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)
Edward P. Macdonald, 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) 843-9934
Date of fiscal year end: October 31, 2006
Date of reporting period: November 1, 2005 - October 31, 2006
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.
<Table>
Annual Report
October 31, 2006 (STAG PHOTO)
</Table>
- Manager Discussions
- Financials
Please note that the responses to the
questions: How did the Fund perform?,
Why did the Fund perform this way? and
What is your outlook? represent the
views of the portfolio manager(s) of the
applicable fund.
(THE HARTFORD LOGO)
THE HARTFORD MUTUAL FUNDS, INC.
THE HARTFORD MUTUAL FUNDS II, INC.
TABLE OF CONTENTS
Manager Discussions (Unaudited) 1
The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.
Financial Statements
Schedule of Investments at October 31, 2006:
The Hartford Advisers Fund 105
The Hartford Aggressive Growth Allocation Fund 110
The Hartford Balanced Allocation Fund 111
The Hartford Balanced Income Fund 112
The Hartford Capital Appreciation Fund 119
The Hartford Capital Appreciation II Fund 122
The Hartford Conservative Allocation Fund 126
The Hartford Disciplined Equity Fund 127
The Hartford Dividend and Growth Fund 129
The Hartford Equity Income Fund 131
The Hartford Floating Rate Fund 133
The Hartford Focus Fund 144
The Hartford Global Communications Fund 146
The Hartford Global Financial Services Fund 148
The Hartford Global Health Fund 150
The Hartford Global Leaders Fund 152
The Hartford Global Technology Fund 154
The Hartford Growth Allocation Fund 156
The Hartford Growth Fund 157
The Hartford Growth Opportunities Fund 159
The Hartford High Yield Fund 161
The Hartford Income Allocation Fund 167
The Hartford Income Fund 168
The Hartford Inflation Plus Fund 179
The Hartford International Capital Appreciation Fund 182
The Hartford International Opportunities Fund 185
The Hartford International Small Company Fund 188
The Hartford MidCap Fund 191
The Hartford MidCap Growth Fund 193
The Hartford MidCap Value Fund 195
The Hartford Money Market Fund 197
The Hartford Retirement Income Fund 199
The Hartford Select MidCap Growth Fund 200
The Hartford Select MidCap Value Fund 202
The Hartford Select SmallCap Growth Fund 204
The Hartford Select SmallCap Value Fund 207
The Hartford Short Duration Fund 213
The Hartford Small Company Fund 218
The Hartford SmallCap Growth Fund 221
The Hartford Stock Fund 224
The Hartford Target Retirement 2010 Fund 226
The Hartford Target Retirement 2020 Fund 227
The Hartford Target Retirement 2030 Fund 228
The Hartford Tax-Free California Fund 229
The Hartford Tax-Free Minnesota Fund 232
The Hartford Tax-Free National Fund 234
The Hartford Tax-Free New York Fund 239
The Hartford Total Return Bond Fund 241
The Hartford U.S. Government Securities Fund 250
The Hartford Value Fund 252
The Hartford Value Opportunities Fund 254
Statements of Assets and Liabilities at October 31, 2006 256
Statements of Operations for the Year Ended October 31, 2006 268
Statements of Changes in Net Assets for the Years Ended
October 31, 2006 and 2005 278
Statement of Cash Flows of The Hartford Total Return Bond
Fund for the Year Ended October 31, 2006 296
Notes to Financial Statements 297
Financial Highlights 335
Report of Independent Registered Public Accounting Firm 368
Directors and Officers (Unaudited) 369
How to Obtain a Copy of the Funds' Proxy Voting Policies and
Proxy Voting Records 370
Federal Tax Information Notice (Unaudited) 371
Expense Example (Unaudited) 375
Shareholder Meeting Results (Unaudited) 381
Approval of Investment Management and Investment Sub-Advisory
Agreements (Unaudited) 382
Privacy Policy 397
The Hartford Advisers Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS MAXIMUM LONG-TERM
TOTAL RETURN.
PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06
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
------------- ------------- ----------------------
10/31/96 9450 10000 10000
9994 10755 10184
9780 10542 10071
10133 11200 10083
10177 11288 10104
9930 10825 9984
10318 11471 10130
10751 12169 10224
11161 12714 10347
11828 13725 10664
11276 12957 10544
11750 13666 10710
10/97 11580 13210 10881
11955 13821 10939
12059 14058 11053
12176 14213 11209
12707 15238 11186
13151 16018 11221
13341 16179 11277
13215 15901 11398
13737 16546 11514
13827 16371 11523
12677 14004 11749
13196 14901 12085
10/98 13697 16112 11999
14153 17088 12071
14602 18072 12100
14900 18827 12186
14574 18242 11897
15022 18972 11956
15470 19707 11985
15115 19242 11862
15710 20308 11825
15428 19675 11792
15269 19577 11783
15066 19041 11889
10/99 15556 20245 11920
15725 20657 11913
16366 21873 11840
15837 20774 11837
15914 20381 11986
16989 22373 12159
16661 21701 12099
16410 21255 12089
16695 21779 12335
16548 21439 12466
17184 22770 12642
16729 21568 12690
10/00 16778 21477 12770
16270 19785 12988
16514 19882 13244
16801 20587 13466
16145 18711 13605
15510 17526 13668
16130 18886 13565
16243 19013 13644
15833 18551 13709
15843 18368 14051
15273 17219 14230
14676 15829 14361
10/01 14988 16132 14726
15593 17369 14485
15653 17522 14370
15444 17266 14475
15350 16933 14598
15605 17570 14302
14797 16505 14579
14713 16384 14714
14099 15218 14839
13656 14032 15017
13677 14123 15353
12812 12590 15683
10/02 13427 13696 15533
14031 14501 15542
13585 13650 15954
13340 13294 15953
13255 13095 16237
13278 13222 16216
13940 14310 16389
14506 15063 16855
14619 15256 16788
14672 15525 16084
14822 15827 16190
14771 15659 16703
10/03 15255 16544 16491
15362 16690 16535
16009 17564 16698
16095 17887 16849
16225 18135 17055
16062 17862 17212
15770 17582 16684
15889 17822 16598
16158 18169 16666
15757 17567 16843
15877 17638 17199
15843 17829 17259
10/04 15854 18101 17409
16148 18834 17215
16558 19474 17398
16372 19000 17519
16591 19399 17403
16232 19056 17281
16177 18695 17540
16607 19289 17760
16612 19317 17876
17065 20035 17675
17154 19852 17939
17223 20013 17704
10/05 17012 19679 17552
17522 20422 17642
17675 20430 17810
18009 20971 17777
17976 21027 17826
18044 21289 17630
18200 21575 17574
17831 20955 17565
17656 20982 17605
17712 21112 17834
18128 21613 18116
18448 22170 18294
10/06 18911 22892 18409
</Table>
<Table>
--- ADVISERS FUND -- LEHMAN BROTHERS GOVERNMENT/ --- S&P 500 INDEX
$9,450 starting value CREDIT BOND INDEX $10,000 starting value
$18,911 ending value $10,000 starting value $22,892 ending value
$18,409 ending value
</Table>
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.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -----------------------------------------------------------------
Advisers A# 7/22/1996 11.16% 4.76% 7.18% 7.76%
- -----------------------------------------------------------------
Advisers A## 7/22/1996 5.05% 3.58% 6.58% 7.17%
- -----------------------------------------------------------------
Advisers B# 7/22/1996 10.25% 3.98% NA* NA*
- -----------------------------------------------------------------
Advisers B## 7/22/1996 5.25% 3.64% NA* NA*
- -----------------------------------------------------------------
Advisers C# 7/22/1996 10.32% 4.07% 6.46% 7.04%
- -----------------------------------------------------------------
Advisers C## 7/22/1996 9.32% 4.07% 6.46% 7.04%
- -----------------------------------------------------------------
Advisers Y# 7/22/1996 11.63% 5.24% 7.69% 8.27%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* 10 year and 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 shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
STEVEN T. IRONS, CFA
Senior Vice President, Partner
JOHN C. KEOGH
Senior Vice President, Partner
PETER I. HIGGINS, CFA
Vice-President
CHRISTOPHER L. GOOTKIND
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Advisers Fund returned 11.16%, before sales
charges, for the twelve-month period ended October 31, 2006, versus the returns
of 4.88% for the Lehman Brothers Government Credit Bond Index and 16.33% for the
S&P 500 Index. The Fund also underperformed the 12.47% return of the average
fund in the Lipper Mixed-Asset Target Allocation Growth Funds peer group, a
group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Financial markets have been strong for the past twelve month period. Equity
markets as measured by the S&P 500 were up 16.33% while the bond market as
measured by the Lehman Brothers Government/Credit Index increased 4.88%. The
Fund has three primary levers to generate investment performance: equity
investments, fixed income investments, and asset allocation among stocks, bonds,
and cash. During the past year both the equity portion and the fixed income
portion of the Fund underperformed their respective benchmarks. Allocation
contributed positively to the Fund's performance as the Fund's consistent
overweight to equities helped during the period.
The Equity portion of the Fund underperformed slightly due to negative stock
selection within the Consumer Discretionary, Health Care and Materials sectors.
This was offset somewhat by strong stock selection within Information Technology
and Financials. Sector allocation within equities did not play an active role in
the Fund's equity performance.
Stocks that detracted the most from relative returns included XM Satellite,
Boston Scientific, Marvell Technology and Dollar General. Media company XM
Satellite continues to come under pressure. Decelerating customer addition
trends and regulatory review of product compliance have caused investors to
question the market opportunity. The portfolio continues to hold the stock based
on positive long-term trends in satellite radio due to original equipment
manufacturer (OEM) adoption. Boston Scientific has had a tough year suffering
from erosion of its Implantable Cardioverter Defibrillator (ICD) market share,
concerns surrounding its drug eluding stent business, and continued issues with
cardiac product recalls after its recently acquired
1
- --------------------------------------------------------------------------------
Guidant business. We retain our position because the fundamentals of the company
remain sound and the stock is attractively priced. Chip maker Marvell declined
on disruption in the hard disk drive market and worries over stock option
grants. Discount retailer Dollar General disappointed due to high gasoline
prices hitting Dollar General customers and thus impacting the company's top
line. Additionally, Dollar General has been selling more lower-margin "highly
consumables" than anticipated. These are products like perishable foods and
cleaning supplies which are used up quickly by consumers and need to be replaced
frequently, but carry thin margins.
Stock selection contributed the most within the Information Technology and
Financials sectors. Top relative contributors to the Fund included AT&T, UBS,
Lexmark and Munich Re. AT&T is benefiting from the stabilization of its long
distance pricing. Also, cost-cutting from its acquisitions are going well. UBS,
the Swiss-based financial institution, posted outstanding results due primarily
to its successful wealth management business. The firm has a superior business
mix that leads to less volatility and should continue to be rewarded with higher
multiples than the average broker. Shares in Lexmark, a manufacturer and
supplier of printing and imaging solutions, rose as the company recovered from
its product and distribution missteps last year. German reinsurance company
Munich Re reported better-than-expected results due to higher profits from
investments and fewer claims due to low levels of natural catastrophes. The
company continues to generate good return on capital and improving capital
management.
While absolute performance was strong in the fixed income portfolio, relative
returns slightly lagged the benchmark. The bonds underperformed their benchmark
during the year due mainly to starting the year with a longer duration. This was
offset somewhat by our overweight allocations to structured sectors such as
asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS).
We believe an economic growth slowdown is apparent, but a hard landing is
unlikely. We continue to overweight the non-government sectors with a preference
towards structured securities and MBS. While credit trends remain sound,
idiosyncratic risks such as leveraged buy-outs and management buy-outs, which
favor equity holders over bondholders, are increasing. Some of the private
equity pools have grown to sizes that make many large corporations at risk of
some kind of takeover.
WHAT IS THE OUTLOOK?
The stock portion of The Hartford Advisers Fund is managed with a large cap,
core investment approach. We apply a bottom-up investment process in
constructing a diversified portfolio. We look for companies that exhibit some or
all of the following characteristics: industry leadership, strong balance
sheets, solid management teams, high return on equity, accelerating earnings,
and/or attractive valuation with a catalyst. At the end of the period, the
equity portion of the Fund was overweight positions in Information Technology
and Health Care and underweight positions in Energy and Financials.
As the Federal Reserve is near the end of its tightening cycle, we have
positioned the fixed income portion accordingly. The equity and fixed income
managers will continue to work collaboratively to make decisions regarding
portfolio weights in stocks, bonds, and cash. As of October 31, 2006, the Fund's
equity exposure was at 68% compared to 60% in its benchmark and at the upper end
of the 50-70% range, as we expect equities to outperform bonds and cash.
COMPOSITION BY SECTOR
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
SECTOR NET ASSETS
- -------------------------------------------------------------------
Common Stock 67.9%
- -------------------------------------------------------------------
Asset Backed and Commercial Mortgage Securities 5.2
- -------------------------------------------------------------------
Corporate Bonds: Investment Grade 11.3
- -------------------------------------------------------------------
Municipal Bonds 0.2
- -------------------------------------------------------------------
U.S. Government Securities 9.9
- -------------------------------------------------------------------
U.S. Government Agencies 3.0
- -------------------------------------------------------------------
Short-Term Investments 15.9
- -------------------------------------------------------------------
Other Assets & Liabilities -13.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 4.2%
- -------------------------------------------------------------------
Capital Goods 2.9
- -------------------------------------------------------------------
Consumer Cyclical 6.1
- -------------------------------------------------------------------
Consumer Staples 5.3
- -------------------------------------------------------------------
Energy 3.6
- -------------------------------------------------------------------
Finance 25.2
- -------------------------------------------------------------------
General Obligations 0.2
- -------------------------------------------------------------------
Health Care 8.8
- -------------------------------------------------------------------
Services 7.5
- -------------------------------------------------------------------
Technology 20.2
- -------------------------------------------------------------------
U.S. Government Agencies 3.0
- -------------------------------------------------------------------
U.S. Government Securities 9.9
- -------------------------------------------------------------------
Utilities 0.6
- -------------------------------------------------------------------
Short-Term Investments 15.9
- -------------------------------------------------------------------
Other Assets & Liabilities -13.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
2
The Hartford Aggressive Growth Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06
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
9450 10000
9705 10194
7/04 9318 9857
9280 9897
9592 10004
10/04 9809 10157
10291 10567
10669 10927
1/05 10357 10661
10565 10885
10328 10692
4/05 10073 10490
10442 10823
10612 10838
7/05 11029 11241
11038 11139
11162 11229
10/05 10849 11042
11329 11459
11536 11463
1/06 12127 11766
12041 11798
12280 11945
4/06 12538 12105
11984 11757
11918 11773
7/06 11755 11846
12013 12127
12185 12439
10/06 12605 12844
</Table>
<Table>
--- AGGRESSIVE GROWTH ALLOCATION FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$12,605 ending value $12,844 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ---------------------------------------------------------------------
Aggressive Growth Allocation A# 5/28/2004 16.18% 12.60%
- ---------------------------------------------------------------------
Aggressive Growth Allocation A## 5/28/2004 9.79% 10.00%
- ---------------------------------------------------------------------
Aggressive Growth Allocation B# 5/28/2004 15.43% 11.86%
- ---------------------------------------------------------------------
Aggressive Growth Allocation B## 5/28/2004 10.43% 10.80%
- ---------------------------------------------------------------------
Aggressive Growth Allocation C# 5/28/2004 15.43% 11.86%
- ---------------------------------------------------------------------
Aggressive Growth Allocation C## 5/28/2004 14.43% 11.86%
- ---------------------------------------------------------------------
Aggressive Growth Allocation I# 5/28/2004 16.27% 12.63%
- ---------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and I shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Aggressive Growth Allocation Fund (Class A) gained 16.18%, before
sales charges, for the year ended October, 2006, trailing its S&P 500 benchmark,
which returned 16.33%. The Fund outpaced the 14.50% return of the Lipper
Multi-Cap Core Funds peer group, a group of funds with investment strategies
similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening that began in the summer of 2004. By June of
2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17
consecutive times, leaving the Fed Funds Rate at 5.25%. However, by August of
2006, the Fed became concerned that economic growth was slowing, in part due to
the retreating housing market. As such, the Fed found itself in a conundrum as
to whether it should continue raising interest rates to restrain inflation, or
to pause in the tightening cycle to assess prospects for further economic
growth. Since changes in the rate of inflation often lag changes in economic
conditions, the Fed left rates unchanged at its two most recent meetings while
it waited for more data before taking action. Sensing that the Fed would
continue easing monetary policy, the equity markets rallied in the last months
of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by favorable currency movements and strengthening foreign economies, the
international and emerging market equity indices outperformed the major domestic
indices for the year.
The Fund is constructed such that it has exposure to the various styles of
equities, including international, mid-cap and small cap stocks. This
diversification is expected to enhance the long-term return and risk
characteristics of the Fund. Thus, as the Dow Jones Industrial Average reached
its all-time high, the Fund achieved a positive return from its participation in
the stock market rally. However, since domestic, large cap stocks dominated the
stock rally late in the period, the Fund's exposure to foreign and smaller
capitalization equities partially offset some of their contributions from
earlier in the year. Due to the recent strength of the value style, the
allocation to value equities was positive contributors to relative performance,
whereas the growth style was a lesser contributor. The Fund typically uses cash
flows to implement
3
- --------------------------------------------------------------------------------
investment allocation changes to the Fund, when appropriate. However, a hard
asset rebalance (i.e. a fund rebalancing to move the underlying fund investments
to their target allocation percentages) was performed in February due to the
strong performance by certain investment sectors.
WHAT IS THE OUTLOOK?
The recent decline in interest rates suggests an environment of economic
weakness that is not consistent with our view of the economy. Falling interest
rates and gasoline prices, coupled with a decent employment picture and gains in
the stock market, should be supportive of continued consumer spending. While
housing remains a wild card for the U.S. economy, our view is that the Fed is
still concerned with inflation and that policy decisions will favor price
stability as long as economic growth does not decline dramatically. In the
coming months we will be closely watching the economy to determine the impact of
a slower housing market on the average U.S. consumer and what implications that
has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 13.2%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 15.1
- -------------------------------------------------------------------
Hartford Dividend and Growth Fund, Class Y 1.8
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 0.4
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 5.8
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 6.6
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 3.6
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 4.2
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 2.1
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 7.3
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 1.6
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 1.3
- -------------------------------------------------------------------
Hartford Select SmallCap Value Fund, Class Y 0.7
- -------------------------------------------------------------------
Hartford Select SmallCap Growth Fund, Class Y 0.4
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 7.6
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 9.6
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 9.8
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 7.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
4
The Hartford Balanced Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL
APPRECIATION AND INCOME.
PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06
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
9450 10000 10000
9582 10194 10057
7/04 9393 9857 10156
9412 9897 10350
9606 10004 10378
10/04 9748 10157 10465
10022 10567 10382
10291 10927 10477
1/05 10101 10661 10543
10215 10885 10481
10051 10692 10427
4/05 9937 10490 10568
10194 10823 10682
10313 10838 10741
7/05 10542 11241 10643
10609 11139 10779
10677 11229 10668
10/05 10476 11042 10584
10784 11459 10631
10941 11463 10732
1/06 11299 11766 10732
11260 11798 10768
11366 11945 10662
4/06 11531 12105 10643
11240 11757 10631
11192 11773 10654
7/06 11144 11846 10798
11348 12127 10963
11467 12439 11060
10/06 11731 12844 11133
</Table>
<Table>
--- BALANCED ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
$9,450 starting value BOND INDEX $10,000 starting value
$11,731 ending value $10,000 starting value $12,844 ending value
$11,133 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ------------------------------------------------------------
Balanced Allocation A# 5/28/2004 11.98% 9.31%
- ------------------------------------------------------------
Balanced Allocation A## 5/28/2004 5.82% 6.80%
- ------------------------------------------------------------
Balanced Allocation B# 5/28/2004 11.22% 8.53%
- ------------------------------------------------------------
Balanced Allocation B## 5/28/2004 6.22% 7.42%
- ------------------------------------------------------------
Balanced Allocation C# 5/28/2004 11.24% 8.53%
- ------------------------------------------------------------
Balanced Allocation C## 5/28/2004 10.24% 8.53%
- ------------------------------------------------------------
Balanced Allocation I# 5/28/2004 11.95% 9.30%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and I shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Balanced Allocation Fund (Class A) gained 11.98%, before sales
charges, for the year ended October 31, 2006, versus the returns of 11.45% for
the Lipper Mixed-Asset Target Allocation Moderate Funds peer group, 5.19% for
the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening that began in the summer of 2004. By June of
2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17
consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's
tightening, short- and intermediate-term bond yields rose through the first half
of 2006. Thus, as interest rates rose, the principal value of these short- and
intermediate-term bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted (i.e. bonds with longer term maturities
having a lower interest rate than bonds with shorter maturities) through most of
the fiscal year. However, by August of 2006, the Fed became concerned that
economic growth was slowing, in part due to the retreating housing market. As
such, the Fed found itself in a conundrum as to whether it should continue
raising interest rates to restrain inflation, or to pause in the tightening
cycle to assess prospects for further economic growth. Since changes in the rate
of inflation often lag changes in economic conditions, the Fed left rates
unchanged at its two most recent meetings while it waited for more data before
taking action. Sensing that the Fed would continue easing monetary policy, the
bond and equity markets rallied in the last months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by favorable currency movements and strengthening foreign economies, the
international and emerging market equity indices outperformed the major domestic
indices for the year. Fortunately,
5
- --------------------------------------------------------------------------------
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out longer on
the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many
bond investors shifted to lower quality and foreign issues as they sought
greater yield. During the period, the traditionally "riskier" high yield and
emerging markets bonds were among the strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. Although, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period, the Fund benefited from the out-of-index exposure to "spread" sectors
and higher yielding securities. With the Dow Jones Industrial reaching its all-
time high late in the period, the Fund also generated positive gains from its
allocation to equities. The Fund is constructed such that it has exposure to the
various styles of equities, including international, mid-cap and small cap
stocks. This diversification is expected to enhance the long-term return and
risk characteristics of the Fund. The added diversification benefited the Fund
through most of the year. However, since domestic, large cap stocks dominated
the stock rally late in the period, the Fund's exposure to foreign and smaller
capitalization equities partially offset some of their earlier contributions.
The Fund typically uses cash flows to implement investment allocation changes to
the Fund, when appropriate. However, a hard asset rebalance (i.e. a fund
rebalancing to move the underlying fund investments to their target allocation
percentages) was performed in February due to the strong performance by certain
investment sectors. While there are trading costs that occur when a hard
rebalance is instituted, these expenses had a negligible impact upon
performance.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Federal Reserve is still concerned with inflation
and that policy decisions will favor price stability as long as economic growth
does not decline dramatically. In the coming months, we will be closely watching
the economy to determine the impact of a slower housing market on the average
U.S. consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 10.8%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 5.8
- -------------------------------------------------------------------
Hartford Dividend and Growth Fund, Class Y 2.7
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 0.3
- -------------------------------------------------------------------
Hartford Floating Rate Fund, Class Y 5.2
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 5.1
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 1.6
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 3.3
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 1.8
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 6.3
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 9.2
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 4.2
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 1.4
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 1.6
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 1.2
- -------------------------------------------------------------------
Hartford Select SmallCap Growth Fund, Class Y 0.3
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 6.0
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 5.3
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford Stock Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 10.1
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 2.8
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 5.1
- -------------------------------------------------------------------
Other Assets & Liabilities 0.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
6
The Hartford Balanced Income Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS TO PROVIDE CURRENT
INCOME WITH GROWTH OF CAPITAL AS A SECONDARY OBJECTIVE.
PERFORMANCE OVERVIEW(2) 7/31/06 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS CORPORATE
BALANCED INCOME FUND RUSSELL 1000 VALUE INDEX INDEX
-------------------- ------------------------ -------------------------
7/31/06 9450 10000 10000
8/06 9620 10167 10186
9/06 9731 10370 10303
10/06 9902 10709 10386
</Table>
<Table>
--- BALANCED INCOME FUND --- RUSSELL 1000 VALUE INDEX -- LEHMAN BROTHERS CORPORATE
$9,450 starting value $10,000 starting value INDEX
$9,902 ending value $10,709 ending value $10,000 starting value
$10,386 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.
LEHMAN BROTHERS CORPORATE INDEX Lehman Brothers Corporate Bond Index is an
unmanaged index and is the Corporate component of the U.S. Credit Index within
the Lehman Brothers U.S. Aggregate Bond Index.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION DATE SINCE INCEPTION
- ----------------------------------------------------------
Balanced Income A# 7/31/2006 4.78%
- ----------------------------------------------------------
Balanced Income A## 7/31/2006 -0.98%
- ----------------------------------------------------------
Balanced Income B# 7/31/2006 4.54%
- ----------------------------------------------------------
Balanced Income B## 7/31/2006 -0.46%
- ----------------------------------------------------------
Balanced Income C# 7/31/2006 4.56%
- ----------------------------------------------------------
Balanced Income C## 7/31/2006 3.56%
- ----------------------------------------------------------
Balanced Income Y# 7/31/2006 4.83%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
LUCIUS T. HILL, III
Senior Vice President
SCOTT I. ST. JOHN, CFA
Vice President
JOHN R. RYAN
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Balanced Income Fund commenced operations on July 31, 2006, and
therefore has a performance track record for only 3 months of the reporting
period ended October 31, 2006. During that time the Class A shares of The
Hartford Balanced Income Fund returned 4.78 %, before sales charges, for the
three-month period ended October 31, 2006, versus the returns of 5.22% for the
Lipper Mixed-Asset Target Allocation Moderate Funds peer group, 7.09% for the
Russell 1000 Value Index and 3.86% for the Lehman Brothers Corporate index.
WHY DID THE FUND PERFORM THIS WAY?
Financial markets posted strong returns for the three month period since
inception of the Fund as fears of excessive inflation and impending recession
were tempered by the sharp drop in energy prices. The US stock market as
measured by the S&P 500 Index was up 8.4% while the US bond market as measured
by the Lehman Brothers U.S. Aggregate Bond Index was up 3.1%. Growth stocks
bested value stocks during the period and small caps beat both large and mid-cap
stocks. Nine of the ten economic sectors of the Russell 1000 Value Index posted
positive returns. The Russell 1000 Value Index was led by Information Technology
and Consumer Discretionary stocks, while the Energy sector was slightly negative
on an absolute basis or total performance return basis.
The Equity portion of the Fund underperformed its benchmark slightly due
primarily to weak stock selection in Financials and its underweight in Consumer
Discretionary stocks. The performance of the fixed income portion of the Fund
was in line with its benchmark. Asset allocation did not play a major role in
the Fund's performance.
Within the equity portion of the Fund, stock selection was weakest in the
Financials and Health Care sectors and strongest within the Telecommunications
and Utilities sectors. Additionally, the equity portion of the Fund was not
invested within the strongly performing Consumer Discretionary sector, which
also detracted from relative performance. An underweight to Information
Technology also detracted from benchmark-relative performance.
The three largest detractors from benchmark-relative returns were ConocoPhillips
(Energy), PNC Financial (Financials), and Royal Dutch (Energy). While volatile,
the price of oil is essentially flat
7
- --------------------------------------------------------------------------------
compared with where it was a year ago. Energy stocks, meanwhile, underperformed
on a relative basis, and were the worst performing stocks over the period.
ConocoPhillips shares struggled due to the recent decline in North American
natural gas prices and lower refining margins. Royal Dutch also declined during
the period due to retracting oil prices. PNC Financial, while up during the
first two months, dropped sharply in early October as analysts were skeptical
about its proposed merger with Mercantile Bankshares. We held onto these stocks
at the end of the period despite reducing our positions within ConocoPhillips
and Royal Dutch Shell.
Top relative contributors to the Fund included FPL Group (Utilities), AT&T
(Telecommunications), and Dow Chemical (Materials). FPL, a generator and
distributor of electric energy, increased over the period due to a rise in
third-quarter profits, helped by strength at its unregulated power generation
unit. AT&T has over-delivered on original synergy estimates and raised guidance
as the legacy businesses have exceeded expectations. Additionally, the market is
anticipating higher synergy estimates for the AT&T/BellSouth merger. While Dow
Chemical posted lower third quarter earnings, the stock beat expectations as
strong pricing has helped offset increased input costs. Also, not holding Valero
Energy (Energy), which declined on weakness in oil prices also significantly
contributed to performance. We continued to hold positions in FPL, AT&T and Dow
at the end of the period.
On the fixed income side, the Fund's yield curve positioning detracted from
benchmark relative returns. Offsetting these results was the Fund's overweight
positions in high yield and emerging markets debt. We believe an economic growth
slowdown is apparent, but a hard landing is unlikely. Credit markets should
benefit from a less hawkish Fed. We feel that corporate bond spreads offer an
attractive level of compensation for the current environment of steady economic
growth, strong profits, and healthy corporate balance sheets. Credit default
rates remain low and emerging markets are benefiting from secular improvements
in credit quality as well as expanding exports. Additionally, we favor the
stability of the securitized sectors, namely asset-backed securities and
commercial mortgage-backed securities, and maintain an overweight to these
sectors.
WHAT IS THE OUTLOOK?
The equity portion of the Fund is managed with a large cap, value bias. At the
end of the period, the equity portion of the Fund was most overweight in the
Utilities, Telecommunications, and Materials sectors and most underweight the
Financials and Consumer Discretionary sectors. The equity and fixed income
managers continue to work collaboratively to make decisions regarding the Fund's
weights in equities and fixed income.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.1%
- -------------------------------------------------------------------
Capital Goods 1.4
- -------------------------------------------------------------------
Consumer Cyclical 3.6
- -------------------------------------------------------------------
Consumer Staples 4.6
- -------------------------------------------------------------------
Energy 7.1
- -------------------------------------------------------------------
Finance 32.4
- -------------------------------------------------------------------
Foreign Governments 5.0
- -------------------------------------------------------------------
Health Care 4.1
- -------------------------------------------------------------------
Services 5.3
- -------------------------------------------------------------------
Technology 15.9
- -------------------------------------------------------------------
Transportation 0.5
- -------------------------------------------------------------------
Utilities 10.1
- -------------------------------------------------------------------
Short-Term Investments 5.7
- -------------------------------------------------------------------
Other Assets & Liabilities -1.8
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DISTRIBUTION BY CATEGORY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
CATEGORY NAME NET ASSETS
- -------------------------------------------------------------------
Common Stock 45.4%
- -------------------------------------------------------------------
Asset & Commercial Mortgage Securities 4.7
- -------------------------------------------------------------------
Corporate Bonds: Investment Grade 36.3
- -------------------------------------------------------------------
Corporate Bonds: Non-Investment Grade 9.7
- -------------------------------------------------------------------
Short-Term Investments 5.7
- -------------------------------------------------------------------
Other Assets & Liabilities -1.8
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
8
The Hartford Capital Appreciation Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
CAPITAL APPRECIATION FUND S&P 500 INDEX RUSSELL 3000 INDEX
------------------------- ------------- ------------------
10/31/96 9450 10000 10000
10146 10755 10705
10540 10542 10576
11432 11200 11162
11361 11288 11174
10824 10825 10668
10919 11471 11194
13160 12169 11958
14278 12714 12455
15644 13725 13432
15953 12957 12887
17437 13666 13618
10/97 16493 13210 13160
16517 13821 13664
16350 14058 13938
15963 14213 14010
17467 15238 15013
18067 16018 15757
18165 16179 15912
16958 15901 15519
17221 16546 16044
16502 16371 15752
12897 14004 13339
13443 14901 14249
10/98 14774 16112 15331
15782 17088 16268
16882 18072 17302
18130 18827 17890
17064 18242 17257
18511 18972 17890
19561 19707 18697
20346 19242 18342
21454 20308 19269
21710 19675 18684
20950 19577 18472
20577 19041 18000
10/99 21884 20245 19129
23909 20657 19664
28151 21873 20919
27832 20774 20099
32349 20381 20285
32252 22373 21874
28888 21701 21104
27362 21255 20511
30223 21779 21118
29746 21439 20745
33063 22770 22283
32129 21568 21274
10/00 31017 21477 20971
28017 19785 19039
30503 19882 19358
32224 20587 20021
30323 18711 18191
28909 17526 17006
31364 18886 18369
31799 19013 18517
31258 18551 18175
29832 18368 17876
28533 17219 16821
24947 15829 15337
10/01 25670 16132 15693
27395 17369 16902
28448 17522 17140
27341 17266 16926
26511 16933 16579
27756 17570 17306
26043 16505 16398
25713 16384 16208
23595 15218 15042
21530 14032 13846
21967 14123 13911
20285 12590 12449
10/02 21786 13696 13441
23627 14501 14254
21945 13650 13448
21424 13294 13119
21137 13095 12903
20817 13222 13039
22499 14310 14104
24276 15063 14955
24883 15256 15157
25340 15525 15505
26266 15827 15848
26224 15659 15676
10/03 28203 16544 16625
28831 16690 16854
30811 17564 17625
31290 17887 17992
32386 18135 18235
32354 17862 18018
31215 17582 17646
31843 17822 17902
33110 18169 18258
31503 17567 17568
31002 17638 17640
32056 17829 17911
10/04 32780 18101 18205
35025 18834 19052
36335 19474 19731
35494 19000 19205
36845 19399 19628
35419 19056 19296
34376 18695 18877
35387 19289 19592
36079 19317 19729
37878 20035 20538
38197 19852 20342
39549 20013 20520
10/05 38857 19679 20136
40955 20422 20919
41821 20430 20938
43953 20971 21638
43543 21027 21676
44199 21289 22051
45383 21575 22290
43755 20955 21576
43287 20982 21614
42888 21112 21594
43954 21613 22122
44552 22170 22618
10/06 46458 22892 23432
</Table>
<Table>
--- CAPITAL APPRECIATION FUND --- S&P 500 INDEX --- RUSSELL 3000 INDEX
$9,450 starting value $10,000 starting value $10,000 starting value
$46,458 ending value $22,892 ending value $23,432 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
RUSSELL 3000 INDEX is an unmanaged index that measures the performance of the
3,000 largest U.S. companies based on total capitalization.
The Fund has changed its benchmark from the S&P 500 Index to the Russell 3000
Index because the Fund's investment manager believes that the Russell 3000 Index
is better suited to the investment strategy of the Fund.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -------------------------------------------------------------------
Cap App A# 7/22/1996 19.56% 12.59% 17.25% 19.17%
- -------------------------------------------------------------------
Cap App A## 7/22/1996 12.99% 11.32% 16.59% 18.52%
- -------------------------------------------------------------------
Cap App B# 7/22/1996 18.59% 11.75% NA* NA*
- -------------------------------------------------------------------
Cap App B## 7/22/1996 13.59% 11.49% NA* NA*
- -------------------------------------------------------------------
Cap App C# 7/22/1996 18.69% 11.86% 16.47% 18.38%
- -------------------------------------------------------------------
Cap App C## 7/22/1996 17.69% 11.86% 16.47% 18.38%
- -------------------------------------------------------------------
Cap App I# 7/22/1996 19.62% 12.60% 17.26% 19.18%
- -------------------------------------------------------------------
Cap App Y# 7/22/1996 20.07% 13.19% 13.19% 19.76%
- -------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* 10 year and 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. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGEMENT
SAUL J. PANNELL, CFA
Senior Vice President, Partner
FRANK D. CATRICKES, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Capital Appreciation Fund returned 19.56%,
before sales charges, for the twelve-month period ended October 31, 2006,
outperforming its benchmark, the Russell 3000 Index, which returned 16.37% for
the same period. The Fund also outperformed the 14.50% return of the average
fund in the Lipper Multi-Cap Core Funds peer group, a group of funds with
investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
As measured by the Russell 3000 Index, equity markets ended broadly higher for
the fourth fiscal year in a row. Ten of the last twelve months were positive,
with May showing the only significant decline as investors moved briefly away
from stocks in favor of less risky assets. Every sector in the benchmark posted
double digit positive returns for the period, led by a disparate group of
sectors: Telecommunication Services (+33%), Materials (+25%), and Financials
(+20%). The laggards in this environment were Health Care (+11%), Technology
(+11%), and Consumer Staples (+13%). These positive returns took place against a
backdrop of a weakening housing market, declining energy prices and continued
turmoil in Iraq.
Relative (i.e. performance of the Fund as measured against the benchmark) and
absolute performance was robust across the board. The Fund's results exceeded
those of the benchmark in eight of ten economic sectors, and all sectors
provided positive absolute returns. Relative performance was particularly strong
in the Financials, Information Technology, and Consumer Discretionary sectors.
Brazilian bank Unibanco and Chinese insurance company China Life led the way
among Financials stocks. In Technology, Korean electronics giant Samsung and
Taiwanese PC component manufacturer Hon Hai boosted relative returns. Within
Consumer Discretionary stocks, department store company Federated and auto giant
Toyota contributed most to relative outperformance. Other top relative and
absolute contributors included airline US Airways, and coal and metals producer
Teck Cominco.
9
- --------------------------------------------------------------------------------
The Fund lagged the benchmark in the Health Care and Energy sectors. Within
Health Care, medical device company Boston Scientific fell on safety concerns
regarding the company's implantable defibrillators and a Wall Street Journal
article stating that drug-eluting stents could be linked to higher incidences of
blood clots. We maintain our position as we expect improvement in cardiac rhythm
management, and the stock is attractively priced. Shares in Israeli generic drug
company Teva traded lower as the market absorbed news that Merck would be
pricing its Zocor drug competitively when it came off patent. We continue to
hold Teva as we believe the market is overestimating the impact of this
development. Lagging performance in Energy was primarily a result of not holding
a position in rising Exxon Mobil stock and owning shares of South African oil
and gas company Sasol. Other negative contributors included global semiconductor
company Marvell and flash storage company SanDisk.
WHAT IS THE OUTLOOK?
We maintain our expectations for stable, albeit moderate global growth over the
coming years. We expect a slowdown in economic activity and easing inflationary
pressures that should keep the global central banks on "hold" over the next
year.
We continue to focus our efforts on picking stocks one-at-a-time based on
detailed fundamental research. At the end of the period, our stock-by-stock
investment process resulted in greater-than-benchmark weights in Materials,
Information Technology, and Industrials stocks and less-than-benchmark weights
in Financials, Consumer Staples, and Health Care. Our largest absolute sector
weights at period-end were in the Technology, Industrials, and Financials
sectors.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 10.9%
- -------------------------------------------------------------------
Capital Goods 7.5
- -------------------------------------------------------------------
Consumer Cyclical 6.6
- -------------------------------------------------------------------
Consumer Staples 3.1
- -------------------------------------------------------------------
Energy 5.7
- -------------------------------------------------------------------
Finance 14.8
- -------------------------------------------------------------------
Health Care 5.1
- -------------------------------------------------------------------
Services 6.2
- -------------------------------------------------------------------
Technology 29.3
- -------------------------------------------------------------------
Transportation 1.9
- -------------------------------------------------------------------
Utilities 2.0
- -------------------------------------------------------------------
Short-Term Investments 15.9
- -------------------------------------------------------------------
Other Assets & Liabilities -9.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 0.7%
- -------------------------------------------------------------------
Bermuda 2.0
- -------------------------------------------------------------------
Brazil 3.6
- -------------------------------------------------------------------
Canada 2.7
- -------------------------------------------------------------------
China 0.5
- -------------------------------------------------------------------
France 0.5
- -------------------------------------------------------------------
Germany 1.3
- -------------------------------------------------------------------
Hong Kong 0.8
- -------------------------------------------------------------------
India 2.3
- -------------------------------------------------------------------
Ireland 0.2
- -------------------------------------------------------------------
Israel 1.1
- -------------------------------------------------------------------
Japan 3.1
- -------------------------------------------------------------------
Liberia 0.8
- -------------------------------------------------------------------
Luxembourg 1.1
- -------------------------------------------------------------------
Mexico 0.5
- -------------------------------------------------------------------
Russia 0.3
- -------------------------------------------------------------------
South Africa 0.8
- -------------------------------------------------------------------
South Korea 2.3
- -------------------------------------------------------------------
Switzerland 1.6
- -------------------------------------------------------------------
Taiwan 0.5
- -------------------------------------------------------------------
Turkey 1.1
- -------------------------------------------------------------------
United Kingdom 3.9
- -------------------------------------------------------------------
United States 61.4
- -------------------------------------------------------------------
Short Term Investments 15.9
- -------------------------------------------------------------------
Other Assets & Liabilities -9.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
10
The Hartford Capital Appreciation II Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(3) 4/29/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
CAPITAL APPRECIATION II FUND RUSSELL 3000 INDEX S&P 500 INDEX
---------------------------- ------------------ -------------
4/29/05 9450 10000 10000
9450 10000 10000
9809 10379 10318
6/05 10008 10451 10333
10452 10880 10717
8/05 10518 10776 10619
10669 10871 10705
10/05 10461 10667 10526
10890 11082 10924
12/05 11225 11092 10928
11972 11463 11217
2/06 11838 11483 11248
12068 11682 11388
4/06 12460 11808 11541
11972 11430 11209
6/06 11857 11450 11224
11723 11440 11293
8/06 11981 11720 11561
12135 11982 11859
10/06 12575 12413 12245
</Table>
<Table>
--- CAPITAL APPRECIATION II --- RUSSELL 3000 INDEX --- S&P 500 INDEX
FUND $10,000 starting value $10,000 starting value
$9,450 starting value $12,413 ending value $12,245 ending value
$12,575 ending value
</Table>
RUSSELL 3000 INDEX is an unmanaged index that measures the performance of the
3,000 largest U.S. companies based on total capitalization.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ---------------------------------------------------
Cap App II A# 4/29/2005 20.21% 20.88%
- ---------------------------------------------------
Cap App II A## 4/29/2005 13.60% 16.43%
- ---------------------------------------------------
Cap App II B# 4/29/2005 19.48% 20.03%
- ---------------------------------------------------
Cap App II B## 4/29/2005 14.48% 17.59%
- ---------------------------------------------------
Cap App II C# 4/29/2005 19.35% 20.09%
- ---------------------------------------------------
Cap App II C## 4/29/2005 18.35% 20.09%
- ---------------------------------------------------
Cap App II I## 4/29/2005 20.30% 20.94%
- ---------------------------------------------------
Cap App II Y# 4/29/2005 20.74% 21.30%
- ---------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGEMENT
JAMES H. AVERILL, PHD
Senior Vice President
DAVID R. FASSNACHT, CFA
Senior Vice President
JAMES N. MORDY
Senior Vice President
DAVID W. PALMER, CFA
Vice President
MICHAEL T. CARMEN, CFA
Senior Vice President
FRANK D. CATRICKES, CFA
Vice President
NICHOLAS M. CHOUMENKOVITCH, CFA
Vice President
SAUL J. PANNELL, CFA
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Capital Appreciation Fund II returned 20.21%,
before sales charges, for the twelve-month period ended October 31, 2006,
outperforming its benchmark, the Russell 3000 Index, which returned 16.37% for
the same period. The Fund also outperformed the 10.39% return of the average
fund in the Lipper Multi-Cap Growth Funds peer group, a group of funds with
investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
As measured by the Russell 3000, equity markets ended broadly higher for the
fourth fiscal year in a row. Ten of the last twelve months were positive, with
May showing the only significant decline as investors moved briefly away from
stocks in favor of less risky assets. Every sector in the benchmark posted
double digit positive returns for the period, led by a disparate group of
sectors: Telecommunication Services (+33%), Materials (+25%), and Financials
(+20%). The laggards in this environment were Health Care (+11%), Information
Technology (+11%), and Consumer Staples (+13%). These positive returns took
place against a backdrop of a weakening housing market, declining energy prices,
and continued turmoil in Iraq.
Relative (i.e. performance of the Fund as measured against the benchmark) and
absolute performance was robust across the board. Fund results exceeded those of
the benchmark in eight of ten economic sectors, and all sectors provided
positive absolute returns. Relative performance was particularly strong in the
Information Technology, Materials, and Energy sectors. Information
11
- --------------------------------------------------------------------------------
Technology results benefited from a position in data storage company Network
Appliance and by not holding a position in Intel, which fell during the period.
Relative performance in Materials was boosted by positions in Zinifex, Vedanta,
and Xstrata, all of which more than doubled in the last twelve months. Zinifex,
a leading zinc producer, rose on favorable supply/demand trends in the zinc
market. Indian miner Vedanta showed strong organic growth, a trend we expect
will continue. Xstrata, a diversified mining company, benefited from
expectations for its accretive acquisition of rival Falconbridge. Within Energy,
relative performance was primarily a result of a position in uranium producer
Cameco, which gained on favorable uranium supply and demand trends. Finally, the
fund benefited from its holdings in Gol Linhas Aereas, Brazil's low cost airline
carrier and one of the most profitable airlines globally.
Performance relative to the benchmark was negatively impacted by sector
positioning, which is a fallout of the bottom-up investment process. In
particular, underweights (i.e. the Fund's sector position was less than the
benchmark position) in the strong Financials and Telecommunication Services
sectors detracted from relative performance. In addition, relative performance
was hurt by stock selection among Consumer Staples and Telecommunication
Services stocks. Underperformance in Consumer Staples was driven by a position
in lagging tobacco company Altria and by exiting Procter & Gamble prior to the
stock's summer rise. Relative performance in Telecommunication Services was hurt
by not owning a position in BellSouth, which rose on news of the company's
merger with AT&T.
Other notable detractors from both absolute and relative returns during the
period were Sirius Satellite (Media), Williams-Sonoma (Retailing), and Standard
Pacific (Consumer Durables). Sirius Satellite fell on decelerating trends in
subscriber growth, while concerns about a weakening global consumer weighed on
the share price of Williams-Sonoma. Standard Pacific fell as evidence mounted of
a deteriorating housing market. The Fund was also impacted by an underweight
position in rising Exxon Mobil shares.
WHAT IS THE OUTLOOK?
Hartford Capital Appreciation II Fund is a multi-managed Fund with an
opportunistic investment approach. The Fund's managers pursue diverse and
complementary investment strategies, with fundamental, bottom-up research as the
foundation for portfolio construction. The Fund is not designed to exhibit an
intentional style bias, as the investment opportunity set includes stocks from
the full range of market capitalizations and investment styles.
We continue to focus our efforts on picking stocks one-at-a-time based on
detailed fundamental research. At the end of the period, our stock-by-stock
investment process resulted in greater-than-benchmark weights in Materials,
Consumer Discretionary, and Information Technology stocks and
less-than-benchmark weights in Consumer Staples, Financials, and Utilities. Our
largest absolute sector weights at period-end were in the Financials,
Technology, and Consumer Discretionary sectors.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 11.0%
- -------------------------------------------------------------------
Capital Goods 5.2
- -------------------------------------------------------------------
Consumer Cyclical 8.2
- -------------------------------------------------------------------
Consumer Staples 2.4
- -------------------------------------------------------------------
Energy 5.1
- -------------------------------------------------------------------
Finance 17.7
- -------------------------------------------------------------------
Health Care 8.8
- -------------------------------------------------------------------
Services 6.6
- -------------------------------------------------------------------
Technology 22.8
- -------------------------------------------------------------------
Transportation 3.7
- -------------------------------------------------------------------
Utilities 2.0
- -------------------------------------------------------------------
Short Term Investments 4.9
- -------------------------------------------------------------------
Other Assets & Liabilities 1.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 1.1%
- -------------------------------------------------------------------
Austria 0.2
- -------------------------------------------------------------------
Bermuda 0.5
- -------------------------------------------------------------------
Brazil 2.8
- -------------------------------------------------------------------
Canada 3.6
- -------------------------------------------------------------------
Cayman Islands 0.5
- -------------------------------------------------------------------
China 1.2
- -------------------------------------------------------------------
France 3.3
- -------------------------------------------------------------------
Germany 0.5
- -------------------------------------------------------------------
Hong Kong 0.9
- -------------------------------------------------------------------
Ireland 0.1
- -------------------------------------------------------------------
Israel 0.2
- -------------------------------------------------------------------
Italy 1.3
- -------------------------------------------------------------------
Japan 2.6
- -------------------------------------------------------------------
Mexico 0.2
- -------------------------------------------------------------------
Netherlands 1.2
- -------------------------------------------------------------------
Panama 0.1
- -------------------------------------------------------------------
Russia 0.5
- -------------------------------------------------------------------
South Africa 0.4
- -------------------------------------------------------------------
South Korea 0.6
- -------------------------------------------------------------------
Spain 0.4
- -------------------------------------------------------------------
Sweden 0.5
- -------------------------------------------------------------------
Switzerland 1.7
- -------------------------------------------------------------------
Turkey 0.3
- -------------------------------------------------------------------
United Kingdom 3.0
- -------------------------------------------------------------------
United States 65.8
- -------------------------------------------------------------------
Short-Term Investments 4.9
- -------------------------------------------------------------------
Other Assets & Liabilities 1.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
12
The Hartford Conservative Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT OBJECTIVE -- SEEKS CURRENT INCOME AND LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06
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
9431 9857 10156
9497 9897 10350
9606 10004 10378
10/04 9729 10157 10465
9900 10567 10382
10087 10927 10477
9982 10661 10543
2/05 10068 10885 10481
9929 10692 10427
9872 10490 10568
10054 10823 10682
6/05 10136 10838 10741
10271 11241 10643
10348 11139 10779
10357 11229 10668
10/05 10212 11042 10584
10422 11459 10631
10559 11463 10732
10806 11766 10732
2/06 10786 11798 10768
10823 11945 10662
10922 12105 10643
10753 11757 10631
6/06 10730 11773 10654
10750 11846 10798
10930 12127 10963
11027 12439 11060
10/06 11217 12844 11133
</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 $12,844 ending value
$11,217 ending value $11,133 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------------------
Conservative Allocation A# 5/28/2004 9.85% 7.32%
- ----------------------------------------------------------------
Conservative Allocation A## 5/28/2004 3.81% 4.85%
- ----------------------------------------------------------------
Conservative Allocation B# 5/28/2004 9.19% 6.65%
- ----------------------------------------------------------------
Conservative Allocation B## 5/28/2004 4.19% 5.51%
- ----------------------------------------------------------------
Conservative Allocation C# 5/28/2004 9.10% 6.62%
- ----------------------------------------------------------------
Conservative Allocation C## 5/28/2004 8.10% 6.62%
- ----------------------------------------------------------------
Conservative Allocation I# 5/28/2004 9.91% 7.34%
- ----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and I shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Conservative Allocation Fund (Class A) gained 9.85%, before sales
charges, for the year ended October 31, 2006, versus the returns of 7.62% for
the Lipper Mixed-Asset Target Allocation Conservative Funds peer group, 5.19%
for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500
Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening that began in the summer of 2004. By June of
2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17
consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's
tightening, short- and intermediate-term bond yields rose through the first half
of 2006. Thus, as interest rates rose, the principal value of these short- and
intermediate-term bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted (i.e. bonds with longer term maturities
having a lower interest rate than bonds with shorter maturities) through most of
the fiscal year. However, by August of 2006, the Fed became concerned that
economic growth was slowing, in part due to the retreating housing market. As
such, the Fed found itself in a conundrum as to whether it should continue
raising interest rates to restrain inflation, or to pause in the tightening
cycle to assess prospects for further economic growth. Since changes in the rate
of inflation often lag changes in economic conditions, the Fed left rates
unchanged at its two most recent meetings while it waited for more data before
taking action. Sensing that the Fed would continue easing monetary policy, the
bond and equity markets rallied in the last months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by favorable currency movements and strengthening foreign
13
- --------------------------------------------------------------------------------
economies, the international and emerging market equity indices outperformed the
major domestic indices for the year. Fortunately, the bond rally over the last
few months offset the negative impact of rising interest rates earlier in the
year, allowing the major bond sectors to finish with positive returns for the
period. During much of the year, fixed income investors were unable to achieve
higher levels of yield by going out longer on the yield curve (i.e. purchasing
bonds with a longer maturity date). Thus, many bond investors shifted to lower
quality and foreign issues as they sought greater yield. During the period, the
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. Although, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period, the Fund benefited from the out-of-index exposure to "spread" sectors
and higher yielding securities. With the Dow Jones Industrial reaching its all-
time high late in the period, the Fund also generated positive gains from its
allocation to equities. The Fund is constructed such that it has exposure to the
various styles of equities, including international, mid-cap and small cap
stocks. This diversification is expected to enhance the long-term return and
risk characteristics of the Fund. The added diversification benefited the Fund
through most of the year. However, since domestic, large cap stocks dominated
the stock rally late in the period, the Fund's exposure to foreign and smaller
capitalization equities partially offset some of their earlier contributions.
The Fund typically uses cash flows to implement investment allocation changes to
the Fund, when appropriate. However, a hard asset rebalance (i.e. a fund
rebalancing to move the underlying fund investments to their target allocation
percentages) was performed in February due to the strong performance by certain
investment sectors.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Fed is still concerned with inflation and that
policy decisions will favor price stability as long as economic growth does not
decline dramatically. In the coming months we will be closely watching the
economy to determine the impact of a slower housing market on the average U.S.
consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 8.2%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 5.7
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 1.2
- -------------------------------------------------------------------
Hartford Floating Rate Fund, Class Y 6.4
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 3.3
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 0.8
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 4.1
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 6.9
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 11.9
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 1.8
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 1.9
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 2.7
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 1.9
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 0.0
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 1.8
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 0.2
- -------------------------------------------------------------------
Hartford Select SmallCap Growth Fund, Class Y 0.4
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 13.5
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 1.0
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 1.1
- -------------------------------------------------------------------
Hartford Stock Fund, Class Y 3.5
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 17.2
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 4.4
- -------------------------------------------------------------------
Other Assets & Liabilities 0.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
14
The Hartford Disciplined Equity Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(3) 4/30/98 - 10/31/06
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
9592 10227
9592 10119
8269 8656
8829 9210
10/98 9625 9959
10156 10562
10847 11170
11198 11637
10790 11275
11311 11726
11652 12181
11416 11893
12145 12552
11889 12161
11719 12100
11368 11769
10/99 11861 12513
12177 12768
13104 13519
12359 12840
12330 12597
13648 13829
13104 13413
12779 13138
13249 13462
13143 13251
14028 14074
13181 13331
10/00 13123 13275
12073 12229
12254 12289
12855 12724
11813 11565
11172 10833
12073 11673
12174 11752
11923 11466
11663 11353
10971 10643
10059 9784
10/01 10380 9971
11111 10736
11212 10830
10951 10672
10631 10466
11021 10860
10250 10202
10150 10127
9298 9406
8657 8673
8707 8730
7755 7782
10/02 8446 8466
8897 8963
8396 8437
8116 8217
7985 8094
8036 8172
8657 8845
9128 9310
9208 9429
9328 9596
9538 9783
9538 9679
10/03 10100 10226
10250 10316
10777 10856
10937 11056
11058 11209
10887 11040
10737 10867
10727 11016
10968 11230
10526 10858
10516 10902
10627 11020
10/04 10697 11188
11158 11641
11611 12037
11388 11744
11611 11991
11388 11778
11187 11555
11590 11922
11722 11940
12146 12383
12115 12270
12237 12370
10/05 11893 12163
12338 12623
12315 12627
12618 12962
12608 12997
12730 13159
12851 13335
12487 12952
12497 12969
12507 13049
12780 13359
13032 13703
10/06 13336 14149
</Table>
<Table>
--- DISCIPLINED EQUITY FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$13,336 ending value $14,149 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------------
Disciplined Eqy A# 4/30/1998 12.13% 5.14% 4.13%
- -----------------------------------------------------------------
Disciplined Eqy A## 4/30/1998 5.97% 3.95% 3.44%
- -----------------------------------------------------------------
Disciplined Eqy B# 4/30/1998 11.38% 4.41% NA*
- -----------------------------------------------------------------
Disciplined Eqy B## 4/30/1998 6.38% 4.08% NA*
- -----------------------------------------------------------------
Disciplined Eqy C# 4/30/1998 11.37% 4.42% 3.42%
- -----------------------------------------------------------------
Disciplined Eqy C## 4/30/1998 10.37% 4.42% 3.42%
- -----------------------------------------------------------------
Disciplined Eqy Y# 4/30/1998 12.76% 5.72% 4.66%
- -----------------------------------------------------------------
</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 shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGEMENT
JAMES A. RULLO, CFA
Senior Vice President
MAMMEN CHALLY, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Disciplined Equity Fund returned 12.13%,
before sales charges, for the twelve-month period ended October 31, 2006,
underperforming its benchmark, the S&P 500, which returned 16.33% for the same
period. The Fund also underperformed the 14.23% return of the average fund in
the Lipper Large-Cap Core Funds peer group, a group of funds with investment
strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
US equities recorded strong one-year performance, the best among major developed
markets. In recent months, fears of excessive inflation and impending recession
were tempered by the sharp drop in energy prices and the rumblings that the
Federal Reserve may consider lowering the key fed funds rate in early 2007,
bolstering U.S. stocks. The news has not been uniformly positive; however, as
the long-awaited slowdown in the US housing market has arrived.
