorial Sloan-Kettering Center
7-1-2034........................................ 205
450 New York Dorm Auth Rev,
5.00%, Mental Health Services Fac 2-15-2018..... 471
200 New York Dorm Auth Rev,
5.25%, Methodist Hosp 7-1-2019.................. 213
200 Saratoga, NY,
5.00% Ind Dev Saratoga Hosp Proj 12-1-2014...... 213
100 Westchester County, NY,
6.375%, IDA Continuing Care Retirement Mtg
Kendal on Hudson Proj A 1-1-2024................ 103
-------
1,329
-------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 25.3%
250 Dutchess County, NY,
5.00%, IDA Civic Fac Rev Ref Marist College
7-1-2022........................................ 259
450 New York Dorm Auth Lease Rev,
5.00%, State Univ Dorm Fac 7-1-2032............. 508
425 New York Dorm Auth Lease Rev,
5.50%, Court Fac 5-15-2020...................... 468
190 New York Dorm Auth Rev,
5.00%, Fordham Univ FGIC 7-1-2020............... 204
400 New York Dorm Auth Rev,
5.00%, Mount St Mary College 7-1-2027........... 410
450 New York Dorm Auth Rev,
5.125%, St Barnabas FHA AMBAC 2-1-2022.......... 482
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
HIGHER EDUCATION (UNIV., DORMS, ETC.) --
(CONTINUED)
$135 New York Dorm Auth Rev,
5.25%, Rochester Univ 7-1-2022.................. $ 146
250 New York Dorm Auth Rev,
5.50%, Brooklyn Law School 7-1-2019............. 278
200 New York Dorm Auth Rev,
5.50%, Winthrop South Nassau Univ 7-1-2023...... 207
250 New York Dorm Auth,
5.25%, Upstate Comm College 7-1-2021............ 272
200 Otsego County, NY,
6.00%, IDA Civic Fac Rev Hartwick College Proj
7-1-2011........................................ 222
100 Utica, NY,
6.875%, IDA Civic Fac Rev Utica College
12-1-2014....................................... 108
-------
3,564
-------
HOUSING (HFA'S, ETC.) -- 4.9%
200 Grand Central, NY, Dist Management Assoc Inc,
5.00%, Ref Cap Impt Business Impt 1-1-2022...... 212
425 New York Urban Dev Corp Rev,
5.50%, Personal Income Tax FGIC 3-15-2017....... 483
-------
695
-------
INDUSTRIAL -- 1.8%
250 New York, NY, Ind Dev Agency Civic Fac Rev,
5.25%, YMCA of Greater NY Proj 8-1-2021......... 260
-------
LAND DEVELOPMENT -- 1.7%
150 New York, NY,
5.125%, IDA Rev Empowerment Zone Harlen Mall
12-30-2023...................................... 151
100 New York, NY,
5.65%, IDA Brooklyn Navy Yard Cogen Partners
10-1-2028....................................... 93
-------
244
-------
MISCELLANEOUS -- 8.6%
400 New York Local Govt Assistance,
6.00%, 4-1-2014................................. 473
450 New York, NY,
5.00%, Transitional FA Future Tax Secured
8-1-2023........................................ 472
250 Virgin Islands Public FA,
6.125%, Refinery Fac Rev Sr Secured Hovenska
Refinery 7-1-2022............................... 269
-------
1,214
-------
POLLUTION CONTROL -- 3.3%
450 New York Environmental Fac Corp,
5.00%, 7-15-2026................................ 469
-------
</Table>
The accompanying notes are an integral part of this financial statement.
161
THE HARTFORD TAX-FREE NEW YORK FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
MUNICIPAL BONDS -- (CONTINUED)
PUBLIC FACILITIES -- 3.3%
$450 St. Lawrence, NY,
5.00%, IDA Civic Fac Rev Clarkson Univ Proj
7-1-2023........................................ $ 460
-------
TRANSPORTATION -- 10.0%
450 New York Metropolitan Transportation Auth,
5.125%, 11-15-2031.............................. 463
450 PA of NY & NJ,
5.00%, GO 11-1-2021............................. 484
450 Triborough Bridge & Tunnel Auth of NY,
5.00%, Rev General Purpose 1-1-2032............. 459
-------
1,406
-------
UTILITIES -- ELECTRIC -- 1.8%
250 New York Energy Research & Dev Auth,
5.30%, Elec Fac Rev Adj Long Island Lighting Co
Proj 8-1-2025................................... 257
-------
UTILITIES -- WATER AND SEWER -- 5.0%
450 Jefferson County, NY,
5.20%, IDA Waste Disp 12-1-2020................. 451
250 New York Environmental Fac,
4.45%, Corp Solid Waste Mgmt Inc 7-1-2017....... 257
-------
708
-------
Total municipal bonds
(cost $12,352).................................. $12,848
-------
SHARES
----
SHORT-TERM INVESTMENTS -- 4.9%
FINANCE -- 4.9%
694 Dreyfus Basic New York Municipal Money Market
Fund,
current rate -- 1.25% X......................... $ 694
-------
Total short-term investments
(cost $694)..................................... $ 694
-------
Total investments in securities
(cost $13,046) O ............................... $13,542
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $13,046 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $ 496
Unrealized depreciation.......................... @@
------
Net unrealized appreciation...................... $ 496
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
@@ Due to the presentation of the financial statements in thousands,
the number or shares and/or dollars round to zero.
<Table>
AMT -- Alternative Minimum Tax
DA -- Development Authority
FA -- Finance Authority
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
IDA -- Industrial Development Authority Bond
IDR -- Industrial Development Revenue Bond
ISD -- Independent School District
MBIA -- Municipal Bond Insurance Association
PA -- Port Authority
PCR -- Pollution Control Revenue Bond
USD -- United School District
</Table>
The accompanying notes are an integral part of this financial statement.
162
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
MUNICIPAL BONDS -- 0.5%
GENERAL OBLIGATIONS -- 0.5%
$ 3,000 Illinois,
5.10%, GO Taxable Pension 6-1-2033.............. $ 2,901
--------
Total municipal bonds
(cost $3,000)................................... $ 2,901
--------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 12.4%
FINANCE -- 12.2%
1,350 American Express Credit Account Master Trust,
2.37%, 2-15-2012 MX............................. $ 1,350
408 AQ Finance CEB Trust,
6.93%, 8-25-2033 MX............................. 404
314 Asset Backed Funding Corp. NIM Trust,
4.55%, 12-26-2033 M............................. 313
800 Bank One Issuance Trust,
4.77%, 2-16-2016................................ 789
14,550 Bear Stearns Commercial Mortgage Securities, Inc.,
4.07%, 7-11-2042 W.............................. 688
1,900 Bear Stearns Commercial Mortgage Securities, Inc.,
4.83%, 8-15-2038................................ 1,945
26,495 Bear Stearns Commercial Mortgage Securities, Inc.,
5.50%, 2-11-2041 MW............................. 591
1,067 California Infrastructure & Economic Development,
6.38%, 9-25-2008................................ 1,106
960 Capital One Multi-Asset Execution Trust,
3.50%, 2-17-2009................................ 967
1,430 Chase Credit Card Master Trust,
5.50%, 11-17-2008............................... 1,493
2,040 Citibank Credit Card Issuance Trust,
5.00%, 6-10-2015 H.............................. 2,037
1,375 Citigroup Commercial Mortgage Trust,
5.25%, 4-15-2040................................ 1,448
175 Comed Transitional Funding Trust,
5.44%, 3-25-2007................................ 176
778 Conseco Finance Securitizations Corp.,
5.79%, 5-1-2033................................. 799
699 CS First Boston Mortgage Securities Corp.,
2.08%, 5-15-2038................................ 682
443 Daimler Chrysler Auto Trust,
3.85%, 4-6-2006................................. 444
1,487 Daimler Chrysler Auto Trust,
3.89%, 1-8-2011................................. 1,499
1,750 Fleet Credit Card Master Trust II,
7.02%, 2-15-2008................................ 1,813
1,650 Ford Credit Auto Owner Trust,
4.29%, 11-15-2007............................... 1,669
2,500 GE Capital Commercial Mortgage Corp.,
4.12%, 3-10-2040................................ 2,514
2,700 GE Capital Commercial Mortgage Corp.,
4.37%, 1-10-2038................................ 2,740
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 2,725 GE Capital Commercial Mortgage Corp.,
5.19%, 7-10-2039................................ $ 2,829
1,600 GMAC Commercial Mortgage Securities, Inc.,
5.13%, 8-10-2038................................ 1,666
31,000 Goldman Sachs Mortgage Securities Corp. II,
4.38%, 8-10-2038 W.............................. 544
1,650 Goldman Sachs Mortgage Securities Corp. II,
4.60%, 8-10-2038................................ 1,702
485 Green Tree Financial Corp.,
6.27%, 6-1-2030................................. 500
454 Green Tree Financial Corp.,
7.24%, 6-15-2028................................ 493
492 Home Equity Asset Trust,
5.25%, 4-27-2034 M.............................. 492
524 Honda Auto Receivables Owner Trust,
1.34%, 12-21-2005............................... 524
2,700 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
3.84%, 1-12-2039................................ 2,649
26,126 J.P. Morgan Chase Commercial Mortgage Securities
Corp.,
5.50%, 1-15-2038 MW............................. 1,217
1,712 LB-UBS Commercial Mortgage Trust,
2.72%, 3-15-2007................................ 1,692
1,858 LB-UBS Commercial Mortgage Trust,
3.34%, 9-15-2027................................ 1,849
1,375 LB-UBS Commercial Mortgage Trust,
4.58%, 8-15-2029................................ 1,402
681 Morgan Stanley Auto Loan Trust,
5.00%, 3-15-2012 M.............................. 680
1,375 Morgan Stanley Capital I,
4.90%, 6-15-2040................................ 1,414
2,725 Morgan Stanley Capital I,
5.27%, 6-13-2041................................ 2,844
259 Morgan Stanley Capital I,
5.91%, 11-15-2031............................... 268
1,175 Morgan Stanley Capital I,
7.71%, 4-30-2039 MX............................. 1,305
527 Morgan Stanley Dean Witter Capital I,
4.57%, 12-18-2032............................... 535
3,050 Oncor Electric Delivery Transition Bond Co.,
4.03%, 2-15-2012................................ 3,099
1,202 Park Place Securities, Inc.,
2.31%, 9-25-2034 X.............................. 1,202
1,400 Peco Energy Transition Trust,
6.13%, 3-1-2009................................. 1,517
211 PP&L Transition Bond Co. LLC,
6.83%, 3-25-2007................................ 214
1,125 Providian Gateway Master Trust,
3.35%, 9-15-2011 M.............................. 1,120
1,750 PSE&G Transition Funding LLC,
6.45%, 3-15-2013................................ 1,969
550 Residential Asset Mortgage Products, Inc.,
4.98%, 8-25-2034................................ 553
237 Soundview Home Equity Loan Trust, Inc.,
8.64%, 5-25-2030................................ 243
</Table>
The accompanying notes are an integral part of this financial statement.
163
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 2,960 Standard Credit Card Master Trust,
6.55%, 10-7-2007................................ $ 3,069
623 Volkswagen Auto Loan Enhanced Trust,
1.11%, 12-20-2005............................... 622
10,727 Wachovia Bank Commercial Mortgage Trust,
3.65%, 2-15-2041 MW............................. 480
1,375 Wachovia Bank Commercial Mortgage Trust,
4.72%, 1-15-2041................................ 1,412
1,920 WFS Financial Owner Trust,
2.41%, 12-20-2010............................... 1,905
520 WFS Financial Owner Trust,
3.07%, 11-21-2011............................... 520
2,825 Whole Auto Loan Trust,
2.58%, 3-15-2010................................ 2,802
162 Whole Auto Loan Trust,
6.00%, 4-15-2009 M.............................. 162
--------
70,961
--------
TRANSPORTATION -- 0.1%
570 Connecticut RRB Special Purpose Trust,
6.21%, 12-30-2011............................... 633
--------
UTILITIES -- 0.1%
578 Illinois Power Special Purpose Trust,
5.38%, 6-25-2007................................ 584
--------
Total asset backed and
commercial mortgage securities
(cost $71,825).................................. $ 72,178
--------
CORPORATE BONDS: INVESTMENT GRADE -- 38.0%
BASIC MATERIALS -- 2.3%
800 Carter Holt Harvey Ltd.,
9.50%, 12-1-2024................................ $ 1,079
980 Codelco, Inc.,
4.75%, 10-15-2014 M............................. 965
1,430 Domtar, Inc.,
7.875%, 10-15-2011.............................. 1,660
504 Dow Chemical Co.,
7.00%, 8-15-2005................................ 521
1,500 ICI Wilmington, Inc.,
4.375%, 12-1-2008............................... 1,516
1,110 Inco Ltd.,
0%, Conv. 3-29-2021 Y........................... 1,079
1,200 Inco Ltd.,
7.75%, 5-15-2012 H.............................. 1,427
600 Placer Dome, Inc.,
7.125%, 6-15-2007............................... 655
1,900 Potlatch Corp.,
12.50%, 12-1-2009............................... 2,382
2,000 Union Camp Corp.,
7.00%, 8-15-2006................................ 2,133
--------
13,417
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CAPITAL GOODS -- 1.2%
$ 1,250 American Standard, Inc.,
7.625%, 2-15-2010............................... $ 1,434
2,820 Bombardier, Inc.,
6.30%, 5-1-2014 MH.............................. 2,529
125 Briggs & Stratton Corp.,
8.875%, 3-15-2011............................... 151
1,500 Rockwell Automation, Inc.,
6.70%, 1-15-2028................................ 1,715
1,145 Textron Financial Corp.,
5.875%, 6-1-2007................................ 1,220
--------
7,049
--------
CONSUMER CYCLICAL -- 1.6%
1,175 Albertson's, Inc.,
7.50%, 2-15-2011 H.............................. 1,371
220 CRH America, Inc.,
5.30%, 10-15-2013............................... 227
1,200 CRH America, Inc.,
6.95%, 3-15-2012 H.............................. 1,379
685 Fosters Financial Corp.,
4.875%, 10-1-2014 M............................. 687
1,900 General Motors Corp.,
7.20%, 1-15-2011 H.............................. 2,002
1,950 General Motors Corp.,
8.80%, 3-1-2021................................. 2,117
300 Nine West Group, Inc.,
8.375%, Ser B 8-15-2005......................... 311
930 Staples, Inc.,
7.125%, 8-15-2007............................... 1,017
--------
9,111
--------
CONSUMER STAPLES -- 1.7%
2,200 Cadbury Schweppes Finance plc,
5.00%, 6-26-2007................................ 2,280
625 ConAgra Foods, Inc.,
7.00%, 10-1-2028................................ 723
2,135 ConAgra Foods, Inc.,
7.50%, 9-15-2005................................ 2,215
2,200 General Mills, Inc.,
2.625%, 10-24-2006.............................. 2,178
2,275 Kellogg Co.,
2.875%, 6-1-2008................................ 2,230
--------
9,626
--------
ENERGY -- 3.6%
1,275 Consolidated Natural Gas Co.,
5.375%, 11-1-2006............................... 1,332
1,200 Diamond Offshore Drill Co.,
1.50%, 4-15-2031................................ 1,208
745 Gazprom International S.A.,
7.20%, 2-1-2020 M............................... 782
560 Gazprom International S.A.,
7.20%, 2-1-2020................................. 587
600 Gazprom International, Inc.,
9.625%, 3-1-2013................................ 690
500 Lasmo (USA), Inc.,
7.50%, 6-30-2006................................ 538
</Table>
The accompanying notes are an integral part of this financial statement.
164
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
ENERGY -- (CONTINUED)
$ 650 Occidental Petroleum Corp.,
7.375%, 11-15-2008.............................. $ 739
830 PanCanadian Petroleum Ltd.,
6.30%, 11-1-2011................................ 920
860 Panhandle Eastern Pipeline,
2.75%, 3-15-2007................................ 845
1,130 Pemex Project Funding Master Trust,
7.375%, 12-15-2014.............................. 1,252
870 Petro-Canada,
5.35%, 7-15-2033................................ 812
1,150 Petroleos Mexicanos,
9.25%, 3-30-2018 H.............................. 1,397
1,375 Plains All American Pipeline,
5.625%, 12-15-2013.............................. 1,432
751 Ras Laffan Liquefied Natural Gas Co. Ltd.,
3.44%, 9-15-2009 M.............................. 747
1,150 Repsol International Finance B.V.,
7.45%, 7-15-2005................................ 1,189
1,130 Schlumberger Limited Inc.,
2.125%, 6-1-2023................................ 1,196
2,150 Seariver Maritime, Inc.,
4.47%, 9-1-2012 Y............................... 1,534
1,600 Transocean, Inc.,
1.50%, 5-15-2021................................ 1,578
1,025 Union Oil of California,
5.05%, 10-1-2012................................ 1,053
1,800 Weatherford International Ltd.,
2.84%, Conv. 6-30-2020 Y....................... 1,159
--------
20,990
--------
FINANCE -- 14.5%
948 Abbey National plc,
6.69%, 10-17-2005............................... 981
910 Abbey National plc,
6.70%, 6-29-2049................................ 997
800 Aetna, Inc.,
7.375%, 3-1-2006................................ 843
1,125 Aetna, Inc.,
7.875%, 3-1-2011................................ 1,304
1,420 American General Finance Corp.,
3.875%, 10-1-2009............................... 1,409
800 Anthem, Inc.,
6.80%, 8-1-2012................................. 898
1,600 AvalonBay Communities, Inc.,
8.25%, 7-15-2008................................ 1,846
1,300 Boeing Capital Corp.,
5.75%, 2-15-2007 H.............................. 1,376
4,320 Bundesobligation,
4.50%, 8-17-2007................................ 5,770
780 Capital One Financial Corp.,
8.75%, 2-1-2007................................. 870
1,100 CitiGroup Inc.,
4.00%, 5-8-2008................................. 1,112
985 CitiGroup Inc.,
4.125%, 11-3-2009............................... 988
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
$ 1,200 Credit Suisse First Boston USA, Inc.,
6.125%, 11-15-2011.............................. $ 1,317
700 Duke Realty Corp.,
5.25%, 1-15-2010................................ 732
465 ERAC USA Finance Co.,
8.25%, 5-1-2005 M............................... 478
1,100 ERP Operating L.P.,
6.63%, 4-13-2015................................ 1,119
1,050 Fondo LatinoAmericano De Reservas,
3.00%, 8-1-2006 M............................... 1,053
1,400 Ford Motor Credit Co.,
7.375%, 2-1-2011................................ 1,519
11,300 France (Republic of),
4.00%, O.A.T. 10-25-2013........................ 14,537
13,620 Germany (Federal Republic of),
3.50%, 10-10-2008............................... 17,667
2,470 Goldman Sachs Group, Inc.,
5.25%, 4-1-2013................................. 2,540
450 Halyk Savings Bank of Kazakhstan,
8.125%, 10-7-2009 M............................. 462
3,400 Italy Government Note,
3.75%, 12-14-2007............................... 3,448
1,625 J.P. Morgan Chase & Co.,
5.125%, 9-15-2014............................... 1,651
1,650 J.P. Morgan Chase & Co.,
5.25%, 5-1-2015................................. 1,687
1,450 J.P. Morgan Chase & Co.,
6.875%, 6-15-2010............................... 1,716
577 Kazkommerts International B.V.,
7.00%, 11-3-2009 MI............................. 574
1,125 Merrill Lynch & Co., Inc.,
4.125%, 9-10-2009............................... 1,132
1,130 National Rural Utilities Cooperative Finance
Corp.,
3.00%, 2-15-2006................................ 1,134
725 PNC Funding Corp.,
7.50%, 11-1-2009................................ 838
750 Prudential Insurance Co. of America,
6.375%, 7-23-2006 M............................. 797
1,450 Rabobank Cap Fund Trust III,
5.254%, 12-29-2049.............................. 1,466
250 Southern Investments UK plc,
6.80%, 12-1-2006................................ 264
820 Sovereign Bank,
5.125%, 3-15-2013............................... 829
1,150 St. Paul Companies, Inc.,
8.125%, 4-15-2010............................... 1,354
550 TuranAlem Finance B.V.,
7.875%, 6-2-2010................................ 563
515 TuranAlem Finance B.V.,
8.00%, 3-24-2014 M.............................. 503
1,900 United Mexican States,
4.625%, 10-8-2008............................... 1,932
1,005 UnitedHealth Group, Inc.,
4.125%, 8-15-2009............................... 1,012
495 Verizon Global Funding Corp.,
7.75%, 12-1-2030................................ 607
</Table>
The accompanying notes are an integral part of this financial statement.
165
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 720 Wachovia Corp.,
7.55%, 8-18-2005................................ $ 749
720 Wellpoint Health Networks, Inc.,
6.375%, 6-15-2006............................... 756
1,450 Westfield Capital Corp.,
5.125%, 11-15-2014 M............................ 1,453
--------
84,283
--------
HEALTH CARE -- 0.4%
1,160 Boston Scientific Corp.,
5.45%, 6-15-2014................................ 1,219
750 Humana, Inc.,
7.25%, 8-1-2006................................. 796
477 Manor Care, Inc.,
7.50%, 6-15-2006................................ 510
--------
2,525
--------
SERVICES -- 2.2%
690 American Greetings Corp.,
6.10%, 8-1-2028................................. 749
1,600 ARAMARK Services, Inc.,
7.10%, 12-1-2006................................ 1,720
800 Cox Radio, Inc.,
6.375%, 5-15-2005............................... 813
670 Federal Express Corp.,
3.50%, 4-1-2009................................. 661
575 Fiserv, Inc.,
3.00%, 6-27-2008................................ 562
1,745 Harrah's Operating Co, Inc,
5.25%, 7-1-2010................................. 1,821
1,000 Marriott International, Inc.,
7.875%, 9-15-2009............................... 1,162
700 News America Holdings, Inc.,
7.70%, 10-30-2025............................... 838
685 TCI Communications, Inc.,
8.75%, 8-1-2015................................. 870
1,025 Walt Disney Co.,
6.375%, 3-1-2012................................ 1,142
960 Walt Disney Co.,
7.30%, 2-8-2005................................. 973
1,240 WMX Technologies, Inc.,
7.00%, 10-15-2006............................... 1,331
--------
12,642
--------
TECHNOLOGY -- 5.5%
2,410 AOL Time Warner, Inc.,
3.34%, Conv. 12-6-2019 ##....................... 1,536
2,500 AT&T Wireless Services, Inc.,
8.75%, 3-1-2031................................. 3,356
1,235 British Sky Broadcasting,
7.30%, 10-15-2006............................... 1,329
1,650 Comcast Cable Communications Holdings, Inc.,
8.375%, 3-15-2013............................... 2,024
3,875 Cox Communications, Inc.,
5.50%, 10-1-2015................................ 3,840
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
TECHNOLOGY -- (CONTINUED)
$ 1,600 Deutsche Telekom International Finance B.V.,
8.25%, 6-15-2005................................ $ 1,655
2,450 France Telecom S.A.,
8.50%, 3-1-2011................................. 2,943
1,175 Intelsat Ltd.,
6.50%, 11-1-2013................................ 1,008
1,225 Motorola, Inc.,
8.00%, 11-1-2011................................ 1,477
1,680 Raytheon Co.,
4.50%, 11-15-2007 H............................. 1,738
680 Raytheon Co.,
6.55%, 3-15-2010................................ 759
655 Raytheon Co.,
8.30%, 3-1-2010................................. 786
1,525 SBC Communications,
5.10%, 9-15-2014................................ 1,536
720 SBC Communications,
6.15%, 9-15-2034................................ 727
1,400 Sprint Capital Corp.,
8.75%, 3-15-2032................................ 1,834
1,000 Telefonica Europe B.V.,
7.35%, 9-15-2005................................ 1,041
685 Thomas & Betts Corp.,
7.25%, 6-1-2013................................. 746
3,100 Time Warner Entertainment Co. L.P.,
8.375%, 3-15-2023............................... 3,796
--------
32,131
--------
TRANSPORTATION -- 0.2%
1,370 Southwest Airlines Co.,
5.25%, 10-1-2014................................ 1,375
--------
UTILITIES -- 4.8%
500 Buckeye Partners L.P.,
5.30%, 10-15-2014............................... 509
1,590 Carolina Power & Light Co.,
5.125%, 9-15-2013............................... 1,637
1,140 Carolina Power & Light Co.,
6.125%, 9-15-2033............................... 1,204
1,275 Centerpoint Energy, Inc.,
6.85%, 6-1-2015................................. 1,408
250 Cleveland Electric Illuminating Co.,
7.13%, 7-1-2007................................. 274
2,040 Commonwealth Edison Co.,
4.70%, 4-15-2015 H.............................. 2,052
1,100 Consumers Energy Co.,
6.25%, 9-15-2006................................ 1,161
565 Detroit Edison Co.,
6.125%, 10-1-2010............................... 622
1,175 Duke Energy Corp.,
3.75%, 3-5-2008................................. 1,184
1,400 Florida Power & Light Co.,
5.65%, 2-1-2035................................. 1,436
3,200 FPL Group Capital, Inc.,
3.25%, 4-11-2006................................ 3,222
275 Kansas Gas & Electric Co.,
6.20%, 1-15-2006................................ 286
</Table>
The accompanying notes are an integral part of this financial statement.
166
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 1,660 Kinder Morgan, Inc.,
6.65%, 3-1-2005................................. $ 1,682
800 Northern States Power Co.,
2.875%, 8-1-2006................................ 800
1,500 Northern States Power Co.,
8.00%, 8-28-2012................................ 1,851
1,600 Pacificorp,
5.45%, 9-15-2013................................ 1,695
200 Pacificorp,
6.12%, 1-15-2006................................ 208
900 Public Service Colorado,
4.875%, 3-1-2013................................ 920
1,400 Public Service Electric & Gas Co.,
5.375%, 9-1-2013................................ 1,477
2,007 Southern California Edison Co.,
8.00%, 2-15-2007................................ 2,219
1,250 TXU Corp.,
6.375%, 6-15-2006............................... 1,313
550 Western Resources, Inc.,
7.875%, 5-1-2007................................ 609
--------
27,769
--------
Total corporate bonds:
investment grade
(cost $215,717)................................. $220,918
--------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 5.2%
BASIC MATERIALS -- 0.5%
870 Abitibi-Consolidated, Inc.,
8.85%, 8-1-2030................................. 881
300 Hanna (M.A.) Co.,
6.875%, 12-1-2004............................... 300
1,425 International Steel Group, Inc.,
6.50%, 4-15-2014................................ 1,525
--------
2,706
--------
CONSUMER CYCLICAL -- 0.5%
1,350 Ingles Markets, Inc.,
8.875%, 12-1-2011............................... 1,458
1,439 J.C. Penney Co., Inc.,
7.65%, 8-15-2016................................ 1,633
--------
3,091
--------
CONSUMER STAPLES -- 0.2%
1,225 Smithfield Foods, Inc.,
8.00%, 10-15-2009............................... 1,360
--------
ENERGY -- 0.4%
1,500 El Paso CGP Co.,
6.50%, 6-1-2008................................. 1,500
800 Ferrellgas L.P.,
6.99%, 8-1-2005 M............................... 814
--------
2,314
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
HEALTH CARE -- 0.4%
$ 1,105 HCA, Inc.,
6.91%, 6-15-2005................................ $ 1,124
905 HCA, Inc.,
6.95%, 5-1-2012................................. 954
--------
2,078
--------
SERVICES -- 0.8%
1,400 CSC Holdings, Inc.,
7.625%, 7-15-2018............................... 1,489
1,250 ITT Corp.,
7.375%, 11-15-2015.............................. 1,413
1,425 Mohegan Tribal Gaming,
6.375%, 7-15-2009............................... 1,493
--------
4,395
--------
TECHNOLOGY -- 1.2%
220 Bio-Rad Laboratories, Inc.,
7.50%, 8-15-2013................................ 238
440 Corning, Inc.,
8.30%, 4-4-2025................................. 458
1,270 L-3 Communications Corp.,
7.625%, 6-15-2012............................... 1,403
647 Lucent Technologies, Inc.,
6.45%, 3-15-2029................................ 556
280 Lucent Technologies, Inc.,
6.50%, 1-15-2028................................ 239
147 MCI, Inc.,
5.91%, 5-1-2007................................. 147
147 MCI, Inc.,
6.69%, 5-1-2009................................. 145
126 MCI, Inc.,
7.74%, 5-1-2014................................. 121
1,355 PerkinElmer, Inc.,
8.875%, 1-15-2013............................... 1,541
1,455 Qwest Corp.,
6.875%, 9-15-2033 H............................. 1,251
380 Rogers Cable, Inc.,
6.25%, 6-15-2013................................ 379
420 Shaw Communications, Inc.,
8.25%, 4-11-2010................................ 482
--------
6,960
--------
TRANSPORTATION -- 0.2%
1,587 United Airlines, Inc.,
6.20%, 9-1-2008................................. 1,348
--------
UTILITIES -- 1.0%
135 Kansas Gas & Electric Co.,
8.29%, 3-29-2016................................ 139
1,920 Monongahela Power Co.,
6.70%, 6-15-2014 M.............................. 2,108
850 Montana Power Co.,
7.30%, 12-1-2006 M.............................. 913
1,400 Sierra Pacific Power Co.,
8.00%, 6-1-2008................................. 1,540
155 Tennessee Gas Pipeline Co.,
7.00%, 10-15-2028............................... 150
</Table>
The accompanying notes are an integral part of this financial statement.
167
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 850 Texas-New Mexico Power Co.,
6.125%, 6-1-2008................................ $ 881
--------
5,731
--------
Total corporate bonds:
non-investment grade (cost $28,268)............. $ 29,983
--------
U.S. GOVERNMENT SECURITIES -- 8.5%
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.4%
250 Federal Home Loan Bank,
6.43%, 2-20-2007 X.............................. $ 268
8,800 Tennessee Valley Authority,
6.96%, 11-1-2025 Y.............................. 2,004
--------
2,272
--------
U.S. TREASURY SECURITIES -- 8.1%
12,725 1.875% 2005 H..................................... 12,673
2,770 2.50% 2006 H...................................... 2,768
1,990 3.375% 2009 H..................................... 1,998
4,370 4.00% 2014 H...................................... 4,370
580 4.25% 2014 H...................................... 590
3,180 4.75% 2014 H...................................... 3,362
5,140 5.375% 2031 H..................................... 5,583
5,170 6.25% 2023 H...................................... 6,107
7,760 6.875% 2025 H..................................... 9,855
--------
47,306
--------
Total U.S. government securities
(cost $48,161).................................. $ 49,578
--------
U.S. GOVERNMENT AGENCIES -- 27.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 2.0%
3,800 4.10% 2014........................................ $ 3,796
4,862 5.50% 2033 -- 2034................................ 4,961
2,800 6.00% 2034 I...................................... 2,903
--------
11,660
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 19.8%
30,123 5.00% 2018 -- 2034................................ 30,375
51,183 5.50% 2033 -- 2034................................ 52,201
23,851 6.00% 2013 -- 2034................................ 24,792
2,800 6.00% 2034 I...................................... 2,899
3,528 6.50% 2031 -- 2033................................ 3,716
860 7.50% 2029 -- 2031................................ 923
--------
114,906
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 5.8%
10,550 5.00% 2034 I...................................... 10,580
12,342 5.50% 2033 -- 2034 I.............................. 12,644
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION --
(CONTINUED)
$ 1,601 6.00% 2032........................................ $ 1,667
8,488 6.50% 2028 -- 2032................................ 8,993
--------
33,884
--------
Total U.S. government agencies
(cost $158,391)................................. $160,450
--------
Total U.S. government securities
(cost $206,552)................................. $210,028
--------
Total long-term investments
(cost $525,362)................................. $536,008
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 12.8%
FINANCE -- 8.3%
$ 9,581 BNP Paribas Repurchase Agreement,
1.77%, 11-1-2004................................ $ 9,581
9,582 RBS Greenwich Repurchase Agreement,
1.77%, 11-1-2004................................ 9,582
10,102 State Street Bank Repurchase Agreement,
1.75%, 11-1-2004................................ 10,102
19,163 UBS Warburg LLC Repurchase Agreement,
1.77%, 11-1-2004................................ 19,163
--------
48,428
--------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 4.5%
76,828 Navigator Prime Portfolio......................... 76,828
--------
Total short-term investments
(cost $125,256)................................. $125,256
--------
Total investments in securities
(cost $650,618) O............................... $661,264
========
</Table>
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 13.94% of total net asset at October 31, 2004.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $650,821 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $12,084
Unrealized depreciation......................... (1,641)
-------
Net unrealized appreciation..................... $10,443
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
M 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, 2004, was $22,979, which represents
3.95% of total net assets.
The accompanying notes are an integral part of this financial statement.
168
- --------------------------------------------------------------------------------
X Variable rate securities; the yield reported is the rate in effect at
October 31, 2004.
Y The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
W The interest rates disclosed for interest only strips represent
effective yields based upon estimated future cash flows at October 31,
2004.
H Security is fully or partially on loan at October 31, 2004.
I The cost of securities purchased on a when-issued basis at
October 31, 2004 was $30,188.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
----------- ----------- ------ -------- ---------- --------------
Euro Sell $20,634 $20,474 1/26/2005 $(160)
</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.
169
THE HARTFORD U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
U.S. GOVERNMENT SECURITIES -- 17.8%
OTHER DIRECT FEDERAL OBLIGATIONS -- 3.3%
FEDERAL HOME LOAN BANK:
$ 7,750 5.75% 2012........................................ $ 8,545
--------
U.S. TREASURY SECURITIES -- 14.5%
NOTES:
21,000 4.25% 2014 H...................................... 21,371
15,300 5.00% 2011........................................ 16,522
--------
37,893
--------
Total U.S. government securities
(cost $46,093).................................. $ 46,438
--------
U.S. GOVERNMENT AGENCIES -- 80.3%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 36.2%
MORTGAGE BACKED SECURITIES:
4,702 5.50% 2032........................................ $ 4,803
2,670 6.00% 2032........................................ 2,768
159 7.00% 2029 -- 2031................................ 168
203 9.00% 2022........................................ 228
115 11.50% 2015 -- 2019............................... 128
126 11.75% 2010 -- 2011............................... 141
30 12.50% 2019....................................... 33
--------
8,269
--------
NOTES:
21,000 5.00% 2014........................................ 21,825
15,000 5.25% 2012........................................ 15,370
3,000 5.75% 2012........................................ 3,301
6,000 6.25% 2032........................................ 6,877
--------
47,373
--------
REMIC -- PAC'S:
7,000 5.50% 2029........................................ 7,118
30,413 6.50% 2031........................................ 31,559
--------
38,677
--------
94,319
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 30.2%
MORTGAGE BACKED SECURITIES:
13,689 5.50% 2015 -- 2032................................ 13,995
2,241 5.85% 2009........................................ 2,399
2,788 5.89% 2008........................................ 2,989
4,023 6.00% 2016 -- 2031................................ 4,197
1,347 6.01% 2009........................................ 1,451
2,647 6.36% 2008........................................ 2,846
1,505 6.50% 2013 -- 2015................................ 1,599
5,610 6.52% 2008........................................ 6,033
5,918 7.184% 2006....................................... 6,259
174 7.50% 2030........................................ 187
42 8.00% 2025........................................ 46
59 8.50% 2022........................................ 65
43 9.00% 2020........................................ 49
74 9.75% 2020........................................ 82
200 10.00% 2020....................................... 225
53 10.50% 2012 -- 2018............................... 60
16 10.75% 2013....................................... 18
362 11.00% 2015 -- 2020............................... 405
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FEDERAL NATIONAL MORTGAGE ASSOCIATION --
(CONTINUED)
$ 63 11.25% 2013....................................... $ 69
17 11.50% 2015....................................... 19
541 2.00% 2011 -- 2014................................ 61
110 12.50% 2015....................................... 125
--------
43,179
--------
NOTES:
17,500 6.25% 2029........................................ 19,846
--------
REMIC-PAC'S:
5,000 5.00% 2022........................................ 5,085
9,904 6.50% 2012 -- 2032................................ 10,561
--------
15,646
--------
78,671
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 13.9%
REMIC-PAC'S:
17,400 6.00% 2030........................................ 17,950
8,000 6.50% 2032........................................ 8,523
--------
26,473
--------
MORTGAGE BACKED SECURITIES:
911 6.00% 2034........................................ 948
7,250 6.50% 2031 -- 2032................................ 7,680
117 7.00% 2030........................................ 125
211 8.00% 2017 -- 2022................................ 232
717 9.50% 2016 -- 2019................................ 811
521 1.00% 2015 -- 2018................................ 60
--------
9,856
--------
36,329
--------
Total U.S. government agencies
(cost $205,568)................................. $209,319
--------
Total long-term investments
(cost $251,661)................................. $255,757
--------
SHORT-TERM INVESTMENTS -- 8.3%
FINANCE -- 1.0%
549 State Street Bank Repurchase Agreement,
1.75%, 11-1-2004................................ $ 549
520 BNP Paribas Repurchase Agreement,
1.77%, 11-1-2004................................ 520
1,040 UBS Warburg LLC Repurchase Agreement,
1.77%, 11-1-2004................................ 1,040
520 RBS Greenwich Repurchase Agreement,
1.77%, 11-1-2004................................ 520
--------
2,629
--------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 7.3%
18,945 BNY Institutional Cash Reserve Fund............... 18,945
--------
Total short-term investments
(cost $21,574).................................. $ 21,574
--------
Total investments in securities
(cost $273,235) O............................... $277,331
========
</Table>
The accompanying notes are an integral part of this financial statement.
170
- --------------------------------------------------------------------------------
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $273,235 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $5,069
Unrealized depreciation.......................... (973)
------
Net unrealized appreciation...................... $4,096
======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
H Security is fully or partially on loan at October 31, 2004.
@@ 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.
171
THE HARTFORD VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 98.0%
BASIC MATERIALS -- 6.8%
79 Alcoa, Inc. ...................................... $ 2,561
23 Dow Chemical Co. ................................. 1,043
45 DuPont (E.I.) de Nemours & Co. ................... 1,920
19 Kimberly-Clark Corp. ............................. 1,116
--------
6,640
--------
CAPITAL GOODS -- 5.8%
12 General Dynamics Corp. ........................... 1,195
11 Illinois Tool Works, Inc. ........................ 997
23 Rockwell Automation, Inc. ........................ 942
100 Teradyne, Inc. B.................................. 1,649
29 Tyco International Ltd. .......................... 913
--------
5,696
--------
CONSUMER CYCLICAL -- 7.9%
40 Caterpillar, Inc. ................................ 3,197
56 Dollar General Corp. ............................. 1,072
27 General Motors Corp. ............................. 1,029
35 McDonald's Corp. ................................. 1,012
17 NIKE, Inc. Class B................................ 1,399
--------
7,709
--------
CONSUMER STAPLES -- 4.5%
40 Kellogg Co. ...................................... 1,737
35 PepsiCo, Inc. .................................... 1,730
15 Weyerhaeuser Co. ................................. 915
--------
4,382
--------
ENERGY -- 9.2%
25 ConocoPhillips.................................... 2,133
98 Exxon Mobil Corp. ................................ 4,809
60 GlobalSantaFe Corp. .............................. 1,773
7 Progress Energy, Inc. ............................ 289
--------
9,004
--------
FINANCE -- 28.2%
25 ACE Ltd. ......................................... 955
19 Anthem, Inc. B.................................... 1,544
106 Bank of America Corp. ............................ 4,739
12 Chubb Corp. ...................................... 865
97 Citigroup, Inc. .................................. 4,308
24 Fannie Mae........................................ 1,691
21 Goldman Sachs Group, Inc. ........................ 2,036
47 J.P. Morgan Chase & Co. .......................... 1,811
32 Morgan Stanley.................................... 1,614
70 National City Corp. .............................. 2,740
15 PNC Financial Services Group, Inc. ............... 779
27 Principal Financial Group, Inc. .................. 1,004
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
FINANCE -- (CONTINUED)
13 St. Paul Travelers Companies, Inc. ............... $ 428
15 SunTrust Banks, Inc. ............................. 1,049
13 Washington Mutual, Inc. .......................... 517
26 Wells Fargo & Co. ................................ 1,547
--------
27,627
--------
HEALTH CARE -- 9.4%
45 Baxter International, Inc. ....................... 1,375
47 CVS Corp. ........................................ 2,060
97 Pfizer, Inc. ..................................... 2,798
40 Watson Pharmaceuticals, Inc. B.................... 1,116
48 Wyeth............................................. 1,891
--------
9,240
--------
SERVICES -- 1.8%
61 Comcast Corp. Class A B........................... 1,808
--------
TECHNOLOGY -- 11.3%
50 Applied Materials, Inc. B......................... 802
19 Beckman Coulter, Inc. ............................ 1,137
55 BellSouth Corp. .................................. 1,475
30 Emerson Electric Co. ............................. 1,896
26 Hewlett-Packard Co. .............................. 482
42 Intel Corp. ...................................... 933
11 International Business Machines Corp. ............ 960
33 Lam Research Corp. B.............................. 869
45 SBC Communications, Inc. ......................... 1,124
87 Time Warner, Inc. B............................... 1,439
--------
11,117
--------
TRANSPORTATION -- 5.2%
52 CSX Corp. ........................................ 1,913
33 Shell Transport & Trading Co. plc ADR............. 1,559
105 Southwest Airlines Co. ........................... 1,654
--------
5,126
--------
UTILITIES -- 7.9%
22 Dominion Resources, Inc. ......................... 1,425
21 Entergy Corp. .................................... 1,392
58 Exelon Corp. ..................................... 2,310
17 PPL Corp. ........................................ 889
21 SCANA Corp. ...................................... 761
16 TXU Corp. ........................................ 955
--------
7,732
--------
Total common stock
(cost $88,990).................................. $ 96,081
--------
</Table>
The accompanying notes are an integral part of these financial statements.
172
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE U
- ----------- ---------
SHORT-TERM INVESTMENTS -- 4.9%
FINANCE -- 4.9%
$ 358 ABN AMRO Joint Repurchase Agreement,
1.78%, 11-1-2004................................ $ 358
925 CS First Boston Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 925
98 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 98
740 Deutsche Bank Securities Joint Repurchase
Agreement,
1.86%, 11-1-2004................................ 740
678 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 678
120 UBS Securities Joint Repurchase Agreement, 1.77%,
11-1-2004....................................... 120
1,850 UBS Securities Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 1,850
---------
Total short-term investments
(cost $4,769)................................... $ 4,769
---------
Total investments in securities
(cost $93,759) O................................ $ 100,850
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE U
- --------- --------
FINANCE -- (CONTINUED)
========
</Table>
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 1.59% of
total net asset at October 31, 2004.
<Table>
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $94,014 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation......................... $ 8,687
Unrealized depreciation......................... (1,851)
-------
Net unrealized appreciation..................... $ 6,836
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
@@ 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.
173
THE HARTFORD VALUE OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
COMMON STOCK -- 96.7%
BASIC MATERIALS -- 7.7%
9 Akzo Nobel N.V. IH................................ $ 339
17 Alcoa, Inc. ...................................... 553
10 Aracruz Celulose S.A. ADR......................... 344
14 Engelhard Corp. .................................. 388
15 International Steel Group, Inc. B................. 569
44 Michelin (C.G.D.E.) Class B I..................... 2,412
23 Pactiv Corp. B.................................... 554
91 Sappi Ltd. ADR.................................... 1,324
16 Smurfit-Stone Container Corp. B................... 281
-------
6,764
-------
CAPITAL GOODS -- 4.2%
78 Axcelis Technologies, Inc. B...................... 673
111 Bombardier, Inc. Class B.......................... 254
14 IHC Caland N.V. I................................. 795
60 Teradyne, Inc. B.................................. 990
30 Tyco International Ltd. .......................... 938
-------
3,650
-------
CONSUMER CYCLICAL -- 12.6%
2 Blockbuster, Inc. Class A......................... 14
52 CBRL Group, Inc. ................................. 1,900
101 Foot Locker, Inc. ................................ 2,474
513 Rinker Group Ltd. I............................... 3,336
42 Ross Stores, Inc. ................................ 1,098
40 TJX Companies, Inc. .............................. 969
3 Toll Brothers, Inc. B............................. 153
48 WCI Communities, Inc. B........................... 1,121
-------
11,065
-------
CONSUMER STAPLES -- 1.4%
22 Bunge Ltd. ....................................... 1,026
5 EnCana Corp. ..................................... 224
-------
1,250
-------
ENERGY -- 7.0%
9 Devon Energy Corp. ............................... 658
23 GlobalSantaFe Corp. .............................. 670
19 Marathon Oil Corp. ............................... 720
21 Noble Corp. B..................................... 959
39 OPTI Canada, Inc. B............................... 578
14 Talisman Energy, Inc. ............................ 371
19 Total S.A. ADR.................................... 1,960
7 UGI Corp. ........................................ 274
-------
6,190
-------
FINANCE -- 34.3%
56 ACE Ltd. ......................................... 2,143
5 Aetna, Inc. ...................................... 466
22 AMBAC Financial Group, Inc. ...................... 1,733
30 Anthem, Inc. B.................................... 2,404
106 Apollo Investment Corp. .......................... 1,439
71 Bank of America Corp. ............................ 3,188
38 CB Richard Ellis Group, Inc. Class A B............ 974
28 CIT Group, Inc. .................................. 1,115
75 Citigroup, Inc. .................................. 3,322
44 Fannie Mae........................................ 3,059
12 Freddie Mac....................................... 773
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
FINANCE -- (CONTINUED)
11 IndyMac Bancorp, Inc. ............................ $ 348
25 Metlife, Inc. .................................... 951
46 National City Corp. .............................. 1,793
10 North Fork Bancorp., Inc. ........................ 459
27 Platinum Underwriters Holdings Ltd. .............. 775
16 Radian Group, Inc. ............................... 772
15 Reinsurance Group of America...................... 655
40 RenaissanceRe Holdings Ltd. ADR................... 1,873
38 Rent-A-Center, Inc. B............................. 909
34 Royal Bank of Scotland Group plc I................ 1,005
-------
30,156
-------
HEALTH CARE -- 8.3%
33 Coventry Health Care, Inc. B...................... 1,354
19 GlaxoSmithKline plc ADR........................... 793
61 Pfizer, Inc. ..................................... 1,751
28 Sanofi-Aventis S.A. ADR........................... 1,011
2 Wellchoice, Inc. ................................. 71
58 Wyeth............................................. 2,316
-------
7,296
-------
SERVICES -- 4.2%
35 BearingPoint, Inc. B.............................. 305
10 Comcast Corp. Class A B........................... 307
60 Comcast Corp. Special Class A B................... 1,742
43 Unisys Corp. B.................................... 461
115 UnitedGlobalCom, Inc. Class A B................... 860
-------
3,675
-------
TECHNOLOGY -- 12.2%
49 Arrow Electronics, Inc. B......................... 1,162
26 Cinram International, Inc. ....................... 490
75 Fairchild Semiconductor International, Inc. B..... 1,076
34 Freescale Semiconductor, Inc. B................... 528
58 Lam Research Corp. B.............................. 1,520
31 McLeod USA, Inc. Class A B........................ 10
56 Microsoft Corp. .................................. 1,567
29 Nextel Communications, Inc. Class A B............. 779
20 QLogic Corp. B.................................... 636
87 Time Warner, Inc. B............................... 1,448
20 Varian Semiconductor Equipment
Associates, Inc. B.............................. 692
60 Vishay Intertechnology, Inc. B.................... 775
-------
10,683
-------
TRANSPORTATION -- 3.5%
56 AMR Corp. BH...................................... 432
54 Continental Airlines, Inc. Class B BH............. 505
34 Pinnacle Airlines Corp. B......................... 364
31 United Defense Industries, Inc. B................. 1,256
14 USF Corp. ........................................ 516
-------
3,073
-------
UTILITIES -- 1.3%
19 TXU Corp. ........................................ 1,133
-------
Total common stock
(cost $75,011).................................. $84,935
-------
</Table>
The accompanying notes are an integral part of these financial statements.
174
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE U
- --------- --------
PREFERRED STOCKS -- 0.9%
ENERGY -- 0.9%
25 Petroleo Brasileiro S.A. ADR...................... $ 808
-------
Total Preferred Stocks
(Cost $615)..................................... $ 808
-------
Total Long-Term Investments
(Cost $75,626).................................. $85,743
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 3.0%
FINANCE -- 1.8%
$ 117 ABN AMRO Joint Repurchase Agreement, 1.78%,
11-1-2004....................................... $ 117
304 CS First Boston Joint Repurchase Agreement, 1.86%,
11-1-2004....................................... 304
32 Deutsche Bank Securities Joint Repurchase
Agreement,
1.77%, 11-1-2004................................ 32
243 Deutsche Bank Securities Joint Repurchase
Agreement, 1.86%, 11-1-2004..................... 243
223 J.P. Morgan Chase Joint Repurchase Agreement,
1.86%, 11-1-2004................................ 223
39 UBS Securities Joint Repurchase Agreement, 1.77%,
11-1-2004....................................... 39
607 UBS Securities Joint Repurchase Agreement, 1.86%,
11-1-2004....................................... 607
-------
1,565
-------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 1.2%
1,088 BNY Institutional Cash Reserve Fund............... $ 1,088
-------
Total Short-Term Investments
(Cost $2,653)................................... $ 2,653
-------
Total Investments in Securities
(Cost $78,279) O................................ $88,396
=======
</Table>
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 18.27% of
total net asset at October 31, 2004.
B Currently non-income producing.
O At October 31, 2004, the cost of securities for federal income tax
purposes is $78,512 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $11,748
Unrealized depreciation......................... (1,864)
-------
Net unrealized appreciation..................... $ 9,884
=======
</Table>
U See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
I Securities valued in good faith at fair value by, or under the
direction of, the Funds' Board of Directors. The aggregate value of these
securities at October 31, 2004, was $7,887, which represents 8.98% of total
net assets.
H Security is fully or partially on loan at October 31, 2004.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2004
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Canadian Dollar $@@
Buy $85 $85 11/02/2004 --------------
</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.