The fund's underperformance versus the S&P 500 was driven primarily by stock
selection within the Energy and Consumer Discretionary sectors. Lower gasoline
prices in the US, the lack of hurricane activity in the Gulf of Mexico, and a
calmer geo-political front have all contributed to declines in energy stocks.
Companies such as ConocoPhillips and Occidental Petroleum traded lower during
the year and detracted from overall performance. Shares of homebuilder DR Horton
suffered as declines in housing starts and record inventories impacted the
stock. In addition, the negative homebuilder sentiment associated with Federal
Reserve's rate increases excessively weighed on market sentiment towards this
industry. We no longer hold the security. Among other absolute detractors from
performance were Technology & Hardware securities Dell and Qualcomm, which were
eliminated during the period. Shares of computer systems manufacturer Dell fell
as it faced increased competition and a weak growth outlook for its PC business
in the US. Dell has been under pressure due to speculation that the company will
cut future pricing and margins in order to accelerate growth. Communication
Equipment company Qualcomm also underperformed on lower near-term growth
prospects and legal uncertainties.
The Fund benefited from positive stock selection relative to the benchmark in
the Financials and Utilities sectors. Financials sector performance was helped
by Goldman Sachs, Bank of America and Lehman Brothers, all of which profited
from strong trading revenues. Bank of America benefited from better than
expected savings from the integration of MBNA and continued low credit losses.
Other top relative contributors included Office Depot,
15
- --------------------------------------------------------------------------------
Lockheed Martin, and TXU. Retail holding Office Depot benefited from strong
momentum in North America office retail and delivery businesses combined with
improving international operations. Shares of defense contractor Lockheed Martin
climbed as the company continued to excel operationally and the forecast for US
defense spending remains favorable. We initiated a position in electric utility
TXU whose shares benefited from strong earnings and a positive response to its
plan to expand generation capacity.
WHAT IS THE OUTLOOK?
The risk of a US recession is still present. Still, several factors make us
believe that a hard landing can be avoided. A more benign energy price
environment will push inflation lower in 2007, which will, all else equal, put
more spending power into consumers' pockets. Modestly lower bond yields should
help stabilize the housing market at some point. Lastly, the Federal Reserve
Bank (the Fed) will stand ready to cut the Fed Fund's rate if there is an
unexpected deterioration in the labor market.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 4.6%
- -------------------------------------------------------------------
Capital Goods 6.5
- -------------------------------------------------------------------
Consumer Cyclical 6.8
- -------------------------------------------------------------------
Consumer Staples 1.9
- -------------------------------------------------------------------
Energy 9.9
- -------------------------------------------------------------------
Finance 23.1
- -------------------------------------------------------------------
Health Care 12.7
- -------------------------------------------------------------------
Services 7.5
- -------------------------------------------------------------------
Technology 24.6
- -------------------------------------------------------------------
Transportation 0.2
- -------------------------------------------------------------------
Utilities 1.9
- -------------------------------------------------------------------
Short-Term Investments 0.6
- -------------------------------------------------------------------
Other Assets & Liabilities -0.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
16
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) 10/31/96 - 10/31/06
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 RUSSELL 1000 VALUE INDEX
------------------------ ------------- ------------------------
10/31/96 9450 10000 10000
9964 10755 10725
9878 10542 10588
10344 11200 11102
10508 11288 11265
10102 10825 10860
10430 11471 11316
11103 12169 11948
11701 12714 12461
12377 13725 13398
11788 12957 12921
12483 13666 13702
10/97 12109 13210 13319
12682 13821 13908
12939 14058 14314
13106 14213 14111
13660 15238 15061
14379 16018 15982
14300 16179 16089
14062 15901 15851
14209 16546 16054
14103 16371 15770
12300 14004 13424
13070 14901 14194
10/98 13994 16112 15293
14412 17088 16006
14812 18072 16551
14669 18827 16683
14447 18242 16447
14802 18972 16788
15714 19707 18356
15312 19242 18154
15827 20308 18681
15335 19675 18134
14940 19577 17461
14545 19041 16851
10/99 15380 20245 17821
15294 20657 17682
15489 21873 17767
14864 20774 17187
14028 20381 15910
15571 22373 17852
15378 21701 17644
15700 21255 17830
15208 21779 17015
15208 21439 17228
16070 22770 18187
16222 21568 18353
10/00 16538 21477 18804
16213 19785 18106
17044 19882 19013
16780 20587 19086
16624 18711 18556
16090 17526 17900
16911 18886 18778
17195 19013 19200
16752 18551 18774
16860 18368 18734
16321 17219 17983
15259 15829 16718
10/01 15269 16132 16574
16092 17369 17537
16264 17522 17950
16305 17266 17812
16555 16933 17841
16995 17570 18685
16293 16505 18044
16443 16384 18134
15581 15218 17093
14376 14032 15504
14275 14123 15621
12725 12590 13884
10/02 13661 13696 14913
14576 14501 15852
13957 13650 15164
13483 13294 14797
13201 13095 14402
13173 13222 14426
14133 14310 15696
15032 15063 16709
15159 15256 16918
15301 15525 17170
15635 15827 17438
15446 15659 17268
10/03 16177 16544 18324
16471 16690 18573
17538 17564 19718
17589 17887 20064
17904 18135 20495
17680 17862 20315
17507 17582 19819
17517 17822 20021
17961 18169 20494
17553 17567 20205
17706 17638 20492
18010 17829 20810
10/04 18205 18101 21156
18979 18834 22226
19644 19474 22970
19156 19000 22562
19842 19399 23310
19444 19056 22990
19027 18695 22578
19361 19289 23122
19450 19317 23375
20129 20035 24051
20129 19852 23947
20484 20013 24283
10/05 20002 19679 23666
20613 20422 24444
20709 20430 24590
21430 20971 25545
21321 21027 25701
21657 21289 26049
22216 21575 26711
21744 20955 26037
21770 20982 26203
22155 21112 26840
22552 21613 27289
22955 22170 27833
10/06 23729 22892 28744
</Table>
<Table>
--- DIVIDEND AND GROWTH --- S&P 500 INDEX -- RUSSELL 1000 VALUE INDEX
FUND $10,000 starting value $10,000 starting value
$9,450 starting value $22,892 ending value $28,744 ending value
$23,729 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index
companies with lower price-to-book ratios and lower forecasted growth values.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ----------------------------------------------------------------------
Div & Growth A# 7/22/1996 18.63% 9.21% 9.64% 10.42%
- ----------------------------------------------------------------------
Div & Growth A## 7/22/1996 12.11% 7.99% 9.02% 9.81%
- ----------------------------------------------------------------------
Div & Growth B# 7/22/1996 17.63% 8.34% NA* NA*
- ----------------------------------------------------------------------
Div & Growth B## 7/22/1996 12.63% 8.05% NA* NA*
- ----------------------------------------------------------------------
Div & Growth C# 7/22/1996 17.75% 8.47% 8.88% 9.65%
- ----------------------------------------------------------------------
Div & Growth C## 7/22/1996 16.75% 8.47% 8.88% 9.65%
- ----------------------------------------------------------------------
Div & Growth I# 7/22/1996 18.61% 9.21% 9.64% 10.41%
- ----------------------------------------------------------------------
Div & Growth Y# 7/22/1996 19.15% 9.75% 10.17% 10.95%
- ----------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* 10 year and 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. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGER
EDWARD P. BOUSA, CFA
Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Dividend and Growth Fund returned 18.63%,
before sales charges, for the twelve-month period ended October 31, 2006,
outperforming its benchmark, the S&P 500 Index, which returned 16.33% for the
same period. The Fund also outperformed the 17.76% return of the average fund in
the Lipper Equity Income Funds peer group, a group of funds with investment
strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Equity markets ended the twelve month period with strong returns as a result of
declining energy prices and a halt in interest rate tightening by the Federal
Reserve in recent months. Large cap equities (+16%) continued to lag small cap
shares (+20%) and modestly outperformed mid cap names (+13%) as represented by
the S&P 500, Russell 2000, and S&P 400 MidCap indices respectively.
Additionally, value-oriented stocks dominated growth-oriented stocks. During the
twelve month period, Telecommunication Services (+33%), Materials (+25%), and
Energy (+19%) were clear leaders within the broad market, as represented by the
S&P 500, and Information Technology (+10%) and Health Care (+11%) returns were
modest in comparison.
The Fund outperformed the S&P 500 in six of the ten broad market sectors.
Favorable security selection in the Industrials and Consumer Discretionary
sectors drove outperformance. An underweight allocation to Information
Technology and materials also contributed to positive returns. Offsetting this
somewhat was poor security selection in Materials.
Among the leading contributors to benchmark-relative performance were AT&T
(Telecommunication Services), CSX (Transportation), and Rio Tinto (Materials).
Telecommunications company AT&T benefited from the stabilization of long
distance pricing and cost cutting from the Cingular acquisition. CSX, a
transportation company providing rail, intermodal and rail-to-truck transload
services, reported strong earnings as a result of operational improvements. We
took profits in and sold the security. Despite recent weakness in commodities,
mining company Rio Tinto was a strong contributor to relative performance for
the period. Exxon Mobil (Energy) and Bank of America (Diversified Financials)
were among top absolute contributors to
17
- --------------------------------------------------------------------------------
performance. Exxon Mobil finished strong despite falling oil prices and natural
gas prices during the latter part of the period. Diversified Financials names
like Bank of America profited from strong results across its set of businesses.
Relative performance was held back by not owning some strong performers held in
the benchmark such as Merck & Co (Pharmaceutical), Cisco (Technology Hardware),
and Goldman Sachs (Diversified Financials). Sprint Nextel (Telecommunication
Services), Newmont Mining (Materials), and Viacom (Media) were among the top
names detracting from absolute performance. Sprint Nextel fell with lower
quarterly earnings and concerns around increased expenditures related to
build-out of the high speed wireless network. Gold commodity weakness impacted
Newmont Mining although we view this as a normal correction in a long-term bull
market and project that global industrial demand for metals is likely to
continue. Shares of Viacom have been under pressure due to numerous management
changes and concerns over their digital strategy. However, we are encouraged by
Viacom's international growth potential, strong balance sheet and cash flow, and
a continued focus on shareholder value through their aggressive share repurchase
program.
WHAT IS THE OUTLOOK?
Our investment approach is focused on identifying industries where supply/demand
remains favorable. We remain overweight Energy stocks, as global demand remains
strong. The US does have an oversupply of natural gas at present, but we do not
believe this will persist for the long-term. We have increased our Technology
weighting as demographics around the world favor resumption in technology
growth.
We have been concerned about the impact a weaker housing market would have on
regional banks and consumer finance companies. While we remain underweight these
industries, we would be more interested in these companies at lower valuations.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 7.2%
- -------------------------------------------------------------------
Capital Goods 5.1
- -------------------------------------------------------------------
Consumer Cyclical 8.0
- -------------------------------------------------------------------
Consumer Staples 5.4
- -------------------------------------------------------------------
Energy 15.4
- -------------------------------------------------------------------
Finance 17.8
- -------------------------------------------------------------------
Health Care 9.2
- -------------------------------------------------------------------
Services 7.1
- -------------------------------------------------------------------
Technology 16.7
- -------------------------------------------------------------------
Transportation 0.5
- -------------------------------------------------------------------
Utilities 4.8
- -------------------------------------------------------------------
Short-Term Investments 4.2
- -------------------------------------------------------------------
Other Assets & Liabilities -1.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
18
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(3) 8/28/03 - 10/31/06
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
9450 10063
9403 9965
10/03 9800 10575
9944 10718
10613 11379
10546 11579
10736 11827
10623 11723
10432 11437
10470 11553
10633 11826
10422 11660
10642 11826
10764 12009
10/04 10860 12209
11287 12826
11623 13255
11458 13020
11904 13452
11607 13267
11568 13029
11617 13343
11678 13489
12012 13879
11982 13819
12174 14013
10/05 11918 13657
12179 14106
12201 14190
12540 14742
12739 14832
12754 15032
13244 15414
12954 15025
13042 15121
13394 15489
13595 15748
13802 16062
10/06 14146 16588
</Table>
<Table>
--- EQUITY INCOME FUND --- RUSSELL 1000 VALUE INDEX
$9,450 starting value $10,000 starting value
$14,146 ending value $16,588 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.
You cannot invest directly in an 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 the investment adviser, without which performance
would have been lower. For information on current expense
waivers/reimbursements, please see the prospectus.
PORTFOLIO MANAGER
JOHN R. RYAN, CFA
Senior Vice President, Managing Partner
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ------------------------------------------------------
Equity Income A# 8/28/2003 18.70% 13.53%
- ------------------------------------------------------
Equity Income A## 8/28/2003 12.17% 11.53%
- ------------------------------------------------------
Equity Income B# 8/28/2003 17.67% 12.61%
- ------------------------------------------------------
Equity Income B## 8/28/2003 12.67% 11.88%
- ------------------------------------------------------
Equity Income C# 8/28/2003 17.88% 12.79%
- ------------------------------------------------------
Equity Income C## 8/28/2003 16.88% 12.79%
- ------------------------------------------------------
Equity Income I# 8/28/2003 18.70% 13.53%
- ------------------------------------------------------
Equity Income Y# 8/28/2003 19.18% 14.13%
- ------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Equity Income Fund returned 18.70%, before
sales charges, for the twelve-month period ended October 31, 2006,
underperforming its benchmark, the Russell 1000 Value Index, which returned
21.46% for the same period. The Fund outperformed the 17.37% return of the
average fund in the Lipper Equity Income Fund peer group, a group of funds with
investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Improved investor sentiment regarding the likelihood of a global economic
slowdown and moderating inflation concerns helped global equity returns during
the period. Value outperformed Growth and the broader market, as the Russell
1000 Value index return of 21.46% beat the Russell 1000 Growth return of 10.84%
and the S&P 500 index return of 16.33%. All ten sectors of the Russell 1000
Value Index posted strong double digit returns. Telecommunication Services and
Materials were the top performers while Utilities and Information Technology
were relative laggards in the benchmark.
Unfavorable stock selection within Materials, Energy, and Health Care led to
some disappointments during the period. At the margin, the Fund's overweight
positions in Utilities and Consumer Staples also detracted from relative
performance. The three largest benchmark relative detractors owned in the
portfolio were Dow Chemical (Materials), ConocoPhillips (Energy) and Dominion
Resources (Utilities). Additionally, not owning Merck (Health Care) within the
portfolio also significantly detracted from performance.
Dow Chemical posted good profit results during the period; however, they were
unable to offset the headwinds of high energy and raw materials costs.
ConocoPhillips shares struggled due to the recent decline in North American
natural gas prices and lower refining margins. Merck's shares benefited from
higher than expected sales of Singulair, its treatment for asthma and seasonal
allergies, and FDA product approvals for several drugs within its pipeline. We
owned Dow Chemical, ConocoPhillips, and Dominion Resources at the end of the
period.
Partially offsetting these disappointments, the Fund benefited from a
combination of strong stock selection and sector allocation within Industrials,
Telecommunications Services and Financials. The top three benchmark relative
contributors were Caterpillar (Industrials), AT&T (Telecommunication Services)
and BellSouth (Telecommunication Services). Caterpillar's shares benefited from
growth in their underlying businesses. The stock pulled back sharply in
mid-October due to the market's expectation for stronger than delivered earnings
results. AT&T and BellSouth benefited from the much anticipated merger. We took
profits in Caterpillar and eliminated the position but held AT&T and BellSouth
at the end of the period.
19
- --------------------------------------------------------------------------------
WHAT IS THE OUTLOOK?
Global economic growth appears to have rolled past its peak, although it is
still running at a solid clip. While other investors are expressing skepticism
about the sustainability of the economic expansion, we expect global growth to
remain above 3%, with the US slowing to the 2-3% range. We have no expectation
for a recession, and are impressed so far by the consumer's ability to absorb
the twin hits of higher short-term interest rates and energy costs.
In anticipation of a slowing, yet healthy global economy, we have reduced
further the cyclicality of our portfolios, which has been ongoing for several
consecutive quarters. We methodically decreased our exposure to the consumer,
energy, and mortgage-related financial institutions and increased our exposure
to less cyclical areas, including telecommunications, consumer non-durables, and
non-credit sensitive financial institutions.
At the end of the period, relative to the Russell 1000 Value Index, the Fund was
overweight Materials, Consumer Staples, Utilities, Industrials,
Telecommunications Services, and Health Care and underweight Consumer
Discretionary, Financials, Information Technology and Energy.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 8.8%
- -------------------------------------------------------------------
Capital Goods 5.6
- -------------------------------------------------------------------
Consumer Cyclical 3.2
- -------------------------------------------------------------------
Consumer Staples 7.2
- -------------------------------------------------------------------
Energy 9.3
- -------------------------------------------------------------------
Finance 29.5
- -------------------------------------------------------------------
Health Care 8.5
- -------------------------------------------------------------------
Services 2.2
- -------------------------------------------------------------------
Technology 13.6
- -------------------------------------------------------------------
Utilities 10.6
- -------------------------------------------------------------------
Short-Term Investments 1.8
- -------------------------------------------------------------------
Other Assets & Liabilities -0.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
20
The Hartford Floating Rate Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT OBJECTIVE -- SEEKS A HIGH LEVEL OF CURRENT
INCOME.
PERFORMANCE OVERVIEW(3) 4/29/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
FLOATING RATE FUND CSFB LEVERAGED LOAN INDEX
------------------ -------------------------
4/29/05 9700 10000
9700 10000
9681 10008
6/05 9799 10075
9869 10154
9960 10225
9984 10273
10/05 9997 10306
10042 10340
10100 10391
10159 10460
2/06 10230 10533
10292 10611
10354 10662
10377 10703
6/06 10402 10747
10457 10803
10536 10877
10583 10936
10/06 10654 11010
</Table>
<Table>
--- FLOATING RATE FUND --- CSFB LEVERAGED LOAN INDEX
$9,700 starting value $10,000 starting value
$10,654 ending value $11,010 ending value
</Table>
CSFB LEVERAGED LOAN INDEX is designed to mirror the investable universe of the
$U.S.-denominated leveraged loan market.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ------------------------------------------------------
Floating Rate A# 4/29/2005 6.56% 6.42%
- ------------------------------------------------------
Floating Rate A## 4/29/2005 3.36% 4.29%
- ------------------------------------------------------
Floating Rate B# 4/29/2005 5.79% 5.63%
- ------------------------------------------------------
Floating Rate B## 4/29/2005 0.79% 3.04%
- ------------------------------------------------------
Floating Rate C# 4/29/2005 5.86% 5.68%
- ------------------------------------------------------
Floating Rate C## 4/29/2005 4.86% 5.68%
- ------------------------------------------------------
Floating Rate I# 4/29/2005 6.66% 6.49%
- ------------------------------------------------------
Floating Rate Y# 4/29/2005 7.00% 6.73%
- ------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGERS
MICHAEL BACEVICH
Managing Director
JOHN CONNOR
Vice President, Credit Research Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Floating Rate Fund (Class A) gained 6.56%, before sales charges,
for the 12 month period ended October 31, 2006, trailing its benchmark, the CSFB
Leveraged Loan Index, which returned 6.83%. Further, the Fund outperformed the
5.80% return of the Lipper Loan Participation Funds peer group, a group of funds
with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
For most of the Fund's fiscal year, which ended October 31, 2006, US interest
rates rose steadily. Historically high energy and commodity prices, strong
demand for housing, and a strengthening economy sustained investor concerns
about rising inflation throughout the period. To keep inflation in check, the
Federal Reserve (the Fed) continued its cycle of monetary tightening that began
in the summer of 2004. By June of 2006, the Fed had raised its Federal Funds
Target Rate (Fed Funds Rate) 17 consecutive times, bringing the Fed Funds rate
to 5.25%. During this period, 3-month LIBOR (London Inter-Bank Offer Rate),
generally considered the benchmark rate for the domestic floating rate debt
market, also rose consistently, peaking around 5.52%. This dynamic has proven to
be very beneficial to the floating rate asset class, including the bank loans
and floating rate notes that constitute the Fund's core portfolio.
Over the past few months of the year, the Fed faced the increasingly difficult
choice of whether to i.) continue raising rates to restrain inflation, or ii.)
ease monetary policy in order to forestall a potential recession tied to higher
housing costs and lower consumer demand. Balancing several factors in its
analysis, the Fed decided to pause its long-term strategy of rate increases.
Consequently, both the Fed Funds and LIBOR benchmarks have held at flat levels
since this time.
Despite some concern about the potential for economic weakness toward the end of
the year, the credit markets actually rallied during this period. While the
investment grade corporate and high yield bond sectors led the way with very
strong returns, the floating rate asset class also posted solid results.
Overall, the fiscal year just completed proved to be a very good one for our
asset classes with market liquidity is at an all-time high, and the incidence of
loan/bond defaults and distressed credits has been very low. Although floating
rate asset valuations fluctuated throughout the year, as is typical, price
volatility has been within normal expectations. As a result, the NAV for the
Fund remained within a relatively narrow band throughout the period.
21
- --------------------------------------------------------------------------------
Over the 12 month period ended October 31, 2006, the performance of the Floating
Rate Fund benefited from several positive dynamics:
i. Rising short-term interest rates throughout most of the year, as evidenced by
a total increase in the LIBOR benchmark by over 1%;
ii. Attractive average spread over LIBOR for the floating rate assets in the
Fund. Spread is the premium that issuers pay to lenders to compensate for credit
risk assumed;
iii. A modest amount of realized trading gains, which boosted returns;
iv. Minimal losses from loan defaults and sales of financially distressed
holdings;
v. The consistently high percentage of loan/bond fundings in the Fund, even
considering the strong growth of assets in the Fund during the year. The Fund
seeks to remain fully invested in order to generate income
vi. Very tight supply/demand balance for US leveraged loan assets, which
supported relatively high valuations for new and existing holdings of the Fund.
With more than 300 holdings (no individual issuers larger than 1.3% of the
portfolio) and exposure to more than 30 industries, the Fund continues to be
very well diversified -- a key aspect of our strategy.
WHAT IS THE OUTLOOK?
The new fiscal year has thus far witnessed ongoing strength and liquidity of the
loan and bond markets, with valuations up even more from recent levels. We
expect new bank loan issue volume to remain very high for the near term and to
include some of the largest new issue transactions ever sold into our market.
Given the Fed's neutral approach toward future rate increases and the relatively
benign nature of most recent economic indicators, we anticipate that the overall
tone for the bank loan and floating rate bond markets should remain positive
well into 2007. As always, we remain very focused on generating attractive
returns for the Fund while ensuring relative NAV price stability for
shareholders. We expect to add credits selectively to the Fund via reasonably
priced new loans and purchases in the secondary markets, while also protecting
overall portfolio value through i.) "defensive" sales of loans and securities
with weakening credit profiles, and ii.) proactive reduction of exposure to
industries with deteriorating prospects.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 14.5%
- -------------------------------------------------------------------
Capital Goods 2.5
- -------------------------------------------------------------------
Consumer Cyclical 12.5
- -------------------------------------------------------------------
Consumer Staples 4.6
- -------------------------------------------------------------------
Energy 1.7
- -------------------------------------------------------------------
Finance 7.9
- -------------------------------------------------------------------
Health Care 9.7
- -------------------------------------------------------------------
Services 25.0
- -------------------------------------------------------------------
Technology 15.2
- -------------------------------------------------------------------
Transportation 2.3
- -------------------------------------------------------------------
Utilities 4.0
- -------------------------------------------------------------------
Short-Term Investments 3.4
- -------------------------------------------------------------------
Other Assets & Liabilities -3.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
22
The Hartford Focus Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/24/01 - 10/31/06
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
9185 9479
8996 9386
8770 8799
8014 8088
10/01 8335 8243
9129 8875
9526 8953
9176 8823
9072 8652
9299 8978
8439 8434
8222 8372
7513 7776
7125 7170
7088 7217
6275 6433
10/02 6917 6998
7626 7410
7106 6975
6927 6793
6719 6691
6738 6756
7229 7312
7664 7697
7721 7795
8042 7933
8108 8087
7919 8002
10/03 8448 8454
8514 8528
9034 8975
9091 9140
9110 9267
8892 9127
8703 8984
8807 9107
9063 9284
8855 8977
8826 9013
8789 9110
10/04 8637 9249
8996 9624
9246 9951
9029 9708
9218 9913
8887 9737
8849 9553
9209 9856
9190 9870
9662 10237
9643 10144
9785 10226
10/05 9700 10056
10069 10435
10121 10439
10312 10716
10207 10745
10283 10878
10417 11024
10122 10707
9846 10722
9684 10788
9998 11044
10217 11328
10/06 10484 11697
</Table>
<Table>
--- FOCUS FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$10,484 ending value $11,697 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -------------------------------------------------------
Focus A# 5/24/2001 8.07% 4.69% 1.92%
- -------------------------------------------------------
Focus A## 5/24/2001 2.13% 3.51% 0.87%
- -------------------------------------------------------
Focus B# 5/24/2001 7.24% 3.93% 1.18%
- -------------------------------------------------------
Focus B## 5/24/2001 2.24% 3.59% 1.01%
- -------------------------------------------------------
Focus C# 5/24/2001 7.34% 3.95% 1.20%
- -------------------------------------------------------
Focus C## 5/24/2001 6.34% 3.95% 1.20%
- -------------------------------------------------------
Focus Y# 5/24/2001 8.57% 5.19% 2.39%
- -------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGER
STEVEN T. IRONS, CFA
Senior Vice President, Partner
PETER I. HIGGINS, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Focus Fund returned 8.07%, before sales
charges, for the twelve-month period ended October 31, 2006, underperforming its
benchmark, the S&P 500 Index which returned 16.33% for the same period. The Fund
also underperformed the 14.23% return of the average fund in the Lipper Large
Cap Core Funds peer group, a group of funds with investment strategies similar
to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Despite weakening housing prices, concerns regarding the consumer and the
Federal Reserve's monetary tightening, equity markets continue to show strength.
The S&P 500 was up 16.33% for the reporting period and showed broad based
strength posting positive results in all ten sectors. Sector results were led by
Telecommunication Services, Materials, and Energy. Information Technology,
Health Care, and Consumer Staples all posted robust returns but lagged the
general market.
The Fund underperformed during the period due to poor stock selection across
several sectors including Consumer Discretionary and Health Care. Sector
allocation did not play a major role in performance. XM Satellite, Boston
Scientific, Dollar General and Medtronic detracted from benchmark relative
returns during the period. Media company XM Satellite continues to come under
pressure. Decelerating customer addition trends and regulatory review of product
compliance have caused investors to question the market opportunity. The
portfolio continues to hold the stock based on positive long-term trends in
satellite radio due to original equipment manufacturer (OEM) adoption. Boston
Scientific has had a tough year suffering from erosion of its Implantable
Cardioverter Defibrillator (ICD) market share, concerns surrounding its drug
eluting stent business, and continued issues with cardiac product recalls after
its recently acquired Guidant business. We retain our position as the
fundamentals of the company remain sound and the stock is attractively priced.
Discount retailer Dollar General disappointed due to high gasoline prices
hitting Dollar General customers and thus impacting the company's top line.
Additionally, Dollar General has been selling more lower-margin "highly
consumables" than anticipated. These are products like perishable foods and
cleaning supplies are used up quickly by consumers and need to be replaced
frequently, but carry thin margins. Medtronic also suffered due to concerns
about its ICD business. We believe the company will benefit from improvements in
its ICD business as well as from its strong product pipeline.
23
- --------------------------------------------------------------------------------
Consistent with the Fund's approach of searching for stocks across the full
spectrum of opportunities, the Fund had strong performance from stocks in a
variety of sectors including Information Technology and Financials. Stocks that
contributed the most to the Fund's relative returns (i.e. returns of the Fund as
measured against the benchmark) included Munich Re, UBS, Cisco and Accenture.
UBS, the Swiss-based financial institution, posted outstanding results due
primarily to its succeeding wealth management business. The firm has a superior
business mix that leads to less volatility and should continue to be rewarded
with higher multiples than the average broker. Manufacturer of networking
systems Cisco has been reporting better than expected earnings as enterprise and
service provider revenues improve. Additionally, sales to emerging markets are
providing added growth. We have been taking profits and trimming our position in
Cisco. German reinsurance company Munich Re reported better-than-expected
results due to higher profits from investments and fewer claims due to low
levels of natural catastrophes. The company continues to generate good return on
capital and improving capital management. Accenture, a global management
consulting company, has seen solid results due to strong demand for its
consulting and outsourcing services. Additionally, the company has a solid
pipeline of new bookings, is well run, and is aggressively returning cash to
shareholders.
WHAT IS THE OUTLOOK?
The Fund is managed in a concentrated, large cap core investment approach. The
fund is constructed by selecting roughly 20-40 stocks from the universe of the
80 to 120 stocks in The Hartford Stock Fund. We look for stocks that exhibit
some or all of the following characteristics: leadership within an industry, a
strong balance sheet, solid management teams, high return on equity,
accelerating earnings, and/or attractive valuation with a catalyst. At end of
the period, the Fund's bottom-up investment approach resulted in overweights in
Health Care, Information Technology and Industrials and underweights in Energy,
Financials and Utilities.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 4.6%
- -------------------------------------------------------------------
Capital Goods 4.1
- -------------------------------------------------------------------
Consumer Cyclical 4.9
- -------------------------------------------------------------------
Consumer Staples 4.2
- -------------------------------------------------------------------
Energy 4.3
- -------------------------------------------------------------------
Finance 20.2
- -------------------------------------------------------------------
Health Care 14.5
- -------------------------------------------------------------------
Services 9.5
- -------------------------------------------------------------------
Technology 33.4
- -------------------------------------------------------------------
Short-Term Investments 0.7
- -------------------------------------------------------------------
Other Assets & Liabilities -0.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
24
The Hartford Global Communications Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 10/31/00 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MSCI AC WORLD
GLOBAL COMMUNICATIONS TELECOMMUNICATIONS SERVICES
FUND INDEX S&P 500 INDEX
--------------------- --------------------------- -------------
10/31/00 9450 10000 10000
7314 8625 9212
7399 8405 9257
8883 9230 9586
7069 7800 8712
5982 7361 8161
6492 7922 8794
5963 7312 8853
5689 6831 8638
5585 6911 8553
4791 6173 8018
4564 6248 7370
10/01 4319 6020 7511
4564 6306 8087
4697 6343 8158
4101 5775 8039
3600 5513 7884
3733 5585 8181
3317 4976 7685
3326 5009 7628
2882 4489 7085
2731 4254 6533
2882 4250 6576
2504 3594 5862
10/02 3062 4411 6377
3393 4883 6752
3241 4594 6356
3156 4493 6190
3137 4261 6097
3081 4208 6156
3383 4713 6662
3667 5055 7013
3865 5098 7103
3875 4978 7228
3988 4964 7369
4064 4994 7291
10/03 4413 5234 7703
4564 5413 7770
5018 5855 8178
5160 6052 8328
5160 6096 8444
5160 5968 8316
4961 5868 8186
4905 5717 8298
5084 5824 8459
4923 5792 8179
4668 5848 8212
4791 6000 8301
10/04 5179 6285 8428
5963 6751 8769
6194 7014 9067
5956 6718 8846
6184 6828 9032
5794 6656 8872
5613 6537 8704
5784 6520 8981
6203 6585 8994
6775 6882 9328
6746 6871 9243
7004 6917 9318
10/05 6785 6733 9162
7004 6665 9508
7090 6669 9512
7273 6799 9764
7399 6831 9790
7534 7058 9912
7727 7319 10045
7012 7118 9756
6800 7147 9769
6761 7339 9829
6915 7501 10063
7157 7823 10322
10/06 7775 8348 10658
</Table>
<Table>
--- GLOBAL COMMUNICATIONS FUND --- MSCI AC WORLD TELECOMMUNICATIONS
$9,450 starting value SERVICES INDEX
$7,775 ending value $10,000 starting value
$8,348 ending value
-- S&P 500 INDEX
$10,000 starting value
$10,658 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 TELECOMMUNICATIONS SERVICES INDEX is a free
float-adjusted market capitalization index which measures the performance of
companies within the telecommunications sector across both developed and
emerging market countries. The index is calculated to exclude companies and
share classes which cannot be freely purchased by foreigners.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------
Global Comm A# 10/31/2000 14.60% 12.47% -3.20%
- --------------------------------------------------------------
Global Comm A## 10/31/2000 8.30% 11.21% -4.11%
- --------------------------------------------------------------
Global Comm B# 10/31/2000 13.93% 11.72% -3.84%
- --------------------------------------------------------------
Global Comm B## 10/31/2000 8.93% 11.46% -4.00%
- --------------------------------------------------------------
Global Comm C# 10/31/2000 13.74% 11.65% -3.89%
- --------------------------------------------------------------
Global Comm C## 10/31/2000 12.74% 11.65% -3.89%
- --------------------------------------------------------------
Global Comm Y# 10/31/2000 15.14% 12.98% -2.73%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGEMENT TEAM
ARCHANA BASI, CFA
Vice President, Global Industry Analyst
DAVID NINCIC, CFA
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Global Communications Fund returned 14.60%,
before sales charges, for the twelve-month period ended October 31, 2006,
underperforming its benchmark, the MSCI All Country World Telecommunication
Services Index, which returned 24.12% for the same period. The Fund lagged the
19.81% return of the average fund in the Lipper Telecommunications Funds peer
group, a group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Telecommunication Services stocks performed well during the period, outpacing
the broader market as represented by the S&P 500 Index and the MSCI World Index.
The Fund's strong absolute performance was primarily due to holdings within
Wireless Telecommunications Services. However, security selection within the
Integrated Telecommunications Services sub-industry detracted from benchmark
relative returns. Overall allocation decisions across the sub-industries also
hurt relative performance.
Top contributors to relative and absolute performance during the period included
Phillipines Long Distance, Turkcell, Vimpel Communications and Mobile
Telesystems. Phillipines Long Distance Telephone benefited from
better-than-expected wireless growth and improved cost efficiencies, which
resulted in increased margins. Turkcell, a mobile communication services
provider, performed well despite a challenging macro backdrop in Turkey. In
Russia, both Vimpel Communications and Mobile Telesystems reported strong
results and stable average revenues per user (ARPU), suggesting that price
competition was easing. We held all four stocks at the end of the period.
Stocks that detracted from relative and absolute performance included KongZhong,
NeuStar and Westell Technologies. KongZhong, a provider of interactive
entertainment services for wireless devices in China, shares suffered because of
announced
25
- --------------------------------------------------------------------------------
regulatory changes that will hurt its revenues. NeuStar, a telephone number
database company, fell due to investor concerns about a contract renegotiation
that resulted in lower rates. Westell, a telecommunications equipment company,
fell after the company lowered third quarter guidance because of anticipated
changes in customer promotional activity and pricing reductions amidst seasonal
softness in several businesses. We sold Westell during the period and held
KongZhong and NeuStar at the end of the period.
WHAT IS THE OUTLOOK?
For the remainder of 2006, we remain optimistic on the performance of telecom
stocks. Within the wireline sector, we prefer stocks outside of North America.
While many international 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.
For the wireless sector, we remain bullish on US stocks. The US wireless
industry is a telecom rarity because the sector is experiencing capacity
constraints, whereas the telecom norm is one of excess supply. We believe these
capacity constraints should result in pricing power and, ultimately, strong
financial results for the US wireless carriers.
While the telecom industry is highly competitive, we believe that there are many
attractive opportunities and that the Fund can continue to find underpriced
stocks of companies with improving business fundamentals. Often, these companies
are not well known among global investors, but we frequently find the best
opportunities in stocks unfamiliar to the investment community.
At the end of the period the Fund was positioned based on our beliefs that
wireless stocks are likely to outperform wireline stocks; North American and
Asian wireless are likely to outperform European wireless; and Emerging Market
wireline stocks are likely to outperform developed market wireline stocks.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Communications Equipment Manufacturing 3.9%
- -------------------------------------------------------------------
Other Telecommunications 27.7
- -------------------------------------------------------------------
Semiconductor, Electronic Component Manufacturing 0.5
- -------------------------------------------------------------------
Software Publishers 3.9
- -------------------------------------------------------------------
Wired Telecommunications Carriers 23.2
- -------------------------------------------------------------------
Wireless Communications Services 5.1
- -------------------------------------------------------------------
Wireless Telecommunications Carriers 32.6
- -------------------------------------------------------------------
Short-Term Investments 12.0
- -------------------------------------------------------------------
Other Assets & Liabilities -8.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------------------------------------------------
Brazil 8.6%
- -------------------------------------------------------------------
China 1.8
- -------------------------------------------------------------------
Egypt 1.0
- -------------------------------------------------------------------
France 6.1
- -------------------------------------------------------------------
Germany 1.7
- -------------------------------------------------------------------
Italy 0.3
- -------------------------------------------------------------------
Luxembourg 3.5
- -------------------------------------------------------------------
Morocco 0.1
- -------------------------------------------------------------------
Norway 4.1
- -------------------------------------------------------------------
Philippines 5.9
- -------------------------------------------------------------------
Russia 15.6
- -------------------------------------------------------------------
South Africa 6.9
- -------------------------------------------------------------------
South Korea 0.5
- -------------------------------------------------------------------
Spain 4.0
- -------------------------------------------------------------------
Turkey 6.0
- -------------------------------------------------------------------
United States 30.8
- -------------------------------------------------------------------
Short-Term Investments 12.0
- -------------------------------------------------------------------
Other Assets & Liabilities -8.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
26
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 - 10/31/06
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
9856 10361 9586
9630 9685 8712
9289 9114 8161
9715 9501 8794
9941 9447 8853
9989 9364 8638
9885 9166 8553
9715 9066 8018
8836 8104 7370
10/01 8855 8117 7511
9100 8533 8087
9384 8630 8158
8949 8330 8039
8921 8183 7884
9403 8772 8181
9431 8799 7685
9299 8911 7628
8987 8423 7085
8080 7630 6533
8070 7728 6576
7135 6668 5862
10/02 7588 7314 6377
8004 7672 6752
7566 7225 6356
7206 6988 6190
7025 6841 6097
6987 6711 6156
7718 7651 6662
8098 8072 7013
8184 8233 7103
8459 8609 7228
8430 8518 7369
8582 8730 7291
10/03 9218 9425 7703
9256 9508 7770
9831 10097 8178
10023 10330 8328
10281 10564 8444
10243 10532 8316
9803 10162 8186
9831 10238 8298
9927 10348 8459
9477 10035 8179
9717 10293 8212
9784 10403 8301
10/04 9994 10686 8428
10434 11230 8769
10951 11808 9067
10680 11530 8846
10768 11742 9032
10477 11409 8872
10400 11218 8704
10525 11348 8981
10738 11519 8994
10961 11790 9328
10884 11822 9243
11194 12227 9318
10/05 11232 12296 9162
11794 12859 9508
11998 13204 9512
12496 13694 9764
12633 14035 9790
12760 14201 9912
13337 14808 10045
12819 14197 9756
12702 14154 9769
12731 14352 9829
13181 14783 10063
13356 15093 10322
10/06 13689 15531 10658
</Table>
<Table>
--- GLOBAL FINANCIAL SERVICES FUND --- MSCI FINANCE EX REAL ESTATE INDEX
$9,450 starting value $10,000 starting value
$13,689 ending value $15,531 ending value
-- S&P 500 INDEX
$10,000 starting value
$10,658 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 SINCE
DATE YEAR YEAR INCEPTION
- ----------------------------------------------------------------
Global Fin Ser A# 10/31/2000 21.87% 9.10% 6.37%
- ----------------------------------------------------------------
Global Fin Ser A## 10/31/2000 15.16% 7.87% 5.37%
- ----------------------------------------------------------------
Global Fin Ser B# 10/31/2000 21.06% 8.36% 5.63%
- ----------------------------------------------------------------
Global Fin Ser B## 10/31/2000 16.06% 8.06% 5.50%
- ----------------------------------------------------------------
Global Fin Ser C# 10/31/2000 20.88% 8.32% 5.61%
- ----------------------------------------------------------------
Global Fin Ser C## 10/31/2000 19.88% 8.32% 5.61%
- ----------------------------------------------------------------
Global Fin Ser Y# 10/31/2000 22.24% 9.59% 6.84%
- ----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGEMENT TEAM
MARK T. LYNCH, CFA
Senior Vice President, Partner,
Global Industry Analyst
THEODORE SHASTA, CFA
Senior Vice President, Partner,
Global Industry Analyst
JENNIFER L. NETTESHEIM, CFA
Vice President, Global Industry Analyst
R. ANDREW HEISKELL
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Global Financial Services Fund returned
21.87%, before sales charges, for the twelve-month period ended October 31,
2006, underperforming its benchmark, the MSCI Finance ex-Real Estate Index,
which returned 26.30% for the same period. The Fund outperformed the 18.58%
return of the average fund in the Lipper Financial Services Funds peer group, a
group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Financial stocks have performed well over the last twelve months despite
interest rate uncertainty and inflation concerns. The Finance sector
outperformed both the S&P 500 and MSCI World Index during the twelve-month
period. Almost all industries within the Finance sector posted positive returns,
led by Capital Markets and Diversified Financial Services, while Real Estate
Management & Development and Consumer Finance companies trailed by the widest
margin.
Commercial Banks and Capital Markets contributed most to the Fund's strong
absolute performance during the period. Industry allocation, including the
Fund's slight overweights in Consumer Finance and Thrifts and Mortgage Finance,
detracted from benchmark relative performance. Weaker security selection within
Insurance also hurt relative returns as St Paul Travelers, ACE and American
International Group were among relative detractors during the period. We sold
our positions in St Paul Travelers and American International Group and
continued to hold ACE at the end of the period.
Top contributors to relative performance included Euronext and Capitalia, while
Banco Bilbao Vizcaya contributed most on an absolute basis. The prospect of
industry consolidation played a part in driving up shares of stock market
companies such as
27
- --------------------------------------------------------------------------------
Euronext during the period. Capitalia shares surged on speculation that further
consolidation in the Italian banking market would see it become a likely
takeover target. Banco Bilbao Vizcaya benefited from strong growth in emerging
markets. We eliminated the Euronext and Capitalia and continued to hold Banco
Bilbao Vizcaya at the end of the period.
WHAT IS THE OUTLOOK?
We remain bearish on US banking since recent earnings-per-share growth has come
from unsustainable areas such as venture capital, mortgage banking and credit
quality while the less volatile areas, particularly spread income, are under
severe competitive pressure. In addition, loan quality statistics are beginning
to deteriorate from pristine levels and the hard landing for the homebuilders
will likely challenge the more aggressive banks. Within the US we favor the
cheaper, less risky large banks as value is difficult to find in the small caps.
We continue to expect stronger growth opportunities outside the US, particularly
in diversified financial services and banking.
Within Capital Markets, the merger and acquisition cycle remains robust. We have
maintained a cautious stance within Investment Banks; however, we believe there
is longer-term potential due to the depth and breadth of product, geographies
and liquidity in the market place. In addition, the fourth and first quarters
are seasonally stronger periods for these business models. We are also focusing
on Asset Managers that concentrate on organic growth with excess cash
deployment.
We are likely nearing the end of the bull market in life insurance stocks. We
expect that year-over-year comparisons will become increasingly difficult as
growth slows. The US market remains highly competitive with modest margins and
limited growth potential. The large, globally diversified life companies
continue to have an advantage in terms of scale, distribution and product
development.
At the end of the period we were most overweight the Insurance, Diversified
Financial Services and Consumer Finance industries and underweight Commercial
Banks and Capital Markets.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 4.6%
- -------------------------------------------------------------------
Canada 2.8
- -------------------------------------------------------------------
Germany 7.6
- -------------------------------------------------------------------
Hong Kong 2.1
- -------------------------------------------------------------------
Italy 5.9
- -------------------------------------------------------------------
Japan 4.6
- -------------------------------------------------------------------
Netherlands 2.7
- -------------------------------------------------------------------
Spain 3.8
- -------------------------------------------------------------------
Switzerland 8.3
- -------------------------------------------------------------------
United Kingdom 7.5
- -------------------------------------------------------------------
United States 48.1
- -------------------------------------------------------------------
Short-Term Investments 11.0
- -------------------------------------------------------------------
Other Assets & Liabilities -9.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Commercial Banking 4.5%
- -------------------------------------------------------------------
Depository Credit Banking 22.3
- -------------------------------------------------------------------
Insurance Carriers 22.8
- -------------------------------------------------------------------
International Trade Financing (Foreign Banks) 24.1
- -------------------------------------------------------------------
Monetary Authorities -- Central Bank 4.1
- -------------------------------------------------------------------
Nondepository Credit Banking 3.6
- -------------------------------------------------------------------
Other Financial Investment Activities 4.5
- -------------------------------------------------------------------
Real Estate Credit (Mortgage Banking) 3.3
- -------------------------------------------------------------------
Securities and Commodity Exchanges 2.1
- -------------------------------------------------------------------
Securities, Commodities and Brokerage 6.7
- -------------------------------------------------------------------
Short-Term Investments 11.0
- -------------------------------------------------------------------
Other Assets & Liabilities -9.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
28
The Hartford Global Health Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(3) 5/1/00 - 10/31/06
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
------------------ ------------- -------------------------
5/1/00 9450 10000 10000
9620 9795 10391
11323 10036 11522
11503 9879 11132
12118 10493 11534
12922 9939 12043
10/00 13111 9897 12333
13463 9117 12507
13965 9162 12959
13168 9487 11763
13128 8622 11708
12321 8076 10664
12981 8703 11130
13591 8762 11375
13679 8549 11088
13601 8464 11392
13394 7935 11100
12961 7294 11014
10/01 13266 7434 11029
13989 8004 11619
14170 8074 11399
13768 7956 11094
13818 7803 11038
14190 8096 11176
13707 7605 10478
13285 7550 10274
12078 7012 9297
11756 6466 9093
11525 6508 9158
10831 5801 8669
10/02 11485 6311 9072
12272 6682 9325
11673 6290 9002
11498 6126 9007
11116 6034 8852
11230 6092 9121
12210 6594 9541
13407 6941 9986
13717 7029 10414
13769 7153 10455
13634 7293 10226
13944 7215 10241
10/03 14243 7623 10342
14591 7690 10529
15306 8093 11091
15877 8242 11417
15981 8356 11573
15804 8230 11239
15949 8101 11639
15866 8212 11624
16064 8372 11622
15203 8095 10895
15358 8127 11029
15524 8215 11000
10/04 15555 8341 10743
16062 8678 11018
17120 8973 11786
16488 8755 11428
16324 8939 11732
15910 8781 11742
16378 8614 12207
16607 8888 12432
16847 8901 12487
17698 9232 12919
18276 9147 12976
18570 9222 12891
10/05 17992 9068 12631
18469 9410 12902
19153 9414 13213
19768 9663 13372
19756 9689 13475
19802 9810 13324
19559 9941 12904
19223 9655 12675
19304 9668 12680
19791 9728 13211
20104 9959 13558
20208 10215 13693
10/06 20683 10548 13779
</Table>
<Table>
--- GLOBAL HEALTH FUND -- GOLDMAN SACHS HEALTH CARE INDEX
$9,450 starting value $10,000 starting value
$20,683 ending value $13,779 ending value
--- S&P 500 INDEX
$10,000 starting value
$10,548 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ---------------------------------------------------------------
Global Health A# 5/1/2000 14.96% 9.28% 12.80%
- ---------------------------------------------------------------
Global Health A## 5/1/2000 8.63% 8.06% 11.82%
- ---------------------------------------------------------------
Global Health B# 5/1/2000 14.10% 8.51% 11.98%
- ---------------------------------------------------------------
Global Health B## 5/1/2000 9.10% 8.22% 11.98%
- ---------------------------------------------------------------
Global Health C# 5/1/2000 14.17% 8.51% 11.99%
- ---------------------------------------------------------------
Global Health C## 5/1/2000 13.17% 8.51% 11.99%
- ---------------------------------------------------------------
Global Health I# 5/1/2000 15.09% 9.31% 12.82%
- ---------------------------------------------------------------
Global Health Y# 5/1/2000 15.56% 9.89% 13.42%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGEMENT TEAM
JOSEPH H. SCHWARTZ, CFA
Senior Vice President, Partner,
Global Industry Analyst
JEAN M. HYNES, CFA
Senior Vice President, Partner,
Global Industry Analyst
ANN C. GALLO
Senior Vice President, Partner,
Global Industry Analyst
KIRK J. MAYER, CFA
Vice President, Global Industry Analyst
ROBERT L. DERESIEWICZ
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Global Health Fund returned 14.96%, before
sales charges, for the twelve-month period ended October 31, 2006, outperforming
its benchmark, the Goldman Sachs Health Care Index, which returned 9.09% for the
same period. The Fund also outperformed the 8.41% return of the average fund in
the Lipper Health and Biotechnology peer group, a group of funds with investment
strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Health Care sector performed well during the period but lagged the broader
market, as represented by the S&P 500. The Fund's outperformance was driven by
superior security selection relative to the benchmark, particularly within
Pharmaceuticals and Biotechnology. Industry allocation decisions also positively
impacted relative performance.
The top relative and absolute performers came from the Pharmaceutical
sub-sector; Daiichi Sankyo, AstraZeneca and Shionogi. After the completion of
the Daiichi Pharmaceutical and Sankyo merger, investor confidence grew in the
combined entity's ability to grow earnings and its long-term prospects from
numerous synergies. In addition, Daiichi Sankyo's R&D day boosted enthusiasm for
its developmental projects in diabetes, cancer, and cardiovascular disease.
AstraZeneca benefited from strong sales of its cholesterol lowering drug
Crestor, as demand in the cholesterol market remains high. Shionogi shares
performed well from a profitable royalty stream off sales of Crestor. We held
all three stocks at the end of the period.
29
- --------------------------------------------------------------------------------
Aetna was the largest detractor of absolute and relative performance and we
eliminated the stock during the period. Aetna shares fell as the company
experienced pricing issues as well as an unanticipated increase in high acuity
inpatient claims. The company also faced increased competition in several
regions including the Northeast, Florida and the Mid-Atlantic. While our
Pharmaceutical holdings contributed strongly to overall performance, the Fund
did not own strong performers Merck or Pfizer, which detracted from relative
performance as did our holding in CV Therapeutics. Other detractors from
absolute performance included Boston Scientific and UnitedHealth Group.
WHAT IS THE OUTLOOK?
With the stock market reaching new heights in the face of brewing difficult
economic conditions, we expect a more subdued market lies ahead with the
healthcare stocks performing somewhat better than the overall market. We will
remain diversified and focused on the long-term while shifting selectively to
those areas that seemingly offer the most value. At the end of the period the
Fund was overweight in the Pharmaceuticals and Biotechnology sub-industries and
underweight in Managed Health Care and Health Care services.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Belgium 1.9%
- -------------------------------------------------------------------
Denmark 1.1
- -------------------------------------------------------------------
France 4.0
- -------------------------------------------------------------------
Germany 1.7
- -------------------------------------------------------------------
Ireland 1.4
- -------------------------------------------------------------------
Israel 0.7
- -------------------------------------------------------------------
Japan 14.7
- -------------------------------------------------------------------
United Kingdom 3.1
- -------------------------------------------------------------------
United States 68.9
- -------------------------------------------------------------------
Short-Term Investments 16.5
- -------------------------------------------------------------------
Other Assets & Liabilities -14.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Agencies, Brokerages, Other Insurance Activities 1.1%
- -------------------------------------------------------------------
Basic Chemical Manufacturing 0.7
- -------------------------------------------------------------------
Drugs & Druggists Sundries Wholesalers 6.5
- -------------------------------------------------------------------
Electrical Equipment Manufacturing 0.9
- -------------------------------------------------------------------
General Medical and Surgical Hospitals 1.9
- -------------------------------------------------------------------
Health and Personal Care Stores 1.4
- -------------------------------------------------------------------
Insurance Carriers 5.0
- -------------------------------------------------------------------
Medical Equipment & Supplies Manufacturing 5.4
- -------------------------------------------------------------------
Navigate, Measure, Control Instrument Manufacturing 6.1
- -------------------------------------------------------------------
Pharmaceutical & Medicine Manufacturing 57.7
- -------------------------------------------------------------------
Professional Service -- Computer System Design &
Related 1.0
- -------------------------------------------------------------------
Scientific Research & Development Services 9.8
- -------------------------------------------------------------------
Short-Term Investments 16.5
- -------------------------------------------------------------------
Other Assets & Liabilities -14.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
30
The Hartford Global Leaders Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(2) 9/30/98 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GLOBAL LEADERS FUND MSCI WORLD INDEX MSCI WORLD GROWTH INDEX
------------------- ---------------- -----------------------
9/30/98 9450 10000 10000
10/98 10697 10906 10871
11482 11556 11573
12319 12122 12419
12932 12389 12858
12572 12062 12348
13175 12566 12805
13476 13063 12784
13010 12587 12339
13876 13176 13099
14071 13138 12955
13993 13117 13115
13798 12991 13138
10/99 14695 13668 13999
15772 14055 14821
18193 15194 16518
17477 14326 15484
19457 14366 16023
19389 15361 16979
18467 14713 15840
17958 14342 14901
18765 14827 15813
18135 14412 15018
19149 14882 15552
18342 14093 14175
10/00 17288 13858 13581
16265 13019 12534
16871 13231 12299
16871 13488 12670
15320 12350 11055
14267 11541 10164
15370 12397 10987
15052 12243 10769
14764 11861 10394
14395 11705 10241
13598 11145 9612
12413 10165 8815
10/01 12782 10361 9191
13877 10975 9891
13947 11046 9941
13489 10712 9618
13389 10621 9645
13818 11114 9887
13349 10720 9467
13618 10745 9421
12762 10095 8879
11676 9245 8254
11556 9264 8254
10201 8247 7437
10/02 11168 8857 8017
12154 9337 8310
11088 8886 7992
10839 8617 7705
10580 8470 7624
10430 8447 7694
11596 9201 8247
12293 9731 8592
12582 9904 8715
12891 10106 8884
13250 10327 9064
12891 10392 9117
10/03 13907 11011 9661
14236 11181 9800
14953 11885 10272
15531 12078 10483
16069 12285 10612
16358 12208 10508
15730 11965 10302
15940 12073 10410
16477 12336 10553
15182 11936 10048
15093 11993 10020
15860 12224 10222
10/04 16428 12526 10474
17334 13190 11007
17693 13697 11423
17025 13391 11116
16627 13822 11403
16029 13560 11186
15820 13273 10947
16199 13519 11238
16348 13642 11293
16906 14122 11762
17235 14235 11870
17334 14609 12134
10/05 16737 14257 11877
17489 14740 12266
17999 15070 12535
19381 15746 13114
18876 15729 12983
19280 16082 13311
19865 16579 13623
18755 16028 13107
18866 16029 13088
18302 16133 12983
18786 16560 13331
19118 16762 13451
10/06 19512 17381 13931
</Table>
<Table>
- --- GLOBAL LEADERS FUND --- MSCI WORLD INDEX -- MSCI WORLD GROWTH
$9,450 starting $10,000 starting INDEX
value value $10,000 starting value
$19,512 ending value $17,381 ending value $13,931 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.
MSCI WORLD GROWTH INDEX is a broad-based unmanaged market
capitalization-weighted total return index which measures the performance of
growth securities in 23 developed-country global equity markets including the
United States, Canada, Europe, Australia, New Zealand and the Far East.
The fund has changed its benchmark from the Morgan Stanley Capital International
World Index to the Morgan Stanley Capital International World Growth Index
because the fund's investment manager believes that the Morgan Stanley Capital
International World Growth Index is better suited to the investment strategy of
the fund.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEARS INCEPTION
- -----------------------------------------------------------------
Global Leaders A# 9/30/1998 16.58% 8.82% 9.37%
- -----------------------------------------------------------------
Global Leaders A## 9/30/1998 10.17% 7.60% 8.61%
- -----------------------------------------------------------------
Global Leaders B# 9/30/1998 15.80% 8.02% NA*
- -----------------------------------------------------------------
Global Leaders B## 9/30/1998 10.80% 7.73% NA*
- -----------------------------------------------------------------
Global Leaders C# 9/30/1998 15.72% 8.10% 8.63%
- -----------------------------------------------------------------
Global Leaders C## 9/30/1998 14.72% 8.10% 8.63%
- -----------------------------------------------------------------
Global Leaders Y# 9/30/1998 17.25% 9.45% 9.97%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* Inception returns are not applicable for Classes B because
after 8 years Class B converts to Class A.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGEMENT
ANDREW S. OFFIT
Senior Vice President, Partner
JEAN-MARC BERTEAUX
Vice President
MATTHEW D. HUDSON
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Global Leaders Fund returned 16.58%, before
sales charges, for the twelve-month period ended October 31, 2006, versus
returns of 17.29% for the MSCI World Growth Index and 21.91% for the MSCI World
Index. The Fund underperformed the 18.44% return of the average fund in the
Lipper Global Large Cap Growth Funds peer group, a group of funds with
investment strategies similar to those of the fund.
WHY DID THE FUND PERFORM THIS WAY?
Global equities rose with moderating inflation expectations in recent months,
helping to offset data suggesting a slowing global economy. The long-awaited
pause in the Federal Reserve's monetary tightening cycle finally occurred,
calming investor fears that the Fed would over tighten and tip the US economy
into recession. The drop in oil and gas prices from record highs also bolstered
optimism. Within the MSCI World Growth Index, Utilities, Materials, and
Industrials led all sectors, while Health Care and Energy performed well but
lagged the index returns for the twelve month period ended October 31, 2006.
The Fund's relative performance (i.e. performance of the Fund as measured
against the benchmark) was driven primarily by stock selection. Performance was
hurt by our holdings in Rakuten, SanDisk, and Electronic Arts. Japan's
"Amazon.com," Rakuten, was the fund's largest detractor on both an absolute and
relative basis. Despite no fundamental disappointments within the online
retailer's core business, the stock was negatively impacted by issues in its
peripheral business, rumors of its president being arrested, and a meltdown in
JASDAQ stocks as retail investors fled "new Japan" companies in light of
Livedoor and Murakami Fund scandals. In addition, Australian-based materials
holding BHP Billiton declined over concerns of decelerating global growth
eroding demand for raw materials, leading to lower profits. While sector
allocation is a fallout of the Fund's bottom-up investment process, our
underweight positioning (i.e. the Fund's sector
31
- --------------------------------------------------------------------------------
position was less than the benchmark position) in less traditional growth
sectors, which included Materials, Consumer Staples, and Industrials, also hurt
performance.
The leading contributors to relative performance were Las Vegas Sands (Consumer
Services), Carphone Warehouse (Retailing), and Softbank Corp (Telecommunication
Services). Las Vegas Sands benefited from a strong first quarter driven by its
core Las Vegas properties and increased business at the Sands Macau. Carphone
Warehouse contributed meaningfully to the Fund's return on news of stronger than
expected earnings driven by the UK mobile phone retailer's dominant position in
the fast growing market for handsets with increased functionality. Shares of
Softbank, Japan's second-biggest provider of high-speed Internet services,
gained after the company reported favorable quarterly results earlier in the
year. Relative performance during the period was also helped by strong selection
efforts in the Financials sector, led by several global investment banks,
including Credit Suisse, Goldman Sachs, and UBS. Finally, our overweight and
selection in the Telecommunication Services sector contributed positively as
Mexican wireless provider America Movil and tower operator American Tower
performed well. America Movil reported strong earnings and is benefiting from
robust subscriber growth in Latin America, while cell phone companies' increased
spending to support subscriber growth and enhance coverage translated into
strong earnings at American Tower. On an absolute basis Google was also a top
contributor. Internet search-and-content company Google continues to take market
share and remains the clear leader in the search-engine market.
WHAT IS THE OUTLOOK?
As usual, the Fund is positioned for growth. The Fund's overweight in
Information Technology and Consumer Discretionary sectors, some of the strongest
areas of growth, are a result of our bottom-up research and stock analysis. This
is true to our process, which has remained unchanged. Our focus remains on stock
selections that result from intense bottom-up research, diligently meeting with
the management of leading global companies, and leveraging the strong research
capabilities of our firm. We have strong conviction in our holdings and process
and are optimistic about the Fund's positioning.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Austria 1.2%
- -------------------------------------------------------------------
Belgium 0.8
- -------------------------------------------------------------------
Canada 2.5
- -------------------------------------------------------------------
Cayman Islands 0.6
- -------------------------------------------------------------------
Dutch Antilles 1.8
- -------------------------------------------------------------------
France 6.0
- -------------------------------------------------------------------
Germany 1.6
- -------------------------------------------------------------------
Ireland 1.8
- -------------------------------------------------------------------
Japan 12.0
- -------------------------------------------------------------------
Mexico 2.8
- -------------------------------------------------------------------
Netherlands 1.3
- -------------------------------------------------------------------
South Korea 1.8
- -------------------------------------------------------------------
Switzerland 3.3
- -------------------------------------------------------------------
Taiwan 1.9
- -------------------------------------------------------------------
United Kingdom 12.4
- -------------------------------------------------------------------
United States 45.6
- -------------------------------------------------------------------
Short-Term Investments 13.5
- -------------------------------------------------------------------
Other Assets & Liabilities -10.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
As of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.5%
- -------------------------------------------------------------------
Capital Goods 1.6
- -------------------------------------------------------------------
Consumer Cyclical 10.6
- -------------------------------------------------------------------
Consumer Staples 5.9
- -------------------------------------------------------------------
Energy 2.3
- -------------------------------------------------------------------
Finance 18.7
- -------------------------------------------------------------------
Health Care 11.6
- -------------------------------------------------------------------
Services 10.2
- -------------------------------------------------------------------
Technology 33.2
- -------------------------------------------------------------------
Transportation 0.8
- -------------------------------------------------------------------
Short-Term Investments 13.5
- -------------------------------------------------------------------
Other Assets & Liabilities -10.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
32
The Hartford Global Technology Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 5/1/00 - 10/31/06
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 8898 9795
9812 9992 10036
9181 9527 9879
10426 10766 10493
8930 9022 9939
10/00 8103 8341 9897
6146 6431 9117
5930 5880 9162
6868 6845 9487
5367 4947 8622
4626 4260 8076
5480 5073 8703
5217 4871 8762
5301 4884 8549
4954 4536 8464
4194 3946 7935
3265 3148 7294
10/01 3763 3653 7434
4429 4276 8004
4588 4200 8074
4541 4196 7956
3978 3635 7803
4279 3894 8096
3763 3417 7605
3547 3277 7550
3181 2814 7012
2862 2529 6466
2824 2497 6508
2308 2051 5801
10/02 2796 2499 6311
3284 2936 6682
2824 2509 6290
2871 2487 6126
2862 2525 6034
2852 2496 6092
3162 2756 6594
3509 3064 6941
3547 3056 7029
3744 3232 7153
3988 3455 7293
3941 3405 7215
10/03 4391 3737 7623
4476 3809 7690
4523 3868 8093
4701 4050 8242
4645 3935 8356
4513 3827 8230
4204 3604 8101
4485 3804 8212
4579 3897 8372
4063 3528 8095
3791 3352 8127
3960 3468 8215
10/04 4147 3652 8341
4401 3858 8678
4532 3981 8973
4269 3718 8755
4269 3725 8939
4082 3635 8781
4016 3449 8614
4382 3763 8888
4372 3690 8901
4654 3938 9232
4682 3908 9147
4720 3948 9222
10/05 4663 3878 9068
4992 4137 9410
5010 4062 9414
5433 4213 9663
5254 4148 9689
5367 4241 9810
5433 4213 9941
5038 3904 9655
4907 3850 9668
4719 3685 9728
5029 3974 9959
5189 4133 10215
10/06 5320 4298 10548
</Table>
<Table>
--- GLOBAL TECHNOLOGY FUND --- GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX
$9,450 starting value $10,000 starting value
$5,320 ending value $4,298 ending value
-- S&P 500 INDEX
$10,000 starting value
$10,548 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------------
Global Tech A# 5/1/2000 14.08% 7.17% -8.45%
- -----------------------------------------------------------------
Global Tech A## 5/1/2000 7.81% 5.96% -9.25%
- -----------------------------------------------------------------
Global Tech B# 5/1/2000 13.42% 6.44% -9.11%
- -----------------------------------------------------------------
Global Tech B## 5/1/2000 8.42% 6.12% -9.11%
- -----------------------------------------------------------------
Global Tech C# 5/1/2000 13.21% 6.34% -9.14%
- -----------------------------------------------------------------
Global Tech C## 5/1/2000 12.21% 6.34% -9.14%
- -----------------------------------------------------------------
Global Tech Y# 5/1/2000 14.34% 7.57% -8.09%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGEMENT TEAM
SCOTT E. SIMPSON
Senior Vice President, Partner,
Global Industry Analyst
JOHN F. AVERILL, CFA
Senior Vice President, Partner, Global Industry Analyst
ERIC STROMQUIST
Senior Vice President, Partner, Global Industry Analyst
BRUCE L. GLAZER
Senior Vice President, Partner, Global Industry Analyst
ANITA M. KILLIAN, CFA
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Global Technology Fund returned 14.08%,
before sales charges, for the twelve-month period ended October 31, 2006,
outperforming its benchmark, the Goldman Sachs Technology Composite Index, which
returned 10.83% for the same period. The Fund also outperformed the 10.21%
return of the average fund in the Lipper Science and Technology Funds peer
group, a group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Technology stocks hit a rough patch earlier in the year but rebounded to end the
period with double-digit returns. The Technology sector lagged the broader
market during the period, as measured by the MSCI World Index.
Outperformance during the period was the result of superior security selection
relative to the Goldman Sachs Technology Composite Index. Selection was
strongest among Electronic Manufacturing Services, Communications Equipment and
Semiconductor Equipment. Top contributors to relative performance during the
period included Hon Hai Precision, Intel, Nokia and Samsung. Hon Hai, a
manufacturer of electronics and communications products, benefited from the high
demand for consumer electronics, particularly mobile phones. Similarly, Nokia
benefited from mobile phone growth outside of the US as it gained share in
emerging markets, Asia, and Latin America. We eliminated Nokia at the end of the
period as it reached our target price. The Fund benefited from an underweight in
Intel, which was down throughout much of the period. We initiated a position in
Intel at the end of the period in anticipation of its new product cycle. Our
33
- --------------------------------------------------------------------------------
position in Samsung (not held in the benchmark) also proved beneficial.
Hewlett-Packard and Google, both up double-digits for the period, contributed
strongly to absolute performance.
The Fund's Systems Software and Computer Hardware holdings detracted most from
benchmark-relative performance during the period. The top detractors of
benchmark-relative performance were Oracle, Microsoft, and Red Hat. Our
underweight position in Oracle, which performed well during the period,
detracted most from relative performance. Microsoft's shares declined on news
that the company planned to ramp spending aggressively to more effectively
compete with Google. The shares have recovered recently as we are approaching
the delivery of Windows Vista. Red Hat shares fell as the company continued to
battle with Oracle for share in open source software solutions. We continued to
hold all three stocks at the end of the period.
WHAT IS THE OUTLOOK?
We expect a slowing economy and typically find that the computer services
sub-industry does quite well in this environment. We currently observe healthy
fundamentals and attractive valuation levels. On the internet front, online
advertising spending continues to be very robust in general (both branded and
search).
We believe the cell phone industry will likely remain healthy, although we do
anticipate some growth deceleration over the next few quarters. We continue to
favor market share gainers and companies able to launch attractive new products
on a timely basis.
As for the semiconductor industry, we believe that the worst is over but we
don't expect the group to outperform based on several months of decelerating
growth rates. We like a number of stocks in that space but continue to look for
improved fundamentals to change our views on the group. In the hardware
industry, we apply careful stock picking methodology as we do not embrace the
group as a whole.
At the end of the period the Fund was most overweight the Data Processing &
Outsourced Services and Home Entertainment Software sub-industries, and most
underweight Systems Software and Computer Hardware.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Canada 2.7%
- -------------------------------------------------------------------
France 1.7
- -------------------------------------------------------------------
Japan 1.2
- -------------------------------------------------------------------
Luxembourg 0.8
- -------------------------------------------------------------------
South Korea 3.0
- -------------------------------------------------------------------
Sweden 1.9
- -------------------------------------------------------------------
Taiwan 4.1
- -------------------------------------------------------------------
United States 82.6
- -------------------------------------------------------------------
Short-Term Investments 4.0
- -------------------------------------------------------------------
Other Assets & Liabilities -2.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Activities Related to Credit Banking 1.7%
- -------------------------------------------------------------------
Audio and Video Equipment Manufacturing 1.2
- -------------------------------------------------------------------
Business Support Services 1.2
- -------------------------------------------------------------------
Communications Equipment Manufacturing 6.9
- -------------------------------------------------------------------
Computer and Peripheral Manufacturing 19.3
- -------------------------------------------------------------------
Data Processing Services 1.8
- -------------------------------------------------------------------
Electrical Equipment Manufacturing -- Component
Other 3.3
- -------------------------------------------------------------------
Employment Services 2.4
- -------------------------------------------------------------------
Internet Providers & Web Search Portals 0.8
- -------------------------------------------------------------------
Machinery Manufacturing -- Industrial Machinery 6.6
- -------------------------------------------------------------------
Management, Scientific, and Technical Consulting
Services 3.7
- -------------------------------------------------------------------
Navigate, Measure, Control Instrument Manufacturing 1.5
- -------------------------------------------------------------------
On-Line Information Services 5.3
- -------------------------------------------------------------------
Other Investment Pools and Funds 0.4
- -------------------------------------------------------------------
Other Services -- Other Personal Services 0.8
- -------------------------------------------------------------------
Professional Services -- Computer System Design &
Related 5.5
- -------------------------------------------------------------------
Retail -- Electronic Shopping and Mail-Order Houses 2.5
- -------------------------------------------------------------------
Semiconductor, Electronic Component Manufacturing 17.9
- -------------------------------------------------------------------
Software Publishers 13.1
- -------------------------------------------------------------------
Wholesalers -- Electrical Goods 1.1
- -------------------------------------------------------------------
Wireless Communications Services 1.0
- -------------------------------------------------------------------
Short-Term Investments 4.0
- -------------------------------------------------------------------
Other Assets & Liabilities -2.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
34
The Hartford Growth Allocation Fund
(advised by Hartford Investment Financial Services, LLC)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(3) 5/28/04 - 10/31/06
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
9450 10000 10000
6/04 9611 10194 10057
9337 9857 10156
8/04 9346 9897 10350
9601 10004 10378
10/04 9790 10157 10465
10178 10567 10382
12/04 10493 10927 10477
10237 10661 10543
2/05 10408 10885 10481
10199 10692 10427
4/05 10019 10490 10568
10313 10823 10682
6/05 10474 10838 10741
10787 11241 10643
8/05 10844 11139 10779
10939 11229 10668
10/05 10683 11042 10584
11071 11459 10631
12/05 11258 11463 10732
11737 11766 10732
2/06 11670 11798 10768
11833 11945 10662
4/06 12015 12105 10643
11584 11757 10631
6/06 11545 11773 10654
11430 11846 10798
8/06 11660 12127 10963
11804 12439 11060
10/06 12140 12844 11133
</Table>
<Table>
--- GROWTH ALLOCATION FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
$9,450 starting value BOND INDEX $10,000 starting value
$12,140 ending value $10,000 starting value $12,844 ending value
$11,133 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.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------------
Growth Allocation A# 5/28/2004 13.64% 10.87%
- ----------------------------------------------------------
Growth Allocation A## 5/28/2004 7.39% 8.32%
- ----------------------------------------------------------
Growth Allocation B# 5/28/2004 12.96% 10.19%
- ----------------------------------------------------------
Growth Allocation B## 5/28/2004 7.96% 9.11%
- ----------------------------------------------------------
Growth Allocation C# 5/28/2004 12.96% 10.19%
- ----------------------------------------------------------
Growth Allocation C## 5/28/2004 11.96% 10.19%
- ----------------------------------------------------------
Growth Allocation I# 5/28/2004 13.73% 10.91%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and I shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Growth Allocation Fund (Class A) gained 13.64%, before sales
charges, for the year ended October 31, 2006, versus the returns of 12.47% for
the Lipper Mixed-Asset Target Allocation Growth Funds peer group, 5.19% for the
Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening that began in the summer of 2004. By June of
2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17
consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's
tightening, short- and intermediate-term bond yields rose through the first half
of 2006. Thus, as interest rates rose, the principal value of these short- and
intermediate-term bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted (i.e. bonds with longer term maturities
having a lower interest rate than bonds with shorter maturities) through most of
the fiscal year. However, by August of 2006, the Fed became concerned that
economic growth was slowing, in part due to the retreating housing market. The
Fed found itself in a conundrum as to whether it should continue raising
interest rates to restrain inflation, or to pause in the tightening cycle to
assess prospects for further economic growth. Since changes in the rate of
inflation often lag changes in economic conditions, the Fed left rates unchanged
at its two most recent meetings while it waited for more data before taking
action. Sensing that the Fed would continue easing monetary policy, the equity
and bond markets rallied in the last months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by favorable currency movements and strengthening foreign economies, the
international and emerging market equity indices
35
- --------------------------------------------------------------------------------
outperformed the major domestic indices for the year. Fortunately, the bond
rally over the last few months offset the negative impact of rising interest
rates earlier in the year, allowing the major bond sectors to finish with
positive returns for the period. During much of the year, fixed income investors
were unable to achieve higher levels of yield by going out longer on the yield
curve (i.e. purchasing bonds with a longer maturity date). Thus, many bond
investors shifted to lower quality and foreign issues as they sought greater
yield. During the period, the traditionally "riskier" high yield and emerging
markets bonds were among the strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component emphasizes
investment grade securities. The Fund did, however, benefit modestly from its
small exposure to "spread" sectors and higher yielding securities. For the year,
the Fund responded to changes in interest rates that was roughly in-line with
the benchmark. Thus, as interest rates declined during most of the fiscal year,
the Fund's fixed income component contributed to absolute performance. With the
Dow Jones Industrial reaching its all-time high late in the period, the Fund
also generated positive gains from its allocation to equities. The Fund is
constructed such that it has exposure to the various styles of equities,
including international, mid-cap and small cap stocks. This diversification is
expected to enhance the long-term return and risk characteristics of the Fund.
The added diversification benefited the Fund through most of the year. However,
since domestic, large cap stocks dominated the stock rally late in the period,
the Fund's exposure to foreign and smaller capitalization equities partially
offset some of their earlier contributions. Although the Fund's asset
allocations were positive contributors to performance, selection at the
individual fund level and within the underlying funds appeared to detract from
relative return. The Fund typically uses cash flows to implement investment
allocation changes to the Fund, when appropriate.
However, a hard asset rebalance (i.e. a fund rebalancing to move the underlying
fund investments to their target allocation percentages) was performed in
February due to the strong performance by certain investment sectors.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Fed is still concerned with inflation and that
policy decisions will favor price stability as long as economic growth does not
decline dramatically. In the coming months we will be closely watching the
economy to determine the impact of a slower housing market on the U.S. consumer
and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 13.2%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 13.1
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 0.2
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 6.8
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 2.5
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 3.8
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 7.2
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 3.3
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 2.5
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 3.9
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 1.6
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 1.2
- -------------------------------------------------------------------
Hartford Select SmallCap Growth Fund, Class Y 0.2
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 4.2
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 6.3
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 8.1
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 8.7
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 4.7
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 6.7
- -------------------------------------------------------------------
Other Assets and Liabilities 0.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
36
The Hartford Growth Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GROWTH FUND RUSSELL 1000 GROWTH INDEX
----------- -------------------------
10/31/96 9450 10000
9961 10751
9640 10540
10073 11280
9841 11203
9323 10597
9671 11301
10587 12116
10998 12601
11998 13716
11672 12913
12217 13548
10/97 11842 13047
11762 13602
11934 13754
12077 14165
12941 15231
13656 15838
13704 16057
13481 15601
14266 16557
14022 16447
11855 13979
12681 15053
10/98 13314 16263
14088 17500
15471 19078
16209 20198
15607 19275
16409 20290
16653 20316
16309 19692
17054 21071
16775 20402
16345 20735
16051 20299
10/99 17155 21832
18006 23010
20835 25403
20152 24212
22280 25396
22144 27214
20234 25919
19616 24614
20353 26479
20034 25375
21689 27673
21398 25055
10/00 20544 23869
18630 20351
19804 19707
18899 21068
18016 17492
16842 15588
18824 17560
18878 17301
18296 16901
17736 16478
16250 15131
14818 13620
10/01 15324 14335
16750 15712
16912 15682
16406 15405
15942 14766
16427 15277
15113 14030
14801 13690
13454 12424
12560 11741
12722 11776
11709 10554
10/02 12819 11523
13551 12149
12722 11309
12442 11035
12226 10984
12635 11189
13702 12016
14370 12616
14704 12789
14941 13108
15253 13434
15210 13290
10/03 16363 14036
16578 14183
16869 14674
17418 14973
17612 15069
17537 14789
17310 14617
18032 14890
18409 15076
17009 14223
16600 14153
17310 14288
10/04 17440 14511
18065 15010
18851 15598
18043 15078
17828 15239
17407 14961
17300 14676
18323 15386
18517 15329
18883 16079
18743 15871
19034 15945
10/05 18657 15790
19497 16471
19626 16419
20284 16707
19831 16681
20057 16927
20553 16904
19109 16331
19045 16267
18485 15957
19002 16455
19454 16907
10/06 19874 17501
</Table>
<Table>
--- GROWTH FUND --- RUSSELL 1000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$19,874 ending value $17,501 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.
You cannot invest directly in an 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 the investment adviser, without which performance
would have been lower. For information on current expense
waivers/reimbursements, please see the prospectus.
PORTFOLIO MANAGEMENT
ANDREW J. SHILLING, CFA
Senior Vice President, Partner
JOHN A. BOSELLI, CFA
Senior Vice President, Partner
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ----------------------------------------------------------------
Growth A# 6/8/1949 6.52% 5.33% 7.71% 10.99%
- ----------------------------------------------------------------
Growth A## 6/8/1949 0.67% 4.15% 7.11% 10.88%
- ----------------------------------------------------------------
Growth B# 11/14/1994 5.66% 4.57% NA* NA*
- ----------------------------------------------------------------
Growth B## 11/14/1994 0.66% 4.23% NA* NA*
- ----------------------------------------------------------------
Growth C# 11/14/1994 5.78% 4.62% 6.95% 8.35%
- ----------------------------------------------------------------
Growth C## 11/14/1994 4.78% 4.62% 6.95% 8.35%
- ----------------------------------------------------------------
Growth H# 11/14/1994 5.99% 4.80% NA* NA*
- ----------------------------------------------------------------
Growth H## 11/14/1994 1.99% 4.47% NA* NA*
- ----------------------------------------------------------------
Growth I# 2/19/2002 6.58% NA NA 5.17%
- ----------------------------------------------------------------
Growth L# 6/8/1949 6.80% 5.61% 7.85% 11.02%
- ----------------------------------------------------------------
Growth L## 6/8/1949 1.73% 4.58% 7.33% 10.92%
- ----------------------------------------------------------------
Growth M# 11/14/1994 6.00% 4.81% NA* NA*
- ----------------------------------------------------------------
Growth M## 11/14/1994 2.00% 4.48% NA* NA*
- ----------------------------------------------------------------
Growth N# 11/14/1994 6.00% 4.81% 7.05% 8.44%
- ----------------------------------------------------------------
Growth N## 11/14/1994 5.00% 4.81% 7.05% 8.44%
- ----------------------------------------------------------------
Growth Y# 2/19/2002 7.03% NA NA 5.15%
- ----------------------------------------------------------------
</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) Classes A, B and C were offered beginning on February 19,
2002. Performance prior to that date is that of the fund's
Classes L, M and N shares, respectively, which have lower
operating expenses. Performance prior to February 19, 2002
would have been lower if Classes A, B and C shares expenses
were applied during that period. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Classes A and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, H, I, L, M,
N and Y shares will vary from results seen above due to
differences in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Growth Fund returned 6.52%, before sales
charges, for the twelve-month period ended October 31, 2006, underperforming its
benchmark, the Russell 1000 Growth Index, which returned 10.84% for the same
period. The Fund also underperformed the 7.42% return of the average fund in the
Large-Cap Growth Funds peer group, a group of funds with investment strategies
similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The equity markets closed the one year period with a gain in October. For the
year ended October 31, 2006, US large cap equities performed well (+16.3% as
measured by the S&P 500 Index) but were solidly outpaced by small cap shares
(+20.0%). From a style perspective, returns of growth and value stocks showed
little if any deviation from the broader market, rising 10.8% and 16.3%,
respectively. Small cap (+20.0%) shares noticeably outperformed blue chips while
mid-caps (+13.4%) performed well.
Poor security selection was the main source of underperformance for the period
predominately in the Health Care and Information Technology sectors. The top
three detractors were Marvell Technology, Electronic Arts, and Medtronic. Global
semiconductor company Marvell Technology declined on weak earnings and lowered
guidance. We reduced our position due to decelerating growth and lowered
expectations in the drive business; however we feel that the growth drivers for
2007 and beyond remain intact. We eliminated our position in Electronic Arts
after video game stocks fell as consumers delayed purchases in anticipation of
next generation console launches. Medical devices company Medtronic is trading
at an inexpensive valuation due to concerns about its
37
- --------------------------------------------------------------------------------
Implantable Cardioverter Defibrillator (ICD) business. We believe the company
will benefit from improvements in its ICD business as well as from its strong
product pipeline in other segments of its business. Sector allocation, a result
of our bottom up stock picking, also detracted slightly from fund performance.
Strong stock selection within the Financials and Energy sectors contributed
positively the Fund's fiscal year returns. The top three contributors to perform
were AstraZeneca, Network Appliance, and Chicago Mercantile. Non-US
pharmaceutical firm AstraZeneca outperformed during the period showing solid
growth from existing drugs. Shares also benefited from an improving product
pipeline and recent takeover speculation. We expect pipeline success, solid
growth from Crestor and Seroquel, and stock buybacks/dividends to spur price
appreciation. Data management firm Network Appliance rose in conjunction with
strong revenue growth and a broadening product lineup. Shares of the world's
largest trading market, Chicago Mercantile Exchange, continued their ascent
alongside rising trading volumes and expansion of its electronic trading
platform, Globex.
WHAT IS THE OUTLOOK?
Our investment approach is very much a "bottom-up" process; we pick one stock at
a time based upon the attractiveness of each company's valuation and
fundamentals. Greater-than-benchmark exposure to Financials includes top-10
position weights in world class wealth manager UBS and asset manager Franklin
Resources. Exposure was reduced by swapping Legg Mason and Countrywide Financial
for State Street. Health Care exposure remains above benchmark and tilted toward
pharmaceuticals, with AstraZeneca and Schering-Plough among the Portfolio's top
active positions. We have neutralized exposure to the Energy sector, eliminating
Peabody Energy and Petro-Canada and reducing positions in Halliburton and
Cameco. Consumer-related sectors remain relatively unattractive. We did,
however, reduce the Fund's underweight to Consumer Staples via a new position in
PepsiCo.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.4%
- -------------------------------------------------------------------
Capital Goods 4.0
- -------------------------------------------------------------------
Consumer Cyclical 3.3
- -------------------------------------------------------------------
Consumer Staples 0.7
- -------------------------------------------------------------------
Energy 1.5
- -------------------------------------------------------------------
Finance 19.5
- -------------------------------------------------------------------
Health Care 13.1
- -------------------------------------------------------------------
Services 16.1
- -------------------------------------------------------------------
Technology 33.4
- -------------------------------------------------------------------
Transportation 3.1
- -------------------------------------------------------------------
Utilities 2.0
- -------------------------------------------------------------------
Short-Term Investments 3.8
- -------------------------------------------------------------------
Other Assets & Liabilities -2.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
38
The Hartford Growth Opportunities Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS SHORT- AND LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GROWTH OPPORTUNITIES FUND RUSSELL 3000 GROWTH INDEX
------------------------- -------------------------
10/31/96 9450 10000
9898 10705
9532 10535
10010 11227
9452 11095
8795 10478
8880 11103
9866 11974
10274 12447
11314 13503
10959 12824
11540 13496
10/97 11032 12964
10941 13426
10841 13562
10677 13911
11628 14974
12220 15574
12295 15778
11999 15265
12641 16131
12006 15914
9798 13420
10565 14476
10/98 11062 15607
11480 16796
12898 18311
13299 19368
12270 18418
12916 19365
12925 19507
12582 18954
13499 20257
13473 19614
13709 19858
13771 19494
10/99 14764 20899
16480 22098
19821 24505
19557 23422
25305 24885
22947 26293
20991 24940
19705 23621
22700 25495
21986 24354
24975 26582
24997 24148
10/00 22826 22948
18439 19513
20509 19012
20146 20341
17550 16935
15602 15114
17074 17021
16925 16818
16889 16494
16491 16012
15374 14723
12999 13192
10/01 13661 13921
15033 15246
15565 15281
15399 14992
14472 14346
15234 14892
14480 13738
14293 13371
12690 12141
11447 11391
11174 11423
10283 10260
10/02 11002 11174
12000 11812
11138 10996
10987 10726
10836 10662
11138 10858
12151 11675
13093 12305
13474 12478
13603 12833
14214 13179
14027 13023
10/03 15270 13784
15780 13951
15996 14401
16484 14730
16722 14815
16844 14566
16341 14353
16966 14622
17462 14827
15981 13948
15766 13861
16614 14042
10/04 16880 14272
17677 14822
18575 15399
17922 14869
17763 15032
17433 14733
16980 14396
18072 15119
18770 15109
19862 15875
19948 15668
20394 15745
10/05 20005 15554
20875 16243
21478 16195
22877 16590
22552 16558
22970 16854
23356 16829
22049 16200
21763 16142
21114 15789
21609 16279
22011 16698
10/06 22675 17326
</Table>
<Table>
--- GROWTH OPPORTUNITIES FUND --- RUSSELL 3000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$22,675 ending value $17,326 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.
You cannot invest directly in an 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 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
MARIO E. ABULARACH, CFA
Vice President
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ----------------------------------------------------------------------
Growth Opp A# 3/31/1963 13.35% 10.66% 9.14% 12.90%
- ----------------------------------------------------------------------
Growth Opp A## 3/31/1963 7.12% 9.42% 8.53% 12.75%
- ----------------------------------------------------------------------
Growth Opp B# 11/14/1994 12.36% 9.87% NA* NA*
- ----------------------------------------------------------------------
Growth Opp B## 11/14/1994 7.36% 9.60% NA* NA*
- ----------------------------------------------------------------------
Growth Opp C# 11/14/1994 12.40% 9.87% 8.35% 10.21%
- ----------------------------------------------------------------------
Growth Opp C## 11/14/1994 11.40% 9.87% 8.35% 10.21%
- ----------------------------------------------------------------------
Growth Opp H# 11/14/1994 12.62% 10.11% NA* NA*
- ----------------------------------------------------------------------
Growth Opp H## 11/14/1994 8.62% 9.84% NA* NA*
- ----------------------------------------------------------------------
Growth Opp I# 2/19/2002 13.39% NA NA 10.44%
- ----------------------------------------------------------------------
Growth Opp L# 3/31/1963 13.45% 10.94% 9.28% 12.93%
- ----------------------------------------------------------------------
Growth Opp L## 3/31/1963 8.06% 9.87% 8.75% 12.81%
- ----------------------------------------------------------------------
Growth Opp M# 11/14/1994 12.64% 10.12% NA* NA*
- ----------------------------------------------------------------------
Growth Opp M## 11/14/1994 8.64% 9.84% NA* NA*
- ----------------------------------------------------------------------
Growth Opp N# 11/14/1994 12.64% 10.10% 8.46% 10.31%
- ----------------------------------------------------------------------
Growth Opp N## 11/14/1994 11.64% 10.10% 8.46% 10.31%
- ----------------------------------------------------------------------
Growth Opp Y# 2/19/2002 13.76% NA NA 10.33%
- ----------------------------------------------------------------------
Growth Opp Z# 3/1/1996 13.77% 11.29% 9.60% 10.09%
- ----------------------------------------------------------------------
</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) Classes A, B and C were offered beginning on February 19,
2002. Performance prior to that date is that of the fund's
Classes L, M and N shares, respectively, which have lower
operating expenses. Performance prior to February 19, 2002
would have been lower if Classes A, B and C shares expenses
were applied during that period. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Classes A and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, H, I, L, M,
N, Y and Z shares will vary from results seen above due to
differences in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Growth Opportunities Fund Class A shares returned 13.35%, before
sales charges, for the twelve-month period ended October 31, 2006, outperforming
the Russell 3000 Growth Index, which returned 11.39% for the same period. The
Fund also outperformed the 10.39% return of the average fund in the Lipper
Multi-Cap Growth Funds peer group, a group of funds with investment strategies
similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
As measured by the Russell 3000 Growth Index, equity markets ended broadly
higher for the fourth fiscal year in a row. Three of the last four quarters were
positive, with the April to July period showing the only significant decline as
investors moved away from stocks in favor of less risky assets. Every sector in
the benchmark posted positive returns for the period, led by a disparate group
of sectors: Utilities (+29%), Telecommunication Services (+25%), and Materials
(+18%). The laggards in this environment were Health Care (+7%), Technology
(+9%), and Energy (+10%). These positive returns took place against a backdrop
of a weakening housing market, declining energy prices, and continued turmoil in
Iraq.
The Fund outperformed by maintaining its focus on stock selection. Positions in
Health Care and Technology stocks were most additive to returns. Pharmaceutical
company Shionogi and diagnostic test provider Digene led results in Health Care.
Shionogi shares advanced as the company's cholesterol fighting drug Crestor beat
growth expectations. Digene rose on strong sales of its test to detect HPV, a
virus that is a known causative agent in cervical cancer. In Technology, Network
Appliance benefited from a healthy storage spending environment where sales of
the company's mid-range storage solution, FAS3000, remained strong. Avoiding
benchmark heavyweights Intel and Dell, which
39
- --------------------------------------------------------------------------------
performed poorly during the period, also helped to boost relative performance.
Other significant contributors included Melco International and Gol Linhas.
Shares in Hong Kong-based conglomerate Melco International were up on news of a
deal that would positively impact the company's plans to open its first casino
in Macau. We sold the stock during the period due to its strong performance.
Low-cost, low-fare Brazilian airline Gol Linhas performed well as competitor
Varig amassed debt and ceded market share. Aggressive pricing, expanding routes,
and rising load factors contributed to higher revenues and profits. We believe
Gol's superior competitive positioning, continued route expansion, and Varig's
demise should support attractive fundamentals going forward.
The Fund's results in Consumer Discretionary and Financials stocks detracted
from relative performance. Sector weightings, the result of bottom-up stock
selection decisions, were also negative. In the Consumer Discretionary sector,
shares of satellite radio providers XM Satellite and Sirius declined on concerns
of rising subscriber acquisition costs. We have eliminated our positions in the
stocks. Among Financials stocks, a position in online real estate information
company Move Inc. fell in concert with a softening housing market. Other
significant detractors from relative and absolute performance included Marvell
Technology and St. Jude Medical. Weakness in the disk drive industry led to an
earnings miss at Marvell, while St. Jude Medical fell on overall weakness in the
implantable cardiac defibrillator market. We eliminated our positions in both
stocks.
WHAT IS THE OUTLOOK?
We maintain our expectations for stable, albeit moderate global growth over the
coming years. We expect a slowdown in economic activity and easing inflationary
pressures that should keep the global central banks on "hold" over the next
year.
We continue to focus our efforts on picking stocks one-at-a-time based on
detailed fundamental research. Currently our largest exposure is to Technology,
followed by Health Care and Industrials. We would note that we have reduced our
exposure to the Energy sector, reflecting our recognition that our bullish
energy view has become more consensus. Our lowest weights are in the Consumer
Staples, Utilities, and Telecommunication Services sectors.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.8%
- -------------------------------------------------------------------
Capital Goods 3.0
- -------------------------------------------------------------------
Consumer Cyclical 10.1
- -------------------------------------------------------------------
Consumer Staples 0.9
- -------------------------------------------------------------------
Energy 2.1
- -------------------------------------------------------------------
Finance 9.8
- -------------------------------------------------------------------
Health Care 16.4
- -------------------------------------------------------------------
Services 11.8
- -------------------------------------------------------------------
Technology 32.4
- -------------------------------------------------------------------
Transportation 1.1
- -------------------------------------------------------------------
Utilities 3.7
- -------------------------------------------------------------------
Short-Term Investments 10.3
- -------------------------------------------------------------------
Other Assets & Liabilities -8.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
40
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 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS HIGH YIELD
HIGH YIELD FUND CORPORATE INDEX
--------------- --------------------------
9/30/98 9550 10000
10/98 9529 9795
9856 10202
9868 10213
10016 10364
10007 10303
10137 10402
10326 10603
10123 10460
10113 10437
10102 10479
10026 10363
9986 10289
10/99 10040 10221
10168 10341
10211 10457
10120 10412
10106 10431
10011 10212
10050 10229
9914 10123
10173 10330
10279 10408
10423 10479
10359 10388
10/00 10175 10056
9922 9657
10275 9844
10958 10581
11015 10722
10765 10469
10624 10339
10689 10525
10340 10230
10498 10381
10587 10503
9962 9797
10/01 10359 10039
10688 10406
10572 10363
10465 10436
10110 10290
10216 10538
10315 10706
10210 10647
9643 9862
9195 9431
9310 9700
9078 9573
10/02 9099 9489
9663 10077
9762 10218
10008 10558
10200 10688
10380 10995
10924 11647
11106 11768
11336 12106
11058 11973
11158 12111
11504 12442
10/03 11710 12693
11862 12886
12133 13177
12268 13429
12236 13395
12273 13486
12100 13394
11868 13168
12017 13356
12169 13538
12384 13803
12555 14004
10/04 12794 14257
12856 14429
12979 14644
12918 14625
13139 14840
12695 14408
12589 14268
12822 14521
12989 14806
13157 15065
13175 15094
13029 14943
10/05 12917 14839
13005 14916
13111 15045
13251 15285
13358 15387
13448 15479
13538 15574
13529 15572
13455 15517
13576 15669
13805 15923
13944 16149
10/06 14153 16369
</Table>
<Table>
--- HIGH YIELD FUND --- LEHMAN BROTHERS HIGH YIELD CORPORATE INDEX
$9,550 starting value $10,000 starting value
$14,153 ending value $16,369 ending value
</Table>
LEHMAN BROTHERS HIGH YIELD CORPORATE 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------
High Yield A# 9/30/1998 9.57% 6.44% 4.98%
- ------------------------------------------------------------
High Yield A## 9/30/1998 4.64% 5.46% 4.39%
- ------------------------------------------------------------
High Yield B# 9/30/1998 8.90% 5.69% NA*
- ------------------------------------------------------------
High Yield B## 9/30/1998 3.90% 5.39% NA*
- ------------------------------------------------------------
High Yield C# 9/30/1998 8.84% 5.76% 4.28%
- ------------------------------------------------------------
High Yield C## 9/30/1998 7.84% 5.76% 4.28%
- ------------------------------------------------------------
High Yield Y# 9/30/1998 10.11% 6.86% 5.42%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable.
* 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) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
MARK NILAND, CFA
Executive Vice President
NASRI TOUTOUNGI
Managing Director
JAMES SERHANT
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford High Yield Fund (Class A) gained 9.57%, before sales charges, for
the 12 month period ended October 31, 2006, trailing its benchmark, the Lehman
Brothers High Yield Corporate Index, which returned 10.31%. However, the Fund
outpaced the 9.18% return of the Lipper High Current Yield Funds peer group, a
group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted through most of the fiscal year. However, by
August of 2006, the Fed became concerned that economic growth was slowing, in
part due to the retreating housing market. As such, the Fed found itself in a
conundrum as to whether it should continue raising interest rates to restrain
inflation, or to pause in the tightening cycle to assess prospects for further
economic growth. Since changes in the rate of inflation often lag changes in
economic conditions, the Fed left rates unchanged at its two most recent
meetings while it waited for more data before taking action. Sensing that the
Fed would continue easing monetary policy, the bond markets rallied in the last
months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. Fortunately,
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out to a longer
duration on the yield curve. Thus, many investors allocated to lower quality and
foreign issues as they sought out higher yields. Accordingly, the traditionally
"riskier" high yield and emerging markets bonds were among the strongest
performers for the year. Within the high yield sector, the lowest quality and
highest risk bonds outperformed those with higher credit ratings.
41
- --------------------------------------------------------------------------------
During the twelve months ending October 31, 2006, security selection within the
Fund proved to be the primary driver of performance. The strongest selection
occurred within the Electric, Health Care and Chemicals sectors. However, for
most of the fiscal year the Fund's performance was constrained by its 10% limit
on CCC-rated securities (which we fully utilized) versus the fund's benchmark
which carries a 15% weighting. For the year, the lower end of the credit
spectrum (rated "CCC") outperformed the middle (rated "B") and highest (rated
"BB") tiers of the below investment grade credit spectrum. Late in the second
quarter of 2006, the Fund's investment guidelines were expanded to allow up to a
maximum of 25% in securities rated CCC. At this point in time, we do not
anticipate fully utilizing this larger "bucket", as we will continue to treat
the CCC-rated sector very selectively and opportunistically. At the sector
level, allocations detracted somewhat from performance, primarily due to the
underweight to the Automotive sector. Mainly due to last year's downgrade of
Ford and General Motors (GM) to below investment grade ratings, the Automotive
Sector now represents approximately 13% of the Lehman High Yield Index. While we
have generally been bullish (positive) on the prospects for these issuers,
prudent portfolio management principles and the asymmetry of fixed income
returns dictated a less-than-benchmark exposure of roughly 10%. Nevertheless,
this weighting within our portfolio is larger than the bulk of its peers. During
the year this positioning benefited the fund's peer relative performance, as
heightened speculation surrounding GM's sale of its most profitable subsidiary,
General Motors Acceptance Corp. (GMAC), and GM's progress in addressing its
pension and benefit obligations with its unions led to a rally in the automotive
sector. While the portfolio outperformed the Index on a gross (before expenses)
basis, it did not outperform by a great enough margin to offset the costs
associated with operating the Fund.
WHAT IS THE OUTLOOK?
The recent rally in bonds has priced in an environment of economic weakness that
is not entirely consistent with our view. Declines in interest rates and
gasoline prices, coupled with a healthy employment picture and gains in the
stock market, should be supportive of continued consumer spending. While housing
remains a wild card for the U.S. economy, our view is that the Fed is still
chiefly concerned with inflation and accordingly, policy decisions will favor
price stability as long as economic growth does not decline dramatically. We
continue to position the portfolio with a slight bias towards higher interest
rates. With the Fed's rate hike campaign on hold and slower, but positive,
growth ahead, the environment for spread sectors (those that offer yield
premiums over Treasuries) is favorable. Strong earnings, a benign inflation and
interest rate environment, and attractive yields all suggest that the High Yield
sector continues to offer value. In the near term, our chief concern is the
technical backdrop, in that the high yield market will be asked to absorb a
significant spike of supply (approximately $25 billion) before year end. This
dynamic has the potential to cause secondary market values to soften as new
issues will most likely have to come at some price concession. However, we are
looking forward to the upswing in the primary market as an opportunity to
participate in new issues with attractive pricing and covenant protection, and
we would view any material decline in the secondary market as a buying
opportunity.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
LONG-TERM
RATING HOLDINGS
- --------------------------------------------------------------------
BBB 0.7%
- --------------------------------------------------------------------
BB 24.3
- --------------------------------------------------------------------
B 62.3
- --------------------------------------------------------------------
CCC 11.9
- --------------------------------------------------------------------
NR 0.8
- --------------------------------------------------------------------
TOTAL 100.0%
- --------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 13.2%
- -------------------------------------------------------------------
Capital Goods 1.6
- -------------------------------------------------------------------
Consumer Cyclical 13.8
- -------------------------------------------------------------------
Consumer Staples 2.5
- -------------------------------------------------------------------
Energy 3.5
- -------------------------------------------------------------------
Finance 14.2
- -------------------------------------------------------------------
Health Care 4.9
- -------------------------------------------------------------------
Services 15.2
- -------------------------------------------------------------------
Technology 20.4
- -------------------------------------------------------------------
Transportation 2.7
- -------------------------------------------------------------------
Utilities 7.2
- -------------------------------------------------------------------
Short-Term Investments 20.8
- -------------------------------------------------------------------
Other Assets & Liabilities -20.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
42
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(3) 5/28/04 - 10/31/06
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
9550 10000
9560 10057
7/04 9602 10156
9683 10350
9713 10378
10/04 9781 10465
9765 10382
9832 10477
1/05 9836 10543
9838 10481
9764 10427
4/05 9820 10568
9888 10682
9939 10741
7/05 9910 10643
9992 10779
9937 10668
10/05 9880 10584
9915 10631
9989 10732
1/06 10012 10732
10042 10768
9990 10662
4/06 10001 10643
10005 10631
10016 10654
7/06 10108 10798
10218 10963
10274 11060
10/06 10339 11133
</Table>
<Table>
--- INCOME ALLOCATION FUND --- LEHMAN BROTHERS U.S. AGGREGATE
$9,550 starting value BOND INDEX
$10,339 ending value $10,000 starting value
$11,133 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------------
Income Allocation
A#................. 5/28/2004 4.64% 3.32%
- ----------------------------------------------------------
Income Allocation
A##................ 5/28/2004 -0.06% 1.38%
- ----------------------------------------------------------
Income Allocation
B#................. 5/28/2004 3.91% 2.58%
- ----------------------------------------------------------
Income Allocation
B##................ 5/28/2004 -1.09% 1.40%
- ----------------------------------------------------------
Income Allocation
C#................. 5/28/2004 3.91% 2.58%
- ----------------------------------------------------------
Income Allocation
C##................ 5/28/2004 2.91% 2.58%
- ----------------------------------------------------------
Income Allocation
I#................. 5/28/2004 4.63% 3.32%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and I shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Income Allocation Fund (Class A) gained 4.64%, before sales
charges, for the year ended October, 2006, versus the returns of 4.62% return
for the Lipper Intermediate Investment Grade Funds peer group and 5.19% for the
Lehman Brothers U.S. Aggregate Bond Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening that began in the summer of 2004. By June of
2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17
consecutive times, leaving the Fed Funds Rate at 5.25%. In response to the Fed's
tightening, short- and intermediate-term bond yields rose through the first half
of 2006. Thus, as interest rates rose, the principal value of these short- and
intermediate-term bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted (i.e. bonds with longer term maturities
having a lower interest rate than bonds with shorter maturities) through most of
the fiscal year. However, by August of 2006, the Fed became concerned that
economic growth was slowing, in part due to the retreating housing market. As
such, the Fed found itself in a conundrum as to whether it should continue
raising interest rates to restrain inflation, or to pause in the tightening
cycle to assess prospects for further economic growth. Since changes in the rate
of inflation often lag changes in economic conditions, the Fed left rates
unchanged at its two most recent meetings while it waited for more data before
taking action. Sensing that the Fed would continue easing monetary policy, the
bond markets rallied in the last months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. Fortunately,
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out longer on
the yield curve (i.e. purchasing bonds with a longer maturity date). Thus, many
investors shifted to lower quality and foreign issues as they sought greater
yield. During the period, the
43
- --------------------------------------------------------------------------------
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. However, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period. Thus, earlier gains were negatively offset. The Fund did, however,
benefit from the out-of-index exposure to "spread" sectors and higher yielding
securities. These sectors pay greater yields than Treasuries of similar
maturities to compensate for their greater risks. In periods when investors are
optimistic, such as last year, these spreads or risk premiums decline, causing
their bond values to rise. The underlying managers typically have exposure to
spread sectors since they can offer greater yields and at times may offer
compelling values. Ultimately, due to the relatively conservative structure of
the Fund, the benefits of the out-of-index strategies could not be fully
exploited, thereby preventing the Fund from outperforming its benchmark.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Federal Reserve is still concerned with inflation
and that policy decisions will favor price stability as long as economic growth
does not decline dramatically. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the average
U.S. consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Floating Rate Fund, Class Y 7.8%
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 12.0
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 8.5
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 16.3
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 7.1
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 23.4
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 24.7
- -------------------------------------------------------------------
Hartford U.S. Government Securities Fund, Class Y 0.1
- -------------------------------------------------------------------
Other Assets & Liabilities 0.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
44
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 - 10/31/06
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
9662 10207
9820 10215
9883 10357
10045 10349
10099 10434
10314 10629
10459 10608
10540 10251
10193 10319
10273 10592
10563 10493
10/03 10580 10518
10637 10625
10804 10711
10895 10827
10995 10908
11080 10624
10788 10582
10691 10641
10769 10747
10897 10952
11108 10982
11170 11074
10/04 11305 10985
11242 11086
11356 11156
11376 11090
11373 11033
11209 11183
11289 11304
11414 11365
11497 11262
11460 11406
11597 11289
11490 11199
10/05 11384 11249
11450 11356
11550 11356
11601 11394
11659 11282
11578 11262
11590 11250
11558 11274
11538 11426
11682 11601
11874 11703
11983 11780
10/06 12095 11780
</Table>
<Table>
--- INCOME FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX
$9,550 starting value $10,000 starting value
$12,095 ending value $11,780 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ------------------------------------------------
Income A# 10/31/2002 6.24% 6.08%
- ------------------------------------------------
Income A## 10/31/2002 1.46% 4.87%
- ------------------------------------------------
Income B# 10/31/2002 5.45% 5.31%
- ------------------------------------------------
Income B## 10/31/2002 0.45% 4.67%
- ------------------------------------------------
Income C# 10/31/2002 5.44% 5.36%
- ------------------------------------------------
Income C## 10/31/2002 4.44% 5.36%
- ------------------------------------------------
Income Y# 11/28/2003 6.41% 4.74%
- ------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
WILLIAM DAVISON, CFA
Managing Director
JEFFREY MACDONALD, CFA
Vice President
CHARLES MOON
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Income Fund (Class A) gained 6.24%, before sales charges, for the
year ended October, 2006, outperforming its benchmark, the Lehman Brothers U.S.
Aggregate Bond Index, which returned 5.19%. Similarly, the Fund outpaced the
5.33% return of the Lipper Corporate Debt Funds BBB-Rated Funds peer group, a
group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began with continued
flattening of the U.S. Treasury yield curve. Historically high energy and
commodity prices, a boom in the housing market, and a strengthening economy led
to concerns about rising inflation. To keep inflation in check, the Federal
Reserve (the Fed) continued its cycle of monetary tightening (i.e. raising
interest rates) that began in the summer of 2004. By June of 2006, the Fed had
raised its Federal Funds Target Rate (Fed Funds Rate) 17 consecutive times,
leaving the Fed Funds rate at 5.25%. In response to the Fed's tightening, short-
and intermediate-term bond yields rose through the first half of 2006. In
contrast, long-term bond yields remained relatively stable due, in large part,
to overseas demand and expectations that the Fed could keep inflation low over
the long run. By the August 8th meeting of the Federal Open Market Committee
(FOMC), the economic outlook at the Fed suggested a slowing in economic growth
and a subsequent moderation in inflation pressures. The Fed Funds Rate was left
at 5.25%, unchanged for the first time since May 2004. Rates across the yield
curve fell in the wake of the FOMC pause as the market began to price in an
environment of slow economic growth and a series of Fed Funds Rate cuts that
would likely follow.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. Fortunately,
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out to longer
durations on the yield curve. Thus, many investors added lower quality and
foreign issues as they sought greater yield. During the period, the
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
The greatest driver of the Fund's performance relative to the benchmark was
exposure to sectors outside the Fund's benchmark -- specifically High Yield and
Emerging Markets Debt.
45
- --------------------------------------------------------------------------------
These sectors were the strongest performers for the period and benefited from
the strength of global economies, the outlook for stable-to-improving credit
quality, and from the continuing search for yield by investors. With a flat
yield curve for much of the 12 month period, investors could not obtain
meaningful increases in yields simply by extending the maturities of their
portfolios. As such, Investors were willing to accept the risk associated with
the higher yields in credit-sensitive sectors such as High Yield and Emerging
Markets Debt, at least in part because of their general confidence in the
economy and the positive prospects for most of the issuers in these sectors. The
fund's overweight to High Yield and Emerging Markets Debt was funded with U.S.
Treasuries. The major detractor from performance was the Fund's underweight to
the Mortgage-Backed Securities sector. Although rising interest rates detracted
from the Fund's performance on an absolute return basis, the Fund's
shorter-than-benchmark duration added to performance on a relative basis. In
addition to benefiting from sector allocation, the Fund also benefited from
selection at the individual security level. While the strongest issue selection
came from within the investment grade corporate sector, selection within the
Mortgage-Backed Securities and Treasury sectors also added value.
Consistent with the Fund's primary objective of high current income, the Fund
maintained a higher-than-median 30-Day SEC Yield relative to the Lipper BBB
Corporate Bond Universe for the months of November 2005 through October 2006,
placing in the 1st quartile in nine of those months and continuing our record of
consistently generating above-average SEC yields while maintaining an A3 credit
rating.
WHAT IS THE OUTLOOK?