175
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2004 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
AGGRESSIVE GROWTH
ADVISERS FUND ALLOCATION FUND*
------------- -----------------
ASSETS:
Investments in securities, at value;@ (Note 2b)............ $ 2,615,938 $ 21,758
Cash....................................................... -- --
Foreign currency on deposit with custodian#................ 1,001 --
Unrealized appreciation on forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... 12,410 --
Fund shares sold......................................... 1,545 950
Dividends and interest................................... 8,830 --
Variation margin......................................... -- --
Other assets............................................... 157 10
------------- -------------
Total assets................................................ 2,639,881 22,718
------------- -------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft............................................. 23 --
Payable upon return of securities loaned (Note 2d)......... 151,288 --
Payables:
Investment securities purchased.......................... 23,647 320
Fund shares redeemed..................................... 4,634 16
Dividends................................................ -- --
Investment advisory and management fees (Note 3)......... 257 1
Distribution fees (Note 3)............................... 223 2
Variation margin......................................... 62 --
Accrued expenses........................................... 686 8
------------- -------------
Total liabilities........................................... 180,820 347
------------- -------------
Net assets.................................................. $ 2,459,061 $ 22,371
============= =============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 2,658,771 $ 21,516
Accumulated undistributed (distribution in excess of) net
investment income.......................................... 7,039 --
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. (315,563) (7)
Unrealized appreciation (depreciation) of investments and
the translation of assets and liabilities denominated in
foreign currency........................................... 108,814 862
------------- -------------
Net assets.................................................. $ 2,459,061 $ 22,371
============= =============
Shares authorized........................................... 760,000 300,000
------------- -------------
Par value................................................... $ 0.001 $ 0.001
------------- -------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $14.57/$15.42 $10.38/$10.98
------------- -------------
Shares outstanding................................... 105,655 1,196
------------- -------------
Net assets........................................... $ 1,539,264 $ 12,415
------------- -------------
CLASS B: Net asset value per share.......................... $ 14.43 $ 10.35
------------- -------------
Shares outstanding.................................. 38,157 438
------------- -------------
Net assets.......................................... $ 550,499 $ 4,532
------------- -------------
CLASS C: Net asset value per share/Maximum offering price
per share.......................................... $14.56/$14.71 $10.35/$10.45
------------- -------------
Shares outstanding................................... 24,426 524
------------- -------------
Net assets........................................... $ 355,711 $ 5,424
------------- -------------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net assets...........................................
------------- -------------
CLASS H: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net assets...........................................
------------- -------------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net assets...........................................
------------- -------------
CLASS M: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding.................................. -- --
------------- -------------
Net assets..........................................
------------- -------------
CLASS N: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net assets...........................................
------------- -------------
CLASS Y: Net asset value per share.......................... $ 14.72 --
------------- -------------
Shares outstanding................................... 923 --
------------- -------------
Net assets........................................... $ 13,587
------------- -------------
CLASS Z: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net assets...........................................
------------- -------------
@ Cost of securities........................................ $ 2,507,098 $ 20,896
------------- -------------
@ Market value of securities on loan........................ $ 148,635 $ --
------------- -------------
# Cost of foreign currency on deposit with custodian....... $ -- $ --
------------- -------------
</Table>
* Relates to investments in affiliated investment companies.
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
176
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<Table>
<Caption>
BALANCED ALLOCATION CAPITAL APPRECIATION CONSERVATIVE ALLOCATION DISCIPLINED EQUITY DIVIDEND AND EQUITY INCOME
FUND FUND FUND FUND GROWTH FUND FUND
------------------- -------------------- ----------------------- ------------------ ------------- -------------
$ 113,609 $ 7,340,765 $ 48,828 $ 346,059 $ 2,541,244 $ 271,662
-- -- -- 401 282 56
-- 3,303 -- -- -- --
-- 18,506 -- -- -- --
-- 58,767 -- 1,559 9,240 699
5,094 25,408 1,450 348 4,276 2,002
3 7,643 2 350 3,444 512
-- -- -- 17 -- --
18 347 7 69 137 45
------------- ------------- ------------- ------------- ------------- -------------
118,724 7,454,739 50,287 348,803 2,558,623 274,976
------------- ------------- ------------- ------------- ------------- -------------
-- 23,100 -- -- -- --
-- 10,832 -- -- -- --
-- 233,186 -- -- 36,615 --
2,124 75,094 510 1,839 11,771 --
22 7,980 42 620 4,242 178
-- -- -- -- -- --
4 767 2 45 261 36
10 658 4 26 187 20
-- -- -- -- -- --
16 2,324 8 155 674 60
------------- ------------- ------------- ------------- ------------- -------------
2,176 353,941 566 2,685 53,750 294
------------- ------------- ------------- ------------- ------------- -------------
$ 116,548 $ 7,100,798 $ 49,721 $ 346,118 $ 2,504,873 $ 274,682
============= ============= ============= ============= ============= =============
$ 113,699 $ 6,355,774 $ 48,769 $ 431,260 $ 2,236,965 $ 264,688
42 4,579 45 391 3,070 613
@@ (182,661) @@ (111,406) 20,280 564
2,807 923,106 907 25,873 244,558 8,817
------------- ------------- ------------- ------------- ------------- -------------
$ 116,548 $ 7,100,798 $ 49,721 $ 346,118 $ 2,504,873 $ 274,682
============= ============= ============= ============= ============= =============
300,000 620,000 300,000 300,000 500,000 300,000
------------- ------------- ------------- ------------- ------------- -------------
$ 0.001 $ 0.001 $ 0.001 $ 0.001 $ 0.001 $ 0.001
------------- ------------- ------------- ------------- ------------- -------------
$10.30/$10.90 $30.80/$32.59 $10.27/$10.87 $10.67/$11.29 $17.79/$18.83 $11.28/$11.94
------------- ------------- ------------- ------------- ------------- -------------
6,533 136,478 3,303 22,580 103,336 18,784
------------- ------------- ------------- ------------- ------------- -------------
$ 67,293 $ 4,203,178 $ 33,921 $ 241,014 $ 1,838,567 $ 211,826
------------- ------------- ------------- ------------- ------------- -------------
$ 10.28 $ 28.82 $ 10.26 $ 10.20 $ 17.56 $ 11.26
------------- ------------- ------------- ------------- ------------- -------------
1,833 49,701 487 4,368 18,197 1,638
------------- ------------- ------------- ------------- ------------- -------------
$ 18,841 $ 1,432,121 $ 4,993 $ 44,561 $ 319,512 $ 18,438
------------- ------------- ------------- ------------- ------------- -------------
$10.28/$10.38 $28.88/$29.17 $10.26/$10.36 $10.22/$10.32 $17.53/$17.71 $11.27/$11.38
------------- ------------- ------------- ------------- ------------- -------------
2,959 46,716 1,053 4,009 15,840 3,909
------------- ------------- ------------- ------------- ------------- -------------
$ 30,414 $ 1,348,972 $ 10,807 $ 40,965 $ 277,706 $ 44,043
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
-- $ 32.29 -- $ 10.99 $ 17.97 $ 11.33
------------- ------------- ------------- ------------- ------------- -------------
-- 3,608 -- 1,782 3,844 33
------------- ------------- ------------- ------------- ------------- -------------
$ 116,527 $ 19,578 $ 69,088 $ 375
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
$ 110,802 $ 6,413,374 $ 47,921 $ 320,277 $ 2,296,686 $ 262,845
------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 222,275 $ -- $ -- $ 35,666 $ --
------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 3,085 $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------- -------------
</Table>
177
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2004 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL
COMMUNICATIONS
FOCUS FUND FUND
----------- --------------
ASSETS:
Investments in securities, at value;@ (Note 2b)............ $ 109,474 $ 11,806
Cash....................................................... @@ 1
Foreign currency on deposit with custodian#................ -- @@
Unrealized appreciation on forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... 3,620 23
Fund shares sold......................................... 50 22
Dividends and interest................................... 178 35
Variation margin......................................... -- --
Other assets............................................... 9 25
----------- -----------
Total assets................................................ 113,331 11,912
----------- -----------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- @@
Bank overdraft............................................. -- --
Payable upon return of securities loaned (Note 2d)......... -- --
Payables:
Investment securities purchased.......................... 2,526 --
Fund shares redeemed..................................... 199 11
Dividends................................................ -- --
Investment advisory and management fees (Note 3)......... 18 2
Distribution fees (Note 3)............................... 10 1
Variation margin......................................... -- --
Accrued expenses........................................... 40 11
Other liabilities.......................................... -- --
----------- -----------
Total liabilities........................................... 2,793 25
----------- -----------
Net assets.................................................. $ 110,538 $ 11,887
=========== ===========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 127,750 $ 15,649
Accumulated undistributed (distribution in excess of) net
investment income.......................................... -- 94
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. (18,339) (5,225)
Unrealized appreciation (depreciation) of investments and
the translation of assets and liabilities denominated in
foreign currency........................................... 1,127 1,369
----------- -----------
Net assets.................................................. $ 110,538 $ 11,887
=========== ===========
Shares authorized........................................... 300,000 300,000
----------- -----------
Par value................................................... $ 0.001 $ 0.001
----------- -----------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $9.14/$9.67 $5.48/$5.80
----------- -----------
Shares outstanding................................... 7,357 1,628
----------- -----------
Net Assets........................................... $ 67,212 $ 8,929
----------- -----------
CLASS B: Net asset value per share.......................... $ 8.92 $ 5.34
----------- -----------
Shares outstanding.................................. 2,088 278
----------- -----------
Net Assets.......................................... $ 18,610 $ 1,482
----------- -----------
CLASS C: Net asset value per share/Maximum offering price
per share.......................................... $8.92/$9.01 $5.33/$5.38
----------- -----------
Shares outstanding................................... 2,680 245
----------- -----------
Net Assets........................................... $ 23,901 $ 1,306
----------- -----------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... -- --
----------- -----------
Shares outstanding................................... -- --
----------- -----------
Net Assets........................................... -- --
----------- -----------
CLASS H: Net asset value per share.......................... -- --
----------- -----------
Shares outstanding................................... -- --
----------- -----------
Net Assets........................................... -- --
----------- -----------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... -- --
----------- -----------
Shares outstanding................................... -- --
----------- -----------
Net Assets........................................... -- --
----------- -----------
CLASS M: Net asset value per share.......................... -- --
----------- -----------
Shares outstanding.................................. -- --
----------- -----------
Net Assets.......................................... -- --
----------- -----------
CLASS N: Net asset value per share.......................... -- --
----------- -----------
Shares outstanding................................... -- --
----------- -----------
Net Assets........................................... -- --
----------- -----------
CLASS Y: Net asset value per share.......................... $ 9.28 $ 5.60
----------- -----------
Shares outstanding................................... 88 30
----------- -----------
Net Assets........................................... $ 815 $ 170
----------- -----------
CLASS Z: Net asset value per share.......................... -- --
----------- -----------
Shares outstanding................................... -- --
----------- -----------
Net Assets........................................... -- --
----------- -----------
@ Cost of securities........................................ $ 108,347 $ 10,437
----------- -----------
@ Market value of securities on loan........................ $ -- $ --
----------- -----------
# Cost of foreign currency on deposit with custodian....... $ -- $
----------- -----------
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
178
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL GROWTH
GLOBAL FINANCIAL GLOBAL HEALTH GLOBAL LEADERS TECHNOLOGY ALLOCATION
SERVICES FUND FUND FUND FUND FUND GROWTH FUND
------------- ------------- -------------- ----------- ------------- -------------
$ 20,264 $ 329,758 $ 838,057 $ 60,372 $ 76,579 $ 915,813
-- @@ 2 3 -- 1
-- -- 832 18 -- --
-- -- 7 -- -- --
214 34 36,409 2,711 -- 8,844
2 1,462 1,195 40 3,200 3,681
25 260 472 3 -- 307
-- -- -- -- -- --
16 291 196 212 20 312
------------- ------------- ------------- ----------- ------------- -------------
20,521 331,805 877,170 63,359 79,799 928,958
------------- ------------- ------------- ----------- ------------- -------------
-- -- 1 -- -- --
1 -- -- -- -- --
1,204 31,103 135,193 705 -- 67,044
223 717 37,974 2,946 1,070 25,067
19 377 1,041 169 27 908
-- -- -- -- -- --
3 49 94 9 2 102
2 29 52 7 7 52
-- -- -- -- -- --
15 134 314 50 -- 195
-- -- -- -- 16 --
------------- ------------- ------------- ----------- ------------- -------------
1,467 32,409 174,669 3,886 1,122 93,368
------------- ------------- ------------- ----------- ------------- -------------
$ 19,054 $ 299,396 $ 702,501 $ 59,473 $ 78,677 $ 835,590
============= ============= ============= =========== ============= =============
$ 18,388 $ 269,633 $ 673,578 $ 117,693 $ 76,242 $ 813,440
185 -- 1 -- -- --
(1,423) 14,794 (66,715) (61,735) @@ (73,099)
1,904 14,969 95,637 3,515 2,435 95,249
------------- ------------- ------------- ----------- ------------- -------------
$ 19,054 $ 299,396 $ 702,501 $ 59,473 $ 78,677 $ 835,590
============= ============= ============= =========== ============= =============
300,000 300,000 300,000 300,000 300,000 21,000,000
------------- ------------- ------------- ----------- ------------- -------------
$ 0.001 $ 0.001 $ 0.001 $ 0.001 $ 0.001 $ 0.0001
------------- ------------- ------------- ----------- ------------- -------------
$10.44/$11.05 $15.00/$15.87 $16.49/$17.45 $4.42/$4.68 $10.36/$10.96 $16.19/$17.13
------------- ------------- ------------- ----------- ------------- -------------
1,237 11,376 28,259 7,102 4,177 23,731
------------- ------------- ------------- ----------- ------------- -------------
$ 12,910 $ 170,672 $ 466,013 $ 31,418 $ 43,279 $ 384,160
------------- ------------- ------------- ----------- ------------- -------------
$ 10.26 $ 14.50 $ 15.77 $ 4.28 $ 10.34 $ 14.49
------------- ------------- ------------- ----------- ------------- -------------
297 4,553 5,717 3,035 1,372 2,238
------------- ------------- ------------- ----------- ------------- -------------
$ 3,043 $ 66,035 $ 90,179 $ 12,978 $ 14,177 $ 32,440
------------- ------------- ------------- ----------- ------------- -------------
$10.26/$10.36 $14.51/$14.66 $15.84/$16.00 $4.28/$4.32 $10.33/$10.43 $14.50/$14.65
------------- ------------- ------------- ----------- ------------- -------------
240 4,231 5,526 3,247 2,053 3,281
------------- ------------- ------------- ----------- ------------- -------------
$ 2,459 $ 61,390 $ 87,518 $ 13,891 $ 21,221 $ 47,575
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 14.59
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- 1,613
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 23,527
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $16.32/$17.13
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- 19,006
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 310,084
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 14.57
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- 1,477
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 21,522
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 14.57
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- 299
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- $ 4,356
------------- ------------- ------------- ----------- ------------- -------------
$ 10.55 $ 15.41 $ 17.06 $ 4.51 -- $ 16.42
------------- ------------- ------------- ----------- ------------- -------------
61 84 3,447 263 -- 727
------------- ------------- ------------- ----------- ------------- -------------
$ 642 $ 1,299 $ 58,791 $ 1,186 -- $ 11,926
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ----------- ------------- -------------
$ 18,360 $ 314,795 $ 742,508 $ 56,857 $ 74,144 $ 820,564
------------- ------------- ------------- ----------- ------------- -------------
$ 1,143 $ 30,128 $ 130,036 $ 668 $ -- $ 65,543
------------- ------------- ------------- ----------- ------------- -------------
$ -- $ -- $ 804 $ 17 $ -- $ --
------------- ------------- ------------- ----------- ------------- -------------
</Table>
179
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2004 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH
OPPORTUNITIES HIGH YIELD
FUND FUND
------------- -----------
ASSETS:
Investments in securities, at value;@ (Note 2b)............ $ 748,954 $ 439,387
Cash....................................................... -- 271
Foreign currency on deposit with custodian#................ -- 276
Unrealized appreciation on forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... 17,349 3,952
Fund shares sold......................................... 522 1,635
Dividends and interest................................... 161 8,365
Variation margin......................................... -- --
Other assets............................................... 103 26
------------- -----------
Total assets................................................ 767,089 453,912
------------- -----------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft............................................. 3,206 --
Payable upon return of securities loaned (Note 2d)......... 61,870 46,995
Payables:
Investment securities purchased.......................... 491 6,034
Fund shares redeemed..................................... 568 666
Dividends................................................ -- 408
Investment advisory and management fees (Note 3)......... 87 49
Distribution fees (Note 3)............................... 39 34
Variation margin......................................... -- --
Accrued expenses........................................... 104 116
Other liabilities.......................................... -- 191
------------- -----------
Total liabilities........................................... 66,365 54,493
------------- -----------
Net assets.................................................. $ 700,724 $ 399,419
============= ===========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 667,383 $ 466,703
Accumulated undistributed (distribution in excess of) net
investment income.......................................... -- 362
Accumulated net realized gain on investments and foreign
currency transactions...................................... (76,749) (85,612)
Unrealized appreciation (depreciation) of investments and
the translation of assets and liabilities denominated in
foreign currency........................................... 110,090 17,966
------------- -----------
Net assets.................................................. $ 700,724 $ 399,419
============= ===========
Shares authorized........................................... 19,250,000 300,000
------------- -----------
Par value................................................... $ 0.0001 $ 0.001
------------- -----------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $23.49/$24.86 $8.18/$8.57
------------- -----------
Shares outstanding................................... 2,326 30,236
------------- -----------
Net Assets........................................... $ 54,652 $ 247,364
------------- -----------
CLASS B: Net asset value per share.......................... $ 20.77 $ 8.17
------------- -----------
Shares outstanding.................................. 555 7,832
------------- -----------
Net Assets.......................................... $ 11,518 $ 63,972
------------- -----------
CLASS C: Net asset value per share/Maximum offering price
per share.......................................... $20.77/$20.98 $8.17/$8.25
------------- -----------
Shares outstanding................................... 573 8,768
------------- -----------
Net Assets........................................... $ 11,899 $ 71,673
------------- -----------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... -- --
------------- -----------
Shares outstanding................................... -- --
------------- -----------
Net Assets........................................... -- --
------------- -----------
CLASS H: Net asset value per share.......................... $ 20.92 --
------------- -----------
Shares outstanding................................... 1,879 --
------------- -----------
Net Assets........................................... $ 39,300 --
------------- -----------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... $23.71/$24.89 --
------------- -----------
Shares outstanding................................... 21,852 --
------------- -----------
Net Assets........................................... $ 518,009 --
------------- -----------
CLASS M: Net asset value per share.......................... $ 20.89 --
------------- -----------
Shares outstanding.................................. 1,073 --
------------- -----------
Net Assets.......................................... $ 22,404 --
------------- -----------
CLASS N: Net asset value per share.......................... $ 20.89 --
------------- -----------
Shares outstanding................................... 237 --
------------- -----------
Net Assets........................................... $ 4,955 --
------------- -----------
CLASS Y: Net asset value per share.......................... $ 23.82 $ 8.17
------------- -----------
Shares outstanding................................... 201 2,008
------------- -----------
Net Assets........................................... $ 4,792 $ 16,410
------------- -----------
CLASS Z: Net asset value per share.......................... $ 24.66 --
------------- -----------
Shares outstanding................................... 1,346 --
------------- -----------
Net Assets........................................... $ 33,195 --
------------- -----------
@ Cost of securities........................................ $ 638,864 $ 421,252
------------- -----------
@ Market value of securities on loan........................ $ 57,173 $ 46,057
------------- -----------
# Cost of foreign currency on deposit with custodian....... $ -- $ 264
------------- -----------
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
180
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL INTERNATIONAL INTERNATIONAL
INCOME ALLOCATION INFLATION PLUS CAPITAL APPRECIATION OPPORTUNITIES SMALL COMPANY
FUND INCOME FUND FUND FUND FUND FUND
----------------- ------------- -------------- -------------------- ------------- -------------
$ 16,328 $ 40,165 $ 753,739 $ 116,495 $ 158,659 $ 100,854
-- 17 3,712 -- 1 1
-- 1 -- 14 82 9
-- -- -- 2 1 362
-- 81 4,489 2,263 6,767 1,386
869 113 4,854 1,597 120 56
3 538 4,689 50 172 210
-- -- -- -- -- --
6 6 40 68 214 33
------------- ------------- ------------- ------------- ------------- -------------
17,206 40,921 771,523 120,489 166,016 102,911
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- 114 751
-- -- -- 762 -- --
-- -- -- 15,711 30,806 16,369
81 148 3,711 3,126 3,633 5,496
2 36 2,209 132 664 63
8 24 324 -- -- --
1 4 73 16 18 13
1 3 85 6 11 3
-- -- -- -- -- --
4 13 161 36 84 35
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
97 228 6,563 19,789 35,330 22,730
------------- ------------- ------------- ------------- ------------- -------------
$ 17,109 $ 40,693 $ 764,960 $ 100,700 $ 130,686 $ 80,181
============= ============= ============= ============= ============= =============
$ 17,018 $ 39,444 $ 742,124 $ 90,304 $ 158,407 $ 70,468
1 17 293 -- 109 584
1 160 3,655 (648) (40,402) 8,308
89 1,072 18,888 11,044 12,572 821
------------- ------------- ------------- ------------- ------------- -------------
$ 17,109 $ 40,693 $ 764,960 $ 100,700 $ 130,686 $ 80,181
============= ============= ============= ============= ============= =============
300,000 300,000 400,000 300,000 300,000 300,000
------------- ------------- ------------- ------------- ------------- -------------
$ 0.001 $ 0.001 $ 0.001 $ 0.001 $ 0.001 $ 0.001
------------- ------------- ------------- ------------- ------------- -------------
$10.15/$10.63 $10.72/$11.23 $10.95/$11.47 $11.59/$12.26 $11.22/$11.87 $13.44/$14.22
------------- ------------- ------------- ------------- ------------- -------------
1,039 2,759 28,661 4,318 7,787 1,781
------------- ------------- ------------- ------------- ------------- -------------
$ 10,539 $ 29,580 $ 313,961 $ 50,051 $ 87,348 $ 23,934
------------- ------------- ------------- ------------- ------------- -------------
$ 10.14 $ 10.72 $ 10.96 $ 11.32 $ 10.64 $ 13.23
------------- ------------- ------------- ------------- ------------- -------------
167 516 9,848 793 2,191 282
------------- ------------- ------------- ------------- ------------- -------------
$ 1,690 $ 5,541 $ 107,964 $ 8,968 $ 23,301 $ 3,726
------------- ------------- ------------- ------------- ------------- -------------
$10.14/$10.24 $10.74/$10.85 $10.96/$11.07 $11.32/$11.43 $10.57/$10.68 $13.12/$13.25
------------- ------------- ------------- ------------- ------------- -------------
481 518 29,204 1,140 1,490 768
------------- ------------- ------------- ------------- ------------- -------------
$ 4,880 $ 5,562 $ 319,990 $ 12,906 $ 15,749 $ 10,072
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- $ 10.72 $ 10.97 $ 11.72 $ 11.53 $ 13.54
------------- ------------- ------------- ------------- ------------- -------------
-- 1 2,100 2,454 372 3,134
------------- ------------- ------------- ------------- ------------- -------------
-- $ 10 $ 23,045 $ 28,775 $ 4,288 $ 42,449
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
$ 16,239 $ 39,093 $ 734,851 $ 105,456 $ 146,004 $ 99,658
------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ -- $ 15,107 $ 29,251 $ 15,428
------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 1 $ -- $ 15 $ 78 $ 94
------------- ------------- ------------- ------------- ------------- -------------
</Table>
181
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2004 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MIDCAP
MIDCAP FUND VALUE FUND
------------- -------------
ASSETS:
Investments in securities, at value;@ (Note 2b)............ $ 2,841,566 $ 410,828
Cash....................................................... @@ @@
Foreign currency on deposit with custodian#................ @@ --
Unrealized appreciation on forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... 13,487 5,282
Fund shares sold......................................... 1,271 93
Dividends and interest................................... 861 76
Variation margin......................................... -- --
Other assets............................................... 167 222
------------- -------------
Total assets................................................ 2,857,352 416,501
------------- -------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ 7 @@
Bank overdraft............................................. -- 170
Payable upon return of securities loaned (Note 2d)......... 267,426 2,701
Payables:
Investment securities purchased.......................... 13,226 2,191
Fund shares redeemed..................................... 2,962 856
Dividends................................................ -- --
Investment advisory and management fees (Note 3)......... 310 57
Distribution fees (Note 3)............................... 226 35
Variation margin......................................... -- --
Accrued expenses........................................... 767 154
Other liabilities.......................................... -- --
------------- -------------
Total liabilities........................................... 284,924 6,164
------------- -------------
Net assets.................................................. $ 2,572,428 $ 410,337
============= =============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 2,053,707 $ 339,568
Accumulated undistributed (distribution in excess of) net
investment income.......................................... -- --
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. 50,329 30,463
Unrealized appreciation (depreciation) of investments and
the translation of assets and liabilities denominated in
foreign currency........................................... 468,392 40,306
------------- -------------
Net assets.................................................. $ 2,572,428 $ 410,337
============= =============
Shares authorized........................................... 460,000 300,000
------------- -------------
Par value................................................... $ 0.001 $ 0.001
------------- -------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $22.61/$23.93 $12.89/$13.64
------------- -------------
Shares outstanding................................... 68,336 21,729
------------- -------------
Net Assets........................................... $ 1,544,968 $ 280,173
------------- -------------
CLASS B: Net asset value per share.......................... $ 21.47 $ 12.59
------------- -------------
Shares outstanding.................................. 20,436 4,812
------------- -------------
Net Assets.......................................... $ 438,658 $ 60,558
------------- -------------
CLASS C: Net asset value per share/Maximum offering price
per share.......................................... $21.52/$21.74 $12.59/$12.72
------------- -------------
Shares outstanding................................... 22,504 5,333
------------- -------------
Net Assets........................................... $ 484,268 $ 67,132
------------- -------------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net Assets........................................... -- --
------------- -------------
CLASS H: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net Assets........................................... -- --
------------- -------------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net Assets........................................... -- --
------------- -------------
CLASS M: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding.................................. -- --
------------- -------------
Net Assets.......................................... -- --
------------- -------------
CLASS N: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net Assets........................................... -- --
------------- -------------
CLASS Y: Net asset value per share.......................... $ 23.43 $ 13.11
------------- -------------
Shares outstanding................................... 4,462 189
------------- -------------
Net Assets........................................... $ 104,534 $ 2,474
------------- -------------
CLASS Z: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net Assets........................................... -- --
------------- -------------
@ Cost of securities........................................ $ 2,373,179 $ 370,522
------------- -------------
@ Market value of securities on loan........................ $ 260,076 $ 2,569
------------- -------------
# Cost of foreign currency on deposit with custodian....... @@ $ --
------------- -------------
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
182
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET SHORT DURATION SMALL COMPANY SMALL CAP TAX-FREE
FUND FUND FUND GROWTH FUND STOCK FUND CALIFORNIA FUND
------------ -------------- ------------- ------------- ------------- ---------------
$ 288,095 $ 119,129 $ 342,211 $ 241,456 $ 1,644,660 $ 16,304
10 38 -- @@ @@ 1,224
-- -- -- -- -- --
-- -- @@ -- -- --
-- -- 9,626 2,147 9,487 --
726 832 266 262 960 12
454 1,132 26 55 1,949 196
-- -- -- -- -- --
95 14 257 132 107 4
----------- ------------- ------------- ------------- ------------- -------------
289,380 121,145 352,386 244,052 1,657,163 17,740
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
-- -- 471 -- -- --
-- -- 69,328 17,722 11,360 --
-- 3,010 1,750 1,304 8,156 198
1,614 272 868 239 3,714 217
6 28 -- -- -- 6
24 11 39 33 189 2
22 10 26 21 145 1
-- -- -- 1 -- --
112 21 130 49 642 5
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
1,778 3,352 72,612 19,369 24,206 429
----------- ------------- ------------- ------------- ------------- -------------
$ 287,602 $ 117,793 $ 279,774 $ 224,683 $ 1,632,957 $ 17,311
=========== ============= ============= ============= ============= =============
$ 287,602 $ 118,167 $ 328,859 $ 269,562 $ 2,185,792 $ 16,899
-- 17 -- -- -- 2
-- (516) (78,854) (57,453) (576,535) (48)
-- 125 29,769 12,574 23,700 458
----------- ------------- ------------- ------------- ------------- -------------
$ 287,602 $ 117,793 $ 279,774 $ 224,683 $ 1,632,957 $ 17,311
=========== ============= ============= ============= ============= =============
2,700,000 300,000 300,000 21,000,000 300,000 300,000
----------- ------------- ------------- ------------- ------------- -------------
$ 0.001 $ 0.001 $ 0.001 $ 0.0001 $ 0.001 $ 0.001
----------- ------------- ------------- ------------- ------------- -------------
$1.00/$1.00 $10.08/$10.39 $15.09/$15.97 $24.60/$26.03 $16.76/$17.74 $10.32/$10.81
----------- ------------- ------------- ------------- ------------- -------------
205,442 3,883 10,358 1,747 56,829 1,438
----------- ------------- ------------- ------------- ------------- -------------
$ 205,442 $ 39,148 $ 156,278 $ 42,962 $ 952,606 $ 14,846
----------- ------------- ------------- ------------- ------------- -------------
$ 1.00 $ 10.08 $ 14.17 $ 22.39 $ 15.76 $ 10.31
----------- ------------- ------------- ------------- ------------- -------------
45,836 1,217 4,123 533 21,780 99
----------- ------------- ------------- ------------- ------------- -------------
$ 45,836 $ 12,267 $ 58,438 $ 11,930 $ 343,148 $ 1,017
----------- ------------- ------------- ------------- ------------- -------------
$1.00/$1.01 $10.08/$10.18 $14.19/$14.33 $22.39/$22.62 $15.84/$16.00 $10.33/$10.43
----------- ------------- ------------- ------------- ------------- -------------
26,626 3,466 3,477 453 16,183 140
----------- ------------- ------------- ------------- ------------- -------------
$ 26,626 $ 34,949 $ 49,327 $ 10,140 $ 256,271 $ 1,448
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 22.46 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- 772 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 17,328 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $24.60/$25.83 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- 4,645 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 114,266 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 22.44 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- 720 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 16,154 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 22.46 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- 272 -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- $ 6,115 -- --
----------- ------------- ------------- ------------- ------------- -------------
$ 1.00 $ 10.07 $ 15.74 $ 24.88 $ 17.49 --
----------- ------------- ------------- ------------- ------------- -------------
9,698 3,120 999 233 4,628 --
----------- ------------- ------------- ------------- ------------- -------------
$ 9,698 $ 31,429 $ 15,731 $ 5,788 $ 80,932 --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- -------------
$ 288,095 $ 119,004 $ 312,442 $ 228,917 $ 1,620,960 $ 15,846
----------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ 67,370 $ 17,350 $ 11,070 $ --
----------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ --
----------- ------------- ------------- ------------- ------------- -------------
</Table>
183
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2004 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE TAX-FREE
MINNESOTA FUND NATIONAL FUND
-------------- -------------
ASSETS:
Investments in securities, at value;@ (Note 2b)............ $ 34,476 $ 90,961
Cash....................................................... 1,095 --
Foreign currency on deposit with custodian#................ -- --
Unrealized appreciation in forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... -- 80
Fund shares sold......................................... 10 61
Dividends and interest................................... 440 1,414
Futures contracts........................................ -- --
Other assets............................................... 17 51
------------- -------------
Total assets................................................ 36,038 92,567
------------- -------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft............................................. -- --
Payable upon return of securities loaned (Note 2d)......... -- --
Payables:
Investment securities purchased.......................... -- --
Fund shares redeemed..................................... 16 196
Dividends................................................ 110 151
Investment advisory and management fees (Note 3)......... 4 11
Distribution fees (Note 3)............................... 1 5
Futures contracts........................................ -- --
Accrued expenses........................................... 7 18
Other liabilities.......................................... -- --
------------- -------------
Total liabilities........................................... 138 381
------------- -------------
Net assets.................................................. $ 35,900 $ 92,186
============= =============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 33,739 $ 86,897
Accumulated undistributed (distribution in excess of) net
investment income.......................................... 16 21
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. @@ @@
Unrealized appreciation (depreciation) of investments and
the translation of assets and liabilities denominated in
foreign currency........................................... 2,145 5,268
------------- -------------
Net assets.................................................. $ 35,900 $ 92,186
============= =============
Shares authorized........................................... 19,250,000 19,250,000
------------- -------------
Par value................................................... $ 0.001 $ 0.001
------------- -------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $10.44/$10.93 $11.22/$11.75
------------- -------------
Shares outstanding................................... 411 3,137
------------- -------------
Net Assets........................................... $ 4,286 $ 35,210
------------- -------------
CLASS B: Net asset value per share.......................... $ 10.45 $ 11.15
------------- -------------
Shares outstanding.................................. 62 559
------------- -------------
Net Assets.......................................... $ 645 $ 6,236
------------- -------------
CLASS C: Net asset value per share/Maximum offering price
per share.......................................... $10.46/$10.57 $11.18/$11.29
------------- -------------
Shares outstanding................................... 31 747
------------- -------------
Net Assets........................................... $ 321 $ 8,357
------------- -------------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... $10.50/$10.99 $11.21/$11.74
------------- -------------
Shares outstanding................................... 2,605 2,863
------------- -------------
Net Assets........................................... $ 27,346 $ 32,101
------------- -------------
CLASS H: Net asset value per share.......................... $ 10.49 $ 11.18
------------- -------------
Shares outstanding................................... 11 58
------------- -------------
Net Assets........................................... $ 116 $ 650
------------- -------------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... $10.47/$10.96 $11.19/$11.72
------------- -------------
Shares outstanding................................... 264 687
------------- -------------
Net Assets........................................... $ 2,765 $ 7,687
------------- -------------
CLASS M: Net asset value per share.......................... $ 10.48 $ 11.18
------------- -------------
Shares outstanding.................................. 20 125
------------- -------------
Net Assets.......................................... $ 206 $ 1,397
------------- -------------
CLASS N: Net asset value per share.......................... $ 10.49 $ 11.16
------------- -------------
Shares outstanding................................... 20 49
------------- -------------
Net Assets........................................... $ 214 $ 547
------------- -------------
CLASS Y: Net asset value per share.......................... $ 10.44 $ 11.20
------------- -------------
Shares outstanding................................... @@ @@
------------- -------------
Net Assets........................................... $ 1 $ 1
------------- -------------
CLASS Z: Net asset value per share.......................... -- --
------------- -------------
Shares outstanding................................... -- --
------------- -------------
Net Assets........................................... -- --
------------- -------------
@ Cost of securities........................................ $ 32,331 $ 85,693
------------- -------------
@ Market value of securities on loan........................ $ -- $ --
------------- -------------
# Cost of foreign currency on deposit with custodian....... $ -- $ --
------------- -------------
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
184
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE TOTAL RETURN U.S. GOVERNMENT VALUE OPPORTUNITIES
NEW YORK FUND BOND FUND SECURITIES FUND VALUE FUND FUND
------------- ------------- --------------- ------------- -------------------
$ 13,542 $ 661,264 $ 277,331 $ 100,850 $ 88,396
355 27 -- 15 1
-- 906 -- -- --
-- -- -- -- @@
-- 43,337 11 375 1,935
@@ 1,280 331 413 334
194 5,015 2,639 164 122
-- -- -- -- --
3 35 48 21 79
------------- ------------- ------------- ------------- -------------
14,094 711,864 280,360 101,838 90,867
------------- ------------- ------------- ------------- -------------
-- 160 -- -- --
-- -- -- -- --
-- 76,828 18,945 -- 1,088
-- 52,058 -- 3,637 1,885
-- 844 391 150 30
2 47 177 -- --
1 61 31 13 14
1 44 12 6 7
-- -- -- -- --
8 194 55 28 21
-- -- -- -- @@
------------- ------------- ------------- ------------- -------------
12 130,236 19,611 3,834 3,045
------------- ------------- ------------- ------------- -------------
$ 14,082 $ 581,628 $ 260,749 $ 98,004 $ 87,822
============= ============= ============= ============= =============
$ 13,561 $ 568,199 $ 266,674 $ 95,630 $ 81,991
3 920 44 377 --
22 2,018 (10,065) (5,094) (4,286)
496 10,491 4,096 7,091 10,117
------------- ------------- ------------- ------------- -------------
$ 14,082 $ 581,628 $ 260,749 $ 98,004 $ 87,822
============= ============= ============= ============= =============
300,000 300,000 19,250,000 300,000 21,000,000
------------- ------------- ------------- ------------- -------------
$ 0.001 $ 0.001 $ 0.0001 $ 0.001 $ 0.0001
------------- ------------- ------------- ------------- -------------
$10.42/$10.91 $10.95/$11.47 $ 9.65/$10.10 $ 9.71/$10.28 $14.06/$14.88
------------- ------------- ------------- ------------- -------------
1,012 27,287 5,531 5,852 1,750
------------- ------------- ------------- ------------- -------------
$ 10,541 $ 298,903 $ 53,401 $ 56,845 $ 24,601
------------- ------------- ------------- ------------- -------------
$ 10.42 $ 10.90 $ 9.62 $ 9.60 $ 13.24
------------- ------------- ------------- ------------- -------------
150 8,426 2,726 932 431
------------- ------------- ------------- ------------- -------------
$ 1,568 $ 91,861 $ 26,218 $ 8,948 $ 5,709
------------- ------------- ------------- ------------- -------------
$10.42/$10.53 $10.97/$11.08 $ 9.61/$9.71 $ 9.60/$9.70 $13.25/$13.38
------------- ------------- ------------- ------------- -------------
189 8,158 1,449 1,129 424
------------- ------------- ------------- ------------- -------------
$ 1,973 $ 89,504 $ 13,926 $ 10,838 $ 5,627
------------- ------------- ------------- ------------- -------------
-- -- $ 9.64/$10.09 -- --
------------- ------------- ------------- ------------- -------------
-- -- 12,437 -- --
------------- ------------- ------------- ------------- -------------
-- -- $ 119,923 -- --
------------- ------------- ------------- ------------- -------------
-- -- $ 9.61 -- $ 13.25
------------- ------------- ------------- ------------- -------------
-- -- 407 -- 439
------------- ------------- ------------- ------------- -------------
-- -- $ 3,914 -- $ 5,815
------------- ------------- ------------- ------------- -------------
-- -- $ 9.65/$10.10 -- $14.06/$14.76
------------- ------------- ------------- ------------- -------------
-- -- 4,002 -- 1,827
------------- ------------- ------------- ------------- -------------
-- -- $ 38,613 -- $ 25,687
------------- ------------- ------------- ------------- -------------
-- -- $ 9.61 -- $ 13.24
------------- ------------- ------------- ------------- -------------
-- -- 385 -- 615
------------- ------------- ------------- ------------- -------------
-- -- $ 3,697 -- $ 8,139
------------- ------------- ------------- ------------- -------------
-- -- $ 9.60 -- $ 13.26
------------- ------------- ------------- ------------- -------------
-- -- 110 -- 162
------------- ------------- ------------- ------------- -------------
-- -- $ 1,056 -- $ 2,143
------------- ------------- ------------- ------------- -------------
-- $ 11.06 $ 9.66 $ 9.71 $ 14.17
------------- ------------- ------------- ------------- -------------
-- 9,161 @@ 2,200 713
------------- ------------- ------------- ------------- -------------
-- $ 101,360 $ 1 $ 21,373 $ 10,101
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
$ 13,046 $ 650,618 $ 273,235 $ 93,759 $ 78,279
------------- ------------- ------------- ------------- -------------
$ -- $ 75,251 $ 18,480 $ -- $ 1,014
------------- ------------- ------------- ------------- -------------
$ -- $ 910 $ -- $ -- $ --
------------- ------------- ------------- ------------- -------------
</Table>
185
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD
THE HARTFORD AGGRESSIVE GROWTH
ADVISERS FUND ALLOCATION FUND*
------------- -----------------
INVESTMENT INCOME:
Dividends................................................. $28,718 $ 3
Interest.................................................. 34,309 --
Securities lending........................................ 196 --
Less: Foreign tax withheld................................ -- --
------- ----
Total investment income, net............................ 63,223 3
------- ----
EXPENSES:
Investment management and advisory fees................... 16,540 7
Transfer agent fees....................................... 5,547 10
Distribution fees
Class A................................................. 4,754 5
Class B................................................. 5,900 6
Class C................................................. 4,037 8
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 33 @@
Accounting services....................................... 518 @@
Registration and filing fees.............................. 338 @@
Board of Directors' fees.................................. 30 @@
Other expenses............................................ 778 3
------- ----
Total expenses (before waivers and fees paid
indirectly)............................................ 38,475 39
Expense waivers........................................... -- (8)
Fees paid indirectly...................................... (166) --
------- ----
Total waivers and fees paid indirectly.................. (166) (8)
------- ----
Total expenses, net..................................... 38,309 31
------- ----
Net investment income (loss).............................. 24,914 (28)
------- ----
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 62,070 (7)
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ 1 --
------- ----
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:........................ 62,071 (7)
------- ----
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 487 862
Net unrealized appreciation (depreciation) of futures
contracts............................................... (26) --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- --
------- ----
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 461 862
------- ----
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:............................ 62,532 855
------- ----
PAYMENT FROM AFFILIATE (SEE NOTE 3C)........................ 4,979 --
------- ----
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $92,425 $827
======= ====
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
* Commenced operations on May 28, 2004 and only invests in affiliated
investment companies.
The accompanying notes are an integral part of these financial statements.
186
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
BALANCED ALLOCATION CAPITAL APPRECIATION CONSERVATIVE ALLOCATION DISCIPLINED EQUITY DIVIDEND AND EQUITY INCOME
FUND* FUND FUND* FUND GROWTH FUND FUND
------------------- -------------------- ----------------------- ------------------ ------------ -------------
$ 264 $ 74,840 $ 172 $ 6,054 $ 49,080 $ 4,846
-- 4,080 -- 62 1,262 58
-- 262 -- -- 41 --
-- (3,255) -- -- (566) (2)
------ -------- ------ ------- -------- -------
264 75,927 172 6,116 49,817 4,902
------ -------- ------ ------- -------- -------
33 40,218 15 2,824 14,713 1,392
25 16,444 9 1,066 5,237 370
24 10,260 12 768 5,014 397
26 13,292 8 481 2,978 110
43 12,054 17 454 2,649 303
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
1 1,975 1 13 28 32
2 1,206 1 71 457 35
@@ 627 @@ 44 272 7
@@ 65 @@ 4 26 1
3 1,752 2 125 701 60
------ -------- ------ ------- -------- -------
157 97,893 65 5,850 32,075 2,707
(11) -- (5) (121) -- (1,447)
-- (1,974) -- (42) (234) (15)
------ -------- ------ ------- -------- -------
(11) (1,974) (5) (163) (234) (1,462)
------ -------- ------ ------- -------- -------
146 95,919 60 5,687 31,841 1,245
------ -------- ------ ------- -------- -------
118 (19,992) 112 429 17,976 3,657
------ -------- ------ ------- -------- -------
@@ 609,212 @@ 20,739 81,633 551
-- -- -- 303 -- --
-- (573) -- -- -- --
------ -------- ------ ------- -------- -------
@@ 608,639 @@ 21,042 81,633 551
------ -------- ------ ------- -------- -------
2,807 214,844 907 (1,725) 149,410 8,171
-- -- -- 91 -- --
-- (4,316) -- -- -- --
------ -------- ------ ------- -------- -------
2,807 210,528 907 (1,634) 149,410 8,171
------ -------- ------ ------- -------- -------
2,807 819,167 907 19,408 231,043 8,722
------ -------- ------ ------- -------- -------
-- -- -- 3 1,109 --
------ -------- ------ ------- -------- -------
$2,925 $799,175 $1,019 $19,840 $250,128 $12,379
====== ======== ====== ======= ======== =======
</Table>
187
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD GLOBAL
FOCUS COMMUNICATIONS
FUND FUND
------------ -------------------
INVESTMENT INCOME:
Dividends................................................. $ 1,625 $ 315
Interest.................................................. 12 15
Securities lending........................................ -- 5
Less: Foreign tax withheld................................ -- (23)
-------- -------
Total investment income, net............................ 1,637 312
-------- -------
EXPENSES:
Investment management and advisory fees................... 1,217 115
Transfer agent fees....................................... 300 57
Distribution fees
Class A................................................. 219 25
Class B................................................. 209 15
Class C................................................. 270 12
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 5 16
Accounting services....................................... 24 2
Registration and filing fees.............................. 16 1
Board of Directors' fees.................................. 2 @@
Other expenses............................................ 42 9
-------- -------
Total expenses (before waivers and fees paid
indirectly)............................................ 2,304 252
Expense waivers........................................... (2) (43)
Fees paid indirectly...................................... (36) (5)
-------- -------
Total waivers and fees paid indirectly.................. (38) (48)
-------- -------
Total expenses, net..................................... 2,266 204
-------- -------
Net investment income (loss).............................. (629) 108
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 13,752 2,478
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ -- (12)
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:........................ 13,752 2,466
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. (10,748) (1,043)
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- 1
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. (10,748) (1,042)
-------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:............................ 3,004 1,424
-------- -------
PAYMENT FROM AFFILIATE (SEE NOTE 3C)........................ 34 --
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 2,409 $ 1,532
======== =======
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
* Commenced operations on May 28, 2004 and only invests in affiliated
investment companies.
The accompanying notes are an integral part of these financial statements.
188
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
GLOBAL FINANCIAL GLOBAL HEALTH GLOBAL LEADERS GLOBAL TECHNOLOGY GROWTH ALLOCATION THE HARTFORD
SERVICES FUND FUND FUND FUND FUND* GROWTH FUND
---------------- ------------- -------------- ----------------- ----------------- ------------
$ 558 $ 2,643 $ 8,151 $ 153 $ 86 $ 3,517
4 95 121 12 -- 241
6 102 300 5 -- 33
(18) (99) (600) (14) -- (5)
------ ------- -------- ------- ------ -------
550 2,741 7,972 156 86 3,786
------ ------- -------- ------- ------ -------
198 2,863 5,633 671 23 5,020
67 1,174 2,691 457 25 1,092
40 481 1,436 105 15 686
31 647 872 141 21 222
25 600 861 166 31 281
-- -- -- -- -- 260
-- -- -- -- -- 798
-- -- -- -- -- 228
-- -- -- -- -- 45
24 32 235 28 1 25
4 57 137 13 1 56
3 33 86 8 1 119
@@ 3 8 1 -- 6
11 92 225 28 3 224
------ ------- -------- ------- ------ -------
403 5,982 12,184 1,618 121 9,062
(38) (389) (152) (301) (16) (251)
(7) (49) (628) (36) -- (179)
------ ------- -------- ------- ------ -------
(45) (438) (780) (337) (16) (430)
------ ------- -------- ------- ------ -------
358 5,544 11,404 1,281 105 8,632
------ ------- -------- ------- ------ -------
192 (2,803) (3,432) (1,125) (19) (4,846)
------ ------- -------- ------- ------ -------
1,137 17,343 96,242 4,353 @@ 14,874
-- -- -- -- -- --
1 4 (38) (7) -- --
------ ------- -------- ------- ------ -------
1,138 17,347 96,204 4,346 @@ 14,874
------ ------- -------- ------- ------ -------
104 6,507 20,958 (7,552) 2,435 25,107
-- -- -- -- -- --
@@ 1 59 @@ -- --
------ ------- -------- ------- ------ -------
104 6,508 21,017 (7,552) 2,435 25,107
------ ------- -------- ------- ------ -------
1,242 23,855 117,221 (3,206) 2,435 39,981
------ ------- -------- ------- ------ -------
-- -- -- -- -- --
------ ------- -------- ------- ------ -------
$1,434 $21,052 $113,789 $(4,331) $2,416 $35,135
====== ======= ======== ======= ====== =======
</Table>
189
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
GROWTH OPPORTUNITIES HIGH YIELD
FUND FUND
-------------------- ------------
INVESTMENT INCOME:
Dividends................................................. $ 2,858 $ 39
Interest.................................................. 112 27,943
Securities lending........................................ 184 98
Less: Foreign tax withheld................................ (41) --
------- -------
Total investment income, net............................ 3,113 28,080
------- -------
EXPENSES:
Investment management and advisory fees................... 5,266 2,856
Transfer agent fees....................................... 234 811
Distribution fees
Class A................................................. 123 700
Class B................................................. 87 693
Class C................................................. 98 758
Class H................................................. 433 --
Class L................................................. 1,306 --
Class M................................................. 239 --
Class N................................................. 50 --
Custodian fees............................................ 71 31
Accounting services....................................... 12 76
Registration and filing fees.............................. 95 53
Board of Directors' fees.................................. 8 4
Other expenses............................................ 256 126
------- -------
Total expenses (before waivers and fees paid
indirectly)............................................ 8,278 6,108
Expense waivers........................................... (56) --
Fees paid indirectly...................................... (321) (3)
------- -------
Total waivers and fees paid indirectly.................. (377) (3)
------- -------
Total expenses, net..................................... 7,901 6,105
------- -------
Net investment income (loss).............................. (4,788) 21,975
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 74,369 1,270
Net realized gain (loss) on futures contracts............. -- (433)
Net realized gain (loss) on foreign currency
transactions............................................ 3 423
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:........................ 74,372 1,260
------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 866 9,748
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- (186)
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- (154)
------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 866 9,408
------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:............................ 75,238 10,668
------- -------
PAYMENT FROM AFFILIATE (See Note 3c)........................ -- 82
------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $70,450 $32,725
======= =======
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
* Commenced operations on May 28, 2004 and only invests in affiliated
investment companies.
The accompanying notes are an integral part of these financial statements.
190
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD
THE HARTFORD THE HARTFORD INTERNATIONAL INTERNATIONAL INTERNATIONAL
INCOME ALLOCATION THE HARTFORD INFLATION PLUS CAPITAL APPRECIATION OPPORTUNITIES SMALL COMPANY
FUND* INCOME FUND FUND FUND FUND FUND
----------------- ------------ -------------- -------------------- ------------- -------------
$ -- $ -- $ -- $ 667 $ 2,739 $ 1,622
84 1,909 23,336 44 -- 23
-- -- -- 31 102 71
-- @@ -- (79) (413) (148)
---- ------ ------- ------ ------- -------
84 1,909 23,336 663 2,428 1,568
---- ------ ------- ------ ------- -------
4 206 3,443 461 1,075 637
2 56 595 145 658 103
3 73 723 90 249 59
2 47 876 48 226 30
8 52 2,510 69 159 73
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
1 7 8 110 141 197
@@ 7 117 9 25 13
@@ 5 65 3 15 7
@@ @@ 6 @@ 1 1
3 15 172 16 42 24
---- ------ ------- ------ ------- -------
23 468 8,515 951 2,591 1,144
(4) (55) (320) (124) (261) (169)
-- @@ (1) (36) (67) (35)
---- ------ ------- ------ ------- -------
(4) (55) (321) (160) (328) (204)
---- ------ ------- ------ ------- -------
19 413 8,194 791 2,263 940
---- ------ ------- ------ ------- -------
65 1,496 15,142 (128) 165 628
---- ------ ------- ------ ------- -------
1 191 3,921 (656) 17,796 8,362
-- -- -- -- -- --
-- 81 -- (15) (77) (15)
---- ------ ------- ------ ------- -------
1 272 3,921 (671) 17,719 8,347
---- ------ ------- ------ ------- -------
89 404 15,179 9,434 263 (3,086)
-- -- -- -- -- --
-- (12) -- 4 (94) (380)
---- ------ ------- ------ ------- -------
89 392 15,179 9,438 169 (3,466)
---- ------ ------- ------ ------- -------
90 664 19,100 8,767 17,888 4,881
---- ------ ------- ------ ------- -------
-- -- -- -- -- --
---- ------ ------- ------ ------- -------
$155 $2,160 $34,242 $8,639 $18,053 $ 5,509
==== ====== ======= ====== ======= =======
</Table>
191
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
MIDCAP MIDCAP VALUE
FUND FUND
------------ ------------
INVESTMENT INCOME:
Dividends................................................. $ 23,553 $ 3,884
Interest.................................................. 308 89
Securities lending........................................ 176 38
Less: Foreign tax withheld................................ (85) (49)
-------- -------
Total investment income, net............................ 23,952 3,962
-------- -------
EXPENSES:
Investment management and advisory fees................... 18,713 3,072
Transfer agent fees....................................... 6,350 1,218
Distribution fees
Class A................................................. 4,541 729
Class B................................................. 4,362 548
Class C................................................. 4,880 631
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 70 55
Accounting services....................................... 506 72
Registration and filing fees.............................. 333 37
Board of Directors' fees.................................. 29 4
Other expenses............................................ 827 117
-------- -------
Total expenses (before waivers and fees paid
indirectly)............................................ 40,611 6,483
Expense waivers........................................... -- (413)
Fees paid indirectly...................................... (339) (69)
-------- -------
Total waivers and fees paid indirectly.................. (339) (482)
-------- -------
Total expenses, net..................................... 40,272 6,001
-------- -------
Net investment income (loss).............................. (16,320) (2,039)
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 184,503 33,388
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ (1) 10
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:........................ 184,502 33,398
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 60,613 9,523
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.............................................. 60,619 9,523
-------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:............................ 245,121 42,921
-------- -------
PAYMENT FROM AFFILIATE (SEE NOTE 3C)........................ -- --
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $228,801 $40,882
======== =======
</Table>
(a) The number includes $222 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.