The recent rally in bonds has priced into bond market values an environment of
economic weakness that is not consistent with our view. Declines in interest
rates and gasoline prices, coupled with a decent employment picture and gains in
the stock market, should support continued spending. While housing remains a
wild card for the U.S. economy, we believe that the Fed is still concerned with
inflation and that policy decisions will favor price stability as long as
economic growth does not decline dramatically. We continue to position the
portfolio with a slight bias towards higher interest rates. With the Fed's rate
hike campaign on hold and slower, yet still positive growth ahead, the
environment for spread sectors (those that offer yield premiums over Treasuries)
is favorable. Strong earnings, a benign inflation and interest rate environment
and attractive yields all suggest the High Yield sector continues to offer
value. We also believe that opportunities continue to exist in the Non-Dollar
and Emerging Markets Debt sectors. In the coming months we will be closely
watching the economy to determine the impact of a slower housing market on the
average U.S. consumer and what implications for the economy result.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
LONG-TERM
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 36.6%
- -------------------------------------------------------------------
AA 2.2
- -------------------------------------------------------------------
A 10.7
- -------------------------------------------------------------------
BBB 13.8
- -------------------------------------------------------------------
BB 14.4
- -------------------------------------------------------------------
B 18.5
- -------------------------------------------------------------------
CCC 3.0
- -------------------------------------------------------------------
NR 0.8
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 4.6%
- -------------------------------------------------------------------
Capital Goods 1.0
- -------------------------------------------------------------------
Consumer Cyclical 4.8
- -------------------------------------------------------------------
Consumer Staples 1.4
- -------------------------------------------------------------------
Energy 2.8
- -------------------------------------------------------------------
Finance 27.7
- -------------------------------------------------------------------
Foreign Governments 1.1
- -------------------------------------------------------------------
General Obligations 0.1
- -------------------------------------------------------------------
Health Care 2.6
- -------------------------------------------------------------------
Services 10.9
- -------------------------------------------------------------------
Technology 8.1
- -------------------------------------------------------------------
Transportation 0.7
- -------------------------------------------------------------------
U.S. Government Agencies 26.3
- -------------------------------------------------------------------
U.S. Government Securities 2.8
- -------------------------------------------------------------------
Utilities 3.6
- -------------------------------------------------------------------
Short-Term Investments 2.9
- -------------------------------------------------------------------
Other Assets & Liabilities -1.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
46
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(3) 10/31/02 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S. TREASURY
INFLATION PLUS FUND INFLATION-PROTECTED SECURITIES INDEX
------------------- ------------------------------------
10/31/02 9550 10000
9528 9993
9842 10329
9889 10407
10245 10796
10082 10621
10037 10594
10507 11097
10407 10983
9921 10476
10072 10664
10390 11017
10/03 10412 11077
10411 11084
10500 11197
10609 11325
10842 11586
11003 11772
10488 11201
10628 11403
10621 11408
10707 11514
10976 11823
10988 11846
10/04 11077 11965
11044 11936
11228 12144
11226 12145
11173 12093
11173 12104
11367 12335
11446 12420
11469 12473
11248 12211
11487 12493
11456 12475
10/05 11310 12316
11316 12337
11442 12489
11441 12488
11429 12482
11190 12208
11164 12198
11200 12234
11211 12268
11377 12468
11570 12684
11581 12705
10/06 11569 12683
</Table>
<Table>
--- INFLATION PLUS FUND --- LEHMAN BROTHERS U.S. TREASURY
$9,550 starting value INFLATION-PROTECTED SECURITIES INDEX
$11,569 ending value $10,000 starting value
$12,683 ending value
</Table>
LEHMAN BROTHERS U.S. TREASURY INFLATION-PROTECTED SECURITIES 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- --------------------------------------------------------
Inflation Plus A# 10/31/2002 2.29% 4.91%
- --------------------------------------------------------
Inflation Plus A## 10/31/2002 -2.32% 3.71%
- --------------------------------------------------------
Inflation Plus B# 10/31/2002 1.51% 4.18%
- --------------------------------------------------------
Inflation Plus B## 10/31/2002 -3.38% 3.51%
- --------------------------------------------------------
Inflation Plus C# 10/31/2002 1.51% 4.16%
- --------------------------------------------------------
Inflation Plus C## 10/31/2002 0.51% 4.16%
- --------------------------------------------------------
Inflation Plus I# 11/28/2003 2.34% 4.92%
- --------------------------------------------------------
Inflation Plus Y# 11/28/2003 2.58% 4.00%
- --------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from 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?
The Hartford Inflation Plus Fund (Class A), before sales charges, gained 2.29%
for the year ended October 31, 2006, trailing its benchmark, the Lehman U.S.
Treasury Inflation-Protected Securities Index, which returned 2.98%. The Fund
also lagged the 2.48% return of the Lipper U.S. Treasury Inflation-Protected
Funds peer group, a group of funds with investment strategies similar to those
of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted through most of the fiscal year. However, by
August of 2006, the Fed became concerned that economic growth was slowing, in
part due to the retreating housing market. As such, the Fed found itself in a
conundrum as to whether it should continue raising interest rates to restrain
inflation, or to pause in the tightening cycle to assess prospects for further
economic growth. Since changes in the rate of inflation often lag changes in
economic conditions, the Fed left rates unchanged at its two most recent
meetings while it waited for more data before taking action. Sensing that the
Fed's pause would be followed by an easing, the bond markets rallied in the last
months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. It was a
particularly challenging year for U.S. Treasury Inflation-Protected Securities
(TIPS), which are impacted by the market's expectations about future inflation.
During the past twelve months, energy, commodities and housing prices each
soared to historically high levels, only to partially retreat in the latter half
of the period. Also during the period, the Fed changed
47
- --------------------------------------------------------------------------------
from its policy of monetary tightening to a "data dependent" outlook. Further
complicating the market's ability to gauge future inflation was the change in
leadership at the Federal Reserve. Overall, through all of these events, the
bond markets maintained an outlook for low, long-term inflation. These
conditions were therefore not beneficial for TIPS, which for the year lagged
their nominal Treasury counterparts.
The greatest impact upon the Fund's performance was its sensitivity to changes
in interest rates. Late in 2005, the Fund's duration was slightly long to the
benchmark, having underweighted TIPS in the 1 to 5 year maturities in response
to expectation that the real rate (nominal rate minus inflation) curve would
continue to flatten. However, early in the new year, the Fund shortened its
duration as the first quarter economic data proved much stronger than expected,
raising the odds of more aggressive Fed tightening through the first half of
2006. By the last few months of the fiscal year, though, it became apparent that
the economy might be slowing and the Fed might ease its monetary policy. The
Fund consequently lengthened its duration to be in-line with the benchmark, and
was therefore able to participate fully in the bond rally at the end of the
twelve month period. The Fund's duration and yield curve management were both
positive contributors to relative return. In seeking higher yields and greater
diversification, the Fund has made small allocations outside the TIPS sector.
For the fiscal year, in aggregate these allocations detracted slightly from
relative return. In particular, the Fund's defensive positions in nominal
Treasuries and hedging actions detracted slightly from performance. In
September, the Fund made its first allocation into secured Bank Loans, an asset
class which historically outperforms inflation. Even though they were in the
portfolio for less than two months, the allocation to bank loans was a
meaningful contributor to relative return.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has priced into bond market values an
environment of economic weakness that is not consistent with our view. Declines
in interest rates and gasoline prices, coupled with a decent employment picture
and gains in the stock market, should be supportive of continued spending. While
housing remains a wild card for the U.S. economy, our view is that the Federal
Reserve is still concerned with inflation and that policy decisions will favor
price stability as long as economic growth does not decline dramatically. In the
coming months we will be closely watching the economy to determine the impact of
a slower housing market on the average U.S. consumer and what implications for
the economy result.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 0.8%
- -------------------------------------------------------------------
Consumer Cyclical 1.2
- -------------------------------------------------------------------
Finance 4.3
- -------------------------------------------------------------------
Health Care 1.6
- -------------------------------------------------------------------
Services 0.9
- -------------------------------------------------------------------
Technology 1.2
- -------------------------------------------------------------------
U.S. Government Securities 88.9
- -------------------------------------------------------------------
Utilities 1.2
- -------------------------------------------------------------------
Short-Term Investments 1.2
- -------------------------------------------------------------------
Other Assets & Liabilities -1.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
LONG-TERM
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 91.0%
- -------------------------------------------------------------------
AA 0.7
- -------------------------------------------------------------------
BBB 0.6
- -------------------------------------------------------------------
BB 7.4
- -------------------------------------------------------------------
B 0.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
48
The Hartford International Capital Appreciation Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL CAP APP FUND MSCI EAFE INDEX MSCI EAFE GROWTH INDEX
-------------------------- --------------- ----------------------
4/30/01 9450 10000 10000
8836 9655 9601
8411 9264 9137
8297 9096 8915
7825 8867 8509
6861 7971 7706
10/01 7201 8175 8013
7815 8477 8425
8023 8528 8474
7702 8075 8017
7834 8132 8125
8222 8616 8477
8080 8638 8488
8146 8755 8512
7768 8410 8295
7002 7580 7411
6880 7565 7355
6067 6755 6716
10/02 6549 7118 7097
7154 7442 7306
6517 7192 7138
6574 6893 6785
6423 6735 6639
6234 6608 6575
6990 7263 7151
7605 7710 7527
7794 7901 7661
8031 8093 7762
8381 8290 7905
8400 8547 8174
10/03 9100 9080 8645
9207 9284 8848
9711 10009 9457
10082 10152 9642
10548 10388 9826
10796 10450 9837
10282 10223 9600
10463 10254 9583
10796 10496 9714
10035 10157 9320
10082 10204 9331
10586 10472 9563
10/04 11024 10830 9883
11642 11573 10567
11975 12081 11015
11604 11860 10762
11480 12375 11195
11052 12069 10925
10948 11799 10723
11033 11817 10764
11090 11979 10853
11480 12347 11184
11813 12662 11507
12061 13229 11993
10/05 11547 12843 11666
11957 13161 11888
12649 13774 12517
13614 14621 13289
13402 14591 13140
13807 15079 13655
14465 15810 14282
13702 15215 13692
13567 15221 13712
13489 15373 13777
13847 15800 14111
13934 15828 14034
10/06 14417 16445 14513
</Table>
<Table>
--- INTERNATIONAL CAP APP --- MSCI EAFE INDEX -- MSCI EAFE GROWTH INDEX
FUND $10,000 starting value $10,000 starting value
$9,450 starting value $16,445 ending value $14,513 ending value
$14,417 ending value
</Table>
MSCI EAFE INDEX -- 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.
MSCI EAFE GROWTH INDEX is a free float-adjusted market capitalization index that
is designed to measure developed market equity performance (excluding the U.S.
and Canada) of the growth securities within the MSCI EAFE Index.
The fund has changed its benchmark from the MSCI EAFE Index to the MSCI EAFE
Growth Index because the fund's investment manager believes that the MSCI EAFE
Growth Index is better suited to the investment strategy of the fund.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ---------------------------------------------------------------
Int'l Cap App A# 4/30/2001 24.85% 14.88% 7.97%
- ---------------------------------------------------------------
Int'l Cap App A## 4/30/2001 17.98% 13.59% 6.87%
- ---------------------------------------------------------------
Int'l Cap App B# 4/30/2001 23.95% 14.08% 7.21%
- ---------------------------------------------------------------
Int'l Cap App B## 4/30/2001 18.95% 13.84% 7.07%
- ---------------------------------------------------------------
Int'l Cap App C# 4/30/2001 23.95% 14.08% 7.21%
- ---------------------------------------------------------------
Int'l Cap App C## 4/30/2001 22.95% 14.08% 7.21%
- ---------------------------------------------------------------
Int'l Cap App I## 4/30/2001 24.93% 14.90% 7.98%
- ---------------------------------------------------------------
Int'l Cap App Y# 4/30/2001 25.38% 15.41% 8.44%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Class I shares commenced operations on 8/31/06. Performance
prior to 8/31/06 reflects Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGEMENT
ANDREW S. OFFIT
Senior Vice President, Partner
JEAN-MARC BERTEAUX
Vice President
MATTHEW D. HUDSON
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford International Capital Appreciation Fund
returned 24.85%, before sales charges, for the twelve-month period ended October
31, 2006, versus returns of 24.41% for the MSCI EAFE Growth Index and 28.04% for
the MSCI EAFE Index. The Fund underperformed the 26.17% return of the average
fund in the International Multi-Cap Growth Funds peer group, a group of funds
with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Global equity markets were up significantly for the twelve months year ended
October 31, 2006, buoyed by a pause in the US Federal Reserve's tightening cycle
and lessening fears of excessive global inflation. Global equities showed signs
of strength in late 2005, gained momentum and then dipped. The markets then
rebounded in the third quarter as prices of energy-related commodities dropped
significantly. Within the MSCI EAFE Growth Index, Utilities, Materials, and
Industrials led all sectors, while Telecommunications Services and Energy
performed well but lagged the index returns for the twelve month period ended
October 31, 2006.
The Fund outperformed its benchmark during the period aided by strong stock
selection across many sectors. Vallourec (Capital Goods), Research in Motion
(Technology Hardware), and London Stock Exchange (Diversified Financials) were
the top three relative contributors owned by the Fund. We initiated a position
in French-based steel tube producer, Vallourec, after the company declined on
macro-economic fears of inflation and higher interest rates. Shares of the
company's stock surged due to increased demand for exploration from oil and gas
companies benefiting from earlier price increases. Shares of wireless
communications device maker Research In Motion increased as third quarter
results exceeded expectations due to continued strong subscriber growth. The
company continues to experience accelerating growth as it expands its geographic
reach, subscription base, and product line. The UK securities market, London
Stock Exchange, benefited
49
- --------------------------------------------------------------------------------
from industry consolidation, along with exceptional earnings growth due to
record trading volumes. Avoidance of Energy names like BP PLC also helped
performance with the price of oil flattening compared with where it was a year
ago.
The leading detractors from the Fund's relative (i.e. performance of the Fund as
measured against the benchmark) and absolute performance were Rakuten
(Retailing), Cia Vale do Rio Doce (Materials), and Statoil (Energy). Rakuten,
Japan's leading online retailer, was negatively impacted by volatility in
Japanese internet stocks. We have trimmed but continue to hold this name as
there have been no fundamental disappointments with the company's earnings. Cia
Vale Do Rio Doce, the world's largest iron ore miner, declined over concerns of
decelerating global growth eroding demand for the company's raw materials,
leading to lower profits. We trimmed due to near-term concerns of deteriorating
fundamentals. Norwegian oil and gas company Statoil reported lower-than-expected
quarterly profits and reduced guidance for full-year production volumes.
WHAT IS THE OUTLOOK?
We expect this pendulum swing in sector leadership from cyclical to growth to
continue into the close of 2006 and beyond. In the meantime we continue to pick
stocks one at a time, focusing on fundamental bottom-up research. As usual, the
Fund is positioned for growth. The Fund's overweight in Consumer Discretionary
and Information Technology sectors, two of the strongest areas of growth, are a
result of our bottom-up research and stock analysis. Despite the Fund's
challenging relative performance earlier in the year, our process has not
wavered. Our focus remains on stock and sector selections that result from
intense bottom-up research, diligently meeting with the management of leading
global companies, and leveraging the strong research capabilities of our firm.
We have strong conviction in our holdings and process and are optimistic about
the Fund's positioning.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 0.5%
- -------------------------------------------------------------------
Austria 1.3
- -------------------------------------------------------------------
Belgium 0.9
- -------------------------------------------------------------------
Brazil 0.4
- -------------------------------------------------------------------
Canada 6.7
- -------------------------------------------------------------------
France 14.7
- -------------------------------------------------------------------
Germany 5.3
- -------------------------------------------------------------------
Hong Kong 2.9
- -------------------------------------------------------------------
Ireland 2.4
- -------------------------------------------------------------------
Japan 16.8
- -------------------------------------------------------------------
Mexico 2.7
- -------------------------------------------------------------------
Netherlands 3.9
- -------------------------------------------------------------------
South Korea 1.8
- -------------------------------------------------------------------
Spain 1.0
- -------------------------------------------------------------------
Sweden 1.4
- -------------------------------------------------------------------
Switzerland 8.2
- -------------------------------------------------------------------
Taiwan 2.2
- -------------------------------------------------------------------
United Kingdom 22.4
- -------------------------------------------------------------------
Short-Term Investments 28.8
- -------------------------------------------------------------------
Other Assets & Liabilities -24.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.0%
- -------------------------------------------------------------------
Consumer Cyclical 15.7
- -------------------------------------------------------------------
Consumer Staples 9.9
- -------------------------------------------------------------------
Energy 0.5
- -------------------------------------------------------------------
Finance 22.1
- -------------------------------------------------------------------
Health Care 9.4
- -------------------------------------------------------------------
Services 4.5
- -------------------------------------------------------------------
Technology 22.5
- -------------------------------------------------------------------
Transportation 2.4
- -------------------------------------------------------------------
Utilities 2.5
- -------------------------------------------------------------------
Short-Term Investments 28.8
- -------------------------------------------------------------------
Other Assets & Liabilities -24.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
50
The Hartford International Opportunities Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL OPPORTUNITIES FUND MSCI AC WORLD FREE EX U.S. INDEX
-------------------------------- --------------------------------
10/31/96 9450 10000
9883 10386
9970 10266
9868 10077
9924 10262
9924 10240
9868 10327
10445 10964
10889 11569
11206 11804
10461 10875
11001 11463
10/97 10228 10487
10098 10356
10054 10475
10197 10789
10852 11508
11337 11906
11575 11991
11641 11774
11660 11730
11765 11841
10092 10171
9779 9956
10/98 10415 10999
11014 11590
11314 11990
11647 11977
11380 11709
11989 12274
12437 12888
11913 12283
12472 12847
12786 13148
12796 13194
12872 13283
10/99 13301 13778
14091 14329
15741 15695
14904 14844
15914 15244
15832 15818
15006 14935
14424 14553
14960 15173
14510 14574
14715 14754
13977 13936
10/00 13352 13493
12781 12888
13297 13328
13372 13527
12319 12456
11471 11576
12309 12363
11858 12022
11493 11561
11235 11304
10913 11023
9784 9853
10/01 10031 10130
10601 10593
10805 10729
10289 10270
10268 10344
10816 10949
10752 10976
10859 11096
10354 10617
9279 9582
9139 9583
8031 8567
10/02 8633 9027
8999 9461
8623 9155
8225 8834
7967 8655
7795 8487
8504 9305
8988 9898
9117 10172
9386 10443
9719 10754
9773 11055
10/03 10386 11772
10601 12028
11337 12947
11466 13155
11745 13489
11810 13572
11477 13150
11563 13180
11853 13478
11294 13085
11294 13190
11638 13614
10/04 12068 14087
12810 15065
13294 15712
13004 15441
13445 16203
13111 15763
12864 15375
12929 15471
13187 15762
13832 16344
14198 16762
14714 17627
10/05 14122 16985
14391 17556
15118 18401
16165 19684
15863 19627
16391 20197
17286 21238
16520 20259
16466 20239
16531 20446
16952 21026
16779 21039
10/06 17405 21896
</Table>
<Table>
--- INTERNATIONAL OPPORTUNITIES FUND --- MSCI AC WORLD FREE EX U.S. INDEX
$9,450 starting value $10,000 starting value
$17,405 ending value $21,896 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -------------------------------------------------------------------
Int'l Opp A# 7/22/1996 23.25% 11.65% 6.29% 6.38%
- -------------------------------------------------------------------
Int'l Opp A## 7/22/1996 16.47% 10.39% 5.70% 5.79%
- -------------------------------------------------------------------
Int'l Opp B# 7/22/1996 22.59% 10.86% NA* NA*
- -------------------------------------------------------------------
Int'l Opp B## 7/22/1996 17.59% 10.59% NA* NA*
- -------------------------------------------------------------------
Int'l Opp C# 7/22/1996 22.33% 10.79% 5.51% 5.58%
- -------------------------------------------------------------------
Int'l Opp C## 7/22/1996 21.33% 10.79% 5.51% 5.58%
- -------------------------------------------------------------------
Int'l Opp Y# 7/22/1996 24.00% 12.20% 6.79% 6.87%
- -------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
* 10 year and 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 shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGEMENT
TROND SKRAMSTAD
Senior Vice President, Partner, Director of Global Equity
NICOLAS M. CHOUMENKOVITCH
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford International Opportunities Fund returned
23.25%, before sales charges, for the twelve-month period ended October 31,
2006, underperforming its benchmark, the MSCI All Country World Free ex US
Index, which returned 28.91% for the same period. The Fund underperformed the
25.62% return of the average fund in the Lipper International Large Cap Core
Funds peer group, a group of funds with investment strategies similar to those
of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Toward the end of 2005 global equity markets showed signs of strength, as
investors felt encouraged by strong consumer confidence, solid holiday sales,
and retreating energy prices. Early 2006 showed international equity markets
advancing as corporate earnings growth continued to be excellent. Returns were
strong in Europe, which experienced a high volume of merger and acquisition
activity and IPO offerings. Mid-year 2006 economic resilience and companies that
benefited from M&A helped returns in the portfolio. Declining energy and metals
prices helped drive up international equity markets during the last months of
the Fund's fiscal year.
The Fund's underperformance versus its benchmark reflected a combination of weak
stock selection in some areas as well as sector allocation. Key detractors from
performance included Peugeot (Automotives), Rakuten (Retailing), and Statoil
(Energy). Peugeot has been under short-term pressure due to its late stage
product cycle evolution, higher raw materials costs, and additional expenses
related to weaker than expected sales results. Over the mid-long term, we expect
positive upside from restructuring efforts, initiatives set forth by a new CEO,
and product cycle improvements. Rakuten's stock price fell as a temporary rise
in the costs necessary to grow a healthy sales base of this internet retailer
disappointed investors; they also had adverse press which in turn hit the stock
hard. We remain confident in Rakuten's leading market position and added to our
holdings on the recent weakness. Statoil fell back with the decline in the oil
prices compounded by lower-than-expected quarterly profits and reduced company
guidance for full year production volumes. We remain positive on the company due
to its ability to control costs and our confidence in management plans to boost
oil production longer-term. As a strategy the Fund tends to favor asset rich
companies with growth potential. These, however, underperformed when a sudden
down draft in commodity prices occurred. Consumer financial related stocks in
Japan, such as Matsui Securities, also detracted from performance. Finally, the
Fund's overweight (i.e. the Fund's sector position was more than the benchmark
position)
51
- --------------------------------------------------------------------------------
to the lagging Healthcare sector and underweight to the outperforming Materials
sector hurt performance somewhat.
The Fund benefited from strong security selection in several areas, including
Materials and Financial Services. New to the Fund this year, Xstrata (Materials)
was the top contributing stock to both relative and absolute performance during
the period. The value of coal assets in rising energy prices were finally
recognized in the market, and we trimmed its position mid year as the stock
approached our target price. Investments in the London Stock Exchange and the
Hong Kong Exchanges (Diversified Financials) also significantly contributed to
the portfolio's performance. The London Stock Exchange's business has been very
strong this year due to the increases in listings and growth of electronic
trading. The Hong Kong Stock Exchange had strong performance during the
beginning of the year driven by higher trading fees. Although market volumes are
down, the company remains a proxy for growth in China. Other positive
contributors included Inco Ltd, a Canadian Metals and Mining company, and Banco
Bilbao Vizcaya, a Spanish commercial bank.
WHAT IS THE OUTLOOK?
We continue to position the Fund for a slower world economy than currently
anticipated by the market, driven by housing in the US and expected growth
disappointments in Europe next year. While we may have what will turn out to be
a hard "mid-cycle" slowdown, avoiding a global recession, the markets have yet
to engage with the much weaker growth outlook we are maintaining. Other than
rebuilding our positions in the Consumer Staples sector and further cutting back
our emerging markets exposure there have been no major shifts in the Fund's
exposure.
We maintain a large overweight to continental Europe as relative valuations
support this positioning. We are looking to add to UK domestic and Japanese
names when the economic growth issues that concerned us are reflected in these
markets.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 1.6%
- -------------------------------------------------------------------
Belgium 0.5
- -------------------------------------------------------------------
Brazil 4.1
- -------------------------------------------------------------------
Canada 6.4
- -------------------------------------------------------------------
China 0.3
- -------------------------------------------------------------------
France 15.3
- -------------------------------------------------------------------
Germany 9.4
- -------------------------------------------------------------------
Hong Kong 0.9
- -------------------------------------------------------------------
India 1.4
- -------------------------------------------------------------------
Ireland 1.5
- -------------------------------------------------------------------
Italy 6.5
- -------------------------------------------------------------------
Japan 14.0
- -------------------------------------------------------------------
Luxembourg 0.6
- -------------------------------------------------------------------
Mexico 1.2
- -------------------------------------------------------------------
Netherlands 1.5
- -------------------------------------------------------------------
Norway 3.6
- -------------------------------------------------------------------
Panama 0.3
- -------------------------------------------------------------------
Russia 1.1
- -------------------------------------------------------------------
South Korea 1.0
- -------------------------------------------------------------------
Spain 2.6
- -------------------------------------------------------------------
Sweden 2.1
- -------------------------------------------------------------------
Switzerland 8.3
- -------------------------------------------------------------------
Taiwan 1.6
- -------------------------------------------------------------------
United Kingdom 10.2
- -------------------------------------------------------------------
Short-Term Investments 23.3
- -------------------------------------------------------------------
Other Assets & Liabilities -19.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 14.1%
- -------------------------------------------------------------------
Capital Goods 0.5
- -------------------------------------------------------------------
Consumer Cyclical 10.4
- -------------------------------------------------------------------
Consumer Staples 5.4
- -------------------------------------------------------------------
Energy 9.9
- -------------------------------------------------------------------
Finance 26.8
- -------------------------------------------------------------------
Health Care 10.9
- -------------------------------------------------------------------
Services 2.9
- -------------------------------------------------------------------
Technology 10.5
- -------------------------------------------------------------------
Transportation 3.2
- -------------------------------------------------------------------
Utilities 1.4
- -------------------------------------------------------------------
Short-Term Investments 23.3
- -------------------------------------------------------------------
Other Assets & Liabilities -19.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
52
The Hartford International Small Company Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
S&P/CITIGROUP EURO-PACIFIC EXTENDED
INTERNATIONAL SMALL CO FUND MARKET INDEX
--------------------------- -----------------------------------
4/30/01 9450 10000
9781 10051
9204 9730
9044 9365
9044 9388
7825 8233
10/01 8335 8554
8902 8875
8713 8758
8581 8585
8562 8792
8968 9305
9346 9565
9620 9980
9507 9671
8921 9000
8713 8917
7834 8188
10/02 7910 8117
8155 8408
8331 8345
8142 8223
8123 8207
8094 8157
9098 8834
9827 9576
9959 10030
10357 10357
10868 11015
11569 11642
10/03 12241 12443
12322 12432
12884 13194
13209 13691
13554 14117
14021 14484
13757 14113
13453 14116
13848 14613
13108 14028
12996 14139
13179 14562
10/04 13635 15016
14383 16191
14973 16992
15337 17232
15746 18014
15292 17637
14803 17128
14917 17210
15292 17537
15905 18172
16223 18693
16632 19398
10/05 16212 18832
16536 19517
17669 20747
18977 22263
18938 22281
19715 23268
20699 24427
19793 23296
19469 23016
19598 22832
20155 23586
20427 23751
10/06 20971 24368
</Table>
<Table>
--- INTERNATIONAL SMALL CO FUND --- S&P/CITIGROUP EURO-PACIFIC
$9,450 starting value EXTENDED MARKET INDEX
$20,971 ending value $10,000 starting value
$24,368 ending value
</Table>
S&P/CITIGROUP EURO-PACIFIC EXTENDED MARKET INDEX is a global equity index
comprised of the smallest 20% of each country's market capitalization in the
Broad Market Index. All developed countries are included except the US and
Canada.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ----------------------------------------------------------------
Int'l Small Co A# 4/30/2001 29.36% 20.26% 15.58%
- ----------------------------------------------------------------
Int'l Small Co A## 4/30/2001 22.25% 18.90% 14.40%
- ----------------------------------------------------------------
Int'l Small Co B# 4/30/2001 28.51% 19.52% 14.91%
- ----------------------------------------------------------------
Int'l Small Co B## 4/30/2001 23.51% 19.33% 14.82%
- ----------------------------------------------------------------
Int'l Small Co C# 4/30/2001 28.35% 19.39% 14.72%
- ----------------------------------------------------------------
Int'l Small Co C## 4/30/2001 27.35% 19.39% 14.72%
- ----------------------------------------------------------------
Int'l Small Co Y# 4/30/2001 29.89% 20.77% 16.07%
- ----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGER
SIMON H. THOMAS
Vice President
DANIEL MAGUIRE
Equity Research Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford International Small Company Fund returned
29.36%, before sales charges, for the twelve-month period ended October 31,
2006, underperforming its benchmark, The S&P/Citigroup Euro-Pacific Extended
Market Index, which returned 29.40% for the same period. The Fund outperformed
the 27.09% return of the average fund in the Lipper International Small/Mid Cap
Core peer group, a group of funds with investment strategies similar to those of
the Fund.
WHY DID THE FUND PERFORM THIS WAY?
International small cap equity markets advanced markedly during the period. The
benchmark rose in nine of the 12 months with only the May -- July period showing
negative results as investors sold off riskier assets. The current period marks
the fourth consecutive fiscal year of double-digit positive returns. Every
sector in the benchmark rose, led by Materials (+44%), Utilities (+42%), and
Energy (+40%). Even the laggards posted strong results as the bottom three
sectors Technology (+15%), Health Care (+23%), and Consumer Discretionary (+24%)
all rose.
Fund returns during the period were helped by strong stock selection,
particularly among Industrials, Health Care, and Consumer Discretionary stocks.
Sector allocation, an outgrowth of the bottom-up stock selection process, was
negative due to an overweight position in the lagging Health Care sector and a
modest cash position. The Fund's strongest relative contributors (i.e.
performance of the Fund as measured against the benchmark) for the period
included: Hellenic Technodomik (+93%), Greece's largest construction company,
which rose on strong new business wins; Cambridge Antibody (+106%), a UK
biotechnology company that soared on the news that pharmaceutical giant
AstraZeneca would be buying the 80% of the company it did not already own;
Hagemeyer (+110%), a Dutch supplier of electrical and industrial goods, rose on
positive restructuring results; and Rhodia (+63%), a French specialty chemicals
company. These stocks, along with Union Tool (+77%), a Japanese supplier of
micro-thin drill bits, were also among the top absolute contributors.
The largest detractors to relative and absolute performance included: GCAP Media
(-27%), a British media company that suffered in a weakening UK advertising
market and some concerns over a format change involving fewer ads per minute;
Sorin (-17%), an Italian medical technology company that experienced some
disappointing profits; Seventy-Seven Bank (-16%), a Japanese regional bank whose
profits did not rise as quickly as expected in a rising rate environment; AWB
(-48%), an Australian wheat
53
- --------------------------------------------------------------------------------
exporter which suffered from a weak harvest and political concerns arising from
contracts with middle eastern clients; and Wolfson Microelectronics (-21%), a
British microchip company.
WHAT IS THE OUTLOOK?
Signs of a steadily decelerating global economy continue. Within the United
States, the Federal Reserve Bank seems to have successfully orchestrated a soft
landing of the United States economy. A moderation in energy prices may help to
keep global inflation under control and may signal at least a temporary pause in
US rate increases. Outside of the United States, we believe the resurgence of
the US dollar and the continued relative strength of the US economy may act as
an inflection point for a shift from value to growth, small to large, low
quality to high quality, and cyclical to non-cyclical.
We finished the period overweight Industrials, Technology, Health Care, and
Consumer Staples. Our Technology weight is based on greater conviction that
Technology companies broadly are gaining strength. Within Consumer Staples, we
maintain an emphasis on Japanese convenience stores and consumer products
companies. We expect our Industrials overweight to decline as companies hit our
price targets. Our largest underweights are in the Financials, Utilities, and
Consumer Discretionary sectors.
DIVERSIFICATION BY COUNTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- -------------------------------------------------------------------
Australia 3.4%
- -------------------------------------------------------------------
Belgium 1.7
- -------------------------------------------------------------------
China 1.0
- -------------------------------------------------------------------
Denmark 3.7
- -------------------------------------------------------------------
Finland 1.2
- -------------------------------------------------------------------
France 8.0
- -------------------------------------------------------------------
Germany 12.1
- -------------------------------------------------------------------
Greece 1.9
- -------------------------------------------------------------------
Hong Kong 3.3
- -------------------------------------------------------------------
Italy 5.2
- -------------------------------------------------------------------
Japan 22.4
- -------------------------------------------------------------------
Liechtenstein 1.3
- -------------------------------------------------------------------
Luxembourg 0.7
- -------------------------------------------------------------------
Malaysia 0.8
- -------------------------------------------------------------------
Mexico 0.6
- -------------------------------------------------------------------
Netherlands 3.3
- -------------------------------------------------------------------
Portugal 0.8
- -------------------------------------------------------------------
South Korea 1.6
- -------------------------------------------------------------------
Spain 1.8
- -------------------------------------------------------------------
Sweden 3.3
- -------------------------------------------------------------------
Switzerland 6.8
- -------------------------------------------------------------------
United Kingdom 9.7
- -------------------------------------------------------------------
United States 4.1
- -------------------------------------------------------------------
Short-Term Investments 23.9
- -------------------------------------------------------------------
Other Assets & Liabilities -22.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 12.6%
- -------------------------------------------------------------------
Capital Goods 9.3
- -------------------------------------------------------------------
Consumer Cyclical 16.4
- -------------------------------------------------------------------
Consumer Staples 3.5
- -------------------------------------------------------------------
Energy 3.4
- -------------------------------------------------------------------
Finance 20.6
- -------------------------------------------------------------------
Health Care 8.4
- -------------------------------------------------------------------
Services 7.7
- -------------------------------------------------------------------
Technology 11.5
- -------------------------------------------------------------------
Transportation 4.7
- -------------------------------------------------------------------
Utilities 0.6
- -------------------------------------------------------------------
Short-Term Investments 23.9
- -------------------------------------------------------------------
Other Assets & Liabilities -22.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
54
The Hartford MidCap Fund**
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(3) 12/31/97 - 10/31/06
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
10442 11184
10669 11388
10291 10876
10849 10944
10669 10520
8581 8562
9110 9361
10/98 9866 10197
10480 10706
11624 12000
11907 11533
11378 10929
12342 11234
13277 12120
13438 12173
14358 12825
13951 12552
13753 12122
13450 11748
10/99 14235 12346
14991 12994
17455 13766
17406 13379
20126 14315
21353 15513
20077 14972
19026 14785
20929 15002
21102 15239
23347 16940
23053 16824
10/00 22778 16254
20236 15027
21795 16177
22106 16537
20838 15593
19079 14434
20871 16026
21216 16399
21138 16333
20681 16090
19701 15563
17350 13628
10/01 18464 14230
19968 15289
20782 16079
20403 15995
20525 16015
21662 17160
21383 17080
21495 16791
20146 15562
18040 14054
17951 14126
16425 12988
10/02 17272 13550
18843 14334
17662 13745
17416 13344
17260 13026
17394 13136
18809 14089
20369 15257
20492 15451
20670 16000
21617 16726
21160 16469
10/03 22932 17715
23356 18332
23991 18641
24537 19045
24760 19503
24626 19585
23946 18943
24269 19335
24838 19776
23623 18853
23579 18803
24671 19360
10/04 25194 19670
26724 20841
27816 21714
27304 21160
27975 21870
27566 21628
26621 20787
28146 22039
29158 22550
30398 23734
29909 23470
30421 23650
10/05 29943 23142
31887 24273
32335 24440
34129 25881
34197 25664
34822 26304
35285 26675
33804 25471
33328 25477
32472 24751
33084 25034
33301 25202
10/06 34387 26250
</Table>
<Table>
--- MIDCAP FUND --- S&P MIDCAP 400 INDEX
$9,450 starting value $10,000 starting value
$34,387 ending value $26,250 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.
You cannot invest directly in an 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 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
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -------------------------------------------------------------
MidCap A# 12/31/1997 14.84% 13.24% 15.75%
- -------------------------------------------------------------
MidCap A## 12/31/1997 8.52% 11.96% 15.01%
- -------------------------------------------------------------
MidCap B# 12/31/1997 13.97% 12.41% NA*
- -------------------------------------------------------------
MidCap B## 12/31/1997 8.97% 12.16% NA*
- -------------------------------------------------------------
MidCap C# 12/31/1997 14.06% 12.50% 14.98%
- -------------------------------------------------------------
MidCap C## 12/31/1997 13.06% 12.50% 14.98%
- -------------------------------------------------------------
MidCap Y# 12/31/1997 15.31% 13.81% 16.30%
- -------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
* Since 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.
** 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.
The Fund will continue to offer and sell shares: (1)
through ACH and other similar systematic investment
facilities to investors who established plans to invest
through such facilities prior to August 16, 2004, (2) for
reinvestment of capital gains distributions and income
dividends, and (3) to certain qualified retirement plans
that include (or offered) the Fund as an investment option
prior to August 16, 2004.
The Fund continues to pay 12b-1 fees. These fees are paid
for ongoing shareholder services, to compensate brokers for
past sales to reimburse the Fund's distributor for
commissions paid in connection with past sales.
(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 shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Mid Cap Fund returned 14.84%, before sales
charges, for the twelve-month period ended October 31, 2006, outperforming its
benchmark, the S&P MidCap 400 Index, which returned 13.43% for the same period.
The Fund also outperformed the 14.46 % return of the average fund in the Lipper
Mid-Cap Core Funds peer group, a group of funds with investment strategies
similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The twelve months ended October 31, 2006 were subject to significant volatility.
2005 ended on a positive note as markets were helped by falling energy prices
and waning inflationary pressures. The markets generally moved higher in the
first quarter of 2006, supported by strength in corporate earnings, a
solidifying global economy, and benign inflation but then moved lower during the
2nd quarter, driven by inflationary fears, higher interest rates, and concerns
about a slowing domestic economy. Broad equity markets increased during the
third quarter as declining energy prices and a halt in interest rate hikes by
the Federal Reserve offset concerns of a slowing housing market. The fiscal year
closed on a high note, as markets continued to rise in October.
Positive contribution to Fund performance came from favorable stock selection in
several sectors, including Consumer Discretionary, Health Care and
Telecommunications. On both a relative and absolute basis, American Tower
Corporation (Telecommunication Services) was the top contributor to the Fund's
performance during the period as tower operators benefited from cell phone
companies' increased spending to support more subscribers, enhanced coverage,
and upgrading of networks to 3G technologies. Additional relative and absolute
performance contribution came from Manor Care Inc (Health Care) a long-term care
center owner
55
- --------------------------------------------------------------------------------
and operator benefiting from high occupancy rates and improved private pay
volumes, and Cameco Corp (Energy), a Uranium producer that is benefiting from
limited supply and a high demand for the commodity.
Negative contribution to Fund performance came primarily from stock selection in
the Information Technology sector where semiconductor stocks generally suffered
from slowing end user demand and stock options inquiries. Four significant
detractors from performance in the Information Technology sector were MEMC
Electronic Materials, Linear Technology Corp, Fairchild Semiconductor
International, and Cognos Inc. Semiconductor company MEMC Electronic Materials
detracted from the Fund's relative performance during the period due both to
price appreciation early in the year when we did not hold the stock and a stock
price decline after we had initiated the position. The stock that detracted most
on both a relative and absolute basis was within the Media sector, Sirius
Satellite. Recent deceleration in demand, particularly in retail sales, and an
up-tick in churn raised investor concerns about the satellite radio company. We
eliminated the stock due to concerns about the long-term sustainability of
customer growth at current monthly pricing levels. Another significant detractor
was Coventry Health Care (Health Care), whose stock fell over the period as the
industry confronted slowing commercial growth and Medicaid funding changes.
WHAT IS THE OUTLOOK?
We continue to expect slower economic growth for the remainder of the year. The
Fund retains an overweight to Industrials, where exposure favors commercial
services companies. The Fund's overweight to Consumer Discretionary is largely
comprised of a collection of media, retailing, and consumer services stocks. The
Fund's weight in Consumer Staples rose with new purchases of household &
personal products companies, although the Fund remains underweight overall in
the sector.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.0%
- -------------------------------------------------------------------
Capital Goods 3.4
- -------------------------------------------------------------------
Consumer Cyclical 16.6
- -------------------------------------------------------------------
Consumer Staples 2.3
- -------------------------------------------------------------------
Energy 6.0
- -------------------------------------------------------------------
Finance 12.7
- -------------------------------------------------------------------
Health Care 8.6
- -------------------------------------------------------------------
Services 20.4
- -------------------------------------------------------------------
Technology 14.8
- -------------------------------------------------------------------
Transportation 1.3
- -------------------------------------------------------------------
Utilities 3.4
- -------------------------------------------------------------------
Short-Term Investments 7.1
- -------------------------------------------------------------------
Other Assets & Liabilities -2.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
56
The Hartford MidCap Growth Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(2) 7/31/06 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MIDCAP GROWTH FUND RUSSELL MIDCAP GROWTH INDEX
------------------ ---------------------------
7/31/06 9450 10000
8/06 9658 10230
9/06 9677 10464
10/06 10045 10866
</Table>
<Table>
--- MIDCAP GROWTH FUND --- RUSSELL MIDCAP GROWTH INDEX
$9,450 starting value $10,000 starting value
$10,045 ending value $10,866 ending value
</Table>
RUSSELL MIDCAP GROWTH INDEX measures the performance of those Russell MidCap
companies with higher price-to-book ratios and higher forecasted growth values.
The stocks are members of the Russell 1000 Growth Index.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE INCEPTION
- ---------------------------------------------
MidCap Growth A# 7/31/2006 6.30%
- ---------------------------------------------
MidCap Growth A## 7/31/2006 0.45%
- ---------------------------------------------
MidCap Growth B# 7/31/2006 6.10%
- ---------------------------------------------
MidCap Growth B## 7/31/2006 1.10%
- ---------------------------------------------
MidCap Growth C# 7/31/2006 6.10%
- ---------------------------------------------
MidCap Growth C## 7/31/2006 5.10%
- ---------------------------------------------
MidCap Growth Y# 7/31/2006 6.40%
- ---------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGER
MARK WATERHOUSE
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford MidCap Growth Fund returned 6.30%, before
sales charges, for the three-month period ended October 31, 2006, versus the
returns of 7.04% for the Lipper MidCap Growth Funds peer group and 8.65% for the
Russell MidCap Growth index.
WHY DID THE FUND PERFORM THIS WAY?
Sector allocation accounted for approximately half of the overall relative
underperformance (i.e. performance of the Fund as measured against the
benchmark) during the period with approximately two-thirds of this variance
coming from our underweighting (i.e. the Fund's sector position was less than
the benchmark position) of the Consumer Discretionary sector. Consumer
Discretionary increased by 17% during the period and was the best performing
sector in the benchmark while our 13% average weighting of the sector was well
below the 22% average weighting of the benchmark. In Consumer Discretionary, we
took a defensive approach to both sector allocation and stock selection
believing that consumer spending would be negatively impacted by the housing
slowdown and weaker economy. While the housing market did slow considerably as
we expected -- we did not predict the rapid decline in energy prices in
September which propelled more aggressive retailing stocks to outperform and we
did not participate in the strength of that group. Our overweight in Health Care
(the second worst performing sector during the period) and our underweight of
Information Technology (third best performing sector), also hurt us from a
sector allocation perspective.
Our stock selection accounted for half of the relative underperformance during
the period owing to challenged selection the Health Care (amplified by our
overweight), Financials, Industrials and Consumer Discretionary sectors. We had
very strong stock selection in Information Technology during the period, but not
enough to offset the weakness in all of these other sectors. In Health Care, our
concentration in the more defensive services segments of the sector (such as
diagnostics and benefit management) was not a winning formula for this
particular three-month period as investors began to fear that future
uncertainties from the then pending November elections could be potentially
disruptive to regulated segments of Health Care. In Financials and Industrials,
our picks lagged for specific reasons.
In Summary, we felt this was an unusual three-month period in which we had
"double-whammies" in both Consumer and Health Care with both sector allocation
and stock selection hurting us at the same time. Additionally, our strong stock
selection in
57
- --------------------------------------------------------------------------------
Information Technology was entirely offset by a lack of winning picks in
Financials and Industrials.
WHAT IS THE OUTLOOK?
We take a long-term approach in identifying growth industries and the
best-positioned companies in those industries with earnings power that we
believe justifies higher stock prices. We can be wrong in the short term as
investors react to near term data points that do not necessarily impair long
term earnings power. We believe the foreseeable environment of more moderate
economic growth, sustained low interest rates (by historical standards) and
contained inflation is setting up to be an attractive environment for mid cap
growth stocks in 2007 and 2008, particularly in the Health Care, Information
Technology and Services sectors. We continue to believe the Consumer
Discretionary sector will face "headwinds" in the near term. Overall, we are
optimistic that mid cap growth will be an attractive asset class over the next
24 months and we are confident that our approach of identifying the best
positioned companies with sustainable, long-term earnings power will suit our
investors well over the long term.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.4%
- -------------------------------------------------------------------
Capital Goods 3.5
- -------------------------------------------------------------------
Consumer Cyclical 7.9
- -------------------------------------------------------------------
Consumer Staples 4.5
- -------------------------------------------------------------------
Energy 4.1
- -------------------------------------------------------------------
Finance 14.6
- -------------------------------------------------------------------
Health Care 13.6
- -------------------------------------------------------------------
Services 13.8
- -------------------------------------------------------------------
Technology 24.1
- -------------------------------------------------------------------
Transportation 1.1
- -------------------------------------------------------------------
Utilities 4.2
- -------------------------------------------------------------------
Short-Term Investments 2.8
- -------------------------------------------------------------------
Other Assets & Liabilities -0.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
58
The Hartford MidCap Value Fund*
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL
APPRECIATION.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/06
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
9374 10337
9091 10248
7815 9111
10/01 8014 9306
8685 10022
9384 10593
9422 10690
9592 10823
10121 11493
10121 11690
9941 11498
9412 11092
8429 9809
8420 9862
7522 9055
10/02 7881 9184
8524 9854
8118 9546
7938 9258
7758 9030
7711 9091
8429 9915
9214 10832
9318 11026
9630 11505
10074 11968
10026 11883
10/03 10697 12791
11075 13313
11567 13836
11746 14284
11992 14574
11964 14690
11538 13921
11756 14201
12228 14765
11699 14171
11501 14349
11916 14802
10/04 12181 15070
12865 16302
13365 16821
12865 16280
13405 16686
13232 16464
12569 15848
13232 16727
13538 17341
14140 18269
14109 17937
14038 17957
10/05 13558 17427
14389 18141
14649 18123
15597 19315
15564 19341
15789 20019
16151 20098
15631 19403
15552 19512
15202 19242
15643 19754
15756 19955
10/06 16455 20890
</Table>
<Table>
--- MIDCAP VALUE FUND --- RUSSELL 2500 VALUE INDEX
$9,450 starting value $10,000 starting value
$16,455 ending value $20,890 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.
You cannot invest directly in an 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 the investment adviser, without which performance
would have been lower. For information on current expense
waivers/reimbursements, please see the prospectus.
PORTFOLIO MANAGER
JAMES N. MORDY
Senior Vice President, Partner
AVERAGE ANNUAL TOTAL RETURNS(1) (as of 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------
MidCap Value A# 4/30/2001 21.37% 15.47% 10.60%
- --------------------------------------------------------------
MidCap Value A## 4/30/2001 14.69% 14.17% 9.47%
- --------------------------------------------------------------
MidCap Value B# 4/30/2001 20.46% 14.62% 9.81%
- --------------------------------------------------------------
MidCap Value B## 4/30/2001 15.46% 14.39% 9.69%
- --------------------------------------------------------------
MidCap Value C# 4/30/2001 20.45% 14.62% 9.81%
- --------------------------------------------------------------
MidCap Value C## 4/30/2001 19.45% 14.62% 9.81%
- --------------------------------------------------------------
MidCap Value Y# 4/30/2001 21.90% 16.00% 11.11%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* As of August 16, 2004, the Fund no longer offers Class A, B
and C shares except as follows: The Fund will continue to
offer and sell shares: (1) through ACH and other similar
systematic investors who established plans to invest through
such facilities prior to August 16, 2004 and (2) for
reinvestment of capital gains distributions and income
dividends.
The Fund continues to pay 12b-1 fees. These fees are paid for
ongoing shareholder services, to compensate brokers for past
sales and to reimburse the Fund's distributor for commissions
paid in connection with past sales.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford MidCap Value Fund returned 21.37%, before
sales charges, for the twelve-month period ended October 31, 2006, outperforming
its benchmark, the Russell 2500 Value Index, which returned 19.87% for the same
period. The Fund outperformed the 16.81 % return of the average fund in the
Lipper Mid-Cap Value Fund peer group, a group of funds with investment
strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
During the period, US equities posted strong positive returns supporting the
Fund's positive, absolute returns. Mid cap stocks trailed small and larger cap
stocks during the period, as measured by the S&P 400 MidCap, Russell 2000 and
S&P 500 Indices, respectively. Value stocks continued to outperform growth
during the period, as measured by the Russell 1000 Growth and Russell 1000 Value
Indices, driven by the relative strength of sectors like Telecommunication
Services, Materials, and Industrials which led the way. Conversely, Energy,
Health Care and Consumer Discretionary lagged, on a relative basis, despite
posting positive double-digit returns.
The Fund's outperformance relative to the benchmark was due primarily to strong
stock selection within Information Technology, Materials, Consumer Discretionary
and Industrials. The top three contributors to relative performance (i.e.
performance of the Fund as measured against the benchmark) were SeaGate
Technology (Information Technology), Inco (Materials) and Acuity Brands
(Industrials). Disk drive maker SeaGate's shares benefited from healthy
fundamentals and investor anticipation of the benefits of their acquisition of a
competitor. Inco's shares benefited from a takeout offer by Teck Cominco, a
competitor. Acuity Brands' shares benefited from the company's favorable
non-residential end markets, where new construction has been strong. The Fund
eliminated its profitable positions in SeaGate and Inco during the period.
The three largest detractors of relative performance were biotechnology company
Impax Lab, whose shares fell due to unresolved accounting issues, crude oil and
natural gas exploration and production company Newfield Exploration, whose
shares fell due to a recent pullback in energy prices and compact disc maker
Cinram, whose shares declined on concerns that their largest shareholder, a
recently failed hedge fund, will be forced into a disorderly liquidation of
their position. The Fund held its positions in all three names at the end of the
period.
WHAT IS THE OUTLOOK?
The US economy advanced at a healthy pace during the period but we do not
believe this pace will be sustainable as the effects of a slowdown in housing
and credit cycle tightening are felt. We
59
- --------------------------------------------------------------------------------
expect US economic growth to slow to the 2-3% range in 2007 driven by a slowdown
in corporate profits growth (to single-digit levels) and a deceleration in
consumer spending to levels that are consistent with income growth as mortgage
equity withdrawal is greatly reduced in light of higher US interest rates.
As of the end of the period, Industrials, Health Care, Information Technology,
and Materials were our largest overweight sectors. The Fund decreased its
holdings in the Consumer Discretionary sector during the period; however, we
believe that certain specialty retailers that are not overly dependent on the
consumer, and some casual dining restaurants, which offer significant value to
the consumer on their menus, have some appeal in more challenging times. The
Fund's largest underweight sectors remain Financials, particularly REITs, which
are interest-rate sensitive and Utilities, where we find valuations to be
challenging.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 13.2%
- -------------------------------------------------------------------
Capital Goods 13.1
- -------------------------------------------------------------------
Consumer Cyclical 9.3
- -------------------------------------------------------------------
Consumer Staples 3.7
- -------------------------------------------------------------------
Energy 3.8
- -------------------------------------------------------------------
Finance 17.7
- -------------------------------------------------------------------
Health Care 7.3
- -------------------------------------------------------------------
Services 9.8
- -------------------------------------------------------------------
Technology 13.5
- -------------------------------------------------------------------
Transportation 2.3
- -------------------------------------------------------------------
Utilities 5.4
- -------------------------------------------------------------------
Short-Term Investments 8.9
- -------------------------------------------------------------------
Other Assets & Liabilities -8.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
60
The Hartford Retirement Income Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT OBJECTIVE -- SEEKS CURRENT INCOME AND
SECONDARILY, CAPITAL PRESERVATION.
PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
RETIREMENT INCOME FUND S&P 500 INDEX AGGREGATE BOND INDEX
---------------------- ------------- --------------------
9/30/05 9450 10000 10000
10/05 9334 9833 9921
11/05 9383 10205 9965
12/05 9441 10208 10059
1/06 9508 10479 10060
2/06 9493 10507 10093
3/06 9482 10638 9994
4/06 9551 10780 9976
5/06 9459 10471 9966
6/06 9450 10484 9987
7/06 9492 10549 10122
8/06 9626 10800 10277
9/06 9687 11078 10367
10/06 9803 11439 10436
</Table>
<Table>
--- RETIREMENT INCOME FUND -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
$9,450 starting value BOND INDEX $10,000 starting value
$9,803 ending value $10,000 starting value $11,439 ending value
$10,436 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.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ---------------------------------------------------------------
Retirement Income A# 9/30/2005 5.03% 3.45%
- ---------------------------------------------------------------
Retirement Income A## 9/30/2005 -0.75% -1.81%
- ---------------------------------------------------------------
Retirement Income B# 9/30/2005 4.21% 2.63%
- ---------------------------------------------------------------
Retirement Income B## 9/30/2005 -0.65% -0.90%
- ---------------------------------------------------------------
Retirement Income C# 9/30/2005 4.42% 2.83%
- ---------------------------------------------------------------
Retirement Income C## 9/30/2005 3.42% 2.83%
- ---------------------------------------------------------------
Retirement Income Y# 9/30/2005 5.55% 3.84%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM:
In this environment, The Hartford Retirement Income Fund (Class A) gained 5.03%,
before sales charges, for the year ended October, 2006, versus the returns of
9.84% return of the Lipper Mixed-Asset Target Allocation Conservative Funds peer
group, 5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for
the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these short- and intermediate-term bonds declined in response. In
contrast, long-term bond yields did not rise as substantially due to overseas
demand and expectations that the Fed could keep inflation low over the long run.
The result was a yield curve that remained flat or even inverted (i.e. bonds
with longer term maturities having a lower interest rate than bonds with shorter
maturities) through most of the fiscal year. However, by August of 2006, the Fed
became concerned that economic growth was slowing, in part due to the retreating
housing market. As such, the Fed found itself in a conundrum as to whether it
should continue raising interest rates to restrain inflation, or to pause in the
tightening cycle to assess prospects for further economic growth. Since changes
in the rate of inflation often lag changes in economic conditions, the Fed left
rates unchanged at its two most recent meetings while it waited for more data
before taking action. Sensing that the Fed would continue easing monetary
policy, the bond and equity markets rallied in the last months of the fiscal
year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by favorable currency movements and strengthening foreign
61
- --------------------------------------------------------------------------------
economies, the international and emerging market equity indices outperformed the
major domestic indices for the year. Fortunately, the bond rally over the last
few months offset the negative impact of rising interest rates earlier in the
year, allowing the major bond sectors to finish with positive returns for the
period. During much of the year, fixed income investors were unable to achieve
higher levels of yield by going out longer on the yield curve (i.e. purchasing
bonds with a longer maturity date). Thus, many bond investors shifted to lower
quality and foreign issues as they sought greater yield. During the period, the
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. However, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period, resulting in a substantial cost to relative performance (i.e. fund
performance compared to the fund benchmark's performance). The Fund did,
however, benefit from the out-of-index exposure to "spread" sectors and higher
yielding securities. With the Dow Jones Industrial reaching its all-time high
late in the period, the Fund also generated positive gains from its allocation
to stocks. The Fund is constructed such that it has exposure to the various
styles of equities, including international, mid-cap and small cap stocks. This
diversification is expected to enhance the long-term return and risk
characteristics of the Fund. This added diversification benefited the Fund
through most of the year. However, since domestic, large cap stocks dominated
the stock rally late in the fiscal year, the Fund's exposure to foreign and
smaller capitalization equities partially offset some of their earlier
contributions. Overall the Fund's allocations were a positive factor for Fund
performance. However, stock selection at the individual fund level and within
the underlying funds appeared to detract from performance, in part due to the
timing of cash flows that detracted from return.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Federal Reserve is still concerned with inflation
and that policy decisions will favor price stability as long as economic growth
does not decline dramatically. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the average
U.S. consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 7.3%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 5.8
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 2.3
- -------------------------------------------------------------------
Hartford Floating Rate Fund, Class Y 6.3
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 2.2
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 4.0
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 0.3
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 13.8
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 0.6
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 1.7
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 0.8
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 0.9
- -------------------------------------------------------------------
Hartford Money Market Fund, Class Y 1.4
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 0.3
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 2.8
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 24.9
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 1.4
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 18.9
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 1.3
- -------------------------------------------------------------------
Other Assets & Liabilities 3.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
62
The Hartford Select MidCap Growth Fund
(subadvised by: Chartwell Investment Partners, L.P.
Goldman Sachs Asset Management, L.P.
Northern Capital Management, LLC)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 1/1/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SELECT MIDCAP GROWTH FUND RUSSELL MIDCAP GROWTH INDEX
------------------------- ---------------------------
12/31/04 9450 10000
9168 9732
2/05 9272 9979
9149 9833
4/05 8717 9444
9168 9985
6/05 9290 10170
9779 10764
8/05 9732 10698
9826 10837
10/05 9525 10518
10081 11088
12/05 10110 11210
10660 11881
2/06 10650 11735
11001 12063
4/06 11039 12114
10384 11544
6/06 10327 11497
9910 11085
8/06 10128 11340
10403 11599
10/06 10698 12044
</Table>
<Table>
--- SELECT MIDCAP GROWTH FUND --- RUSSELL MIDCAP GROWTH INDEX
$9,450 starting value $10,000 starting value
$10,698 ending value $12,044 ending value
</Table>
RUSSELL MIDCAP GROWTH INDEX is an unmanaged index measuring the performance of
the mid-size company segment of the U.S. market.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------------
Select MidCap Gro A# 1/1/2005 12.31% 7.01%
- ----------------------------------------------------------
Select MidCap Gro A## 1/1/2005 6.13% 3.75%
- ----------------------------------------------------------
Select MidCap Gro B# 1/1/2005 11.58% 6.29%
- ----------------------------------------------------------
Select MidCap Gro B## 1/1/2005 6.58% 4.19%
- ----------------------------------------------------------
Select MidCap Gro C# 1/1/2005 11.48% 6.23%
- ----------------------------------------------------------
Select MidCap Gro C## 1/1/2005 10.48% 6.23%
- ----------------------------------------------------------
Select MidCap Gro Y# 1/1/2005 12.77% 7.42%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
<Table>
CHARTWELL INVESTMENT PARTNERS, L.P. GOLDMAN SACHS ASSET MANAGEMENT, L.P. NORTHERN CAPITAL MANAGEMENT, LLC
EDWARD N. ANTOIAN, DAVID G. SHELL, DANIEL T. MURPHY,
Senior Portfolio Manager Managing Director and Chief Investment President and Chief Investment Officer
Officer
MARK J. CUNNEEN, BRIAN A. HELLMER,
Senior Portfolio Manager STEVEN M. BARRY, Senior Vice President and Director of
Managing Director and Chief Investment Research
Officer
GREGORY H. EKIZIAN,
Managing Director and Chief Investment
Officer
</Table>
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Select MidCap Growth Class A, before sales charge, returned 12.31%
for the year ended October 31, 2006. The Fund underperformed the 14.51% return
of the Russell MidCap Growth Index and outperformed the 11.52% return of the
Lipper Mid Cap Growth peer group average.
WHY DID THE FUND PERFORM THIS WAY?
The year ended October 31, 2006 was subject to significant market volatility.
During the period, mid cap growth stocks underperformed mid cap value stocks as
measured by the Russell MidCap Growth and Russell MidCap Value indices. Broad
equity markets increased during the third quarter as declining energy prices and
a halt in interest rate hikes by the Federal Reserve offset concerns of a
slowing housing market. The fiscal year closed on a high note, as markets
continued to rise in October. The best performing sectors within the Russell
MidCap Growth index were Information Technology, Materials and Financials.
Energy, Healthcare and Consumer Discretionary, while still posting positive
returns, were the laggards.
Stock selection remained the primary driver of our performance during the
period. Overall, Information Technology was our largest contributor to relative
performance (i.e. performance of the Fund as measured against the benchmark). In
particular, MEMC Electronic Materials (a maker of semiconductor wafers), Akamai
Technologies (a leader in distributed computing services, Amphenol (a maker of
cable and connectors used in computers and networking equipment), and Research
In Motion (wireless communications) were top performers as a result of posting
strong financial results. Research In Motion has dominant share in the
enterprise mobile email market and we believe it is well-positioned to grow its
customer base and penetrate the retail market. We believe the company's growth
prospects remain strong as the wireless handheld market broadens and continues
to develop.
63
- --------------------------------------------------------------------------------
Another top contributor was Alliance Data Systems, a provider of transaction,
credit and marketing services. Alliance was up over 70% during the period,
hitting a new high for the year. The company announced that fiscal first-quarter
earnings rose 52% from a year-ago and growth was balanced across all three of
its business segments.
A portion of the positive stock selection was offset by stock specific
shortfalls in several areas. Within Media Services, XM Satellite Radio Holdings,
Inc. was down significantly, despite a revenue increase of over 100% driven by
strong subscriber growth during the first quarter. Its shares fell after missing
subscriber guidance estimates and lowering the company outlook for 2006. Other
stock detractors included Cogent and Urban Outfitters. Shares of Cogent, a
provider of automated fingerprint identification systems, were weak during the
period. The company's decreased visibility surrounding some large orders in 2006
resulted in several analyst downgrades. Shares of Urban Outfitters fell after
lower than expected earnings and inventory buildups dogged the company during
this period.
WHAT IS THE OUTLOOK?
On December 4, 2006, Hartford Investment Management Company (HIMCO) became
sub-adviser for the Fund. We, Hartford Investment Financial Services as the
investment manager of the Fund, believe that replacing Chartwell, Northern
Capital and Goldman Sachs with HIMCO will benefit Fund shareholders by: (1)
reducing costs, due to a lower management fee schedule; (2) providing access to
a talented and experienced portfolio manager who has a proven track record and a
seasoned team of investment professionals; and (3) increasing the potential for
economies of scale by providing greater opportunities for additional asset
growth.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 4.4%
- -------------------------------------------------------------------
Capital Goods 8.5
- -------------------------------------------------------------------
Consumer Cyclical 9.9
- -------------------------------------------------------------------
Consumer Staples 1.2
- -------------------------------------------------------------------
Energy 5.0
- -------------------------------------------------------------------
Finance 10.0
- -------------------------------------------------------------------
Health Care 12.1
- -------------------------------------------------------------------
Services 14.7
- -------------------------------------------------------------------
Technology 23.4
- -------------------------------------------------------------------
Transportation 2.8
- -------------------------------------------------------------------
Utilities 0.8
- -------------------------------------------------------------------
Short-Term Investments 3.2
- -------------------------------------------------------------------
Other Assets & Liabilities 4.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
64
The Hartford Select MidCap Value Fund
(subadvised by: Artisan Partners Limited Partnership
Cramer Rosenthal McGlynn, LLC
Sterling Capital Management, LLC)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 4/29/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SELECT MIDCAP VALUE FUND RUSSELL MIDCAP VALUE INDEX
------------------------ --------------------------
4/29/05 9450 10000
9847 10413
6/05 10074 10754
10452 11266
8/05 10423 11178
10518 11330
10/05 10197 10983
10607 11370
12/05 10673 11481
11050 11979
2/06 11098 12092
11379 12356
4/06 11543 12475
11204 12214
6/06 11156 12287
10992 12217
8/06 11301 12560
11533 12720
10/06 11997 13236
</Table>
<Table>
--- SELECT MIDCAP VALUE FUND --- RUSSELL MIDCAP VALUE INDEX
$9,450 starting value $10,000 starting value
$11,997 ending value $13,236 ending value
</Table>
RUSSELL MIDCAP VALUE INDEX measures the performance of those Russell Midcap
companies with lower price-to-book ratios and lower forecasted growth rate.
These stocks are also members of the Russell 1000 Value Index.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------------
Select MidCap Val A# 4/29/2005 17.66% 17.16%
- ----------------------------------------------------------
Select MidCap Val A## 4/29/2005 11.19% 12.85%
- ----------------------------------------------------------
Select MidCap Val B# 4/29/2005 16.79% 16.30%
- ----------------------------------------------------------
Select MidCap Val B## 4/29/2005 11.79% 13.83%
- ----------------------------------------------------------
Select MidCap Val C# 4/29/2005 16.79% 16.30%
- ----------------------------------------------------------
Select MidCap Val C## 4/29/2005 15.79% 16.30%
- ----------------------------------------------------------
Select MidCap Val Y# 4/29/2005 17.79% 17.39%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
<Table>
ARTISAN PARTNERS LIMITED PARTNERSHIP CRAMER ROSENTHAL MCGLYNN, LLC STERLING CAPITAL MANAGEMENT, LLC
James C. Kieffer, Jay B. Abramson, Patrick Rau,
Managing Director President, Chief Investment Officer and Director and Principal, Equity Portfolio
Equity Portfolio Manager Manager
Scott C. Satterwhite,
Managing Director Robert Rewey III, CFA, Timothy Beyer,
Vice President, Equity Portfolio Manager Director and Principal, Equity Portfolio
and Senior Research Analyst Manager
</Table>
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Select MidCap Value Class A, before sales charges, returned 17.66%
for the year ended October 31, 2006. The Fund underperformed the 20.51% return
of the Russell MidCap Value Index and outperformed the 16.81% return of the
Lipper Mid Cap Value peer group average.
WHY DID THE FUND PERFORM THIS WAY?
For the period October 31, 2005 to October 31, 2006, domestic equities posted
strong positive returns. Mid cap stocks trailed small and larger cap stocks
during the period, as measured by the S&P 400 MidCap, Russell 2000 and S&P 500
Indices, respectively. Value stocks continued to outperform growth during the
period, as measured by the Russell 1000 Growth and Russell 1000 Value Indices,
driven by the relative strength of sectors like Telecommunication Services,
Materials, and Industrials which led the way. Conversely, Energy and Health Care
lagged, on a relative basis, despite posting positive double-digit returns. The
last three months of the fiscal year were particularly detrimental to energy
stocks as oil prices declined considerably.
Stock selection remained the primary driver of our performance during the
period. Overall, the Fund was generally supported by the returns of in Consumer
Discretionary. In particular, Rent-A-Center, Marvel Entertainment, Dollar Tree
and Kohl's were strong performers in this area. Rent-A-Center is the largest
rent-to-own operator in the United States. During the period, Rent-A-Center
experienced improved sales trends, benefited from its store consolidation plan
and had an aggressive share repurchase program. Marvel Entertainment is a
globally recognized character franchise with a library of over 5,000 characters.
During the period, Marvel regained the movie rights to Hulk, its second-largest
character franchise behind Spider-Man licensing, and experienced an increase in
publishing and toy sales. Dollar Tree's
65
- --------------------------------------------------------------------------------
sales results benefited from a number of in store initiatives including the
acceptance of debit and credit cards, a focus on consumable items that drive
store traffic, and better inventory positioning from a new point-of-sales
system. Kohl's, a specialty department store and one of our largest holdings,
increased as a result of strong sales and income growth.
Other top contributors to performance for the period included NCR (business
technology) and CR Bard (medical products). NCR shares rose, as more investors
began to appreciate hidden value of its data warehousing division. CR Bard had
double digit revenue growth behind strong performance in nearly all of their
product categories.
Fund detractors include Lear (supplier of automotive interior systems), Deluxe
Checks (financial services) and Boston Scientific (medical industry). General
Motor's financial difficulties, weak near-term results, and liquidity fears sent
Lear sharply lower during the quarter. We sold this position in April, 2006.
Deluxe Checks experienced price competition for checks and its financial
position weakened. We have also sold this security. Boston Scientific struggled
with additional product recalls related to the newly acquired Guidant business
and concerns over the long term safety profile of drug coated stents. We have
reduced our position in response to these issues.
WHAT IS THE OUTLOOK?
On December 4, 2006, Hartford Investment Management Company (HIMCO) became
sub-adviser for the Fund. We, Hartford Investment Financial Services as the
investment adviser of the Fund, believe that replacing Artisan, CRM and Sterling
with HIMCO will benefit Fund shareholders by: (1) reducing costs, due to a lower
management fee schedule; (2) providing access to a talented and experienced
portfolio manager who has a proven track record and a seasoned team of
investment professionals; and (3) increasing the potential for economies of
scale by providing greater opportunities for additional asset growth.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 6.0%
- -------------------------------------------------------------------
Capital Goods 4.0
- -------------------------------------------------------------------
Consumer Cyclical 13.2
- -------------------------------------------------------------------
Consumer Staples 1.4
- -------------------------------------------------------------------
Energy 7.4
- -------------------------------------------------------------------
Finance 24.6
- -------------------------------------------------------------------
Health Care 5.1
- -------------------------------------------------------------------
Services 13.3
- -------------------------------------------------------------------
Technology 12.7
- -------------------------------------------------------------------
Transportation 1.9
- -------------------------------------------------------------------
Utilities 4.9
- -------------------------------------------------------------------
Short-Term Investments 4.4
- -------------------------------------------------------------------
Other Assets & Liabilities 1.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
66
The Hartford Select SmallCap Growth Fund
(subadvised by: Jennison Associates LLC
Oberweis Asset Management, Inc.)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL
PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SELECT SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX
--------------------------- -------------------------
9/30/05 9450 10000
10/05 9053 9630
11/05 9488 10176
12/05 9393 10161
1/06 10319 11141
2/06 10055 11081
3/06 10575 11620
4/06 10594 11586
5/06 9838 10771
6/06 9734 10777
7/06 9204 10218
8/06 9431 10517
9/06 9497 10588
10/06 9951 11274
</Table>
<Table>
--- SELECT SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$9,951 ending value $11,274 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ---------------------------------------------------------------
Select SmallCap Gro A# 9/30/2005 9.92% 4.88%
- ---------------------------------------------------------------
Select SmallCap Gro A## 9/30/2005 3.87% -0.45%
- ---------------------------------------------------------------
Select SmallCap Gro B# 9/30/2005 9.30% 4.23%
- ---------------------------------------------------------------
Select SmallCap Gro B## 9/30/2005 4.30% 0.55%
- ---------------------------------------------------------------
Select SmallCap Gro C# 9/30/2005 9.20% 4.14%
- ---------------------------------------------------------------
Select SmallCap Gro C## 9/30/2005 8.20% 4.14%
- ---------------------------------------------------------------
Select SmallCap Gro Y# 9/30/2005 10.54% 5.43%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
<Table>
JENNISON ASSOCIATES LLC OBERWEIS ASSET MANAGEMENT, INC.
John P. Mullman, CFA James W. Oberweis, CFA
Senior Portfolio Manager President, Portfolio Manager
Jason Swiatek, CFA
Portfolio Manager
</Table>
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of the Hartford Select SmallCap Growth Fund, before sales
charge, returned 9.92% for the year ended October 31, 2006. The Fund
underperformed the 17.07% benchmark return of the Russell 2000 Growth Index and
the 12.82% return of the Lipper Small Cap Growth Funds peer group average.
WHY DID THE FUND PERFORM THIS WAY?
For the period October 31, 2005 to October 31, 2006, although small cap growth
stocks underperformed value stocks (as measured by the Russell 2000 Growth and
Russell 2000 Value indices), they were strong across all sectors. The best
performing small cap growth sectors within the index were Materials,
Industrials, Consumer Staples, Utilities and Telecommunications. Healthcare and
Information Technology, while still posting positive returns, were the laggards.
However, upon closer review of the Russell 2000 Growth Index, small cap stocks
with high rates of growth dramatically underperformed the benchmark and were
out-of-favor during the year. The Fund invests a portion of its assets in these
types of securities which was the primary cause for the underperformance during
the year.
Stock selection remained the significant driver of our performance during the
period. In particular, Equinix, Broadwing, Focus Media and Rackable Systems were
strong contributors to performance. Equinix provides electronic network services
where different kinds of networks can exchange data. The company reported
consistently strong earnings during the period. We believe that Equinix has a
unique franchise with an attractive business model, and should benefit from the
ongoing explosion of Internet traffic from a wide variety of sources. Shares of
Broadwing, which delivers innovative data, voice, and media solutions to
enterprises and service providers over a nationwide optical fiber-based network,
rose more than 135% over the reporting period as demand for Broadwing's
broadband services was strong. Focus Media, one of our largest holdings,
provides television display advertising in China. Focus Media returned over 100%
during the period as a result of strong earnings. Rackable manufactures
high-density, rack-mounted servers and storage systems for large scale data
centers.
67
- --------------------------------------------------------------------------------
Among the detractors from returns was biotechnology position CV Therapeutics. CV
Therapeutics, an emerging biotech company with focus on cardiovascular drugs,
fell as the company reported its net loss widened. Despite this recent weak
performance, we retain our confidence in the stock. We believe the company has
growth potential from its current pipeline and drugs awaiting approval. Other
detractors include Pharmanet (a global drug development services company) and
Blue Coat Systems (an internet security company). Pharmanet shares tumbled after
questions were raised about its drug testing practices while Blue Coat fell
after lowering its 2006 earnings guidance. We have sold out of our position in
Blue Coat.
WHAT IS THE OUTLOOK?
We remain constructive on the market overall and believe stocks are attractively
valued at current levels. The moderation of energy prices since July has reduced
inflationary pressure and, at least theoretically, increased consumers'
disposable income as we head into the all-important holiday season. A reduction
in inflation expectations should allow the Federal Reserve (the Fed) to continue
to stand pat with respect to monetary policy, and moderation in economic growth
might even prompt the Fed to reduce short-term interest rates sometime in 2007.
While the strength of the consumer was in doubt just a few months ago, lower
energy costs should allow stocks with consumer leverage to potentially exceed
expectations. We believe that an economic environment characterized by slower
but sustainable growth that allows the Fed to maintain the status quo would be
positive for equities in 2007.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.6%
- -------------------------------------------------------------------
Capital Goods 7.4
- -------------------------------------------------------------------
Consumer Cyclical 11.9
- -------------------------------------------------------------------
Energy 6.9
- -------------------------------------------------------------------
Finance 7.9
- -------------------------------------------------------------------
Health Care 10.3
- -------------------------------------------------------------------
Services 18.6
- -------------------------------------------------------------------
Technology 22.1
- -------------------------------------------------------------------
Transportation 2.3
- -------------------------------------------------------------------
Utilities 1.3
- -------------------------------------------------------------------
Short-Term Investments 4.7
- -------------------------------------------------------------------
Other Assets & Liabilities 1.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
68
The Hartford Select SmallCap Value Fund
(subadvised by: Kayne Anderson Rudnick Investment Management, LLC
Metropolitan West Capital Management, LLC
SSgA Funds Management, Inc.)
INVESTMENT OBJECTIVE -- SEEKS CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(2) 7/31/06 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SELECT SMALLCAP VALUE FUND RUSSELL 2000 VALUE INDEX
-------------------------- ------------------------
7/31/06 9450 10000
8/06 9667 10299
9/06 9800 10399
10/06 10357 10929
</Table>
<Table>
--- SELECT SMALLCAP VALUE FUND --- RUSSELL 2000 VALUE INDEX
$9,450 starting value $10,000 starting value
$10,357 ending value $10,929 ending value
</Table>
RUSSELL 2000 VALUE INDEX is a broad-based unmanaged index comprised of 2,000 of
the smallest U.S. domiciled company common stocks (on the basis of
capitalization) that are traded in the United States on the New York Stock
Exchange. American Stock Exchange and Nasdaq.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE INCEPTION
- -----------------------------------------------------
Select SmallCap Value A# 7/31/2006 9.60%
- -----------------------------------------------------
Select SmallCap Value A## 7/31/2006 3.57%
- -----------------------------------------------------
Select SmallCap Value B# 7/31/2006 9.30%
- -----------------------------------------------------
Select SmallCap Value B## 7/31/2006 4.30%
- -----------------------------------------------------
Select SmallCap Value C# 7/31/2006 9.30%
- -----------------------------------------------------
Select SmallCap Value C## 7/31/2006 8.30%
- -----------------------------------------------------
Select SmallCap Value Y# 7/31/2006 9.70%
- -----------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
KAYNE ANDERSON RUDNICK INVESTMENT
MANAGEMENT, LLC
ROBERT A. SCHWARZKOPF, CFA
Managing Director
SANDI L. GLEASON, CFA
METROPOLITAN WEST CAPITAL MANAGEMENT, LLC
GARY W. LISENBEE
President
SSGA FUNDS MANAGEMENT, INC.
RIC THOMAS, CFA
Principal
CHUCK MARTIN, CFA
Principal
JOHN O'CONNELL
Principal
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Select SmallCap Value Fund launched on July 31, 2006 and therefore
has a performance track record for only three months of the reporting period
ended October 31, 2006. During that time, the Class A shares of the Fund, before
sales charges, returned 9.60% for the period July 31, 2006 to October 31, 2006.
The Fund outperformed the 9.29% benchmark return of the Russell 2000 Value Index
and the 7.60% return of the Lipper Small Cap Value peer group average.
WHY DID THE FUND PERFORM THIS WAY?
In October, lower energy prices and solid earnings announcements supported
robust returns in the stock market as the Dow Jones set record highs. Since the
Fund's inception of July 31, 2006, it has outperformed the benchmark due to
positive stock selection. Small cap stocks have experienced sharp return swings
throughout 2006, and after a sluggish third quarter, they have continued their
general upward trend with a very strong performance in October. The top
performing index sectors were Telecommunication Services, Consumer Discretionary
and Consumer Staples. Energy and Utilities were the laggards.
Strong stock selection drove the outperformance for the Fund during the period.
Top contributors include Tempur-Pedic International (manufacturer of mattresses
and pillows), Business Objects (a business intelligence software provider) and
Manhattan Associates (a software provider). All of these stocks were up over 35
% during the brief period.
Within the Consumer Discretionary sector, Aftermarket Technology (logistics
services) was the primary detractor. Aftermarket Technology had been strong in
the first five months of the year, and the Fund took advantage of recent
weakness in the stock to
69
- --------------------------------------------------------------------------------
add to our position during the period. While investors focused on transitional
issues related to the company's logistics business, we have identified this part
of their business as having significant profit potential over the longer term.
WHAT IS THE OUTLOOK?
Ongoing strength in corporate profits, a benign bond market, and increased
pressure on those holding short positions have combined to lift equity
benchmarks to their best levels since 2000. Prospects for continued upside in
2007 look bright, especially if economic growth stays steady enough to allow
valuation multiples to build on their recent expansion. We believe that the Fund
is well positioned to add value relative to the market and its peers into 2007.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 8.1%
- -------------------------------------------------------------------
Capital Goods 6.3
- -------------------------------------------------------------------
Consumer Cyclical 11.6
- -------------------------------------------------------------------
Consumer Staples 2.1
- -------------------------------------------------------------------
Energy 3.9
- -------------------------------------------------------------------
Finance 26.6
- -------------------------------------------------------------------
Health Care 4.9
- -------------------------------------------------------------------
Services 15.5
- -------------------------------------------------------------------
Technology 7.9
- -------------------------------------------------------------------
Transportation 4.4
- -------------------------------------------------------------------
Utilities 2.0
- -------------------------------------------------------------------
Short-Term Investments 6.3
- -------------------------------------------------------------------
Other Assets & Liabilities 0.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
70
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 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS 1-5 YEAR U.S.
SHORT DURATION FUND GOVERNMENT/CREDIT INDEX
------------------- -----------------------------
10/31/02 9700 10000
9676 9987
9829 10145
9842 10150
9945 10244
9963 10262
10023 10312
10130 10430
10143 10442
10008 10296
10013 10300
10186 10474
10/03 10134 10406
10131 10406
10209 10485
10254 10527
10319 10609
10365 10667
10242 10494
10220 10467
10236 10481
10283 10541
10356 10662
10346 10662
10/04 10377 10713
10329 10638
10357 10679
10358 10676
10350 10635
10343 10609
10404 10694
10424 10756
10448 10787
10440 10730
10483 10824
10490 10770
10/05 10472 10744
10511 10784
10542 10832
10561 10846
10578 10851
10587 10846
10629 10876
10652 10885
10688 10903
10743 11004
10797 11106
10860 11176
10/06 10893 11227
</Table>
<Table>
--- SHORT DURATION FUND --- LEHMAN BROTHERS 1-5 YEAR U.S.
$9,700 starting value GOVERNMENT/CREDIT INDEX
$10,893 ending value $10,000 starting value
$11,227 ending value
</Table>
LEHMAN BROTHERS 1-5 YEAR U.S. GOVERNMENT/CREDIT INDEX is an unmanaged index
comprised of the U.S. Government/Credit component of the U.S. Aggregate Index.
The Hartford Government/Credit Index includes securities in the 1-5 year
maturity range in the Government and Credit Indices.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- --------------------------------------------------------
Short Duration A# 10/31/2002 4.02% 2.94%
- --------------------------------------------------------
Short Duration A## 10/31/2002 0.90% 2.16%
- --------------------------------------------------------
Short Duration B# 10/31/2002 3.33% 2.23%
- --------------------------------------------------------
Short Duration B## 10/31/2002 -1.67% 1.53%
- --------------------------------------------------------
Short Duration C# 10/31/2002 3.33% 2.23%
- --------------------------------------------------------
Short Duration C## 10/31/2002 2.33% 2.23%
- --------------------------------------------------------
Short Duration Y# 11/28/2003 4.28% 2.76%
- --------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
ROBERT CRUSHA, CFA
Vice President
BRIAN DIRGINS, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Short Duration Fund (Class A) gained 4.02%, before sales charges,
for the year ended October 31, 2006, trailing its benchmark, the Lehman Brothers
1-5 year U.S. Government / Credit Bond Index, which returned 4.52%. The Fund
also trailed the 4.10% return of the Lipper Short-term Investment Grade Debt
Funds peer group, a group of funds with investment strategies similar to those
of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening that began in the summer of 2004. By June of
2006, the Fed had raised its Federal Funds Target Rate (Fed Funds Rate) 17
consecutive times, leaving the Fed Funds rate at 5.25%. In response to the Fed's
tightening, short- and intermediate-term bond yields rose through the first half
of 2006. Thus, as interest rates rose, the principal value of these bonds
declined in response. In contrast, long-term bond yields did not rise as
substantially due to overseas demand and expectations that the Fed could keep
inflation low over the long run. The result was a yield curve that remained flat
or even inverted through most of the fiscal year. However, by August of 2006,
the Fed became concerned that economic growth was slowing, in part due to the
retreating housing market. As such, the Fed found itself in a conundrum as to
whether it should continue raising interest rates to restrain inflation, or to
pause in the tightening cycle to assess prospects for further economic growth.
Since changes in the rate of inflation often lag changes in economic conditions,
the Fed left rates unchanged at its two most recent meetings while it waited for
more data. Sensing that the Fed would continue easing monetary policy, the bond
markets rallied in the last months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. Fortunately,
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out
71
- --------------------------------------------------------------------------------
to longer duration on the yield curve. Thus, many investors shifted to higher
yields in the spread sectors that offer a risk premium over U.S. Treasuries of
similar maturities. Accordingly, the Mortgage-Backed Securities (MBS),
Commercial Mortgage-Backed Securities (CMBS), Asset-Backed Securities (ABS) and
Agencies investment grade spread sectors outperformed U.S. Treasuries.
One of the largest impacts upon the Fund's performance through the period
stemmed from its sensitivity to changes in interest rates. Generally, fixed rate
bonds decline in value as interest rates rise, because the lower coupon bonds
become less attractive when compared to bonds that pay higher rates. Purchasers
would rather purchase the new higher yielding bonds, so sellers of the existing,
lower coupon bonds must discount them to compensate for their lower interest
rates. Although the rising rates detracted from the Fund's return on an absolute
basis for most of the fiscal year, the Fund was appropriately positioned with a
duration that was less than half that of the benchmark. However, the very
substantial benefits of the Fund's conservative positioning through mid-2006
were negatively offset by the bond rally late in the fiscal year. Therefore, the
Fund's duration and yield curve management ultimately resulted in only modest
contributions to performance.
As spread sectors outperformed U.S. Treasuries for the twelve month period,
investments in ABS, CMBS and Corporate issues continued to contribute
significant yield to the portfolio. Since the Fund was overweight in
out-of-index sectors compared to the benchmark weightings, it had underweighted
U.S. Treasuries. This allocation away from Treasuries was also beneficial as
Treasuries trailed the credit sectors. The Fund's lower allocation to Agency
issues appeared to be a cost to performance. However, that shortfall was more
than offset by the beneficial allocations to the ABS, MBS and especially CMBS
sectors. The Fund tactically held Treasury Inflation-Protected Securities (TIPS)
at times to take advantage of the attractive seasonal accruals (when inflation
adjustments are typically advantageous). While the overall TIPS sector lagged
the Index for the period, we believe the Fund's tactical individual security
selection was a positive contributor to performance. In the end, the portfolio
outperformed the Index on a gross (before expenses) basis, but it did not
outperform by a great enough margin to offset the costs associated with
operating the Fund.
WHAT IS THE OUTLOOK?
The recent rally in bonds has priced into bond market values an environment of
economic weakness that is not consistent with our view. Declines in interest
rates and gasoline prices, coupled with a decent employment picture and gains in
the stock market, should be supportive of continued spending. While housing
remains a wild card for the U.S. economy, our view is that the Fed is still
concerned with inflation and that policy decisions will favor price stability as
long as economic growth does not decline dramatically. During the coming fourth
quarter, we anticipate the Fed will remain on hold and is unlikely to lower
rates through the first quarter of 2007, as current market pricing suggests.
Therefore, we shall remain patient in extending duration until such time that we
find attractive opportunities and shall focus on adding additional yield in
shorter maturities than that of the benchmark.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
RATING LONG-TERM HOLDINGS
- -------------------------------------------------------------------
AAA 30.5%
- -------------------------------------------------------------------
AA 4.8
- -------------------------------------------------------------------
A 28.6
- -------------------------------------------------------------------
BBB 36.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 1.1%
- -------------------------------------------------------------------
Capital Goods 0.7
- -------------------------------------------------------------------
Consumer Cyclical 1.6
- -------------------------------------------------------------------
Consumer Staples 1.0
- -------------------------------------------------------------------
Energy 2.6
- -------------------------------------------------------------------
Finance 69.9
- -------------------------------------------------------------------
Health Care 1.4
- -------------------------------------------------------------------
Services 3.9
- -------------------------------------------------------------------
Technology 4.1
- -------------------------------------------------------------------
Transportation 0.5
- -------------------------------------------------------------------
U.S. Government Agencies 5.1
- -------------------------------------------------------------------
Utilities 1.3
- -------------------------------------------------------------------
Short-Term Investments 5.9
- -------------------------------------------------------------------
Other Assets & Liabilities 0.9
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
72
The Hartford Small Company Fund
(subadvised by: Wellington Management Company, LLP
Hartford Investment Management Company**)
INVESTMENT OBJECTIVE -- SEEKS GROWTH OF CAPITAL.
PERFORMANCE OVERVIEW(3) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SMALL COMPANY FUND RUSSELL 2000 GROWTH INDEX
------------------ -------------------------
10/31/96 9450 10000
9652 10278
9602 10478
9593 10740
9440 10092
8955 9379
9009 9271
9980 10664
10565 11026
11078 11591
11339 11939
12310 12892
10/97 11806 12117
11599 11828
11453 11835
11171 11677
12282 12708
12772 13241
12941 13322
12310 12354
12490 12481
12053 11438
9106 8798
9895 9690
10/98 10684 10195
11406 10986
12652 11980
13203 12519
11901 11374
12880 11779
13935 12819
14229 12840
15361 13516
15342 13098
15123 12608
15427 12851
10/99 15959 13181
17776 14574
20959 17143
20345 16984
23916 20935
23558 18734
21430 16843
19035 15368
21720 17353
19976 15866
21559 17535
20618 16664
10/00 19344 15311
16937 12531
18209 13298
17401 14374
15476 12404
14138 11276
16063 12657
15853 12950
16100 13303
15226 12168
14584 11408
12283 9567
10/01 13279 10488
14551 11363
15326 12071
15082 11641
14374 10888
15425 11834
15038 11578
14463 10901
13456 9977
11276 8444
11054 8440
10601 7830
10/02 10988 8226
11663 9042
10645 8418
10357 8189
10147 7971
10501 8092
11619 8857
12913 9856
13323 10045
14274 10805
14983 11385
14429 11097
10/03 15801 12056
16244 12449
16543 12504
17207 13161
17229 13141
17561 13202
16654 12540
16952 12789
17328 13215
15901 12028
15215 11769
16399 12420
10/04 16698 12722
17649 13797
18424 14293
17417 13649
17992 13837
17749 13318
16985 12470
18136 13349
19154 13781
20316 14744
20383 14536
20947 14652
10/05 20416 14110
21666 14909
22208 14887
24211 16323
24034 16236
25085 17025
25572 16976
24233 15781
23636 15791
22662 14970
22905 15409
22994 15513
10/06 23879 16518
</Table>
<Table>
--- SMALL COMPANY FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$23,879 ending value $16,518 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.
You cannot invest directly in an 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 the investment adviser, without which performance
would have been lower. For information on current expense
waivers/reimbursements, please see the prospectus.
** As of June 12, 2006, Hartford Small Company Fund ("the Fund") employs a
multimanager approach with Hartford Investment Management Company providing
sub-advisory services for a portion of the Fund's assets. As of that date,
the Fund's Class A, B, C and Y were reopened to new investments.
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- --------------------------------------------------------------------
Small Co A# 7/22/1996 16.96% 12.45% 9.71% 10.68%
- --------------------------------------------------------------------
Small Co A## 7/22/1996 10.53% 11.18% 9.09% 10.07%
- --------------------------------------------------------------------
Small Co B# 7/22/1996 16.10% 11.62% NA* NA*
- --------------------------------------------------------------------
Small Co B## 7/22/1996 11.10% 11.37% NA* NA*
- --------------------------------------------------------------------
Small Co C# 7/22/1996 16.14% 11.64% 8.96% 9.92%
- --------------------------------------------------------------------
Small Co C## 7/22/1996 15.14% 11.64% 8.96% 9.92%
- --------------------------------------------------------------------
Small Co I# 7/22/1996 17.02% 12.46% 9.71% 10.68%
- --------------------------------------------------------------------
Small Co Y# 7/22/1996 17.59% 12.97% 10.23% 11.20%
- --------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
* 10 year and 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. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from results seen above due to differences
in the expenses charged to these share classes.
PORTFOLIO MANAGERS
WELLINGTON MANAGEMENT COMPANY, LLP
STEVEN C. ANGELI, CFA
Senior Vice President, Partner
STEPHEN MORTIMER
Vice President
MARIO E. ABULARACH
Vice President
HARTFORD INVESTMENT MANAGEMENT COMPANY
MARK WATERHOUSE
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of the Hartford Small Company Fund returned 16.96%, before
sales charges, for the twelve-month period ended October 31, 2006,
underperforming its benchmark, the Russell 2000 Growth Index which returned
17.07% for the same period. The Fund outperformed the 12.82% return of the
average fund in the Lipper Small Cap Growth Funds peer group, a group of funds
with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
US equity indices edged higher toward the end of 2005, helped by a drop in
energy prices. Despite indications that inflation had moderated, the Federal
Reserve continued to raise rates to the point where the yield curve inverted
(i.e. bonds with longer term maturities having a lower interest rate than bonds
with shorter maturities of the same credit quality). On the back of that, the
Russell 2000 Growth Index soared during the first quarter of 2006, demonstrating
the third largest first quarter gain in over 15 years. As the Fed continued to
raise rates in the second quarter 2006 to fight inflation, the market reacted
quite negatively. Worried that the Fed may push rates too far and sour the
economy, investors punished small cap stocks most severely. The later part of
the year resulted in excellent performance for large cap stocks which outpaced
smaller companies.
Superior stock selection among Financials, Health Care and Materials stocks
helped to boost Fund performance. Strength in the financial services arena came
from an eclectic range of holdings including Admiral Corp (a UK-based auto
insurance underwriter and distributor), Hong Kong Exchanges (which operates
stock and futures exchanges in the leading capital formation center for China),
and CB Richard Ellis (the largest global commercial real estate services
company). In health care, Schwarz Pharmaceuticals AG advanced first on positive
fundamental developments and later
73
- --------------------------------------------------------------------------------
on a takeover bid. Positive clinical indications on several drug pipeline
candidates likewise lifted holdings in Vertex Pharmaceuticals. Eagle Materials
(cement), Brush Engineered Materials (high performance metals and alloys) and
Agnico-Eagle Mines Ltd. (gold) led performance among basic materials holdings.
Outside these sectors top relative individual stock contributors included CSR
Plc (Bluetooth chip sets), Corrections Corp. (private correctional facilities),
Equinix Plc (outsourced internet exchange hubs) and Melco Corp. (Macau hotel and
casinos).
Offsetting these strong results was weaker stock selection in the Energy,
Consumer Discretionary, and Consumer Staples sectors. Energy holdings
-- whether fossil fuel oriented or alternatives based -- corrected sharply
during the latter half of the period. Significant detractors among this group
included Frontier Oil (oil refining and marketing), Arch Coal (Coal consumables
and Fuels) and VeraSun Energy (Oil exploration & production). In Consumer
Discretionaries, shares in our holding in household products manufacturer,
Jarden, declined after it issued an earnings warning. In Consumer Staples,
though we avoided a fairly steep correction in alternative beverage purveyor
Hansen Natural Corp, we also missed an impressive run up in the stock. Holdings
in Peet's Coffee & Tea disappointed on higher operating expenses. We eliminated
our position during the period.
Other stocks that detracted from performance included Symbion Inc, an operator
of surgical centers which pulled back amid reimbursement pressure from private
payors and Medicaid, and Red Hat, the leading provider of Linux operating
systems and support which gapped lower on a weaker than expected quarter as well
as concerns over increasing competition.
WHAT IS THE OUTLOOK?
The surprisingly swift and dramatic pullback in energy prices that began during
the summer months appears to have allayed inflation fears and softened the case
for a housing-induced slowdown in consumer spending. We suspect this shift in
sentiment propelled the late period rebound among consumer discretionary stocks.
Whether or not this is sustainable remains to be seen. With regard to portfolio
positioning, the most significant shifts on a year over year basis include a net
reduction in our exposure to Health Care and Financials concerns -- generally
the result of taking profits -- and an increase in our Consumer Discretionary
holdings, most notably in the media space. Opportunistic purchases in
Industrials increased the overweight position to this sector.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.9%
- -------------------------------------------------------------------
Capital Goods 3.7
- -------------------------------------------------------------------
Consumer Cyclical 6.9
- -------------------------------------------------------------------
Consumer Staples 1.6
- -------------------------------------------------------------------
Energy 4.6
- -------------------------------------------------------------------
Finance 10.2
- -------------------------------------------------------------------
Health Care 11.8
- -------------------------------------------------------------------
Investment Companies 0.9
- -------------------------------------------------------------------
Services 16.2
- -------------------------------------------------------------------
Technology 27.3
- -------------------------------------------------------------------
Transportation 6.0
- -------------------------------------------------------------------
Utilities 1.1
- -------------------------------------------------------------------
Short-Term Investments 24.2
- -------------------------------------------------------------------
Other Assets & Liabilities -20.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
74
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) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX
-------------------- -------------------------
10/31/96 9450 10000
9447 10278
9071 10478
8930 10740
7856 10092
7165 9379
6990 9270
8303 10664
8503 11025
9002 11590
8770 11937
9357 12890
10/97 8927 12115
8959 11827
9208 11834
8902 11677
9959 12708
10598 13241
10679 13322
10131 12354
10541 12480
9690 11438
7572 8798
8096 9690
10/98 8624 10196
9713 10987
11036 11981
11820 12520
10324 11375
11070 11780
11483 12820
11566 12840
13168 13517
13339 13099
13649 12610
14289 12853
10/99 16399 13182
18435 14575
23334 17143
23787 16984
33214 20936
29719 18736
24884 16843
21428 15368
26556 17353
24586 15866
29461 17535
27794 16664
10/00 25269 15311
17994 12530
20078 13297
20461 14373
16617 12402
14849 11275
16199 12655
16185 12949
16802 13302
15576 12168
14555 11407
11848 9566
10/01 13047 10486
14524 11362
15667 12070
15151 11640
14308 10887
15785 11833
15110 11577
14051 10900
12741 9976
11013 8442
10958 8438
10045 7829
10/02 10846 8225
12065 9040
11111 8416
10742 8188
10254 7969
10373 8090
11355 8855
12692 9853
13020 10043
13883 10802
14852 11382
14859 11094
10/03 15959 12053
16356 12446
16586 12501
17576 13158
17548 13138
17408 13199
16642 12537
16816 12786
17367 13211
15952 12026
15743 11767
16607 12417
10/04 17137 12719
18307 13794
19094 14290
18244 13646
18753 13833
18516 13315
17659 12467
18955 13346
19512 13778
20815 14741
20439 14533
20411 14648
10/05 19714 14107
20836 14906
20954 14883
22528 16319
22173 16232
22807 17021
22486 16972
20897 15777
20925 15787
19866 14967
20131 15405
20410 15510
10/06 21816 16514
</Table>
<Table>
--- SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$21,816 ending value $16,514 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.
You cannot invest directly in an 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 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
DORIS T. DWYER
Vice President
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -------------------------------------------------------------------
SmallCap A# 1/4/1988 10.67% 10.82% 8.72% 12.47%
- -------------------------------------------------------------------
SmallCap A## 1/4/1988 4.58% 9.58% 8.11% 12.13%
- -------------------------------------------------------------------
SmallCap B# 11/14/1994 9.97% 10.08% NA* NA*
- -------------------------------------------------------------------
SmallCap B## 11/14/1994 4.97% 9.81% NA* NA*
- -------------------------------------------------------------------
SmallCap C# 11/14/1994 9.82% 10.03% 8.04% 10.45%
- -------------------------------------------------------------------
SmallCap C## 11/14/1994 8.82% 10.03% 8.04% 10.45%
- -------------------------------------------------------------------
SmallCap H# 11/14/1994 10.12% 10.20% NA* NA*
- -------------------------------------------------------------------
SmallCap H## 11/14/1994 6.12% 9.93% NA* NA*
- -------------------------------------------------------------------
SmallCap I# 2/19/2002 10.71% NA NA 9.78%
- -------------------------------------------------------------------
SmallCap L# 1/4/1988 10.90% 10.92% 8.77% 12.49%
- -------------------------------------------------------------------
SmallCap L## 1/4/1988 5.63% 9.84% 8.24% 12.20%
- -------------------------------------------------------------------
SmallCap M# 11/14/1994 10.09% 10.19% NA* NA*
- -------------------------------------------------------------------
SmallCap M## 11/14/1994 6.09% 9.91% NA* NA*
- -------------------------------------------------------------------
SmallCap N# 11/14/1994 10.08% 10.20% 8.12% 10.52%
- -------------------------------------------------------------------
SmallCap N## 11/14/1994 9.08% 10.20% 8.12% 10.52%
- -------------------------------------------------------------------
SmallCap Y# 2/19/2002 11.17% NA NA 9.64%
- -------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
* 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) Classes A, B and C were offered beginning on February 19,
2002. Performance prior to that date is that of the fund's
Classes L, M and N shares, respectively, which have lower
operating expenses. Performance prior to February 19, 2002
would have been lower if Classes A, B and C shares expenses
were applied during that period. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Classes A and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, H, I, L, M,
N and Y shares will vary from results seen above due to
differences in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Small Cap Growth Fund returned 10.67%, before
sales charges, for the twelve-month period ended October 31, 2006,
underperforming its benchmark, the Russell 2000 Growth Index, which returned
17.07% for the same period. The Fund also underperformed the 12.82% return of
the average fund in the Lipper Small Cap Growth Funds peer group, a group of
funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
US equity indices edged higher toward the end of 2005, helped by a drop in
energy prices. Despite indications that inflation had moderated, the Federal
Reserve (the Fed) continued to raise rates to the point where the yield curve
inverted. On the back of that, the Russell 2000 Growth Index soared during the
first quarter of 2006, demonstrating the third largest first quarter gain in
over 15 years. As the Fed continued to raise rates in the second quarter 2006 to
fight inflation, the market reacted quite negatively. Worried that the Fed may
push rates too far and sour the economy, investors punished small cap stocks
most severely. The later part of the year resulted in excellent performance for
large cap stocks which outpaced smaller companies.
Stock selection within Financials, Consumer Discretionary, Industrials and
Healthcare drove the Fund's underperformance relative to the benchmark. Scottish
Re Group Ltd (Insurance), Standard Pacific Corp (Consumer Durables), and CV
Therapeutics (Pharmaceutical Biotechnology) were the largest detractors from the
portfolio's relative return over the period. Scottish Re, a Cayman Islands-based
reinsurer for US life insurance, variable annuities, and other annuity type
products, disappointed during the first quarter of 2006. With the decreased
demand for new housing in the southwest and overall housing market slowing this
year, Standard Pacific Corp, a residential housing constructor, negatively
impacted the portfolio and we eliminated our position during the period. We sold
our position in this portfolio during the period. CV Therapeutics, a developer
of drugs for cardiovascular diseases
75
- --------------------------------------------------------------------------------
since its foundation in 1990, detracted from the Fund's performance during the
period as the market was too focused on the launch of Ranexa, a drug used to
help treat angina, and approval of the trial. Although it has not been a strong
contributor thus far, we still believe in the fundamentals of the company and
continue to hold it in the Fund. Other Healthcare stocks that detracted from
relative performance during the period included NPS Pharmaceutical Corp, and
Encysive Pharmaceutical Inc. NPS's performance suffered this year because its
new drug in development, Preos, came under scrutiny by the FDA. The market
thought the FDA would require an additional clinical trial, forcing the stock
price lower. Encysive's new drug, Thelin, which is intended to treat chronic
high blood pressure in the blood vessel carrying oxygen-poor blood to the lungs,
was approved in Europe in August and is still awaiting final approval by the
FDA.
Stock Selection within Materials, Energy, and Information Technology were the
areas of greatest strength relative to the benchmark. In Energy, Frontier Oil, a
refining company, contributed to the overall relative performance of the fund.
In Materials, Century Aluminum, a manufacturer of Alumina and Aluminum,
demonstrated increased net income and sales year over year and continued growth.
Other top contributors to absolute and relative performance included Abgenix Inc
(Pharmaceutical Biotechnology), which was acquired in late 2005 by Amgen and
Skechers USA (Consumer Durables), the maker of sneakers for men, women and
children, which continues to be a leader in the shoe market and showed
significant growth over the period.
WHAT IS THE OUTLOOK?
A mid-cycle slowdown is underway and the housing correction is leading the way.
We expect further price and transaction weakness ahead. Consumers continue to
face headwinds and fading sources of stimulus. We will continue to apply a
bottom-up investment process in constructing a diversified portfolio. The Fund
seeks to apply a combination of fundamental and quantitative research analysis
to build a portfolio diversifying across all sectors of the Russell 2000 Growth
Index.
As a result of the Fund's investment approach, sector positioning is in-line
with the Russell 2000 Growth Index, resulting in the greatest exposure to the
Information Technology, Industrials and Health Care sectors.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 7.4%
- -------------------------------------------------------------------
Capital Goods 4.7
- -------------------------------------------------------------------
Consumer Cyclical 12.0
- -------------------------------------------------------------------
Energy 4.8
- -------------------------------------------------------------------
Finance 10.6
- -------------------------------------------------------------------
Health Care 15.3
- -------------------------------------------------------------------
Services 13.6
- -------------------------------------------------------------------
Technology 23.1
- -------------------------------------------------------------------
Transportation 4.5
- -------------------------------------------------------------------
Short-Term Investments 20.2
- -------------------------------------------------------------------
Other Assets & Liabilities -16.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
76
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) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
STOCK FUND S&P 500 INDEX
---------- -------------
10/31/96 9450 10000
10117 10755
9878 10542
10469 11200
10546 11288
10238 10825
10769 11471
11437 12169
12006 12714
12845 13725
12100 12957
12717 13666
10/97 12374 13210
12888 13821
13017 14058
13129 14213
14134 15238
14949 16018
15267 16179
14975 15901
15834 16546
15988 16371
13644 14004
14211 14901
10/98 15327 16112
16212 17088
17096 18072
17651 18827
17313 18242
18163 18972
18979 19707
18424 19242
19630 20308
19083 19675
18788 19577
18268 19041
10/99 19248 20245
19575 20657
20911 21873
19920 20774
19956 20381
21884 22373
21256 21701
20787 21255
21239 21779
20793 21439
21882 22770
20855 21568
10/00 20882 21477
19632 19785
19847 19882
20362 20587
18903 18711
17528 17526
18781 18886
18931 19013
18105 18551
17881 18368
16692 17219
15484 15829
10/01 15812 16132
17001 17369
17122 17522
16701 17266
16458 16933
17019 17570
15587 16505
15362 16384
14248 15218
13387 14032
13265 14123
11786 12590
10/02 12854 13696
13818 14501
12928 13650
12573 13294
12311 13095
12357 13222
13294 14310
13939 15063
14136 15256
14482 15525
14660 15827
14417 15659
10/03 15175 16544
15306 16690
16205 17564
16280 17887
16383 18135
16083 17862
15859 17582
16065 17822
16411 18169
15802 17567
15802 17638
15728 17829
10/04 15690 18101
16186 18834
16713 19474
16402 19000
16741 19399
16242 19056
16082 18695
16638 19289
16591 19317
17344 20035
17363 19852
17551 20013
10/05 17316 19679
18041 20422
18192 20430
18748 20971
18673 21027
18890 21289
19192 21575
18588 20955
18286 20982
18277 21112
18777 21613
19201 22170
10/06 19852 22892
</Table>
<Table>
--- STOCK FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$19,852 ending value $22,892 ending value
</Table>
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -----------------------------------------------------------------
Stock A# 7/22/1996 14.65% 4.65% 7.70% 8.54%
- -----------------------------------------------------------------
Stock A## 7/22/1996 8.34% 3.48% 7.09% 7.94%
- -----------------------------------------------------------------
Stock B# 7/22/1996 13.64% 3.81% NA* NA*
- -----------------------------------------------------------------
Stock B## 7/22/1996 8.64% 3.46% NA* NA*
- -----------------------------------------------------------------
Stock C# 7/22/1996 13.72% 3.98% 6.97% 7.79%
- -----------------------------------------------------------------
Stock C## 7/22/1996 12.72% 3.98% 6.97% 7.79%
- -----------------------------------------------------------------
Stock Y# 7/22/1996 15.21% 5.24% 8.25% 9.08%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable.
* 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 shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
PORTFOLIO MANAGERS
STEVEN T. IRONS, CFA
Senior Vice President, Partner
PETER I. HIGGINS, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Stock Fund returned 14.65%, before sales
charges, for the twelve-month period ended October 31, 2006, underperforming its
benchmark, the S&P 500 Index which returned 16.33% for the same period. However,
the Fund outperformed the 14.23% return of the average fund in the Lipper Large
Cap Core Funds peer group, a group of funds with investment strategies similar
to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Despite weakening housing prices, concerns regarding the consumer and the
Federal Reserve's monetary tightening, equity markets continue to show strength.
The S&P 500 was up 16.33% for the reporting period and showed broad based
strength, posting positive results in all ten sectors. Sector results were led
by Telecommunication Services, Materials, and Energy. Information Technology,
Health Care, and Consumer Staples all posted robust returns but lagged the
general market.
The Fund's performance versus the benchmark was driven primarily by security
selection. Detracting from results was weak stock selection within the Consumer
Discretionary, Health Care and Materials sectors. Stocks that detracted the most
from relative returns included XM Satellite, Boston Scientific, Marvell
Technology and Dollar General. Media company XM Satellite continues to come
under pressure. Decelerating customer addition trends and regulatory review of
product compliance have caused investors to question the market opportunity. The
portfolio continues to hold the stock based on positive long-term trends in
satellite radio due to original equipment manufacturer (OEM) adoption. Boston
Scientific has had a tough year suffering from erosion of its Implantable
Cardioverter Defibrillator (ICD) market share, concerns surrounding its drug
eluting stent business, and continued issues with cardiac product recalls after
its recently acquired Guidant business. We retain our position as the
fundamentals of the company remain sound and the stock is attractively priced.
Chip maker Marvell declined on disruption in the hard disk drive market and
worries over stock option grants. Discount retailer Dollar General disappointed
due to high gasoline prices hitting Dollar General customers and thus impacting
the company's top line. Additionally, Dollar General has been selling more
lower-margin "highly consumables" than anticipated. These are products like
perishable foods and cleaning supplies are used up quickly by consumers and need
to be replaced frequently, but carry thin margins. Other top contributors to the
Fund's overall performance included Cisco Systems and Exxon Mobil.
Stock selection contributed the most within the Information Technology and
Financials sectors. Top relative contributors to the Fund included AT&T, UBS,
Lexmark and Munich Re. AT&T is
77
- --------------------------------------------------------------------------------
benefiting from the stabilization of its long distance pricing. Also,
cost-cutting from its acquisitions are going well. UBS, the Swiss-based
financial institution, posted outstanding results due primarily to its
succeeding wealth management business. The firm has a superior business mix that
leads to less volatility and should continue to be rewarded with higher
multiples than the average broker. Shares in Lexmark, a manufacturer and
supplier of printing and imaging solutions, rose as the company recovered from
its product and distribution missteps last year. German reinsurance company
Munich Re reported better-than-expected results due to higher profits from
investments and fewer claims due to low levels of natural catastrophes. The
company continues to generate good return on capital and improving capital
management.
WHAT IS THE OUTLOOK?
The Fund continues to be managed with a large cap, core investment approach. We
apply a bottom-up investment process in constructing a diversified portfolio and
look for companies that exhibit industry leadership, strong balance sheets,
solid management, high return on equity, accelerating earnings, and/or
attractive valuation with a catalyst. Our bottom-up investment approach resulted
in the Fund being overweight Information Technology, Health Care and Materials,
and underweight Energy, Financials and Utilities at the end of the period.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.7%
- -------------------------------------------------------------------
Capital Goods 3.8
- -------------------------------------------------------------------
Consumer Cyclical 8.1
- -------------------------------------------------------------------
Consumer Staples 5.3
- -------------------------------------------------------------------
Energy 5.3
- -------------------------------------------------------------------
Finance 21.1
- -------------------------------------------------------------------
Health Care 12.1
- -------------------------------------------------------------------
Services 9.8
- -------------------------------------------------------------------
Technology 27.8
- -------------------------------------------------------------------
Utilities 0.5
- -------------------------------------------------------------------
Short-Term Investments 8.9
- -------------------------------------------------------------------
Other Assets & Liabilities -8.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
78
The Hartford Target Retirement 2010 Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE TOTAL RETURN AND SECONDARILY, TO SEEK
CAPITAL PRESERVATION.
PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
TARGET RETIREMENT 2010 FUND AGGREGATE BOND INDEX S&P 500 INDEX
--------------------------- -------------------- -------------
9/30/05 9450 10000 10000
10/05 9280 9921 9833
11/05 9469 9965 10205
12/05 9507 10059 10208
1/06 9670 10060 10479
2/06 9650 10093 10507
3/06 9679 9994 10638
4/06 9782 9976 10780
5/06 9598 9966 10471
6/06 9570 9987 10484
7/06 9560 10122 10549
8/06 9714 10277 10800
9/06 9805 10367 11078
10/06 9970 10436 11439
</Table>
<Table>
--- TARGET RETIREMENT 2010 -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
FUND BOND INDEX $10,000 starting value
$9,450 starting value $10,000 starting value $11,439 ending value
$9,970 ending value $10,436 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.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ---------------------------------------------------------------
Target Retirement 2010 A# 9/30/2005 7.43% 5.06%
- ---------------------------------------------------------------
Target Retirement 2010 A## 9/30/2005 1.52% -0.28%
- ---------------------------------------------------------------
Target Retirement 2010 B# 9/30/2005 6.58% 4.29%
- ---------------------------------------------------------------
Target Retirement 2010 B## 9/30/2005 1.58% 0.74%
- ---------------------------------------------------------------
Target Retirement 2010 C# 9/30/2005 6.53% 4.24%
- ---------------------------------------------------------------
Target Retirement 2010 C## 9/30/2005 5.53% 4.24%
- ---------------------------------------------------------------
Target Retirement 2010 Y# 9/30/2005 7.62% 5.32%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
In this environment, The Hartford Target Retirement 2010 Fund (Class A) gained
7.43%, before sales charges, for the year ended October, 2006, versus the
returns of 10.57% for the Lipper Mixed-Asset Target 2010 Funds peer group, 5.19%
for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500
Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these short- and intermediate-term bonds declined in response. In
contrast, long-term bond yields did not rise as substantially due to overseas
demand and expectations that the Fed could keep inflation low over the long run.
The result was a yield curve that remained flat or even inverted (i.e. bonds
with longer term maturities having a lower interest rate than bonds with shorter
maturities) through most of the fiscal year. However, by August of 2006, the Fed
became concerned that economic growth was slowing, in part due to the retreating
housing market. As such, the Fed found itself in a conundrum as to whether it
should continue raising interest rates to restrain inflation, or to pause in the
tightening cycle to assess prospects for further economic growth. Since changes
in the rate of inflation often lag changes in economic conditions, the Fed left
rates unchanged at its two most recent meetings while it waited for more data
before taking action. Sensing that the Fed would continue easing monetary
policy, the bond and equity markets rallied in the last months of the fiscal
year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by
79
- --------------------------------------------------------------------------------
favorable currency movements and strengthening foreign economies, the
international and emerging market equity indices outperformed the major domestic
indices for the year. Fortunately, the bond rally over the last few months
offset the negative impact of rising interest rates earlier in the year,
allowing the major bond sectors to finish with positive returns for the period.
During much of the year, fixed income investors were unable to achieve higher
levels of yield by going out longer on the yield curve (i.e. purchasing bonds
with a longer maturity date). Thus, many bond investors shifted to lower quality
and foreign issues as they sought greater yield. During the period, the
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. However, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period, resulting in a substantial cost to relative performance. The Fund did,
however, benefit from the out-of-index exposure to "spread" sectors and higher
yielding securities. With the Dow Jones Industrial reaching its all-time high
late in the period, the Fund also generated positive gains from its allocation
to equities. The Fund is constructed such that it has exposure to the various
styles of equities, including international, mid-cap and small cap stocks. This
diversification is expected to enhance the long-term return and risk
characteristics of the Fund. This added diversification benefited the Fund
through most of the year. However, since domestic, large cap stocks dominated
the stock rally late in the fiscal year, the Fund's exposure to foreign and
smaller capitalization equities partially offset some of their earlier
contributions. Overall the Fund's allocations were a positive factor. However,
stock selection at the individual fund level and within the underlying funds
appeared to detract from performance, in part due to the timing of cash flows
that detracted from return.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Federal Reserve is still concerned with inflation
and that policy decisions will favor price stability as long as economic growth
does not decline dramatically. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the U.S.
consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 10.7%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 7.8
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 0.9
- -------------------------------------------------------------------
Hartford Floating Rate Fund, Class Y 5.5
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 2.2
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 1.2
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 1.2
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 3.6
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 4.6
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 9.0
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 1.1
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 2.6
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 1.1
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 1.1
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 1.1
- -------------------------------------------------------------------
Hartford Select SmallCap Value Fund, Class Y 2.7
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 10.3
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 2.1
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 2.3
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 9.2
- -------------------------------------------------------------------
Hartford U.S. Government Securities Fund, Class Y 2.5
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 8.8
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 4.0
- -------------------------------------------------------------------
Other Assets & Liabilities 1.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
80
The Hartford Target Retirement 2020 Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE TOTAL RETURN AND SECONDARILY, TO SEEK
CAPITAL PRESERVATION.
PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
TARGET RETIREMENT 2020 FUND AGGREGATE BOND INDEX S&P 500 INDEX
--------------------------- -------------------- -------------
9/30/05 9450 10000 10000
10/05 9252 9921 9833
11/05 9469 9965 10205
12/05 9585 10059 10208
1/06 9857 10060 10479
2/06 9819 10093 10507
3/06 9904 9994 10638
4/06 10031 9976 10780
5/06 9778 9966 10471
6/06 9755 9987 10484
7/06 9707 10122 10549
8/06 9882 10277 10800
9/06 9986 10367 11078
10/06 10210 10436 11439
</Table>
<Table>
--- TARGET RETIREMENT 2020 -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
FUND BOND INDEX $10,000 starting value
$9,450 starting value $10,000 starting value $11,439 ending value
$10,210 ending value $10,436 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.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ---------------------------------------------------------------
Target Retirement 2020 A# 9/30/2005 10.37% 7.40%
- ---------------------------------------------------------------
Target Retirement 2020 A## 9/30/2005 4.30% 1.94%
- ---------------------------------------------------------------
Target Retirement 2020 B# 9/30/2005 9.56% 6.57%
- ---------------------------------------------------------------
Target Retirement 2020 B## 9/30/2005 4.56% 2.90%
- ---------------------------------------------------------------
Target Retirement 2020 C# 9/30/2005 9.58% 6.59%
- ---------------------------------------------------------------
Target Retirement 2020 C## 9/30/2005 8.58% 6.59%
- ---------------------------------------------------------------
Target Retirement 2020 Y# 9/30/2005 10.70% 7.69%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Target Retirement 2020 Fund (Class A) gained 10.37%, before sales
charges, for the year ended October 31, 2006, versus the returns of 12.89%
return for the Lipper Mixed-Asset Target 2020 Funds peer group, 5.19% for the
Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these short- and intermediate-term bonds declined in response. In
contrast, long-term bond yields did not rise as substantially due to overseas
demand and expectations that the Fed could keep inflation low over the long run.
The result was a yield curve that remained flat or even inverted (i.e. bonds
with longer term maturities having a lower interest rate than bonds with shorter
maturities) through most of the fiscal year. However, by August of 2006, the Fed
became concerned that economic growth was slowing, in part due to the retreating
housing market. As such, the Fed found itself in a conundrum as to whether it
should continue raising interest rates to restrain inflation, or to pause in the
tightening cycle to assess prospects for further economic growth. Since changes
in the rate of inflation often lag changes in economic conditions, the Fed left
rates unchanged at its two most recent meetings while it waited for more data
before taking action. Sensing that the Fed would continue easing monetary
policy, the bond and equity markets rallied in the last months of the fiscal
year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by
81
- --------------------------------------------------------------------------------
favorable currency movements and strengthening foreign economies, the
international and emerging market equity indices outperformed the major domestic
indices for the year. Fortunately, the bond rally over the last few months
offset the negative impact of rising interest rates earlier in the year,
allowing the major bond sectors to finish with positive returns for the period.
During much of the year, fixed income investors were unable to achieve higher
levels of yield by going out longer on the yield curve (i.e. purchasing bonds
with a longer maturity date). Thus, many bond investors shifted to lower quality
and foreign issues as they sought greater yield. During the period, the
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. However, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period, resulting in a substantial cost to relative performance. The Fund did,
however, benefit from the out-of-index exposure to "spread" sectors and higher
yielding securities. With the Dow Jones Industrial reaching its all-time high
late in the period, the Fund also generated positive gains from its allocation
to equities. The Fund is constructed such that it has exposure to the various
styles of equities, including international, mid-cap and small cap stocks. This
diversification is expected to enhance the long-term return and risk
characteristics of the Fund. This added diversification benefited the Fund
through most of the year. However, since domestic, large cap stocks dominated
the stock rally late in the fiscal year, the Fund's exposure to foreign and
smaller capitalization equities partially offset some of their earlier
contributions. Overall the Fund's allocations were a positive factor. However,
stock selection at the individual fund level and within the underlying funds
appeared to detract from performance, in part due to the timing of cash flows
that detracted from return.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Federal Reserve is still concerned with inflation
and that policy decisions will favor price stability as long as economic growth
does not decline dramatically. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the U.S.
consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 14.5%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 7.5
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 1.8
- -------------------------------------------------------------------
Hartford Floating Rate Fund, Class Y 4.8
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 1.5
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 1.6
- -------------------------------------------------------------------
Hartford High Yield Fund, Class Y 1.0
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 9.2
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 4.2
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 0.4
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 1.5
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 3.8
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 0.3
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 0.4
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 1.0
- -------------------------------------------------------------------
Hartford Select SmallCap Value Fund, Class Y 0.6
- -------------------------------------------------------------------
Hartford Select SmallCap Growth Fund, Class Y 0.1
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 9.9
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 2.9
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 6.3
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 13.6
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 4.0
- -------------------------------------------------------------------
Other Assets & Liabilities 1.3
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
82
The Hartford Target Retirement 2030 Fund
(subadvised by Hartford Investment Management Company)
INVESTMENT OBJECTIVE -- SEEKS TO MAXIMIZE TOTAL RETURN AND SECONDARILY, TO SEEK
CAPITAL PRESERVATION.
PERFORMANCE OVERVIEW(2) 9/30/05 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
TARGET RETIREMENT 2030 FUND S&P 500 INDEX AGGREGATE BOND INDEX
--------------------------- ------------- --------------------
9/30/05 9450 10000 10000
10/05 9214 9833 9921
11/05 9507 10205 9965
12/05 9551 10208 10059
1/06 9832 10479 10060
2/06 9778 10507 10093
3/06 9886 10638 9994
4/06 9995 10780 9976
5/06 9692 10471 9966
6/06 9670 10484 9987
7/06 9595 10549 10122
8/06 9768 10800 10277
9/06 9876 11078 10367
10/06 10136 11439 10436
</Table>
<Table>
--- TARGET RETIREMENT 2030 -- LEHMAN BROTHERS U.S. AGGREGATE --- S&P 500 INDEX
FUND BOND INDEX $10,000 starting value
$9,450 starting value $10,000 starting value $11,439 ending value
$10,136 ending value $10,436 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.
S&P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ------------------------------------------------------------------
Target Retirement 2030 A# 9/30/2005 10.00% 6.67%
- ------------------------------------------------------------------
Target Retirement 2030 A## 9/30/2005 3.95% 1.25%
- ------------------------------------------------------------------
Target Retirement 2030 B# 9/30/2005 9.22% 5.86%
- ------------------------------------------------------------------
Target Retirement 2030 B## 9/30/2005 4.22% 2.42%
- ------------------------------------------------------------------
Target Retirement 2030 C# 9/30/2005 9.35% 5.98%
- ------------------------------------------------------------------
Target Retirement 2030 C## 9/30/2005 8.35% 5.98%
- ------------------------------------------------------------------
Target Retirement 2030 Y# 9/30/2005 10.40% 7.02%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from 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
HUGH WHELAN, CFA
Executive Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
In this environment, The Hartford Target Retirement 2030 Fund (Class A) gained
10.00%, before sales charges, for the year ended October 31, 2006, versus the
returns of 14.94% return of the Lipper Mixed-Asset Target 2030 Funds peer group,
5.19% for the Lehman Brothers U.S. Aggregate Bond Index and 16.33% for the S&P
500 Index.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these short- and intermediate-term bonds declined in response. In
contrast, long-term bond yields did not rise as substantially due to overseas
demand and expectations that the Fed could keep inflation low over the long run.
The result was a yield curve that remained flat or even inverted (i.e. bonds
with longer term maturities having a lower interest rate than bonds with shorter
maturities) through most of the fiscal year. However, by August of 2006, the Fed
became concerned that economic growth was slowing, in part due to the retreating
housing market. As such, the Fed found itself in a conundrum as to whether it
should continue raising interest rates to restrain inflation, or to pause in the
tightening cycle to assess prospects for further economic growth. Since changes
in the rate of inflation often lag changes in economic conditions, the Fed left
rates unchanged at its two most recent meetings while it waited for more data
before taking action. Sensing that the Fed would continue easing monetary
policy, the bond and equity markets rallied in the last months of the fiscal
year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. For the full
12 month period, value oriented stocks outpaced growth stocks. However, growth
stocks did return to favor in the last few months of the fiscal year. Aided in
part by
83
- --------------------------------------------------------------------------------
favorable currency movements and strengthening foreign economies, the
international and emerging market equity indices outperformed the major domestic
indices for the year. Fortunately, the bond rally over the last few months
offset the negative impact of rising interest rates earlier in the year,
allowing the major bond sectors to finish with positive returns for the period.
During much of the year, fixed income investors were unable to achieve higher
levels of yield by going out longer on the yield curve (i.e. purchasing bonds
with a longer maturity date). Thus, many bond investors shifted to lower quality
and foreign issues as they sought greater yield. During the period, the
traditionally "riskier" high yield and emerging markets bonds were among the
strongest performers for the year.
Based upon the Fund's design, the Fund's fixed income component typically is
less sensitive to changes in interest rates than the Lehman benchmark.
Additionally, the Fund's fixed income component was more defensive than normal
this year, since the underlying fund managers generally assumed the bond markets
were underestimating the potential for higher inflation. As interest rates
declined during most of the fiscal year, the Fund's fixed income component
delivered positive performance. However, the Fund's defensive stance did not
allow it to participate fully in the bond rally that occurred late in the
period, resulting in a substantial cost to relative performance. The Fund did,
however, benefit from the out-of-index exposure to "spread" sectors and higher
yielding securities. With the Dow Jones Industrial reaching its all-time high
late in the period, the Fund also generated positive gains from its allocation
to equities. The Fund is constructed such that it has exposure to the various
styles of equities, including international, mid-cap and small cap stocks. This
diversification is expected to enhance the long-term return and risk
characteristics of the Fund. This added diversification benefited the Fund
through most of the year. However, since domestic, large cap stocks dominated
the stock rally late in the fiscal year, the Fund's exposure to foreign and
smaller capitalization equities partially offset some of their earlier
contributions. Overall the Fund's allocations were a positive factor. However,
stock selection at the individual fund level and within the underlying funds
appeared to detract from performance, in part due to the timing of cash flows
that detracted from return.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued consumer spending. While housing remains a wild card for the U.S.
economy, our view is that the Federal Reserve is still concerned with inflation
and that policy decisions will favor price stability as long as economic growth
does not decline dramatically. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the U.S.
consumer and what implications that has for the economy going forward.
COMPOSITION BY UNDERLYING FUND
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
FUND NAME NET ASSETS
- -------------------------------------------------------------------
Hartford Capital Appreciation Fund, Class Y 15.8%
- -------------------------------------------------------------------
Hartford Disciplined Equity Fund, Class Y 11.6
- -------------------------------------------------------------------
Hartford Equity Income Fund, Class Y 2.5
- -------------------------------------------------------------------
Hartford Global Leaders Fund, Class Y 8.5
- -------------------------------------------------------------------
Hartford Growth Fund, Class Y 0.5
- -------------------------------------------------------------------
Hartford Growth Opportunities Fund, Class Y 3.2
- -------------------------------------------------------------------
Hartford Income Fund, Class Y 1.2
- -------------------------------------------------------------------
Hartford Inflation Plus Fund, Class Y 4.9
- -------------------------------------------------------------------
Hartford International Capital Appreciation Fund,
Class Y 0.4
- -------------------------------------------------------------------
Hartford International Opportunities Fund, Class Y 0.2
- -------------------------------------------------------------------
Hartford International Small Company Fund, Class Y 3.5
- -------------------------------------------------------------------
Hartford MidCap Value Fund, Class Y 0.3
- -------------------------------------------------------------------
Hartford Select MidCap Growth Fund, Class Y 0.5
- -------------------------------------------------------------------
Hartford Select MidCap Value Fund, Class Y 0.7
- -------------------------------------------------------------------
Hartford Select SmallCap Growth Fund, Class Y 2.2
- -------------------------------------------------------------------
Hartford Short Duration Fund, Class Y 6.9
- -------------------------------------------------------------------
Hartford Small Company Fund, Class Y 8.0
- -------------------------------------------------------------------
Hartford SmallCap Growth Fund, Class Y 3.6
- -------------------------------------------------------------------
Hartford Total Return Bond Fund, Class Y 8.4
- -------------------------------------------------------------------
Hartford Value Fund, Class Y 9.8
- -------------------------------------------------------------------
Hartford Value Opportunities Fund, Class Y 5.3
- -------------------------------------------------------------------
Other Assets & Liabilities 2.0
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
84
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 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS CALIFORNIA MUNICIPAL
TAX-FREE CALIFORNIA FUND BOND INDEX
------------------------ ------------------------------------
10/31/02 9550 10000
9477 9985
9718 10166
9619 10116
9813 10269
9805 10274
9863 10339
10115 10587
10000 10506
9437 10111
9540 10193
9868 10486
10/03 9842 10448
9990 10575
10087 10660
10141 10725
10335 10903
10318 10878
10017 10608
9969 10568
10023 10636
10189 10777
10479 11013
10542 11072
10/04 10644 11186
10550 11104
10706 11247
10831 11375
10790 11340
10727 11264
10924 11449
11009 11532
11097 11617
11047 11574
11167 11701
11097 11631
10/05 11036 11556
11090 11614
11189 11714
11202 11749
11288 11837
11213 11758
11213 11740
11269 11800
11227 11758
11374 11909
11532 12089
11612 12167
10/06 11713 12253
</Table>
<Table>
--- TAX-FREE CALIFORNIA FUND --- LEHMAN BROTHERS CALIFORNIA MUNICIPAL
$9,550 starting value BOND INDEX
$11,713 ending value $10,000 starting value
$12,253 ending value
</Table>
LEHMAN BROTHERS CALIFORNIA MUNICIPAL BOND INDEX is an unmanaged index of
municipal bonds issued by the State of California with maturities greater than
two years.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- ----------------------------------------------------
California A# 10/31/2002 6.13% 5.23%
- ----------------------------------------------------
California A## 10/31/2002 1.36% 4.03%
- ----------------------------------------------------
California B# 10/31/2002 5.34% 4.45%
- ----------------------------------------------------
California B## 10/31/2002 0.34% 3.78%
- ----------------------------------------------------
California C# 10/31/2002 5.33% 4.49%
- ----------------------------------------------------
California C## 10/31/2002 4.33% 4.49%
- ----------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B and C shares
will vary from results seen above due to differences in the
expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Tax-Free California Fund (Class A) gained 6.13%, before sales
charges, for the year ended October 31, 2006, outpacing its benchmark, the
Lehman Brothers California Municipal Bond Index, which returned 6.03%. The Fund
also outperformed the 5.51% average return of the Lipper California Municipal
Debt Funds peer group, a group of funds with investment strategies similar to
those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
In general, it was a good year (fiscal year ending 10/31/06) for the bond market
despite the early bias towards higher rates (lower prices) due to continued
economic growth and the Federal Reserve Bank's tightening campaign. Early in the
year many commodities reached historical highs and the price of oil approached
record levels. To keep inflation in check, the Federal Reserve Bank (the Fed)
continued its cycle of monetary tightening that began in the summer of 2004. By
June of 2006, the Fed had raised its Federal Funds Target Rate 17 consecutive
times, leaving the rate at 5.25%. In response to the increases in the Federal
Funds Target Rate, short- and intermediate-term bond yields rose through the
first half of 2006. Thus, as interest rates rose, the value of bonds declined.
Due to technical factors (limited supply versus greater demand), long-term bond
yields did not rise as significantly as shorter maturity debt. The market now
finds itself with an inverted yield curve (short interest rates are higher than
long interest rates). The tax-exempt yield curve performed similarly to the
taxable curve, but for one significant factor -- the municipal yield curve
remains steep and has not inverted. The net result is a tax-exempt yield curve
that flattened during most of the fiscal year. By August of 2006, the Fed,
believing it now had inflation under control, turned its focus on concerns that
economic growth was slowing. This new focus was supported by a belief that
strong housing market growth was now retreating. The Fed found itself in a
conundrum as to whether it should continue raising interest rates to restrain
inflation, or pause the tightening cycle to assess prospects for the economy.
Since changes in the rate of inflation often lag changes in economic conditions,
the Fed has held rates steady at its two most recent meetings. Sensing that the
Fed was now on hold for increasing rates, and in fact may have to lower rates to
spur the economy along, the bond markets rallied in the final months of the
fiscal year and investors sent yields lower (prices higher).
The Fund demonstrated good performance both relative to its benchmark and within
its peer group. Away from actions taken by the Fed, one of the primary drivers
of market performance was the technical imbalance (demand greater than supply).
The demand
85
- --------------------------------------------------------------------------------
for municipal securities remained strong throughout the year versus a decline in
municipal issuance. By fiscal year end, municipal issuance was down 12% compared
to the prior year. The lack of issuance was even more acute in the State of
California where we estimate a decline of almost 20% for the year. Robust demand
has been exhibited by traditional buyers (insurance companies, mutual funds)
awash in cash from strong earnings and positive mutual fund cash flows.
Non-traditional investors (arbitrage/hedge funds) continued to demonstrate good
demand as these buyers took advantage of "carry trades" in the municipal market.
(A carry trade is when an investor makes a spread (or profit) based on the
steepness of the curve by borrowing at the short-term rate (lower cost of funds)
and purchasing longer maturity bonds and receiving the higher rate. The
difference between the long and short end rates is the "carry." Of course, the
investor will only execute this trade when there is positive carry (i.e. steep
curve)). Although municipal bonds historically have lagged the performance of
the taxable fixed income bonds when interest rates have fallen, this was not the
case in 2006. The municipal bond market tracked the positive performance of the
taxable market for most of the year.
The primary drivers of the Fund's performance have been duration extension and
curve positioning through increased exposure to the longer maturity bonds (25+
years), exposure to higher yielding bonds and the tightening of credit spreads.
However, exposure to short maturity bonds hurt performance as the long end of
the municipal curve experienced greater positive performance. Fund duration
increased to almost 7 years, up from 6.91 in 2005. Extending duration as
interest rates fell late in the fiscal year contributed positively to
performance. Because this strategy increases the Fund's sensitivity to movements
in interest rates, it could hurt future performance should interest rates
reverse and begin to increase. Curve positioning also contributed positively to
Fund performance. One of our basic themes has been to take advantage of a lack
of substantial issuance of long maturity debt. The Fund's exposure to long
maturity municipal debt benefited both incremental yield and total return
performance. Mutual fund demand for maximum yield long maturity debt has been
especially strong throughout the year. At times, the Fund's exposure to variable
rate daily and weekly resetting coupon securities has been a drag on
performance. A reduction in exposure to these securities would have reduced the
negative effect of holding these securities.
The Fund's exposure to triple-B and double-B rated securities also contributed
positively to performance. During the year, the Fund increased its exposure to
double-B rated securities to 16% from 13%. Throughout the year, as interest
rates declined, there has been increased demand for higher yielding debt. Since
the beginning of the fiscal year, high yield issuance has been limited and the
performance of this particular sector has been especially strong. However in
contrast, holding insured bonds in the Fund has been a drag on performance.
While we prefer holding uninsured, non-investment grade bonds for the
incremental yield, this strategy may be a drag on future performance should a
"flight to quality" ensue. Current positive economic conditions at both the
state and local levels have allowed credit fundamentals for lower quality
credits to improve. Significant exposures to the "Education" and "Special Tax"
sectors particularly benefited the Fund's performance. Strong demand for the
services and products these sectors represent and the positive demographic
trends have resulted in good credit performance and positive total return. We
recognize the risk of a weakening housing market and have increased our credit
selectivity when making new purchases to bonds with exposure to housing
construction (Special Tax Bonds). (A special tax bond is a bond secured by
special assessment taxes levied on certain real estate). The Fund's exposure to
"Tobacco Bonds" also contributed to performance as the tobacco sector continues
to provide good total return. We favor these bonds due to the reduced headline
risk caused by legal challenges to the tobacco industry as well as for the
incremental yield provided by these bonds. Earlier in the year, the Fund's
exposure to the Commonwealth of Puerto Rico had been a drag on performance as
credit spreads widened due to a deteriorating fiscal position and a limited
closure of some of the Commonwealth's governmental services. We opted to reduce
the Fund's exposure to this credit, until a long-term solution to the
Commonwealth's financial crisis is crafted. We remain cautious on high yield
credits due to a slowing economy and tighter credit spreads. Although the
tighter credit spreads helped performance to existing exposure, we believe we
are not fairly compensated for the risk of purchasing new exposure. Thus, we
favor trading up in credit quality for more reasonably priced bonds.
WHAT IS THE OUTLOOK?
At year end, technical conditions have changed slightly with a temporary surge
in the supply of municipal bonds. For the foreseeable future, we expect demand
to remain robust and to outweigh supply. Specifically, the demand from
non-traditional buyers should remain strong given the opportunities the
municipal market offers these buyers with a municipal curve that remains steeper
than most other taxable curves. Non-traditional buyers play an important role in
our assessment of the future performance by the municipal market. Until
non-traditional buyers find a better alternative, their presence and demand for
municipal bonds will assist municipal market out performance. We still prefer
going out longer on the municipal curve for incremental yield. The conclusion of
the recent election cycle and resulting Congress leave expectations for limited
reductions in future taxes. If anything, we expect future federal tax increases,
which will contribute to the municipal markets' out performance because of the
attractiveness of the federal, state and local tax exemption provided by
municipal investments. Additional federal policy shifts in health care funding
could hold negative consequences for the entire health care sector. California
government appears to be in a stable position due to the re-election of many of
the same governmental officials. Current credit conditions for both state and
local governments appear stable as we believe we have not reached the end of
this favorable credit cycle despite concerns of a slowing economy. However, our
outlook for high yield credit remains more cautious, especially for Special Tax
bonds. These non-rated bonds provide good incremental yield, but also represent
exposure to the general housing slowdown and California's housing market that is
notorious for
86
- --------------------------------------------------------------------------------
"boom/bust" cycles. Going forward, we will remain very selective in our
purchases of lower quality debt, especially given that the currently tight
credit spreads do not compensate investors for the additional risk. When
possible, we will trade up in credit quality to protect against credit-related
underperformance when spreads eventually widen again.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
RATING LONG-TERM HOLDINGS
- -------------------------------------------------------------------
AAA 26.0%
- -------------------------------------------------------------------
AA 10.9
- -------------------------------------------------------------------
A 19.9
- -------------------------------------------------------------------
BBB 21.9
- -------------------------------------------------------------------
BB 0.9
- -------------------------------------------------------------------
NR 20.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
General Obligations 10.2%
- -------------------------------------------------------------------
Health Care/Services 5.2
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 17.6
- -------------------------------------------------------------------
Housing (HFA's, etc.) 2.8
- -------------------------------------------------------------------
Land Development 6.4
- -------------------------------------------------------------------
Miscellaneous 30.8
- -------------------------------------------------------------------
Pollution Control 0.8
- -------------------------------------------------------------------
Public Facilities 7.5
- -------------------------------------------------------------------
Transportation 0.6
- -------------------------------------------------------------------
Utilities -- Combined 0.9
- -------------------------------------------------------------------
Utilities -- Gas 1.1
- -------------------------------------------------------------------
Utilities -- Water and Sewer 9.6
- -------------------------------------------------------------------
Waste Disposal 1.3
- -------------------------------------------------------------------
Short-Term Investments 4.6
- -------------------------------------------------------------------
Other Assets & Liabilities 0.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
87
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) 10/31/96 - 10/31/06
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
----------------------- ------------------------------
10/31/96 9550 10000
9684 10183
9652 10140
9655 10159
9734 10253
9606 10116
9685 10201
9813 10354
9912 10464
10145 10754
10034 10653
10144 10780
10/97 10206 10849
10259 10913
10401 11072
10492 11186
10475 11190
10478 11200
10422 11149
10584 11326
10618 11370
10641 11399
10846 11575
10981 11719
10/98 10933 11719
10977 11760
11000 11790
11106 11930
11054 11878
11045 11894
11077 11924
10991 11855
10851 11684
10882 11727
10806 11633
10794 11638
10/99 10673 11511
10771 11634
10717 11547
10662 11497
10795 11630
10974 11885
10909 11814
10844 11753
11083 12064
11222 12232
11384 12421
11319 12356
10/00 11448 12491
11532 12585
11846 12896
11919 13024
11969 13066
12052 13183
11889 13040
12031 13180
12099 13268
12277 13465
12458 13687
12403 13641
10/01 12569 13803
12411 13687
12284 13558
12459 13793
12523 13959
12311 13685
12539 13953
12599 14038
12744 14186
12890 14368
13025 14541
13297 14860
10/02 13028 14613
12936 14553
13240 14860
13178 14822
13379 15029
13368 15038
13422 15138
13780 15492
13705 15426
13156 14886
13238 14997
13681 15438
10/03 13580 15361
13740 15521
13874 15649
13931 15739
14146 15976
14124 15920
13781 15543
13745 15487
13776 15543
13956 15747
14244 16063
14331 16148
10/04 14444 16287
14308 16153
14492 16350
14607 16503
14552 16448
14456 16345
14667 16602
14769 16720
14833 16823
14755 16747
14918 16916
14795 16802
10/05 14684 16700
14755 16780
14861 16925
14896 16971
14989 17085
14892 16967
14882 16961
14960 17036
14907 16972
15063 17174
15278 17429
15388 17550
10/06 15471 17660
</Table>
<Table>
--- TAX-FREE MINNESOTA FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX
$9,550 starting value $10,000 starting value
$15,471 ending value $17,660 ending value
</Table>
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds
with maturities greater than two years.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -------------------------------------------------------------------
Minnesota A# 6/2/1986 5.35% 4.24% 4.94% 5.88%
- -------------------------------------------------------------------
Minnesota A## 6/2/1986 0.61% 3.28% 4.46% 5.64%
- -------------------------------------------------------------------
Minnesota B# 11/14/1994 4.65% 3.58% NA* NA*
- -------------------------------------------------------------------
Minnesota B## 11/14/1994 -0.35% 3.23% NA* NA*
- -------------------------------------------------------------------
Minnesota C# 11/14/1994 4.65% 3.57% 4.09% 4.84%
- -------------------------------------------------------------------
Minnesota C## 11/14/1994 3.65% 3.57% 4.09% 4.84%
- -------------------------------------------------------------------
Minnesota E# 6/2/1986 5.32% 4.53% 5.08% 5.95%
- -------------------------------------------------------------------
Minnesota E## 6/2/1986 0.58% 3.57% 4.60% 5.71%
- -------------------------------------------------------------------
Minnesota H# 11/14/1994 4.63% 3.64% NA* NA*
- -------------------------------------------------------------------
Minnesota H## 11/14/1994 0.63% 3.29% NA* NA*
- -------------------------------------------------------------------
Minnesota L# 11/14/1994 5.38% 4.38% 4.88% 5.62%
- -------------------------------------------------------------------
Minnesota L## 11/14/1994 0.64% 3.42% 4.40% 5.22%
- -------------------------------------------------------------------
Minnesota M# 11/14/1994 4.63% 3.66% NA* NA*
- -------------------------------------------------------------------
Minnesota M## 11/14/1994 0.63% 3.31% NA* NA*
- -------------------------------------------------------------------
Minnesota N# 11/14/1994 4.63% 3.62% 4.12% 4.86%
- -------------------------------------------------------------------
Minnesota N## 11/14/1994 3.63% 3.62% 4.12% 4.86%
- -------------------------------------------------------------------
Minnesota Y# 2/19/2002 5.44% NA NA 4.90%
- -------------------------------------------------------------------
</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) Classes A, B and C were offered beginning on February 19,
2002. Performance prior to that date is that of the fund's
Classes E, M and N shares, respectively, which have lower
operating expenses. Performance prior to February 19, 2002
would have been lower if Classes A, B and C shares expenses
were applied during that period.
(2) The initial investment in Classes A, E and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, E, H, L, M,
N and Y shares will vary from results seen above due to
differences in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Tax-Free Minnesota Fund (Class A) gained 5.35%, before sales
charges, for the year ended October 31, 2006, underperformed its benchmark, the
Lehman Brothers Municipal Bond Index, which returned 5.75%. The Fund
outperformed the 4.96% average return of the Lipper Minnesota Municipal Debt
Funds peer group, a group of funds with investment strategies similar to those
of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
In general, it was a good year (fiscal year ending 10/31/06) for the bond market
despite the early bias towards higher rates (lower prices) due to continued
economic growth and the Federal Reserve Bank's (the Fed) tightening campaign
(i.e. raising interest rates). Early in the year many commodities reached
historical highs and the price of oil approached record levels. To keep
inflation in check, the Fed continued its cycle of monetary tightening that
began in the summer of 2004. By June of 2006, the Fed had raised its Federal
Funds Target Rate 17 consecutive times, leaving the rate at 5.25%. In response
to the increases in the Federal Funds Target Rate, short- and intermediate-term
bond yields rose through the first half of 2006. Thus, as interest rates rose,
the value of bonds declined. Due to technical factors (limited supply versus
greater demand), long-term bond yields did not rise as significantly as shorter
maturity debt. The market now finds itself with an inverted yield curve (short
interest rates are higher than long interest rates). The tax-exempt yield curve
performed similarly to the taxable curve, but for one significant factor -- the
municipal yield curve remains steep and has not inverted. The net result is a
tax-exempt yield curve that flattened during most of the fiscal year. By August
of 2006, the Fed believing it now had inflation under control, turned its focus
on concerns that economic growth was slowing. This new focus was supported by a
belief that strong housing market growth was now retreating. The Fed found
itself in a conundrum as to whether it should continue raising interest rates to
restrain inflation, or pause the tightening cycle to assess prospects for the
economy. Since changes in the rate of inflation often lag changes in economic
conditions, the Fed has held rates steady at its two most recent meetings.
Sensing that the Fed was now on hold for increasing rates, and in fact may have
to lower rates to spur the economy along, the bond markets rallied in
88
- --------------------------------------------------------------------------------
the final months of the fiscal year and investors sent yields lower (prices
higher).
The Fund demonstrated good performance both relative to its benchmark and within
its peer group. Away from actions taken by the Fed, one of the primary drivers
of market performance was the technical imbalance (demand greater than supply).
The demand for municipal securities remained strong throughout the year versus a
decline in municipal issuance. By fiscal year end, municipal issuance was down
12% compared to the prior year. The lack of issuance was even more acute in the
State of Minnesota where we estimate a decline of 33% for the year. Robust
demand has been exhibited by traditional buyers (insurance companies, mutual
funds) awash in cash from strong earnings and positive mutual fund cash flows.
Non-traditional investors (arbitrage/hedge funds) continued to demonstrate good
demand as these buyers took advantage of "carry trades" in the municipal market.
(A carry trade is when an investor makes a spread (or profit) based on the
steepness of the curve by borrowing at the short-term rate (lower cost of funds)
and purchasing longer maturity bonds and receiving the higher rate. The
difference between the long and short end rates is the "carry." Of course,
investor will only execute this trade when there is positive carry (i.e. steep
curve). Although municipal bonds historically have lagged the performance of the
taxable fixed income bonds when interest rates have fallen, this was not the
case in 2006. The municipal bond market tracked the positive performance of the
taxable market for most of the year.
The primary drivers of the Fund's performance have been duration extension and
curve positioning through increased exposure to the longer maturity bonds (25+
years), exposure to higher yielding bonds (triple-B and double-B rated) and the
tightening of credit spreads, and the active reduction of the Fund's exposure to
shorter maturity bonds. As interest rates fell, we actively sold the Fund's
exposure to short maturity bonds in favor of buying longer maturity bonds.
However, we would have preferred extending out further on the interest rate
curve, but the lack of supply in the State has made this strategy difficult and
thus hindered performance. This will remain a challenge for us as we continue to
execute this strategy. Nonetheless, the Fund's duration still increased from
6.45 years in 2005 to 6.53 years in 2006. Extending duration as interest rates
fell late in the fiscal year contributed positively to performance. Because this
strategy increases the Fund's sensitivity to movements in interest rates, it
could hurt future performance should interest rates reverse and begin to
increase. Curve positioning also contributed to the Fund's performance although
being out longer on the curve would have enhanced performance. One of our basic
themes has been to take advantage of a lack of substantial issuance of long
maturity debt. The Fund's exposure to the long maturity municipal debt benefited
incremental yield and total return performance. Demand for maximum yield long
maturity debt has been especially strong throughout the year. At times, the
Fund's exposure to variable rate daily and weekly resetting coupon securities
has been a drag on performance. A more rapid reduction in exposure to these
securities would have reduced the negative effect of holding these securities.
The Fund's exposure to triple-B and double-B rated securities also contributed
positively to performance. During the year, the Fund increased its exposure to
double-B rated securities to 9% from 4%. Holding more double-B rated bonds would
have further enhanced performance. Throughout the year, as interest rates
declined, there has been increased demand for higher yielding debt. Since the
beginning of the fiscal year, high yield issuance has been limited and the
performance of this particular sector has been especially strong. However, in
contrast holding insured bonds in the Fund has been a drag on performance. While
we prefer holding uninsured, non-investment grade bonds for the incremental
yield, this strategy may be a drag on future performance should a "flight to
quality" ensue. Current positive economic conditions at both the state and local
levels have allowed credit fundamentals for lower quality credits to improve.
Significant exposures to the "Education" and "Health Care" sectors particularly
benefited the Fund's performance. Strong demand for education and health care
related services and products coupled with positive demographic trends have
resulted in good credit performance and positive total return. Specifically, we
increased the Fund's exposure to Health Care Bonds to 19% (from 7%) by
selectively purchasing bonds that not only provide incremental yield, but also
stand to benefit from an aging population and the long-term demographic profiles
in certain markets of the State. In 2006, we decided to sell our position in
Puerto Rico "Tobacco" bonds for concerns regarding the Commonwealth's ability to
meet certain provisions of its settlement agreement with the tobacco industry.
No exposure to tobacco bonds hurt performance, since this sector continues to be
a positive performer. The State has not securitized its tobacco settlement
payments and we remain negative on Puerto Rico tobacco bonds. We remain cautious
on high yield credits due to a slowing economy and tighter credit spreads.
Although the tighter credit spreads helped performance to existing exposure, we
believe we are not fairly compensated for the risk of purchasing new exposure.
We favor trading up in credit quality for more reasonably priced bonds.
WHAT IS THE OUTLOOK?
At year end, technical conditions have changed slightly with a temporary surge
in the supply of municipal bonds. For the foreseeable future, we expect demand
to remain robust and to outweigh supply. Specifically, the demand from
non-traditional buyers should remain strong given the opportunities the
municipal market offers these buyers with a municipal curve that remains steeper
than most other taxable curves. Non-traditional buyers play an important role in
our assessment of the future performance by the municipal market. Until
non-traditional buyers find a better alternative, their presence and demand for
municipal bonds will assist municipal market out performance. We still prefer
going out longer on the municipal curve for incremental yield. The conclusion of
the recent election cycle and resulting Congress leave expectations for limited
reductions in future taxes. If anything, we expect future federal tax increases,
which will contribute to the
89
- --------------------------------------------------------------------------------
municipal markets' out performance because of the attractiveness of the federal,
state and local tax exemption provided by municipal investments. Additional
federal policy shifts in health care funding could hold negative consequences
for the entire health care sector. Minnesota government appears to be in a
stable period due to the re-election of many of the same governmental officials.
Current credit conditions appear stable as we believe we have not reached the
end of this favorable credit cycle despite concerns of a slowing economy. The
State's financial position remains sound and local governments have built
sizeable rainy day funds to offset any downturn in tax revenue. Our outlook for
high yield credit remains more cautious. The slowing of the housing market could
negatively impact a number of credits in the municipal high yield arena. We are
especially cautious on lower quality credits with any link to housing
construction, such as Special Tax bonds (3% exposure). Going forward, we will
remain very selective in our purchases of lower quality debt, especially given
that the currently tight credit spreads do not compensate investors for the
additional risk. When possible, we will trade up in credit quality to protect
against credit-related underperformance when spreads eventually widen again.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
RATING LONG-TERM HOLDINGS
- -------------------------------------------------------------------
AAA 27.9%
- -------------------------------------------------------------------
AA 15.7
- -------------------------------------------------------------------
A 23.6
- -------------------------------------------------------------------
BBB 20.3
- -------------------------------------------------------------------
BB 2.1
- -------------------------------------------------------------------
NR 10.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Airport Revenues 4.5%
- -------------------------------------------------------------------
General Obligations 15.7
- -------------------------------------------------------------------
Health Care/Services 20.1
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 9.8
- -------------------------------------------------------------------
Housing (HFA's, etc.) 10.7
- -------------------------------------------------------------------
Miscellaneous 15.0
- -------------------------------------------------------------------
Pollution Control 1.5
- -------------------------------------------------------------------
Public Facilities 3.5
- -------------------------------------------------------------------
Transportation 5.3
- -------------------------------------------------------------------
Utilities -- Combined 0.9
- -------------------------------------------------------------------
Utilities -- Electric 4.5
- -------------------------------------------------------------------
Utilities -- Water and Sewer 4.8
- -------------------------------------------------------------------
Short-Term Investments 2.3
- -------------------------------------------------------------------
Other Assets & Liabilities 1.4
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
90
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) 10/31/96 - 10/31/06
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
---------------------- ------------------------------
10/31/96 9550 10000
9723 10183
9666 10140
9663 10159
9739 10253
9601 10116
9679 10201
9820 10354
9925 10464
10249 10754
10089 10653
10222 10780
10/97 10282 10849
10333 10913
10510 11072
10617 11186
10592 11190
10577 11200
10485 11149
10686 11326
10706 11370
10717 11399
10900 11575
11037 11719
10/98 10999 11719
11029 11760
11059 11790
11169 11930
11101 11878
11082 11894
11123 11924
11023 11855
10832 11684
10864 11727
10763 11633
10754 11638
10/99 10601 11511
10726 11634
10654 11547
10593 11497
10741 11630
10952 11885
10882 11814
10811 11753
11080 12064
11223 12232
11398 12421
11327 12356
10/00 11450 12491
11530 12585
11892 12896
11973 13024
11999 13066
12099 13183
11881 13040
12014 13180
12100 13268
12291 13465
12553 13687
12480 13641
10/01 12649 13803
12483 13687
12308 13558
12532 13793
12651 13959
12374 13685
12641 13953
12749 14038
12889 14186
13064 14368
13228 14541
13545 14860
10/02 13265 14613
13147 14553
13502 14860
13409 14822
13641 15029
13622 15038
13739 15138
14124 15492
14019 15426
13373 14886
13505 14997
13910 15438
10/03 13819 15361
13985 15521
14133 15649
14231 15739
14457 15976
14427 15920
14064 15543
14009 15487
14057 15543
14261 15747
14572 16063
14660 16148
10/04 14800 16287
14676 16153
14872 16350
15028 16503
14968 16448
14857 16345
15120 16602
15252 16720
15353 16823
15292 16747
15463 16916
15347 16802
10/05 15259 16700
15358 16780
15492 16925
15531 16971
15640 17085
15553 16967
15549 16961
15629 17036
15597 16972
15779 17174
16033 17429
16172 17550
10/06 16298 17660
</Table>
<Table>
--- TAX-FREE NATIONAL FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX
$9,550 starting value $10,000 starting value
$16,298 ending value $17,660 ending value
</Table>
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds
with maturities greater than two years.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ------------------------------------------------------------------
National A# 6/2/1986 6.82% 5.20% 5.49% 6.45%
- ------------------------------------------------------------------
National A## 6/2/1986 2.01% 4.24% 5.00% 6.21%
- ------------------------------------------------------------------
National B# 11/14/1994 5.97% 4.36% NA* NA*
- ------------------------------------------------------------------
National B## 11/14/1994 0.97% 4.02% NA* NA*
- ------------------------------------------------------------------
National C# 11/14/1994 5.95% 4.44% 4.57% 5.43%
- ------------------------------------------------------------------
National C## 11/14/1994 4.95% 4.44% 4.57% 5.43%
- ------------------------------------------------------------------
National E# 6/2/1986 6.94% 5.37% 5.57% 6.49%
- ------------------------------------------------------------------
National E## 6/2/1986 2.12% 4.40% 5.09% 6.25%
- ------------------------------------------------------------------
National H# 11/14/1994 6.03% 4.43% NA* NA*
- ------------------------------------------------------------------
National H## 11/14/1994 2.03% 4.09% NA* NA*
- ------------------------------------------------------------------
National L# 11/14/1994 6.77% 5.17% 5.35% 6.22%
- ------------------------------------------------------------------
National L## 11/14/1994 1.97% 4.20% 4.86% 5.81%
- ------------------------------------------------------------------
National M# 11/14/1994 6.04% 4.43% NA* NA*
- ------------------------------------------------------------------
National M## 11/14/1994 2.04% 4.09% NA* NA*
- ------------------------------------------------------------------
National N# 11/14/1994 5.95% 4.42% 4.56% 5.42%
- ------------------------------------------------------------------
National N## 11/14/1994 4.95% 4.42% 4.56% 5.42%
- ------------------------------------------------------------------
National Y# 2/19/2002 6.91% NA NA 5.86%
- ------------------------------------------------------------------
</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) Classes A, B and C were offered beginning on February 19,
2002. Performance prior to that date is that of the fund's
Classes E, M and N shares, respectively, which have lower
operating expenses. Performance prior to February 19, 2002
would have been lower if Classes A, B and C shares expenses
were applied during that period.
(2) The initial investment in Classes A, E and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, E, H, L, M,
N and Y shares will vary from results seen above due to
differences in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Tax-Free National Fund (Class A) gained 6.82%, before sales
charges, for the year period ended October 31, 2006, outpacing its benchmark,
the Lehman Municipal Bond (National) Index, which returned 5.75%. The Fund also
outperformed the 5.41% average return of the Lipper General Municipal Debt Funds
peer group, a group of funds with investment strategies similar to those of the
Fund.
WHY DID THE FUND PERFORM THIS WAY?
In general, it was a good year (fiscal year ending 10/31/06) for the bond
market, despite the early bias towards higher rates (lower prices) due to
continued economic growth and the Federal Reserve Bank's tightening campaign.
Early in the year many commodities reached historical highs and the price of oil
approached record levels. To keep inflation in check, the Federal Reserve Bank
(the Fed) continued its cycle of monetary tightening that began in the summer of
2004. By June of 2006, the Fed had raised its Federal Funds Target Rate 17
consecutive times, leaving the rate at 5.25%. In response to the increases in
the Federal Funds Target Rate, short- and intermediate-term bond yields rose
through the first half of 2006. Thus, as interest rates rose, the value of bonds
declined. Due to technical factors (limited supply versus greater demand),
long-term bond yields did not rise as significantly as shorter maturity debt.
The market now finds itself with an inverted yield curve (short interest rates
are higher than long interest rates). The tax-exempt yield curve performed
similarly to the taxable curve, but for one significant factor -- the municipal
yield curve remains steep and has not inverted. The net result is a tax-exempt
yield curve that flattened during most of the fiscal year. By August of 2006,
the Fed believing it now had inflation under control, turned its focus on
concerns that economic growth was slowing. This new focus was supported by a
belief that strong housing market growth was now retreating. The Fed found
itself in a conundrum, whether it should continue raising interest rates to
restrain inflation, or pause the tightening cycle to assess prospects for the
economy. Since changes in the rate of inflation often lag changes in economic
conditions, the Fed has held rates
91
- --------------------------------------------------------------------------------
steady at its two most recent meetings. Sensing that the Fed was now on hold for
increasing rates, and in fact may have to lower rates to spur the economy along,
the bond markets rallied in the final months of the fiscal year and investors
sent yields lower (prices higher).
The Fund demonstrated good performance both relative to its benchmark and within
its peer group. Away from actions taken by the Federal Reserve Bank, one of the
primary drivers of market performance was the technical imbalance (demand
greater than supply). The demand for municipal securities remained strong
throughout the year versus a decline in municipal issuance. By fiscal year end,
municipal issuance was down 12% compared to the prior year. Robust demand has
been exhibited by traditional buyers (insurance companies, mutual funds) awash
in cash from strong earnings and positive mutual fund cash flows. Non-
traditional investors (arbitrage/hedge funds) continued to demonstrate good
demand as these buyers took advantage of "carry trades" in the municipal market.
(A carry trade is when an investor makes a spread (or profit) based on the
steepness of the curve by borrowing at the short-term rate (lower cost of funds)
and purchasing longer maturity bonds and receiving the higher rate. The
difference between the long and short end rates is the "carry." Of course,
investor will only execute this trade when there is positive carry (i.e. steep
curve). Although municipal bonds historically have lagged the performance of the
taxable fixed income bonds when interest rates have fallen, this was not the
case in 2006. The municipal bond market tracked the positive performance of the
taxable market for most of the year.
The primary drivers of the Fund's performance have been duration extension and
curve positioning through increased exposure to the longer maturity bonds (25+
years), exposure to higher yielding bonds (triple-B and double-B rated) and the
tightening of credit spreads, and the active reduction of the Fund's exposure to
shorter maturity bonds. As interest rates fell, we actively sold the Fund's
exposure to short maturity securities in favor of buying longer maturity bonds.
The Fund's duration increased from 6.84 years in 2005 to 7.22 years in 2006.
Extending duration as interest rates fell late in the fiscal year contributed
positively to performance. Because this strategy increases the Fund's
sensitivity to movements in interest rates, it could hurt future performance
should interest rates reverse and begin to increase. Curve positioning also
contributed positively to the Fund's performance. One of our basic themes has
been to take advantage of a lack of substantial issuance of long maturity debt.
The Fund's exposure to the long maturity municipal debt benefited incremental
yield and total return performance. Mutual fund demand for maximum yield long
maturity debt has been especially strong throughout the year. At times, the
Fund's exposure to variable rate daily and weekly resetting coupon securities
has been a drag on performance. A more rapid reduction in exposure to these
securities would have reduced the negative effect of holding these securities.
The Fund's exposure to triple-B and double-B rated securities also contributed
positively to performance. During the year, the Fund increased its combined
exposure to these lower rated securities to 53% from 46%. Throughout the year,
as interest rates declined, there has been increased demand for higher yielding
debt. Since the beginning of the fiscal year, high yield issuance has been
limited and the performance of this particular sector has been especially
strong. However in contrast, the Fund's position in insured bonds has been a
drag on performance. While we prefer holding uninsured, non-investment grade
bonds for the incremental yield, this strategy may be a drag on future
performance should a "flight to quality" ensue. Current positive economic
conditions at both the state and local levels have allowed credit fundamentals
for lower quality credits to improve. Significant exposures to the "Education,"
"Health Care," and "Special Tax" sectors particularly benefited the Fund's
performance. Strong demand for the services and products these sectors represent
and positive demographic trends have resulted in good credit performance and
positive total return. We recognize the risk of a weakening housing market and
have increased our credit selectivity when making new purchases to bonds with
exposure to housing construction (Special Tax Bonds). (A special tax bond is a
bond secured by special assessment taxes levied on certain real estate). In
2006, we also increased our exposure to "Tobacco Bonds" from 6% to 8%. Tobacco
bonds continue to be strong performers. We favor these bonds due to the reduced
headline risk caused by legal challenges to the tobacco industry as well as for
the incremental yield provided by these bonds. Earlier in the year, the Fund's
exposure to the Commonwealth of Puerto Rico had been a drag on the Fund's
performance as credit spreads widened due to a deteriorating fiscal position and
a limited closure of some of the Commonwealth's governmental services. We opted
to reduce the Fund's exposure to this credit, until a long-term solution to the
Commonwealth's financial crisis is crafted. We remain cautious on high yield
credits due to a slowing economy and tighter credit spreads. Although the
tighter credit spreads helped performance to existing exposure, we believe we
are not fairly compensated for the risk of purchasing new exposure. We favor
trading up in credit quality for more reasonably priced bonds.
WHAT IS THE OUTLOOK?