192
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
MONEY MARKET SHORT DURATION SMALL COMPANY SMALLCAP THE HARTFORD TAX-FREE
FUND FUND FUND GROWTH FUND STOCK FUND CALIFORNIA FUND
------------ -------------- ------------- --------------- ------------ ---------------
$ -- $ -- $ 571 $ 1,239 $27,726 $ --
3,842 3,263 84 33 177 780
-- -- 47 55 10 --
-- -- (3) -- -- --
------ ------ -------- -------- ------- ------
3,842 3,263 699 1,327 27,913 780
------ ------ -------- -------- ------- ------
1,514 461 2,425 1,877 12,395 90
968 108 1,120 245 5,942 7
662 105 488 100 3,059 44
528 112 610 99 3,757 10
270 334 535 82 2,968 6
-- -- -- 195 -- --
-- -- -- 514 -- --
-- -- -- 174 -- --
-- -- -- 62 -- --
7 8 44 23 21 4
61 17 57 11 351 3
47 13 34 72 232 7
3 1 3 3 22 @@
90 30 100 86 534 10
------ ------ -------- -------- ------- ------
4,150 1,189 5,416 3,543 29,281 181
(926)(a) (95) (513) (168) -- (12)
(1) @@ (156) (21) (134) (3)
------ ------ -------- -------- ------- ------
(927) (95) (669) (189) (134) (15)
------ ------ -------- -------- ------- ------
3,223 1,094 4,747 3,354 29,147 166
------ ------ -------- -------- ------- ------
619 2,169 (4,048) (2,027) (1,234) 614
------ ------ -------- -------- ------- ------
2 (295) 31,353 27,838 13,770 32
-- -- -- 57 -- --
-- -- (3) -- 1 --
------ ------ -------- -------- ------- ------
2 (295) 31,350 27,895 13,771 32
------ ------ -------- -------- ------- ------
-- (187) (13,516) (12,111) 43,675 526
-- -- -- 7 -- --
-- -- 4 -- -- --
------ ------ -------- -------- ------- ------
-- (187) (13,512) (12,104) 43,675 526
------ ------ -------- -------- ------- ------
2 (482) 17,838 15,791 57,446 558
------ ------ -------- -------- ------- ------
-- -- -- -- -- --
------ ------ -------- -------- ------- ------
$ 621 $1,687 $ 13,790 $ 13,764 $56,212 $1,172
====== ====== ======== ======== ======= ======
</Table>
193
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
TAX-FREE TAX-FREE
MINNESOTA FUND NATIONAL FUND
-------------- -------------
INVESTMENT INCOME:
Dividends................................................. $ -- $ --
Interest.................................................. 1,781 4,590
Securities lending........................................ -- --
Less: Foreign tax withheld................................ -- --
------ ------
Total investment income, net............................ 1,781 4,590
------ ------
EXPENSES:
Investment management and advisory fees................... 265 679
Transfer agent fees....................................... 7 38
Distribution fees
Class A................................................. 12 95
Class B................................................. 6 66
Class C................................................. 4 82
Class H................................................. 1 14
Class L................................................. 7 19
Class M................................................. 3 14
Class N................................................. 2 6
Custodian fees............................................ 4 6
Accounting services....................................... 1 9
Registration and filing fees.............................. 15 82
Board of Directors' fees.................................. @@ 1
Other expenses............................................ 17 36
------ ------
Total expenses (before waivers and fees paid
indirectly)............................................. 344 1,147
Expense waivers........................................... (18) (109)
Fees paid indirectly...................................... (1) @@
------ ------
Total waivers and fees paid indirectly.................... (19) (109)
------ ------
Total expenses, net....................................... 325 1,038
------ ------
Net investment income (loss).............................. 1,456 3,552
------ ------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 571 480
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ -- --
------ ------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:........................ 571 480
------ ------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 256 1,916
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- --
------ ------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 256 1,916
------ ------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:............................ 827 2,396
------ ------
PAYMENT FROM AFFILIATE (SEE NOTE 3C)........................ -- --
------ ------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $2,283 $5,948
====== ======
</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.
194
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
TAX-FREE TOTAL RETURN U.S. GOVERNMENT THE HARTFORD VALUE OPPORTUNITIES
NEW YORK FUND BOND FUND SECURITIES FUND VALUE FUND FUND
------------- ------------ --------------- ------------ -------------------
$ -- $ 16 $ -- $1,633 $ 991
576 23,394 15,063 23 15
-- 109 11 2 10
-- -- -- -- (22)
---- ------- ------- ------ ------
576 23,519 15,074 1,658 994
---- ------- ------- ------ ------
69 3,562 2,045 603 676
3 1,174 280 217 88
29 872 174 158 51
13 971 306 85 41
16 993 183 111 38
-- -- 49 -- 64
-- -- 101 -- 61
-- -- 41 -- 83
-- -- 12 21
4 36 12 11 18
3 111 21 15 5
7 79 96 8 67
@@ 6 4 1 1
8 165 98 27 28
---- ------- ------- ------ ------
152 7,969 3,422 1,236 1,242
(16) (77) (188) (21) (99)
(1) (8) -- (8) (7)
---- ------- ------- ------ ------
(17) (85) (188) (29) (106)
---- ------- ------- ------ ------
135 7,884 3,234 1,207 1,136
---- ------- ------- ------ ------
441 15,635 11,840 451 (142)
---- ------- ------- ------ ------
22 3,593 (3,335) 2,286 6,094
-- -- -- -- --
-- 655 -- -- 1
---- ------- ------- ------ ------
22 4,248 (3,335) 2,286 6,095
---- ------- ------- ------ ------
422 6,033 2,969 3,886 2,953
-- -- -- -- --
-- 999 -- -- @@
---- ------- ------- ------ ------
422 7,032 2,969 3,886 2,953
---- ------- ------- ------ ------
444 11,280 (366) 6,172 9,048
---- ------- ------- ------ ------
-- 243 -- -- --
---- ------- ------- ------ ------
$885 $27,158 $11,474 $6,623 $8,906
==== ======= ======= ====== ======
</Table>
195
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 ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ 24,914 $ 26,995
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 62,071 (122,548)
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 461 387,775
Payment from affiliate.................................... 4,979 --
---------- ----------
Net increase (decrease) in net assets resulting from
operations.............................................. 92,425 292,222
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (19,144) (18,988)
Class B................................................. (2,860) (4,119)
Class C................................................. (2,274) (3,387)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (205) (119)
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..................................... (24,483) (26,613)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 29,118 71,427
Class B................................................. (59,114) (39,062)
Class C................................................. (77,869) (47,453)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 4,708 3,954
Class Z................................................. -- --
---------- ----------
Net increase (decrease) from capital share transactions... (103,157) (11,134)
---------- ----------
Net increase (decrease) in net assets..................... (35,215) 254,475
NET ASSETS:
Beginning of period....................................... 2,494,276 2,239,801
---------- ----------
End of period............................................. $2,459,061 $2,494,276
========== ==========
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ 7,039 $ 1,671
========== ==========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
* Commencement of operations.
The accompanying notes are an integral part of these financial statements.
196
- --------------------------------------------------------------------------------
<Table>
<Caption>
AGGRESSIVE GROWTH ALLOCATION FUND BALANCED ALLOCATION FUND CAPITAL APPRECIATION FUND
--------------------------------- ------------------------ ---------------------------------------
FOR THE PERIOD FOR THE PERIOD
MAY 28, 2004* MAY 28, 2004*
THROUGH THROUGH FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2004 OCTOBER 31, 2004 OCTOBER 31, 2003
---------------- ---------------- ------------------ ------------------
$ (28) $ 118 $ (19,992) $ (16,601)
(7) @@ 608,639 (86,039)
862 2,807 210,528 1,077,398
-- -- -- --
------- -------- ---------- ----------
827 2,925 799,175 974,758
------- -------- ---------- ----------
-- (71) -- --
-- (2) -- --
-- (4) -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
------- -------- ---------- ----------
-- (77) -- --
------- -------- ---------- ----------
11,962 65,655 1,397,295 149,541
4,350 18,392 112,210 7,721
5,232 29,653 207,155 32,787
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- 57,278 13,194
-- -- -- --
------- -------- ---------- ----------
21,544 113,700 1,773,938 203,243
------- -------- ---------- ----------
22,371 116,548 2,573,113 1,178,001
-- -- 4,527,685 3,349,684
------- -------- ---------- ----------
$22,371 $116,548 $7,100,798 $4,527,685
======= ======== ========== ==========
$ -- $ 42 $ 4,579 $ 58
======= ======== ========== ==========
</Table>
197
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
CONSERVATIVE ALLOCATION FUND
----------------------------
FOR THE PERIOD
MAY 28, 2004*
THROUGH
OCTOBER 31, 2004
----------------
OPERATIONS:
Net investment income (loss).............................. $ 112
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... @@
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 907
Payment from affiliate.................................... --
-------
Net increase (decrease) in net assets resulting from
operations.............................................. 1,019
-------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (55)
Class B................................................. (4)
Class C................................................. (8)
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..................................... (67)
-------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 33,293
Class B................................................. 4,901
Class C................................................. 10,575
Class E................................................. --
Class H................................................. --
Class L................................................. --
Class M................................................. --
Class N................................................. --
Class Y................................................. --
Class Z................................................. --
-------
Net increase (decrease) from capital share transactions... 48,769
-------
Net increase (decrease) in net assets..................... 49,721
NET ASSETS:
Beginning of period....................................... --
-------
End of period............................................. $49,721
=======
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ 45
=======
</Table>
* Commencement of operations.
** Included in these amounts was 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.
198
- --------------------------------------------------------------------------------
<Table>
<Caption>
DISCIPLINED EQUITY FUND DIVIDEND AND GROWTH FUND EQUITY INCOME FUND
---------------------------------------- --------------------------------------- -------------------------------------
FOR THE PERIOD
AUGUST 28, 2003
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED THROUGH
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------- ------------------ ------------------ ------------------ ------------------ ----------------
$ 429 $ 154 $ 17,976 $ 10,232 $ 3,657 $ 50
21,042 (26,818) 81,633 (46,900) 551 12
(1,634) 81,279 149,410 290,474 8,171 646
3 -- 1,109 -- -- --
-------- -------- ---------- ---------- -------- -------
19,840 54,615 250,128 253,806 12,379 708
-------- -------- ---------- ---------- -------- -------
(151) -- (14,072) (9,066)** (2,580) --
-- -- (350) (435)** (131) --
-- -- (600) (586)** (381) --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(3) -- (724) (434)** (4) --
-- -- -- --
-- -- -- -- (9) --
-- -- -- -- (1) --
-- -- -- -- (2) --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------- -------- ---------- ---------- -------- -------
(154) -- (15,746) (10,521) (3,108) --
-------- -------- ---------- ---------- -------- -------
(17,298) (26,437) 370,976 317,247 177,942 26,127
(5,801) (3,043) 30,946 36,875 15,457 2,376
(7,637) (5,146) 19,924 34,556 34,946 7,502
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
18,654 (166) 21,352 21,916 253 100
-- -- -- -- -- --
-------- -------- ---------- ---------- -------- -------
(12,082) (34,792) 443,198 410,594 228,598 36,105
-------- -------- ---------- ---------- -------- -------
7,604 19,823 677,580 653,879 237,869 36,813
338,514 318,691 1,827,293 1,173,414 36,813 --
-------- -------- ---------- ---------- -------- -------
$346,118 $338,514 $2,504,873 $1,827,293 $274,682 $36,813
======== ======== ========== ========== ======== =======
$ 391 $ 154 $ 3,070 $ -- $ 613 $ 57
======== ======== ========== ========== ======== =======
</Table>
199
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 YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ (629) $ (638)
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 13,752 (14,697)
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... (10,748) 37,235
Payment from affiliate.................................... 34 --
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 2,409 21,900
-------- --------
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................................................. (4,332) (9,612)
Class B................................................. (2,823) (1,556)
Class C................................................. (3,743) (3,523)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 90 78
Class Z................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... (10,808) (14,613)
-------- --------
Net increase (decrease) in net assets..................... (8,399) 7,287
NET ASSETS:
Beginning of period....................................... 118,937 111,650
-------- --------
End of period............................................. $110,538 $118,937
======== ========
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.
200
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL COMMUNICATIONS FUND GLOBAL FINANCIAL SERVICES FUND GLOBAL HEALTH FUND
--------------------------------------- --------------------------------------- ---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
$ 108 $ (17) $ 192 $ 128 $ (2,803) $ (1,913)
2,466 (454) 1,138 (493) 17,347 4,003
(1,042) 3,197 104 3,897 6,508 40,508
-- -- -- -- -- --
------- ------- ------- ------- -------- --------
1,532 2,726 1,434 3,532 21,052 42,598
------- ------- ------- ------- -------- --------
-- -- (112) (45) -- --
-- -- (8) -- -- --
-- -- (6) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- (7) (13) -- --
-- -- -- -- -- --
-- -- -- -- (595) (2,668)
-- -- -- -- (269) (1,215)
-- -- -- -- (246) (1,151)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- (5) (23)
-- -- -- -- -- --
------- ------- ------- ------- -------- --------
-- -- (133) (58) (1,115) (5,057)
------- ------- ------- ------- -------- --------
1,319 1,163 (680) 827 32,756 4,398
(254) 304 (822) 323 5,182 1,797
(140) 222 (887) 151 5,712 488
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(573) 19 (968) (142) 100 22
-- -- -- -- -- --
------- ------- ------- ------- -------- --------
352 1,708 (3,357) 1,159 43,750 6,705
------- ------- ------- ------- -------- --------
1,884 4,434 (2,056) 4,633 63,687 44,246
10,003 5,569 21,110 16,477 235,709 191,463
------- ------- ------- ------- -------- --------
$11,887 $10,003 $19,054 $21,110 $299,396 $235,709
======= ======= ======= ======= ======== ========
$ 94 $ -- $ 185 $ 130 $ -- $ --
======= ======= ======= ======= ======== ========
</Table>
201
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 LEADERS FUND
---------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ (3,432) $ (2,459)
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 96,204 72,742
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 21,017 52,485
Payment from affiliate.................................... -- --
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 113,789 122,768
-------- --------
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................................................. (79,662) 21,429
Class B................................................. (2,281) (6,606)
Class C................................................. (4,087) (12,415)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 33,863 9,675
Class Z................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... (52,167) 12,083
-------- --------
Net increase (decrease) in net assets..................... 61,622 134,851
NET ASSETS:
Beginning of period....................................... 640,879 506,028
-------- --------
End of period............................................. $702,501 $640,879
======== ========
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ 1 $ (32)
======== ========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
* Commencement of operations.
The accompanying notes are an integral part of these financial statements.
202
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL TECHNOLOGY FUND GROWTH ALLOCATION FUND GROWTH FUND
--------------------------------------- ---------------------- ---------------------------------------
FOR THE PERIOD
MAY 28, 2004*
FOR THE YEAR ENDED FOR THE YEAR ENDED THROUGH FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------ ---------------- ------------------ ------------------
$(1,125) $ (739) $ (19) $ (4,846) $ (1,780)
4,346 6,749 @@ 14,874 4,681
(7,552) 15,472 2,435 25,107 90,071
-- -- -- -- --
------- ------- ------- -------- --------
(4,331) 21,482 2,416 35,135 92,972
------- ------- ------- -------- --------
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
------- ------- ------- -------- --------
-- -- -- -- --
------- ------- ------- -------- --------
1,143 3,006 41,921 303,622 59,287
(85) 1,130 13,745 20,108 8,512
(1,453) 1,510 20,595 34,841 9,068
-- -- -- -- --
-- -- -- (5,133) (5,061)
-- -- -- (27,881) (29,332)
-- -- -- (3,425) (3,081)
-- -- -- (412) (877)
421 87 -- 11,595 --
-- -- -- -- --
------- ------- ------- -------- --------
26 5,733 76,261 333,315 38,516
------- ------- ------- -------- --------
(4,305) 27,215 78,677 368,450 131,488
63,778 36,563 -- 467,140 335,652
------- ------- ------- -------- --------
$59,473 $63,778 $78,677 $835,590 $467,140
======= ======= ======= ======== ========
$ -- $ -- $ -- $ -- $ --
======= ======= ======= ======== ========
</Table>
203
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH OPPORTUNITIES FUND
---------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ (4,788) $ (3,530)
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 74,372 70,198
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 866 119,332
Payment from affiliate.................................... -- --
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 70,450 186,000
-------- --------
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................................................. 34,377 11,239
Class B................................................. 6,429 3,007
Class C................................................. 5,973 3,723
Class E................................................. -- --
Class H................................................. (10,101) (7,338)
Class L................................................. (55,147) (45,091)
Class M................................................. (4,250) (2,817)
Class N................................................. (292) (780)
Class Y................................................. 4,589 --
Class Z................................................. (2,794) (4,243)
-------- --------
Net increase (decrease) from capital share transactions... (21,216) (42,300)
-------- --------
Net increase (decrease) in net assets..................... 49,234 143,700
NET ASSETS:
Beginning of period....................................... 651,490 507,790
-------- --------
End of period............................................. $700,724 $651,490
======== ========
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ -- $ (1)
======== ========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
* Commencement of operations.
The accompanying notes are an integral part of these financial statements.
204
- --------------------------------------------------------------------------------
<Table>
<Caption>
HIGH YIELD FUND INCOME ALLOCATION FUND INCOME FUND
--------------------------------------- ---------------------- ---------------------------------------
FOR THE PERIOD
MAY 28, 2004*
FOR THE YEAR ENDED FOR THE YEAR ENDED THROUGH FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------ ---------------- ------------------ ------------------
$ 21,975 $ 20,583 $ 65 $ 1,496 $ 834
1,260 (26,008) 1 272 --
9,408 68,299 89 392 680
82 -- -- -- --
-------- -------- ------- ------- -------
32,725 62,874 155 2,160 1,514
-------- -------- ------- ------- -------
(13,775) (13,219) (41) (1,192) (600)
(3,524) (4,711) (5) (193) (126)
(3,930) (4,648) (18) (215) (131)
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
(183) @@ -- (1) --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-------- -------- ------- ------- -------
(21,412) (22,578) (64) (1,601) (857)
-------- -------- ------- ------- -------
27,020 95,014 10,487 13,357 7,349
(10,205) 18,863 1,681 748 3,615
(8,468) 28,735 4,850 428 3,970
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
16,120 @@ -- 10 --
-- -- -- -- --
-------- -------- ------- ------- -------
24,467 142,612 17,018 14,543 14,934
-------- -------- ------- ------- -------
35,780 182,908 17,109 15,102 15,591
363,639 180,731 -- 25,591 10,000
-------- -------- ------- ------- -------
$399,419 $363,639 $17,109 $40,693 $25,591
======== ======== ======= ======= =======
$ 362 $ (521) $ 1 $ 17 $ 30
======== ======== ======= ======= =======
</Table>
205
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 YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ 15,142 $ 4,335
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 3,921 1,187
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 15,179 3,709
Payment from affiliate.................................... -- --
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 34,242 9,231
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (7,295) (1,950)
Class B................................................. (1,954) (653)
Class C................................................. (5,756) (1,491)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (129) --
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. (560) --
Class B................................................. (264) --
Class C................................................. (627) --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
-------- --------
Total distributions..................................... (16,585) (4,094)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 163,635 132,787
Class B................................................. 37,258 66,087
Class C................................................. 152,377 157,218
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 22,802 --
Class Z................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... 376,072 356,092
-------- --------
Net increase (decrease) in net assets..................... 393,729 361,229
NET ASSETS:
Beginning of period....................................... 371,231 10,002
-------- --------
End of period............................................. $764,960 $371,231
======== ========
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ 293 $ 283
======== ========
</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.
206
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL CAPITAL APPRECIATION FUND INTERNATIONAL OPPORTUNITIES FUND INTERNATIONAL SMALL COMPANY FUND
--------------------------------------- --------------------------------------- ---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
$ (128) $ (48) $ 165 $ 56 $ 628 $ 113
(671) 2,073 17,719 (695) 8,347 3,455
9,438 1,285 169 20,926 (3,466) 4,882
-- -- -- -- -- --
-------- ------- -------- -------- ------- -------
8,639 3,310 18,053 20,287 5,509 8,450
-------- ------- -------- -------- ------- -------
-- (5) (32) -- (5) (10)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- (1) (31) -- (108) (7)
-- -- -- -- -- --
(75) -- -- -- (858) --
(12) -- -- -- (155) --
(14) -- -- -- (240) --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(1) -- -- -- (1,683) --
-- -- -- -- -- --
-------- ------- -------- -------- ------- -------
(102) (6) (63) -- (3,049) (17)
-------- ------- -------- -------- ------- -------
33,843 4,449 6,346 (10,923) 10,982 4,140
6,071 908 (278) (1,535) 1,408 697
9,562 911 (1,224) (1,298) 6,922 1,424
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
26,600 1 (2,608) 505 15,694 20,669
-- -- -- -- -- --
-------- ------- -------- -------- ------- -------
76,076 6,269 2,236 (13,251) 35,006 26,930
-------- ------- -------- -------- ------- -------
84,613 9,573 20,226 7,036 37,466 35,363
16,087 6,514 110,460 103,424 42,715 7,352
-------- ------- -------- -------- ------- -------
$100,700 $16,087 $130,686 $110,460 $80,181 $42,715
======== ======= ======== ======== ======= =======
$ -- $ 1 $ 109 $ 68 $ 584 $ 117
======== ======= ======== ======== ======= =======
</Table>
207
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 FUND
---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ (16,320) $ (14,264)
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 184,502 12,089
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 60,619 511,646
Payment from affiliate.................................... -- --
---------- ----------
Net increase (decrease) in net assets resulting from
operations.............................................. 228,801 509,471
---------- ----------
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................................................. (7,410) 413,840
Class B................................................. (23,848) 63,698
Class C................................................. (36,048) 99,708
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 11,066 39,638
Class Z................................................. -- --
---------- ----------
Net increase (decrease) from capital share transactions... (56,240) 616,884
---------- ----------
Net increase (decrease) in net assets..................... 172,561 1,126,355
NET ASSETS:
Beginning of period....................................... 2,399,867 1,273,512
---------- ----------
End of period............................................. $2,572,428 $2,399,867
========== ==========
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ -- $ (4)
========== ==========
</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.
208
- --------------------------------------------------------------------------------
<Table>
<Caption>
MIDCAP VALUE FUND MONEY MARKET FUND SHORT DURATION FUND
--------------------------------------- --------------------------------------- ---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
$ (2,039) $ (1,113) $ 619 $ 946 $ 2,169 $ 1,276
33,398 1,497 2 8 (295) (221)
9,523 57,080 -- -- (187) 312
-- -- -- -- -- --
-------- -------- -------- --------- -------- -------
40,882 57,464 621 954 1,687 1,367
-------- -------- -------- --------- -------- -------
-- -- (590) (929) (1,024) (646)
-- -- (5) (5) (251) (160)
-- -- (3) (3) (755) (477)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- (21) (17) (150) --
-- -- -- -- -- --
-- -- (2) -- -- --
-- -- @@ -- -- --
-- -- @@ -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- @@ -- -- --
-- -- -- -- -- --
-------- -------- -------- --------- -------- -------
-- -- (621) (954) (2,180) (1,283)
-------- -------- -------- --------- -------- -------
96,898 25,155 (40,757) (56,663) 6,604 24,661
12,047 6,035 (21,896) (31,316) 2,127 9,191
10,552 5,627 (3,329) (35,939) 4,492 29,681
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
2,342 (279) 8,536 (1,653) 31,444 --
-- -- -- -- -- --
-------- -------- -------- --------- -------- -------
121,839 36,538 (57,446) (125,571) 44,667 63,533
-------- -------- -------- --------- -------- -------
162,721 94,002 (57,446) (125,571) 44,174 63,617
247,616 153,614 345,048 470,619 73,619 10,002
-------- -------- -------- --------- -------- -------
$410,337 $247,616 $287,602 $ 345,048 $117,793 $73,619
======== ======== ======== ========= ======== =======
$ -- $ (1) $ -- $ -- $ 17 $ 28
======== ======== ======== ========= ======== =======
</Table>
209
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SMALL COMPANY FUND
---------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ (4,048) $ (2,963)
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 31,350 26,132
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... (13,512) 53,303
Payment from affiliate.................................... -- --
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 13,790 76,472
-------- --------
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................................................. 7,710 4,590
Class B................................................. (2,618) (24)
Class C................................................. (4,938) (1,922)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (265) (534)
Class Z................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... (111) 2,110
-------- --------
Net increase (decrease) in net assets..................... 13,679 78,582
NET ASSETS:
Beginning of period....................................... 266,095 187,513
-------- --------
End of period............................................. $279,774 $266,095
======== ========
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.
210
- --------------------------------------------------------------------------------
<Table>
<Caption>
SMALLCAP GROWTH FUND STOCK FUND TAX-FREE CALIFORNIA FUND
---------------------------------------- --------------------------------------- ---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------- ------------------ ------------------ ------------------ ------------------ ------------------
$ (2,027) $ (1,410) $ (1,234) $ (154) $ 614 $ 443
27,895 (3,965) 13,771 (211,855) 32 (80)
(12,104) 63,633 43,675 472,384 526 (68)
-- -- -- -- -- --
-------- -------- ---------- ---------- ------- -------
13,764 58,258 56,212 260,375 1,172 295
-------- -------- ---------- ---------- ------- -------
-- -- -- -- (590) (367)
-- -- -- -- (33) (48)
-- -- -- -- (19) (35)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------- -------- ---------- ---------- ------- -------
-- -- -- -- (642) (450)
-------- -------- ---------- ---------- ------- -------
23,863 10,372 (58,565) (54,575) 3,606 2,917
4,876 3,446 (43,898) (31,128) (854) 852
4,665 2,486 (65,250) (49,483) 173 242
-- -- -- -- -- --
(4,749) (2,779) -- -- -- --
(6,513) (11,123) -- -- -- --
(2,982) (1,596) -- -- -- --
(397) (588) -- -- -- --
5,474 -- 36,590 3,637 -- --
-- -- -- -- -- --
-------- -------- ---------- ---------- ------- -------
24,237 218 (131,123) (131,549) 2,925 4,011
-------- -------- ---------- ---------- ------- -------
38,001 58,476 (74,911) 128,826 3,455 3,856
186,682 128,206 1,707,868 1,579,042 13,856 10,000
-------- -------- ---------- ---------- ------- -------
$224,683 $186,682 $1,632,957 $1,707,868 $17,311 $13,856
======== ======== ========== ========== ======= =======
$ -- $ -- $ -- $ -- $ 2 $ 30
======== ======== ========== ========== ======= =======
</Table>
211
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE MINNESOTA FUND
---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ 1,456 $ 1,490
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... 571 361
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 256 (193)
Payment from affiliate.................................... -- --
------- -------
Net increase (decrease) in net assets resulting from
operations.............................................. 2,283 1,658
------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (147) (105)
Class B................................................. (17) (16)
Class C................................................. (12) (11)
Class E................................................. (1,147) (1,234)
Class H................................................. (4) (9)
Class L................................................. (107) (117)
Class M................................................. (9) (16)
Class N................................................. (7) (6)
Class Y................................................. @@ @@
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. (99) (11)
Class B................................................. (15) (1)
Class C................................................. (9) (2)
Class E................................................. (720) (158)
Class H................................................. (3) (2)
Class L................................................. (72) (17)
Class M................................................. (8) (3)
Class N................................................. (5) (1)
Class Y................................................. @@ @@
Class Z................................................. -- --
------- -------
Total distributions..................................... (2,381) (1,709)
------- -------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 1,059 1,190
Class B................................................. 112 297
Class C................................................. (90) 112
Class E................................................. (2,361) (1,608)
Class H................................................. (41) (427)
Class L................................................. (150) (415)
Class M................................................. (249) (107)
Class N................................................. 2 9
Class Y................................................. @@ @@
Class Z................................................. -- --
------- -------
Net increase (decrease) from capital share transactions... (1,718) (949)
------- -------
Net increase (decrease) in net assets..................... (1,816) (1,000)
NET ASSETS:
Beginning of period....................................... 37,716 38,716
------- -------
End of period............................................. $35,900 $37,716
======= =======
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ 16 $ 10
======= =======
</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.
212
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE NATIONAL FUND TAX-FREE NEW YORK FUND TOTAL RETURN BOND FUND
---------------------------------------- --------------------------------------- ---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------- ------------------ ------------------ ------------------ ------------------ ------------------
$ 3,552 $ 2,859 $ 441 $ 338 $ 15,635 $ 15,031
480 808 22 89 4,248 25,764
1,916 (694) 422 74 7,032 1,999
-- -- -- -- 243 --
------- ------- ------- ------- -------- --------
5,948 2,973 885 501 27,158 42,794
------- ------- ------- ------- -------- --------
(1,286) (656) (375) (286) (9,501) (11,495)
(218) (170) (40) (28) (2,503) (4,147)
(271) (185) (50) (35) (2,575) (4,443)
(1,379) (1,434) -- -- -- --
(44) (77) -- -- -- --
(300) (279) -- -- -- --
(46) (44) -- -- -- --
(19) (19) -- -- -- --
@@ -- -- -- (2,548) (2,523)
-- -- -- -- -- --
(409) (282) (69) -- (9,077) (2,184)
(98) (85) (8) -- (3,538) (983)
(119) (72) (12) -- (3,675) (1,069)
(500) (886) -- -- -- --
(21) (65) -- -- -- --
(113) (166) -- -- -- --
(19) (35) -- -- -- --
(8) (13) -- -- -- --
@@ -- -- -- (2,000) (393)
-- -- -- -- -- --
------- ------- ------- ------- -------- --------
(4,850) (4,468) (554) (349) (35,417) (27,237)
------- ------- ------- ------- -------- --------
13,426 9,628 1,688 480 34,420 46,299
(433) 2,940 479 36 (12,343) 4,755
648 4,570 538 378 (18,887) (859)
(2,339) (4,737) -- -- -- --
(1,112) (1,094) -- -- -- --
135 234 -- -- -- --
146 (287) -- -- -- --
(68) 18 -- -- -- --
@@ -- -- -- 41,626 18,951
-- -- -- -- -- --
------- ------- ------- ------- -------- --------
10,403 11,272 2,705 894 44,816 69,146
------- ------- ------- ------- -------- --------
11,501 9,777 3,036 1,046 36,557 84,703
80,685 70,908 11,046 10,000 545,071 460,368
------- ------- ------- ------- -------- --------
$92,186 $80,685 $14,082 $11,046 $581,628 $545,071
======= ======= ======= ======= ======== ========
$ 21 $ 32 $ 3 $ 27 $ 920 $ 219
======= ======= ======= ======= ======== ========
</Table>
213
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
U.S. GOVERNMENT SECURITIES FUND
---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
------------------ ------------------
OPERATIONS:
Net investment income (loss).............................. $ 11,840 $ 15,586
Net realized gain (loss) on investments, futures contracts
and foreign currency transactions....................... (3,335) (42)
Net unrealized appreciation (depreciation) of investments,
futures contracts and foreign currency transactions..... 2,969 (7,693)
Payment from affiliate.................................... -- --
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 11,474 7,851
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (2,410) (3,401)
Class B................................................. (1,059) (1,645)
Class C................................................. (628) (1,473)
Class E................................................. (5,830) (6,861)
Class H................................................. (175) (285)
Class L................................................. (1,761) (2,045)
Class M................................................. (147) (213)
Class N................................................. (42) (58)
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..................................... (12,052) (15,981)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. (11,823) (8,185)
Class B................................................. (11,914) 104
Class C................................................. (12,661) (13,021)
Class E................................................. (15,784) (17,167)
Class H................................................. (2,359) (2,903)
Class L................................................. (4,504) (4,907)
Class M................................................. (887) (1,961)
Class N................................................. (330) (300)
Class Y................................................. @@ @@
Class Z................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... (60,262) (48,340)
-------- --------
Net increase (decrease) in net assets..................... (60,840) (56,470)
NET ASSETS:
Beginning of period....................................... 321,589 378,059
-------- --------
End of period............................................. $260,749 $321,589
======== ========
Accumulated undistributed (distribution in excess of) net
investment income....................................... $ 44 $ 1
======== ========
</Table>
* Included in these amounts was 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.
214
- --------------------------------------------------------------------------------
<Table>
<Caption>
VALUE FUND VALUE OPPORTUNITIES FUND
---------------------------------------- ---------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
------------------- ------------------ ------------------ ------------------
$ 451 $ 394 $ (142) $ (160)
2,286 (3,212) 6,095 (861)
3,886 11,241 2,953 12,036
-- -- -- --
------- ------- ------- -------
6,623 8,423 8,906 11,015
------- ------- ------- -------
(373) (236) -- --
(14) -- -- --
(19) -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
@@ (3) -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
------- ------- ------- -------
(406) (239) -- --
------- ------- ------- -------
10,636 6,481 16,891 2,347
990 1,084 3,329 1,168
(285) (431) 3,625 960
-- -- -- --
-- -- (1,631) (678)
-- -- (532) (2,566)
-- -- (1,025) (575)
-- -- (137) (225)
20,782 (226) 9,702 --
-- -- -- --
------- ------- ------- -------
32,123 6,908 30,222 431
------- ------- ------- -------
38,340 15,092 39,128 11,446
59,664 44,572 48,694 37,248
------- ------- ------- -------
$98,004 $59,664 $87,822 $48,694
======= ======= ======= =======
$ 377 $ 349 $ -- $ (1)
======= ======= ======= =======
</Table>
215
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2004
(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-nine portfolios (each a "Fund" or together the "Funds"). They are The
Hartford Advisers Fund (Advisers Fund), The Hartford Aggressive Growth
Allocation Fund (Aggressive Growth Allocation Fund), The Hartford Balanced
Allocation Fund (Balanced Allocation Fund), The Hartford Capital
Appreciation Fund (Capital Appreciation Fund), The Hartford Conservative
Allocation Fund (Conservative Allocation Fund), The Hartford Disciplined
Equity Fund (Disciplined Equity Fund), The Hartford Dividend and Growth Fund
(Dividend and Growth Fund), The Hartford Equity Income Fund (Equity Income
Fund), The Hartford Focus Fund (Focus Fund), The Hartford Global
Communications Fund (Global Communications Fund), The Hartford Global
Financial Services Fund (Global Financial Services Fund), The Hartford
Global Health Fund (Global Health Fund), The Hartford Global Leaders Fund
(Global Leaders Fund), The Hartford Global Technology Fund (Global
Technology Fund), The Hartford Growth Allocation Fund (Growth Allocation
Fund), The Hartford Growth Fund (Growth Fund), The Hartford Growth
Opportunities Fund (Growth Opportunities Fund), The Hartford High Yield Fund
(High Yield Fund), The Hartford Income Allocation Fund (Income Allocation
Fund), The Hartford Income Fund (Income Fund), The Hartford Inflation Plus
Fund (Inflation Plus Fund), The Hartford International Capital Appreciation
Fund (International Capital Appreciation Fund), The Hartford International
Opportunities Fund (International Opportunities Fund), The Hartford
International Small Company Fund (International Small Company Fund), The
Hartford MidCap Fund (MidCap Fund), The Hartford MidCap Value Fund (MidCap
Value Fund), The Hartford Money Market Fund (Money Market Fund), The
Hartford Short Duration Fund (Short Duration Fund), The Hartford Small
Company Fund (Small Company Fund), The Hartford SmallCap Growth Fund
(SmallCap Growth Fund), The Hartford Stock Fund (Stock Fund), The Hartford
Tax-Free California Fund (Tax-Free California Fund), The Hartford Tax-Free
Minnesota Fund (Tax-Free Minnesota Fund), The Hartford Tax-Free National
Fund (Tax-Free National Fund), The Hartford Tax-Free New York Fund (Tax-Free
New York Fund), The Hartford Total Return Bond Fund (Total Return Bond
Fund), The Hartford U.S. Government Securities Fund (U.S. Government
Securities Fund), The Hartford Value Fund (Value Fund) and The Hartford
Value Opportunities Fund (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 Focus Fund, Global Communications Fund, Global
Financial Services Fund, Global Health Fund, Global Technology Fund,
Inflation Plus Fund, Tax-Free California Fund and Tax-Free New York Fund,
which are non-diversified.
Class A shares are sold with a front-end sales charge of up to 5.50%, except
for The High Yield Fund, The Income Fund, The Inflation Plus Fund, The
Tax-Free California Fund, The Tax-Free Minnesota Fund, The Tax-Free National
Fund, The Tax-Free New York Fund and the U.S. Government Securities Fund
which have maximum front-end sales charge of up to 4.50%. The Short Duration
Fund has a maximum front-end sales charge of up to 3.00%. 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 1.00% and a contingent deferred sales charge
of up to 1.00%. Effective November 1, 2004, Class C shares will be sold with
a contingent deferred sales charge of up to 1.00% and no front-end sales
charge. 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.
Each of the following Funds ("Allocation Funds"): Aggressive Growth
Allocation Fund, Balanced Allocation Fund, Conservative Allocation Fund,
Growth Allocation Fund and Income Allocation Fund are "Funds of Funds",
which invests the majority of its assets in Class Y of other Hartford mutual
funds: domestic and international equity funds and fixed income funds
(Underlying Funds). The Allocation Funds seek their relative investment
goals through implementation of a strategic asset allocation recommendation
provided by Ibbotson Associates, Inc. ("Ibbotson"). Ibbotson serves as a
consultant to Hartford Investment Financial Services, LLC (HIFSCO) with
respect to selecting the Underlying Funds and the funds' asset allocations
among the Underlying Funds. Each Underlying Fund's accounting policies are
outlined below.
Indemnifications: Under the Funds' organizational documents, its directors
and officers are indemnified against certain liabilities arising out of the
performance of their duties to the Funds. In addition, the Funds' enter into
contracts that contain a variety of indemnifications. The Funds' maximum
exposure under these arrangements is unknown. However, the Funds have not
had prior claims or losses pursuant to these contracts and expect the risk
of loss to be remote.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Funds,
which are in accordance with U.S. 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 sale price or official closing 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. The difference between cost and market value for debt and
equity securities is recorded in the Statement of Operations and
accumulated in net assets.
216
- --------------------------------------------------------------------------------
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 are valued at amortized
cost.
The Funds generally use market prices in valuing portfolio securities,
but may use fair value estimates, 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 foreign
exchange on which the Fund's portfolio securities are principally traded
that is likely to have changed the value of the securities. For
substantially each determination of net asset value per share, the Funds
are supplied with information from an unaffiliated third party with
respect to the fair value of foreign securities. Price movements in
futures contracts and ADRs, and various other indices, may be reviewed
in the course of making a good faith determination of a security's fair
value. 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 without regard to such considerations.
Securities of foreign issuers and non-dollar securities 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.
Investments in open-end mutual funds are valued at the respective net
asset value of each Underlying Fund on the valuation date.
Dividend income is recorded on the ex-dividend date. Interest income,
including amortization of bond premium and discount, is recorded on the
accrual basis. Income and capital gain distributions from underlying
funds are recorded on the ex-dividend date.
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 delay in recovery of loaned securities or even loss of rights in the
collateral should the borrower of the securities fail financially.
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 the Funds' custodian in book entry
or physical form in the custodial account of the Funds. Repurchase
agreements are valued at cost plus accrued interest receivable.
217
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
Certain Funds, together with other investment management companies
having investment advisory agreements with Wellington have a $1,933,545
interest in joint repurchase agreements dated 10/29/04 with ABN AMRO, CS
First Boston, Deutsche Bank, J.P. Morgan Chase and UBS Warburg
Securities due 11/01/04. These joint repurchase agreements are
collateralized as follows:
<Table>
<Caption>
COLLATERAL
BROKER RATE PRINCIPAL VALUE SECURITY TYPE COUPON RATE MATURITY
------ ---- --------- ---------- ------------------- --------------- -----------
ABN AMRO.................... 1.78% $145,000 $148,409 U.S. Treasury Bonds 7.625% - 8.375% 2020 - 2022
U.S. Treasury Note 6.125% 2004
CS First Boston............. 1.86% 375,000 382,502 FFCB 1.45% 2005
FHLB 1.50% - 8.375% 2005 - 2019
FHLMC 1.99% - 2.47% 2004 - 2005
FNMA 2.125% 2006
SLMA Zero Coupon 2022
Deutsche Bank............... 1.86% 300,000 306,004 FFCB 1.85% - 2.35% 2004 - 2007
Deutsche Bank............... 1.77% 40,000 41,241 FHLB 1.50% - 3.50% 2005 - 2010
FMAC 1.97% - 2.26% 2005
FNMA 1.80% - 2.35% 2004 - 2007
U.S Treasury Note 1.77% 2012
J.P. Morgan Chase........... 1.86% 275,000 280,501 FNCL 4.50% - 8.00% 2017 - 2034
UBS Warburg Securities...... 1.86% 750,000 765,004 FHLMC 4.50% - 10.50% 2006 - 2034
UBS Warburg Securities...... 1.77% 48,545 49,696 FNMA 4.50% - 10.50% 2008 - 2034
U.S Treasury
inflation-protected
securities 3.375% 2012
</Table>
The maturity amounts are as follows:
<Table>
<Caption>
MATURITY
FUND AMOUNT
---- --------
Advisers Fund............................................... $ 31,118
Capital Appreciation Fund................................... 446,448
Disciplined Equity Fund..................................... 8,776
Dividend and Growth Fund.................................... 85,430
Equity Income Fund.......................................... 3,845
Focus Fund.................................................. 1,264
Global Communications Fund.................................. 177
Global Financial Services................................... 131
Global Health Fund.......................................... 6,707
Global Leaders Fund......................................... 6,095
Global Technology Fund...................................... 390
Growth Fund................................................. 42,585
Growth Opportunities Fund................................... 3,585
High Yield Fund............................................. 12,328
International Capital Appreciation Fund..................... 7,012
International Opportunities Fund............................ 2,670
International Small Company Fund............................ 3,310
MidCap Fund................................................. 72,598
MidCap Value Fund........................................... 4,199
Stock Fund.................................................. 16,502
Value Fund.................................................. 4,770
Value Opportunities Fund.................................... 1,565
</Table>
218
- --------------------------------------------------------------------------------
Certain Funds, together with other investment management companies
having investment advisory agreements with Hartford Investment have a
$505,436 interest in joint repurchase agreements dated 10/29/04 with BNP
Paribas Securities Corp., Greenwich Capital Markets, State Street Corp.
and UBS Warburg Securities due 11/01/04. These joint repurchase
agreements are collateralized as follows:
<Table>
<Caption>
COLLATERAL
BROKER RATE PRINCIPAL VALUE SECURITY TYPE COUPON RATE MATURITY
------ ---- --------- ---------- ------------------- -------------- -----------
BNP Paribas Securities
Corp. ..................... 1.77% 100,000 102,587 U.S. Treasury Bonds 7.125% 2023
Greenwich Capital Markets.... 1.77% 100,000 102,400 U.S. Treasury Bonds 6.25% 2023
U.S. Treasury Note 4.625% 2006
State Street Corp. .......... 1.75% 105,436 107,860 U.S. Treasury Bonds 7.50% - 9.00% 2016 - 2018
UBS Warburg Securities....... 1.77% 200,000 204,443 U.S. Treasury Bonds 6.25% - 9.00% 2018 - 2030
U.S. Treasury Note 10.375% 2009
</Table>
The maturity amounts are as follows:
<Table>
<Caption>
MATURITY
FUND AMOUNT
---- --------
Income Fund................................................. $ 138
Inflation Plus Fund......................................... 4,048
Short Duration Fund......................................... 5,576
Total Return Bond Fund...................................... 48,435
U.S. Government Securities Fund............................. 2,629
</Table>
The SmallCap Growth Fund had an interest in a $2,398 repurchase
agreement dated 10/29/04 with BNP Paribas Securities Corp., 1.78% due
11/01/04. This repurchase agreement was collateralized by $2,456 U.S.
Treasury Bill 1.91% due 2005.
In addition, the Advisers Fund and the Capital Appreciation Fund hold
collateral for securities out on loan in repurchase agreements. The
Advisers Fund lending agreement was collateralized by an interest in a
$51,423 repurchase agreement dated 10/29/04 with Lehman Brothers, Inc.,
1.85% due 11/1/04. This repurchase agreement was collateralized by
$13,702, in a FNMA 1.975% due 2005 and by $38,750 in a U.S. Treasury
Note Zero coupon strip, 11.75% due 2014. The Capital Appreciation Fund
lending agreement was collateralized by an interest in a $32,714
repurchase agreement dated 10/29/04 with Lehman Brothers, Inc., 1.85%
due 11/1/04. This repurchase agreement was collateralized by $33,372 in
a U.S. Treasury Note Zero coupon strip, 11.75% due 2014.
g) 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 Adviser Fund, the Disciplined Equity Fund, the High Yield Fund and
the SmallCap Growth Fund had outstanding futures contracts as of October
31, 2004.
The premium paid by a Fund for the purchase of a call or put option is
included in the Funds' Statements 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 or greater
than 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
219
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
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. For the year ended October 31, 2004, the Funds had no option
activity.
h) Forward Foreign Currency Contracts -- For the year ended October 31,
2004, the Capital Appreciation Fund, the International Small Company
Fund, the International Opportunities Fund, and the Total Return Bond
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 foreign currency 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. The U.S. dollar value of
forward foreign currency contracts is determined using forward foreign
currency exchange rates supplied by an independent pricing service.
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 securities to increase or
decrease their exposure to different underlying instruments and to gain
exposure to markets that might be difficult to invest in using
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. Distributions from
short-term capital gains are treated as ordinary income distributions
for federal income tax purposes.
The tax character of distributions paid (excluding dividends payable)
for the periods indicated is as follows:
<Table>
<Caption>
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-------------------- --------------------
Advisers Fund
Ordinary income........................................... $24,483 $26,613
Balanced Allocation Fund+
Ordinary income........................................... 77
Conservative Allocation Fund+
Ordinary income........................................... 67
Disciplined Equity Fund
Ordinary income........................................... 154
Dividend and Growth Fund
Ordinary income........................................... 15,746 10,229
Tax return of capital..................................... 293
Equity Income Fund
Ordinary income........................................... 3,108
Global Financial Services Fund
Ordinary income........................................... 133 58
Global Health Fund
Ordinary income........................................... 1,236
Net long-term capital gains............................... 1,115 3,821
High Yield Fund
Ordinary income........................................... 21,004 22,578
Income Allocation Fund+
Ordinary income........................................... 56
Income Fund
Ordinary income........................................... 1,577 857
Inflation Plus Fund
Ordinary income........................................... 16,261 4,094
International Capital Appreciation Fund
Ordinary income........................................... 37 6
Net long-term capital gains............................... 65
International Opportunities Fund
Ordinary income........................................... 63
International Small Company Fund
Ordinary income........................................... 2,967 17
Net long-term capital gains............................... 82
</Table>
220
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-------------------- --------------------
Money Market Fund
Ordinary income........................................... 615 954
Short Duration Fund
Ordinary income........................................... 2,152 1,283
Tax-Free California Fund
Tax exempt income......................................... 636 450
Tax-Free Minnesota Fund
Ordinary income........................................... 13
Tax exempt income......................................... 1,423 1,514
Net long-term capital gains............................... 835 195
Tax-Free National Fund
Ordinary income........................................... 284
Tax exempt income......................................... 3,491 2,864
Net long-term capital gains............................... 924 1,604
Tax-Free New York
Ordinary income........................................... 89
Tax exempt income......................................... 463 349
Total Return Bond Fund
Ordinary income........................................... 34,174 25,854
Net long-term capital gains............................... 1,196 1,383
U.S. Government Securities Fund
Ordinary income........................................... 11,875 15,981
Value Fund
Ordinary income........................................... 406 239
</Table>
+ Commenced operations on May 28, 2004.
As of October 31, 2004, the components of distributable earnings
(deficit) 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.......................... $ 7,039 $ -- $(297,895) $ 91,146 $(199,710)
Aggressive Growth Allocation Fund...... -- -- -- 855 855
Balanced Allocation Fund............... 42 -- -- 2,807 2,849
Capital Appreciation Fund.............. -- -- (178,229) 923,253 745,024
Conservative Allocation Fund........... 45 -- -- 907 952
Disciplined Equity Fund................ 391 -- (110,465) 24,932 (85,142)
Dividend and Growth Fund............... 3,070 26,221 -- 238,617 267,908
Equity Income Fund..................... 1,204 -- -- 8,790 9,994
Focus Fund............................. -- -- (17,269) 57 (17,212)
Global Communications Fund............. 94 -- (5,225) 1,369 (3,762)
Global Financial Services Fund......... 185 -- (1,266) 1,747 666
Global Health Fund..................... -- 15,627 -- 14,136 29,763
Global Leaders Fund.................... -- -- (60,140) 89,063 28,923
Global Technology Fund................. -- -- (60,534) 2,314 (58,220)
Growth Allocation Fund................. -- -- -- 2,435 2,435
Growth Fund............................ -- -- (71,950) 94,100 22,150
Growth Opportunities Fund.............. -- -- (76,626) 109,967 33,341
High Yield Fund........................ 770 -- (85,531) 17,885 (66,876)
Income Allocation Fund................. 10 -- -- 89 99
Income Fund............................ 41 160 -- 1,072 1,273
Inflation Plus Fund.................... 2,519 4,352 -- 16,289 23,160
International Capital Appreciation
Fund................................. -- -- (15) 10,411 10,396
International Opportunities Fund....... -- -- (40,231) 12,510 (27,721)
International Small Company Fund....... 8,316 734 -- 663 9,713
MidCap Fund............................ -- 55,052 -- 463,669 518,721
MidCap Value Fund...................... 10,451 20,592 -- 39,726 70,769
Money Market Fund...................... 6 -- -- -- 6
Short Duration Fund.................... 45 -- (516) 125 (346)
Small Company Fund..................... -- -- (78,175) 29,090 (49,085)
</Table>
221
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOTAL
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED
ORDINARY LONG-TERM CAPITAL GAINS APPRECIATION EARNINGS
INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)** (DEFICIT)***
------------- ------------- ------------- ---------------- ------------
SmallCap Growth Fund................... -- -- (56,442) 11,563 (44,879)
Stock Fund............................. -- -- (558,978) 6,143 (552,835)
Tax-Free California Fund............... 8 -- (48) 458 418
Tax-Free Minnesota Fund................ 42 84 -- 2,145 2,271
Tax-Free National Fund................. 93 79 -- 5,268 5,440
Tax-Free New York Fund................. 5 22 -- 496 523
Total Return Bond Fund................. 2,075 953 -- 10,448 13,476
U.S. Government Securities Fund........ 221 -- (10,065) 4,096 (5,748)
Value Fund............................. 377 -- (4,839) 6,836 2,374
Value Opportunities Fund............... -- -- (4,053) 9,884 5,831
</Table>
* Certain Funds had capital loss carryforwards that are identified in
note 8.
** The differences between book-basis and tax-basis unrealized
appreciation (depreciation) are attributable primarily to the tax
deferral of wash sale losses and the mark to market adjustment for
certain derivatives in accordance with IRC Sec. 1256.
*** The primary difference between book and tax basis accumulated
earnings (deficit) relates to dividends payable to shareholders at
year end.
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 next determined per-share net asset value.
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
Aggressive Growth Allocation Fund, the Capital Appreciation Fund, the
Disciplined Equity 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 Allocation 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 Balanced Allocation Fund, the Conservative Allocation 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 Allocation 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.
Long-term capital gains distributions received from the underlying funds
are distributed to shareholders at least annually, when required. Unless
shareholders specify otherwise, all dividends and distributions will be
automatically reinvested in additional full or fractional shares of each
Fund.
Distributions from net investment income, net realized capital gains and
capital are determined in accordance with federal income tax
regulations, which may differ from U.S. 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) 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 within seven days, at approximately the price used to determine
a Fund's net asset value per share. A Fund may not be able to sell
illiquid securities or other investments when their sub-advisor
considers it desirable to do so or may have to sell such securities or
investments at a price that is lower than the price that could be
obtained if the securities or investments were more liquid. A sale of
illiquid securities or other investments may require more time and may
result in higher dealer discounts and other selling expenses than does
the sale of those that are liquid. Illiquid securities and investments
also may be more difficult to value, due to the unavailability of
reliable market quotations for such securities or investments, and
investments in them may have an adverse impact on net asset value. Each
Fund may also purchase certain restricted securities, commonly known as
Rule 144A securities, that can be resold to qualifying institutions and
which may be determined to be liquid pursuant to policies and guidelines
established by the Funds' Board of Directors.
m) 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 take place beyond the customary settlement period.
During this period, such securities are subject to market
222
- --------------------------------------------------------------------------------
fluctuations and the Fund identifies securities as segregated in its
records with value at least equal to the amount of the commitment. As of
October 31, 2004 the Funds entered into outstanding when-issued or
forward commitments as follows:
<Table>
<Caption>
FUND COST
---- --------
Advisers Fund............................................... $12,000
Income Fund................................................. 40
Tax-Free California Fund.................................... 198
Total Return Bond Fund...................................... 30,188
Short Duration Fund......................................... 3,010
</Table>
n) Credit Risk -- Credit risk depends largely on the perceived financial
health of bond issuers. In general, lower rated bonds have higher credit
risks. High yield bond prices can fall on bad news about the economy, an
industry or a company. Share price, yield and total return may fluctuate
more than with less aggressive bond funds.
o) Use of Estimates -- The preparation of financial statements in
conformity with U.S. generally accepted accounting principles 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.
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 Agreement dated March 3, 1997, for
The Hartford Mutual Funds, Inc. and dated February 19, 2002, for The
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 Allocation 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. Additionally, HIFSCO will consult with
Ibbotson Associates, Inc. (Ibbotson), with respect to making investment
decisions for The Aggressive Growth Allocation Fund, The Balanced
Allocation Fund, The Conservative Allocation Fund, The Growth Allocation
Fund and The Income Allocation Fund. Each Fund pays a fee to HIFSCO, a
portion of which may be used to compensate Wellington, Hartford
Investment and Ibbotson.
The schedule below reflects the rates of compensation paid to HIFSCO for
investment advisory services rendered:
MONEY MARKET FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .50%
On next $500 million............................................... .45%
Over $1 billion.................................................... .40%
</Table>
TAX-FREE NATIONAL FUND AND U.S. GOVERNMENT
SECURITIES FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $50 million............................................... .80%
Over $50 million................................................... .70%
</Table>
TOTAL RETURN BOND FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .65%
On next $500 million............................................... .55%
Over $1 billion.................................................... .50%
</Table>
GLOBAL LEADERS FUND, INTERNATIONAL
OPPORTUNITIES FUND, MIDCAP FUND, MIDCAP VALUE FUND AND SMALL COMPANY FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .85%
On next $500 million............................................... .75%
Over $1 billion.................................................... .70%
</Table>
223
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
TAX-FREE MINNESOTA FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $50 million............................................... .72%
Over $50 million................................................... .70%
</Table>
GROWTH FUND, GROWTH OPPORTUNITIES FUND, SMALLCAP GROWTH FUND AND VALUE
OPPORTUNITIES FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $100 million.............................................. 1.00%
On next $150 million............................................... .80%
Over $250 million.................................................. .70%
</Table>
ADVISERS FUND, DIVIDEND AND GROWTH FUND
AND HIGH YIELD FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .75%
On next $500 million............................................... .65%
Over $1 billion.................................................... .60%
</Table>
INTERNATIONAL CAPITAL APPRECIATION FUND AND INTERNATIONAL SMALL COMPANY FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. 1.00%
On next $500 million............................................... .90%
Over $1 billion.................................................... .85%
</Table>
CAPITAL APPRECIATION FUND, DISCIPLINED EQUITY FUND, EQUITY INCOME FUND, STOCK
FUND AND VALUE FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .80%
On next $500 million............................................... .70%
Over $1 billion.................................................... .65%
</Table>
FOCUS FUND, GLOBAL COMMUNICATIONS FUND, GLOBAL FINANCIAL SERVICES FUND, GLOBAL
HEALTH FUND AND GLOBAL TECHNOLOGY FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. 1.00%
On next $500 million............................................... .95%
Over $1 billion.................................................... .90%
</Table>
INCOME FUND AND INFLATION PLUS FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .60%
Over $500 million.................................................. .55%
</Table>
SHORT DURATION FUND, TAX-FREE CALIFORNIA FUND AND TAX-FREE NEW YORK FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
On first $500 million.............................................. .55%
Over $500 million.................................................. .50%
</Table>
AGGRESSIVE GROWTH ALLOCATION FUND, BALANCED ALLOCATION FUND, CONSERVATIVE
ALLOCATION FUND, GROWTH ALLOCATION FUND AND INCOME ALLOCATION FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ -----------
All levels......................................................... .20%
</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, 2004, the following revenues
were received by HIFSCO:
<Table>
<Caption>
FRONT-END LOAD CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
-------------- -------------------
HIFSCO...................................................... $87,193 $9,307
</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 Rule 12b-1 plan applicable
to Class A shares of the Funds provides for payment of a Rule 12b-1 fee
of up to 0.35%, however, the Board of the Funds has currently authorized
12b-1 payments of only up to 0.30%. Up to 0.25% of the fee may be used
for shareholder servicing expenses with the remainder used for
distribution expenses. Effective November 1, 2004, the Class A Rule
12b-1 fee for each Fund will be voluntarily capped at 0.25%. The cap may
be removed at any time. Some or the entire Rule 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
224
- --------------------------------------------------------------------------------
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. Effective November 1, 2004, the Class L
distribution fee for the SmallCap Growth Fund will be 0.25%. 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 period ended October 31, 2004, total sales commissions paid to
affiliated brokers/dealers of The Hartford for distributing the Funds'
shares were $4,295. 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 A* CLASS B CLASS C CLASS H CLASS L CLASS M CLASS N CLASS Y
---- ------- -------- ------- ------- ------- ------- ------- ------- -------
Advisers Fund.................. NA 1.26% NA NA NA NA NA NA NA
Aggressive Allocation Fund**... 1.65% 1.65% 2.30% 2.30% NA NA NA NA NA
Balanced Allocation Fund**..... 1.45% 1.45% 2.15% 2.15% NA NA NA NA NA
Capital Appreciation Fund...... NA 1.29% NA NA NA NA NA NA NA
Conservative Allocation
Fund**....................... 1.40% 1.40% 2.05% 2.05% NA NA NA NA NA
Disciplined Equity Fund........ 1.45% 1.40% 2.15% 2.15% NA NA NA NA 1.00%
Dividend and Growth Fund....... NA 1.25% NA NA NA NA NA NA NA
Equity Income Fund............. NA 0.51% NA NA NA NA NA NA NA
Focus Fund..................... 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Global Communications Fund..... 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Global Financial Services
Fund......................... 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Global Health Fund............. 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Global Leaders Fund............ 1.65% 1.48% 2.35% 2.35% NA NA NA NA 1.20%
Global Technology Fund......... 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Growth Allocation Fund**....... 1.55% 1.55% 2.20% 2.20% NA NA NA NA NA
Growth Fund.................... 1.45% 1.33% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00%
Growth Opportunities Fund...... 1.45% 1.36% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00%
High Yield Fund................ 1.40% 1.35% 2.10% 2.10% NA NA NA NA 0.95%
Income Allocation Fund**....... 1.25% 1.25% 1.95% 1.95% NA NA NA NA NA
Income Fund.................... 1.00% 0.95% 1.70% 1.70% NA NA NA NA 0.70%
Inflation Plus Fund............ 1.00% 0.95% 1.70% 1.70% NA NA NA NA 0.70%
International Capital
Appreciation Fund............ 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
International Opportunities
Fund......................... 1.65% 1.57% 2.35% 2.35% NA NA NA NA 1.20%
International Small Company
Fund......................... 1.65% 1.60% 2.35% 2.35% NA NA NA NA 1.20%
MidCap Fund.................... NA 1.37% NA NA NA NA NA NA NA
MidCap Value Fund.............. 1.45% 1.40% 2.15% 2.15% NA NA NA NA 1.00%
Money Market Fund.............. 1.00% 0.95% 1.70% 1.70% NA NA NA NA 0.55%
Short Duration Fund............ 0.95% 0.90% 1.65% 1.65% NA NA NA NA 0.65%
SmallCap Growth Fund........... 1.45% 1.40% 2.15% 2.15% 2.15% 1.45%* 2.15% 2.15% 1.10%
Small Company Fund............. 1.45% 1.40% 2.15% 2.15% NA NA NA NA 1.00%
Stock Fund..................... NA 1.33% NA NA NA NA NA NA NA
Tax-Free California Fund....... 0.95% 0.90% 1.65% 1.65% NA NA NA NA NA
Tax-Free Minnesota Fund........ 0.90% 0.85% 1.60% 1.60% 1.60% 0.90% 1.60% 1.60% NA
Tax-Free National Fund......... 1.05% 1.00% 1.75% 1.75% 1.75% 1.05% 1.75% 1.75% NA
Tax-Free New York Fund......... 0.90% 0.85% 1.60% 1.60% NA NA NA NA NA
Total Return Bond Fund......... 1.25% 1.20% 1.95% 1.95% NA NA NA NA 0.80%
U.S. Government Securities
Fund......................... 1.20% 1.15% 1.90% 1.90% 1.90% 1.20% 1.90% 1.90% 0.80%
Value Fund..................... 1.45% 1.40% 2.15% 2.15% NA NA NA NA 1.00%
Value Opportunities Fund....... 1.45% 1.40% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.25%
</Table>
* Effective November 1, 2004, The Hartford has voluntarily agreed to
limit the total operating expenses for Class A as disclosed above and
Class L of SmallCap Growth Fund at 1.25% for a period of one year.
** Voluntary limitations for total operating expenses for the Aggressive
Growth Allocation Fund, the Balanced Allocation Fund, the
Conservative Allocation Fund, the Growth Allocation Fund and the
Income Allocation Fund include expenses incurred as the result of
investing in other investment companies.
225
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
Prior to March 1, 2004, the expense limitations for the following Funds
were as follows:
Tax-Free Minnesota Fund (Classes A and L, 1.15%, Classes B, C, H, M and
N, 1.85%, Class Y, 0.80%)
Tax-Free National Fund (Classes A and L, 1.15%, Classes B, C, H, M and
N, 1.85%, Class Y, 0.85%)
Tax-Free New York Fund (Class A, 0.95%, Classes B and C, 1.65%)
The Hartford voluntarily agreed to waive management fees for the Equity
Income Fund until August 28, 2005. The amount waived was $1,392.
For the year ended October 31, 2004, The Hartford waived a portion of
Distribution and Transfer Agent fees for the Equity Income Fund. The
waived portion amounts to $56.
For the year ended October 31, 2004, The Hartford waived a portion of
Distribution fees for the Money Market Fund (Classes B and C). The
waived portion amounts to $352.
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.
Due to a change in the allocation methodology for transfer agent fees,
HIFSCO has reimbursed the following Funds for transfer agent expenses;
Advisers Fund, Disciplined Equity Fund, Dividend and Growth Fund, Focus
Fund, High Yield Fund and Total Return Bond Fund. The amounts reimbursed
were: $4,979, $3, $1,109, $34, $82 and $243, respectively, which
represents .2%, .001%, .05%, .03%, .02% and .04% of average total net
assets of each respective Fund. For the year ended October 31, 2004,
these amounts are included as Payment from Affiliate in the Statement of
Operations.
In addition to each of the Allocation Fund's direct expenses, Allocation
Fund Shareholders also bear a proportional share of the Underlying Funds
expenses.
d) Expense Offsets -- The Funds have entered into an agreement with State
Street Global Advisors to partially recapture non-discounted trade
commissions. Such rebates are used solely to reduce the Funds' operating
expenses. The Funds' custodian bank has agreed to reduce its fees when
the Funds maintain cash on deposit in the non-interest-bearing custody
account. For the period ended October 31, 2004, commission recapture and
custodian fee offset arrangements are follows:
<Table>
<Caption>
COMMISSION RECAPTURE CUSTODIAN FEE OFFSET
--------------------- --------------------
Advisers Fund............................................... 164 2
Capital Appreciation Fund................................... 1,966 8
Disciplined Equity Fund..................................... 42 @@
Dividend and Growth Fund.................................... 231 3
Equity Income Fund.......................................... 15 @@
Focus Fund.................................................. 36 @@
Global Communications Fund.................................. 5 @@
Global Financial Services Fund.............................. 7 @@
Global Health Fund.......................................... 49 @@
Global Leaders Fund......................................... 625 3
Global Technology Fund...................................... 36 @@
Growth Fund................................................. 179 @@
Growth Opportunities Fund................................... 315 6
High Yield Fund............................................. -- 3
Income Fund................................................. -- @@
Inflation Plus Fund......................................... -- 1
International Capital Appreciation Fund..................... 36 @@
International Opportunities Fund............................ 66 1
International Small Company Fund............................ 35 @@
MidCap Fund................................................. 338 1
MidCap Value Fund........................................... 69 @@
Money Market Fund........................................... -- 1
Short Duration Fund......................................... -- @@
Small Company Fund.......................................... 154 2
SmallCap Growth Fund........................................ 20 1
Stock Fund.................................................. 134 @@
Tax-Free California Fund.................................... -- 3
Tax-Free Minnesota Fund..................................... -- 1
Tax-Free National Fund...................................... -- @@
Tax-Free New York Fund...................................... -- 1
Total Return Bond Fund...................................... -- 8
</Table>
226
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMISSION RECAPTURE CUSTODIAN FEE OFFSET
--------------------- --------------------
U. S. Government Securities Fund............................ -- @@
Value Fund.................................................. 8 @@
Value Opportunities Fund.................................... 7 @@
</Table>
e) Accounting Services Agreement -- Pursuant to the Fund Accounting
Agreement between Hartford Life Insurance Co. (HLIC) and the Funds, HLIC
provides accounting services to the Funds and receives monthly
compensation at the annual rate of 0.02% of each Fund's Class A, B, C
and Y average daily net assets, except for the Aggressive Allocation
Fund, the Balanced Allocation Fund, the Conservative Allocation Fund,
the Growth Allocation Fund and the Income Allocation Fund which pay a
fee of 0.01% of each Fund's Class A, B and C average daily net assets.
f) Other Related Party Transactions -- For the year ended October 31, 2004,
Hartford Fire was reimbursed $119 for legal expenses on behalf of 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. HASCO is compensated by $53,998 for providing such services.
4. AFFILIATE HOLDINGS:
As of October 31, 2004, affiliates of The Hartford (Hartford Life Investment
Advisers and Hartford Life Insurance) had ownership of shares in the Funds
as follows:
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS Y
---- ------- ------- ------- -------
Aggressive Growth Allocation Fund........................... 1 1 1 NA
Balanced Allocation Fund.................................... 1 1 1 NA
Conservative Allocation Fund................................ 1 1 1 NA
Equity Income Fund.......................................... -- -- -- 10
Global Communications Fund.................................. 700 -- -- --
Global Financial Services Fund.............................. 564 -- -- --
Growth Allocation Fund...................................... 1 1 1 NA
Growth Fund................................................. -- -- -- @@
Growth Opportunities Fund................................... -- -- -- @@
High Yield Fund............................................. -- -- -- @@
Income Allocation Fund...................................... 1 1 1 NA
Inflation Plus Fund......................................... -- -- -- 1
Income Fund................................................. 737 -- -- 1
International Capital Appreciation Fund..................... -- -- -- 17
MidCap Value Fund........................................... -- -- -- 3
Short Duration Fund......................................... -- -- -- 1
SmallCap Growth Fund........................................ -- -- -- @@
Tax-Free California Fund.................................... 761 -- -- NA
Tax-Free Minnesota Fund..................................... -- -- -- @@
Tax-Free National Fund...................................... -- -- -- @@
Tax-Free New York Fund...................................... 867 107 107 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, 2004, the cost of purchases and proceeds
from sales and maturities of securities for the Money Market Fund were
$3,446,483 and $3,504,572, respectively. The cost of purchases and proceeds
from sales and maturities of securities (excluding short-term investments)
for the other portfolios were as follows:
<Table>
<Caption>
COST OF
PURCHASES SALES PROCEEDS COST OF SALES
(EXCLUDING (EXCLUDING PURCHASES PROCEEDS
U.S. GOVERNMENT U.S. GOVERNMENT (U.S. GOVERNMENT (U.S. GOVERNMENT
FUND OBLIGATIONS) OBLIGATIONS) OBLIGATIONS) OBLIGATIONS)
---- --------------- --------------- ---------------- ----------------
Advisers Fund.................................. $ 602,620 $ 781,564 $458,618 $306,255
Aggressive Growth Allocation Fund.............. 21,130 227 -- --
Balanced Allocation Fund....................... 110,807 5 -- --
Capital Appreciation Fund...................... 6,250,086 4,427,658 -- --
</Table>
227
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
COST OF
PURCHASES SALES PROCEEDS COST OF SALES
(EXCLUDING (EXCLUDING PURCHASES PROCEEDS
U.S. GOVERNMENT U.S. GOVERNMENT (U.S. GOVERNMENT (U.S. GOVERNMENT
FUND OBLIGATIONS) OBLIGATIONS) OBLIGATIONS) OBLIGATIONS)
---- --------------- --------------- ---------------- ----------------
Conservative Allocation Fund................... 47,925 4 -- --
Disciplined Equity Fund........................ 215,115 232,718 -- --
Dividend and Growth Fund....................... 1,025,040 552,257 -- --
Equity Income Fund............................. 264,686 37,370 -- --
Focus Fund..................................... 124,613 137,957 -- --
Global Communications Fund..................... 10,010 9,471 -- --
Global Financial Services Fund................. 16,402 18,750 -- --
Global Health Fund............................. 153,444 113,628 -- --
Global Leaders Fund............................ 1,824,657 1,871,114 -- --
Global Technology Fund......................... 111,020 108,557 -- --
Growth Allocation Fund......................... 74,148 4 -- --
Growth Fund.................................... 745,217 422,447 -- --
Growth Opportunities Fund...................... 889,760 920,956 -- --
High Yield Fund................................ 339,256 315,165 -- --
Income Allocation Fund......................... 16,384 146 -- --
Income Fund.................................... 47,122 44,217 21,533 9,987
Inflation Plus Fund............................ 25,797 12,543 793,005 444,737
International Capital Appreciation Fund........ 158,989 88,791 -- --
International Opportunities Fund............... 173,399 173,421 -- --
International Small Company Fund............... 110,543 73,763 -- --
MidCap Fund.................................... 1,302,089 1,354,499 -- --
MidCap Value Fund.............................. 285,459 161,074 -- --
Short Duration Fund............................ 31,390 12,836 98,729 74,933
Small Company Fund............................. 400,722 391,313 -- --
SmallCap Growth Fund........................... 234,194 212,172 -- --
Stock Fund..................................... 499,159 631,037 -- --
Tax-Free California Fund....................... 7,893 6,219 -- --
Tax-Free Minnesota Fund........................ 7,542 11,890 -- --
Tax-Free National Fund......................... 23,042 15,258 -- --
Tax-Free New York Fund......................... 4,552 2,875 -- --
Total Return Bond Fund......................... 312,673 261,312 700,225 754,836
U.S. Government Securities Fund................ -- -- 309,026 368,915
Value Fund..................................... 56,613 25,393 -- --
Value Opportunities Fund....................... 63,145 34,390 -- --
</Table>
6. CAPITAL SHARE TRANSACTIONS:
The following information is for the periods ended October 31, 2004 and
October 31, 2003:
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
ADVISERS FUND:
Class A Shares............. 20,004 20,836 1,278 1,405 (19,236) (16,930)
Amount.............. $ 292,883 $276,476 $18,724 $18,517 $(282,489) $(223,566)
Class B Shares............. 3,173 4,637 188 299 (7,436) (7,994)
Amount.............. $ 46,199 $ 60,761 $ 2,706 $ 3,881 $(108,019) $(103,704)
Class C Shares............. 2,841 4,392 143 237 (8,299) (8,264)
Amount.............. $ 41,859 $ 58,068 $ 2,099 $ 3,113 $(121,827) $(108,634)
Class Y Shares............. 327 301 14 8 (24) (15)
Amount.............. $ 4,863 $ 4,038 $ 205 $ 119 $ (360) $ (203)
AGGRESSIVE GROWTH ALLOCATION FUND:
Class A Shares............. 1,274 -- -- -- (78) --
Amount.............. $ 12,730 $ -- $ -- $ -- $ (768) $ --
Class B Shares............. 446 -- -- -- (8) --
Amount.............. $ 4,429 $ -- $ -- $ -- $ (79) $ --
Class C Shares............. 544 -- -- -- (20) --
Amount.............. $ 5,433 $ -- $ -- $ -- $ (201) $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
ADVISERS FUND:
Class A Shares............. 2,046 5,311
Amount.............. $ 29,118 $ 71,427
Class B Shares............. (4,075) (3,058)
Amount.............. $ (59,114) $(39,062)
Class C Shares............. (5,315) (3,635)
Amount.............. $ (77,869) $(47,453)
Class Y Shares............. 317 294
Amount.............. $ 4,708 $ 3,954
AGGRESSIVE GROWTH ALLOCATIO
Class A Shares............. 1,196 --
Amount.............. $ 11,962 $ --
Class B Shares............. 438 --
Amount.............. $ 4,350 $ --
Class C Shares............. 524 --
Amount.............. $ 5,232 $ --
</Table>
228
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
BALANCED ALLOCATION FUND:
Class A Shares............. 6,617 -- 7 -- (91) --
Amount.............. $ 66,507 $ -- $ 67 $ -- $ (919) $ --
Class B Shares............. 1,863 -- @@ -- (30) --
Amount.............. $ 18,687 $ -- $ 2 $ -- $ (297) $ --
Class C Shares............. 2,970 -- @@ -- (11) --
Amount.............. $ 29,758 $ -- $ 3 $ -- $ (108) $ --
CAPITAL APPRECIATION FUND:
Class A Shares............. 61,773 20,811 -- -- (14,265) (14,908)
Amount.............. $1,817,501 $474,094 $ -- $ -- $(420,206) $(324,553)
Class B Shares............. 9,317 6,504 -- -- (5,272) (6,361)
Amount.............. $ 257,989 $138,655 $ -- $ -- $(145,779) $(130,934)
Class C Shares............. 14,150 8,629 -- -- (6,677) (7,407)
Amount.............. $ 392,093 $185,768 $ -- $ -- $(184,938) $(152,981)
Class Y Shares............. 1,987 936 -- -- (129) (382)
Amount.............. $ 61,273 $ 21,401 $ -- $ -- $ (3,995) $ (8,207)
CONSERVATIVE ALLOCATION FUND:
Class A Shares............. 3,314 -- 3 -- (14) --
Amount.............. $ 33,400 $ -- $ 32 $ -- $ (139) $ --
Class B Shares............. 495 -- @@ -- (8) --
Amount.............. $ 4,983 $ -- $ 3 $ -- $ (85) $ --
Class C Shares............. 1,065 -- 1 -- (13) --
Amount.............. $ 10,700 $ -- $ 6 $ -- $ (131) $ --
DISCIPLINED EQUITY FUND:
Class A Shares............. 3,357 4,602 14 -- (4,978) (7,751)
Amount.............. $ 35,514 $ 40,782 $ 149 $ -- $ (52,961) $ (67,219)
Class B Shares............. 432 770 -- -- (1,001) (1,148)
Amount.............. $ 4,431 $ 6,568 $ -- $ -- $ (10,232) $ (9,611)
Class C Shares............. 337 841 -- -- (1,083) (1,474)
Amount.............. $ 3,454 $ 7,184 $ -- $ -- $ (11,091) $ (12,330)
Class Y Shares............. 1,728 21 @@ -- (6) (38)
Amount.............. $ 18,721 $ 187 $ 3 $ -- $ (70) $ (353)
DIVIDEND AND GROWTH FUND:
Class A Shares............. 32,461 30,101 795 609 (11,304) (8,875)
Amount.............. $ 551,797 $435,362 $13,732 $ 8,814 $(194,553) $(126,929)
Class B Shares............. 3,907 4,757 19 30 (2,102) (2,247)
Amount.............. $ 66,363 $ 67,912 $ 335 $ 417 $ (35,752) $ (31,454)
Class C Shares............. 4,149 5,187 33 38 (2,999) (2,830)
Amount.............. $ 70,299 $ 73,923 $ 559 $ 546 $ (50,934) $ (39,913)
Class Y Shares............. 1,986 3,551 42 29 (797) (2,045)
Amount.............. $ 34,545 $ 53,476 $ 724 $ 434 $ (13,917) $ (31,994)
EQUITY INCOME FUND:
Class A Shares............. 17,305 2,610 227 -- (1,317) (41)
Amount.............. $ 189,949 $ 26,551 $ 2,502 $ -- $ (14,509) $ (424)
Class B Shares............. 1,484 235 11 -- (91) (1)
Amount.............. $ 16,339 $ 2,391 $ 123 $ -- $ (1,005) $ (15)
Class C Shares............. 3,357 737 29 -- (214) @@
Amount.............. $ 36,979 $ 7,502 $ 318 $ -- $ (2,351) $ @@
Class Y Shares............. 23 10 @@ -- @@ --
Amount.............. $ 249 $ 100 $ 4 $ -- $ @@ $ --
FOCUS FUND:
Class A Shares............. 1,439 985 -- -- (1,915) (2,225)
Amount.............. $ 13,552 $ 7,885 $ -- $ -- $ (17,884) $ (17,497)
Class B Shares............. 189 257 -- -- (497) (463)
Amount.............. $ 1,743 $ 2,008 $ -- $ -- $ (4,566) $ (3,564)
Class C Shares............. 429 407 -- -- (842) (883)
Amount.............. $ 3,941 $ 3,218 $ -- $ -- $ (7,684) $ (6,741)
Class Y Shares............. 48 20 -- -- (40) (9)
Amount.............. $ 463 $ 158 $ -- $ -- $ (373) $ (80)
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
BALANCED ALLOCATION FUND:
Class A Shares............. 6,533 --
Amount.............. $ 65,655 $ --
Class B Shares............. 1,833 --
Amount.............. $ 18,392 $ --
Class C Shares............. 2,959 --
Amount.............. $ 29,653 $ --
CAPITAL APPRECIATION FUND:
Class A Shares............. 47,508 5,903
Amount.............. $1,397,295 $149,541
Class B Shares............. 4,045 143
Amount.............. $ 112,210 $ 7,721
Class C Shares............. 7,473 1,222
Amount.............. $ 207,155 $ 32,787
Class Y Shares............. 1,858 554
Amount.............. $ 57,278 $ 13,194
CONSERVATIVE ALLOCATION FUN
Class A Shares............. 3,303 --
Amount.............. $ 33,293 $ --
Class B Shares............. 487 --
Amount.............. $ 4,901 $ --
Class C Shares............. 1,053 --
Amount.............. $ 10,575 $ --
DISCIPLINED EQUITY FUND:
Class A Shares............. (1,607) (3,149)
Amount.............. $ (17,298) $(26,437)
Class B Shares............. (569) (378)
Amount.............. $ (5,801) $ (3,043)
Class C Shares............. (746) (633)
Amount.............. $ (7,637) $ (5,146)
Class Y Shares............. 1,722 (17)
Amount.............. $ 18,654 $ (166)
DIVIDEND AND GROWTH FUND:
Class A Shares............. 21,952 21,835
Amount.............. $ 370,976 $317,247
Class B Shares............. 1,824 2,540
Amount.............. $ 30,946 $ 36,875
Class C Shares............. 1,183 2,395
Amount.............. $ 19,924 $ 34,556
Class Y Shares............. 1,231 1,535
Amount.............. $ 21,352 $ 21,916
EQUITY INCOME FUND:
Class A Shares............. 16,215 2,569
Amount.............. $ 177,942 $ 26,127
Class B Shares............. 1,404 234
Amount.............. $ 15,457 $ 2,376
Class C Shares............. 3,172 737
Amount.............. $ 34,946 $ 7,502
Class Y Shares............. 23 10
Amount.............. $ 253 $ 100
FOCUS FUND:
Class A Shares............. (476) (1,240)
Amount.............. $ (4,332) $ (9,612)
Class B Shares............. (308) (206)
Amount.............. $ (2,823) $ (1,556)
Class C Shares............. (413) (476)
Amount.............. $ (3,743) $ (3,523)
Class Y Shares............. 8 11
Amount.............. $ 90 $ 78
</Table>
229
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
GLOBAL COMMUNICATIONS FUND:
Class A Shares............. 606 422 -- -- (352) (132)
Amount.............. $ 3,173 $ 1,657 $ -- $ -- $ (1,854) $ (494)
Class B Shares............. 113 133 -- -- (175) (58)
Amount.............. $ 583 $ 526 $ -- $ -- $ (837) $ (222)
Class C Shares............. 118 95 -- -- (158) (41)
Amount.............. $ 612 $ 368 $ -- $ -- $ (752) $ (146)
Class Y Shares............. 31 37 -- -- (154) (31)
Amount.............. $ 167 $ 147 $ -- $ -- $ (740) $ (128)
GLOBAL FINANCIAL SERVICES FUND:
Class A Shares............. 232 231 11 6 (310) (145)
Amount.............. $ 2,389 $ 2,013 $ 110 $ 44 $ (3,179) $ (1,230)
Class B Shares............. 48 73 1 -- (137) (36)
Amount.............. $ 489 $ 613 $ 7 $ -- $ (1,318) $ (290)
Class C Shares............. 61 79 @@ -- (157) (66)
Amount.............. $ 615 $ 673 $ 6 $ -- $ (1,508) $ (522)
Class Y Shares............. 3 4 1 2 (104) (22)
Amount.............. $ 32 $ 36 $ 7 $ 13 $ (1,007) $ (191)
GLOBAL HEALTH FUND:
Class A Shares............. 4,099 3,203 43 228 (1,943) (3,174)
Amount.............. $ 61,055 $ 40,388 $ 579 $ 2,589 $ (28,878) $ (38,579)
Class B Shares............. 873 700 19 102 (536) (681)
Amount.............. $ 12,705 $ 8,608 $ 252 $ 1,130 $ (7,775) $ (7,941)
Class C Shares............. 1,130 725 17 98 (756) (823)
Amount.............. $ 16,402 $ 9,058 $ 230 $ 1,089 $ (10,920) $ (9,659)
Class Y Shares............. 20 34 @@ 2 (14) (34)
Amount.............. $ 300 $ 412 $ 5 $ 23 $ (205) $ (413)
GLOBAL LEADERS FUND:
Class A Shares............. 8,714 24,925 -- -- (13,745) (23,238)
Amount.............. $ 134,534 $292,646 $ -- $ -- $(214,196) $(271,217)
Class B Shares............. 856 542 -- -- (1,008) (1,130)
Amount.............. $ 12,890 $ 6,308 $ -- $ -- $ (15,171) $ (12,914)
Class C Shares............. 963 844 -- -- (1,244) (1,932)
Amount.............. $ 14,553 $ 9,733 $ -- $ -- $ (18,640) $ (22,148)
Class Y Shares............. 2,238 829 -- -- (119) (39)
Amount.............. $ 35,831 $ 10,182 $ -- $ -- $ (1,968) $ (507)
GLOBAL TECHNOLOGY FUND:
Class A Shares............. 3,193 3,806 -- -- (3,006) (3,043)
Amount.............. $ 15,225 $ 14,169 $ -- $ -- $ (14,082) $ (11,163)
Class B Shares............. 626 896 -- -- (660) (626)
Amount.............. $ 2,862 $ 3,306 $ -- $ -- $ (2,947) $ (2,176)
Class C Shares............. 794 1,253 -- -- (1,166) (906)
Amount.............. $ 3,684 $ 4,613 $ -- $ -- $ (5,137) $ (3,103)
Class Y Shares............. 246 242 -- -- (169) (226)
Amount.............. $ 1,197 $ 921 $ -- $ -- $ (776) $ (834)
GROWTH ALLOCATION FUND:
Class A Shares............. 4,214 -- -- -- (37) --
Amount.............. $ 42,297 $ -- $ -- $ -- $ (376) $ --
Class B Shares............. 1,381 -- -- -- (9) --
Amount.............. $ 13,837 $ -- $ -- $ -- $ (92) $ --
Class C Shares............. 2,071 -- -- -- (18) --
Amount.............. $ 20,769 $ -- $ -- $ -- $ (174) $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
GLOBAL COMMUNICATIONS FUND:
Class A Shares............. 254 290
Amount.............. $ 1,319 $ 1,163
Class B Shares............. (62) 75
Amount.............. $ (254) $ 304
Class C Shares............. (40) 54
Amount.............. $ (140) $ 222
Class Y Shares............. (123) 6
Amount.............. $ (573) $ 19
GLOBAL FINANCIAL SERVICES F
Class A Shares............. (67) 92
Amount.............. $ (680) $ 827
Class B Shares............. (88) 37
Amount.............. $ (822) $ 323
Class C Shares............. (96) 13
Amount.............. $ (887) $ 151
Class Y Shares............. (100) (16)
Amount.............. $ (968) $ (142)
GLOBAL HEALTH FUND:
Class A Shares............. 2,199 257
Amount.............. $ 32,756 $ 4,398
Class B Shares............. 356 121
Amount.............. $ 5,182 $ 1,797
Class C Shares............. 391 --
Amount.............. $ 5,712 $ 488
Class Y Shares............. 6 2
Amount.............. $ 100 $ 22
GLOBAL LEADERS FUND:
Class A Shares............. (5,031) 1,687
Amount.............. $ (79,662) $ 21,429
Class B Shares............. (152) (588)
Amount.............. $ (2,281) $ (6,606)
Class C Shares............. (281) (1,088)
Amount.............. $ (4,087) $(12,415)
Class Y Shares............. 2,119 790
Amount.............. $ 33,863 $ 9,675
GLOBAL TECHNOLOGY FUND:
Class A Shares............. 187 763
Amount.............. $ 1,143 $ 3,006
Class B Shares............. (34) 270
Amount.............. $ (85) $ 1,130
Class C Shares............. (372) 347
Amount.............. $ (1,453) $ 1,510
Class Y Shares............. 77 16
Amount.............. $ 421 $ 87
GROWTH ALLOCATION FUND:
Class A Shares............. 4,177 --
Amount.............. $ 41,921 $ --
Class B Shares............. 1,372 --
Amount.............. $ 13,745 $ --
Class C Shares............. 2,053 --
Amount.............. $ 20,595 $ --
</Table>
230
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
GROWTH FUND:
Class A Shares............. 21,155 4,711 -- -- (2,175) (462)
Amount.............. $ 338,377 $ 65,217 $ -- $ -- $ (34,755) $ (5,930)
Class B Shares............. 1,608 750 -- -- (213) (64)
Amount.............. $ 23,159 $ 9,255 $ -- $ -- $ (3,051) $ (743)
Class C Shares............. 2,743 807 -- -- (331) (75)
Amount.............. $ 39,544 $ 9,924 $ -- $ -- $ (4,703) $ (856)
Class H Shares............. 97 130 -- -- (451) (568)
Amount.............. $ 1,409 $ 1,503 $ -- $ -- $ (6,542) $ (6,564)
Class L Shares............. 720 993 -- -- (2,456) (3,309)
Amount.............. $ 11,614 $ 12,856 $ -- $ -- $ (39,495) $ (42,188)
Class M Shares............. 122 163 -- -- (359) (438)
Amount.............. $ 1,761 $ 1,881 $ -- $ -- $ (5,186) $ (4,962)
Class N Shares............. 23 32 -- -- (52) (106)
Amount.............. $ 330 $ 378 $ -- $ -- $ (742) $ (1,255)
Class Y Shares............. 727 -- -- -- -- --
Amount.............. $ 11,615 $ -- $ -- $ -- $ (20) $ --
GROWTH OPPORTUNITIES FUND:
Class A Shares............. 1,836 757 -- -- (317) (168)
Amount.............. $ 41,525 $ 14,186 $ -- $ -- $ (7,148) $ (2,947)
Class B Shares............. 390 201 -- -- (71) (22)
Amount.............. $ 7,860 $ 3,353 $ -- $ -- $ (1,431) $ (346)
Class C Shares............. 432 285 -- -- (136) (73)
Amount.............. $ 8,695 $ 4,860 $ -- $ -- $ (2,722) $ (1,137)
Class H Shares............. 149 209 -- -- (646) (684)
Amount.............. $ 3,027 $ 3,188 $ -- $ -- $ (13,128) $ (10,526)
Class L Shares............. 905 1,072 -- -- (3,294) (3,729)
Amount.............. $ 20,802 $ 18,661 $ -- $ -- $ (75,949) $ (63,752)
Class M Shares............. 95 137 -- -- (306) (323)
Amount.............. $ 1,932 $ 2,091 $ -- $ -- $ (6,182) $ (4,908)
Class N Shares............. 19 24 -- -- (34) (76)
Amount.............. $ 401 $ 364 $ -- $ -- $ (693) $ (1,144)
Class Y Shares............. 201 -- -- -- @@ --
Amount.............. $ 4,591 $ -- $ -- $ -- $ (2) $ --
Class Z Shares............. 29 63 -- -- (148) (289)
Amount.............. $ 700 $ 1,121 $ -- $ -- $ (3,494) $ (5,364)
HIGH YIELD FUND:
Class A Shares............. 15,138 21,777 1,445 1,432 (13,206) (10,570)
Amount.............. $ 121,323 $164,279 $11,602 $10,772 $(105,905) $ (80,037)
Class B Shares............. 1,635 4,300 304 385 (3,225) (2,167)
Amount.............. $ 13,122 $ 32,275 $ 2,440 $ 2,883 $ (25,767) $ (16,295)
Class C Shares............. 2,699 5,820 301 373 (4,067) (2,401)
Amount.............. $ 21,604 $ 44,021 $ 2,409 $ 2,801 $ (32,481) $ (18,087)
Class Y Shares............. 1,988 -- 23 @@ (3) --
Amount.............. $ 15,965 $ -- $ 183 $ @@ $ (28) $ --
INCOME ALLOCATION FUND:
Class A Shares............. 1,075 -- 3 -- (39) --
Amount.............. $ 10,853 $ -- $ 25 $ -- $ (391) $ --
Class B Shares............. 166 -- 1 -- @@ --
Amount.............. $ 1,677 $ -- $ 4 $ -- @@ $ --
Class C Shares............. 481 -- 1 -- (1) --
Amount.............. $ 4,849 $ -- $ 13 $ -- $ (12) $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
GROWTH FUND:
Class A Shares............. 18,980 4,249
Amount.............. $ 303,622 $ 59,287
Class B Shares............. 1,395 686
Amount.............. $ 20,108 $ 8,512
Class C Shares............. 2,412 732
Amount.............. $ 34,841 $ 9,068
Class H Shares............. (354) (438)
Amount.............. $ (5,133) $ (5,061)
Class L Shares............. (1,736) (2,316)
Amount.............. $ (27,881) $(29,332)
Class M Shares............. (237) (275)
Amount.............. $ (3,425) $ (3,081)
Class N Shares............. (29) (74)
Amount.............. $ (412) $ (877)
Class Y Shares............. 727 --
Amount.............. $ 11,595 $ --
GROWTH OPPORTUNITIES FUND:
Class A Shares............. 1,519 589
Amount.............. $ 34,377 $ 11,239
Class B Shares............. 319 179
Amount.............. $ 6,429 $ 3,007
Class C Shares............. 296 212
Amount.............. $ 5,973 $ 3,723
Class H Shares............. (497) (475)
Amount.............. $ (10,101) $ (7,338)
Class L Shares............. (2,389) (2,657)
Amount.............. $ (55,147) $(45,091)
Class M Shares............. (211) (186)
Amount.............. $ (4,250) $ (2,817)
Class N Shares............. $ (15) (52)
Amount.............. $ (292) $ (780)
Class Y Shares............. 201 --
Amount.............. $ 4,589 $ --
Class Z Shares............. (119) (226)
Amount.............. $ (2,794) $ (4,243)
HIGH YIELD FUND:
Class A Shares............. 3,377 12,639
Amount.............. $ 27,020 $ 95,014
Class B Shares............. (1,286) 2,518
Amount.............. $ (10,205) $ 18,863
Class C Shares............. (1,067) 3,792
Amount.............. $ (8,468) $ 28,735
Class Y Shares............. 2,008 @@
Amount.............. $ 16,120 $ @@
INCOME ALLOCATION FUND:
Class A Shares............. 1,039 --
Amount.............. $ 10,487 $ --
Class B Shares............. 167 --
Amount.............. $ 1,681 $ --
Class C Shares............. 481 --
Amount.............. $ 4,850 $ --
</Table>
231
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
INCOME FUND:
Class A Shares............. 1,727 924 100 56 (572) (276)
Amount.............. $ 18,318 $ 9,639 $ 1,060 $ 583 $ (6,021) $ (2,873)
Class B Shares............. 323 435 12 10 (266) (98)
Amount.............. $ 3,438 $ 4,536 $ 131 $ 101 $ (2,821) $ (1,022)
Class C Shares............. 370 481 13 11 (344) (113)
Amount.............. $ 3,951 $ 5,041 $ 141 $ 111 $ (3,664) $ (1,182)
Class Y Shares............. 1 -- @@ -- -- --
Amount.............. $ 10 $ -- $ @@ $ -- $ -- $ --
INFLATION PLUS FUND:
Class A Shares............. 23,222 16,391 605 154 (8,615) (3,896)
Amount.............. $ 250,275 $171,999 $ 6,490 $ 1,621 $ (93,130) $ (40,833)
Class B Shares............. 4,655 7,264 163 50 (1,361) (1,023)
Amount.............. $ 50,155 $ 76,272 $ 1,747 $ 521 $ (14,644) $ (10,706)
Class C Shares............. 20,033 17,734 465 114 (6,366) (2,876)
Amount.............. $ 215,788 $186,158 $ 4,979 $ 1,191 $ (68,390) $ (30,131)
Class Y Shares............. 2,091 -- 12 -- (3) --
Amount.............. $ 22,705 $ -- $ 129 $ -- $ (32) $ --
INTERNATIONAL CAPITAL APPRECIATION FUND:
Class A Shares............. 4,060 2,549 7 1 (930) (2,042)
Amount.............. $ 43,529 $ 20,230 $ 69 $ 5 $ (9,755) $ (15,786)
Class B Shares............. 942 320 1 -- (377) (212)
Amount.............. $ 9,962 $ 2,602 $ 12 $ -- $ (3,903) $ (1,694)
Class C Shares............. 1,175 1,095 1 -- (277) (974)
Amount.............. $ 12,442 $ 8,473 $ 13 $ -- $ (2,893) $ (7,562)
Class Y Shares............. 2,440 -- @@ @@ (16) --
Amount.............. $ 26,773 $ -- $ 1 $ 1 $ (174) $ --
INTERNATIONAL OPPORTUNITIES FUND:
Class A Shares............. 2,241 25,564 3 -- (1,619) (26,722)
Amount.............. $ 23,586 $206,831 $ 31 $ -- $ (17,271) $(217,754)
Class B Shares............. 356 396 -- -- (385) (596)
Amount.............. $ 3,604 $ 3,188 $ -- $ -- $ (3,882) $ (4,723)
Class C Shares............. 490 6,856 -- -- (615) (6,993)
Amount.............. $ 4,918 $ 53,002 $ -- $ -- $ (6,142) $ (54,300)
Class Y Shares............. 193 589 3 -- (435) (532)
Amount.............. $ 2,093 $ 5,041 $ 28 $ -- $ (4,729) $ (4,536)
INTERNATIONAL SMALL COMPANY FUND:
Class A Shares............. 1,317 1,516 65 1 (554) (1,113)
Amount.............. $ 17,168 $ 14,976 $ 789 $ 10 $ (6,975) $ (10,846)
Class B Shares............. 185 101 12 -- (89) (38)
Amount.............. $ 2,374 $ 1,105 $ 140 $ -- $ (1,106) $ (408)
Class C Shares............. 677 332 19 -- (164) (200)
Amount.............. $ 8,742 $ 3,285 $ 229 $ -- $ (2,049) $ (1,861)
Class Y Shares............. 1,229 1,855 145 1 (173) (38)
Amount.............. $ 16,166 $ 21,094 $ 1,779 $ 7 $ (2,251) $ (432)
MIDCAP FUND:
Class A Shares............. 10,517 31,557 -- -- (10,854) (8,330)
Amount.............. $ 226,797 $556,422 $ -- $ -- $(234,207) $(142,582)
Class B Shares............. 1,045 6,247 -- -- (2,205) (2,513)
Amount.............. $ 21,514 $104,470 $ -- $ -- $ (45,362) $ (40,772)
Class C Shares............. 1,528 9,074 -- -- (3,269) (3,257)
Amount.............. $ 31,366 $152,841 $ -- $ -- $ (67,414) $ (53,133)
Class Y Shares............. 1,439 2,757 -- -- (938) (516)
Amount.............. $ 32,130 $ 48,718 $ -- $ -- $ (21,064) $ (9,080)
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
INCOME FUND:
Class A Shares............. 1,255 704
Amount.............. $ 13,357 $ 7,349
Class B Shares............. 69 347
Amount.............. $ 748 $ 3,615
Class C Shares............. 39 379
Amount.............. $ 428 $ 3,970
Class Y Shares............. 1 --
Amount.............. $ 10 $ --
INFLATION PLUS FUND:
Class A Shares............. 15,212 12,649
Amount.............. $ 163,635 $132,787
Class B Shares............. 3,457 6,291
Amount.............. $ 37,258 $ 66,087
Class C Shares............. 14,132 14,972
Amount.............. $ 152,377 $157,218
Class Y Shares............. 2,100 --
Amount.............. $ 22,802 $ --
INTERNATIONAL CAPITAL APPRE
Class A Shares............. 3,137 508