At year end, technical conditions have changed slightly with a temporary surge
in the supply of municipal bonds. For the foreseeable future, we expect demand
to remain robust and to outweigh supply. Specifically, the demand from
non-traditional buyers should remain strong given the opportunities the
municipal market offers these buyers with a municipal curve that remains steeper
than most other taxable curves. Non-traditional buyers play an important role in
our assessment of the future performance by the municipal market. Until
non-traditional buyers find a better alternative, their presence and demand for
municipal bonds will assist municipal market out performance. We still prefer
going out longer on the municipal curve for incremental yield. The conclusion of
the recent election cycle and resulting Congress leave expectations for limited
reductions in future taxes. If anything, we expect future federal tax increases,
which will contribute to the municipal markets' out performance because of the
attractiveness of the federal, state and local tax exemption provided by
municipal investments. Additional federal policy shifts in health care funding
92
- --------------------------------------------------------------------------------
could hold negative consequences for the entire health care sector. Current
credit conditions appear stable as we believe we have not reached the end of
this favorable credit cycle despite concerns of a slowing economy. Most state
and local governments have built sizeable rainy day funds to offset any downturn
in tax revenue. Our outlook for high yield credit remains more cautious. The
slowing of the housing market could negatively impact a number of credits in the
municipal high yield arena. We are especially cautious on lower quality credits
with any link to housing construction, such as Special Tax Bonds. Going forward,
we will remain very selective in our purchases of lower quality bonds,
especially given that the currently tight credit spreads do not compensate
investors for the additional risk. When possible, we will trade up in credit
quality to protect against credit-related underperformance when spreads
eventually widen again.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
RATING LONG-TERM HOLDINGS
- -------------------------------------------------------------------
AAA 7.9%
- -------------------------------------------------------------------
AA 6.9
- -------------------------------------------------------------------
A 16.9
- -------------------------------------------------------------------
BBB 39.1
- -------------------------------------------------------------------
BB 2.1
- -------------------------------------------------------------------
NR 27.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Airport Revenues 0.8%
- -------------------------------------------------------------------
General Obligations 16.1
- -------------------------------------------------------------------
Health Care/Services 15.3
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 15.2
- -------------------------------------------------------------------
Housing (HFA's, etc.) 8.1
- -------------------------------------------------------------------
Industrial 2.0
- -------------------------------------------------------------------
Land Development 3.5
- -------------------------------------------------------------------
Miscellaneous 15.6
- -------------------------------------------------------------------
Pollution Control 2.6
- -------------------------------------------------------------------
Public Facilities 7.8
- -------------------------------------------------------------------
Transportation 3.1
- -------------------------------------------------------------------
Utilities -- Electric 3.0
- -------------------------------------------------------------------
Utilities -- Water and Sewer 3.8
- -------------------------------------------------------------------
Short-Term Investments 3.3
- -------------------------------------------------------------------
Other Assets & Liabilities -0.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DISTRIBUTION BY STATE
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
STATE NET ASSETS
- -------------------------------------------------------------------
Alabama 1.7%
- -------------------------------------------------------------------
Alaska 0.8
- -------------------------------------------------------------------
Arizona 4.4
- -------------------------------------------------------------------
California 14.4
- -------------------------------------------------------------------
Colorado 3.9
- -------------------------------------------------------------------
Connecticut 0.8
- -------------------------------------------------------------------
Florida 5.0
- -------------------------------------------------------------------
Georgia 4.0
- -------------------------------------------------------------------
Idaho 0.8
- -------------------------------------------------------------------
Illinois 5.6
- -------------------------------------------------------------------
Iowa 0.8
- -------------------------------------------------------------------
Kansas 2.6
- -------------------------------------------------------------------
Kentucky 0.1
- -------------------------------------------------------------------
Louisiana 0.4
- -------------------------------------------------------------------
Maryland 0.9
- -------------------------------------------------------------------
Massachusetts 0.8
- -------------------------------------------------------------------
Michigan 3.9
- -------------------------------------------------------------------
Minnesota 5.1
- -------------------------------------------------------------------
Mississippi 1.2
- -------------------------------------------------------------------
Missouri 0.4
- -------------------------------------------------------------------
Nevada 1.7
- -------------------------------------------------------------------
New Hampshire 1.4
- -------------------------------------------------------------------
New Jersey 5.4
- -------------------------------------------------------------------
New Mexico 0.5
- -------------------------------------------------------------------
New York 6.1
- -------------------------------------------------------------------
North Carolina 0.8
- -------------------------------------------------------------------
North Dakota 0.4
- -------------------------------------------------------------------
Ohio 1.4
- -------------------------------------------------------------------
Other U.S. Territories 1.5
- -------------------------------------------------------------------
Pennsylvania 2.7
- -------------------------------------------------------------------
Rhode Island 5.9
- -------------------------------------------------------------------
South Carolina 1.4
- -------------------------------------------------------------------
Tennessee 2.0
- -------------------------------------------------------------------
Texas 2.8
- -------------------------------------------------------------------
Vermont 0.4
- -------------------------------------------------------------------
Virginia 3.2
- -------------------------------------------------------------------
Washington 0.5
- -------------------------------------------------------------------
Wisconsin 1.2
- -------------------------------------------------------------------
Short-Term Investments 3.3
- -------------------------------------------------------------------
Other Assets & Liabilities -0.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
93
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 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS NEW YORK MUNICIPAL
TAX-FREE NEW YORK FUND BOND INDEX
---------------------- ----------------------------------
10/31/02 9550 10000
9473 9945
9733 10161
9661 10138
9832 10275
9850 10285
9937 10350
10257 10584
10169 10542
9644 10185
9753 10267
10098 10563
10/03 10031 10515
10171 10622
10320 10698
10385 10758
10577 10915
10538 10874
10225 10627
10165 10588
10197 10621
10351 10761
10589 10970
10672 11029
10/04 10785 11121
10667 11028
10822 11155
10937 11252
10893 11220
10819 11147
10987 11314
11074 11392
11170 11460
11128 11406
11235 11518
11149 11441
10/05 11073 11377
11117 11424
11216 11525
11240 11554
11340 11637
11258 11559
11250 11554
11297 11605
11256 11560
11393 11696
11574 11861
11677 11942
10/06 11760 12014
</Table>
<Table>
--- TAX-FREE NEW YORK FUND --- LEHMAN BROTHERS NEW YORK MUNICIPAL
$9,550 starting value BOND INDEX
$11,760 ending value $10,000 starting value
$12,014 ending value
</Table>
LEHMAN BROTHERS NEW YORK MUNICIPAL BOND INDEX is an unmanaged index of municipal
bonds issued by the State of New York with maturities greater than two years.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR INCEPTION
- --------------------------------------------------
New York A# 10/31/2002 6.21% 5.34%
- --------------------------------------------------
New York A## 10/31/2002 1.43% 4.13%
- --------------------------------------------------
New York B# 10/31/2002 5.41% 4.57%
- --------------------------------------------------
New York B## 10/31/2002 0.41% 3.91%
- --------------------------------------------------
New York C# 10/31/2002 5.41% 4.57%
- --------------------------------------------------
New York C## 10/31/2002 4.41% 4.57%
- --------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B and C shares
will vary from 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?
The Hartford Tax-Free New York Fund (Class A) gained 6.21%, before sales
charges, for the year ended October 31, 2006, outpacing its benchmark, the
Lehman New York Exempt Bond Index, which returned 5.60%. The Fund also
outperformed the 5.51% average return of the Lipper New York Municipal Debt
Funds peer group, a group of funds with investment strategies similar to those
of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
In general, it was a good year (fiscal year ending 10/31/06) for the bond
market, despite the early bias towards higher rates (lower prices) due to
continued economic growth and the Federal Reserve Bank's tightening campaign.
Early in the year many commodities reached historical highs and the price of oil
approached record levels. To keep inflation in check, the Federal Reserve Bank
continued its cycle of monetary tightening that began in the summer of 2004. By
June of 2006, the Federal Reserve Bank had raised its Federal Funds Target Rate
17 consecutive times, leaving the rate at 5.25%. In response to the increases in
the Federal Funds Target Rate, short- and intermediate-term bond yields rose
through the first half of 2006. Thus, as interest rates rose, the value of bonds
declined. Due to technical factors (limited supply versus greater demand),
long-term bond yields did not rise as significantly as shorter maturity debt.
The market now finds itself with an inverted yield curve (short interest rates
are higher than long interest rates). The tax-exempt yield curve performed
similarly to the taxable curve, but for one significant factor -- the municipal
yield curve remains steep and has not inverted. The net result is a tax-exempt
yield curve that flattened during most of the fiscal year. By August of 2006,
the Federal Reserve Bank believing it now had inflation under control, turned
its focus on concerns that economic growth was slowing. This new focus was
supported by a belief that strong housing market growth was now retreating. The
Federal Reserve Bank found itself in a conundrum as to whether it should
continue raising interest rates to restrain inflation, or pause the tightening
cycle to assess prospects for the economy. Since changes in the rate of
inflation often lag changes in economic conditions, the Federal Reserve Bank has
held rates steady at its two most recent meetings. Sensing that the Federal
Reserve Bank was now on hold for increasing rates, and in fact may have to lower
rates to spur the economy along, the bond markets rallied in the final months of
the fiscal year and investors sent yields lower (prices higher).
The Fund demonstrated good performance both relative to its benchmark and within
its peer group. Away from actions taken by the Federal Reserve Bank, one of the
primary drivers of market
94
- --------------------------------------------------------------------------------
performance was the technical imbalance (demand greater than supply). The demand
for municipal securities remained strong throughout the year versus a decline in
municipal issuance. By fiscal year end, municipal issuance was down 12% compared
to the prior year. The lack of issuance was even more acute in the State of New
York where we estimate a decline of 33% for the year. Robust demand has been
exhibited by traditional buyers (insurance companies, mutual funds) awash in
cash from strong earnings and positive mutual fund cash flows. Non-traditional
investors (arbitrage/hedge funds) continued to demonstrate good demand as these
buyers took advantage of "carry trades" in the municipal market. (A carry trade
is when an investor makes a spread (or profit) based on the steepness of the
curve by borrowing at the short-term rate (lower cost of funds) and purchasing
longer maturity bonds and receiving the higher rate. The difference between the
long and short end rates is the "carry." Of course, investor will only execute
this trade when there is positive carry (i.e. steep curve). Although municipal
bonds historically have lagged the performance of the taxable fixed income bonds
when interest rates have fallen, this was not the case in 2006. The municipal
bond market tracked the positive performance of the taxable market for most of
the year.
The primary drivers of the Fund's performance have been duration extension and
curve positioning through increased exposure to the longer maturity bonds (25+
years), exposure to higher yielding bonds (triple-B rated) and the tightening of
credit spreads, and the active reduction of the Fund's exposure to shorter
maturity bonds. As interest rates fell, we actively sold the Fund's exposure to
short maturity bonds in favor of buying longer maturity bonds. The Fund's
duration increased from 6.60 years in 2005 to 7.63 years in 2006. Extending
duration as interest rates fell late in the fiscal year contributed positively
to performance. Because this strategy increases the Fund's sensitivity to
movements in interest rates, it could hurt future performance should interest
rates reverse and begin to increase. Curve positioning also contributed
positively to the Fund's performance. One of our basic themes has been to take
advantage of a lack of substantial issuance of long maturity debt. The Fund's
exposure to the long maturity municipal debt benefited incremental yield and
total return performance. Demand for maximum yield long maturity debt has been
especially strong throughout the year. At times, the Fund's exposure to variable
rate daily and weekly resetting coupon securities has been a drag on
performance. A more rapid reduction in exposure to these securities would have
reduced the negative effect of holding these securities.
The Fund's exposure to triple-B rated securities also contributed positively to
performance. During the year, the Fund increased its exposure to these lower
rated securities to 33% from 26%. Throughout the year, as interest rates
declined, there has been increased demand for higher yielding debt. Since the
beginning of the fiscal year, high yield issuance has been limited and the
performance of this particular sector has been especially strong. However in
contrast, holding insured bonds in the Fund (21%) has been a drag on
performance. Throughout the year, we have found it especially difficult to
source non-investment grade paper in New York. The Fund's exposure to the
double-B credits was limited to 5%. The lack of greater exposure to this rating
category was a drag on performance as credit spreads tightened. However, the
Fund will be properly positioned should a "flight to quality" ensue. Current
positive economic conditions at both the state and local levels have allowed
credit fundamentals for lower quality credits to improve. Significant exposures
to the "Education" and "Health Care" sectors particularly benefited Fund
performance. Our exposure to Health Care Bonds increased to 11% from 6%. Strong
demand for health care related services and products coupled with positive
demographic trends have resulted in good credit performance and positive total
return. In 2006, we also increased our exposure to "Tobacco Bonds" to 13% from
10%. Tobacco bonds continue to be one of the Fund's best performers. We favor
these bonds due to the reduced headline risk caused by legal challenges to the
tobacco industry as well as for the incremental yield provided by these bonds.
Earlier in the year, the Fund's exposure to the Commonwealth of Puerto Rico had
been a drag on performance as credit spreads widened due to a deteriorating
fiscal position and a limited closure of some of the Commonwealth's governmental
services. We opted to reduce Fund exposure to this credit, until a long-term
solution to the Commonwealth's financial crisis is crafted. We remain cautious
on high yield credits due to a slowing economy and tighter credit spreads.
Although the tighter credit spreads helped performance to existing exposure, we
believe we are not fairly compensated for the risk of purchasing new exposure.
We favor trading up in credit quality for more reasonably priced bonds.
WHAT IS THE OUTLOOK?
At year end, technical conditions have changed slightly with a temporary surge
in the supply of municipal bonds. For the foreseeable future, we expect demand
to remain robust and to outweigh supply. Specifically, the demand from
non-traditional buyers should remain strong given the opportunities the
municipal market offers these buyers with a municipal curve that remains steeper
than most other taxable curves. Non-traditional buyers play an important role in
our assessment of the future performance by the municipal market. Until
non-traditional buyers find a better alternative, their presence and demand for
municipal bonds will assist municipal market out performance. We still prefer
going out longer on the municipal curve for incremental yield. The conclusion of
the recent election cycle and resulting Congress leave expectations for limited
reductions in future taxes. If anything, we expect future federal tax increases,
which will contribute to the municipal markets' out performance because of the
attractiveness of the federal, state and local tax exemption provided by
municipal investments. Additional federal policy shifts in health care funding
could hold negative consequences for the entire health care sector. This would
hold especially true for an over-bedded health care market such as New York.
Also, we will watch closely the recent changes in New York government and its
likely impact on state and local credits.
Current credit conditions appear stable as we believe we have not reached the
end of this favorable credit cycle despite concerns of a
95
- --------------------------------------------------------------------------------
slowing economy. The State's current financial position remains positive with
further increases in tax receipts and a projected surplus for the year that
should help reduce future budget gaps. Our outlook for high yield credit remains
more cautious. The slowing of the housing market could negatively impact a
number of credits in the municipal high yield arena. We are especially cautious
on lower quality credits with any link to housing construction, such as Special
Tax bonds (4% exposure). Going forward, we will remain very selective in our
purchases of lower quality bonds, especially given that the currently tight
credit spreads do not compensate investors for the additional risk. When
possible, we will trade up in credit quality to protect against credit-related
underperformance when spreads eventually widen again.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
RATING LONG-TERM HOLDINGS
- -------------------------------------------------------------------
AAA 19.4%
- -------------------------------------------------------------------
AA 18.4
- -------------------------------------------------------------------
A 28.3
- -------------------------------------------------------------------
BBB 28.1
- -------------------------------------------------------------------
BB 2.7
- -------------------------------------------------------------------
NR 3.1
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Airport Revenues 2.4%
- -------------------------------------------------------------------
General Obligations 7.9
- -------------------------------------------------------------------
Health Care/Services 9.0
- -------------------------------------------------------------------
Higher Education (Univ., Dorms, etc.) 27.5
- -------------------------------------------------------------------
Housing (HFA's, etc.) 3.5
- -------------------------------------------------------------------
Industrial 4.8
- -------------------------------------------------------------------
Miscellaneous 17.6
- -------------------------------------------------------------------
Pollution Control 4.0
- -------------------------------------------------------------------
Public Facilities 7.5
- -------------------------------------------------------------------
Transportation 6.4
- -------------------------------------------------------------------
Utilities -- Electric 1.7
- -------------------------------------------------------------------
Utilities -- Water and Sewer 3.0
- -------------------------------------------------------------------
Short-Term Investments 0.9
- -------------------------------------------------------------------
Other Assets & Liabilities 3.8
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
96
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) 10/31/96 - 10/31/06
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
---------------------- -----------------------------------
10/31/96 9550 10000
9750 10171
9683 10076
9736 10108
9769 10133
9642 10020
9787 10171
9892 10267
10035 10390
10368 10670
10256 10579
10420 10736
10/97 10511 10892
10582 10942
10728 11052
10874 11194
10867 11185
10913 11223
10951 11281
11060 11388
11141 11485
11141 11509
11213 11697
11515 11971
10/98 11383 11907
11503 11975
11533 12011
11623 12096
11331 11884
11389 11950
11448 11988
11284 11883
11216 11845
11176 11795
11153 11789
11256 11926
19/99 11281 11970
11286 11969
11220 11911
11192 11872
11326 12015
11476 12174
11458 12139
11451 12133
11711 12385
11788 12498
11923 12679
11991 12759
10/00 12024 12843
12210 13054
12483 13297
12756 13513
12831 13631
12848 13699
12830 13641
12900 13723
12880 13775
13177 14084
13324 14246
13358 14411
10/01 13582 14712
13508 14509
13447 14417
13499 14533
13551 14674
13340 14431
13597 14711
13740 14836
13718 14963
13748 15144
14011 15400
14142 15650
10/02 14193 15578
14345 15573
14695 15895
14817 15910
15042 16129
15063 16117
15254 16250
15579 16553
15566 16520
15096 15964
15201 16070
15609 16496
10/03 15494 16342
15550 16381
15745 16548
15868 16681
15989 16862
16079 16988
15689 16546
15632 16480
15695 16573
15805 16737
16079 17056
16155 17103
10/04 16284 17246
16228 17108
16364 17266
16441 17374
16379 17272
16269 17183
16461 17416
16597 17604
16715 17700
16591 17539
16769 17764
16577 17581
10/05 16446 17442
16512 17519
16646 17685
16655 17686
16690 17745
16532 17571
16516 17539
16472 17520
16484 17557
16671 17795
16919 18067
17040 18226
10/06 17161 18347
</Table>
<Table>
--- TOTAL RETURN BOND FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX
$9,550 starting value $10,000 starting value
$17,161 ending value $18,347 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ---------------------------------------------------------------------
Total Return A# 7/22/1996 4.35% 4.79% 6.03% 6.30%
- ---------------------------------------------------------------------
Total Return A## 7/22/1996 -0.35% 3.83% 5.55% 5.82%
- ---------------------------------------------------------------------
Total Return B# 7/22/1996 3.56% 4.04% NA* NA*
- ---------------------------------------------------------------------
Total Return B## 7/22/1996 -1.42% 3.71% NA* NA*
- ---------------------------------------------------------------------
Total Return C# 7/22/1996 3.63% 4.13% 5.32% 5.58%
- ---------------------------------------------------------------------
Total Return C## 7/22/1996 2.63% 4.13% 5.32% 5.58%
- ---------------------------------------------------------------------
Total Return I# 7/22/1996 4.50% 4.82% 6.05% 6.31%
- ---------------------------------------------------------------------
Total Return Y# 7/22/1996 4.89% 5.30% 6.52% 6.79%
- ---------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
* 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. Class I shares commenced
operations on 8/31/06. Performance prior to 8/31/06 reflects
Class A performance.
(2) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, I and Y
shares will vary from 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?
The Hartford Total Return Bond Fund (Class A) gained 4.35%, before sales
charges, for the 12 month period ended October, 2006, trailing its benchmark,
the Lehman Aggregate Bond Index, which returned 5.19%. The Fund also lagged the
4.62% return of the Lipper Intermediate Investment Grade Debt Funds peer group,
a group of funds with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began with continued
flattening of the U.S. Treasury yield curve. Historically high energy and
commodity prices, a boom in the housing market, and a strengthening economy led
to concerns about rising inflation. To keep inflation in check, the Federal
Reserve (the Fed) continued its cycle of monetary tightening that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. In contrast, long-term bond yields remained
relatively stable due, in large part, to overseas demand and expectations that
the Fed could keep inflation low over the long run. By the August 8th meeting of
the Federal Open Market Committee (FOMC), the economic outlook at the Fed
suggested a slowing in economic growth and a subsequent moderation in inflation
pressures. The Fed Funds rate was left at 5.25%, unchanged for the first time
since May 2004. Rates across the yield curve fell in the wake of the FOMC pause
as the market began to price in an environment of slow economic growth and a
series of Fed Funds rate cuts that would likely follow.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. Fortunately,
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out longer on
the yield curve. Thus, many investors added lower quality and foreign issues as
they sought greater yield. During the period, the traditionally "riskier" high
yield and emerging markets bonds were among the strongest performers for the
year.
97
- --------------------------------------------------------------------------------
A key driver of performance relative to the benchmark has been the Fund's
defensive position against rising interest rates through most of the 12 month
period. Although rising rates detracted from the Fund's return on an absolute
basis, the Fund's shorter-than-benchmark duration added to performance on a
relative basis. While the Fund was appropriately positioned for a flattening
yield curve through most of the period, the timing of the curve positioning
detracted slightly from performance. The Fund benefited from its exposure to the
out-of-index U.S. High Yield Bond and U.S. Dollar Emerging Markets Debt sectors.
These traditionally risky sectors were the strongest performing bond groups of
the twelve month period. Since the Fund shifted away from Treasuries to invest
in other sectors, the Fund's underweight to Treasuries was another contributor
to relative performance. The Fund's allocation to the Non-Dollar sector and
hedging positions were modest detractors from relative return. Security
selection was particularly strong within the Investment Grade Corporate sectors,
but was offset by underperformance in Mortgage-Backed Securities and U.S.
Treasuries.
WHAT IS THE OUTLOOK?
The recent rally in bonds has priced in an environment of economic weakness that
is not consistent with our view. Declines in interest rates and gasoline prices,
coupled with a decent employment picture and gains in the stock market, should
be supportive of continued spending. While housing remains a wild card for the
U.S. economy, our view is that the Federal Reserve is still concerned with
inflation and that policy decisions will favor price stability as long as
economic growth does not decline dramatically. We continue to position the
portfolio with a slight bias towards higher interest rates. With the Federal
Reserve's rate hike campaign on hold and slower, but positive, growth ahead, the
environment for spread sectors (those that offer yield premiums over Treasuries)
is favorable. Strong earnings, a benign inflation and interest rate environment,
and attractive yields all suggest the High Yield sector continues to offer
value. We also believe that opportunities continue to exist in the Non-Dollar
and Emerging Markets sectors. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the U.S.
consumer and what implications that has for the economy going forward.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
LONG-TERM
RATING HOLDINGS
- -------------------------------------------------------------------
AAA 54.6%
- -------------------------------------------------------------------
AA 2.1
- -------------------------------------------------------------------
A 14.9
- -------------------------------------------------------------------
BBB 13.3
- -------------------------------------------------------------------
BB 9.2
- -------------------------------------------------------------------
B 5.4
- -------------------------------------------------------------------
CCC 0.3
- -------------------------------------------------------------------
NR 0.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 2.5%
- -------------------------------------------------------------------
Capital Goods 0.8
- -------------------------------------------------------------------
Consumer Cyclical 1.9
- -------------------------------------------------------------------
Consumer Staples 1.0
- -------------------------------------------------------------------
Energy 2.1
- -------------------------------------------------------------------
Finance 27.3
- -------------------------------------------------------------------
Foreign Governments 0.4
- -------------------------------------------------------------------
General Obligations 0.1
- -------------------------------------------------------------------
Health Care 1.6
- -------------------------------------------------------------------
Services 3.8
- -------------------------------------------------------------------
Technology 5.2
- -------------------------------------------------------------------
Transportation 0.7
- -------------------------------------------------------------------
U.S. Government Agencies 26.8
- -------------------------------------------------------------------
U.S. Government Securities 11.3
- -------------------------------------------------------------------
Utilities 2.9
- -------------------------------------------------------------------
Short-Term Investments 30.2
- -------------------------------------------------------------------
Other Assets & Liabilities -18.6
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
98
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) 10/31/96 - 10/31/06
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
------------------------------- --------------------------------
10/31/96 9550 10000
9706 10174
9619 10070
9649 10081
9668 10095
9558 9988
9697 10132
9782 10220
9889 10335
10140 10628
10057 10523
10208 10681
10/97 10347 10866
10375 10922
10471 11036
10613 11201
10593 11170
10629 11202
10666 11252
10772 11368
10879 11497
10893 11515
11118 11815
11391 12133
10/98 11287 12092
11337 12096
11363 12123
11411 12193
11182 11903
11243 11950
11267 11977
11159 11872
11111 11848
11063 11831
11039 11831
11177 11927
10/99 11192 11946
11196 11929
11137 11852
11091 11869
11212 12038
11346 12249
11327 12215
11307 12223
11508 12441
11606 12561
11770 12747
11870 12783
10/00 11958 12906
12167 13159
12417 13422
12561 13557
12692 13711
12756 13759
12681 13619
12730 13664
12747 13726
13034 14056
13171 14231
13403 14478
10/01 13629 14852
13432 14519
13347 14392
13418 14486
13581 14619
13398 14301
13646 14642
13751 14730
13870 14936
14113 15264
14297 15566
14541 15931
10/02 14492 15803
14411 15667
14792 16047
14709 16007
14937 16265
14899 16218
14988 16294
15285 16716
15145 16629
14487 15942
14539 16031
14955 16497
10/03 14791 16262
14827 16281
14922 16425
15018 16561
15178 16759
15293 16907
14941 16398
14824 16337
14910 16404
15059 16556
15288 16879
15279 16913
10/04 15395 17048
15270 16845
15403 16996
15468 17103
15376 16982
15351 16925
15553 17197
15678 17396
15739 17494
15583 17283
15785 17538
15640 17330
10/05 15516 17208
15547 17286
15677 17447
15671 17417
15712 17444
15564 17287
15517 17239
15491 17243
15517 17291
15701 17497
15903 17744
16036 17902
10/06 16101 17996
</Table>
<Table>
--- U.S. GOVERNMENT SECURITIES FUND --- LEHMAN BROTHERS U.S. GOV'T INDEX
$9,550 starting value $10,000 starting value
$16,101 ending value $17,996 ending value
</Table>
LEHMAN BROTHERS U.S. GOVERNMENT INDEX is an unmanaged index of government bonds
with maturities of one year or more.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- --------------------------------------------------------------------
U.S. Gov A# 2/28/1973 3.77% 3.39% 5.36% 7.46%
- --------------------------------------------------------------------
U.S. Gov A## 2/28/1973 -0.90% 2.44% 4.88% 7.31%
- --------------------------------------------------------------------
U.S. Gov B# 11/14/1994 3.01% 2.60% NA* NA*
- --------------------------------------------------------------------
U.S. Gov B## 11/14/1994 -1.99% 2.26% NA* NA*
- --------------------------------------------------------------------
U.S. Gov C# 11/14/1994 3.01% 2.60% 4.46% 5.11%
- --------------------------------------------------------------------
U.S. Gov C## 11/14/1994 2.01% 2.60% 4.46% 5.11%
- --------------------------------------------------------------------
U.S. Gov E# 2/28/1973 4.12% 3.72% 5.53% 7.51%
- --------------------------------------------------------------------
U.S. Gov E## 2/28/1973 -0.57% 2.77% 5.04% 7.36%
- --------------------------------------------------------------------
U.S. Gov H# 11/14/1994 3.08% 2.68% NA* NA*
- --------------------------------------------------------------------
U.S. Gov H## 11/14/1994 -0.88% 2.33% NA* NA*
- --------------------------------------------------------------------
U.S. Gov L# 11/14/1994 3.86% 3.47% 5.27% 5.93%
- --------------------------------------------------------------------
U.S. Gov L## 11/14/1994 -0.82% 2.53% 4.78% 5.52%
- --------------------------------------------------------------------
U.S. Gov M# 11/14/1994 3.08% 2.70% NA* NA*
- --------------------------------------------------------------------
U.S. Gov M## 11/14/1994 -0.88% 2.35% NA* NA*
- --------------------------------------------------------------------
U.S. Gov N# 11/14/1994 3.09% 2.68% 4.49% 5.14%
- --------------------------------------------------------------------
U.S. Gov N## 11/14/1994 2.10% 2.68% 4.49% 5.14%
- --------------------------------------------------------------------
U.S. Gov Y# 2/19/2002 3.75% NA NA 4.06%
- --------------------------------------------------------------------
</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 Classes A, B and C were offered beginning on February
19, 2002. Performance prior to that date is that of the
fund's Classes E, M and N shares, respectively, which have
lower operating expenses. Performance prior to February 19,
2002 would have been lower if Classes A, B and C shares
expenses were applied during that period.
(2) The initial investment in Classes A, E and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, E, H, L, M,
N and Y shares will vary from results seen above due to
differences in the expenses charged to these share classes.
PORTFOLIO MANAGER
CHRISTOPHER HANLON, CFA
Senior Vice President
RUSSELL REGENAUER
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
In this environment, The Hartford Total U.S. Government Securities Fund (Class
A) gained 3.77%, before sales charges, for the year ended October 31, 2006,
trailing its benchmark, the Lehman Brothers U.S. Government Index, which
returned 4.58%. However, the Fund outperformed the 3.76% return of the Lipper
General US Government Funds peer group, a group of funds with investment
strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's fiscal year, which ended October 31, 2006, began in a period of
rising interest rates. Historically high energy and commodity prices, a boom in
the housing market, and a strengthening economy led to concerns about rising
inflation. To keep inflation in check, the Federal Reserve (the Fed) continued
its cycle of monetary tightening (i.e. raising interest rates) that began in the
summer of 2004. By June of 2006, the Fed had raised its Federal Funds Target
Rate (Fed Funds Rate) 17 consecutive times, leaving the Fed Funds Rate at 5.25%.
In response to the Fed's tightening, short- and intermediate-term bond yields
rose through the first half of 2006. Thus, as interest rates rose, the principal
value of these bonds declined in response. In contrast, long-term bond yields
did not rise as substantially due to overseas demand and expectations that the
Fed could keep inflation low over the long run. The result was a yield curve
that remained flat or even inverted (i.e. bonds with longer term maturities
having a lower interest rate than bonds with shorter maturities) through most of
the fiscal year. However, by August of 2006, the Fed became
99
- --------------------------------------------------------------------------------
concerned that economic growth was slowing, in part due to the retreating
housing market. As such, the Fed found itself in a conundrum as to whether it
should continue raising interest rates to restrain inflation, or to pause in the
tightening cycle to assess prospects for further economic growth. Since changes
in the rate of inflation often lag changes in economic conditions, the Fed left
rates unchanged at its two most recent meetings while it waited for more data
before taking action. Sensing that the Fed would continue easing monetary
policy, the bond markets rallied in the last months of the fiscal year.
While stocks, and in particular foreign and small cap stocks, performed strongly
for the year, fixed income securities provided more modest gains. Fortunately,
the bond rally over the last few months offset the negative impact of rising
interest rates earlier in the year, allowing the major bond sectors to finish
with positive returns for the period. During much of the year, fixed income
investors were unable to achieve higher levels of yield by going out longer on
the yield curve. Thus, many investors sought higher yields in the spread
sectors, (i.e. sectors that offer a risk premium over U.S. Treasuries of similar
maturities). Accordingly, the Mortgage-Backed Securities (MBS), Commercial
Mortgage-Backed Securities (CMBS), Asset-Backed Securities (ABS) and Agencies
investment grade spread sectors outperformed U.S. Treasuries.
One of the largest impacts upon the Fund's performance stemmed from its
sensitivity to changes in interest rates. Generally, fixed rate bonds decline in
value as interest rates rise, because the lower yielding bonds become less
attractive when compared to bonds that pay higher rates. Purchasers would rather
purchase the new higher yielding bonds, so sellers of the existing lower
yielding bonds must discount them to compensate for their lower interest rates.
Although the rising rates detracted from the Fund's return on an absolute basis,
the Fund was appropriately positioned with duration lower than the benchmark
through most of the twelve month period. However, due to the challenges and
complexities of calculating attribution of fixed income portfolios, our
mathematical model shows duration to be the key detractor from performance for
the period. However, the Fund's sector allocations offset the negative impact of
the duration and curve effects by a very large margin. In particular, the Fund's
exposure to the MBS sector was the greatest contributor to performance. Since
the Fund allocated away from U.S. Treasuries to gain access to higher yields in
the spread sectors, the resulting underweight to Treasuries was also a positive
factor. The Fund's small defensive exposure to TIPS and hedging actions were
modest detractors from relative performance. While the portfolio outperformed
the Index on a gross (before expenses) basis, it did not outperform by a great
enough margin to offset the costs associated with operating the Fund.
WHAT IS THE OUTLOOK?
The recent rally in fixed-rate bonds has resulted in bond prices that reflect an
environment of economic weakness that is not consistent with our view of the
economy. Declines in interest rates and gasoline prices, coupled with a decent
employment picture and gains in the stock market, should be supportive of
continued spending. While housing remains a wild card for the U.S. economy, our
view is that the Federal Reserve is still concerned with inflation and that
policy decisions will favor price stability as long as economic growth does not
decline dramatically. We continued to position the portfolio with a slight bias
towards higher interest rates. As such, the portfolio has slightly less
sensitivity to the negative impact of rising rates than its benchmark. With the
Federal Reserve's rate hike campaign on hold and slower, yet positive growth
ahead, the environment for spread sectors (those that have premiums over like
U.S. Treasuries) is favorable. In the coming months we will be closely watching
the economy to determine the impact of a slower housing market on the average
U.S. consumer and what implications for the economy result.
DISTRIBUTION BY CREDIT QUALITY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
RATING LONG-TERM HOLDINGS
- -------------------------------------------------------------------
AAA 100.0%
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
DISTRIBUTION BY CATEGORY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
CATEGORY NAME NET ASSETS
- -------------------------------------------------------------------
Asset and Commercial Mortgage Backed Securities 5.1%
- -------------------------------------------------------------------
Federal Home Loan Mortgage Corporation 30.0
- -------------------------------------------------------------------
Federal National Mortgage Association 40.6
- -------------------------------------------------------------------
Government National Mortgage Association 2.6
- -------------------------------------------------------------------
Other Direct Federal Obligations 3.9
- -------------------------------------------------------------------
Small Business Administration Participation
Certificate 9.7
- -------------------------------------------------------------------
U.S. Treasury Securities 6.5
- -------------------------------------------------------------------
Short-Term Investments 5.1
- -------------------------------------------------------------------
Other Assets & Liabilities -3.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
100
The Hartford Value Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS LONG-TERM TOTAL RETURN.
PERFORMANCE OVERVIEW(2) 4/30/01 - 10/31/06
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
8552 8903
10/01 8524 8826
9062 9339
9319 9559
9157 9486
9119 9501
9319 9950
8891 9609
8920 9657
8388 9103
7694 8256
7552 8319
6716 7394
10/02 7210 7942
7609 8442
7160 8076
6912 7881
6806 7670
6854 7683
7419 8359
7907 8899
7974 9010
8041 9144
8204 9286
8079 9196
10/03 8539 9759
8673 9891
9155 10501
9222 10685
9338 10914
9242 10819
9087 10554
9222 10662
9396 10914
9049 10760
9107 10913
9213 11082
10/04 9367 11267
9724 11836
10057 12233
9883 12016
10280 12414
10057 12243
9951 12024
10125 12314
10202 12448
10561 12809
10541 12753
10706 12932
10/05 10444 12603
10774 13018
10813 13096
11222 13604
11359 13687
11485 13873
11768 14225
11524 13866
11612 13954
11895 14294
12129 14533
12343 14823
10/06 12586 15308
</Table>
<Table>
--- VALUE FUND --- RUSSELL 1000 VALUE INDEX
$9,450 starting value $10,000 starting value
$12,586 ending value $15,308 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.
You cannot invest directly in an 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 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 10/31/06)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -------------------------------------------------------
Value A# 4/30/2001 20.52% 8.10% 5.34%
- -------------------------------------------------------
Value A## 4/30/2001 13.89% 6.89% 4.27%
- -------------------------------------------------------
Value B# 4/30/2001 19.68% 7.32% 4.58%
- -------------------------------------------------------
Value B## 4/30/2001 14.68% 7.01% 4.43%
- -------------------------------------------------------
Value C# 4/30/2001 19.68% 7.32% 4.58%
- -------------------------------------------------------
Value C## 4/30/2001 18.68% 7.32% 4.58%
- -------------------------------------------------------
Value Y# 4/30/2001 21.07% 8.46% 5.70%
- -------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The initial investment in Class A shares reflects the
maximum sales charge and Classes B and C reflect CDSC.
(2) Growth of a $10,000 investment in Classes B, C and Y shares
will vary from 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
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Value Fund returned 20.52%, before sales
charges, for the twelve-month period ended October 31, 2006, underperforming its
benchmark, the Russell 1000 Value Index, which returned 21.46% for the same
period. The Fund outperformed the 17.73% return of the average fund in the
Lipper Large Cap Value Fund peer group, a group of funds with investment
strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Improved investor sentiment regarding the likelihood of a global economic
slowdown and moderating inflation concerns helped global equity returns during
the period. Value outperformed Growth and the broader market, as the Russell
1000 Value index return of 21.46% beat the Russell 1000 Growth return of 10.84%
and the S&P 500 index return of 16.33%. All ten sectors of the Russell 1000
Value Index posted strong double digit returns. Telecommunication Services and
Materials were the top performers while Utilities and Information Technology
were relative laggards.
Unfavorable stock selection within Health Care, Materials, and Utilities led to
some disappointments during the period. At the margin, the Fund's overweight
positions in Utilities and Consumer Staples and its underweight positions in
Consumer Discretionary and Energy also detracted from relative performance. The
three largest benchmark relative detractors owned in the fund were Dow Chemical
(Materials), ConocoPhillips (Energy), and WellPoint (Healthcare). Additionally,
not owning Merck (Health Care) within the portfolio also significantly detracted
from performance.
Dow Chemical posted good profit results during the period; however, they were
unable to offset the headwinds of high energy and raw materials costs.
ConocoPhillips shares struggled due to the recent decline in North American
natural gas prices and lower refining margins. Merck's shares benefited from
higher than expected sales of Singulair, its treatment for asthma and seasonal
allergies, and FDA product approvals for several drugs within its pipeline. We
owned Dow Chemical and WellPoint at the end of the period.
Partially offsetting these disappointments was a combination of positive stock
selection and sector allocation within Telecommunications Services, Industrials
and Financials. The top three benchmark relative contributors were BellSouth
(Telecommunication Services), Caterpillar (Industrials), and Cameco (Energy).
BellSouth's shares benefited from the company's much anticipated merger with
AT&T. Caterpillar's shares benefited from growth in their underlying businesses.
The stock pulled back sharply in mid-October due to the market's expectation for
stronger than delivered earnings results. Cameco's shares continue to benefit
from the long-term pricing power for uranium. We took profits in
101
- --------------------------------------------------------------------------------
Caterpillar and eliminated the stock but held BellSouth and ConocoPhillips at
the end of the period.
WHAT IS THE OUTLOOK?
Global economic growth appears to have rolled past its peak, although it is
still running at a solid clip. While other investors are expressing skepticism
about the sustainability of the economic expansion, we expect global growth to
remain above 3%, with the US slowing to the 2-3% range. We have no expectation
for a recession, and are impressed so far by the consumer's ability to absorb
the twin hits of higher short-term interest rates and energy costs.
In anticipation of a slowing, yet healthy global economy, we have reduced
further the cyclicality of our portfolios, which has been ongoing for several
consecutive quarters. We methodically decreased our exposure to the consumer,
energy, and mortgage-related financial institutions and increased our exposure
to less cyclical areas, including telecommunications, consumer non-durables, and
non-credit sensitive financial institutions.
At the end of the period, relative to the Russell 1000 Value Index, the Fund was
overweight Industrials, Consumer Staples, Information Technology,
Telecommunication Services, and Health Care and underweight Financials, Consumer
Discretionary, Energy, Utilities and Materials.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 5.1%
- -------------------------------------------------------------------
Capital Goods 6.9
- -------------------------------------------------------------------
Consumer Cyclical 6.6
- -------------------------------------------------------------------
Consumer Staples 4.3
- -------------------------------------------------------------------
Energy 8.2
- -------------------------------------------------------------------
Finance 29.6
- -------------------------------------------------------------------
Health Care 9.1
- -------------------------------------------------------------------
Services 3.0
- -------------------------------------------------------------------
Technology 17.3
- -------------------------------------------------------------------
Transportation 3.5
- -------------------------------------------------------------------
Utilities 4.4
- -------------------------------------------------------------------
Short-Term Investments 2.5
- -------------------------------------------------------------------
Other Assets & Liabilities -0.5
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
102
The Hartford Value Opportunities Fund
(subadvised by Wellington Management Company, LLP)
INVESTMENT OBJECTIVE -- SEEKS SHORT- AND LONG-TERM
CAPITAL APPRECIATION.
PERFORMANCE OVERVIEW(1,3) 10/31/96 - 10/31/06
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
VALUE OPPORTUNITIES FUND RUSSELL 3000 VALUE INDEX RUSSELL 1000 VALUE INDEX
------------------------ ------------------------ ------------------------
10/31/96 9450 10000 10000
10001 10706 10725
10008 10618 10588
10350 11096 11102
10478 11254 11265
10093 10859 10860
10461 11285 11316
11068 11942 11948
11341 12464 12461
11965 13361 13398
11546 12951 12921
12093 13741 13702
10/97 11751 13358 13319
12264 13904 13908
12491 14317 14314
12567 14108 14111
13298 15049 15061
13830 15939 15982
13868 16043 16089
13554 15774 15851
13716 15948 16054
13222 15581 15770
11256 13252 13424
11693 14011 14194
10/98 12415 15041 15293
13127 15718 16006
13537 16249 16551
13727 16340 16683
13359 16042 16447
13706 16340 16788
14652 17864 18356
14316 17719 18154
14884 18243 18681
14421 17716 18134
13969 17060 17461
13390 16482 16851
10/99 13979 17338 17821
13990 17218 17682
14734 17330 17767
14145 16772 17187
13343 15679 15910
15378 17453 17852
15492 17271 17644
15695 17422 17830
14723 16714 17015
15028 16946 17228
16170 17877 18187
15752 18023 18353
10/00 16973 18433 18804
16378 17768 18106
17510 18723 19013
18343 18825 19086
17796 18335 18556
16876 17711 17900
18144 18576 18778
18156 18998 19200
17995 18659 18774
17485 18593 18734
16540 17895 17983
14687 16585 16718
10/01 14911 16481 16574
16012 17455 17537
16811 17912 17950
16318 17801 17812
16199 17836 17841
16731 18716 18685
15640 18173 18044
15267 18208 18134
13856 17213 17093
12658 15542 15504
12858 15647 15621
11314 13950 13884
10/02 12325 14924 14913
13310 15882 15852
12512 15192 15164
12206 14821 14797
11833 14418 14402
11820 14451 14426
13204 15730 15696
14229 16786 16709
14388 17002 16918
14575 17298 17170
15200 17596 17438
15200 17422 17268
10/03 16172 18515 18324
16704 18802 18573
17623 19923 19718
18195 20299 20064
18541 20731 20495
18235 20586 20315
17783 20038 19819
17942 20245 20021
18448 20767 20494
17809 20418 20205
17862 20701 20492
18208 21062 20810
10/04 18714 21411 21156
19739 22562 22226
20777 23299 22970
20165 22843 22562
20857 23574 23310
20538 23237 22990
19806 22755 22578
20644 23371 23122
21070 23693 23375
21682 24436 24051
21616 24289 23947
21376 24596 24283
10/05 20711 23972 23666
21884 24776 24444
22337 24895 24590
23202 25957 25545
23257 26101 25701
23505 26536 26049
24177 27154 26711
23408 26429 26037
23229 26612 26203
23023 27164 26840
23517 27650 27289
24053 28176 27833
10/06 25083 29145 28744
</Table>
<Table>
--- VALUE OPPORTUNITIES --- RUSSELL 3000 VALUE -- RUSSELL 1000 VALUE INDEX
FUND INDEX $10,000 starting value
$9,450 starting value $10,000 starting value $28,744 ending value
$25,083 ending value $29,145 ending value
</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.
RUSSELL 1000 VALUE INDEX is a market cap weighted measure of the performance of
the 1,000 largest value-oriented companies in the Russell 3000 Index, which
represents approximately 92% of the total market capitalization of the Russell
3000 Index. Value is defined as companies with lower price-to-book ratios and
lower forecasted growth values.
You cannot invest directly in an 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 the investment adviser, without which performance
would have been lower. For information on current expense
waivers/reimbursements, please see the prospectus.
PORTFOLIO MANAGERS
JAMES H. AVERILL
Senior Vice President, Partner
DAVID R. FASSNACHT, CFA
Senior Vice President, Partner
JAMES N. MORDY
Senior Vice President, Partner
DAVID W. PALMER, CFA
Vice President
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/06)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- --------------------------------------------------------------------
Value Opp A# 1/2/1996 21.12% 10.96% 10.25% 10.69%
- --------------------------------------------------------------------
Value Opp A## 1/2/1996 14.46% 9.71% 9.63% 10.11%
- --------------------------------------------------------------------
Value Opp B# 1/2/1996 20.21% 10.17% NA* NA*
- --------------------------------------------------------------------
Value Opp B## 1/2/1996 15.21% 9.90% NA* NA*
- --------------------------------------------------------------------
Value Opp C# 1/2/1996 20.20% 10.17% 9.45% 9.88%
- --------------------------------------------------------------------
Value Opp C## 1/2/1996 19.20% 10.17% 9.45% 9.88%
- --------------------------------------------------------------------
Value Opp H# 1/2/1996 20.39% 10.21% NA* NA*
- --------------------------------------------------------------------
Value Opp H## 1/2/1996 16.39% 9.94% NA* NA*
- --------------------------------------------------------------------
Value Opp I# 2/19/2002 21.18% NA NA 10.63%
- --------------------------------------------------------------------
Value Opp L# 1/2/1996 21.31% 11.02% 10.28% 10.72%
- --------------------------------------------------------------------
Value Opp L## 1/2/1996 15.55% 9.95% 9.75% 10.22%
- --------------------------------------------------------------------
Value Opp M# 1/2/1996 20.33% 10.21% NA* NA*
- --------------------------------------------------------------------
Value Opp M## 1/2/1996 16.33% 9.93% NA* NA*
- --------------------------------------------------------------------
Value Opp N# 1/2/1996 20.39% 10.23% 9.48% 9.91%
- --------------------------------------------------------------------
Value Opp N## 1/2/1996 19.39% 10.23% 9.48% 9.91%
- --------------------------------------------------------------------
Value Opp Y# 2/19/2002 21.55% NA NA 10.53%
- --------------------------------------------------------------------
</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 Classes A, B and C were offered beginning on February
19, 2002. Performance prior to that date is that of the
fund's Classes L, M and N shares, respectively, which have
lower operating expenses. Performance prior to February 19,
2002 would have been lower if Classes A, B and C shares
expenses were applied during that period. Class I shares
commenced operations on 8/31/06. Performance prior to
8/31/06 reflects Class A performance.
(2) The initial investment in Classes A and L shares reflects
the maximum sales charge and Classes B, C, H, M and N
reflect CDSC.
(3) Growth of a $10,000 investment in Classes B, C, H, I, L, M,
N and Y shares will vary from results seen above due to
differences in the expenses charged to these share classes.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Class A shares of The Hartford Value Opportunities Fund returned 21.12%,
before sales charges, for the twelve-month period ended October 31, 2006,
underperforming its benchmark, the Russell 3000 Value Index, which returned
21.58% for the same period. The Fund outperformed the 17.77% return of the
average fund in the Lipper Multi Cap Value Fund peer group, a group of funds
with investment strategies similar to those of the Fund.
WHY DID THE FUND PERFORM THIS WAY?
Improved investor sentiment regarding the global economy and moderating
inflation concerns helped global equity returns during the last year. In this
environment, the Russell 3000 Index returned 16.37% during the period, with
value stocks, as measured by the Russell 3000 Value Index, outperforming growth
stocks, as measured by the Russell 3000 Growth Index, by a margin of 10.62%.
Large caps outperformed mid cap stocks, as indicated by the 16.33% return of the
S&P 500 versus the 13.43% return of the S&P Midcap 400 Index, but underperformed
small cap stocks, as measured by the 19.98% return of the Russell 2000 Index.
All ten broad sectors of the Russell 3000 Value Index posted positive returns,
with Telecommunication Services, Materials and Industrials leading the way.
Reflecting an increasing investor appetite for risk, "safe" stocks such as
Utilities posted relatively weaker, but still double-digit absolute returns.
Stock selection continued to be the primary driver of the Fund's relative
performance, and was particularly strong in the Information Technology, Energy,
and Industrials sectors. Our top
103
- --------------------------------------------------------------------------------
contributors to benchmark relative performance were US Airways (Industrials),
whose shares continued to benefit from the company's improving cost structure,
Cisco Systems (Information Technology), whose shares benefited from the global
transformation of networks into unified IP-based broadband platforms capable of
handling voice, data and video content, and Comcast (Consumer Discretionary),
whose shares benefited from strong acceleration in growth across all divisions,
specifically due to increasing penetration within household digital cable
subscriptions. We held onto our positions in these stocks during the period.
The Fund suffered a few stock disappointments during the period which led to its
slight underperformance relative to the benchmark. In particular, stock
selection was weak within Health Care, Telecommunication Services and Materials.
At the margin, the Fund's underweight position in Telecommunication Services,
the top performing sector within the Russell 3000 Value index, also detracted
from performance. The two largest detractors to relative performance were YRC
Worldwide, a trucking company suffering merger-related indigestion, and Boston
Scientific, a medical device maker whose shares tumbled on news of weakness in
medical device sales, and headline issues with its competitors, and again,
merger-related indigestion. Additionally, not owning BellSouth, a
Telecommunication Services company whose shares benefited from the strongly
anticipated merger with AT&T, also significantly detracted from the Fund's
benchmark-relative performance. We initiated a position in Boston Scientific
during the period and reduced our position in YRC Worldwide.
WHAT IS THE OUTLOOK?
We expect global growth to remain above 3%, with the US slowing to the 2-3%
range. We have no expectation for a recession, and are impressed so far by the
consumer's ability to absorb the twin hits of higher short-term interest rates
and the housing-price slowdown.
As a result of this outlook and our bottom-up stock picking, our most
significant overweight positions relative to the Russell 3000 Value index are:
Information Technology, Consumer Discretionary, Industrials, Health Care and
Materials. Despite the likelihood of a softening economy next year, we think our
stocks are undervalued and have solid catalysts for appreciation. By far our
largest benchmark relative underweight remains Financials due to expectations
for continued earnings pressure from the flat yield curve, probable worsening of
credit conditions, and valuations that are not compensatory. Consumer Staples,
Utilities and Energy are also notably underweight, as investor desires for
"safety" have led to overvaluation from an earnings growth perspective.
DIVERSIFICATION BY INDUSTRY
as of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- -------------------------------------------------------------------
Basic Materials 9.3%
- -------------------------------------------------------------------
Capital Goods 5.3
- -------------------------------------------------------------------
Consumer Cyclical 7.2
- -------------------------------------------------------------------
Consumer Staples 1.3
- -------------------------------------------------------------------
Energy 9.3
- -------------------------------------------------------------------
Finance 28.3
- -------------------------------------------------------------------
Health Care 7.7
- -------------------------------------------------------------------
Services 7.4
- -------------------------------------------------------------------
Technology 18.3
- -------------------------------------------------------------------
Transportation 4.4
- -------------------------------------------------------------------
Short-Term Investments 3.7
- -------------------------------------------------------------------
Other Assets & Liabilities -2.2
- -------------------------------------------------------------------
TOTAL 100.0%
- -------------------------------------------------------------------
</Table>
104
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- 67.9%
BASIC MATERIALS -- 4.0%
563 Alcoa, Inc. ...................................... $ 16,265
166 Cameco Corp. ..................................... 5,839
467 Companhia Vale do Rio Doce ADR (G)................ 11,873
290 Dow Chemical Co. ................................. 11,829
182 E.I. DuPont de Nemours & Co. ..................... 8,326
297 Mittal Steel Co. (G).............................. 12,705
----------
66,837
----------
CAPITAL GOODS -- 2.8%
265 American Standard Cos., Inc. ..................... 11,724
194 Boeing Co. ....................................... 15,453
161 Deere & Co. ...................................... 13,723
132 Goodrich Corp. ................................... 5,802
----------
46,702
----------
CONSUMER CYCLICAL -- 5.5%
278 Altria Group, Inc. ............................... 22,577
461 D.R. Horton, Inc. ................................ 10,790
299 eBay, Inc. (D).................................... 9,604
113 Federated Department Stores, Inc. ................ 4,949
486 Gap, Inc. ........................................ 10,209
297 Home Depot, Inc. ................................. 11,068
115 Toyota Motor Corp. (A)............................ 6,767
341 Wal-Mart Stores, Inc. ............................ 16,785
----------
92,749
----------
CONSUMER STAPLES -- 3.7%
127 Clorox Co. ....................................... 8,212
1 Japan Tobacco, Inc. (A)........................... 4,444
278 PepsiCo, Inc. .................................... 17,643
325 Procter & Gamble Co. ............................. 20,627
493 Unilever N.V. NY Shares........................... 11,933
----------
62,859
----------
ENERGY -- 3.4%
265 EnCana Corp. ..................................... 12,571
231 Exxon Mobil Corp. ................................ 16,505
497 Halliburton Co. .................................. 16,065
275 Williams Cos., Inc. .............................. 6,726
123 XTO Energy, Inc. ................................. 5,744
----------
57,611
----------
FINANCE -- 14.4%
312 Aegon N.V. (A).................................... 5,742
395 American International Group, Inc. ............... 26,558
573 Bank of America Corp. ............................ 30,846
145 Capital One Financial Corp. ...................... 11,479
670 Citigroup, Inc. .................................. 33,603
359 Countrywide Financial Corp. ...................... 13,700
485 E*Trade Financial Corp. (D)....................... 11,295
136 Federal Home Loan Mortgage Corp. ................. 9,362
36 Goldman Sachs Group, Inc. ........................ 6,908
118 ING Groep N.V.-Sponsored ADR...................... 5,235
-- Mitsubishi UFJ Financial Group, Inc. (A).......... 5,949
105 Muenchener Rueckversicherungs-Gesellschaft AG
(A)............................................. 17,156
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
FINANCE -- (CONTINUED)
146 State Street Corp. ............................... $ 9,390
392 UBS AG............................................ 23,466
511 UnitedHealth Group, Inc. ......................... 24,936
312 Western Union Co. ................................ 6,873
----------
242,498
----------
HEALTH CARE -- 8.2%
352 Abbott Laboratories............................... 16,714
204 Amgen, Inc. (D)................................... 15,470
1,137 Boston Scientific Corp. (D)....................... 18,083
759 Bristol-Myers Squibb Co. ......................... 18,788
105 Cardinal Health, Inc. ............................ 6,866
785 Elan Corp. plc ADR (D)(G)......................... 11,370
315 Eli Lilly & Co. .................................. 17,666
361 Sanofi-Aventis S.A. ADR........................... 15,411
505 Schering-Plough Corp. ............................ 11,187
370 Shionogi & Co., Ltd. (A).......................... 7,413
----------
138,968
----------
SERVICES -- 6.7%
340 Accenture Ltd. Class A............................ 11,176
172 Autodesk, Inc. (D)................................ 6,336
100 Fluor Corp. ...................................... 7,835
162 Monster Worldwide, Inc. (D)....................... 6,559
1,278 Sun Microsystems, Inc. (D)........................ 6,938
592 Time Warner, Inc. ................................ 11,838
403 United Parcel Service, Inc. Class B (G)........... 30,351
345 Viacom, Inc. Class B (D).......................... 13,437
274 Walt Disney Co. .................................. 8,633
940 XM Satellite Radio Holdings, Inc. Class A
(D)(G).......................................... 10,958
----------
114,061
----------
TECHNOLOGY -- 18.9%
304 Adobe Systems, Inc. (D)........................... 11,643
127 American Tower Corp. Class A (D).................. 4,557
846 AT&T, Inc. ....................................... 28,959
541 Broadcom Corp. Class A (D)........................ 16,361
1,081 Cisco Systems, Inc. (D)........................... 26,082
1,896 EMC Corp. (D)..................................... 23,230
325 First Data Corp. ................................. 7,874
986 Flextronics International Ltd. (D)................ 11,434
1,509 General Electric Co. ............................. 52,995
39 Google, Inc. (D).................................. 18,674
496 Marvell Technology Group Ltd. (D)................. 9,065
454 Maxim Integrated Products, Inc. .................. 13,616
527 Medtronic, Inc. .................................. 25,669
881 Microsoft Corp. .................................. 25,294
516 Oracle Corp. (D).................................. 9,534
2 Samsung Electronics Co., Ltd. (A)................. 1,139
229 Sharp Corp. (A)................................... 4,076
873 Sprint Nextel Corp. (G)........................... 16,316
484 Yahoo!, Inc. (D).................................. 12,741
----------
319,259
----------
</Table>
The accompanying notes are an integral part of these financial statements.