Amount.............. $ 33,843 $ 4,449
Class B Shares............. 566 108
Amount.............. $ 6,071 $ 908
Class C Shares............. 899 121
Amount.............. $ 9,562 $ 911
Class Y Shares............. 2,424 @@
Amount.............. $ 26,600 $ 1
INTERNATIONAL OPPORTUNITIES
Class A Shares............. 625 (1,158)
Amount.............. $ 6,346 $(10,923)
Class B Shares............. (29) (200)
Amount.............. $ (278) $ (1,535)
Class C Shares............. (125) (137)
Amount.............. $ (1,224) $ (1,298)
Class Y Shares............. (239) 57
Amount.............. $ (2,608) $ 505
INTERNATIONAL SMALL COMPANY
Class A Shares............. 828 404
Amount.............. $ 10,982 $ 4,140
Class B Shares............. 108 63
Amount.............. $ 1,408 $ 697
Class C Shares............. 532 132
Amount.............. $ 6,922 $ 1,424
Class Y Shares............. 1,201 1,818
Amount.............. $ 15,694 $ 20,669
MIDCAP FUND:
Class A Shares............. (337) 23,227
Amount.............. $ (7,410) $413,840
Class B Shares............. (1,160) 3,734
Amount.............. $ (23,848) $ 63,698
Class C Shares............. (1,741) 5,817
Amount.............. $ (36,048) $ 99,708
Class Y Shares............. 501 2,241
Amount.............. $ 11,066 $ 39,638
</Table>
232
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
MIDCAP VALUE FUND:
Class A Shares............. 9,912 4,780 -- -- (1,932) (2,373)
Amount.............. $ 120,745 $ 46,718 $ -- $ -- $ (23,847) $ (21,563)
Class B Shares............. 1,557 1,287 -- -- (557) (694)
Amount.............. $ 18,732 $ 12,186 $ -- $ -- $ (6,685) $ (6,151)
Class C Shares............. 1,867 1,597 -- -- (988) (1,054)
Amount.............. $ 22,451 $ 15,411 $ -- $ -- $ (11,899) $ (9,784)
Class Y Shares............. 186 -- -- -- @@ (27)
Amount.............. $ 2,346 $ -- $ -- $ -- $ (4) $ (279)
MONEY MARKET FUND:
Class A Shares............. 268,280 445,008 562 873 (309,599) (502,544)
Amount.............. $ 268,280 $445,008 $ 562 $ 873 $(309,599) $(502,544)
Class B Shares............. 33,505 53,900 5 4 (55,406) (85,220)
Amount.............. $ 33,505 $ 53,900 $ 5 $ 4 $ (55,406) $ (85,220)
Class C Shares............. 46,289 78,941 3 3 (49,621) (114,883)
Amount.............. $ 46,289 $ 78,941 $ 3 $ 3 $ (49,621) $(114,883)
Class Y Shares............. 8,799 1,293 21 17 (284) (2,963)
Amount.............. $ 8,799 $ 1,293 $ 21 $ 17 $ (284) $ (2,963)
SHORT DURATION FUND:
Class A Shares............. 3,953 3,485 84 59 (3,384) (1,114)
Amount.............. $ 40,074 $ 35,368 $ 849 $ 595 $ (34,319) $ (11,302)
Class B Shares............. 598 1,336 21 14 (409) (443)
Amount.............. $ 6,048 $ 13,547 $ 213 $ 142 $ (4,134) $ (4,498)
Class C Shares............. 2,620 4,226 59 39 (2,237) (1,342)
Amount.............. $ 26,506 $ 42,908 $ 596 $ 397 $ (22,610) $ (13,624)
Class Y Shares............. 3,109 -- 15 -- (4) --
Amount.............. $ 31,331 $ -- $ 150 $ -- $ (37) $ --
SMALL COMPANY FUND:
Class A Shares............. 3,778 4,197 -- -- (3,319) (3,992)
Amount.............. $ 56,945 $ 48,158 $ -- $ -- $ (49,235) $ (43,568)
Class B Shares............. 574 656 -- -- (766) (719)
Amount.............. $ 8,208 $ 7,407 $ -- $ -- $ (10,826) $ (7,431)
Class C Shares............. 759 1,028 -- -- (1,129) (1,291)
Amount.............. $ 10,913 $ 11,105 $ -- $ -- $ (15,851) $ (13,027)
Class Y Shares............. 717 440 -- -- (694) (519)
Amount.............. $ 10,759 $ 5,313 $ -- $ -- $ (11,024) $ (5,847)
SMALLCAP GROWTH FUND:
Class A Shares............. 1,534 833 -- -- (553) (289)
Amount.............. $ 37,161 $ 15,670 $ -- $ -- $ (13,298) $ (5,298)
Class B Shares............. 305 233 -- -- (85) (42)
Amount.............. $ 6,755 $ 4,143 $ -- $ -- $ (1,879) $ (697)
Class C Shares............. 312 193 -- -- (101) (51)
Amount.............. $ 6,832 $ 3,421 $ -- $ -- $ (2,167) $ (935)
Class H Shares............. 60 82 -- -- (276) (255)
Amount.............. $ 1,319 $ 1,313 $ -- $ -- $ (6,068) $ (4,092)
Class L Shares............. 389 382 -- -- (661) (1,019)
Amount.............. $ 9,377 $ 6,709 $ -- $ -- $ (15,890) $ (17,832)
Class M Shares............. 54 84 -- -- (190) (183)
Amount.............. $ 1,173 $ 1,347 $ -- $ -- $ (4,155) $ (2,943)
Class N Shares............. 26 29 -- -- (45) (69)
Amount.............. $ 564 $ 464 $ -- $ -- $ (961) $ (1,052)
Class Y Shares............. 234 -- -- -- (1) --
Amount.............. $ 5,510 $ -- $ -- $ -- $ (36) $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
MIDCAP VALUE FUND:
Class A Shares............. 7,980 2,407
Amount.............. $ 96,898 $ 25,155
Class B Shares............. 1,000 593
Amount.............. $ 12,047 $ 6,035
Class C Shares............. 879 543
Amount.............. $ 10,552 $ 5,627
Class Y Shares............. 186 (27)
Amount.............. $ 2,342 $ (279)
MONEY MARKET FUND:
Class A Shares............. (40,757) (56,663)
Amount.............. $ (40,757) $(56,663)
Class B Shares............. (21,896) (31,316)
Amount.............. $ (21,896) $(31,316)
Class C Shares............. (3,329) (35,939)
Amount.............. $ (3,329) $(35,939)
Class Y Shares............. 8,536 (1,653)
Amount.............. $ 8,536 $ (1,653)
SHORT DURATION FUND:
Class A Shares............. 653 2,430
Amount.............. $ 6,604 $ 24,661
Class B Shares............. 210 907
Amount.............. $ 2,127 $ 9,191
Class C Shares............. 443 2,923
Amount.............. $ 4,492 $ 29,681
Class Y Shares............. 3,120 --
Amount.............. $ 31,444 $ --
SMALL COMPANY FUND:
Class A Shares............. 459 205
Amount.............. $ 7,710 $ 4,590
Class B Shares............. (192) (63)
Amount.............. $ (2,618) $ (24)
Class C Shares............. (370) (263)
Amount.............. $ (4,938) $ (1,922)
Class Y Shares............. 23 (79)
Amount.............. $ (265) $ (534)
SMALLCAP GROWTH FUND:
Class A Shares............. 981 544
Amount.............. $ 23,863 $ 10,372
Class B Shares............. 220 191
Amount.............. $ 4,876 $ 3,446
Class C Shares............. 211 142
Amount.............. $ 4,665 $ 2,486
Class H Shares............. (216) (173)
Amount.............. $ (4,749) $ (2,779)
Class L Shares............. (272) (637)
Amount.............. $ (6,513) $(11,123)
Class M Shares............. (136) (99)
Amount.............. $ (2,982) $ (1,596)
Class N Shares............. (19) (40)
Amount.............. $ (397) $ (588)
Class Y Shares............. 233 --
Amount.............. $ 5,474 $ --
</Table>
233
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
STOCK FUND:
Class A Shares............. 9,128 8,443 -- -- (12,557) (12,312)
Amount.............. $ 155,036 $123,104 $ -- $ -- $(213,601) $(177,679)
Class B Shares............. 1,547 1,969 -- -- (4,292) (4,275)
Amount.............. $ 24,965 $ 27,216 $ -- $ -- $ (68,863) $ (58,344)
Class C Shares............. 1,481 2,360 -- -- (5,542) (5,967)
Amount.............. $ 24,036 $ 32,634 $ -- $ -- $ (89,286) $ (82,117)
Class Y Shares............. 2,167 1,029 -- -- (91) (888)
Amount.............. $ 38,196 $ 15,485 $ -- $ -- $ (1,606) $ (11,848)
TAX-FREE CALIFORNIA FUND:
Class A Shares............. 692 334 52 36 (394) (82)
Amount.............. $ 6,995 $ 3,372 $ 519 $ 363 $ (3,908) $ (818)
Class B Shares............. 26 86 3 4 (114) (6)
Amount.............. $ 264 $ 864 $ 29 $ 46 $ (1,147) $ (58)
Class C Shares............. 123 23 2 3 (109) (2)
Amount.............. $ 1,252 $ 227 $ 18 $ 35 $ (1,097) $ (20)
TAX-FREE MINNESOTA FUND:
Class A Shares............. 148 252 22 10 (69) (150)
Amount.............. $ 1,553 $ 2,656 $ 224 $ 103 $ (718) $ (1,569)
Class B Shares............. 21 48 3 1 (13) (21)
Amount.............. $ 220 $ 506 $ 26 $ 11 $ (134) $ (220)
Class C Shares............. 1 21 2 1 (11) (12)
Amount.............. $ 5 $ 228 $ 20 $ 11 $ (115) $ (127)
Class E Shares............. 33 36 134 93 (394) (280)
Amount.............. $ 364 $ 377 $ 1,408 $ 985 $ (4,133) $ (2,970)
Class H Shares............. 9 -- 1 1 (14) (41)
Amount.............. $ 100 $ -- $ 8 $ 6 $ (149) $ (433)
Class L Shares............. 16 38 15 10 (46) (88)
Amount.............. $ 173 $ 403 $ 152 $ 111 $ (475) $ (929)
Class M Shares............. -- 1 1 1 (24) (12)
Amount.............. $ 1 $ 6 $ 15 $ 15 $ (265) $ (128)
Class N Shares............. -- 1 1 1 (1) (1)
Amount.............. $ 4 $ 14 $ 9 $ 5 $ (11) $ (10)
Class Y Shares............. -- -- @@ @@ -- --
Amount.............. $ -- $ -- $ @@ $ @@ $ -- $ --
TAX-FREE NATIONAL FUND:
Class A Shares............. 1,938 2,067 131 66 (871) (1,275)
Amount.............. $ 21,611 $ 23,066 $ 1,457 $ 736 $ (9,642) $ (14,174)
Class B Shares............. 85 411 24 19 (150) (166)
Amount.............. $ 954 $ 4,558 $ 261 $ 209 $ (1,648) $ (1,827)
Class C Shares............. 336 661 24 18 (301) (269)
Amount.............. $ 3,709 $ 7,349 $ 268 $ 196 $ (3,329) $ (2,975)
Class E Shares............. 71 28 124 155 (408) (604)
Amount.............. $ 821 $ 307 $ 1,366 $ 1,718 $ (4,526) $ (6,762)
Class H Shares............. @@ @@ 4 10 (104) (110)
Amount.............. $ 3 $ 7 $ 46 $ 110 $ (1,161) $ (1,211)
Class L Shares............. 118 90 30 32 (137) (100)
Amount.............. $ 1,319 $ 993 $ 328 $ 351 $ (1,512) $ (1,110)
Class M Shares............. 24 1 5 6 (16) (33)
Amount.............. $ 270 $ 9 $ 51 $ 72 $ (175) $ (368)
Class N Shares............. @@ 3 2 2 (8) (4)
Amount.............. $ 2 $ 34 $ 26 $ 30 $ (96) $ (46)
Class Y Shares............. -- -- @@ @@ -- --
Amount.............. $ -- $ -- $ @@ $ @@ $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
STOCK FUND:
Class A Shares............. (3,429) (3,869)
Amount.............. $ (58,564) $(54,575)
Class B Shares............. (2,745) (2,306)
Amount.............. $ (43,898) $(31,128)
Class C Shares............. (4,061) (3,607)
Amount.............. $ (65,250) $(49,483)
Class Y Shares............. 2,076 141
Amount.............. $ 36,590 $ 3,637
TAX-FREE CALIFORNIA FUND:
Class A Shares............. 350 288
Amount.............. $ 3,606 $ 2,917
Class B Shares............. (85) 84
Amount.............. $ (854) $ 852
Class C Shares............. 16 24
Amount.............. $ 173 $ 242
TAX-FREE MINNESOTA FUND:
Class A Shares............. 101 112
Amount.............. $ 1,059 $ 1,190
Class B Shares............. 11 28
Amount.............. $ 112 $ 297
Class C Shares............. (8) 10
Amount.............. $ (90) $ 112
Class E Shares............. (226) (152)
Amount.............. $ (2,361) $ (1,608)
Class H Shares............. (4) (40)
Amount.............. $ (41) $ (427)
Class L Shares............. (15) (40)
Amount.............. $ (150) $ (415)
Class M Shares............. (23) (10)
Amount.............. $ (249) $ (107)
Class N Shares............. -- 1
Amount.............. $ 2 $ 9
Class Y Shares............. @@ @@
Amount.............. $ @@ $ @@
TAX-FREE NATIONAL FUND:
Class A Shares............. 1,198 858
Amount.............. $ 13,426 $ 9,628
Class B Shares............. (41) 264
Amount.............. $ (433) $ 2,940
Class C Shares............. 59 410
Amount.............. $ 648 $ 4,570
Class E Shares............. (213) (421)
Amount.............. $ (2,339) $ (4,737)
Class H Shares............. (100) (100)
Amount.............. $ (1,112) $ (1,094)
Class L Shares............. 11 22
Amount.............. $ 135 $ 234
Class M Shares............. 13 (26)
Amount.............. $ 146 $ (287)
Class N Shares............. (6) 1
Amount.............. $ (68) $ 18
Class Y Shares............. @@ @@
Amount.............. $ @@ $ @@
</Table>
234
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
TAX-FREE NEW YORK FUND:
Class A Shares............. 139 21 43 28 (17) (2)
Amount.............. $ 1,432 $ 218 $ 437 $ 284 $ (181) $ (22)
Class B Shares............. 42 11 4 3 @@ (10)
Amount.............. $ 431 $ 109 $ 48 $ 28 $ @@ $ (101)
Class C Shares............. 57 37 6 3 (11) (3)
Amount.............. $ 583 $ 378 $ 59 $ 34 $ (104) $ (34)
TOTAL RETURN BOND FUND:
Class A Shares............. 9,732 20,815 1,649 1,161 (8,220) (17,801)
Amount.............. $ 105,640 $230,384 $17,740 $12,816 $ (88,960) $(196,901)
Class B Shares............. 1,337 3,361 498 405 (2,978) (3,330)
Amount.............. $ 14,446 $ 37,093 $ 5,327 $ 4,445 $ (32,116) $ (36,783)
Class C Shares............. 1,735 4,024 491 407 (3,976) (4,503)
Amount.............. $ 18,830 $ 44,598 $ 5,276 $ 4,477 $ (42,993) $ (49,934)
Class Y Shares............. 4,596 3,008 419 261 (1,204) (1,577)
Amount.............. $ 50,328 $ 33,786 $ 4,549 $ 2,916 $ (13,251) $ (17,751)
U.S. GOVERNMENT SECURITIES FUND:
Class A Shares............. 1,937 11,235 229 314 (3,389) (12,412)
Amount.............. $ 18,712 $111,585 $ 2,207 $ 3,103 $ (32,742) $(122,873)
Class B Shares............. 383 2,842 96 148 (1,718) (3,017)
Amount.............. $ 3,698 $ 28,199 $ 920 $ 1,464 $ (16,532) $ (29,559)
Class C Shares............. 495 5,479 54 100 (1,863) (6,954)
Amount.............. $ 4,749 $ 54,470 $ 513 $ 985 $ (17,923) $ (68,476)
Class E Shares............. 110 264 451 516 (2,198) (2,526)
Amount.............. $ 1,064 $ 2,616 $ 4,337 $ 5,089 $ (21,185) $ (24,872)
Class H Shares............. 15 30 16 25 (277) (350)
Amount.............. $ 146 $ 299 $ 158 $ 241 $ (2,663) $ (3,443)
Class L Shares............. 235 351 149 168 (852) (1,017)
Amount.............. $ 2,270 $ 3,476 $ 1,438 $ 1,662 $ (8,212) $ (10,045)
Class M Shares............. 27 51 14 19 (132) (271)
Amount.............. $ 257 $ 510 $ 133 $ 187 $ (1,277) $ (2,658)
Class N Shares............. 5 12 4 6 (43) (48)
Amount.............. $ 42 $ 120 $ 41 $ 56 $ (413) $ (476)
Class Y Shares............. -- -- @@ @@ -- --
Amount.............. $ -- $ -- $ @@ $ @@ $ -- $ --
VALUE FUND:
Class A Shares............. 1,944 1,775 39 30 (849) (1,040)
Amount.............. $ 18,291 $ 14,409 $ 368 $ 231 $ (8,023) $ (8,159)
Class B Shares............. 241 275 1 -- (137) (144)
Amount.............. $ 2,259 $ 2,202 $ 13 $ -- $ (1,282) $ (1,118)
Class C Shares............. 279 328 2 -- (310) (383)
Amount.............. $ 2,600 $ 2,572 $ 18 $ -- $ (2,903) $ (3,003)
Class Y Shares............. 2,200 @@ @@ -- (3) (27)
Amount.............. $ 20,813 $ 3 $ @@ $ -- $ (31) $ (229)
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
TAX-FREE NEW YORK FUND:
Class A Shares............. 165 47
Amount.............. $ 1,688 $ 480
Class B Shares............. 46 4
Amount.............. $ 479 $ 36
Class C Shares............. 52 37
Amount.............. $ 538 $ 378
TOTAL RETURN BOND FUND:
Class A Shares............. 3,161 4,175
Amount.............. $ 34,420 $ 46,299
Class B Shares............. (1,143) 436
Amount.............. $ (12,343) $ 4,755
Class C Shares............. (1,750) (72)
Amount.............. $ (18,887) $ (859)
Class Y Shares............. 3,811 1,692
Amount.............. $ 41,626 $ 18,951
U.S. GOVERNMENT SECURITIES
Class A Shares............. (1,223) (863)
Amount.............. $ (11,823) $ (8,185)
Class B Shares............. (1,239) (27)
Amount.............. $ (11,914) $ 104
Class C Shares............. (1,314) (1,375)
Amount.............. $ (12,661) $(13,021)
Class E Shares............. (1,637) (1,746)
Amount.............. $ (15,784) $(17,167)
Class H Shares............. (246) (295)
Amount.............. $ (2,359) $ (2,903)
Class L Shares............. (468) (498)
Amount.............. $ (4,504) $ (4,907)
Class M Shares............. (91) (201)
Amount.............. $ (887) $ (1,961)
Class N Shares............. (34) (30)
Amount.............. $ (330) $ (300)
Class Y Shares............. @@ @@
Amount.............. $ @@ $ @@
VALUE FUND:
Class A Shares............. 1,134 765
Amount.............. $ 10,636 $ 6,481
Class B Shares............. 105 131
Amount.............. $ 990 $ 1,084
Class C Shares............. (29) (55)
Amount.............. $ (285) $ (431)
Class Y Shares............. 2,197 (27)
Amount.............. $ 20,782 $ (226)
</Table>
235
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2004
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED
---------------------- -------------------- ----------------------
2004 2003 2004 2003 2004 2003
---------- -------- -------- -------- --------- ---------
VALUE OPPORTUNITIES FUND:
Class A Shares............. 1,411 384 -- -- (148) (178)
Amount.............. $ 18,872 $ 4,094 $ -- $ -- $ (1,981) $ (1,747)
Class B Shares............. 315 126 -- -- (52) (12)
Amount.............. $ 3,989 $ 1,291 $ -- $ -- $ (660) $ (123)
Class C Shares............. 349 106 -- -- (65) (15)
Amount.............. $ 4,436 $ 1,098 $ -- $ -- $ (811) $ (138)
Class H Shares............. 26 40 -- -- (153) (110)
Amount.............. $ 339 $ 371 $ -- $ -- $ (1,970) $ (1,049)
Class L Shares............. 206 156 -- -- (247) (414)
Amount.............. $ 2,786 $ 1,619 $ -- $ -- $ (3,318) $ (4,185)
Class M Shares............. 42 65 -- -- (122) (124)
Amount.............. $ 541 $ 621 $ -- $ -- $ (1,566) $ (1,196)
Class N Shares............. 9 14 -- -- (19) (39)
Amount.............. $ 116 $ 135 $ -- $ -- $ (253) $ (360)
Class Y Shares............. 714 -- -- -- (1) --
Amount.............. $ 9,718 $ -- $ -- $ -- $ (16) $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
----------------------
2004 2003
---------- --------
VALUE OPPORTUNITIES FUND:
Class A Shares............. 1,263 206
Amount.............. $ 16,891 $ 2,347
Class B Shares............. 263 114
Amount.............. $ 3,329 $ 1,168
Class C Shares............. 284 91
Amount.............. $ 3,625 $ 960
Class H Shares............. (127) (70)
Amount.............. $ (1,631) $ (678)
Class L Shares............. (41) (258)
Amount.............. $ (532) $ (2,566)
Class M Shares............. (80) (59)
Amount.............. $ (1,025) $ (575)
Class N Shares............. (10) (25)
Amount.............. $ (137) $ (225)
Class Y Shares............. 713 --
Amount.............. $ 9,702 $ --
</Table>
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 loss 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, expiration of capital loss carryforwards,
distributions upon redemptions 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, 2004, the Funds recorded the following reclassifications to
increase (decrease) the accounts listed below.
<Table>
<Caption>
UNDISTRIBUTED ACCUMULATED
NET NET
INVESTMENT REALIZED PAID-IN-
INCOME GAIN (LOSS) CAPITAL
------------- ----------- --------
Advisers Fund............................................... $ (42) $ 42 $ --
Aggressive Growth Allocation Fund........................... 28 -- (28)
Balanced Allocation Fund.................................... 1 -- (1)
Capital Appreciation Fund................................... 24,513 2,584 (27,097)
Disciplined Equity Fund..................................... (41) 40 1
Dividend and Growth Fund.................................... (269) 269 --
Equity Income Fund.......................................... (5) 13 (8)
Focus Fund.................................................. 595 34 (629)
Global Communications Fund.................................. (14) 15 (1)
Global Financial Services Fund.............................. (4) 4 --
Global Health Fund.......................................... 2,803 (1,594) (1,209)
Global Leaders Fund......................................... 3,465 661 (4,126)
Global Technology Fund...................................... 1,125 42 (1,167)
Growth Allocation Fund...................................... 19 -- (19)
Growth Fund................................................. 4,846 177 (5,023)
Growth Opportunities Fund................................... 4,789 311 (5,100)
High Yield Fund............................................. 238 (238) --
Income Fund................................................. 92 (92) --
Inflation Plus Fund......................................... 2 (2) --
International Capital Appreciation Fund..................... 127 48 (175)
International Opportunities Fund............................ (61) 140 (79)
International Small Company Fund............................ (48) 44 4
MidCap Fund................................................. 16,324 360 (16,684)
MidCap Value Fund........................................... 2,040 (2,041) 1
Small Company Fund.......................................... 4,048 156 (4,204)
</Table>
236
- --------------------------------------------------------------------------------
<Table>
<Caption>
UNDISTRIBUTED ACCUMULATED
NET NET
INVESTMENT REALIZED PAID-IN-
INCOME GAIN (LOSS) CAPITAL
------------- ----------- --------
SmallCap Growth Fund........................................ 2,027 75 (2,102)
Stock Fund.................................................. 1,234 131 (1,365)
Total Return Bond Fund...................................... 1,950 (1,950) --
U.S. Government Securities Fund............................. 255 4,136 (4,391)
Value Fund.................................................. (17) 17 --
Value Opportunities Fund.................................... 143 5 (148)
</Table>
8. CAPITAL LOSS CARRYFORWARDS:
As of October 31, 2004 (tax year-end), the following Funds had capital loss
carryforwards for U.S. federal income tax purposes of approximately:
<Table>
<Caption>
YEAR OF EXPIRATION
-----------------------------------------------------------
FUND 2007 2008 2009 2010 2011 2012
---- ------- ------- -------- -------- -------- ------
Advisers Fund.............................................. $ $ $ 8,976 $176,475 $112,444 $
Capital Appreciation Fund.................................. 75,574 102,655
Disciplined Equity Fund.................................... 16,069 67,760 26,636
Focus Fund................................................. 2,871 14,398
Global Communications Fund................................. 1,272 3,269 684
Global Financial Services Fund............................. 730 536
Global Leaders Fund........................................ 60,140
Global Technology Fund..................................... 26,641 34,893
Growth Fund................................................ 65,033 6,917
Growth Opportunities Fund.................................. 76,626
High Yield Fund............................................ 10,267 19,805 1,643 25,246 28,570
International Capital Appreciation Fund.................... 15
International Opportunities Fund........................... 3,620 15,114 19,362 2,135
Short Duration Fund........................................ 221 295
Small Company Fund......................................... 46,261 31,914
SmallCap Growth Fund....................................... 46,627 6,564 3,251
Stock Fund................................................. 116,832 246,128 196,018
Tax-Free California Fund................................... 48
U.S. Government Securities Fund............................ 2,205 3,597 672 3,591
Value Fund................................................. 1,849 2,990
Value Opportunities Fund................................... 3,381 672
</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 $650,000 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 year ended October 31, 2004, the Funds did
not have any borrowings under this facility.
237
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD ADVISERS FUND
For the Year Ended October 31, 2004(g)
Class A...................... $14.19 $ 0.18 $ 0.38 $(0.18) $ -- $-- $14.57
Class B...................... 14.05 0.07 0.38 (0.07) -- -- 14.43
Class C...................... 14.18 0.09 0.37 (0.08) -- -- 14.56
Class Y...................... 14.37 0.25 0.36 (0.26) -- -- 14.72
For the Year Ended October 31, 2003(g)
Class A...................... 12.67 0.19 1.52 (0.19) -- -- 14.19
Class B...................... 12.54 0.09 1.51 (0.09) -- -- 14.05
Class C...................... 12.66 0.11 1.52 (0.11) -- -- 14.18
Class Y...................... 12.82 0.27 1.54 (0.26) -- -- 14.37
For the Year Ended October 31, 2002(g)
Class A...................... 14.38 0.21 (1.69) (0.23) -- -- 12.67
Class B...................... 14.24 0.11 (1.68) (0.13) -- -- 12.54
Class C...................... 14.37 0.12 (1.69) (0.14) -- -- 12.66
Class Y...................... 14.54 0.13 (1.55) (0.30) -- -- 12.82
For the Year Ended October 31, 2001
Class A...................... 17.07 0.30 (2.04) (0.31) (0.64) -- 14.38
Class B...................... 16.90 0.20 (2.03) (0.19) (0.64) -- 14.24
Class C...................... 17.05 0.20 (2.04) (0.20) (0.64) -- 14.37
Class Y...................... 17.24 0.38 (2.06) (0.38) (0.64) -- 14.54
For the Ten Months Ended October 31, 2000
Class A...................... 17.02 0.24 0.19 (0.22) (0.16) -- 17.07
Class B...................... 16.87 0.15 0.17 (0.13) (0.16) -- 16.90
Class C...................... 17.02 0.15 0.17 (0.13) (0.16) -- 17.05
Class Y...................... 17.16 0.33 0.16 (0.25) (0.16) -- 17.24
For the Year Ended December 31, 1999
Class A...................... 15.71 0.27 1.60 (0.25) (0.31) -- 17.02
Class B...................... 15.59 0.16 1.58 (0.15) (0.31) -- 16.87
Class C...................... 15.73(f) 0.17(f) 1.58(f) (0.15)(f) (0.31)(f) -- 17.02(f)
Class Y...................... 15.80 0.35 1.61 (0.29) (0.31) -- 17.16
THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND
From (commencement of operations) May 28, 2004, through October 31, 2004
Class A...................... 10.00 (0.01) 0.39 -- -- -- 10.38
Class B...................... 10.00 (0.02) 0.37 -- -- -- 10.35
Class C...................... 10.00 (0.02) 0.37 -- -- -- 10.35
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD ADVISERS FUND
For the Year Ended October 31
Class A...................... 3.93%(k) $1,539,264 1.22% 1.22%(j) 1.23% 42%
Class B...................... 3.21(k) 550,499 1.95 1.95(j) 0.50 --
Class C...................... 3.27(k) 355,711 1.86 1.86(j) 0.58 --
Class Y...................... 4.22 13,587 0.74 0.74(j) 1.71 --
For the Year Ended October 31
Class A...................... 13.62 1,470,569 1.40 1.39 1.44 46
Class B...................... 12.86 593,179 2.13 2.12 0.72 --
Class C...................... 12.92 421,814 2.00 2.00 0.84 --
Class Y...................... 14.28 8,714 0.81 0.81 1.98 --
For the Year Ended October 31
Class A...................... (10.42) 1,245,331 1.41 1.36 1.56 44
Class B...................... (11.11) 567,953 2.08 2.08 0.84 --
Class C...................... (10.99) 422,520 1.97 1.97 0.95 --
Class Y...................... (9.89) 3,997 0.78 0.78 2.15 --
For the Year Ended October 31
Class A...................... (10.67) 1,088,858 1.27 1.22 1.99 37
Class B...................... (11.27) 622,519 1.93 1.93 1.28 --
Class C...................... (11.26) 478,194 1.93 1.93 1.28 --
Class Y...................... (10.20) 56,320 0.74 0.74 2.48 --
For the Ten Months Ended Octo
Class A...................... 2.52(d) 893,954 1.26(b) 1.21(b) 1.76(b) 38
Class B...................... 1.89(d) 631,930 1.92(b) 1.92(b) 1.05(b) --
Class C...................... 1.89(d) 432,171 1.92(b) 1.92(b) 1.05(b) --
Class Y...................... 2.90(d) 64,889 0.75(b) 0.75(b) 2.22(b) --
For the Year Ended December 3
Class A...................... 12.08 693,136 1.31 1.26 1.72 35
Class B...................... 11.29 555,338 1.97 1.97 1.00 --
Class C...................... 11.29 323,631 1.99 1.99 0.99 --
Class Y...................... 12.62 68,133 0.79 0.79 2.18 --
THE HARTFORD AGGRESSIVE GROWTH
From (commencement of operati
Class A...................... 3.80(d) 12,415 0.86(b)(l) 0.67(b)(l) (0.58)(b) 3
Class B...................... 3.50(d) 4,532 1.69(b)(l) 1.32(b)(l) (1.23)(b) --
Class C...................... 3.50(d) 5,424 1.59(b)(l) 1.32(b)(l) (1.23)(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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.22%, 1.94%, 1.86% and
0.74% for classes A, B, C and Y, respectively.
(k)Without the inclusion of the Payment from Affiliate as noted on the Statement
of Operations, the total return would have been 3.74%, 2.95% and 3.06% for
classes A, B and C, respectively. The net asset value impact of the Payment
from Affiliate was $0.03, $0.04 and $0.03 for classes A, B and C,
respectively.
(l)Expense ratios do not include expenses of the underlying funds.
The accompanying notes are an integral part of these financial statements.
238
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD BALANCED ALLOCATION FUND
From (commencement of operations) May 28, 2004, through October 31, 2004
Class A...................... $10.00 $ 0.02 $ 0.30 $(0.02) $ -- $-- $10.30
Class B...................... 10.00 0.01 0.27 @@ -- -- 10.28
Class C...................... 10.00 -- 0.28 @@ -- -- 10.28
THE HARTFORD CAPITAL APPRECIATION FUND
For the Year Ended October 31, 2004
Class A...................... 26.50 (0.01) 4.31 -- -- -- 30.80
Class B...................... 24.97 (0.21) 4.06 -- -- -- 28.82
Class C...................... 25.00 (0.18) 4.06 -- -- -- 28.88
Class Y...................... 27.64 0.11 4.54 -- -- -- 32.29
For the Year Ended October 31, 2003
Class A...................... 20.47 (0.04) 6.07 -- -- -- 26.50
Class B...................... 19.44 (0.19) 5.72 -- -- -- 24.97
Class C...................... 19.44 (0.16) 5.72 -- -- -- 25.00
Class Y...................... 21.23 0.08 6.33 -- -- -- 27.64
For the Year Ended October 31, 2002(g)
Class A...................... 24.12 (0.06) (3.59) -- -- -- 20.47
Class B...................... 23.06 (0.25) (3.37) -- -- -- 19.44
Class C...................... 23.04 (0.22) (3.38) -- -- -- 19.44
Class Y...................... 24.85 0.04 (3.66) -- -- -- 21.23
For the Year Ended October 31, 2001
Class A...................... 33.20 0.05 (5.12) -- (4.01) -- 24.12
Class B...................... 32.14 (0.02) (5.05) -- (4.01) -- 23.06
Class C...................... 32.10 (0.06) (4.99) -- (4.01) -- 23.04
Class Y...................... 33.94 0.08 (5.16) -- (4.01) -- 24.85
For the Ten Months Ended October 31, 2000
Class A...................... 31.72 (0.01) 3.15 -- (1.66) -- 33.20
Class B...................... 30.92 (0.12) 3.00 -- (1.66) -- 32.14
Class C...................... 30.89 (0.15) 3.02 -- (1.66) -- 32.10
Class Y...................... 32.27 0.03 3.30 -- (1.66) -- 33.94
For the Year Ended December 31, 1999
Class A...................... 20.42 (0.07) 13.28 -- (1.91) -- 31.72
Class B...................... 20.08 (0.19) 12.94 -- (1.91) -- 30.92
Class C...................... 20.08(f) (0.12)(f) 12.84(f) -- (1.91)(f) -- 30.89(f)
Class Y...................... 20.66 -- 13.52 -- (1.91) -- 32.27
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD BALANCED ALLOCATI
From (commencement of operati
Class A...................... 3.15%(d) $ 67,293 0.62%(b)(k) 0.59%(b)(k) 0.99%(b) @@%
Class B...................... 2.82(d) 18,841 1.45(b)(k) 1.29(b)(k) 0.33(b) --
Class C...................... 2.82(d) 30,414 1.38(b)(k) 1.29(b)(k) 0.30(b) --
THE HARTFORD CAPITAL APPRECIAT
For the Year Ended October 31
Class A...................... 16.23 4,203,178 1.35 1.35(j) (0.05) 78
Class B...................... 15.42 1,432,121 2.06 2.06(j) (0.78) --
Class C...................... 15.52 1,348,972 1.97 1.97(j) (0.68) --
Class Y...................... 16.82 116,527 0.79 0.79(j) 0.50 --
For the Year Ended October 31
Class A...................... 29.46 2,357,913 1.45 1.43 (0.13) 113
Class B...................... 28.45 1,140,154 2.17 2.17 (0.87) --
Class C...................... 28.60 981,246 2.05 2.05 (0.75) --
Class Y...................... 30.19 48,372 0.85 0.85 0.46 --
For the Year Ended October 31
Class A...................... (15.13) 1,700,765 1.45 1.40 (0.28) 112
Class B...................... (15.70) 884,553 2.14 2.14 (1.04) --
Class C...................... (15.62) 738,988 2.02 2.02 (0.92) --
Class Y...................... (14.57) 25,378 0.80 0.80 0.27 --
For the Year Ended October 31
Class A...................... (17.24) 1,585,508 1.33 1.28 (0.22) 132
Class B...................... (17.88) 876,826 1.99 1.99 (0.93) --
Class C...................... (17.84) 666,372 1.99 1.99 (0.93) --
Class Y...................... (16.85) 76,592 0.78 0.78 0.28 --
For the Ten Months Ended Octo
Class A...................... 10.18(d) 1,309,836 1.32(b) 1.27(b) (0.42)(b) 130
Class B...................... 9.59(d) 826,495 1.97(b) 1.97(b) (1.12)(b) --
Class C...................... 9.56(d) 494,391 1.99(b) 1.99(b) (1.14)(b) --
Class Y...................... 10.60(d) 89,477 0.80(b) 0.80(b) 0.05(b) --
For the Year Ended December 3
Class A...................... 66.76 797,656 1.38 1.33 (0.61) 169
Class B...................... 65.58 569,201 2.02 2.02 (1.31) --
Class C...................... 65.44 191,466 2.09 2.09 (1.37) --
Class Y...................... 67.49 64,688 0.87 0.87 (0.16) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.32%, 2.03%, 1.94% and
0.76% for classes A, B, C and Y, respectively.
(k)Expense ratios do not include expenses of the underlying funds.
@@ The amount per share and turnover rate rounds to zero.
239
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD CONSERVATIVE ALLOCATION FUND
From (commencement of operations) May 28, 2004, through October 31, 2004
Class A...................... $10.00 $ 0.03 $ 0.27 $(0.03) $ -- $-- $10.27
Class B...................... 10.00 0.02 0.25 (0.01) -- -- 10.26
Class C...................... 10.00 0.02 0.25 (0.01) -- -- 10.26
THE HARTFORD DISCIPLINED EQUITY FUND
For the Year Ended October 31, 2004
Class A...................... 10.08 0.03 0.57 (0.01) -- -- 10.67
Class B...................... 9.70 (0.05) 0.55 -- -- -- 10.20
Class C...................... 9.71 (0.05) 0.56 -- -- -- 10.22
Class Y...................... 10.36 (0.01) 0.69 (0.05) -- -- 10.99
For the Year Ended October 31, 2003
Class A...................... 8.43 0.02 1.63 -- -- -- 10.08
Class B...................... 8.17 (0.04) 1.57 -- -- -- 9.70
Class C...................... 8.18 (0.04) 1.57 -- -- -- 9.71
Class Y...................... 8.63 0.08 1.65 -- -- -- 10.36
For the Year Ended October 31, 2002(g)
Class A...................... 10.36 -- (1.93) -- -- -- 8.43
Class B...................... 10.10 (0.11) (1.82) -- -- -- 8.17
Class C...................... 10.11 (0.06) (1.87) -- -- -- 8.18
Class Y...................... 10.52 0.05 (1.94) -- -- -- 8.63
For the Year Ended October 31, 2001
Class A...................... 13.63 -- (2.75) -- (0.52) -- 10.36
Class B...................... 13.40 (0.05) (2.73) -- (0.52) -- 10.10
Class C...................... 13.41 (0.06) (2.72) -- (0.52) -- 10.11
Class Y...................... 13.78 0.03 (2.77) -- (0.52) -- 10.52
For the Ten Months Ended October 31, 2000
Class A...................... 13.72 (0.02) 0.04 -- (0.11) -- 13.63
Class B...................... 13.58 (0.06) (0.01) -- (0.11) -- 13.40
Class C...................... 13.58 (0.06) -- -- (0.11) -- 13.41
Class Y...................... 13.83 0.02 0.04 -- (0.11) -- 13.78
For the Year Ended December 31, 1999
Class A...................... 11.45 0.01 2.36 -- (0.10) -- 13.72
Class B...................... 11.41 (0.02) 2.29 -- (0.10) -- 13.58
Class C...................... 11.41(f) (0.03)(f) 2.30(f) -- (0.10)(f) -- 13.58(f)
Class Y...................... 11.48 0.06 2.39 -- (0.10) -- 13.83
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD CONSERVATIVE ALLO
From (commencement of operati
Class A...................... 2.96%(d) $ 33,921 0.63%(b)(l) 0.60%(b)(l) 1.70%(b) @@%
Class B...................... 2.70(d) 4,993 1.44(b)(l) 1.25(b)(l) 1.05(b) --
Class C...................... 2.70(d) 10,807 1.38(b)(l) 1.25(b)(l) 1.17(b) --
THE HARTFORD DISCIPLINED EQUIT
For the Year Ended October 31
Class A...................... 5.92 241,014 1.46 1.45(j) 0.30 62
Class B...................... 5.16 44,561 2.34 2.15(j) (0.41) --
Class C...................... 5.25(k) 40,965 2.10 2.10(j) (0.36) --
Class Y...................... 6.55 19,578 0.88 0.88(j) 0.95 --
For the Year Ended October 31
Class A...................... 19.57 243,842 1.56 1.45 0.24 76
Class B...................... 18.73 47,888 2.30 2.15 (0.46) --
Class C...................... 18.70 46,162 2.17 2.15 (0.46) --
Class Y...................... 20.05 622 0.98 0.98 0.70 --
For the Year Ended October 31
Class A...................... (18.63) 230,545 1.57 1.45 (0.03) 89
Class B...................... (19.11) 43,431 2.26 2.15 (1.03) --
Class C...................... (19.09) 44,054 2.13 2.13 (0.80) --
Class Y...................... (17.97) 661 0.93 0.93 0.46 --
For the Year Ended October 31
Class A...................... (20.90) 239,698 1.43 1.38 (0.07) 80
Class B...................... (21.51) 43,210 2.11 2.11 (0.80) --
Class C...................... (21.50) 60,409 2.09 2.09 (0.78) --
Class Y...................... (20.60) 440 0.96 0.96 0.34 --
For the Ten Months Ended Octo
Class A...................... 0.15(d) 197,176 1.43(b) 1.38(b) (0.17)(b) 63
Class B...................... (0.51)(d) 41,126 2.11(b) 2.11(b) (0.90)(b) --
Class C...................... (0.44)(d) 63,650 2.09(b) 2.09(b) (0.88)(b) --
Class Y...................... 0.44(d) 490 0.95(b) 0.95(b) 0.26(b) --
For the Year Ended December 3
Class A...................... 20.80 74,764 1.49 1.44 0.01 53
Class B...................... 20.00 20,375 2.13 2.13 (0.68) --
Class C...................... 19.98 29,265 2.16 2.15 (0.69) --
Class Y...................... 21.45 480 0.93 0.93 0.51 --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.44%, 2.14%, 2.09% and
0.87% for classes A, B, C and Y, respectively.
(k)Without the inclusion of the Payment from Affiliate as noted on the Statement
of Operations, the total return would have been 5.24% for Class C. The net
asset value impact of the Payment from Affiliate was less than 0.01 for class
C.
(l)Expense ratios do not include expenses of the underlying funds.
@@ The amount rounds to zero.
The accompanying notes are an integral part of these financial statements.
240
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD DIVIDEND AND GROWTH FUND
For the Year Ended October 31, 2004
Class A...................... $15.94 $0.17 $ 1.82 $(0.14) $ -- $-- $17.79
Class B...................... 15.75 0.03 1.80 (0.02) -- -- 17.56
Class C...................... 15.72 0.06 1.79 (0.04) -- -- 17.53
Class Y...................... 16.11 0.24 1.86 (0.24) -- -- 17.97
For the Year Ended October 31, 2003
Class A...................... 13.58 0.12 2.37 (0.13)(i) -- -- 15.94
Class B...................... 13.43 0.03 2.32 (0.03)(i) -- -- 15.75
Class C...................... 13.40 0.04 2.32 (0.04)(i) -- -- 15.72
Class Y...................... 13.73 0.19 2.40 (0.21)(i) -- -- 16.11
For the Year Ended October 31, 2002(g)
Class A...................... 15.53 0.12 (1.71) (0.12) (0.24) -- 13.58
Class B...................... 15.37 0.02 (1.70) (0.02) (0.24) -- 13.43
Class C...................... 15.33 0.03 (1.69) (0.03) (0.24) -- 13.40
Class Y...................... 15.71 0.12 (1.65) (0.21) (0.24) -- 13.73
For the Year Ended October 31, 2001
Class A...................... 17.78 0.18 (1.49) (0.17) (0.77) -- 15.53
Class B...................... 17.60 0.07 (1.48) (0.05) (0.77) -- 15.37
Class C...................... 17.57 0.08 (1.48) (0.07) (0.77) -- 15.33
Class Y...................... 17.96 0.25 (1.48) (0.25) (0.77) -- 15.71
For the Ten Months Ended October 31, 2000
Class A...................... 16.85 0.15 0.98 (0.12) (0.08) -- 17.78
Class B...................... 16.69 0.04 0.99 (0.04) (0.08) -- 17.60
Class C...................... 16.67 0.07 0.95 (0.04) (0.08) -- 17.57
Class Y...................... 16.96 0.22 1.02 (0.16) (0.08) -- 17.96
For the Year Ended December 31, 1999
Class A...................... 16.62 0.15 0.60 (0.17) (0.35) -- 16.85
Class B...................... 16.47 0.04 0.58 (0.05) (0.35) -- 16.69
Class C...................... 16.48(f) 0.04(f) 0.58(f) (0.08)(f) (0.35)(f) -- 16.67(f)
Class Y...................... 16.69 0.21 0.63 (0.22) (0.35) -- 16.96
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD DIVIDEND AND GROW
For the Year Ended October 31
Class A...................... 12.53%(k) $1,838,567 1.23% 1.23%(j) 0.96% 25%
Class B...................... 11.62 319,512 2.04 2.04(j) 0.16 --
Class C...................... 11.76(k) 277,706 1.90 1.90(j) 0.29 --
Class Y...................... 13.06 69,088 0.75 0.75(j) 1.44 --
For the Year Ended October 31
Class A...................... 18.42 1,296,982 1.41 1.40 0.88 31
Class B...................... 17.52 257,856 2.14 2.13 0.16 --
Class C...................... 17.67 230,348 2.02 2.02 0.27 --
Class Y...................... 19.03 42,107 0.81 0.81 1.44 --
For the Year Ended October 31
Class A...................... (10.64) 808,633 1.46 1.40 0.78 33
Class B...................... (11.15) 185,731 2.13 2.10 0.08 --
Class C...................... (11.08) 164,260 2.02 2.02 0.15 --
Class Y...................... (10.00) 14,790 0.82 0.82 1.36 --
For the Year Ended October 31
Class A...................... (7.67) 521,543 1.36 1.31 1.06 55
Class B...................... (8.34) 150,592 2.03 2.03 0.34 --
Class C...................... (8.33) 117,108 2.03 2.03 0.35 --
Class Y...................... (7.20) 26,326 0.82 0.82 1.55 --
For the Ten Months Ended Octo
Class A...................... 6.77(d) 294,903 1.36(b) 1.31(b) 0.99(b) 56
Class B...................... 6.17(d) 118,936 2.03(b) 2.03(b) 0.27(b) --
Class C...................... 6.17(d) 63,503 2.03(b) 2.03(b) 0.27(b) --
Class Y...................... 7.37(d) 22,441 0.85(b) 0.85(b) 1.45(b) --
For the Year Ended December 3
Class A...................... 4.57 242,054 1.38 1.33 0.94 50
Class B...................... 3.82 121,977 2.02 2.02 0.25 --
Class C...................... 3.76 42,869 2.07 2.07 0.21 --
Class Y...................... 5.10 23,616 0.87 0.87 1.42 --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.22%, 2.03%, 1.89% and
0.74% for classes A, B, C and Y, respectively.
(k)Without the inclusion of the Payment from Affiliate as noted on the Statement
of Operations, the total returns would have been 12.47% and 11.72% for
classes A and C, respectively. The net asset value impact of the Payment from
Affiliate was $0.01 and $0.01 for classes A and C, respectively.
@@ The amount per share rounds to zero.
241
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD EQUITY INCOME FUND
For the Year Ended October 31, 2004
Class A...................... $10.37 $ 0.21 $ 0.90 $(0.20) $@@ $-- $11.28
Class B...................... 10.36 0.13 0.89 (0.12) @@ -- 11.26
Class C...................... 10.36 0.15 0.89 (0.13) @@ -- 11.27
Class Y...................... 10.39 0.24 0.95 (0.25) @@ -- 11.33
From inception August 28, 2003, through October 31, 2003
Class A...................... 10.00 0.02 0.35 -- -- -- 10.37
Class B...................... 10.00 0.01 0.35 -- -- -- 10.36
Class C...................... 10.00 0.01 0.35 -- -- -- 10.36
Class Y...................... 10.00 0.04 0.35 -- -- -- 10.39
THE HARTFORD FOCUS FUND
For the Year Ended October 31, 2004
Class A...................... 8.94 (0.02) 0.22 -- -- -- 9.14
Class B...................... 8.79 (0.10) 0.23 -- -- -- 8.92
Class C...................... 8.78 (0.09) 0.23 -- -- -- 8.92
Class Y...................... 9.04 0.03 0.21 -- -- -- 9.28
For the Year Ended October 31, 2003
Class A...................... 7.32 (0.02) 1.64 -- -- -- 8.94
Class B...................... 7.25 (0.08) 1.62 -- -- -- 8.79
Class C...................... 7.24 (0.08) 1.62 -- -- -- 8.78
Class Y...................... 7.37 0.01 1.66 -- -- -- 9.04
For the Year Ended October 31, 2002(g)
Class A...................... 8.82 (0.05) (1.45) -- -- -- 7.32
Class B...................... 8.79 (0.12) (1.42) -- -- -- 7.25
Class C...................... 8.79 (0.12) (1.43) -- -- -- 7.24
Class Y...................... 8.83 -- (1.46) -- -- -- 7.37
From inception May 24, 2001, through October 31, 2001
Class A...................... 10.00 (0.01) (1.17) -- -- -- 8.82
Class B...................... 10.00 (0.03) (1.18) -- -- -- 8.79
Class C...................... 10.00 (0.04) (1.17) -- -- -- 8.79
Class Y...................... 10.00 0.01 (1.18) -- -- -- 8.83
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD EQUITY INCOME FUN
For the Year Ended October 31
Class A...................... 10.82% $211,826 1.40% 0.56%(j) 2.26% 22%
Class B...................... 9.93 18,438 2.20 1.37(j) 1.46 --
Class C...................... 10.12 44,043 2.02 1.19(j) 1.64 --
Class Y...................... 11.53 375 0.91 0.11(j) 2.73 --
From inception August 28, 200
Class A...................... 3.70(d) 26,649 1.53(b) 0.73(b) 1.81(b) 1
Class B...................... 3.60(d) 2,421 2.27(b) 1.47(b) 1.10(b) --
Class C...................... 3.60(d) 7,639 2.15(b) 1.35(b) 1.23(b) --
Class Y...................... 3.90(d) 104 0.93(b) 0.13(b) 2.17(b) --
THE HARTFORD FOCUS FUND
For the Year Ended October 31
Class A...................... 2.24(l) 67,212 1.62 1.62(k) (0.25) 104
Class B...................... 1.48(l) 18,610 2.36 2.35(k) (0.98) --
Class C...................... 1.59(l) 23,901 2.28 2.28(k) (0.91) --
Class Y...................... 2.65 815 1.11 1.11(k) 0.27 --
For the Year Ended October 31
Class A...................... 22.13 70,002 1.76 1.65 (0.29) 138
Class B...................... 21.24 21,058 2.49 2.35 (1.00) --
Class C...................... 21.27 27,158 2.36 2.35 (0.99) --
Class Y...................... 22.66 719 1.17 1.17 0.17 --
For the Year Ended October 31
Class A...................... (17.01) 66,432 1.76 1.65 (0.53) 215
Class B...................... (17.52) 18,862 2.43 2.35 (1.23) --
Class C...................... (17.63) 25,847 2.34 2.34 (1.22) --
Class Y...................... (16.54) 509 1.14 1.14 0.09 --
From inception May 24, 2001,
Class A...................... (11.80)(d) 66,970 1.68(b) 1.63(b) (0.18)(b) 109
Class B...................... (12.10)(d) 18,524 2.35(b) 2.35(b) (0.89)(b) --
Class C...................... (12.10)(d) 24,142 2.35(b) 2.35(b) (0.89)(b) --
Class Y...................... (11.70)(d) 9 1.20(b) 1.20(b) 0.25(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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 0.56%, 1.36%, 1.19% and
0.10% for classes A, B, C and Y, respectively.
(k)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.59%, 2.32%, 2.25% and
1.08% for classes A, B, C and Y, respectively.
(l)Without the inclusion of the Payment from Affiliate as noted on the Statement
of Operations, the total returns would have been 2.21%, 1.48% and 1.53% for
classes A, B and C, respectively. The net asset value impact of the Payment
from Affiliate was less than $0.01 for classes A and B and $0.01 for class C.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
242
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD GLOBAL COMMUNICATIONS FUND
For the Year Ended October 31, 2004(g)
Class A...................... $ 4.67 $ 0.06 $ 0.75 $ -- $-- $-- $ 5.48
Class B...................... 4.58 0.02 0.74 -- -- -- 5.34
Class C...................... 4.57 0.02 0.74 -- -- -- 5.33
Class Y...................... 4.74 0.09 0.77 -- -- -- 5.60
For the Year Ended October 31, 2003
Class A...................... $ 3.24 (0.01) 1.44 -- -- -- 4.67
Class B...................... 3.19 (0.03) 1.42 -- -- -- 4.58
Class C...................... 3.19 (0.03) 1.41 -- -- -- 4.57
Class Y...................... 3.26 0.01 1.47 -- -- -- 4.74
For the Year Ended October 31, 2002(g)
Class A...................... 4.57 -- (1.33) -- -- -- 3.24
Class B...................... 4.54 (0.04) (1.31) -- -- -- 3.19
Class C...................... 4.54 (0.04) (1.31) -- -- -- 3.19
Class Y...................... 4.60 -- (1.34) -- -- -- 3.26
For the Year Ended October 31, 2001
Class A...................... 10.00 (0.02) (5.41) -- -- -- 4.57
Class B...................... 10.00 (0.05) (5.41) -- -- -- 4.54
Class C...................... 10.00 (0.05) (5.41) -- -- -- 4.54
Class Y...................... 10.00 -- (5.40) -- -- -- 4.60
THE HARTFORD GLOBAL FINANCIAL SERVICES FUND
For the Year Ended October 31, 2004(g)
Class A...................... 9.71 0.12 0.69 (0.08) -- -- 10.44
Class B...................... 9.55 0.05 0.69 (0.03) -- -- 10.26
Class C...................... 9.55 0.05 0.69 (0.03) -- -- 10.26
Class Y...................... 9.79 0.17 0.71 (0.12) -- -- 10.55
For the Year Ended October 31, 2003
Class A...................... 8.03 0.07 1.65 (0.04) -- -- 9.71
Class B...................... 7.92 0.02 1.61 -- -- -- 9.55
Class C...................... 7.92 0.02 1.61 -- -- -- 9.55
Class Y...................... 8.10 0.13 1.64 (0.08) -- -- 9.79
For the Year Ended October 31, 2002(g)
Class A...................... 9.37 0.04 (1.38) -- -- -- 8.03
Class B...................... 9.30 (0.02) (1.36) -- -- -- 7.92
Class C...................... 9.30 (0.02) (1.36) -- -- -- 7.92
Class Y...................... 9.41 0.08 (1.39) -- -- -- 8.10
For the Year Ended October 31, 2001
Class A...................... 10.00 0.02 (0.65) -- -- -- 9.37
Class B...................... 10.00 (0.03) (0.67) -- -- -- 9.30
Class C...................... 10.00 (0.03) (0.67) -- -- -- 9.30
Class Y...................... 10.00 0.07 (0.66) -- -- -- 9.41
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GLOBAL COMMUNICAT
For the Year Ended October 31
Class A...................... 17.34% $ 8,929 1.93% 1.65%(j) 1.08% 85%
Class B...................... 16.59 1,482 3.32 2.35(j) 0.37 --
Class C...................... 16.63 1,306 2.97 2.35(j) 0.43 --
Class Y...................... 18.14 170 1.30 1.20(j) 1.69 --
For the Year Ended October 31
Class A...................... 44.14 6,419 1.95 1.65 (0.08) 100
Class B...................... 43.57 1,555 2.68 2.35 (0.79) --
Class C...................... 43.26 1,305 2.55 2.35 (0.77) --
Class Y...................... 45.40 724 1.35 1.20 0.38 --
For the Year Ended October 31
Class A...................... (29.10) 3,506 2.03 1.65 (0.10) 84
Class B...................... (29.74) 846 2.70 2.35 (0.80) --
Class C...................... (29.74) 736 2.57 2.35 (0.78) --
Class Y...................... (29.13) 481 1.27 1.20 0.40 --
For the Year Ended October 31
Class A...................... (54.30) 4,050 1.73 1.66 (0.42) 84
Class B...................... (54.60) 832 2.46 2.36 (1.12) --
Class C...................... (54.60) 875 2.44 2.36 (1.12) --
Class Y...................... (54.00) 460 1.20 1.20 0.03 --
THE HARTFORD GLOBAL FINANCIAL
For the Year Ended October 31
Class A...................... 8.42 12,910 1.78 1.65(k) 1.17 85
Class B...................... 7.71 3,043 2.80 2.35(k) 0.44 --
Class C...................... 7.71 2,459 2.68 2.35(k) 0.44 --
Class Y...................... 9.06 642 1.27 1.20(k) 1.54 --
For the Year Ended October 31
Class A...................... 21.48 12,652 1.90 1.65 0.93 93
Class B...................... 20.58 3,681 2.62 2.35 0.22 --
Class C...................... 20.58 3,197 2.50 2.35 0.23 --
Class Y...................... 22.01 1,580 1.31 1.20 1.38 --
For the Year Ended October 31
Class A...................... (14.30) 9,739 1.98 1.65 0.51 76
Class B...................... (14.84) 2,755 2.68 2.35 (0.20) --
Class C...................... (14.84) 2,548 2.54 2.35 (0.20) --
Class Y...................... (13.92) 1,435 1.25 1.20 0.96 --
For the Year Ended October 31
Class A...................... (6.30) 9,946 1.89 1.70 0.25 115
Class B...................... (7.00) 2,052 2.61 2.40 (0.45) --
Class C...................... (7.00) 2,053 2.60 2.40 (0.45) --
Class Y...................... (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.
(i)This includes a tax return of capital of less than $0.01.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.63%, 2.33%, 2.33% and
1.17% for classes A, B, C and Y, respectively.
(k)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.63%, 2.33%, 2.33% and
1.18% for classes A, B, C and Y, respectively.
@@ The amount per share rounds to zero.
243
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD GLOBAL HEALTH FUND
For the Year Ended October 31, 2004
Class A...................... $13.80 $(0.10) $ 1.36 $-- $(0.06) $-- $15.00
Class B...................... 13.43 (0.20) 1.33 -- (0.06) -- 14.50
Class C...................... 13.44 (0.20) 1.32 -- (0.06) -- 14.51
Class Y...................... 14.09 (0.02) 1.40 -- (0.06) -- 15.41
For the Year Ended October 31, 2003
Class A...................... 11.42 (0.07) 2.75 -- (0.30) -- 13.80
Class B...................... 11.20 (0.15) 2.68 -- (0.30) -- 13.43
Class C...................... 11.21 (0.15) 2.68 -- (0.30) -- 13.44
Class Y...................... 11.61 (0.02) 2.80 -- (0.30) -- 14.09
For the Year Ended October 31, 2002(g)
Class A...................... 13.47 (0.09) (1.68) -- (0.28) -- 11.42
Class B...................... 13.31 (0.18) (1.65) -- (0.28) -- 11.20
Class C...................... 13.32 (0.18) (1.65) -- (0.28) -- 11.21
Class Y...................... 13.58 (0.02) (1.67) -- (0.28) -- 11.61
For the Year Ended October 31, 2001
Class A...................... 13.86 (0.06) 0.23 -- (0.56) -- 13.47
Class B...................... 13.81 (0.12) 0.18 -- (0.56) -- 13.31
Class C...................... 13.81 (0.13) 0.20 -- (0.56) -- 13.32
Class Y...................... 13.89 (0.01) 0.26 -- (0.56) -- 13.58
From inception May 1, 2000, through October 31, 2000
Class A...................... 10.00 (0.01) 3.87 -- -- -- 13.86
Class B...................... 10.00 (0.04) 3.85 -- -- -- 13.81
Class C...................... 10.00 (0.04) 3.85 -- -- -- 13.81
Class Y...................... 10.00 0.01 3.88 -- -- -- 13.89
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GLOBAL HEALTH FUN
For the Year Ended October 31
Class A...................... 9.21% $170,672 1.81% 1.65%(j) (0.68)% 41%
Class B...................... 8.49 66,035 2.55 2.35(j) (1.38) --
Class C...................... 8.49 61,390 2.37 2.35(j) (1.38) --
Class Y...................... 9.88 1,299 1.12 1.12(j) (0.14) --
For the Year Ended October 31
Class A...................... 24.02 126,630 1.76 1.65 (0.62) 37
Class B...................... 23.13 56,378 2.49 2.35 (1.31) --
Class C...................... 23.11 51,606 2.36 2.35 (1.31) --
Class Y...................... 24.50 1,095 1.19 1.19 (0.15) --
For the Year Ended October 31
Class A...................... (13.43) 101,881 1.79 1.65 (0.70) 63
Class B...................... (14.05) 45,659 2.48 2.35 (1.40) --
Class C...................... (14.08) 43,042 2.35 2.35 (1.40) --
Class Y...................... (12.68) 881 1.17 1.17 (0.22) --
For the Year Ended October 31
Class A...................... 1.18 98,971 1.67 1.62 (0.61) 58
Class B...................... 0.36 42,578 2.36 2.35 (1.33) --
Class C...................... 0.43 44,306 2.33 2.33 (1.31) --
Class Y...................... 1.78 4,340 1.12 1.12 (0.11) --
From inception May 1, 2000, t
Class A...................... 38.74(d) 44,917 1.72(b) 1.65(b) (0.33)(b) 92
Class B...................... 38.24(d) 20,574 2.43(b) 2.35(b) (1.03)(b) --
Class C...................... 38.24(d) 26,830 2.40(b) 2.35(b) (1.03)(b) --
Class Y...................... 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.
(i)This includes a tax return of capital of less than $0.01.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.63%, 2.34%, 2.34% and
1.10% for classes A, B, C and Y, respectively.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
244
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD GLOBAL LEADERS FUND
For the Year Ended October 31, 2004
Class A...................... $13.96 $(0.06) $ 2.59 $-- $ -- $ -- $16.49
Class B...................... 13.45 (0.17) 2.49 -- -- -- 15.77
Class C...................... 13.49 (0.15) 2.50 -- -- -- 15.84
Class Y...................... 14.34 0.03 2.69 -- -- -- 17.06
For the Year Ended October 31, 2003
Class A...................... 11.21 (0.03) 2.78 -- -- -- 13.96
Class B...................... 10.88 (0.12) 2.69 -- -- -- 13.45
Class C...................... 10.90 (0.11) 2.70 -- -- -- 13.49
Class Y...................... 11.45 0.03 2.86 -- -- -- 14.34
For the Year Ended October 31, 2002(g)
Class A...................... 12.83 0.02 (1.64) -- -- -- 11.21
Class B...................... 12.54 (0.07) (1.59) -- -- -- 10.88
Class C...................... 12.55 (0.06) (1.59) -- -- -- 10.90
Class Y...................... 13.03 0.05 (1.63) -- -- -- 11.45
For the Year Ended October 31, 2001
Class A...................... 17.55 0.01 (4.54) -- (0.18) (0.01) 12.83
Class B...................... 17.29 (0.08) (4.48) -- (0.18) (0.01) 12.54
Class C...................... 17.30 (0.10) (4.46) -- (0.18) (0.01) 12.55
Class Y...................... 17.73 0.08 (4.59) -- (0.18) (0.01) 13.03
For the Ten Months Ended October 31, 2000
Class A...................... 18.56 -- (0.92) -- (0.09) -- 17.55
Class B...................... 18.40 (0.06) (0.96) -- (0.09) -- 17.29
Class C...................... 18.40 (0.06) (0.95) -- (0.09) -- 17.30
Class Y...................... 18.68 0.03 (0.89) -- (0.09) -- 17.73
For the Year Ended December 31, 1999
Class A...................... 12.67 -- 6.01 -- (0.12) -- 18.56
Class B...................... 12.65 (0.02) 5.89 -- (0.12) -- 18.40
Class C...................... 12.65 (0.02) 5.89 -- (0.12) -- 18.40
Class Y...................... 12.69 0.03 6.08 -- (0.12) -- 18.68
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GLOBAL LEADERS FU
For the Year Ended October 31
Class A...................... 18.12% $466,013 1.62% 1.62%(j) (0.36)% 271%
Class B...................... 17.25 90,179 2.52 2.35(j) (1.09) --
Class C...................... 17.42 87,518 2.24 2.24(j) (0.98) --
Class Y...................... 18.97 58,791 0.93 0.93(j) 0.31 --
For the Year Ended October 31
Class A...................... 24.53 464,610 1.62 1.61 (0.29) 320
Class B...................... 23.62 78,923 2.36 2.35 (1.01) --
Class C...................... 23.76 78,303 2.23 2.23 (0.89) --
Class Y...................... 25.24 19,043 1.00 1.00 0.28 --
For the Year Ended October 31
Class A...................... (12.63) 354,407 1.66 1.61 0.24 323
Class B...................... (13.24) 70,280 2.33 2.33 (0.48) --
Class C...................... (13.15) 75,174 2.21 2.21 (0.36) --
Class Y...................... (12.13) 6,167 1.00 1.00 0.84 --
For the Year Ended October 31
Class A...................... (26.07) 247,094 1.53 1.48 0.08 382
Class B...................... (26.64) 62,973 2.23 2.23 (0.66) --
Class C...................... (26.62) 103,574 2.19 2.19 (0.63) --
Class Y...................... (25.68) 7,908 0.98 0.98 0.58 --
For the Ten Months Ended Octo
Class A...................... (4.98)(d) 255,959 1.53(b) 1.48(b) (0.06)(b) 290
Class B...................... (5.56)(d) 75,702 2.22(b) 2.22(b) (0.80)(b) --
Class C...................... (5.51)(d) 142,549 2.19(b) 2.19(b) (0.77)(b) --
Class Y...................... (4.62)(d) 10,001 1.01(b) 1.01(b) 0.41(b) --
For the Year Ended December 3
Class A...................... 47.68 84,632 1.62 1.57 (0.15) 204
Class B...................... 46.64 24,588 2.29 2.29 (0.86) --
Class C...................... 46.64 43,012 2.33 2.33 (0.89) --
Class Y...................... 48.39 4,423 1.10 1.10 0.32 --
</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.
(i)This includes a tax return of capital of less than $0.01.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.53%, 2.26%, 2.15% and
0.84% for classes A, B, C and Y, respectively.
@@ The amount per share rounds to zero.
245
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD GLOBAL TECHNOLOGY FUND
For the Year Ended October 31, 2004
Class A...................... $ 4.68 $(0.07) $(0.19) $-- $ -- $-- $ 4.42
Class B...................... 4.56 (0.10) (0.18) -- -- -- 4.28
Class C...................... 4.56 (0.11) (0.17) -- -- -- 4.28
Class Y...................... 4.75 (0.04) (0.20) -- -- -- 4.51
For the Year Ended October 31, 2003
Class A...................... 2.98 (0.04) 1.74 -- -- -- 4.68
Class B...................... 2.92 (0.06) 1.70 -- -- -- 4.56
Class C...................... 2.92 (0.06) 1.70 -- -- -- 4.56
Class Y...................... 3.01 (0.03) 1.77 -- -- -- 4.75
For the Year Ended October 31, 2002(g)
Class A...................... 4.01 (0.12) (0.91) -- -- -- 2.98
Class B...................... 3.96 (0.18) (0.86) -- -- -- 2.92
Class C...................... 3.97 (0.19) (0.86) -- -- -- 2.92
Class Y...................... 4.04 (0.14) (0.89) -- -- -- 3.01
For the Year Ended October 31, 2001
Class A...................... 8.72 (0.08) (4.55) -- (0.08) -- 4.01
Class B...................... 8.68 (0.11) (4.53) -- (0.08) -- 3.96
Class C...................... 8.68 (0.11) (4.52) -- (0.08) -- 3.97
Class Y...................... 8.73 (0.04) (4.57) -- (0.08) -- 4.04
From inception May 1, 2000, through October 31, 2000
Class A...................... 10.00 (0.05) (1.23) -- -- -- 8.72
Class B...................... 10.00 (0.07) (1.25) -- -- -- 8.68
Class C...................... 10.00 (0.06) (1.26) -- -- -- 8.68
Class Y...................... 10.00 (0.02) (1.25) -- -- -- 8.73
THE HARTFORD GROWTH ALLOCATION FUND
From (commencement of operations) May 28, 2004, through October 31, 2004
Class A...................... 10.00 -- 0.36 -- -- -- 10.36
Class B...................... 10.00 (0.01) 0.35 -- -- -- 10.34
Class C...................... 10.00 (0.01) 0.34 -- -- -- 10.33
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GLOBAL TECHNOLOGY
For the Year Ended October 31
Class A...................... (5.56)% $31,418 2.14% 1.65%(j) (1.37)% 165%
Class B...................... (6.14) 12,978 2.96 2.35(j) (2.07) --
Class C...................... (6.14) 13,891 2.62 2.35(j) (2.07) --
Class Y...................... (5.05) 1,186 1.15 1.15(j) (0.85) --
For the Year Ended October 31
Class A...................... 57.05 32,388 1.77 1.65 (1.28) 163
Class B...................... 56.16 13,991 2.50 2.35 (1.98) --
Class C...................... 56.16 16,513 2.37 2.35 (1.99) --
Class Y...................... 57.81 886 1.18 1.18 (0.82) --
For the Year Ended October 31
Class A...................... (25.69) 18,321 1.86 1.65 (1.44) 174
Class B...................... (26.26) 8,170 2.54 2.35 (2.14) --
Class C...................... (26.45) 9,560 2.39 2.35 (2.15) --
Class Y...................... (25.50) 512 1.15 1.15 (0.97) --
For the Year Ended October 31
Class A...................... (53.56) 24,824 1.71 1.66 (1.24) 253
Class B...................... (53.93) 10,962 2.43 2.36 (1.94) --
Class C...................... (53.81) 15,581 2.37 2.36 (1.94) --
Class Y...................... (53.27) 4,602 1.13 1.13 (0.71) --
From inception May 1, 2000, t
Class A...................... (14.26)(d) 33,221 1.77(b) 1.66(b) (1.37)(b) 104
Class B...................... (14.65)(d) 15,676 2.46(b) 2.35(b) (2.07)(b) --
Class C...................... (14.65)(d) 21,615 2.43(b) 2.35(b) (2.07)(b) --
Class Y...................... (14.16)(d) 4,677 1.32(b) 1.20(b) (0.92)(b) --
THE HARTFORD GROWTH ALLOCATION
From (commencement of operati
Class A...................... 3.60(d) 43,279 0.72(b)(k) 0.63(b)(k) 0.13(b) @@
Class B...................... 3.40(d) 14,177 1.52(b)(k) 1.28(b)(k) (0.53)(b) --
Class C...................... 3.30(d) 21,221 1.44(b)(k) 1.28(b)(k) (0.52)(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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.60%, 2.30%, 2.30% and
1.09% for classes A, B, C and Y, respectively.
(k)Expense ratios do not include expenses of the underlying funds.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
246
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD GROWTH FUND
For the Year Ended October 31, 2004
Class A...................... $15.19 $(0.08) $ 1.08 $-- $ -- $-- $16.19
Class B...................... 13.70 (0.15) 0.94 -- -- -- 14.49
Class C...................... 13.70 (0.12) 0.92 -- -- -- 14.50
Class H...................... 13.74 (0.20) 1.05 -- -- -- 14.59
Class L...................... 15.26 (0.08) 1.14 -- -- -- 16.32
Class M...................... 13.72 (0.19) 1.04 -- -- -- 14.57
Class N...................... 13.72 (0.19) 1.04 -- -- -- 14.57
Class Y...................... 15.31 -- 1.11 -- -- -- 16.42
For the Year Ended October 31, 2003
Class A...................... 11.90 (0.03) 3.32 -- -- -- 15.19
Class B...................... 10.80 (0.07) 2.97 -- -- -- 13.70
Class C...................... 10.80 (0.07) 2.97 -- -- -- 13.70
Class H...................... 10.81 (0.14) 3.07 -- -- -- 13.74
Class L...................... 11.91 (0.05) 3.40 -- -- -- 15.26
Class M...................... 10.80 (0.14) 3.06 -- -- -- 13.72
Class N...................... 10.80 (0.14) 3.06 -- -- -- 13.72
Class Y...................... 11.94 (0.03) 3.40 -- -- -- 15.31
For the Period February 19, 2002, through October 31, 2002
Class A...................... 14.57 (0.02) (2.65) -- -- -- 11.90
Class B...................... 13.28 (0.04) (2.44) -- -- -- 10.80
Class C...................... 13.28 (0.04) (2.44) -- -- -- 10.80
Class Y...................... 14.57 -- (2.63) -- -- -- 11.94
For the Year Ended October 31, 2002
Class H...................... 13.02 (0.23) (1.98) -- -- -- 10.81
Class L...................... 14.23 (0.03) (2.29) -- -- -- 11.91
Class M...................... 13.00 (0.16) (2.04) -- -- -- 10.80
Class N...................... 13.00 (0.26) (1.94) -- -- -- 10.80
For the Two-Month Period Ended October 31, 2001
Class H...................... 13.83 (0.03) (0.78) -- -- -- 13.02
Class L...................... 15.09 (0.01) (0.85) -- -- -- 14.23
Class M...................... 13.81 (0.03) (0.78) -- -- -- 13.00
Class N...................... 13.81 (0.03) (0.78) -- -- -- 13.00
For the Year Ended August 31, 2001
Class H...................... 22.30 (0.21) (4.94) -- (3.32) -- 13.83
Class L...................... 23.85 (0.05) (5.39) -- (3.32) -- 15.09
Class M...................... 22.27 (0.21) (4.93) -- (3.32) -- 13.81
Class N...................... 22.27 (0.21) (4.93) -- (3.32) -- 13.81
For the Year Ended August 31, 2000
Class H...................... 21.78 (0.62) 6.49 -- (5.35) -- 22.30
Class L...................... 22.81 (0.08) 6.47 -- (5.35) -- 23.85
Class M...................... 21.77 (0.62) 6.47 -- (5.35) -- 22.27
Class N...................... 21.76 (0.62) 6.48 -- (5.35) -- 22.27
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GROWTH FUND
For the Year Ended October 31
Class A...................... 6.58% $384,160 1.55% 1.45%(j) (0.84)% 66%
Class B...................... 5.77 32,440 2.33 2.15(j) (1.54) --
Class C...................... 5.84 47,575 2.07 2.07(j) (1.45) --
Class H...................... 6.19 23,527 1.83 1.83(j) (1.23) --
Class L...................... 6.95 310,084 1.08 1.08(j) (0.48) --
Class M...................... 6.20 21,522 1.83 1.83(j) (1.23) --
Class N...................... 6.20 4,356 1.83 1.83(j) (1.23) --
Class Y...................... 7.25 11,926 0.87 0.87(j) (0.18) --
For the Year Ended October 31
Class A...................... 27.65 72,186 1.52 1.45 (0.65) 129
Class B...................... 26.85 11,552 2.26 2.12 (1.35) --
Class C...................... 26.85 11,896 2.15 2.15 (1.36) --
Class H...................... 27.10 27,032 1.90 1.90 (1.09) --
Class L...................... 28.13 316,451 1.15 1.15 (0.34) --
Class M...................... 27.04 23,523 1.90 1.90 (1.09) --
Class N...................... 27.04 4,499 1.90 1.90 (1.09) --
Class Y...................... 28.22 1 0.96 0.96 (0.17) --
For the Period February 19, 2
Class A...................... (18.33)(d) 5,970 1.65(b) 1.45(b) (0.44)(b) 107
Class B...................... (18.67)(d) 1,698 2.32(b) 2.15(b) (1.10)(b) --
Class C...................... (18.68)(d) 1,480 2.18(b) 2.15(b) (1.13)(b) --
Class Y...................... (18.05)(d) 1 0.90(b) 0.90(b) (0.01)(b) --
For the Year Ended October 31
Class H...................... (16.95) 26,002 1.89 1.89 (1.03) 107
Class L...................... (16.28) 274,683 1.14 1.14 (0.28) --
Class M...................... (16.90) 21,478 1.89 1.89 (1.03) --
Class N...................... (16.90) 4,340 1.89 1.89 (1.03) --
For the Two-Month Period Ende
Class H...................... (5.86)(d) 37,750 1.86(b) 1.86(b) (1.09)(b) 13
Class L...................... (5.70)(d) 385,620 1.11(b) 1.11(b) (0.34)(b) --
Class M...................... (5.87)(d) 28,112 1.86(b) 1.86(b) (1.09)(b) --
Class N...................... (5.87)(d) 6,911 1.86(b) 1.86(b) (1.09)(b) --
For the Year Ended August 31,
Class H...................... (25.59) 40,645 1.83 1.83 (0.91) 161
Class L...................... (25.08) 416,544 1.08 1.08 (0.16) --
Class M...................... (25.58) 29,777 1.83 1.83 (0.91) --
Class N...................... (25.58) 7,557 1.83 1.83 (0.91) --
For the Year Ended August 31,
Class H...................... 31.68 56,771 1.82 1.82 (1.04) 165
Class L...................... 32.70 615,473 1.07 1.07 (0.29) --
Class M...................... 31.59 38,264 1.82 1.82 (1.04) --
Class N...................... 31.66 10,932 1.82 1.82 (1.04) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.43%, 2.13%, 2.05%,
1.80%, 1.05%, 1.80%, 1.80% and 0.85% for classes A, B, C, H, L, M, N and Y,
respectively.
@@ The amount per share rounds to zero.
247
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD GROWTH OPPORTUNITIES FUND
For the Year Ended October 31, 2004
Class A...................... $21.25 $(0.17) $ 2.41 $-- $ -- $-- $23.49
Class B...................... 18.91 (0.26) 2.12 -- -- -- 20.77
Class C...................... 18.91 (0.28) 2.14 -- -- -- 20.77
Class H...................... 18.99 (0.31) 2.24 -- -- -- 20.92
Class L...................... 21.36 (0.14) 2.49 -- -- -- 23.71
Class M...................... 18.97 (0.30) 2.22 -- -- -- 20.89
Class N...................... 18.97 (0.28) 2.20 -- -- -- 20.89
Class Y...................... 21.42 (0.01) 2.41 -- -- -- 23.82
Class Z...................... 22.17 (0.08) 2.57 -- -- -- 24.66
For the Year Ended October 31, 2003
Class A...................... 15.31 (0.07) 6.01 -- -- -- 21.25
Class B...................... 13.71 (0.12) 5.32 -- -- -- 18.91
Class C...................... 13.70 (0.09) 5.30 -- -- -- 18.91
Class H...................... 13.73 (0.22) 5.48 -- -- -- 18.99
Class L...................... 15.33 (0.10) 6.13 -- -- -- 21.36
Class M...................... 13.71 (0.22) 5.48 -- -- -- 18.97
Class N...................... 13.71 (0.22) 5.48 -- -- -- 18.97
Class Y...................... 15.35 (0.07) 6.14 -- -- -- 21.42
Class Z...................... 15.87 (0.06) 6.36 -- -- -- 22.17
For the Period February 19, 2002, through October 31, 2002
Class A...................... 19.80 (0.06) (4.43) -- -- -- 15.31
Class B...................... 17.80 (0.10) (3.99) -- -- -- 13.71
Class C...................... 17.80 (0.09) (4.01) -- -- -- 13.70
Class Y...................... 19.80 (0.06) (4.39) -- -- -- 15.35
For the Year Ended October 31, 2002
Class H...................... 17.36 (0.32) (3.10) -- (0.21) -- 13.73
Class L...................... 19.21 (0.13) (3.54) -- (0.21) -- 15.33
Class M...................... 17.33 (0.28) (3.13) -- (0.21) -- 13.71
Class N...................... 17.34 (0.34) (3.08) -- (0.21) -- 13.71
Class Z...................... 19.77 0.72 (4.41) -- (0.21) -- 15.87
For the Two-Month Period Ended October 31, 2001
Class H...................... 19.55 (0.11) (2.08) -- -- -- 17.36
Class L...................... 21.62 (0.11) (2.30) -- -- -- 19.21
Class M...................... 19.53 (0.12) (2.08) -- -- -- 17.33
Class N...................... 19.53 (0.11) (2.08) -- -- -- 17.34
Class Z...................... 22.24 (0.10) (2.37) -- -- -- 19.77
For the Year Ended August 31, 2001
Class H...................... 42.35 (0.70) (13.55) -- (8.55) -- 19.55
Class L...................... 45.45 (0.30) (14.98) -- (8.55) -- 21.62
Class M...................... 42.31 (0.70) (13.53) -- (8.55) -- 19.53
Class N...................... 42.32 (0.71) (13.53) -- (8.55) -- 19.53
Class Z...................... 46.35 (0.15) (15.41) -- (8.55) -- 22.24
For the Year Ended August 31, 2000
Class H...................... 29.28 (0.30) 20.22 -- (6.85) -- 42.35
Class L...................... 30.80 (0.20) 21.70 -- (6.85) -- 45.45
Class M...................... 29.26 (0.30) 20.20 -- (6.85) -- 42.31
Class N...................... 29.26 (0.30) 20.21 -- (6.85) -- 42.32
Class Z...................... 31.23 (0.16) 22.13 -- (6.85) -- 46.35
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GROWTH OPPORTUNIT
For the Year Ended October 31
Class A...................... 10.54% $ 54,652 1.52% 1.45%(j) (0.94)% 130%
Class B...................... 9.84 11,518 2.45 2.15(j) (1.64) --
Class C...................... 9.84 11,899 2.11 2.11(j) (1.61) --
Class H...................... 10.16 39,300 1.83 1.83(j) (1.33) --
Class L...................... 11.00 518,009 1.08 1.08(j) (0.58) --
Class M...................... 10.12 22,404 1.83 1.83(j) (1.33) --
Class N...................... 10.12 4,955 1.83 1.83(j) (1.33) --
Class Y...................... 11.20 4,792 0.82 0.82(j) (0.33) --
Class Z...................... 11.23 33,195 0.83 0.83(j) (0.33) --
For the Year Ended October 31
Class A...................... 38.80 17,149 1.49 1.45 (0.88) 158
Class B...................... 37.93 4,470 2.22 2.15 (1.58) --
Class C...................... 38.03 5,238 2.10 2.10 (1.54) --
Class H...................... 38.31 45,121 1.85 1.85 (1.31) --
Class L...................... 39.34 517,892 1.10 1.10 (0.56) --
Class M...................... 38.36 24,361 1.85 1.85 (1.31) --
Class N...................... 38.36 4,773 1.85 1.85 (1.31) --
Class Y...................... 39.54 1 0.91 0.91 (0.38) --
Class Z...................... 39.70 32,485 0.85 0.85 (0.31) --
For the Period February 19, 2
Class A...................... (22.68)(d) 3,338 1.62(b) 1.45(b) (0.92)(b) 182
Class B...................... (22.99)(d) 777 2.30(b) 2.15(b) (1.60)(b) --
Class C...................... (23.05)(d) 892 2.09(b) 2.09(b) (1.56)(b) --
Class Y...................... (22.47)(d) 1 0.89(b) 0.89(b) (0.44)(b) --
For the Year Ended October 31
Class H...................... (19.99) 39,151 1.85 1.85 (1.42) 182
Class L...................... (19.36) 412,454 1.10 1.10 (0.67) --
Class M...................... (19.97) 20,163 1.85 1.85 (1.42) --
Class N...................... (20.01) 4,172 1.85 1.85 (1.42) --
Class Z...................... (18.90) 26,842 0.84 0.84 (0.43) --
For the Two-Month Period Ende
Class H...................... (11.20)(d) 54,539 1.83(b) 1.83(b) (1.27)(b) 28
Class L...................... (11.15)(d) 593,267 1.08(b) 1.08(b) (0.52)(b) --
Class M...................... (11.26)(d) 27,013 1.83(b) 1.83(b) (1.27)(b) --
Class N...................... (11.21)(d) 6,131 1.83(b) 1.83(b) (1.27)(b) --
Class Z...................... (11.11)(d) 94,961 0.83(b) 0.83(b) (0.27)(b) --
For the Year Ended August 31,
Class H...................... (38.91) 61,764 1.79 1.79 (1.15) 198
Class L...................... (38.44) 681,941 1.04 1.04 (0.40) --
Class M...................... (38.90) 30,268 1.79 1.79 (1.15) --
Class N...................... (38.92) 6,866 1.79 1.79 (1.15) --
Class Z...................... (38.26) 110,221 0.79 0.79 (0.15) --
For the Year Ended August 31,
Class H...................... 80.72 97,410 1.79 1.79 (1.29) 140
Class L...................... 82.06 1,203,376 1.04 1.04 (0.54) --
Class M...................... 80.70 43,250 1.79 1.79 (1.29) --
Class N...................... 80.74 10,352 1.79 1.79 (1.29) --
Class Z...................... 82.51 231,410 0.79 0.79 (0.29) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.40%, 2.10%, 2.06%,
1.78%, 1.03%, 1.78%, 1.78%, 0.77%% and 0.78% for classes A, B, C, H, L, M, N,
Y and Z, respectively.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
248
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October 31, 2004(g)
Class A...................... $ 7.94 $0.48 $ 0.23 $(0.47) $ -- $ -- $8.18
Class B...................... 7.93 0.43 0.22 (0.41) -- -- 8.17
Class C...................... 7.93 0.44 0.22 (0.42) -- -- 8.17
Class Y...................... 7.94 0.39 0.36 (0.52) -- -- 8.17
For the Year Ended October 31, 2003(g)
Class A...................... 6.73 0.60 1.26 (0.65) -- -- 7.94
Class B...................... 6.72 0.57 1.24 (0.60) -- -- 7.93
Class C...................... 6.72 0.55 1.26 (0.60) -- -- 7.93
Class Y...................... 6.73 0.65 1.24 (0.68) -- -- 7.94
For the Year Ended October 31, 2002(g)
Class A...................... 8.45 0.82 (1.78) (0.76) -- -- 6.73
Class B...................... 8.43 0.80 (1.81) (0.70) -- -- 6.72
Class C...................... 8.43 0.72 (1.73) (0.70) -- -- 6.72
Class Y...................... 8.48 0.34 (1.30) (0.79) -- -- 6.73
For the Year Ended October 31, 2001
Class A...................... 9.06 0.78 (0.61) (0.78) -- -- 8.45
Class B...................... 9.05 0.72 (0.62) (0.72) -- -- 8.43
Class C...................... 9.05 0.72 (0.62) (0.72) -- -- 8.43
Class Y...................... 9.10 0.83 (0.63) (0.82) -- -- 8.48
For the Ten Months Ended October 31, 2000
Class A...................... 9.75 0.66 (0.69) (0.66) -- -- 9.06
Class B...................... 9.74 0.62 (0.71) (0.60) -- -- 9.05
Class C...................... 9.74 0.61 (0.70) (0.60) -- -- 9.05
Class Y...................... 9.78 0.69 (0.69) (0.68) -- -- 9.10
For the Year Ended December 31, 1999
Class A...................... 10.15 0.75 (0.40) (0.75) -- -- 9.75
Class B...................... 10.14 0.68 (0.40) (0.68) -- -- 9.74
Class C...................... 10.14 0.68 (0.40) (0.68) -- -- 9.74
Class Y...................... 10.16 0.78 (0.39) (0.77) -- -- 9.78
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October 31
Class A...................... 9.26%(j) $247,364 1.35% 1.35% 6.03% 86%
Class B...................... 8.45(j) 63,972 2.07 2.07 5.32 --
Class C...................... 8.54(j) 71,673 1.98 1.98 5.40 --
Class Y...................... 9.72 16,410 0.84 0.84 6.13 --
For the Year Ended October 31
Class A...................... 28.69 213,377 1.49 1.40 7.98 54
Class B...................... 27.83 72,293 2.23 2.10 7.39 --
Class C...................... 27.84 77,968 2.10 2.10 7.31 --
Class Y...................... 29.27 1 1.69 0.95 8.70 --
For the Year Ended October 31
Class A...................... (12.16) 95,760 1.55 1.40 9.48 22
Class B...................... (12.70) 44,359 2.24 2.10 8.78 --
Class C...................... (12.65) 40,611 2.10 2.10 8.78 --
Class Y...................... (12.01) 1 0.84 0.84 10.04 --
For the Year Ended October 31
Class A...................... 1.80 45,753 1.40 1.35 9.00 63
Class B...................... 0.99 16,922 2.08 2.08 8.28 --
Class C...................... 1.01 27,605 2.08 2.08 8.28 --
Class Y...................... 2.15 4,223 0.88 0.88 9.48 --
For the Ten Months Ended Octo
Class A...................... (0.35)(d) 23,214 1.38(b) 1.33(b) 8.55(b) 57
Class B...................... (0.92)(d) 7,929 2.04(b) 2.04(b) 7.84(b) --
Class C...................... (0.90)(d) 9,534 2.04(b) 2.04(b) 7.83(b) --
Class Y...................... 0.02(d) 2,955 0.89(b) 0.89(b) 8.99(b) --
For the Year Ended December 3
Class A...................... 3.47 17,465 1.41 1.36 7.74 53
Class B...................... 2.80 7,436 2.08 2.08 7.03 --
Class C...................... 2.81 8,573 2.09 2.09 7.01 --
Class Y...................... 3.98 2,314 0.90 0.90 8.20 --
</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.
(i)This includes a tax return of capital of less than $0.01.
(j)Without the inclusion of the Payment from Affiliate as noted on the Statement
of Operations, the total returns would have been 9.25%, 8.45% and 8.44% for
classes A, B and C, respectively. The net asset value impact was less than
$0.01 for classes A and B and $0.01 for class C.
@@ The amount per share rounds to zero.
249
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD INCOME ALLOCATION FUND
From (commencement of operations) May 28, 2004, through October 31, 2004
Class A...................... $10.00 $ 0.09 $ 0.15 $(0.09) $ -- $-- $10.15
Class B...................... 10.00 0.07 0.14 (0.07) -- -- 10.14
Class C...................... 10.00 0.07 0.14 (0.07) -- -- 10.14
THE HARTFORD INCOME FUND
For the Year Ended October 31, 2004
Class A...................... 10.53 0.48 0.22 (0.51) -- -- 10.72
Class B...................... 10.53 0.42 0.21 (0.44) -- -- 10.72
Class C...................... 10.55 0.41 0.22 (0.44) -- -- 10.74
From inception November 28, 2003, through October 31, 2004
Class Y...................... 10.54 0.48 0.20 (0.50) -- -- 10.72
From inception October 31, 2002, through October 31, 2003
Class A...................... 10.00 0.52 0.54 (0.53) -- -- 10.53
Class B...................... 10.00 0.44 0.54 (0.45) -- -- 10.53
Class C...................... 10.00 0.44 0.56 (0.45) -- -- 10.55
THE HARTFORD INFLATION PLUS FUND
For the Year Ended October 31, 2004
Class A...................... 10.63 0.30 0.37 (0.31) (0.04) -- 10.95
Class B...................... 10.64 0.22 0.37 (0.23) (0.04) -- 10.96
Class C...................... 10.63 0.23 0.37 (0.23) (0.04) -- 10.96
From inception November 28, 2003, through October 31, 2004
Class Y...................... 10.57 0.28 0.44 (0.32) -- -- 10.97
From inception October 31, 2002, through October 31, 2003
Class A...................... 10.00 0.27 0.62 (0.26) -- -- 10.63
Class B...................... 10.00 0.21 0.63 (0.20) -- -- 10.64
Class C...................... 10.00 0.20 0.63 (0.20) -- -- 10.63
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
For the Year Ended October 31, 2004(g)
Class A...................... 9.62 (0.01) 2.03 -- (0.05) -- 11.59
Class B...................... 9.46 (0.08) 1.99 -- (0.05) -- 11.32
Class C...................... 9.46 (0.08) 1.99 -- (0.05) -- 11.32
Class Y...................... 9.69 (0.01) 2.09 -- (0.05) -- 11.72
For the Year Ended October 31, 2003
Class A...................... 6.93 (0.02) 2.72 (0.01) -- -- 9.62
Class B...................... 6.86 (0.04) 2.64 -- -- -- 9.46
Class C...................... 6.86 (0.04) 2.64 -- -- -- 9.46
Class Y...................... 6.98 0.01 2.74 (0.04) -- -- 9.69
For the Year Ended October 31, 2002(g)
Class A...................... 7.62 0.02 (0.71) -- -- -- 6.93
Class B...................... 7.59 (0.03) (0.70) -- -- -- 6.86
Class C...................... 7.59 (0.03) (0.70) -- -- -- 6.86
Class Y...................... 7.63 0.07 (0.72) -- -- -- 6.98
From inception April 30, 2001, through October 31, 2001
Class A...................... 10.00 -- (2.38) -- -- -- 7.62
Class B...................... 10.00 (0.03) (2.38) -- -- -- 7.59
Class C...................... 10.00 (0.02) (2.39) -- -- -- 7.59
Class Y...................... 10.00 0.02 (2.39) -- -- -- 7.63
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD INCOME ALLOCATION
From (commencement of operati
Class A...................... 2.42%(d) $ 10,539 0.73%(b)(k) 0.56%(b)(k) 3.21%(b) 3%
Class B...................... 2.08(d) 1,690 1.63(b)(k) 1.26(b)(k) 2.56(b) --
Class C...................... 2.08(d) 4,880 1.48(b)(k) 1.26(b)(k) 2.59(b) --
THE HARTFORD INCOME FUND
For the Year Ended October 31
Class A...................... 6.85 29,580 1.14 1.00 4.60 167
Class B...................... 6.10 5,541 1.95 1.70 3.90 --
Class C...................... 6.09 5,562 1.88 1.70 3.90 --
From inception November 28, 2
Class Y...................... 6.57(d) 10 0.73(b) 0.70(b) 4.89(b) --
From inception October 31, 20
Class A...................... 10.79(d) 15,836 1.54(b) 1.00(b) 5.06(b) 124
Class B...................... 10.01(d) 4,705 2.31(b) 1.70(b) 4.31(b) --
Class C...................... 10.22(d) 5,050 2.17(b) 1.70(b) 4.28(b) --
THE HARTFORD INFLATION PLUS FU
For the Year Ended October 31
Class A...................... 6.39 313,961 1.04 1.00 3.04 81
Class B...................... 5.65 107,964 1.81 1.70 2.21 --
Class C...................... 5.74 319,990 1.76 1.70 2.33 --
From inception November 28, 2
Class Y...................... 6.89(d) 23,045 0.65(b) 0.65(b) 1.55(b) --
From inception October 31, 20
Class A...................... 9.02(d) 142,992 1.34(b) 1.00(b) 2.63(b) 23
Class B...................... 8.41(d) 67,986 2.09(b) 1.70(b) 1.98(b) --
Class C...................... 8.3(d) 160,253 1.95(b) 1.70(b) 1.97(b) --
THE HARTFORD INTERNATIONAL CAP
For the Year Ended October 31
Class A...................... 21.14 50,051 1.91 1.65(j) (0.10) 200
Class B...................... 20.33 8,968 2.83 2.35(j) (0.80) --
Class C...................... 20.33 12,906 2.63 2.35(j) (0.79) --
Class Y...................... 21.61 28,775 1.31 1.20(j) (0.09) --
For the Year Ended October 31
Class A...................... 38.95 11,362 2.36 1.65 (0.35) 281
Class B...................... 37.90 2,148 3.08 2.35 (1.04) --
Class C...................... 37.90 2,285 2.95 2.35 (1.01) --
Class Y...................... 39.57 292 1.80 1.20 0.16 --
For the Year Ended October 31
Class A...................... (9.06) 4,666 2.98 1.65 0.34 330
Class B...................... (9.62) 813 3.69 2.35 (0.42) --
Class C...................... (9.62) 826 3.55 2.35 (0.34) --
Class Y...................... (8.52) 209 2.19 1.20 0.79 --
From inception April 30, 2001
Class A...................... (23.80)(d) 2,579 2.64(b) 1.65(b) (0.09)(b) 135
Class B...................... (24.10)(d) 327 3.35(b) 2.35(b) (0.79)(b) --
Class C...................... (24.10)(d) 316 3.32(b) 2.35(b) (0.79)(b) --
Class Y...................... (23.70)(d) 229 2.10(b) 1.20(b) 0.36(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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.59%, 2.29%, 2.28% and
1.05% for classes A, B, C, and Y, respectively.
(k)Expense ratios do not include expenses of the underlying funds.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
250
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
For the Year Ended October 31, 2004
Class A...................... $ 9.66 $ 0.03 $ 1.54 $(0.01) $ -- $-- $11.22
Class B...................... 9.22 (0.05) 1.47 -- -- -- 10.64
Class C...................... 9.16 (0.05) 1.46 -- -- -- 10.57
Class Y...................... 9.91 0.11 1.56 (0.05) -- -- 11.53
For the Year Ended October 31, 2003
Class A...................... 8.03 0.02 1.61 -- -- -- 9.66
Class B...................... 7.71 (0.04) 1.55 -- -- -- 9.22
Class C...................... 7.67 (0.04) 1.53 -- -- -- 9.16
Class Y...................... 8.19 0.06 1.66 -- -- -- 9.91
For the Year Ended October 31, 2002(g)
Class A...................... 9.33 0.03 (1.33) -- -- -- 8.03
Class B...................... 9.04 (0.08) (1.25) -- -- -- 7.71
Class C...................... 8.99 (0.05) (1.27) -- -- -- 7.67
Class Y...................... 9.49 0.02 (1.32) -- -- -- 8.19
For the Year Ended October 31, 2001
Class A...................... 13.03 0.05 (3.14) -- (0.61) -- 9.33
Class B...................... 12.74 (0.04) (3.05) -- (0.61) -- 9.04
Class C...................... 12.68 (0.03) (3.05) -- (0.61) -- 8.99
Class Y...................... 13.19 0.09 (3.18) -- (0.61) -- 9.49
For the Ten Months Ended October 31, 2000
Class A...................... 15.43 0.08 (2.42) (0.01) (0.05) -- 13.03
Class B...................... 15.17 0.01 (2.39) -- (0.05) -- 12.74
Class C...................... 15.10 0.07 (2.44) -- (0.05) -- 12.68
Class Y...................... 15.56 0.12 (2.43) (0.01) (0.05) -- 13.19
For the Year Ended December 31, 1999
Class A...................... 11.89 0.06 4.46 (0.15) (0.83) -- 15.43
Class B...................... 11.73 0.01 4.32 (0.06) (0.83) -- 15.17
Class C...................... 11.74(f) (0.02)(f) 4.33(f) (0.12)(f) (0.83)(f) -- 15.10(f)
Class Y...................... 11.97 0.09 4.51 (0.18) (0.83) -- 15.56
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD INTERNATIONAL OPP
For the Year Ended October 31
Class A...................... 16.20% $87,348 1.83% 1.65%(j) 0.33% 143%
Class B...................... 15.40 23,301 2.77 2.35(j) (0.39) --
Class C...................... 15.39 15,749 2.48 2.35(j) (0.38) --
Class Y...................... 16.87 4,288 1.09 1.08(j) 0.82 --
For the Year Ended October 31
Class A...................... 20.30 69,153 1.72 1.65 0.25 138
Class B...................... 19.58 20,459 2.45 2.35 (0.46) --
Class C...................... 19.43 14,790 2.35 2.35 (0.45) --
Class Y...................... 21.00 6,058 1.13 1.13 0.77 --
For the Year Ended October 31
Class A...................... (13.93) 66,775 1.82 1.65 0.34 175
Class B...................... (14.71) 18,668 2.50 2.35 (0.79) --
Class C...................... (14.68) 13,438 2.40 2.35 (0.64) --
Class Y...................... (13.70) 4,543 1.13 1.13 0.31 --
For the Year Ended October 31
Class A...................... (24.87) 72,326 1.61 1.56 0.47 158
Class B...................... (25.46) 18,798 2.30 2.30 (0.28) --
Class C...................... (25.51) 18,523 2.28 2.28 (0.25) --
Class Y...................... (24.56) 17,092 1.06 1.06 0.97 --
For the Ten Months Ended Octo
Class A...................... (15.18)(d) 89,309 1.60(b) 1.55(b) 0.64(b) 121
Class B...................... (15.70)(d) 25,872 2.29(b) 2.29(b) (0.09)(b) --
Class C...................... (15.70)(d) 26,912 2.27(b) 2.27(b) (0.07)(b) --
Class Y...................... (14.91)(d) 22,454 1.06(b) 1.06(b) 1.13(b) --
For the Year Ended December 3
Class A...................... 39.13 63,281 1.61 1.56 0.61 128
Class B...................... 38.11 22,835 2.26 2.26 (0.09) --
Class C...................... 37.98 13,514 2.31 2.31 (0.13) --
Class Y...................... 39.63 25,403 1.11 1.11 1.07 --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.60%, 2.30%, 2.30% and
1.03% for classes A, B, C, and Y, respectively.
@@ The amount per share rounds to zero.
251
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
For the Year Ended October 31, 2004
Class A...................... $12.93 $ 0.07 $ 1.31 $ @@ $(0.87) $-- $13.44
Class B...................... 12.82 0.02 1.26 -- (0.87) -- 13.23
Class C...................... 12.72 0.03 1.24 -- (0.87) -- 13.12
Class Y...................... 13.02 0.14 1.30 (0.05) (0.87) -- 13.54
For the Year Ended October 31, 2003(g)
Class A...................... 8.37 0.07 4.51 (0.02) -- -- 12.93
Class B...................... 8.34 0.01 4.47 -- -- -- 12.82
Class C...................... 8.28 0.01 4.43 -- -- -- 12.72
Class Y...................... 8.43 0.09 4.56 (0.06) -- -- 13.02
For the Year Ended October 31, 2002(g)
Class A...................... 8.82 0.03 (0.48) -- -- -- 8.37
Class B...................... 8.81 (0.02) (0.45) -- -- -- 8.34
Class C...................... 8.78 (0.03) (0.47) -- -- -- 8.28
Class Y...................... 8.84 0.09 (0.50) -- -- -- 8.43
From inception April 30, 2001, through October 31, 2001
Class A...................... 10.00 0.04 (1.22) -- -- -- 8.82
Class B...................... 10.00 -- (1.19) -- -- -- 8.81
Class C...................... 10.00 0.01 (1.23) -- -- -- 8.78
Class Y...................... 10.00 0.06 (1.22) -- -- -- 8.84
THE HARTFORD MIDCAP FUND
For the Year Ended October 31, 2004
Class A...................... 20.58 (0.09) 2.12 -- -- -- 22.61
Class B...................... 19.68 (0.25) 2.04 -- -- -- 21.47
Class C...................... 19.71 (0.23) 2.04 -- -- -- 21.52
Class Y...................... 21.21 0.02 2.20 -- -- -- 23.43
For the Year Ended October 31, 2003
Class A...................... 15.50 (0.08) 5.16 -- -- -- 20.58
Class B...................... 14.93 (0.20) 4.95 -- -- -- 19.68
Class C...................... 14.94 (0.18) 4.95 -- -- -- 19.71
Class Y...................... 15.88 -- 5.33 -- -- -- 21.21
For the Year Ended October 31, 2002(g)
Class A...................... 16.57 (0.10) (0.97) -- -- -- 15.50
Class B...................... 16.07 (0.21) (0.93) -- -- -- 14.93
Class C...................... 16.08 (0.21) (0.93) -- -- -- 14.94
Class Y...................... 16.89 (0.02) (0.99) -- -- -- 15.88
For the Year Ended October 31, 2001
Class A...................... 22.42 (0.03) (3.89) -- (1.93) -- 16.57
Class B...................... 21.96 (0.09) (3.87) -- (1.93) -- 16.07
Class C...................... 21.96 (0.12) (3.83) -- (1.93) -- 16.08
Class Y...................... 22.72 -- (3.90) -- (1.93) -- 16.89
For the Ten Months Ended October 31, 2000
Class A...................... 17.78 (0.03) 5.37 -- (0.70) -- 22.42
Class B...................... 17.54 (0.07) 5.19 -- (0.70) -- 21.96
Class C...................... 17.53 (0.10) 5.23 -- (0.70) -- 21.96
Class Y...................... 17.94 (0.01) 5.49 -- (0.70) -- 22.72
For the Year Ended December 31, 1999
Class A...................... 12.30 (0.03) 6.08 -- (0.57) -- 17.78
Class B...................... 12.22 (0.03) 5.92 -- (0.57) -- 17.54
Class C...................... 12.21(f) (0.04)(f) 5.93(f) -- (0.57)(f) -- 17.53(f)
Class Y...................... 12.35 (0.02) 6.18 -- (0.57) -- 17.94
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD INTERNATIONAL SMA
For the Year Ended October 31
Class A...................... 11.39% $ 23,934 1.99% 1.65%(j) 0.90% 119%
Class B...................... 10.62 3,726 2.89 2.35(j) 0.15 --
Class C...................... 10.63 10,072 2.60 2.35(j) 0.27 --
Class Y...................... 11.80 42,449 1.41 1.20(j) 1.26 --
For the Year Ended October 31
Class A...................... 54.76 12,320 2.36 1.65 0.72 166
Class B...................... 53.72 2,237 3.09 2.35 0.03 --
Class C...................... 53.62 3,004 2.96 2.35 (0.03) --
Class Y...................... 55.47 25,154 1.64 1.20 0.93 --
For the Year Ended October 31
Class A...................... (5.10) 4,598 3.09 1.65 0.44 194
Class B...................... (5.34) 926 3.81 2.35 (0.26) --
Class C...................... (5.70) 859 3.53 2.35 (0.26) --
Class Y...................... (4.64) 969 1.91 1.20 0.89 --
From inception April 30, 2001
Class A...................... (11.80)(d) 2,156 3.46(b) 1.65(b) 0.86(b) 128
Class B...................... (11.90)(d) 275 4.12(b) 2.35(b) 0.16(b) --
Class C...................... (12.20)(d) 425 4.12(b) 2.35(b) 0.16(b) --
Class Y...................... (11.60)(d) 265 2.92(b) 1.20(b) 1.31(b) --
THE HARTFORD MIDCAP FUND
For the Year Ended October 31
Class A...................... 9.86 1,544,968 1.37 1.37(k) (0.41) 52
Class B...................... 9.10 438,658 2.11 2.11(k) (1.15) --
Class C...................... 9.18 484,268 2.02 2.02(k) (1.06) --
Class Y...................... 10.47 104,534 0.85 0.85(k) 0.11 --
For the Year Ended October 31
Class A...................... 32.77 1,413,021 1.50 1.48 (0.58) 70
Class B...................... 31.82 424,959 2.23 2.20 (1.30) --
Class C...................... 31.93 477,891 2.10 2.10 (1.21) --
Class Y...................... 33.56 83,996 0.90 0.90 (0.01) --
For the Year Ended October 31
Class A...................... (6.46) 704,238 1.56 1.45 (0.65) 109
Class B...................... (7.09) 266,650 2.24 2.15 (1.35) --
Class C...................... (7.09) 275,305 2.12 2.12 (1.31) --
Class Y...................... (5.98) 27,319 0.92 0.92 (0.08) --
For the Year Ended October 31
Class A...................... (18.94) 612,750 1.43 1.38 (0.53) 116
Class B...................... (19.58) 265,683 2.11 2.11 (1.28) --
Class C...................... (19.53) 285,908 2.09 2.09 (1.24) --
Class Y...................... (18.58) 52,576 0.88 0.88 (0.03) --
For the Ten Months Ended Octo
Class A...................... 30.50(d) 425,686 1.48(b) 1.43(b) (0.80)(b) 110
Class B...................... 29.72(d) 185,830 2.15(b) 2.15(b) (1.52)(b) --
Class C...................... 29.72(d) 217,965 2.14(b) 2.14(b) (1.51)(b) --
Class Y...................... 31.01(d) 62,343 0.96(b) 0.96(b) (0.33)(b) --
For the Year Ended December 3
Class A...................... 50.17 118,194 1.51 1.45 (0.79) 123
Class B...................... 49.10 50,301 2.17 2.15 (1.48) --
Class C...................... 49.22 48,310 2.22 2.15 (1.48) --
Class Y...................... 50.87 17,997 0.97 0.97 (0.31) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.60%, 2.30%, 2.29% and
1.15% for classes A, B, C, and Y, respectively.
(k)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.36%, 2.10%, 2.00% and
0.84% for classes A, B, C, and Y, respectively.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
252
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October 31, 2004(g)
Class A...................... $11.32 $ (.04) $ 1.61 $ -- $ -- $ -- $12.89
Class B...................... 11.12 (.13) 1.60 -- -- -- 12.59
Class C...................... 11.13 (.13) 1.59 -- -- -- 12.59
Class Y...................... 11.46 (.01) 1.66 -- -- -- 13.11
For the Year Ended October 31, 2003(g)
Class A...................... 8.34 (0.03) 3.01 -- -- -- 11.32
Class B...................... 8.25 (0.09) 2.96 -- -- -- 11.12
Class C...................... 8.25 (0.09) 2.97 -- -- -- 11.13
Class Y...................... 8.39 0.02 3.05 -- -- -- 11.46
For the Year Ended October 31, 2002(g)
Class A...................... 8.48 (0.02) (0.12) -- -- -- 8.34
Class B...................... 8.46 (0.09) (0.12) -- -- -- 8.25
Class C...................... 8.46 (0.09) (0.12) -- -- -- 8.25
Class Y...................... 8.50 0.01 (0.12) -- -- -- 8.39
From inception April 30, 2001, through October 31, 2001
Class A...................... 10.00 (0.01) (1.51) -- -- -- 8.48
Class B...................... 10.00 (0.02) (1.52) -- -- -- 8.46
Class C...................... 10.00 (0.02) (1.52) -- -- -- 8.46
Class Y...................... 10.00 (0.01) (1.49) -- -- -- 8.50
THE HARTFORD MONEY MARKET FUND
For the Year Ended October 31, 2004
Class A...................... 1.00 0.003 -- (0.003) -- -- 1.00
Class B...................... 1.00 0.0001 -- (0.0001) -- -- 1.00
Class C...................... 1.00 0.0001 -- (0.0001) -- -- 1.00
Class Y...................... 1.00 0.007 -- (0.007) -- -- 1.00
For the Year Ended October 31, 2003
Class A...................... 1.00 0.003 -- (0.003) -- -- 1.00
Class B...................... 1.00 -- -- -- -- -- 1.00
Class C...................... 1.00 -- -- -- -- -- 1.00
Class Y...................... 1.00 0.008 -- (0.008) -- -- 1.00
For the Year Ended October 31, 2002(g)
Class A...................... 1.00 0.011 -- (0.011) -- -- 1.00
Class B...................... 1.00 0.004 -- (0.004) -- -- 1.00
Class C...................... 1.00 0.004 -- (0.004) -- -- 1.00
Class Y...................... 1.00 0.017 -- (0.017) -- -- 1.00
For the Year Ended October 31, 2001
Class A...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class B...................... 1.00 0.03 -- (0.03) -- -- 1.00
Class C...................... 1.00 0.03 -- (0.03) -- -- 1.00
Class Y...................... 1.00 0.04 -- (0.04) -- -- 1.00
For the Ten Months Ended October 31, 2000
Class A...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class B...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class C...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class Y...................... 1.00 0.05 -- (0.05) -- -- 1.00
For the Year Ended December 31, 1999
Class A...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class B...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class C...................... 1.00 0.04 -- (0.04) -- -- 1.00
Class Y...................... 1.00 0.05 -- (0.05) -- -- 1.00
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October 31
Class A...................... 13.87% $280,173 1.56% 1.45%(j) (0.34)% 46%
Class B...................... 13.22 60,558 2.36 2.15(j) (1.04) --
Class C...................... 13.12 67,132 2.20 2.15(j) (1.04) --
Class Y...................... 14.40 2,474 0.90 0.90(j) (0.12) --
For the Year Ended October 31
Class A...................... 35.73 155,614 1.60 1.45 (0.35) 56
Class B...................... 34.79 42,407 2.33 2.15 (1.05) --
Class C...................... 34.91 49,566 2.20 2.15 (1.05) --
Class Y...................... 36.59 29 1.03 1.00 0.16 --
For the Year Ended October 31
Class A...................... (1.65) 94,532 1.68 1.45 (0.23) 40
Class B...................... (2.48) 26,556 2.38 2.15 (0.95) --
Class C...................... (2.48) 32,274 2.27 2.15 (0.96) --
Class Y...................... (1.29) 252 1.02 1.00 0.23 --
From inception April 30, 2001
Class A...................... (15.20)(d) 26,812 1.69(b) 1.40(b) (0.20)(b) 28
Class B...................... (15.40)(d) 7,158 2.38(b) 2.10(b) (0.90)(b) --
Class C...................... (15.40)(d) 8,975 2.37(b) 2.10(b) (0.90)(b) --
Class Y...................... (15.00)(d) 255 1.11(b) 0.95(b) 0.25(b) --
THE HARTFORD MONEY MARKET FUND
For the Year Ended October 31
Class A...................... 0.28 205,442 1.22 1.00 0.27 N/A
Class B...................... 0.01 45,836 1.82 1.25 0.01 --
Class C...................... 0.01 26,626 1.77 1.27 0.01 --
Class Y...................... 0.72 9,698 0.56 0.55 0.96 --
For the Year Ended October 31
Class A...................... 0.32 246,199 1.28 1.00 0.33 N/A
Class B...................... 0.00 67,732 2.01 1.33(h) 0.01 --
Class C...................... 0.00 29,955 1.89 1.36(h) 0.01 --
Class Y...................... 0.78 1,162 0.68 0.55 0.84 --
For the Year Ended October 31
Class A...................... 1.09 302,862 1.30 1.00 1.06 N/A
Class B...................... 0.43 99,048 1.96 1.70 0.37 --
Class C...................... 0.42 65,894 1.82 1.70 0.37 --
Class Y...................... 1.72 2,815 0.62 0.55 1.51 --
For the Year Ended October 31
Class A...................... 4.02 86,748 1.19 1.00 3.63 N/A
Class B...................... 3.31 48,998 1.85 1.70 2.93 --
Class C...................... 3.31 53,873 1.82 1.70 2.93 --
Class Y...................... 4.49 33,309 0.61 0.55 4.08 --
For the Ten Months Ended Octo
Class A...................... 4.54(d) 43,897 1.20(b) 1.00(b) 5.35(b) N/A
Class B...................... 3.94(d) 14,974 1.85(b) 1.70(b) 4.65(b) --
Class C...................... 3.93(d) 6,842 1.85(b) 1.70(b) 4.65(b) --
Class Y...................... 4.94(d) 18,325 0.65(b) 0.55(b) 5.80(b) --
For the Year Ended December 3
Class A...................... 4.32 44,663 1.15 1.00 4.25 N/A
Class B...................... 3.59 25,762 1.81 1.70 3.55 --
Class C...................... 3.59 9,904 1.84 1.70 3.56 --
Class Y...................... 4.80 8,953 0.64 0.55 4.70 --
</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.
(i)This includes a tax return of capital of less than $0.01.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.43%, 2.13%, 2.13% and
0.88% for classes A, B, C, and Y, respectively.
@@ The amount per share rounds to zero.
253
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD SHORT DURATION FUND
For the Year Ended October 31, 2004
Class A...................... $10.14 $ 0.30 $(0.06) $(0.30) $ -- $-- $10.08
Class B...................... 10.14 0.23 (0.06) (0.23) -- -- 10.08
Class C...................... 10.14 0.23 (0.06) (0.23) -- -- 10.08
From inception November 28, 2003, through October 31, 2004
Class Y...................... 10.11 0.30 (0.04) (0.30) -- -- 10.07
From inception October 31, 2002, through October 31, 2003
Class A...................... 10.00 0.30 0.14 (0.30) -- -- 10.14
Class B...................... 10.00 0.23 0.14 (0.23) -- -- 10.14
Class C...................... 10.00 0.23 0.14 (0.23) -- -- 10.14
THE HARTFORD SMALL COMPANY FUND
For the Year Ended October 31, 2004
Class A...................... 14.28 (0.18) 0.99 -- -- -- 15.09
Class B...................... 13.51 (0.27) 0.93 -- -- -- 14.17
Class C...................... 13.52 (0.28) 0.95 -- -- -- 14.19
Class Y...................... 14.83 (0.06) 0.97 -- -- -- 15.74
For the Year Ended October 31, 2003
Class A...................... 9.93 (0.13) 4.48 -- -- -- 14.28
Class B...................... 9.46 (0.20) 4.25 -- -- -- 13.51
Class C...................... 9.47 (0.20) 4.25 -- -- -- 13.52
Class Y...................... 10.27 (0.09) 4.65 -- -- -- 14.83
For the Year Ended October 31, 2002(g)
Class A...................... 12.00 (0.12) (1.95) -- -- -- 9.93
Class B...................... 11.52 (0.20) (1.86) -- -- -- 9.46
Class C...................... 11.53 (0.20) (1.86) -- -- -- 9.47
Class Y...................... 12.35 (0.06) (2.02) -- -- -- 10.27
For the Year Ended October 31, 2001
Class A...................... 18.08 (0.08) (5.41) -- (0.59) -- 12.00
Class B...................... 17.49 (0.16) (5.22) -- (0.59) -- 11.52
Class C...................... 17.51 (0.19) (5.20) -- (0.59) -- 11.53
Class Y...................... 18.50 (0.02) (5.54) -- (0.59) -- 12.35
For the Ten Months Ended October 31, 2000
Class A...................... 20.48 (0.04) (1.47) -- (0.89) -- 18.08
Class B...................... 19.96 (0.11) (1.47) -- (0.89) -- 17.49
Class C...................... 19.97 (0.12) (1.45) -- (0.89) -- 17.51
Class Y...................... 20.84 (0.02) (1.43) -- (0.89) -- 18.50
For the Year Ended December 31, 1999
Class A...................... 13.31 (0.05) 8.52 -- (1.30) -- 20.48
Class B...................... 13.09 (0.09) 8.26 -- (1.30) -- 19.96
Class C...................... 13.09(f) (0.08)(f) 8.26(f) -- (1.30)(f) -- 19.97(f)
Class Y...................... 13.47 (0.03) 8.70 -- (1.30) -- 20.84
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD SHORT DURATION FU
For the Year Ended October 31
Class A...................... 2.40% $ 39,148 1.06% 0.95% 2.95% 108%
Class B...................... 1.68 12,267 1.84 1.65 2.26 --
Class C...................... 1.68 34,949 1.76 1.65 2.26 --
From inception November 28, 2
Class Y...................... 2.62(d) 31,429 0.61(b) 0.60(b) 3.03(b) --
From inception October 31, 20
Class A...................... 4.48 32,753 1.34(b) 0.95(b) 3.14(b) 113
Class B...................... 3.77 10,206 2.09(b) 1.65(b) 2.46(b) --
Class C...................... 3.77 30,660 1.96(b) 1.65(b) 2.44(b) --
THE HARTFORD SMALL COMPANY FUN
For the Year Ended October 31
Class A...................... 5.67 156,278 1.62 1.45(j) (1.15) 142
Class B...................... 4.88 58,438 2.40 2.15(j) (1.85) --
Class C...................... 4.96 49,327 2.30 2.15(j) (1.85) --
Class Y...................... 6.14 15,731 0.99 0.99(j) (0.71) --
For the Year Ended October 31
Class A...................... 43.81 141,327 1.63 1.45 (1.19) 179
Class B...................... 42.81 58,286 2.36 2.15 (1.89) --
Class C...................... 42.77 52,010 2.23 2.15 (1.88) --
Class Y...................... 44.40 14,472 1.05 1.00 (0.73) --
For the Year Ended October 31
Class A...................... (17.25) 96,302 1.64 1.45 (0.97) 226
Class B...................... (17.88) 41,439 2.31 2.15 (1.67) --
Class C...................... (17.87) 38,938 2.20 2.15 (1.65) --
Class Y...................... (16.84) 10,834 1.00 1.00 (0.53) --
For the Year Ended October 31
Class A...................... (31.36) 116,398 1.51 1.45 (0.64) 224
Class B...................... (31.80) 49,738 2.19 2.15 (1.34) --
Class C...................... (31.82) 51,234 2.17 2.15 (1.34) --
Class Y...................... (31.02) 33,473 0.95 0.95 (0.14) --
For the Ten Months Ended Octo
Class A...................... (7.70)(d) 164,280 1.50(b) 1.45(b) (0.72)(b) 158
Class B...................... (8.26)(d) 71,323 2.16(b) 2.15(b) (1.42)(b) --
Class C...................... (8.21)(d) 77,337 2.16(b) 2.15(b) (1.42)(b) --
Class Y...................... (7.27)(d) 46,205 0.96(b) 0.96(b) (0.23)(b) --
For the Year Ended December 3
Class A...................... 65.66 109,559 1.51 1.45 (0.92) 177
Class B...................... 64.46 53,358 2.15 2.15 (1.62) --
Class C...................... 64.58 37,672 2.20 2.15 (1.61) --
Class Y...................... 66.37 39,536 0.99 0.99 (0.46) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.40%, 2.10%, 2.10% and
0.94% for classes A, B, C, and Y, respectively.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
254
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD SMALLCAP GROWTH FUND
For the Year Ended October 31, 2004
Class A...................... $22.91 $(0.15) $ 1.84 $-- $ -- $-- $24.60
Class B...................... 20.99 (0.28) 1.68 -- -- -- 22.39
Class C...................... 20.99 (0.27) 1.67 -- -- -- 22.39
Class H...................... 21.02 (0.34) 1.78 -- -- -- 22.46
Class L...................... 22.90 (0.19) 1.89 -- -- -- 24.60
Class M...................... 21.00 (0.32) 1.76 -- -- -- 22.44
Class N...................... 21.02 (0.31) 1.75 -- -- -- 22.46
Class Y...................... 23.06 (0.02) 1.84 -- -- -- 24.88
For the Year Ended October 31, 2003
Class A...................... 15.57 (0.09) 7.43 -- -- -- 22.91
Class B...................... 14.36 (0.15) 6.78 -- -- -- 20.99
Class C...................... 14.35 (0.16) 6.80 -- -- -- 20.99
Class H...................... 14.37 (0.25) 6.90 -- -- -- 21.02
Class L...................... 15.56 (0.15) 7.49 -- -- -- 22.90
Class M...................... 14.36 (0.24) 6.88 -- -- -- 21.00
Class N...................... 14.37 (0.24) 6.89 -- -- -- 21.02
Class Y...................... 15.61 (0.08) 7.53 -- -- -- 23.06
For the Period February 19, 2002, through October 31, 2002
Class A...................... 20.21 (0.06) (4.58) -- -- -- 15.57
Class B...................... 18.73 (0.08) (4.29) -- -- -- 14.36
Class C...................... 18.73 (0.09) (4.29) -- -- -- 14.35
Class Y...................... 20.21 (0.08) (4.52) -- -- -- 15.61
For the Year Ended October 31, 2002
Class H...................... 17.71 (0.36) (2.65) -- (0.33) -- 14.37
Class L...................... 19.04 (0.20) (2.95) -- (0.33) -- 15.56
Class M...................... 17.70 (0.33) (2.68) -- (0.33) -- 14.36
Class N...................... 17.71 (0.34) (2.67) -- (0.33) -- 14.37
For the Two-Month Period Ended October 31, 2001
Class H...................... 19.77 (0.04) (2.02) -- -- -- 17.71
Class L...................... 21.24 (0.03) (2.17) -- -- -- 19.04
Class M...................... 19.76 (0.04) (2.02) -- -- -- 17.70
Class N...................... 19.77 (0.04) (2.02) -- -- -- 17.71
For the Year Ended August 31, 2001
Class H...................... 57.72 (0.72) (24.24) -- (12.99) -- 19.77
Class L...................... 60.44 (0.17) (26.04) -- (12.99) -- 21.24
Class M...................... 57.66 (0.68) (24.23) -- (12.99) -- 19.76
Class N...................... 57.71 (0.71) (24.24) -- (12.99) -- 19.77
For the Year Ended August 31, 2000
Class H...................... 34.94 (0.47) 33.83 -- (10.58) -- 57.72
Class L...................... 36.04 (0.44) 35.42 -- (10.58) -- 60.44
Class M...................... 34.91 (0.47) 33.80 -- (10.58) -- 57.66
Class N...................... 34.94 (0.47) 33.82 -- (10.58) -- 57.71
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD SMALLCAP GROWTH F
For the Year Ended October 31
Class A...................... 7.38% $ 42,962 1.77% 1.45%(j) (0.81)% 102%
Class B...................... 6.67 11,930 2.59 2.15(j) (1.51) --
Class C...................... 6.67 10,140 2.38 2.15(j) (1.51) --
Class H...................... 6.85 17,328 1.98 1.98(j) (1.34) --
Class L...................... 7.42 114,266 1.43 1.43(j) (0.79) --
Class M...................... 6.86 16,154 1.98 1.98(j) (1.34) --
Class N...................... 6.85 6,115 1.98 1.98(j) (1.34) --
Class Y...................... 7.89 5,788 1.03 1.03(j) (0.47) --
For the Year Ended October 31
Class A...................... 47.14 17,544 1.61 1.45 (0.83) 122
Class B...................... 46.17 6,571 2.31 2.15 (1.53) --
Class C...................... 46.27 5,076 2.22 2.15 (1.53) --
Class H...................... 46.28 20,767 2.05 2.05 (1.40) --
Class L...................... 47.17 112,621 1.50 1.45 (0.80) --
Class M...................... 46.24 17,992 2.05 2.05 (1.40) --
Class N...................... 46.28 6,110 2.05 2.05 (1.40) --
Class Y...................... 47.72 1 1.11 1.10 (0.46) --
For the Period February 19, 2
Class A...................... (22.97)(d) 3,457 1.82(b) 1.45(b) (0.93)(b) 93
Class B...................... (23.31)(d) 1,756 2.52(b) 2.15(b) (1.60)(b) --
Class C...................... (23.37)(d) 1,432 2.38(b) 2.15(b) (1.60)(b) --
Class Y...................... (22.77)(d) 1 1.06(b) 1.00(b) (0.60)(b) --
For the Year Ended October 31
Class H...................... (17.41) 16,675 2.05 2.05 (1.65) 93
Class L...................... (16.92) 86,414 1.50 1.45 (1.06) --
Class M...................... (17.42) 13,714 2.05 2.05 (1.65) --
Class N...................... (17.41) 4,757 2.05 2.05 (1.65) --
For the Two-Month Period Ende
Class H...................... (10.42)(d) 23,059 2.05(b) 2.05(b) (1.57)(b) 17
Class L...................... (10.36)(d) 121,440 1.50(b) 1.50(b) (1.02)(b) --
Class M...................... (10.43)(d) 18,115 2.05(b) 2.05(b) (1.57)(b) --
Class N...................... (10.42)(d) 6,495 2.05(b) 2.05(b) (1.57)(b) --
For the Year Ended August 31,
Class H...................... (50.88) 26,051 1.94 1.94 (1.12) 151
Class L...................... (50.60) 138,175 1.39 1.39 (0.57) --
Class M...................... (50.84) 20,522 1.94 1.94 (1.12) --
Class N...................... (50.87) 7,278 1.94 1.94 (1.12) --
For the Year Ended August 31,
Class H...................... 114.64 50,558 1.90 1.90 (1.49) 212
Class L...................... 115.84 314,326 1.35 1.35 (0.94) --
Class M...................... 114.66 38,246 1.90 1.90 (1.49) --
Class N...................... 114.60 14,300 1.90 1.90 (1.49) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.44%, 2.14%, 2.14%,
1.97%, 1.42%, 1.97%, 1.97% and 1.02% for classes A, B, C, L, M, N and Y,
respectively.
@@ The amount per share rounds to zero.
255
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD STOCK FUND
For the Year Ended October 31, 2004
Class A...................... $16.21 $ 0.03 $ 0.52 $ -- $ -- $ -- $16.76
Class B...................... 15.35 (0.10) 0.51 -- -- -- 15.76
Class C...................... 15.41 (0.08) 0.51 -- -- -- 15.84
Class Y...................... 16.81 0.10 0.58 -- -- -- 17.49
For the Year Ended October 31, 2003
Class A...................... 13.73 0.04 2.44 -- -- -- 16.21
Class B...................... 13.10 (0.07) 2.32 -- -- -- 15.35
Class C...................... 13.13 (0.05) 2.33 -- -- -- 15.41
Class Y...................... 14.15 0.12 2.54 -- -- -- 16.81
For the Year Ended October 31, 2002(g)
Class A...................... 16.89 -- (3.16) -- -- -- 13.73
Class B...................... 16.24 (0.12) (3.02) -- -- -- 13.10
Class C...................... 16.23 (0.08) (3.02) -- -- -- 13.13
Class Y...................... 17.31 0.10 (3.26) -- -- -- 14.15
For the Year Ended October 31, 2001
Class A...................... 23.40 0.02 (5.45) -- (1.08) -- 16.89
Class B...................... 22.69 (0.09) (5.28) -- (1.08) -- 16.24
Class C...................... 22.68 (0.08) (5.29) -- (1.08) -- 16.23
Class Y...................... 23.85 0.09 (5.55) -- (1.08) -- 17.31
For the Ten Months Ended October 31, 2000
Class A...................... 23.64 (0.03) -- -- (0.21) -- 23.40
Class B...................... 23.06 (0.12) (0.04) -- (0.21) -- 22.69
Class C...................... 23.05 (0.11) (0.05) -- (0.21) -- 22.68
Class Y...................... 23.99 0.05 0.02 -- (0.21) -- 23.85
For the Year Ended December 31, 1999
Class A...................... 19.70 -- 4.36 -- (0.42) -- 23.64
Class B...................... 19.36 (0.07) 4.19 -- (0.42) -- 23.06
Class C...................... 19.36(f) (0.08)(f) 4.19(f) -- (0.42)(f) -- 23.05(f)
Class Y...................... 19.89 (0.01) 4.53 -- (0.42) -- 23.99
THE HARTFORD TAX-FREE CALIFORNIA FUND
For the Year Ended October 31, 2004
Class A...................... 9.93 0.38 0.41 (0.40) -- -- 10.32
Class B...................... 9.92 0.34 0.38 (0.33) -- -- 10.31
Class C...................... 9.93 0.32 0.41 (0.33) -- -- 10.33
From inception October 31, 2002, through October 31, 2003
Class A...................... 10.00 0.37 (0.07) (0.37) -- -- 9.93
Class B...................... 10.00 0.30 (0.08) (0.30) -- -- 9.92
Class C...................... 10.00 0.30 (0.07) (0.30) -- -- 9.93
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD STOCK FUND
For the Year Ended October 31
Class A...................... 3.39% $ 952,606 1.42% 1.42%(j) 0.18% 29%
Class B...................... 2.67 343,148 2.18 2.18(j) (0.59) --
Class C...................... 2.79 256,271 2.03 2.03(j) (0.44) --
Class Y...................... 4.04 80,932 0.80 0.80(j) 0.80 --
For the Year Ended October 31
Class A...................... 18.06 976,663 1.47 1.45 0.26 37
Class B...................... 17.18 376,437 2.20 2.18 (0.47) --
Class C...................... 17.36 311,874 2.07 2.07 (0.36) --
Class Y...................... 18.80 42,894 0.88 0.88 0.84 --
For the Year Ended October 31
Class A...................... (18.71) 880,371 1.47 1.42 (0.01) 48
Class B...................... (19.34) 351,382 2.15 2.15 (0.74) --
Class C...................... (19.10) 313,173 2.03 2.03 (0.62) --
Class Y...................... (18.26) 34,116 0.85 0.85 0.58 --
For the Year Ended October 31
Class A...................... (24.28) 1,031,549 1.33 1.28 0.05 38
Class B...................... (24.80) 470,035 2.00 2.00 (0.67) --
Class C...................... (24.81) 430,238 1.99 1.99 (0.66) --
Class Y...................... (23.93) 27,004 0.79 0.79 0.54 --
For the Ten Months Ended Octo
Class A...................... (0.14)(d) 1,067,970 1.32(b) 1.27(b) (0.19)(b) 38
Class B...................... (0.71)(d) 578,402 1.99(b) 1.99(b) (0.90)(b) --
Class C...................... (0.71)(d) 492,996 1.98(b) 1.98(b) (0.90)(b) --
Class Y...................... 0.28(d) 32,123 0.80(b) 0.80(b) 0.28(b) --
For the Year Ended December 3
Class A...................... 22.31 752,763 1.38 1.33 (0.06) 34
Class B...................... 21.46 462,318 2.03 2.03 (0.75) --
Class C...................... 21.40 305,566 2.07 2.07 (0.78) --
Class Y...................... 22.91 31,129 0.91 0.91 0.36 --
THE HARTFORD TAX-FREE CALIFORN
For the Year Ended October 31
Class A...................... 8.15 14,846 1.03 0.95 3.85 41
Class B...................... 7.40 1,017 1.84 1.65 3.12 --
Class C...................... 7.49 1,448 1.85 1.65 3.06 --
From inception October 31, 20
Class A...................... 3.06 10,799 1.57(b) 0.95(b) 3.73(b) 64
Class B...................... 2.23 1,827 2.32(b) 1.65(b) 3.07(b) --
Class C...................... 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.
(i)This includes a tax return of capital of less than $0.01.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.42%, 2.18%, 2.03% and
0.80% for classes A, B, C, and Y, respectively.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
256
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE TAX-FREE MINNESOTA FUND
For the Year Ended October 31, 2004
Class A...................... $10.46 $0.41 $ 0.24 $(0.40) $(0.27) $ -- $10.44
Class B...................... 10.46 0.33 0.25 (0.32) (0.27) -- 10.45
Class C...................... 10.48 0.33 0.24 (0.32) (0.27) -- 10.46
Class E...................... 10.52 0.43 0.25 (0.43) (0.27) -- 10.50
Class H...................... 10.51 0.37 0.20 (0.32) (0.27) -- 10.49
Class L...................... 10.49 0.41 0.24 (0.40) (0.27) -- 10.47
Class M...................... 10.50 0.36 0.21 (0.32) (0.27) -- 10.48
Class N...................... 10.50 0.33 0.25 (0.32) (0.27) -- 10.49
Class Y...................... 10.47 0.43 0.24 (0.43) (0.27) -- 10.44
For the Year Ended October 31, 2003(g)
Class A...................... 10.46 0.38 0.05 (0.38) (0.05) -- 10.46
Class B...................... 10.47 0.31 0.04 (0.31) (0.05) -- 10.46
Class C...................... 10.48 0.31 0.05 (0.31) (0.05) -- 10.48
Class E...................... 10.53 0.41 0.05 (0.42) (0.05) -- 10.52
Class H...................... 10.52 0.30 0.06 (0.32) (0.05) -- 10.51
Class L...................... 10.49 0.39 0.05 (0.39) (0.05) -- 10.49
Class M...................... 10.49 0.31 0.07 (0.32) (0.05) -- 10.50
Class N...................... 10.51 0.31 0.05 (0.32) (0.05) -- 10.50
Class Y...................... 10.49 0.40 0.06 (0.43) (0.05) -- 10.47
For the Period February 19, 2002, through October 31, 2002
Class A...................... 10.29 0.26 0.16 (0.25) -- -- 10.46
Class B...................... 10.27 0.20 0.20 (0.20) -- -- 10.47
Class C...................... 10.27 0.20 0.21 (0.20) -- -- 10.48
Class Y...................... 10.29 0.29 0.20 (0.29) -- -- 10.49
For the Year Ended October 31, 2002
Class E...................... 10.45 0.40 0.07 (0.39) -- -- 10.53
Class H...................... 10.44 0.29 0.07 (0.28) -- -- 10.52
Class L...................... 10.42 0.37 0.06 (0.36) -- -- 10.49
Class M...................... 10.42 0.29 0.06 (0.28) -- -- 10.49
Class N...................... 10.44 0.29 0.06 (0.28) -- -- 10.51
For the One-Month Period Ended October 31, 2001
Class E...................... 10.35 0.04 0.10 (0.04) -- -- 10.45
Class H...................... 10.34 0.03 0.10 (0.03) -- -- 10.44
Class L...................... 10.31 0.04 0.11 (0.04) -- -- 10.42
Class M...................... 10.31 0.03 0.11 (0.03) -- -- 10.42
Class N...................... 10.34 0.03 0.10 (0.03) -- -- 10.44
For the Year Ended September 30, 2001
Class E...................... 9.91 0.48 0.45 (0.49) -- -- 10.35
Class H...................... 9.91 0.38 0.44 (0.39) -- -- 10.34
Class L...................... 9.88 0.45 0.45 (0.47) -- -- 10.31
Class M...................... 9.88 0.38 0.44 (0.39) -- -- 10.31
Class N...................... 9.90 0.38 0.45 (0.39) -- -- 10.34
For the Year Ended September 30, 2000
Class E...................... 9.94 0.51 (0.04) (0.50) -- -- 9.91
Class H...................... 9.93 0.42 (0.04) (0.40) -- -- 9.91
Class L...................... 9.91 0.48 (0.04) (0.47) -- -- 9.88
Class M...................... 9.90 0.42 (0.04) (0.40) -- -- 9.88
Class N...................... 9.93 0.41 (0.04) (0.40) -- -- 9.90
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE TAX-FREE MINNESOTA FUND
For the Year Ended October 31
Class A...................... 6.37% $ 4,286 1.27% 0.98% 3.87% 22%
Class B...................... 5.71 645 1.99 1.68 3.16 --
Class C...................... 5.60 321 1.98 1.69 3.15 --
Class E...................... 6.62 27,346 0.82 0.82 4.03 --
Class H...................... 5.61 116 1.82 1.68 3.16 --
Class L...................... 6.41 2,765 1.07 0.96 3.88 --
Class M...................... 5.61 206 1.82 1.70 3.14 --
Class N...................... 5.71 214 1.82 1.68 3.17 --
Class Y...................... 6.58 1 0.85 0.85 4.07 --
For the Year Ended October 31
Class A...................... 4.23 3,242 1.50 1.15 3.58 17
Class B...................... 3.42 532 2.21 1.85 2.88 --
Class C...................... 3.51 414 2.09 1.85 2.88 --
Class E...................... 4.50 29,784 0.83 0.80 3.92 --
Class H...................... 3.46 155 1.81 1.78 2.89 --
Class L...................... 4.34 2,922 1.07 1.05 3.67 --
Class M...................... 3.67 454 1.82 1.80 2.92 --
Class N...................... 3.47 212 1.83 1.80 2.92 --
Class Y...................... 4.50 1 0.91 0.80 3.82 --
For the Period February 19, 2
Class A...................... 4.16(d) 2,073 1.37(b) 1.15(b) 3.57(b) 36
Class B...................... 3.93(d) 238 2.09(b) 1.85(b) 2.73(b) --
Class C...................... 4.03(d) 304 1.92(b) 1.85(b) 2.79(b) --
Class Y...................... 4.92(d) 1 0.65(b) 0.65(b) 3.83(b) --
For the Year Ended October 31
Class E...................... 4.58 31,414 0.79 0.79 3.81 36
Class H...................... 3.56 577 1.81 1.81 2.81 --
Class L...................... 4.22 3,344 1.04 1.04 3.56 --
Class M...................... 3.46 562 1.79 1.79 2.81 --
Class N...................... 3.46 203 1.79 1.79 2.81 --
For the One-Month Period Ende
Class E...................... 1.33(d) 32,533 0.84(b) 0.84(b) 4.28(b) --
Class H...................... 1.25(d) 1,094 1.84(b) 1.84(b) 3.28(b) --
Class L...................... 1.41(d) 3,543 1.09(b) 1.09(b) 4.03(b) --
Class M...................... 1.35(d) 772 1.84(b) 1.84(b) 3.28(b) --
Class N...................... 1.25(d) 203 1.84(b) 1.84(b) 3.28(b) --
For the Year Ended September
Class E...................... 9.58 32,259 0.85 0.85 4.70 18
Class H...................... 8.43 1,086 1.85 1.85 3.70 --
Class L...................... 9.24 3,570 1.10 1.10 4.45 --
Class M...................... 8.45 789 1.85 1.85 3.70 --
Class N...................... 8.55 200 1.85 1.85 3.70 --
For the Year Ended September
Class E...................... 4.87 33,088 0.86 0.86 5.12 56
Class H...................... 3.95 1,076 1.86 1.86 4.12 --
Class L...................... 4.63 3,454 1.11 1.11 4.87 --
Class M...................... 3.96 829 1.86 1.86 4.12 --
Class N...................... 3.84 255 1.86 1.86 4.12 --
</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.
@@ The amount per share rounds to zero.
257
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD TAX-FREE NATIONAL FUND
For the Year Ended October 31, 2004
Class A...................... $11.07 $0.45 $0.32 $(0.45) $(0.17) $ -- $11.22
Class B...................... 11.00 0.37 0.32 (0.37) (0.17) -- 11.15
Class C...................... 11.02 0.37 0.33 (0.37) (0.17) -- 11.18
Class E...................... 11.05 0.47 0.33 (0.47) (0.17) -- 11.21
Class H...................... 11.03 0.46 0.23 (0.37) (0.17) -- 11.18
Class L...................... 11.04 0.44 0.33 (0.45) (0.17) -- 11.19
Class M...................... 11.03 0.36 0.33 (0.37) (0.17) -- 11.18
Class N...................... 11.01 0.37 0.32 (0.37) (0.17) -- 11.16
Class Y...................... 11.06 0.47 0.32 (0.48) (0.17) -- 11.20
For the Year Ended October 31, 2003
Class A...................... 11.28 0.41 0.04 (0.41) (0.25) -- 11.07
Class B...................... 11.21 0.33 0.04 (0.33) (0.25) -- 11.00
Class C...................... 11.23 0.33 0.04 (0.33) (0.25) -- 11.02
Class E...................... 11.27 0.45 0.03 (0.45) (0.25) -- 11.05
Class H...................... 11.24 0.36 0.02 (0.34) (0.25) -- 11.03
Class L...................... 11.25 0.42 0.04 (0.42) (0.25) -- 11.04
Class M...................... 11.24 0.34 0.04 (0.34) (0.25) -- 11.03
Class N...................... 11.22 0.33 0.05 (0.34) (0.25) -- 11.01
Class Y...................... 11.28 0.45 0.04 (0.46) (0.25) -- 11.06
For the Period February 19, 2002, through October 31, 2002
Class A...................... 10.99 0.26 0.30 (0.27) -- -- 11.28
Class B...................... 10.97 0.20 0.25 (0.21) -- -- 11.21
Class C...................... 10.97 0.20 0.27 (0.21) -- -- 11.23
Class Y...................... 10.99 0.33 0.27 (0.31) -- -- 11.28
For the Year Ended October 31, 2002
Class E...................... 11.18 0.41 0.12 (0.40) (0.04) -- 11.27
Class H...................... 11.15 0.32 0.11 (0.30) (0.04) -- 11.24
Class L...................... 11.16 0.39 0.12 (0.38) (0.04) -- 11.25
Class M...................... 11.15 0.31 0.12 (0.30) (0.04) -- 11.24
Class N...................... 11.13 0.31 0.12 (0.30) (0.04) -- 11.22
For the One-Month Period Ended October 31, 2001
Class E...................... 11.07 0.04 0.11 (0.04) -- -- 11.18
Class H...................... 11.03 0.03 0.12 (0.03) -- -- 11.15
Class L...................... 11.05 0.04 0.11 (0.04) -- -- 11.16
Class M...................... 11.04 0.03 0.11 (0.03) -- -- 11.15
Class N...................... 11.02 0.03 0.11 (0.03) -- -- 11.13
For the Year Ended September 30, 2001
Class E...................... 10.52 0.49 0.56 (0.50) -- -- 11.07
Class H...................... 10.49 0.37 0.56 (0.39) -- -- 11.03
Class L...................... 10.50 0.46 0.56 (0.47) -- -- 11.05
Class M...................... 10.49 0.38 0.56 (0.39) -- -- 11.04
Class N...................... 10.48 0.38 0.56 (0.40) -- -- 11.02
For the Year Ended September 30, 2000
Class E...................... 10.49 0.52 0.02 (0.51) -- -- 10.52
Class H...................... 10.46 0.42 0.02 (0.41) -- -- 10.49
Class L...................... 10.47 0.50 0.02 (0.49) -- -- 10.50
Class M...................... 10.46 0.42 0.02 (0.41) -- -- 10.49
Class N...................... 10.45 0.42 0.02 (0.41) -- -- 10.48
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD TAX-FREE NATIONAL
For the Year Ended October 31
Class A...................... 7.10% $35,210 1.30% 1.08% 4.04% 18%
Class B...................... 6.39 6,236 2.01 1.78 3.32 --
Class C...................... 6.47 8,357 1.98 1.78 3.33 --
Class E...................... 7.45 32,101 0.89 0.89 4.21 --
Class H...................... 6.37 650 1.89 1.79 3.31 --
Class L...................... 7.12 7,687 1.15 1.08 4.02 --
Class M...................... 6.37 1,397 1.90 1.78 3.33 --
Class N...................... 6.38 547 1.90 1.78 3.32 --
Class Y...................... 7.36 1 0.91 0.91 4.23 --
For the Year Ended October 31
Class A...................... 4.18 21,457 1.61 1.15 3.75 35
Class B...................... 3.43 6,598 2.33 1.85 3.05 --
Class C...................... 3.42 7,588 2.21 1.85 3.06 --
Class E...................... 4.39 33,998 0.92 0.85 4.00 --
Class H...................... 3.47 1,747 1.92 1.84 2.99 --
Class L...................... 4.24 7,454 1.18 1.10 3.76 --
Class M...................... 3.47 1,235 1.92 1.84 3.01 --
Class N...................... 3.48 607 1.93 1.85 3.01 --
Class Y...................... 4.53 1 1.17 0.85 4.06 --
For the Period February 19, 2
Class A...................... 5.17(d) 12,192 1.63(b) 1.15(b) 3.31(b) 47
Class B...................... 4.18(d) 3,764 2.33(b) 1.85(b) 2.54(b) --
Class C...................... 4.37(d) 3,121 2.18(b) 1.85(b) 2.57(b) --
Class Y...................... 5.52(d) 1 0.63(b) 0.63(b) 4.15(b) --
For the Year Ended October 31
Class E...................... 4.93 39,423 0.94 0.94 3.70 47
Class H...................... 3.99 2,895 1.95 1.85 2.83 --
Class L...................... 4.72 7,360 1.19 1.15 3.50 --
Class M...................... 3.99 1,552 1.95 1.85 2.80 --
Class N...................... 3.99 600 1.95 1.85 2.80 --
For the One-Month Period Ende
Class E...................... 1.35(d) 42,441 0.95(b) 0.95(b) 4.21(b) --
Class H...................... 1.36(d) 4,679 1.95(b) 1.95(b) 3.21(b) --
Class L...................... 1.33(d) 8,029 1.20(b) 1.20(b) 3.96(b) --
Class M...................... 1.27(d) 1,723 1.95(b) 1.95(b) 3.21(b) --
Class N...................... 1.27(d) 538 1.95(b) 1.95(b) 3.21(b) --
For the Year Ended September
Class E...................... 10.18 42,331 0.97 0.97 4.49 28
Class H...................... 9.03 4,853 1.97 1.97 3.49 --
Class L...................... 9.91 7,892 1.22 1.22 4.24 --
Class M...................... 9.14 1,701 1.97 1.97 3.49 --
Class N...................... 9.06 469 1.97 1.97 3.49 --
For the Year Ended September
Class E...................... 5.33 42,212 0.96 0.96 4.96 64
Class H...................... 4.29 5,021 1.96 1.96 3.96 --
Class L...................... 5.09 6,509 1.21 1.21 4.71 --
Class M...................... 4.29 1,540 1.96 1.96 3.96 --
Class N...................... 4.30 289 1.96 1.96 3.96 --
</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.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
258
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD TAX-FREE NEW YORK FUND
For the Year Ended October 31, 2004
Class A...................... $10.15 $0.37 $ 0.37 $(0.39) $(0.08) $ -- $10.42
Class B...................... 10.15 0.30 0.37 (0.32) (0.08) -- 10.42
Class C...................... 10.15 0.30 0.37 (0.32) (0.08) -- 10.42
From inception October 31, 2002, through October 31, 2003
Class A...................... 10.00 0.34 0.16 (0.35) -- -- 10.15
Class B...................... 10.00 0.27 0.16 (0.28) -- -- 10.15
Class C...................... 10.00 0.27 0.16 (0.28) -- -- 10.15
THE HARTFORD TOTAL RETURN BOND FUND
For the Year Ended October 31, 2004
Class A...................... 11.14 0.32 0.21 (0.35) (0.37) -- 10.95
Class B...................... 11.09 0.24 0.22 (0.28) (0.37) -- 10.90
Class C...................... 11.12 0.27 0.23 (0.28) (0.37) -- 10.97
Class Y...................... 11.24 0.39 0.21 (0.41) (0.37) -- 11.06
For the Year Ended October 31, 2003
Class A...................... 10.78 0.49 0.48 (0.50) (0.11) -- 11.14
Class B...................... 10.73 0.42 0.47 (0.42) (0.11) -- 11.09
Class C...................... 10.77 0.42 0.46 (0.42) (0.11) -- 11.12
Class Y...................... 10.87 0.53 0.50 (0.55) (0.11) -- 11.24
For the Year Ended October 31, 2002(g)
Class A...................... 10.90 0.47 -- (0.52) (0.07) -- 10.78
Class B...................... 10.85 0.40 -- (0.45) (0.07) -- 10.73
Class C...................... 10.89 0.40 -- (0.45) (0.07) -- 10.77
Class Y...................... 10.99 0.45 0.08 (0.58) (0.07) -- 10.87
For the Year Ended October 31, 2001
Class A...................... 10.14 0.55 0.73 (0.52) -- -- 10.90
Class B...................... 10.10 0.48 0.72 (0.45) -- -- 10.85
Class C...................... 10.14 0.49 0.71 (0.45) -- -- 10.89
Class Y...................... 10.22 0.61 0.73 (0.57) -- -- 10.99
For the Ten Months Ended October 31, 2000
Class A...................... 9.93 0.50 0.19 (0.48) -- -- 10.14
Class B...................... 9.90 0.43 0.20 (0.43) -- -- 10.10
Class C...................... 9.93 0.44 0.20 (0.43) -- -- 10.14
Class Y...................... 9.99 0.54 0.20 (0.51) -- -- 10.22
For the Year Ended December 31, 1999
Class A...................... 10.76 0.54 (0.83) (0.52) (0.02) -- 9.93
Class B...................... 10.72 0.47 (0.82) (0.45) (0.02) -- 9.90
Class C...................... 10.76(f) 0.47(f) (0.82)(f) (0.46)(f) (0.02)(f) -- 9.93(f)
Class Y...................... 10.81 0.55 (0.80) (0.55) (0.02) -- 9.99
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD TAX-FREE NEW YORK
For the Year Ended October 31
Class A...................... 7.52% $ 10,541 1.04% 0.91% 3.66% 24%
Class B...................... 6.76 1,568 1.74 1.61 2.96 --
Class C...................... 6.76 1,973 1.75 1.62 2.95 --
From inception October 31, 20
Class A...................... 5.03 8,602 1.63(b) 0.95(b) 3.34(b) 54
Class B...................... 4.30 1,051 2.38(b) 1.65(b) 2.64(b) --
Class C...................... 4.30 1,393 2.26(b) 1.65(b) 2.67(b) --
THE HARTFORD TOTAL RETURN BOND
For the Year Ended October 31
Class A...................... 5.10(j) 298,903 1.27 1.25 2.98 171
Class B...................... 4.37(j) 91,861 1.97 1.95 2.28 --
Class C...................... 4.76(j) 89,504 1.86 1.86 2.37 --
Class Y...................... 5.64 101,360 0.74 0.74 3.48 --
For the Year Ended October 31
Class A...................... 9.16 268,655 1.40 1.25 3.39 199
Class B...................... 8.44 106,077 2.13 1.95 2.70 --
Class C...................... 8.31 110,214 2.01 1.95 2.71 --
Class Y...................... 9.68 60,125 0.81 0.80 3.82 --
For the Year Ended October 31
Class A...................... 4.50 215,083 1.42 1.25 4.65 149
Class B...................... 3.77 98,028 2.10 1.95 3.92 --
Class C...................... 3.80 107,479 1.98 1.95 3.92 --
Class Y...................... 5.01 39,778 0.78 0.78 5.16 --
For the Year Ended October 31
Class A...................... 12.96 122,423 1.30 1.25 5.00 196
Class B...................... 12.12 55,999 1.96 1.95 4.30 --
Class C...................... 12.12 62,222 1.97 1.95 4.30 --
Class Y...................... 13.46 43,635 0.75 0.75 5.50 --
For the Ten Months Ended Octo
Class A...................... 7.17(d) 37,290 1.29(b) 1.24(b) 5.88(b) 140
Class B...................... 6.48(d) 22,197 1.95(b) 1.95(b) 5.17(b) --
Class C...................... 6.55(d) 16,886 1.94(b) 1.94(b) 5.18(b) --
Class Y...................... 7.60(d) 30,334 0.77(b) 0.77(b) 6.34(b) --
For the Year Ended December 3
Class A...................... (2.71) 57,320 1.29 1.24 5.32 113
Class B...................... (3.30) 21,442 1.94 1.94 4.62 --
Class C...................... (3.36) 18,136 1.97 1.95 4.62 --
Class Y...................... (2.31) 28,052 0.80 0.80 5.77 --
</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.
(j)Without the inclusion of the Payment from Affiliate as noted on the Statement
of Operations, the total returns would have been 5.08%, 4.35% and 4.57% for
classes A, B and C, respectively. The net asset value impact of the Payment
from Affiliate was less than $0.01 for classes A and B and $0.01 for class C.
@@ The amount per share rounds to zero.
259
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD U.S. GOVERNMENT SECURITIES FUND
For the Year Ended October 31, 2004
Class A...................... $9.67 $0.40 $(0.01) $(0.41) $-- $-- $9.65
Class B...................... 9.64 0.32 -- (0.34) -- -- 9.62
Class C...................... 9.63 0.32 -- (0.34) -- -- 9.61
Class E...................... 9.66 0.44 (0.02) (0.44) -- -- 9.64
Class H...................... 9.63 0.35 (0.02) (0.35) -- -- 9.61
Class L...................... 9.67 0.41 (0.01) (0.42) -- -- 9.65
Class M...................... 9.63 0.34 (0.01) (0.35) -- -- 9.61
Class N...................... 9.63 0.34 (0.02) (0.35) -- -- 9.60
Class Y...................... 9.68 0.44 (0.02) (0.44) -- -- 9.66
For the Year Ended October 31, 2003
Class A...................... 9.88 0.41 (0.21) (0.41) -- -- 9.67
Class B...................... 9.84 0.33 (0.19) (0.34) -- -- 9.64
Class C...................... 9.84 0.33 (0.20) (0.34) -- -- 9.63
Class E...................... 9.87 0.45 (0.20) (0.46) -- -- 9.66
Class H...................... 9.83 0.35 (0.19) (0.36) -- -- 9.63
Class L...................... 9.87 0.42 (0.19) (0.43) -- -- 9.67
Class M...................... 9.84 0.35 (0.20) (0.36) -- -- 9.63
Class N...................... 9.84 0.35 (0.20) (0.36) -- -- 9.63
Class Y...................... 9.89 0.45 (0.20) (0.46) -- -- 9.68
For the Period February 19, 2002, through October 31, 2002
Class A...................... 9.50 0.26 0.38 (0.26) -- -- 9.88
Class B...................... 9.46 0.21 0.38 (0.21) -- -- 9.84
Class C...................... 9.46 0.21 0.38 (0.21) -- -- 9.84
Class Y...................... 9.50 0.32 0.36 (0.29) -- -- 9.89
For the Year Ended October 31, 2002
Class E...................... 9.67 0.42 0.19 (0.41) -- -- 9.87
Class H...................... 9.64 0.32 0.19 (0.32) -- -- 9.83
Class L...................... 9.67 0.39 0.20 (0.39) -- -- 9.87
Class M...................... 9.64 0.32 0.20 (0.32) -- -- 9.84
Class N...................... 9.64 0.32 0.20 (0.32) -- -- 9.84
For the Three-Month Period Ended October 31, 2001
Class E...................... 9.37 0.13 0.30 (0.13) -- -- 9.67
Class H...................... 9.34 0.10 0.30 (0.10) -- -- 9.64
Class L...................... 9.37 0.12 0.30 (0.12) -- -- 9.67
Class M...................... 9.34 0.10 0.30 (0.10) -- -- 9.64
Class N...................... 9.34 0.10 0.30 (0.10) -- -- 9.64
For the Year Ended July 31, 2001
Class E...................... 8.86 0.54 0.52 (0.55) -- -- 9.37
Class H...................... 8.83 0.45 0.52 (0.46) -- -- 9.34
Class L...................... 8.86 0.52 0.52 (0.53) -- -- 9.37
Class M...................... 8.83 0.45 0.52 (0.46) -- -- 9.34
Class N...................... 8.83 0.45 0.52 (0.46) -- -- 9.34
For the Year Ended July 31, 2000
Class E...................... 8.96 0.52 (0.10) (0.52) -- -- 8.86
Class H...................... 8.94 0.43 (0.10) (0.44) -- -- 8.83
Class L...................... 8.96 0.50 (0.10) (0.50) -- -- 8.86
Class M...................... 8.94 0.43 (0.10) (0.44) -- -- 8.83
Class N...................... 8.93 0.44 (0.10) (0.44) -- -- 8.83
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD U.S. GOVERNMENT S
For the Year Ended October 31
Class A...................... 4.08% $ 53,401 1.38% 1.20% 4.09% 110%
Class B...................... 3.37 26,218 2.11 1.90 3.39 --
Class C...................... 3.37 13,926 2.00 1.90 3.38 --
Class E...................... 4.50 119,923 0.79 0.79 4.50 --
Class H...................... 3.48 3,914 1.79 1.79 3.49 --
Class L...................... 4.24 38,613 1.04 1.04 4.26 --
Class M...................... 3.47 3,697 1.79 1.79 3.50 --
Class N...................... 3.37 1,056 1.79 1.79 3.49 --
Class Y...................... 4.48 1 0.83 0.83 4.51 --
For the Year Ended October 31
Class A...................... 2.06 65,337 1.48 1.20 4.11 108
Class B...................... 1.45 38,210 2.21 1.90 3.41 --
Class C...................... 1.34 26,626 2.07 1.90 3.43 --
Class E...................... 2.49 135,954 0.81 0.81 4.49 --
Class H...................... 1.57 6,283 1.80 1.80 3.50 --
Class L...................... 2.32 43,202 1.06 1.06 4.24 --
Class M...................... 1.47 4,588 1.80 1.80 3.50 --
Class N...................... 1.47 1,388 1.80 1.80 3.49 --
Class Y...................... 2.51 1 0.87 0.80 4.50 --
For the Period February 19, 2
Class A...................... 6.87(d) 75,245 1.59(b) 1.20(b) 3.58(b) 218
Class B...................... 6.36(d) 39,276 2.28(b) 1.90(b) 2.87(b) --
Class C...................... 6.36(d) 40,708 2.11(b) 1.90(b) 2.86(b) --
Class Y...................... 7.32(d) 1 0.74(b) 0.74(b) 4.36(b) --
For the Year Ended October 31
Class E...................... 6.55 156,085 0.81 0.81 4.45 218
Class H...................... 5.41 9,319 1.81 1.81 3.45 --
Class L...................... 6.29 49,048 1.06 1.06 4.20 --
Class M...................... 5.51 6,660 1.81 1.81 3.44 --
Class N...................... 5.52 1,717 1.81 1.81 3.47 --
For the Three-Month Period En
Class E...................... 4.57(d) 187,712 0.79(b) 0.79(b) 5.25(b) 32
Class H...................... 4.31(d) 10,770 1.79(b) 1.79(b) 4.25(b) --
Class L...................... 4.50(d) 52,579 1.04(b) 1.04(b) 5.01(b) --
Class M...................... 4.32(d) 6,582 1.79(b) 1.79(b) 4.25(b) --
Class N...................... 4.31(d) 2,275 1.79(b) 1.79(b) 4.25(b) --
For the Year Ended July 31, 2
Class E...................... 12.30 182,170 0.79 0.79 5.93 136
Class H...................... 11.24 10,078 1.79 1.79 4.92 --
Class L...................... 12.02 47,798 1.04 1.04 5.67 --
Class M...................... 11.24 5,284 1.79 1.79 4.92 --
Class N...................... 11.24 1,603 1.79 1.79 4.92 --
For the Year Ended July 31, 2
Class E...................... 4.91 184,520 0.79 0.79 5.96 181
Class H...................... 3.79 8,345 1.79 1.79 4.96 --
Class L...................... 4.62 43,620 1.04 1.04 5.71 --
Class M...................... 3.79 4,264 1.79 1.79 4.96 --
Class N...................... 3.91 1,606 1.79 1.79 4.93 --
</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.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
260
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD VALUE FUND
For the Year Ended October 31, 2004(g)
Class A...................... $ 8.92 $ 0.07 $ 0.79 $(0.07) $ -- $-- $9.71
Class B...................... 8.83 0.01 0.78 (0.02) -- -- 9.60
Class C...................... 8.83 0.01 0.78 (0.02) -- -- 9.60
Class Y...................... 8.95 0.10 0.77 (0.11) -- -- 9.71
For the Year Ended October 31, 2003(g)
Class A...................... 7.59 0.08 1.31 (0.06) -- -- 8.92
Class B...................... 7.51 0.03 1.29 -- -- -- 8.83
Class C...................... 7.51 0.03 1.29 -- -- -- 8.83
Class Y...................... 7.64 0.16 1.25 (0.10) -- -- 8.95
For the Year Ended October 31, 2002(g)
Class A...................... 9.02 0.05 (1.43) -- (0.05) -- 7.59
Class B...................... 8.99 (0.02) (1.41) -- (0.05) -- 7.51
Class C...................... 8.99 (0.02) (1.41) -- (0.05) -- 7.51
Class Y...................... 9.04 0.09 (1.44) -- (0.05) -- 7.64
From inception April 30, 2001, through October 31, 2001
Class A...................... 10.00 0.01 (0.99) -- -- -- 9.02
Class B...................... 10.00 -- (1.01) -- -- -- 8.99
Class C...................... 10.00 -- (1.01) -- -- -- 8.99
Class Y...................... 10.00 0.05 (1.01) -- -- -- 9.04
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD VALUE FUND
For the Year Ended October 31
Class A...................... 9.70% $56,845 1.46% 1.45%(j) 0.76% 34%
Class B...................... 8.91 8,948 2.36 2.15(j) 0.06 --
Class C...................... 8.91 10,838 2.17 2.15(j) 0.06 --
Class Y...................... 9.76 21,373 0.91 0.91(j) 1.32 --
For the Year Ended October 31
Class A...................... 18.43 42,101 1.57 1.45 1.02 35
Class B...................... 17.58 7,305 2.30 2.15 0.32 --
Class C...................... 17.58 10,231 2.18 2.15 0.32 --
Class Y...................... 18.66 27 1.00 1.00 1.46 --
For the Year Ended October 31
Class A...................... (15.42) 30,010 1.63 1.45 0.69 35
Class B...................... (16.03) 5,222 2.31 2.15 (0.02) --
Class C...................... (16.03) 9,110 2.21 2.15 (0.04) --
Class Y...................... (15.05) 230 0.98 0.98 1.09 --
From inception April 30, 2001
Class A...................... (9.80)(d) 13,728 1.66(b) 1.45(b) 0.53(b) 12
Class B...................... (10.10)(d) 2,029 2.36(b) 2.15(b) (0.17)(b) --
Class C...................... (10.10)(d) 4,769 2.34(b) 2.15(b) (0.17)(b) --
Class Y...................... (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.
(i)This includes a tax return of capital of less than $0.01.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.44%, 2.14%, 2.14%, 0.90%
for classes A, B, C and Y, respectively.
@@ The amount per share rounds to zero.
261
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM NET ASSET
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS VALUE AT
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM END OF
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL PERIOD
--------- ---------- ------------ ---------- ------------- ------------- ---------
THE HARTFORD VALUE OPPORTUNITIES FUND
For the Year Ended October 31, 2004
Class A...................... $12.15 $ 0.01 $ 1.90 $ -- $ -- $ -- $14.06
Class B...................... 11.53 (0.06) 1.77 -- -- -- 13.24
Class C...................... 11.53 (0.06) 1.78 -- -- -- 13.25
Class H...................... 11.54 (0.10) 1.81 -- -- -- 13.25
Class L...................... 12.15 -- 1.91 -- -- -- 14.06
Class M...................... 11.53 (0.09) 1.80 -- -- -- 13.24
Class N...................... 11.54 (0.09) 1.81 -- -- -- 13.26
Class Y...................... 12.22 0.01 1.94 -- -- -- 14.17
For the Year Ended October 31, 2003
Class A...................... 9.26 (0.01) 2.90 -- -- -- 12.15
Class B...................... 8.84 (0.04) 2.73 -- -- -- 11.53
Class C...................... 8.85 (0.04) 2.72 -- -- -- 11.53
Class H...................... 8.85 (0.08) 2.77 -- -- -- 11.54
Class L...................... 9.26 (0.01) 2.90 -- -- -- 12.15
Class M...................... 8.85 (0.08) 2.76 -- -- -- 11.53
Class N...................... 8.85 (0.08) 2.77 -- -- -- 11.54
Class Y...................... 9.30 0.01 2.91 -- -- -- 12.22
For the Period February 19, 2002, through October 31, 2002
Class A...................... 11.73 -- (2.47) -- -- -- 9.26
Class B...................... 11.26 (0.02) (2.40) -- -- -- 8.84
Class C...................... 11.26 (0.02) (2.39) -- -- -- 8.85
Class Y...................... 11.73 0.05 (2.48) -- -- -- 9.30
For the Year Ended October 31, 2002
Class H...................... 11.58 (0.11) (1.81) -- (0.81) -- 8.85
Class L...................... 11.99 -- (1.92) -- (0.81) -- 9.26
Class M...................... 11.57 (0.08) (1.83) -- (0.81) -- 8.85
Class N...................... 11.57 (0.13) (1.78) -- (0.81) -- 8.85
For the Two-Month Period Ended October 31, 2001
Class H...................... 12.86 (0.02) (1.26) -- -- -- 11.58
Class L...................... 13.30 -- (1.31) -- -- -- 11.99
Class M...................... 12.85 (0.02) (1.26) -- -- -- 11.57
Class N...................... 12.86 (0.03) (1.26) -- -- -- 11.57
For the Year Ended August 31, 2001
Class H...................... 13.95 (0.07) 0.30 -- (1.32) -- 12.86
Class L...................... 14.30 0.03 0.31 (0.02) (1.32) -- 13.30
Class M...................... 13.94 (0.07) 0.30 -- (1.32) -- 12.85
Class N...................... 13.95 (0.07) 0.30 -- (1.32) -- 12.86
For the Year Ended August 31, 2000
Class H...................... 13.07 (0.08) 1.89 -- (0.93) -- 13.95
Class L...................... 13.28 0.01 1.94 -- (0.93) -- 14.30
Class M...................... 13.06 (0.08) 1.89 -- (0.93) -- 13.94
Class N...................... 13.07 (0.08) 1.89 -- (0.93) -- 13.95
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD VALUE OPPORTUNITI
For the Year Ended October 31
Class A...................... 15.72% $24,601 1.82% 1.45%(j) 0.08% 52%
Class B...................... 14.83 5,709 2.70 2.15(j) (0.64) --
Class C...................... 14.92 5,627 2.47 2.15(j) (0.64) --
Class H...................... 14.82 5,815 2.17 2.15(j) (0.71) --
Class L...................... 15.72 25,687 1.42 1.42(j) 0.04 --
Class M...................... 14.83 8,139 2.17 2.15(j) (0.70) --
Class N...................... 14.90 2,143 2.17 2.15(j) (0.70) --
Class Y...................... 15.96 10,101 1.16 1.16(j) 0.34 --
For the Year Ended October 31
Class A...................... 31.21 5,917 1.92 1.45 (0.10) 57
Class B...................... 30.43 1,932 2.63 2.15 (0.80) --
Class C...................... 30.28 1,613 2.51 2.15 (0.81) --
Class H...................... 30.40 6,526 2.26 2.15 (0.82) --
Class L...................... 31.21 22,701 1.51 1.45 (0.11) --
Class M...................... 30.28 8,015 2.26 2.15 (0.82) --
Class N...................... 30.40 1,989 2.26 2.15 (0.82) --
Class Y...................... 31.40 1 1.33 1.25 0.08 --
For the Period February 19, 2
Class A...................... (21.06)(d) 2,600 1.92(b) 1.45(b) 0.04(b) 70
Class B...................... (21.45)(d) 481 2.61(b) 2.15(b) (0.71)(b) --
Class C...................... (21.41)(d) 430 2.48(b) 2.15(b) (0.75)(b) --
Class Y...................... (20.75)(d) 1 1.13(b) 1.00(b) 0.49(b) --
For the Year Ended October 31
Class H...................... (17.99) 5,634 2.17 2.15 (0.82) 70
Class L...................... (17.34) 19,684 1.43 1.43 (0.11) --
Class M...................... (17.92) 6,669 2.18 2.15 (0.82) --
Class N...................... (17.92) 1,749 2.18 2.15 (0.83) --
For the Two-Month Period Ende
Class H...................... (9.95)(d) 7,914 2.18(b) 2.18(b) (0.89)(b) 12
Class L...................... (9.85)(d) 27,982 1.43(b) 1.43(b) (0.14)(b) --
Class M...................... (9.96)(d) 8,700 2.18(b) 2.18(b) (0.89)(b) --
Class N...................... (10.03)(d) 2,636 2.18(b) 2.18(b) (0.89)(b) --
For the Year Ended August 31,
Class H...................... 1.53 8,967 2.16 2.16 (0.70) 177
Class L...................... 2.29 30,480 1.41 1.41 0.05 --
Class M...................... 1.53 9,668 2.16 2.16 (0.70) --
Class N...................... 1.53 2,935 2.16 2.16 (0.70) --
For the Year Ended August 31,
Class H...................... 14.90 8,796 2.17 2.17 (0.61) 228
Class L...................... 15.76 39,975 1.42 1.42 0.14 --
Class M...................... 14.90 7,633 2.17 2.17 (0.61) --
Class N...................... 14.90 2,662 2.17 2.17 (0.61) --
</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.
(j)The ratio of expenses to average net assets excludes commission recapture but
includes fee waivers and/or expense reimbursements. Had the commission
recapture been included, the ratio would have been 1.44%, 2.15%, 2.15%,
2.14%, 1.41%, 2.14%, 2.14% and 1.15% for classes A, B, C, H, L, M, N and Y,
respectively.
@@ The amount per share rounds to zero.
The accompanying notes are an integral part of these financial statements.
262
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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
Aggressive Growth Allocation Fund, The Hartford Balanced Allocation Fund, The
Hartford Capital Appreciation Fund, The Hartford Conservative Allocation 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 Allocation Fund, The Hartford Growth Fund,
The Hartford Growth Opportunities Fund, The Hartford High Yield Fund, The
Hartford Income Allocation 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 (within The
Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.) (the
"Funds") as of October 31, 2004, 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 the standards of the Public Company
Accounting Oversight Board (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 of material misstatement. An audit
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, 2004, by
correspondence with the custodian and brokers or by other appropriate auditing
procedures where replies from brokers were not received. An audit also 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, 2004, 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 U.S. generally accepted
accounting principles.
ERNST & YOUNG LLC
Minneapolis, Minnesota
December 3, 2004
263
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTORS AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
The Board of Directors is responsible for protecting the interests of
shareholders and overseeing the management of the Funds. The Board may exercise
all powers of the funds, except those powers that are conferred solely upon or
reserved to the shareholders. Directors may serve until they resign, retire or
are removed by vote of shareholders or of the directors.
Directors and officers who are employed by or who have a substantial financial
interest in The Hartford are considered "interested" persons of the Funds
pursuant to the Investment Company Act of 1940. Each officer and three of the
Funds' directors, as noted in the table below, are "interested" persons of the
funds. Except for Mr. Znamierowski, each director serves as a director for The
Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., The Hartford
Income Shares Fund, Inc., Hartford Series Fund, Inc. and Hartford HLS Series
Fund II, Inc., which collectively consist of 76 Funds. Mr. Znamierowski oversees
58 funds and serves as a director only for The Hartford Mutual Funds, Inc. and
Hartford Series Fund, Inc. Correspondence may be sent to directors and officers
c/o Hartford Mutual Funds, P.O. Box 2999, Hartford, CT 06104-2999, except that
correspondence to Ms. Fagely and Mr. Beltz may be sent to 500 Bielenberg Dr.,
Woodbury, MN 55125.
The table below sets forth, for each director and officer, his or her name, age,
current position with the funds, date first elected or appointed to The Hartford
Mutual Funds, Inc. ("MF") and The Hartford Mutual Funds II, Inc. ("MF2"),
principal occupation, and, for directors, other directorships held. The funds'
statement of additional information contains further information on the
directors and is available free of charge by calling 1-888-843-7824 or writing
to Hartford Mutual Funds, P.O. Box 64387, St. Paul, MN 55164-0387.
NON-INTERESTED DIRECTORS
LYNN S. BIRDSONG (age 58) Director since 2003
From 1979 to 2002, Mr. Birdsong was a 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.
ROBERT M. GAVIN, JR. (age 64) Director since 2002 (MF) and 1986 (MF2), Chairman
of the Board, since 2004, Chairman of the
Litigation Committee
Dr. Gavin is an educational consultant. Prior to September 1, 2001, he was
President of Cranbrook Education Community; and prior to July 1996, he was
President of Macalester College, St. Paul, Minnesota. Dr. Gavin served as
interim President of the Science Museum of Minnesota from June 2003 until
February 2004.
DUANE E. HILL (age 59) Director since 2001 (MF) and 2002 (MF2), Chairman of the
Nominating Committee
Mr. Hill is Partner Emeritus and a 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.
PHILLIP O. PETERSON (age 60) Director since 2002 (MF) and 2000 (MF2), Chairman
of the Audit Committee
Mr. Peterson is a mutual fund industry consultant. He has served as
independent president of the Strong Mutual Funds since January 2004. Mr.
Peterson was a partner of KPMG LLP until July 1999.
MILLARD H. PRYOR, JR. (age 71) Director since 1996 (MF) and 2002 (MF2), Lead
Director since 2004
Mr. Pryor has served as Managing Director of Pryor & Clark Company (real
estate investment), Hartford, Connecticut, since June 1992. Mr. Pryor is a
Director of Infodata Systems, Inc. (software company) and CompuDyne
Corporation (security products and services).
INTERESTED DIRECTORS AND OFFICERS
THOMAS M. MARRA (age 46) Director since 2002
Mr. Marra is President and Chief Operating Officer of Hartford Life, Inc.
He is also a member of the Board of Directors and a 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"). Mr. Marra is a member of the Board of
Directors of The Hartford.
LOWNDES A. SMITH (age 65) Director since 1996 (MF) and 2002 (MF2)
Mr. Smith served as Vice Chairman 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 has served as a Director of White Mountains
Insurance Group since November 2003.
DAVID M. ZNAMIEROWSKI (age 44) Director since 1999 (MF), President since 2001
Mr. Znamierowski currently serves 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.
264
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTORS AND OFFICERS -- (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
OTHER OFFICERS
ROBERT W. BELTZ, JR. (age 55) Vice President since 2002 (MF) and 1993 (MF2)
Mr. Beltz currently serves as Vice President, Securities Operations of
Hartford Administrative Services Company ("HASCO"). Since December 2001, he
has served as Assistant Vice President of Hartford Life Insurance Company
KEVIN J. CARR (age 50) Vice President and Secretary since 1996 (MF) and 2001
(MF2)
Mr. Carr has served as The Hartford's Assistant General Counsel since 1999,
and previously served as Counsel (1996-1999) and Associate Counsel
(1995-1996). Mr. Carr is also Vice President and Assistant Secretary of HL
Advisors and HIFSCO and Assistant Secretary of Hartford Investment.
WILLIAM H. DAVISON, JR. (age 47) Vice President since 2002
Mr. Davison is a Managing Director and Director of the Funds Management
Group of Hartford Investment. Mr. Davison is also a Senior Vice President
of HIFSCO and HL Advisors.
TAMARA L. FAGELY (age 46) Vice President, Controller and Treasurer since 2002
(MF) and 1993 (MF2)
Ms. Fagely has been Vice President of HASCO since 1998. Prior to 1998, she
was Second Vice 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, 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 W. FERRIS (age 49) Vice President since 2002
Mr. Ferris serves as Vice President and Director of Sales and Marketing in
the Investment Products Division of Hartford Life Insurance Company. He is
also a Managing Member of HL Advisors.
MARY JANE FORTIN (age 40) Vice President since 2003
Ms. Fortin is Senior Vice President and Director of Mutual Funds and 529
Programs for Hartford Life Insurance Company. Previously, Ms. Fortin served
as Senior Vice President and Chief Accounting Officer of Hartford Life.
GEORGE R. JAY (age 52) Vice President since 1996 (MF) and 2001 (MF2)
Mr. Jay serves as Assistant Vice President of Hartford Life Insurance
Company. He is also Controller of HL Advisors, Vice President of The
Hartford Income Shares Fund, Inc. and Vice President of Hartford Series
Fund, Inc. and Hartford HLS Series Fund II, Inc.
STEPHEN T. JOYCE (age 45) Vice President since 2000 (MF) and 2001 (MF2)
Mr. Joyce currently serves as Senior Vice President and Director of the
Institutional Solutions Group for Hartford Life Insurance Company. Mr.
Joyce is also Senior Vice President of HL Advisors. Previously, he served
as Vice President (1997-1999) and Assistant Vice President (1994-1997) of
Hartford Life Insurance Company.
DAVID N. LEVENSON (age 38) Vice President since 2000 (MF) and 2001 (MF2)
Mr. Levenson serves as Senior Vice 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 and HL Advisors.
JOHN C. WALTERS (age 42) Vice President since 2000 (MF) and 2001 (MF2)
Mr. Walters serves as Executive Vice President and Director of the
Investment Products Division of Hartford Life Insurance Company. He is also
a Managing Member and Executive Vice President of HIFSCO and HL Advisors.
Previously, Mr. Walters was with First Union Securities.
HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities and a record of how the Funds
voted any proxies for the twelve month period ended June 30, 2004 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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Funds file a complete schedule of portfolio holdings with the Commission for
the first and third quarters of each fiscal year on Form N-Q. The Funds Forms
N-Q will be available (1) without charge, upon request, by calling 888-843-7824
and (2) on the Securities and Exchange Commission's website at www.sec.gov. The
Forms N-Q may be reviewed and copied at the Commission's Public Reference Room
in Washington, DC. Information on the operation of the Public Reference Room may
be obtained by calling 1-800-SEC-0330.
265
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 Funds' 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 Funds. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in early 2005.
Shareholders may wish to consult a tax advisor on how to report
distributions for state and local purposes.
The Fund's designate the following on income distributions:
<Table>
<Caption>
OTHER
DIRECT
FEDERAL OTHER
U.S. TREASURY* OBLIGATIONS* SECURITIES* TOTAL* DRD** QDI***
-------------- ------------ ----------- ------ ------ ------
Advisers Fund.................................... 14.01% 0.00% 85.99% 100.00% 91.75% 92.21%
Disciplined Equity Fund.......................... -- -- -- -- 100.00% 100.00%
Dividend and Growth Fund......................... -- -- -- -- 100.00% 100.00%
Equity Income Fund............................... -- -- -- -- 100.00% 100.00%
Global Financial Services Fund................... -- -- -- -- 100.00% 99.58%
Income Fund...................................... 19.30% 0.00% 80.30% 100.00% -- --
Inflation Plus Fund.............................. 98.01% 0.00% 1.99% 100.00% -- --
International Opportunities Fund................. -- -- -- -- 2.79% 49.99%
International Small Company Fund................. -- -- -- -- -- 6.27%
Short Duration Fund.............................. 16.58% 0.37% 83.05% 100.00% -- --
Total Return Bond Fund........................... 12.91% 0.63% 86.46% 100.00% -- --
U.S. Government Securities Fund.................. 8.45% 3.21% 88.34% 100.00% -- --
Value Fund....................................... -- -- -- -- 100.00% 100.00%
</Table>
* The income received from federal obligations.
** Income distributions, taxable as dividend income which qualify for deduction
by corporations.
*** For the fiscal year ended October 31, 2004, 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%.
<Table>
<Caption>
FOREIGN TAX CREDIT PASS-THROUGH
-------------------------------
The following Funds intend to make an election under the
Internal Revenue Code Section 853 to pass-through foreign
taxes paid by the Funds to their shareholders as follows:
Global Communications Fund.................................. $ 23
International Small Company Fund............................ 148
</Table>
Complete information will be computed and reported in conjunction with your 2004
Form 1099-DIV.
Detailed below are the per share distributions made for the fiscal year
ended October 31, 2004.
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N
---- ---------- ------- ------- ------- ------- ------- ------- ------- -------
ADVISERS FUND
Income.................... 12/23/2003 0.041 0.015 0.019
Income.................... 3/26/2004 0.039 0.012 0.016
Income.................... 6/25/2004 0.039 0.012 0.015
Income.................... 9/27/2004 0.059 0.033 0.035
------ ------ ------
Total Income
Distributions........... 0.178 0.072 0.085
------ ------ ------
BALANCED ALLOCATION FUND
Income.................... 9/28/2004 0.015 0.002 0.002
------ ------ ------
CONSERVATIVE ALLOCATION
FUND
Income.................... 9/28/2004 0.025 0.010 0.010
------ ------ ------
DISCIPLINED EQUITY FUND
Income.................... 12/23/2003 0.006
------
<Caption>
FUND CLASS Y CLASS Z
---- ------- -------
ADVISERS FUND
Income.................... 0.061
Income.................... 0.059
Income.................... 0.059
Income.................... 0.078
------
Total Income
Distributions........... 0.257
------
BALANCED ALLOCATION FUND
Income....................
CONSERVATIVE ALLOCATION
FUND
Income....................
DISCIPLINED EQUITY FUND
Income.................... 0.048
------
</Table>
266
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N
---- ---------- ------- ------- ------- ------- ------- ------- ------- -------
DIVIDEND AND GROWTH FUND
Income.................... 12/23/2003 0.031 0.002 0.006
Income.................... 3/26/2004 0.029 0.001 0.002
Income.................... 6/25/2004 0.036 0.004 0.010
Income.................... 9/27/2004 0.047 0.013 0.020
------ ------ ------
Total Income
Distributions........... 0.143 0.020 0.038
------ ------ ------
EQUITY INCOME FUND
Short-Term Capital Gain... 11/10/2003 0.003 0.003 0.003
------ ------ ------
Income.................... 12/23/2003 0.047 0.027 0.030
Income.................... 3/26/2004 0.050 0.031 0.033
Income.................... 6/25/2004 0.050 0.030 0.032
Income.................... 9/27/2004 0.056 0.035 0.036
------ ------ ------
Total Income
Distributions........... 0.203 0.123 0.131
------ ------ ------
GLOBAL FINANCIAL SERVICES
FUND
Income.................... 12/23/2003 0.084 0.026 0.026
------ ------ ------
GLOBAL HEALTH FUND
Long-Term Capital Gain.... 11/10/2003 0.064 0.064 0.064
------ ------ ------
HIGH YIELD FUND
Income.................... 11/24/2003 0.043 0.038 0.038
Income.................... 12/23/2003 0.043 0.038 0.038
Income.................... 1/27/2004 0.041 0.036 0.036
Income.................... 2/24/2004 0.038 0.034 0.034
Income.................... 3/26/2004 0.034 0.030 0.030
Income.................... 4/27/2004 0.036 0.031 0.032
Income.................... 5/25/2004 0.037 0.032 0.032
Income.................... 6/25/2004 0.038 0.033 0.033
Income.................... 7/27/2004 0.039 0.034 0.035
Income.................... 8/26/2004 0.040 0.035 0.036
Income.................... 9/27/2004 0.040 0.035 0.036
Income.................... 10/28/2004 0.044 0.036 0.039
------ ------ ------
Total Income
Distributions........... 0.473 0.412 0.419
------ ------ ------
INCOME ALLOCATION FUND
Income.................... 7/28/2004 0.025 0.019 0.019
Income.................... 8/27/2004 0.024 0.018 0.018
Income.................... 9/28/2004 0.021 0.016 0.016
Income.................... 10/29/2004 0.021 0.014 0.014
------ ------ ------
Total Income
Distributions........... 0.091 0.067 0.067
------ ------ ------
INCOME FUND
Income.................... 11/24/2003 0.046 0.040 0.040
Income.................... 12/23/2003 0.046 0.040 0.040
Income.................... 1/27/2004 0.040 0.034 0.034
Income.................... 2/24/2004 0.038 0.032 0.032
Income.................... 3/26/2004 0.043 0.037 0.037
Income.................... 4/27/2004 0.045 0.040 0.040
Income.................... 5/25/2004 0.046 0.040 0.040
Income.................... 6/25/2004 0.045 0.039 0.039
Income.................... 7/27/2004 0.043 0.037 0.037
Income.................... 8/26/2004 0.042 0.036 0.036
Income.................... 9/27/2004 0.040 0.034 0.034
Income.................... 10/28/2004 0.038 0.032 0.032
------ ------ ------
Total Income
Distributions........... 0.512 0.438 0.438
------ ------ ------
<Caption>
FUND CLASS Y CLASS Z
---- ------- -------
DIVIDEND AND GROWTH FUND
Income.................... 0.054
Income.................... 0.052
Income.................... 0.060
Income.................... 0.070
------
Total Income
Distributions........... 0.236
------
EQUITY INCOME FUND
Short-Term Capital Gain... 0.003
------
Income.................... 0.055
Income.................... 0.059
Income.................... 0.062
Income.................... 0.070
------
Total Income
Distributions........... 0.246
------
GLOBAL FINANCIAL SERVICES
FUND
Income.................... 0.122
------
GLOBAL HEALTH FUND
Long-Term Capital Gain.... 0.064
------
HIGH YIELD FUND
Income.................... 0.046
Income.................... 0.046
Income.................... 0.045
Income.................... 0.042
Income.................... 0.039
Income.................... 0.040
Income.................... 0.041
Income.................... 0.042
Income.................... 0.043
Income.................... 0.044
Income.................... 0.044
Income.................... 0.044
------
Total Income
Distributions........... 0.516
------
INCOME ALLOCATION FUND
Income....................
Income....................
Income....................
Income....................
Total Income
Distributions...........
INCOME FUND
Income....................
Income.................... 0.047
Income.................... 0.043
Income.................... 0.041
Income.................... 0.046
Income.................... 0.048
Income.................... 0.048
Income.................... 0.048
Income.................... 0.046
Income.................... 0.046
Income.................... 0.042
Income.................... 0.041
------
Total Income
Distributions........... 0.496
------
</Table>
267
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (CONTINUED)(UNAUDITED)
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N
---- ---------- ------- ------- ------- ------- ------- ------- ------- -------
INFLATION PLUS FUND
Short-Term Capital Gain... 11/10/2003 0.041 0.041 0.041
------ ------ ------
Income.................... 11/24/2003 0.018 0.011 0.011
Income.................... 12/23/2003 0.020 0.014 0.014
Income.................... 1/27/2004 0.011 0.004 0.004
Income.................... 2/24/2004 0.016 0.010 0.010
Income.................... 3/26/2004 0.032 0.026 0.026
Income.................... 4/27/2004 0.031 0.025 0.025
Income.................... 5/25/2004 0.031 0.025 0.025
Income.................... 6/25/2004 0.033 0.027 0.027
Income.................... 7/27/2004 0.035 0.029 0.029
Income.................... 8/26/2004 0.027 0.021 0.021
Income.................... 9/27/2004 0.023 0.016 0.016
Income.................... 10/28/2004 0.028 0.022 0.022
------ ------ ------
Total Income
Distributions........... 0.305 0.230 0.230
------ ------ ------
INTERNATIONAL CAPITAL
APPRECIATION FUND
Short-Term Capital Gain... 11/10/2003 0.019 0.019 0.019
Long-Term Capital Gain.... 11/10/2003 0.034 0.034 0.034
------ ------ ------
Total Capital Gain
Distributions........... 0.053 0.053 0.053
------ ------ ------
INTERNATIONAL
OPPORTUNITIES FUND
Income.................... 12/23/2003 0.004
------
INTERNATIONAL SMALL
COMPANY FUND
Short-Term Capital Gain... 11/10/2003 0.846 0.846 0.846
Long-Term Capital Gain.... 11/10/2003 0.024 0.024 0.024
------ ------ ------
Total Capital Gain
Distributions........... 0.870 0.870 0.870
------ ------ ------
Income.................... 12/23/2003 0.005
------
SHORT DURATION FUND
Income.................... 11/24/2003 0.027 0.021 0.021
Income.................... 12/23/2003 0.027 0.021 0.021
Income.................... 1/27/2004 0.026 0.020 0.020
Income.................... 2/24/2004 0.024 0.018 0.018
Income.................... 3/26/2004 0.026 0.020 0.020
Income.................... 4/27/2004 0.028 0.023 0.023
Income.................... 5/25/2004 0.029 0.022 0.022
Income.................... 6/25/2004 0.025 0.019 0.019
Income.................... 7/27/2004 0.026 0.020 0.020
Income.................... 8/26/2004 0.022 0.016 0.016
Income.................... 9/27/2004 0.020 0.014 0.014
Income.................... 10/28/2004 0.020 0.015 0.015
------ ------ ------
Total Income
Distributions........... 0.300 0.229 0.229
------ ------ ------
<Caption>
FUND CLASS Y CLASS Z
---- ------- -------
INFLATION PLUS FUND
Short-Term Capital Gain...
Income....................
Income.................... 0.023
Income.................... 0.013
Income.................... 0.019
Income.................... 0.035
Income.................... 0.034
Income.................... 0.034
Income.................... 0.035
Income.................... 0.038
Income.................... 0.030
Income.................... 0.025
Income.................... 0.031
------
Total Income
Distributions........... 0.317
------
INTERNATIONAL CAPITAL
APPRECIATION FUND
Short-Term Capital Gain... 0.019
Long-Term Capital Gain.... 0.034
------
Total Capital Gain
Distributions........... 0.053
------
INTERNATIONAL
OPPORTUNITIES FUND
Income.................... 0.048
------
INTERNATIONAL SMALL
COMPANY FUND
Short-Term Capital Gain... 0.846
Long-Term Capital Gain.... 0.024
------
Total Capital Gain
Distributions........... 0.870
------
Income.................... 0.050
------
SHORT DURATION FUND
Income....................
Income.................... 0.029
Income.................... 0.028
Income.................... 0.026
Income.................... 0.029
Income.................... 0.031
Income.................... 0.031
Income.................... 0.028
Income.................... 0.029
Income.................... 0.024
Income.................... 0.023
Income.................... 0.024
------
Total Income
Distributions........... 0.302
------
</Table>
268
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N
---- ---------- ------- ------- ------- ------- ------- ------- ------- -------
TAX-FREE CALIFORNIA FUND
Tax Exempt Income......... 11/24/2003 0.040 0.034 0.034
Tax Exempt Income......... 12/23/2003 0.038 0.031 0.031
Tax Exempt Income......... 1/27/2004 0.034 0.028 0.028
Tax Exempt Income......... 2/24/2004 0.034 0.028 0.028
Tax Exempt Income......... 3/26/2004 0.033 0.027 0.027
Tax Exempt Income......... 4/27/2004 0.032 0.026 0.026
Tax Exempt Income......... 5/25/2004 0.032 0.026 0.026
Tax Exempt Income......... 6/25/2004 0.033 0.028 0.028
Tax Exempt Income......... 7/27/2004 0.032 0.027 0.027
Tax Exempt Income......... 8/26/2004 0.033 0.027 0.027
Tax Exempt Income......... 9/27/2004 0.032 0.026 0.026
Tax Exempt Income......... 10/28/2004 0.029 0.023 0.023
------ ------ ------
Total Income
Distributions........... 0.402 0.331 0.331
------ ------ ------
TAX-FREE MINNESOTA FUND
Short-Term Capital Gain... 11/10/2003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003
Long-Term Capital Gain.... 11/10/2003 0.097 0.097 0.097 0.097 0.097 0.097 0.097 0.097
Long-Term Capital Gain.... 10/28/2004 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170
------ ------ ------ ------ ------ ------ ------ ------
Total Capital Gain
Distributions........... 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270
------ ------ ------ ------ ------ ------ ------ ------
Tax Exempt Income......... 11/24/2003 0.031 0.025 0.025 0.035 0.026 0.032 0.026 0.026
Tax Exempt Income......... 12/23/2003 0.033 0.026 0.026 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 1/27/2004 0.033 0.026 0.026 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 2/24/2004 0.033 0.027 0.027 0.035 0.027 0.033 0.027 0.027
Tax Exempt Income......... 3/26/2004 0.033 0.027 0.027 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 4/27/2004 0.033 0.027 0.027 0.035 0.027 0.033 0.027 0.027
Tax Exempt Income......... 5/25/2004 0.033 0.027 0.027 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 6/25/2004 0.033 0.027 0.027 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 7/27/2004 0.034 0.027 0.027 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 8/26/2004 0.034 0.028 0.028 0.036 0.027 0.034 0.027 0.027
Tax Exempt Income......... 9/27/2004 0.034 0.028 0.028 0.035 0.028 0.034 0.028 0.028
Tax Exempt Income......... 10/28/2004 0.033 0.027 0.027 0.034 0.027 0.033 0.027 0.027
------ ------ ------ ------ ------ ------ ------ ------
Total Income
Distributions........... 0.397 0.322 0.322 0.426 0.324 0.403 0.324 0.324
------ ------ ------ ------ ------ ------ ------ ------
TAX-FREE NATIONAL FUND
Short-Term Capital Gain... 11/10/2003 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033
Short-Term Capital Gain... 10/28/2004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004
Long-Term Capital Gain.... 11/10/2003 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075
Long-Term Capital Gain.... 10/28/2004 0.055 0.055 0.055 0.055 0.055 0.055 0.055 0.055
------ ------ ------ ------ ------ ------ ------ ------
Total Capital Gain
Distributions........... 0.167 0.167 0.167 0.167 0.167 0.167 0.167 0.167
------ ------ ------ ------ ------ ------ ------ ------
Tax Exempt Income......... 11/24/2003 0.033 0.027 0.027 0.037 0.027 0.034 0.027 0.027
Tax Exempt Income......... 12/23/2003 0.037 0.031 0.031 0.039 0.031 0.037 0.031 0.031
Tax Exempt Income......... 1/27/2004 0.037 0.030 0.030 0.039 0.030 0.037 0.030 0.030
Tax Exempt Income......... 2/24/2004 0.037 0.031 0.031 0.039 0.031 0.037 0.031 0.031
Tax Exempt Income......... 3/26/2004 0.037 0.031 0.031 0.040 0.030 0.037 0.030 0.030
Tax Exempt Income......... 4/27/2004 0.037 0.030 0.030 0.039 0.030 0.037 0.030 0.030
Tax Exempt Income......... 5/25/2004 0.037 0.031 0.031 0.039 0.031 0.037 0.031 0.031
Tax Exempt Income......... 6/25/2004 0.037 0.031 0.031 0.039 0.031 0.037 0.031 0.031
Tax Exempt Income......... 7/27/2004 0.038 0.031 0.031 0.040 0.031 0.038 0.031 0.031
Tax Exempt Income......... 8/26/2004 0.039 0.032 0.032 0.041 0.032 0.039 0.032 0.032
Tax Exempt Income......... 9/27/2004 0.038 0.031 0.031 0.039 0.032 0.038 0.032 0.032
Tax Exempt Income......... 10/28/2004 0.038 0.031 0.031 0.040 0.031 0.038 0.031 0.031
------ ------ ------ ------ ------ ------ ------ ------
Total Income
Distributions........... 0.445 0.367 0.367 0.471 0.367 0.446 0.367 0.367
------ ------ ------ ------ ------ ------ ------ ------
<Caption>
FUND CLASS Y CLASS Z
---- ------- -------
TAX-FREE CALIFORNIA FUND
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Total Income
Distributions...........
TAX-FREE MINNESOTA FUND
Short-Term Capital Gain... 0.003
Long-Term Capital Gain.... 0.097
Long-Term Capital Gain.... 0.170
------
Total Capital Gain
Distributions........... 0.270
------
Tax Exempt Income......... 0.035
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.035
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.037
Tax Exempt Income......... 0.036
Tax Exempt Income......... 0.035
Tax Exempt Income......... 0.034
------
Total Income
Distributions........... 0.428
------
TAX-FREE NATIONAL FUND
Short-Term Capital Gain... 0.033
Short-Term Capital Gain... 0.004
Long-Term Capital Gain.... 0.075
Long-Term Capital Gain.... 0.055
------
Total Capital Gain
Distributions........... 0.167
------
Tax Exempt Income......... 0.037
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.039
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.040
Tax Exempt Income......... 0.041
Tax Exempt Income......... 0.042
Tax Exempt Income......... 0.043
------
Total Income
Distributions........... 0.482
------
</Table>
269
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (CONTINUED)(UNAUDITED)
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N
---- ---------- ------- ------- ------- ------- ------- ------- ------- -------
TAX-FREE NEW YORK FUND
Short-Term Capital Gain... 11/10/2003 0.080 0.080 0.080
------ ------ ------
Tax Exempt Income......... 11/24/2003 0.041 0.035 0.035
Tax Exempt Income......... 12/23/2003 0.039 0.033 0.033
Tax Exempt Income......... 1/27/2004 0.035 0.028 0.028
Tax Exempt Income......... 2/24/2004 0.031 0.025 0.025
Tax Exempt Income......... 3/26/2004 0.031 0.025 0.025
Tax Exempt Income......... 4/27/2004 0.031 0.025 0.025
Tax Exempt Income......... 5/25/2004 0.031 0.025 0.025
Tax Exempt Income......... 6/25/2004 0.031 0.025 0.025
Tax Exempt Income......... 7/27/2004 0.031 0.025 0.025
Tax Exempt Income......... 8/26/2004 0.031 0.025 0.025
Tax Exempt Income......... 9/27/2004 0.031 0.025 0.025
Tax Exempt Income......... 10/28/2004 0.030 0.024 0.024
------ ------ ------
Total Income
Distributions........... 0.393 0.320 0.320
------ ------ ------
TOTAL RETURN BOND FUND
Short-Term Capital Gain... 11/10/2003 0.346 0.346 0.346
Long-Term Capital Gain.... 11/10/2003 0.027 0.027 0.027
------ ------ ------
Total Capital Gain
Distributions........... 0.373 0.373 0.373
------ ------ ------
Income.................... 11/24/2003 0.034 0.028 0.028
Income.................... 12/23/2003 0.035 0.028 0.028
Income.................... 1/27/2004 0.035 0.028 0.028
Income.................... 2/24/2004 0.033 0.027 0.027
Income.................... 3/26/2004 0.032 0.025 0.025
Income.................... 4/27/2004 0.033 0.027 0.027
Income.................... 5/25/2004 0.031 0.025 0.025
Income.................... 6/25/2004 0.033 0.027 0.027
Income.................... 7/27/2004 0.025 0.018 0.018
Income.................... 8/26/2004 0.025 0.018 0.018
Income.................... 9/27/2004 0.022 0.016 0.016
Income.................... 10/28/2004 0.016 0.010 0.012
------ ------ ------
Total Income
Distributions........... 0.354 0.277 0.279
------ ------ ------
U.S. GOVERNMENT SECURITIES
FUND
Income.................... 11/24/2003 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029
Income.................... 12/23/2003 0.032 0.026 0.026 0.035 0.027 0.033 0.027 0.027
Income.................... 1/27/2004 0.032 0.026 0.026 0.035 0.027 0.033 0.027 0.027
Income.................... 2/24/2004 0.034 0.029 0.029 0.037 0.029 0.035 0.029 0.029
Income.................... 3/26/2004 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029
Income.................... 4/27/2004 0.034 0.029 0.029 0.037 0.029 0.035 0.028 0.029
Income.................... 5/25/2004 0.035 0.029 0.029 0.038 0.030 0.036 0.030 0.030
Income.................... 6/25/2004 0.034 0.029 0.029 0.037 0.030 0.035 0.030 0.030
Income.................... 7/27/2004 0.035 0.029 0.029 0.038 0.030 0.036 0.030 0.030
Income.................... 8/26/2004 0.035 0.029 0.029 0.038 0.030 0.036 0.030 0.030
Income.................... 9/27/2004 0.034 0.029 0.029 0.038 0.030 0.036 0.030 0.030
Income.................... 10/28/2004 0.033 0.027 0.027 0.037 0.029 0.035 0.029 0.029
------ ------ ------ ------ ------ ------ ------ ------
Total Income
Distributions........... 0.406 0.338 0.338 0.444 0.348 0.420 0.348 0.348
------ ------ ------ ------ ------ ------ ------ ------
VALUE FUND
Income.................... 12/23/2003 0.072 0.017 0.017
------ ------ ------
<Caption>
FUND CLASS Y CLASS Z
---- ------- -------
TAX-FREE NEW YORK FUND
Short-Term Capital Gain...
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Tax Exempt Income.........
Total Income
Distributions...........
TOTAL RETURN BOND FUND
Short-Term Capital Gain... 0.346
Long-Term Capital Gain.... 0.027
------
Total Capital Gain
Distributions........... 0.373
------
Income.................... 0.039
Income.................... 0.039
Income.................... 0.039
Income.................... 0.037
Income.................... 0.036
Income.................... 0.037
Income.................... 0.036
Income.................... 0.037
Income.................... 0.029
Income.................... 0.029
Income.................... 0.026
Income.................... 0.021
------
Total Income
Distributions........... 0.405
------
U.S. GOVERNMENT SECURITIES
FUND
Income.................... 0.037
Income.................... 0.035
Income.................... 0.035
Income.................... 0.037
Income.................... 0.037
Income.................... 0.038
Income.................... 0.038
Income.................... 0.038
Income.................... 0.037
Income.................... 0.038
Income.................... 0.038
Income.................... 0.036
------
Total Income
Distributions........... 0.444
------
VALUE FUND
Income.................... 0.109
------
</Table>
270
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.
271
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 Group Insurance Company; HL Investment Advisors; 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.
272
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273
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274
ITEM 2. CODE OF ETHICS.
Registrant has adopted a code of ethics that applies to Registrant's
principal executive officer, principal financial officer, and controller, which
is attached as an exhibit.
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.
(a) Audit Fees: $386,894.00 for the fiscal year ended October 31, 2003;
$448,985.00 for the fiscal year ended October 31, 2004.
(b) Audit Related Fees: $28,400.00 for the fiscal year ended October 31,
2003; $30,770.00 for the fiscal year ended October 31, 2004.
(c) Tax Fees: $69,088.00 for the fiscal year ended October 31, 2003;
$81,641.00 for the fiscal year ended October 31, 2004.
(d) All Other Fees: $0 for the fiscal years ended October 31, 2003 and
October 31, 2004.
(e)(1) A copy of the Audit Committee's pre-approval policies and
procedures is attached as an exhibit.
(e)(2) One hundred percent of the services described in items 4(a) through
4(d) were approved in accordance with the Audit Committee's
Pre-Approval Policy. As a result, none of such services was approved
pursuant to paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation
S-X.
(f) None of the hours expended on the principal accountant's engagement
to audit the Registrant's financial statements for the year ended
October 31, 204 were attributed to work performed by persons other
than the principal accountant's full-time permanent employees.
(g) Non-Audit Fees: $97,488.00 for fiscal year ended October 31, 2003;
$112,411.00 for fiscal year ended October 31, 2004.
(h) N/A
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
The Schedule of Investments is included as part of the annual report filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Nominating Committee of the Board of Directors of the Fund has adopted the
following policy.
The Nominating Committee of the Board of Directors will consider nominees
for non-interested director recommended by shareholders if a vacancy among the
non-interested directors occurs and if the nominee meets the Committee's
criteria. Shareholders wishing to submit recommendations for nominees must send
a letter to the chairperson of the Nominating Committee, in care of the
Secretary of the applicable Company at 200 Hopmeadow Street, Simsbury, CT 06089,
and must include, at a minimum: (i) the shareholder's contact information; (ii)
the nominee's contact information, the nominee's resume or curriculum vitae, and
the number of applicable Fund shares owned by the proposed nominee; (iii) a
statement as to whether the nominee is an "interested person" of the applicable
Fund as defined in Section 2(a)(19) of the 1940 Act, and appropriate
documentation to support the statement; (iv) all information regarding the
nominee that would be required to be disclosed in solicitations of proxies for
elections of directors required by Regulation 14A of the Securities Exchange Act
of 1934; and (v) a notarized letter executed by the nominee, stating his or her
intention to serve as a nominee and be named in the applicable Fund's proxy
statement, if so designated by the Nominating Committee and the Fund's Board of
Directors. A shareholder nominee recommendation must be received by the
Nominating Committee within a reasonable time
period prior to the proxy submission. A shareholder or shareholder group may not
submit for consideration a nominee whom the Nominating Committee has previously
considered. Candidates submitted by shareholders are evaluated according to the
same criteria as other non-interested director candidates.
Care is given to insure that the individual members of the Board bring to
their deliberations education, work and personal experiences that would improve
the value provided to the shareholders. The following criteria for nominees
should be considered as a minimum requirement for consideration as a
non-interested director:
- - Fifteen (15) years business or academic experience in a management,
administrative, or other oversight capacity;
- - College degree or business experience equivalent to a college degree;
- - At least one non-interested director should have an investment background and
at least one director should have a financial/accounting background;
- - Personal accomplishments that would provide ready acceptance by shareholders
that the individual was capable of representing their interests;
- - An ability to invest in Hartford funds;
- - A person able to think through and discuss complicated regulatory and
financial issues and arrive at reasonable decisions on these issues on behalf
of the shareholders;
- - A person of high ethical standards;
- - Must meet minimum standards set out in the Fund's audit committee charter;
and
- - Must be "financially literate" as that term is defined under New York Stock
Exchange rules. For these purposes, this means the ability to read and
understand fundamental financial statements, including a company's balance
sheet, income statement, and cash flow statement. Directors who have limited
familiarity with finance can achieve such "literacy" through Fund-sponsored
training programs.
ITEM 11. 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 was no change in the Registrant's internal control over
financial reporting that occurred during the Registrant's last
fiscal half year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
12(a)(1) Code of Ethics
(a)(2) Section 302 certifications of the principal executive officer and
principal financial officer of Registrant.
(b) Section 906 certification.
(c) Audit Committee Pre-Approval Policies and Procedures
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.
Date: December 14, 2004 Bys:/s/ David M. Znamierowski
------------------------
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.
Date: December 14, 2004 By: /s/ David M. Znamierowski
------------------------
David M. Znamierowski
Its: President
Date: December 14, 2004 By: /s/ Tamara L. Fagely
--------------------
Tamara L. Fagely
Its: Vice President, Controller and Treasurer
EXHIBIT LIST
12(a)(1) Code of Ethics
99.CERT 12(a)(2) Certifications
(i)Section 302 certification of principal executive
officer
(ii)Section 302 certification of principal financial
officer
99.906CERT 12(b) Section 906 certification of principal executive
officer and principal financial officer
12(c) Audit Committee Pre-Approval Policies and Procedures