105
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- (CONTINUED)
UTILITIES -- 0.3%
47 E.On AG (A)....................................... $ 5,649
----------
Total common stock
(cost $1,079,480)............................... $1,147,193
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
MUNICIPAL BONDS -- 0.2%
GENERAL OBLIGATIONS -- 0.2%
$ 2,000 Oregon School Boards Association, Taxable Pension,
4.76%, 06/30/2028............................... $ 1,843
2,050 State of Illinois, Taxable Pension,
5.10%, 06/01/2033............................... 1,980
----------
Total municipal bonds
(cost $4,028)................................... $ 3,823
----------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 5.2%
FINANCE -- 5.2%
$ 1,380 Banc of America Commercial Mortgage, Inc.,
5.35%, 09/10/2047 (L)........................... $ 1,375
905 Bear Stearns Alt-A Trust,
5.99%, 03/25/2036 (L)........................... 914
1,755 Bear Stearns Commercial Mortgage Securities, Inc.,
5.30%, 10/12/2042 (L)........................... 1,748
730 Bear Stearns Commercial Mortgage Securities, Inc.,
5.47%, 04/12/2038............................... 746
655 Centex Home Equity,
4.72%, 10/25/2031............................... 648
2,750 Citigroup/Deutsche Bank Commercial Mortgage Trust,
5.40%, 07/15/2044 (L)........................... 2,752
2,750 Commercial Mortgage Pass Through Certificates,
5.12%, 06/10/2044............................... 2,719
10,000 Connecticut RRB Special Purpose Trust CL&P,
6.21%, 12/30/2011............................... 10,350
1,505 Credit Suisse Mortgage Capital Certificates,
5.47%, 09/15/2039............................... 1,521
2,730 Credit Suisse Mortgage Capital Certificates,
5.56%, 02/15/2039............................... 2,783
3,000 Goldman Sachs Mortgage Securities Corp. II,
4.75%, 07/10/2039............................... 2,898
2,750 Greenwich Capital Commercial Funding Corp.,
5.22%, 04/10/2037............................... 2,739
1,850 Household Automotive Trust,
5.28%, 09/19/2011............................... 1,850
839 Indymac Index Mortgage Loan Trust,
5.88%, 06/25/2036 (L)........................... 846
1,895 JP Morgan Chase Commercial Mortgage Security
Corp.,
5.34%, 12/15/2044 (L)........................... 1,894
3,050 JP Morgan Chase Commercial Mortgage Security
Corp.,
5.48%, 12/12/2044............................... 3,089
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
FINANCE -- (CONTINUED)
$ 620 Marriott Vacation Club Owner Trust,
5.37%, 12/25/2030 (I)(Q)........................ $ 620
10,000 MBNA Credit Card Master Note Trust,
4.95%, 06/15/2009............................... 9,995
2,750 Merrill Lynch Mortgage Trust,
5.05%, 07/12/2038............................... 2,705
2,875 Morgan Stanley Capital I,
5.23%, 09/15/2042............................... 2,861
10,000 Peco Energy Transition Trust,
6.13%, 03/01/2009............................... 10,106
10,000 PSE&G Transition Funding LLC,
6.61%, 06/15/2015............................... 10,745
2,275 Residential Accredit Loans, Inc.,
5.26%, 02/25/2035............................... 2,261
2,575 Susquehanna Auto Lease Trust,
5.21%, 03/16/2009 (I)........................... 2,574
3,000 Wachovia Bank Commercial Mortgage Trust,
5.12%, 07/15/2042 (G)........................... 2,960
2,033 Wells Fargo Mortgage Backed Securities Trust,
4.55%, 03/25/2035 (L)........................... 2,004
2,870 Wells Fargo Mortgage Backed Securities Trust,
5.54%, 04/25/2036 (L)........................... 2,881
----------
Total asset & commercial
mortgage backed securities
(cost $88,658).................................. $ 88,584
----------
CORPORATE BONDS: INVESTMENT GRADE -- 11.3%
BASIC MATERIALS -- 0.2%
$ 4,000 Alcan, Inc.,
6.45%, 03/15/2011............................... $ 4,161
----------
CAPITAL GOODS -- 0.1%
2,000 Rockwell Automation, Inc.,
6.70%, 01/15/2028............................... 2,226
----------
CONSUMER CYCLICAL -- 0.6%
1,900 DaimlerChrysler N.A. Holdings Corp.,
5.88%, 03/15/2011............................... 1,914
1,975 DaimlerChrysler N.A. Holdings Corp.,
6.50%, 11/15/2013............................... 2,041
3,000 Target Corp.,
5.88%, 11/01/2008............................... 3,046
3,000 Wal-Mart Stores, Inc.,
6.88%, 08/10/2009............................... 3,139
----------
10,140
----------
CONSUMER STAPLES -- 1.6%
2,000 Archer Daniels Midland Co.,
8.13%, 06/01/2012............................... 2,274
4,000 Coca-Cola Enterprises, Inc.,
5.75%, 11/01/2008............................... 4,048
2,000 Colgate-Palmolive Co.,
5.58%, 11/06/2008............................... 2,023
2,906 ConAgra Foods, Inc.,
6.70%, 08/01/2027............................... 3,120
2,025 Diageo Capital plc,
4.38%, 05/03/2010............................... 1,971
500 Pepsi Bottling Group, Inc.,
7.00%, 03/01/2029............................... 580
3,000 PepsiAmericas, Inc.,
6.38%, 05/01/2009............................... 3,064
</Table>
The accompanying notes are an integral part of these financial statements.
106
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
CONSUMER STAPLES -- (CONTINUED)
$ 6,892 Procter & Gamble Co.,
9.36%, 01/01/2021............................... $ 8,656
800 Weyerhaeuser Co.,
7.38%, 03/15/2032............................... 841
----------
26,577
----------
ENERGY -- 0.2%
4,000 National Fuel Gas Co.,
6.00%, 03/01/2009............................... 4,057
----------
FINANCE -- 5.6%
3,675 Ace INA Holdings, Inc.,
5.88%, 06/15/2014............................... 3,756
2,100 AMBAC Financial Group, Inc.,
5.95%, 12/05/2035............................... 2,123
250 American General Finance Corp.,
6.63%, 02/15/2029............................... 274
4,000 AXA Financial, Inc.,
7.00%, 04/01/2028............................... 4,531
1,475 Bank of America Corp.,
5.88%, 02/15/2009............................... 1,500
3,000 Bank of America Corp.,
7.40%, 01/15/2011............................... 3,248
1,010 BB&T Corp.,
4.90%, 06/30/2017............................... 960
3,700 Berkshire Hathaway Finance Corp.,
4.85%, 01/15/2015............................... 3,594
1,875 Brandywine Operating Partnership,
6.00%, 04/01/2016............................... 1,904
750 Capital One Bank,
6.50%, 06/13/2013............................... 790
870 Capital One Financial Corp.,
5.70%, 09/15/2011............................... 882
750 Citigroup, Inc.,
3.63%, 02/09/2009............................... 727
1,600 Citigroup, Inc.,
6.00%, 10/31/2033............................... 1,630
500 Citigroup, Inc.,
6.50%, 01/18/2011............................... 526
1,980 Credit Suisse First Boston USA, Inc.,
4.88%, 01/15/2015............................... 1,914
1,500 Developers Diversified Realty Corp.,
5.38%, 10/15/2012............................... 1,492
3,350 EOP Operating L.P.,
4.75%, 03/15/2014............................... 3,189
2,725 ERAC USA Finance Co.,
7.35%, 06/15/2008 (I)........................... 2,807
885 Everest Reinsurance Holdings, Inc.,
5.40%, 10/15/2014............................... 871
2,600 HSBC Bank USA,
3.88%, 09/15/2009............................... 2,520
2,200 International Lease Finance Corp.,
5.00%, 09/15/2012............................... 2,166
2,000 Jackson National Life Insurance Co.,
8.15%, 03/15/2027 (I)........................... 2,461
1,655 John Deere Capital Corp.,
4.88%, 10/15/2010............................... 1,636
2,795 JP Morgan Chase & Co.,
5.13%, 09/15/2014............................... 2,745
250 KeyCorp Capital II,
6.88%, 03/17/2029............................... 266
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
FINANCE -- (CONTINUED)
$ 1,550 Kimco Realty Corp.,
5.78%, 03/15/2016............................... $ 1,569
2,335 Liberty Mutual Group, Inc.,
5.75%, 03/15/2014 (I)........................... 2,357
1,000 MBIA, Inc.,
7.00%, 12/15/2025............................... 1,093
3,650 Metlife, Inc.,
6.38%, 06/15/2034............................... 3,927
250 National City Corp.,
6.88%, 05/15/2019............................... 277
3,100 New England Mutual Life Insurance Co.,
7.88%, 02/15/2024 (I)........................... 3,792
2,000 Prudential Funding LLC,
6.75%, 09/15/2023 (I)........................... 2,182
250 Republic New York Capital I,
7.75%, 11/15/2026............................... 259
500 Santander Central Hispano Issuances Ltd.,
7.63%, 11/03/2009............................... 533
3,100 Simon Property Group L.P.,
6.10%, 05/01/2016............................... 3,230
1,500 Sovereign Capital Trust IV,
7.91%, 06/13/2036............................... 1,686
200 State Street Corp.,
7.65%, 06/15/2010............................... 215
3,000 Torchmark Corp.,
8.25%, 08/15/2009............................... 3,223
1,000 Toyota Motor Credit Corp.,
5.50%, 12/15/2008............................... 1,006
3,100 U.S. Bank N.A.,
4.95%, 10/30/2014............................... 3,028
2,750 UnitedHealth Group, Inc.,
5.00%, 08/15/2014............................... 2,680
1,005 Wachovia Capital Trust III,
5.80%, 08/29/2049............................... 1,014
3,000 Wachovia Corp.,
5.63%, 12/15/2008............................... 3,025
1,740 WellPoint, Inc.,
5.00%, 01/15/2011............................... 1,722
4,000 Wells Fargo Bank NA,
6.45%, 02/01/2011............................... 4,197
580 Willis North America, Inc.,
5.63%, 07/15/2015............................... 554
4,165 XL Capital Europe plc,
6.50%, 01/15/2012............................... 4,357
----------
94,438
----------
HEALTH CARE -- 0.6%
3,000 Becton, Dickinson & Co.,
6.70%, 08/01/2028............................... 3,323
1,600 Pharmacia Corp.,
6.60%, 12/01/2028............................... 1,826
4,000 Wyeth,
6.95%, 03/15/2011............................... 4,262
----------
9,411
----------
SERVICES -- 0.8%
3,000 COX Communications, Inc.,
5.45%, 12/15/2014............................... 2,931
4,000 FedEx Corp.,
3.50%, 04/01/2009............................... 3,844
1,570 Harrah's Operating Co., Inc.,
6.50%, 06/01/2016............................... 1,382
</Table>
The accompanying notes are an integral part of these financial statements.
107
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 2,100 News America, Inc.,
6.40%, 12/15/2035............................... $ 2,106
3,040 Viacom, Inc.,
6.88%, 04/30/2036 (I)........................... 3,061
----------
13,324
----------
TECHNOLOGY -- 1.3%
4,000 Comcast Cable Communications, Inc.,
6.88%, 06/15/2009............................... 4,158
500 Comcast Cable Communications, Inc.,
8.50%, 05/01/2027............................... 618
1,800 Deutsche Telekom International Finance B.V.,
8.25%, 06/15/2030............................... 2,236
675 Embarq Corp.,
7.08%, 06/01/2016............................... 691
4,725 General Electric Co.,
5.00%, 02/01/2013............................... 4,683
2,900 Siemens Finance,
5.75%, 10/17/2016 (I)........................... 2,960
3,100 Telecom Italia Capital,
5.25%, 10/01/2015............................... 2,899
2,600 Verizon Communications, Inc.,
5.55%, 02/15/2016............................... 2,589
250 Verizon Global Funding Corp.,
7.25%, 12/01/2010............................... 268
250 Verizon Global Funding Corp.,
7.75%, 12/01/2030............................... 292
----------
21,394
----------
UTILITIES -- 0.3%
500 Alabama Power Co.,
7.13%, 10/01/2007............................... 508
1,500 Midamerican Energy Holdings Co.,
6.13%, 04/01/2036............................... 1,543
1,150 Northern Border Pipeline Co.,
7.75%, 09/01/2009............................... 1,222
695 Taqa Abu Dhabi National,
5.88%, 10/27/2016 (I)........................... 708
250 TransCanada Pipelines Ltd.,
6.49%, 01/21/2009............................... 256
----------
4,237
----------
Total corporate bonds: investment grade
(cost $185,428)................................. $ 189,965
----------
U.S. GOVERNMENT SECURITIES -- 9.9%
OTHER DIRECT FEDERAL OBLIGATIONS -- 1.0%
$ 10,000 Financing Corp.
9.80%, 2018..................................... $ 14,111
3,676 Financing Corp. Zero Coupon Strip,
4.40%, 2013 (M)................................. 2,606
----------
16,717
----------
U.S. TREASURY SECURITIES -- 8.9%
13,050 2.00% 2016 (O)(G)................................. 13,024
13,425 2.375% 2025 (O)(G)................................ 14,659
14,300 2.625% 2009 (G)................................... 13,663
24,725 3.50% 2010 (G).................................... 23,905
28,975 3.875% 2010 (G)................................... 28,298
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
U.S. TREASURY SECURITIES -- (CONTINUED)
$ 19,650 4.375% 2010 (G)................................... $ 19,503
20,125 4.875% 2011 (G)................................... 20,365
8,800 5.375% 2031 (G)................................... 9,554
6,775 6.25% 2023 (G).................................... 7,884
----------
150,855
----------
Total U.S. government securities
(cost $164,655)................................. $ 167,572
----------
U.S. GOVERNMENT AGENCIES -- 3.0%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.9%
$ 2,890 2.50% 2013........................................ $ 2,813
12,286 6.50% 2036 (Q).................................... 12,524
----------
15,337
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 1.2%
125 5.00% 2036........................................ 121
20,000 5.11% 2006 (M).................................... 19,960
465 6.50% 2036........................................ 474
----------
20,555
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.9%
5,401 5.50% 2036........................................ 5,379
3,542 6.00% 2023 -- 2034................................ 3,592
2,542 6.50% 2026 -- 2035................................ 2,621
2,753 7.00% 2031 -- 2033................................ 2,847
541 8.00% 2029 -- 2031................................ 572
44 9.00% 2023........................................ 47
----------
15,058
----------
Total U.S. government agencies
(cost $50,644).................................. $ 50,950
----------
Total long-term investments
(cost $1,572,893)............................... $1,648,087
----------
SHORT-TERM INVESTMENTS -- 15.9%
REPURCHASE AGREEMENTS -- 1.2%
$ 4,009 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 4,009
2,358 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 2,358
94 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 94
1,887 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 1,887
3,962 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 3,962
2,169 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 2,169
5,329 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 5,329
----------
19,808
----------
</Table>
The accompanying notes are an integral part of these financial statements.
108
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
SHORT-TERM INVESTMENTS -- (CONTINUED)
FINANCE -- 2.0%
$ 9,700 FHLB Discount Note,
5.12%, 11/17/2006 (M)........................... $ 9,680
25,000 FHLB Discount Note,
5.12%, 11/21/2006 (M)........................... 24,929
----------
34,609
----------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 12.7%
213,868 BNY Institutional Cash Reserve Fund............... $ 213,868
----------
Total short-term investments
(cost $268,285)................................. $ 268,285
----------
Total investments in securities
(cost $1,841,178) (C)........................... $1,916,372
==========
</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 11.15% of total net assets at October 31, 2006.
(A)The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $58,335, which represents 3.45% of total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $1,851,510 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $102,527
Unrealized depreciation........................ (37,665)
--------
Net unrealized appreciation.................... $ 64,862
========
</Table>
(D)Currently non-income producing.
(G)Security is partially on loan at October 31, 2006.
(I)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 qualified institutional buyers.
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, 2006, was $23,522, which represents 1.39% of total net assets.
(L)Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M)The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(O)U.S. Treasury inflation-protection securities (TIPS) are securities
in which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
(Q)The cost of securities purchased on a when-issued or delayed
delivery basis at October 31, 2006 was $13,106.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Japanese Yen Buy $ 402 $ 397 11/01/2006 $ 5
Japanese Yen Buy 3,112 3,103 11/02/2006 9
Japanese Yen Buy 1,704 1,691 11/06/2006 13
---
$27
===
</Table>
The accompanying notes are an integral part of these financial statements.
109
THE HARTFORD AGGRESSIVE GROWTH ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 100.0%
EQUITY FUNDS -- 100.0%
625 Hartford Capital Appreciation Fund, Class Y....... $ 26,389
2,245 Hartford Disciplined Equity Fund, Class Y......... 30,494
169 Hartford Dividend and Growth Fund, Class Y........ 3,668
56 Hartford Equity Income Fund, Class Y.............. 790
577 Hartford Global Leaders Fund, Class Y............. 11,628
705 Hartford Growth Fund, Class Y (D)................. 13,318
244 Hartford Growth Opportunities Fund, Class Y....... 7,331
552 Hartford International Capital Appreciation Fund,
Class Y......................................... 8,376
252 Hartford International Opportunities Fund, Class
Y............................................... 4,207
903 Hartford International Small Company Fund, Class
Y............................................... 14,775
233 Hartford MidCap Value Fund, Class Y............... 3,488
291 Hartford Select MidCap Growth Fund, Class Y....... 3,307
205 Hartford Select MidCap Value Fund, Class Y........ 2,537
73 Hartford Select SmallCap Growth Fund, Class Y
(D)............................................. 776
123 Hartford Select SmallCap Value Fund, Class Y...... 1,344
674 Hartford Small Company Fund, Class Y (D).......... 15,331
608 Hartford SmallCap Growth Fund, Class Y (D)........ 19,431
1,535 Hartford Value Fund, Class Y...................... 19,814
779 Hartford Value Opportunities Fund, Class Y........ 14,402
--------
Total investments in affiliated
investment companies
(cost $179,346) (C)............................. $201,406
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $179,348 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $22,058
Unrealized depreciation......................... --
-------
Net unrealized appreciation..................... $22,058
=======
</Table>
(D)Currently non-income producing.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
110
THE HARTFORD BALANCED ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 99.8%
EQUITY FUNDS -- 59.8%
1,891 Hartford Capital Appreciation Fund, Class Y....... $ 79,773
3,136 Hartford Disciplined Equity Fund, Class Y......... 42,589
907 Hartford Dividend and Growth Fund, Class Y........ 19,706
158 Hartford Equity Income Fund, Class Y.............. 2,216
1,858 Hartford Global Leaders Fund, Class Y............. 37,421
631 Hartford Growth Fund, Class Y (D)................. 11,914
809 Hartford Growth Opportunities Fund, Class Y....... 24,302
2,031 Hartford International Capital Appreciation Fund,
Class Y......................................... 30,815
752 Hartford International Opportunities Fund, Class
Y............................................... 12,537
774 Hartford International Small Company Fund, Class
Y............................................... 12,672
836 Hartford MidCap Value Fund, Class Y............... 12,537
1,050 Hartford Select MidCap Growth Fund, Class Y....... 11,931
688 Hartford Select MidCap Value Fund, Class Y........ 8,535
182 Hartford Select SmallCap Growth Fund, Class Y
(D)............................................. 1,932
1,702 Hartford Small Company Fund, Class Y (D).......... 38,696
665 Hartford SmallCap Growth Fund, Class Y (D)........ 21,231
580 Hartford Stock Fund, Class Y...................... 12,736
1,574 Hartford Value Fund, Class Y...................... 20,314
2,012 Hartford Value Opportunities Fund, Class Y........ 37,182
--------
Total equity funds
(cost $385,371)................................. $439,039
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FIXED INCOME FUNDS -- 38.6%
3,757 Hartford Floating Rate Fund, Class Y.............. $ 37,983
1,624 Hartford High Yield Fund, Class Y................. 12,860
4,514 Hartford Income Fund, Class Y..................... 46,587
6,477 Hartford Inflation Plus Fund, Class Y............. 67,681
4,425 Hartford Short Duration Fund, Class Y............. 43,721
6,987 Hartford Total Return Bond Fund, Class Y.......... 74,829
--------
Total fixed income funds
(cost $286,309)................................. $283,661
--------
MONEY MARKET FUND -- 1.4%
10,232 Hartford Money Market Fund, Class Y............... $ 10,232
--------
Total money market fund
(cost $10,232).................................. $ 10,232
--------
Total investments in affiliated investment
companies
(cost $681,912) (C)............................. $732,932
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $681,959 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $53,801
Unrealized depreciation......................... (2,828)
-------
Net unrealized appreciation..................... $50,973
=======
</Table>
(D)Currently non-income producing.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
111
THE HARTFORD BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 45.4%
BASIC MATERIALS -- 4.4%
1 Air Products and Chemicals, Inc. ................. $ 49
3 Dow Chemical Co. ................................. 126
3 E.I. DuPont de Nemours & Co. ..................... 115
1 International Paper Co. .......................... 23
2 Kimberly-Clark Corp. ............................. 126
2 Packaging Corp. of America........................ 53
1 PPG Industries, Inc. ............................. 48
-------
540
-------
CAPITAL GOODS -- 1.1%
1 Deere & Co. ...................................... 43
2 Pitney Bowes, Inc. ............................... 98
-------
141
-------
CONSUMER CYCLICAL -- 1.6%
3 Altria Group, Inc. ............................... 203
-------
CONSUMER STAPLES -- 2.5%
1 Campbell Soup Co. ................................ 52
1 General Mills, Inc. .............................. 74
3 Kellogg Co. ...................................... 131
1 Weyerhaeuser Co. ................................. 51
-------
308
-------
ENERGY -- 4.8%
3 Chevron Corp. .................................... 215
1 ConocoPhillips.................................... 60
4 Exxon Mobil Corp. ................................ 271
1 Royal Dutch Shell plc............................. 49
-------
595
-------
FINANCE -- 11.6%
1 Allstate Corp. ................................... 80
5 Bank of America Corp. ............................ 264
1 Bank of New York Co., Inc. ....................... 21
1 Chubb Corp. ...................................... 69
5 Citigroup, Inc. .................................. 225
4 Host Hotels & Resorts, Inc. ...................... 83
2 JP Morgan Chase & Co. ............................ 109
2 PNC Financial Services Group, Inc. ............... 161
1 SunTrust Banks, Inc. ............................. 71
3 UBS AG............................................ 150
2 US Bancorp........................................ 74
1 Wachovia Corp. ................................... 56
2 Wells Fargo & Co. ................................ 80
-------
1,443
-------
HEALTH CARE -- 3.3%
2 Abbott Laboratories............................... 76
1 AstraZeneca plc ADR............................... 29
1 Baxter International, Inc. ....................... 23
3 Bristol-Myers Squibb Co. ......................... 74
2 Pfizer, Inc. ..................................... 53
3 Wyeth............................................. 138
-------
393
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SERVICES -- 0.9%
2 R.R. Donnelley & Sons Co. ........................ $ 61
2 Waste Management, Inc. ........................... 56
-------
117
-------
TECHNOLOGY -- 8.6%
8 AT&T, Inc. ....................................... 281
4 BellSouth Corp. .................................. 180
2 Chunghwa Telecom Co., Ltd. ADR.................... 37
8 General Electric Co. ............................. 280
5 Taiwan Semiconductor Manufacturing Co., Ltd.
ADR............................................. 49
4 Verizon Communications, Inc. ..................... 163
2 Vodafone Group plc ADR............................ 62
-------
1,052
-------
UTILITIES -- 6.6%
1 American Electric Power Co., Inc. ................ 58
1 Consolidated Edison, Inc. ........................ 68
1 Dominion Resources, Inc. ......................... 105
-- Entergy Corp. .................................... 26
2 Exelon Corp. ..................................... 93
5 FPL Group, Inc. .................................. 270
2 PPL Corp. ........................................ 66
1 SCANA Corp. ...................................... 44
2 Southern Co. ..................................... 66
-------
796
-------
Total common stock
(cost $5,286)................................... $ 5,588
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 4.7%
FINANCE -- 4.7%
$ 75 BMW Vehicle Owner Trust,
3.32%, 02/25/2009............................... $ 74
100 Carmax Auto Owner Trust,
4.34%, 09/15/2010............................... 98
97 Chase Commercial Mortgage Securities Corp.,
6.39%, 11/18/2030............................... 99
100 Commercial Mortgage Pass-Through Certificates,
5.96%, 06/10/2046 (L)........................... 104
100 Morgan Stanley Capital I,
5.23%, 09/15/2042............................... 100
100 Providian Gateway Master Trust,
3.65%, 11/15/2011 (I)........................... 98
-------
Total asset & commercial
mortgage backed securities
(cost $565)..................................... $ 573
-------
</Table>
The accompanying notes are an integral part of these financial statements.
112
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- 36.3%
BASIC MATERIALS -- 1.0%
$ 30 Agrium, Inc.,
7.13%, 05/23/2036............................... $ 32
25 Inco Ltd.,
7.75%, 05/15/2012............................... 27
20 Methanex Corp.,
8.75%, 08/15/2012............................... 22
20 Temple-Inland, Inc.,
6.38%, 01/15/2016............................... 21
25 Yara International ASA,
5.25%, 12/15/2014 (I)........................... 24
-------
126
-------
CAPITAL GOODS -- 0.3%
15 Goodrich Co.,
6.29%, 07/01/2016............................... 16
25 Tyco International Group S.A.,
6.75%, 02/15/2011............................... 26
-------
42
-------
CONSUMER CYCLICAL -- 1.5%
30 Altria Group, Inc.,
7.00%, 11/04/2013............................... 33
20 Avnet, Inc.,
6.63%, 09/15/2016............................... 21
20 D.R. Horton, Inc.,
8.00%, 02/01/2009............................... 21
5 DaimlerChrysler N.A. Holdings Corp.,
5.75%, 05/18/2009............................... 5
50 DaimlerChrysler N.A. Holdings Corp.,
6.50%, 11/15/2013............................... 52
20 DaimlerChrysler N.A. Holdings Corp.,
8.50%, 01/18/2031............................... 24
5 General Motors Corp.,
8.38%, 07/15/2033............................... 4
20 Pulte Homes, Inc.,
7.88%, 08/01/2011............................... 23
-------
183
-------
CONSUMER STAPLES -- 2.0%
25 Cia Brasileira de Bebidas,
8.75%, 09/15/2013............................... 29
25 Coca-Cola Enterprises, Inc.,
6.70%, 10/15/2036............................... 28
25 ConAgra Foods, Inc.,
7.00%, 10/01/2028............................... 27
45 Kraft Foods, Inc.,
4.13%, 11/12/2009............................... 44
35 PepsiAmericas, Inc.,
4.88%, 01/15/2015............................... 34
30 SABMiller plc,
6.20%, 07/01/2011 (I)........................... 31
20 Tyson Foods, Inc.,
6.85%, 04/01/2016............................... 21
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CONSUMER STAPLES -- (CONTINUED)
$ 30 Weyerhaeuser Co.,
6.75%, 03/15/2012............................... $ 32
-------
246
-------
ENERGY -- 1.7%
25 Amerada Hess Corp.,
7.88%, 10/01/2029............................... 30
15 Anadarko Petroleum Corp.,
6.45%, 09/15/2036............................... 16
15 Energy Transfer Partners,
6.63%, 10/15/2036............................... 15
20 Pemex Project Funding Master Trust,
5.75%, 12/15/2015............................... 20
10 Pemex Project Funding Master Trust,
7.17%, 10/15/2009 (K)(L)........................ 10
30 Phillips Petroleum Co.,
8.75%, 05/25/2010............................... 33
30 Valero Energy Corp.,
7.50%, 04/15/2032............................... 35
25 Weatherford International Ltd.,
6.50%, 08/01/2036............................... 26
25 XTO Energy, Inc.,
7.50%, 04/15/2012............................... 28
-------
213
-------
FINANCE -- 15.2%
30 Ace Capital Trust II,
9.70%, 04/01/2030............................... 41
20 Allied World Assurance,
7.50%, 08/01/2016............................... 21
30 Allstate Finance Global Fund II,
4.25%, 02/26/2010............................... 29
30 American General Finance Corp.,
4.63%, 05/15/2009............................... 30
25 Ameriprise Financial, Inc.,
5.35%, 11/15/2010............................... 25
25 Archstone-Smith Operating Trust,
5.25%, 05/01/2015............................... 25
25 Avalonbay Communities, Inc.,
7.50%, 08/01/2009............................... 26
25 Axa S.A.,
8.60%, 12/15/2030............................... 33
10 Banco Mercantil Del Nort,
6.14%, 10/13/2016 (I)........................... 10
50 Bank of America Corp.,
5.25%, 12/01/2015............................... 49
60 Bank of America Corp.,
7.40%, 01/15/2011............................... 65
25 Brandywine Operating Partnership,
5.75%, 04/01/2012............................... 25
25 Camden Property Trust,
4.38%, 01/15/2010............................... 24
25 CIT Group, Inc.,
6.00%, 04/01/2036............................... 25
45 Citigroup, Inc.,
5.00%, 09/15/2014............................... 44
</Table>
The accompanying notes are an integral part of these financial statements.
113
THE HARTFORD BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 20 Citigroup, Inc.,
5.63%, 08/27/2012............................... $ 20
75 Citigroup, Inc.,
6.00%, 10/31/2033............................... 76
25 Colonial Realty L.P.,
6.05%, 09/01/2016............................... 25
80 Credit Suisse First Boston USA, Inc.,
5.13%, 08/15/2015............................... 79
30 Developers Diversified Realty Corp.,
5.00%, 05/03/2010............................... 30
45 EOP Operating L.P.,
6.80%, 01/15/2009............................... 46
20 ERP Operating L.P.,
6.95%, 03/02/2011............................... 21
20 Everest Reinsurance Holdings, Inc.,
8.75%, 03/15/2010............................... 22
70 Goldman Sachs Group, Inc.,
6.45%, 05/01/2036............................... 74
50 Goldman Sachs Group, Inc.,
6.65%, 05/15/2009............................... 52
30 HBOS plc,
6.00%, 11/01/2033 (I)........................... 31
20 Health Care Property Investors, Inc.,
6.30%, 09/15/2016............................... 20
100 HSBC Finance Corp.,
6.75%, 05/15/2011............................... 106
20 International Lease Finance Corp.,
5.63%, 09/20/2013............................... 20
30 International Lease Finance Corp.,
6.38%, 03/15/2009............................... 31
25 Jefferies Group, Inc.,
6.25%, 01/15/2036............................... 24
30 John Deere Capital Corp.,
5.40%, 04/07/2010............................... 30
55 JP Morgan Chase & Co.,
5.13%, 09/15/2014............................... 54
70 JP Morgan Chase & Co.,
6.75%, 02/01/2011............................... 74
30 Kimco Realty Corp.,
5.78%, 03/15/2016............................... 30
25 Liberty Mutual Group, Inc.,
5.75%, 03/15/2014 (I)........................... 25
25 Liberty Property L.P.,
7.75%, 04/15/2009............................... 26
15 Lincoln National Corp.,
6.15%, 04/07/2036............................... 16
70 Merrill Lynch & Co., Inc.,
6.00%, 02/17/2009............................... 71
25 Metlife, Inc.,
6.13%, 12/01/2011............................... 26
10 Ministry Finance Russia,
3.00%, 05/14/2008............................... 10
45 Morgan Stanley,
4.75%, 04/01/2014............................... 43
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 10 Prudential Financial, Inc.,
5.90%, 03/17/2036............................... $ 10
30 Regency Centers L.P.,
5.25%, 08/01/2015............................... 29
30 Simon Property Group L.P.,
5.10%, 06/15/2015............................... 29
25 Simon Property Group L.P.,
5.38%, 06/01/2011............................... 25
10 St. Paul Travelers Cos., Inc.,
5.75%, 03/15/2007............................... 10
20 Symetra Financial Corp.,
6.13%, 04/01/2016 (I)........................... 20
10 Travelers Property Casualty Corp.,
6.38%, 03/15/2033............................... 11
20 United Dominion Realty Trust, Inc.,
6.05%, 06/01/2013............................... 20
25 UnitedHealth Group, Inc.,
5.38%, 03/15/2016............................... 25
35 Wachovia Corp.,
4.88%, 02/15/2014............................... 34
20 Western Union Co.,
5.93%, 10/01/2016 (I)........................... 20
30 Westfield Group,
5.40%, 10/01/2012 (I)........................... 30
25 WR Berkley Corp.,
5.88%, 02/15/2013............................... 26
25 XL Capital Europe plc,
6.50%, 01/15/2012............................... 27
-------
1,870
-------
FOREIGN GOVERNMENTS -- 1.2%
90 Russian Federation Government,
5.00%, 03/31/2030 (K)........................... 101
10 South Africa (Republic of),
7.38%, 04/25/2012............................... 11
35 United Mexican States,
8.13%, 12/30/2019............................... 43
-------
155
-------
HEALTH CARE -- 0.4%
30 AmerisourceBergenCorp.,
5.88%, 09/15/2015............................... 29
20 Schering-Plough Corp.,
6.75%, 12/01/2033............................... 22
-------
51
-------
SERVICES -- 3.4%
45 CBS Corp.,
7.70%, 07/30/2010............................... 48
30 Clear Channel Communication, Inc.,
7.65%, 09/15/2010............................... 31
35 Comcast Corp.,
7.05%, 03/15/2033............................... 38
50 COX Communications, Inc.,
7.13%, 10/01/2012............................... 53
20 Electronic Data Systems Corp.,
7.45%, 10/15/2029............................... 22
</Table>
The accompanying notes are an integral part of these financial statements.
114
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 10 Harrah's Operating Co., Inc.,
5.50%, 07/01/2010............................... $ 10
25 Harrah's Operating Co., Inc.,
5.63%, 06/01/2015............................... 21
25 Marriott International, Inc.,
4.63%, 06/15/2012............................... 24
30 News America, Inc.,
6.20%, 12/15/2034............................... 29
10 News America, Inc.,
6.40%, 12/15/2035............................... 10
10 News America, Inc.,
7.28%, 06/30/2028............................... 11
25 Omnicom Group, Inc.,
5.90%, 04/15/2016............................... 25
30 Time Warner Entertainment Co. L.P.,
8.38%, 03/15/2023............................... 35
25 Time Warner, Inc.,
6.15%, 05/01/2007............................... 25
10 Time Warner, Inc.,
6.75%, 04/15/2011............................... 10
25 Viacom, Inc.,
6.25%, 04/30/2016............................... 26
-------
418
-------
TECHNOLOGY -- 6.1%
10 AT&T, Inc.,
5.10%, 09/15/2014............................... 10
85 AT&T, Inc.,
5.30%, 11/15/2010............................... 85
10 Baltimore Gas and Electric,
6.35%, 10/01/2036 (I)........................... 10
30 Bellsouth Corp.,
5.20%, 09/15/2014............................... 29
35 British Telecommunications plc,
8.38%, 12/15/2010............................... 39
10 British Telecommunications plc,
8.88%, 12/15/2030............................... 14
40 Cingular Wireless Services, Inc.,
8.75%, 03/01/2031............................... 52
45 Comcast Cable Communications Holdings, Inc.,
8.38%, 03/15/2013............................... 51
15 Comcast Cable Communications, Inc.,
6.75%, 01/30/2011............................... 16
25 Deutsche Telekom International Finance B.V.,
8.00%, 06/15/2010 (L)........................... 27
35 Deutsche Telekom International Finance B.V.,
8.25%, 06/15/2030............................... 43
20 Embarq Corp.,
7.08%, 06/01/2016............................... 20
35 France Telecom S.A.,
8.50%, 03/01/2031............................... 47
30 Sprint Capital Corp.,
6.13%, 11/15/2008............................... 30
10 Sprint Capital Corp.,
8.38%, 03/15/2012............................... 11
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
$ 30 Sprint Capital Corp.,
8.75%, 03/15/2032............................... $ 37
10 Telecom Italia Capital,
5.25%, 10/01/2015............................... 9
55 Telecom Italia Capital,
6.20%, 07/18/2011............................... 56
55 Telefonica Europe B.V.,
8.25%, 09/15/2030............................... 67
45 Verizon Global Funding Corp.,
7.25%, 12/01/2010............................... 48
45 Verizon Global Funding Corp.,
7.75%, 12/01/2030............................... 53
-------
754
-------
TRANSPORTATION -- 0.3%
37 American Airlines, Inc.,
3.86%, 07/09/2010............................... 35
-------
UTILITIES -- 3.2%
30 American Electric Power Co., Inc.,
5.38%, 03/15/2010............................... 30
15 Commonwealth Edison Co.,
5.95%, 08/15/2016............................... 15
45 Dominion Resources, Inc.,
6.25%, 06/30/2012............................... 47
10 Duke Capital, LLC,
6.25%, 02/15/2013............................... 10
35 Duke Capital, LLC,
7.50%, 10/01/2009............................... 37
10 Exelon Generation Co. LLC,
6.95%, 06/15/2011............................... 11
30 Kinder Morgan Energy Partners L.P.,
6.75%, 03/15/2011............................... 31
10 Kinder Morgan Energy Partners L.P.,
7.30%, 08/15/2033............................... 11
45 Midamerican Energy Holdings Co.,
6.13%, 04/01/2036............................... 46
30 Nisource Finance Corp.,
7.88%, 11/15/2010............................... 32
40 Progress Energy Inc.,
6.85%, 04/15/2012............................... 43
35 PSEG Power LLC,
3.75%, 04/01/2009............................... 34
10 PSEG Power LLC,
8.63%, 04/15/2031............................... 13
10 Southwestern Public Service,
6.00%, 10/01/2036............................... 10
20 TXU Energy Co.,
7.00%, 03/15/2013............................... 21
-------
391
-------
Total corporate bonds:
investment grade
(cost $4,384)................................... $ 4,484
-------
</Table>
The accompanying notes are an integral part of these financial statements.
115
THE HARTFORD BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 9.7%
BASIC MATERIALS -- 0.7%
$ 25 FastenTech, Inc.,
11.50%, 05/01/2011.............................. $ 26
20 Huntsman LLC,
11.63%, 10/15/2010.............................. 22
20 Novelis, Inc.,
8.25%, 02/15/2015 (I)........................... 19
20 Texas Industries, Inc.,
7.25%, 07/15/2013............................... 20
-------
87
-------
CONSUMER CYCLICAL -- 0.5%
20 IKON Office Solutions, Inc.,
7.75%, 09/15/2015............................... 21
15 Insurance Auto Auctions, Inc.,
11.00%, 04/01/2013.............................. 15
20 TRW Automotive, Inc.,
11.00%, 02/15/2013.............................. 22
-------
58
-------
CONSUMER STAPLES -- 0.1%
15 Reynolds American, Inc.,
7.25%, 06/01/2013 (I)........................... 16
-------
ENERGY -- 0.6%
25 Chesapeake Energy Corp.,
6.50%, 08/15/2017............................... 24
10 Delta Petroleum Corp.,
7.00%, 04/01/2015............................... 9
10 Petrohawk Energy Corp.,
9.13%, 07/15/2013 (I)........................... 10
25 Williams Cos., Inc.,
8.13%, 03/15/2012............................... 27
-------
70
-------
FINANCE -- 0.9%
10 Ford Motor Credit Co.,
8.63%, 11/01/2010............................... 10
15 Ford Motor Credit Co.,
9.82%, 04/15/2012 (L)........................... 16
25 General Motors Acceptance Corp.,
6.88%, 08/28/2012............................... 25
10 General Motors Acceptance Corp.,
7.25%, 03/02/2011............................... 10
15 Host Marriott L.P.,
6.38%, 03/15/2015............................... 15
20 Neff Rental LLC,
11.25%, 06/15/2012 (I).......................... 22
10 United Rentals North America, Inc.,
7.00%, 02/15/2014............................... 10
-------
108
-------
FOREIGN GOVERNMENTS -- 3.8%
10 Argentina (Republic of),
1.20%, 12/31/2038 (L)........................... 6
38 Argentina (Republic of),
5.59%, 08/03/2012 (L)........................... 35
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FOREIGN GOVERNMENTS -- (CONTINUED)
$ 11 Argentina (Republic of),
8.28%, 12/31/2033............................... $ 11
25 Argentina (Republic of),
11.96%, 02/20/2008 (L).......................... 8
60 Brazil (Republic of),
7.88%, 03/07/2015............................... 66
15 Brazil (Republic of),
8.25%, 01/20/2034............................... 18
55 Brazil (Republic of),
8.88%, 10/14/2019............................... 66
30 Colombia (Republic of),
8.25%, 12/22/2014............................... 34
5 Costa Rica (Republic of),
10.00%, 08/01/2020 (K).......................... 6
5 Costa Rica (Republic of),
8.05%, 01/31/2013 (K)........................... 5
10 Ecuador (Republic of),
10.00%, 08/15/2030 (K).......................... 10
5 Panama (Republic of),
7.25%, 03/15/2015............................... 5
10 Panama (Republic of),
9.38%, 07/23/2012............................... 12
15 Peru (Republic of),
8.75%, 11/21/2033............................... 19
45 Philippines (Republic of),
9.38%, 01/18/2017............................... 54
5 Turkey (Republic of),
6.88%, 03/17/2036............................... 5
60 Turkey (Republic of),
7.25%, 03/15/2015............................... 62
5 Turkey (Republic of),
8.00%, 02/14/2034............................... 5
81 Uruguay Government International Bond,
5.00%, 09/14/2018............................... 4
45 Venezuela (Republic of),
5.75%, 02/26/2016............................... 41
-------
472
-------
HEALTH CARE -- 0.4%
30 CDRV Investors, Inc.,
11.53%, 01/01/2015 (M).......................... 23
20 Elan Financial plc,
9.41%, 11/15/2011 (L)........................... 20
10 Tenet Healthcare Corp.,
9.88%, 07/01/2014............................... 10
-------
53
-------
SERVICES -- 1.0%
20 AMC Entertainment, Inc.,
8.00%, 03/01/2014............................... 19
10 Liberty Media Corp.,
7.88%, 07/15/2009............................... 10
20 R.H. Donnelley Corp.,
8.88%, 01/15/2016............................... 21
5 Service Corp. International,
7.38%, 10/01/2014 (I)........................... 5
</Table>
The accompanying notes are an integral part of these financial statements.
116
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT
GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 10 Service Corp. International,
8.00%, 06/15/2017 (I)........................... $ 10
24 SunGard Data Systems, Inc.,
9.13%, 08/15/2013............................... 25
20 Virgin River Casino Corp.,
9.00%, 01/15/2012............................... 20
10 West Corp.,
11.00%, 10/15/2016 (I).......................... 10
-------
120
-------
TECHNOLOGY -- 1.2%
20 Charter Communications Operating LLC,
8.00%, 04/30/2012 (I)........................... 20
20 Dobson Cellular Systems,
8.38%, 11/01/2011............................... 21
20 Intelsat Subsidiary Holding Co. Ltd.,
8.25%, 01/15/2013............................... 20
20 Mediacom Broadband LLC,
8.50%, 10/15/2015............................... 20
20 Qwest Corp.,
7.63%, 06/15/2015............................... 21
20 UGS Corp.,
10.00%, 06/01/2012.............................. 22
25 Windstream Corp.,
8.13%, 08/01/2013 (I)........................... 27
-------
151
-------
TRANSPORTATION -- 0.2%
29 Continental Airlines, Inc.,
9.80%, 04/01/2021............................... 30
-------
UTILITIES -- 0.3%
10 Aquila, Inc.,
14.88%, 07/01/2012.............................. 13
20 TXU Corp.,
6.50%, 11/15/2024............................... 19
-------
32
-------
Total corporate bonds:
non-investment grade
(cost $1,171)................................... $ 1,197
-------
U.S. GOVERNMENT SECURITIES -- 0.0%
U.S. TREASURY SECURITIES -- 0.0%
$ 5 6.00% 2026 (S).................................... $ 6
-------
Total U.S. government securities
(cost $6)....................................... $ 6
-------
Total long-term investments
(cost $11,412).................................. $11,848
-------
SHORT-TERM INVESTMENTS -- 5.7%
REPURCHASE AGREEMENTS -- 5.7%
$141 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 141
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 83 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... $ 83
3 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 3
66 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 66
140 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 140
77 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 77
188 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 188
-------
Total short-term investments
(cost $698)..................................... $ 698
-------
Total investments in securities
(cost $12,110) (C).............................. $12,546
=======
</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 13.04% of total net assets at October 31, 2006.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $12,112 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................ $451
Unrealized depreciation............................ (17)
----
Net unrealized appreciation........................ $434
====
</Table>
(I)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 qualified institutional buyers.
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, 2006, was $438, which represents 3.55% of total net assets.
(K)Securities contain some restrictions as to public resale. These
securities comply with Regulation S, rules governing offers and sales made
outside the United States without registration under the Securities Act of
1933, and are determined to be liquid. At October 31, 2006, the market
value of these securities amounted to $132 or 1.07% of net assets.
(L)Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M)The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
117
THE HARTFORD BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
(S)Security pledged as initial margin deposit for open futures contracts at
October 31, 2006.
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
- ----------- --------- -------- ---------- --------------
CBT 5 Year U.S. Treasury Note futures contracts 3 Long December 2006 $ 1
CBT 10 Year U.S. Treasury Note futures contract 1 Short December 2006 (1)
---
$--
===
</Table>
These contracts had a market value of $425 as of October 31, 2006.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Brazilian Real Buy $ 7 $ 7 12/20/2006 $ --
Euro Sell 5 5 12/20/2006 --
Peruvian New Sol Buy 14 14 12/20/2006 --
-----
$ --
=====
</Table>
The accompanying notes are an integral part of these financial statements.
118
THE HARTFORD CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- ---------- -----------
COMMON STOCK -- 92.9%
BASIC MATERIALS -- 10.9%
1,809 Aracruz Celulose S.A. ADR (G)..................... $ 99,543
1,502 Arch Coal, Inc. (G)............................... 52,014
2,551 BHP Billiton Ltd. ADR (G)......................... 108,596
4,202 Cameco Corp. (G).................................. 147,602
6,070 Companhia Vale do Rio Doce ADR (G)................ 154,429
5,216 Dow Chemical Co. ................................. 212,745
2,150 Peabody Energy Corp. ............................. 90,240
780 Phelps Dodge Corp. ............................... 78,337
583 Potash Corp. of Saskatchewan...................... 72,779
2,629 Rio Tinto plc (A)................................. 145,446
1,695 Teck Cominco Ltd. Class B (D)..................... 124,734
4,677 Vedanta Resources plc (A)......................... 129,643
4,160 Xstrata plc (A)................................... 177,113
-----------
1,593,221
-----------
CAPITAL GOODS -- 7.5%
2,205 3M Co. ........................................... 173,811
10,662 ABB Ltd. ADR...................................... 159,069
1,800 Boeing Co. ....................................... 143,748
1,500 Caterpillar, Inc. ................................ 91,065
857 Deere & Co. (G)................................... 72,931
2,704 Ingersoll-Rand Co. Class A (G).................... 99,275
1,681 ITT Corp. ........................................ 91,402
1,561 Joy Global, Inc. ................................. 61,031
852 National Oilwell Varco, Inc. (D).................. 51,437
8,483 Xerox Corp. (D)................................... 144,209
-----------
1,087,978
-----------
CONSUMER CYCLICAL -- 6.6%
2,261 eBay, Inc. (D).................................... 72,646
5,441 Federated Department Stores, Inc. ................ 238,931
7,340 Gap, Inc. ........................................ 154,287
2,304 Lotte Shopping Co. GDR (D)........................ 43,202
5,458 Toyota Motor Corp. (A)............................ 322,282
2,811 Wal-Mart Stores, Inc. ............................ 138,521
-----------
969,869
-----------
CONSUMER STAPLES -- 3.1%
3,050 Bunge Ltd. (G).................................... 195,535
3,217 Constellation Brands, Inc. Class A (D)............ 88,444
1,270 Cosan S.A. Industria E Comercio (D)............... 21,644
2,250 Procter & Gamble Co. ............................. 142,634
-----------
448,257
-----------
ENERGY -- 5.7%
7,143 Halliburton Co. (G)............................... 231,070
1,800 Occidental Petroleum Corp. ....................... 84,492
3,284 Sasol Ltd. ADR.................................... 112,335
900 Valero Energy Corp. .............................. 47,097
4,556 Weatherford International Ltd. (D)................ 187,169
3,500 XTO Energy, Inc. ................................. 163,310
-----------
825,473
-----------
FINANCE -- 14.6%
4,785 ACE Ltd. ......................................... 273,940
943 Aflac, Inc. ...................................... 42,351
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- ---------- -----------
FINANCE -- (CONTINUED)
17,756 Akbank T.A.S. (A)................................. $ 100,049
1,300 American International Group, Inc. ............... 87,321
1,844 Assurant, Inc. (G)................................ 97,121
201 Augsburg Re AG (A)(H)............................. 33
1,559 Capital One Financial Corp. (G)................... 123,691
3,130 Citigroup, Inc. (G)............................... 157,011
750 Countrywide Financial Corp. ...................... 28,590
2,496 European Capital Ltd. (A)(D)(H)(Y)PFIC............ 30,540
792 Federal Home Loan Mortgage Corp. ................. 54,605
9,014 ICICI Bank Ltd. (D) (I)........................... 155,133
75,000 Industrial and Commercial Bank of China........... 33,560
1,000 Muenchener Rueckversicherungs-Gesellschaft AG
(A)............................................. 162,630
269 ORIX Corp. (A)PFIC................................ 75,596
6,426 Reliance Zero (A)(D)(I)........................... 175,304
1,121 UBS AG (G)........................................ 67,093
3,234 Uniao de Bancos Brasileiros S.A. GDR (G).......... 254,693
2,677 WellPoint, Inc. (D)............................... 204,293
-----------
2,123,554
-----------
HEALTH CARE -- 5.1%
1,878 AstraZeneca plc ADR............................... 110,233
2,500 Boston Scientific Corp. (D)(G).................... 39,775
3,307 Eli Lilly & Co. .................................. 185,236
848 Sanofi-Aventis S.A. (A)........................... 72,174
4,643 Teva Pharmaceutical Industries Ltd. ADR (G)....... 153,080
3,466 Wyeth (G)......................................... 176,844
-----------
737,342
-----------
SERVICES -- 6.2%
736 Fluor Corp. ...................................... 57,685
25 Harvey Weinstein Master L.P. (A)(D)(H)............ 30,541
7,085 News Corp. Class A................................ 147,718
2,127 Starwood Hotels & Resorts......................... 127,091
13,000 Sun Microsystems, Inc. (D)........................ 70,590
891 United Parcel Service, Inc. Class B (G)........... 67,152
2,859 Viacom, Inc. Class B (D).......................... 111,276
9,345 Walt Disney Co. .................................. 294,007
-----------
906,060
-----------
TECHNOLOGY -- 29.3%
4,038 Adobe Systems, Inc. (D)(G)........................ 154,465
2,031 Amdocs Ltd. (D)................................... 78,725
1,800 America Movil S.A. de C.V. ADR.................... 77,166
6,044 AT&T, Inc. (G).................................... 206,993
4,703 Broadcom Corp. Class A (D)........................ 142,354
14,949 China Mobile Ltd. (A)............................. 121,441
10,184 Cisco Systems, Inc. (D)........................... 245,745
11,735 Citigroup Global Certificate -- Bharti
Televentures (A)(D)(I).......................... 138,117
1,661 Cognex Corp. (G).................................. 38,246
4,527 Corning, Inc. (D)................................. 92,478
22,332 EMC Corp. (D)..................................... 273,571
9,942 General Electric Co. ............................. 349,050
524 Google, Inc. (D)(G)............................... 249,676
4,699 Hewlett-Packard Co. .............................. 182,020
</Table>
The accompanying notes are an integral part of these financial statements.
119
THE HARTFORD CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- ---------- -----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
11,608 Hon Hai Precision Industry Co., Ltd. (A).......... $ 75,081
1,040 International Business Machines Corp. ............ 95,986
1,217 L-3 Communications Holdings, Inc. ................ 97,969
3,331 Lockheed Martin Corp. ............................ 289,573
7,546 Medtronic, Inc. (G)............................... 367,359
900 Mobile Telesystems OJSC ADR (G)................... 39,672
10,462 Motorola, Inc. ................................... 241,256
8,813 Oracle Corp. (D)(G)............................... 162,769
900 Qualcomm, Inc. (G)................................ 32,751
106 Rakuten, Inc. (A)................................. 47,111
2,135 Raytheon Co. ..................................... 106,618
456 Samsung Electronics Co., Ltd. (A)................. 295,084
4,392 Turkcell Iletisim Hizmet ADR...................... 63,422
-----------
4,264,698
-----------
TRANSPORTATION -- 1.9%
1,400 ACE Aviation Holdings, Inc. (D)................... 48,611
67,533 Air China Ltd. (A)................................ 33,831
2,800 Royal Caribbean Cruises Ltd. (G).................. 113,400
3,215 Ryanair Holdings plc (A)(D)(I).................... 36,311
990 US Airways Group, Inc. (D)(J)..................... 49,340
-----------
281,493
-----------
UTILITIES -- 2.0%
2,865 American Electric Power Co., Inc. ................ 118,693
700 Exelon Corp. ..................................... 43,386
2,155 TXU Corp. ........................................ 136,033
-----------
298,112
-----------
Total common stock
(cost $11,456,905).............................. $13,536,057
-----------
PREFERRED STOCKS -- 0.0%
TECHNOLOGY -- 0.0%
8 SensAble Technologies, Inc. (A)(H)................ $ --
-----------
Total preferred stocks
(cost $4,000)................................... $ --
-----------
PRINCIPAL
AMOUNT
- ----------
CORPORATE BONDS: INVESTMENT GRADE -- 0.2%
FINANCE -- 0.2%
$ 397 Augsburg Re AG,
0.00%, 12/31/2049 (A)(H)(X)..................... $ 379
23,500 UBS Luxembourg S.A.,
6.23%, 02/11/2015............................... 23,748
-----------
Total corporate bonds: investment grade
(cost $24,699).................................. $ 24,127
-----------
Total long-term investments
(cost $11,485,604).............................. $13,560,184
-----------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ---------- -----------
SHORT-TERM INVESTMENTS -- 15.9%
FINANCE -- 6.3%
$ 186,233 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 186,233
109,549 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 109,549
4,369 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 4,369
87,639 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 87,639
184,042 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 184,042
100,785 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 100,785
247,580 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 247,580
-----------
920,197
-----------
<Caption>
SHARES
- ----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 9.6%
1,360,330 BNY Institutional Cash Reserve Fund............... 1,360,330
103 Evergreen Institutional Money Market Fund......... 103
37,661 Lehman Brothers Repurchase Agreement,
5.24%, 11/01/2006............................... 37,661
-----------
1,398,094
-----------
Total short-term investments
(cost $2,318,291)............................... $ 2,318,291
-----------
Total investments in securities
(cost $13,803,895) (C).......................... $15,878,475
===========
</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 29.66% of total net assets at October 31, 2006.
(A)The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $2,168,706, which represents 14.89% of total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $13,820,622 and the aggregate gross unrealized appreciation
and depreciation based on that cost were:
<Table>
Unrealized appreciation....................... $2,225,011
Unrealized depreciation....................... (167,158)
----------
Net unrealized appreciation................... $2,057,853
==========
</Table>
The accompanying notes are an integral part of these financial statements.
120
- --------------------------------------------------------------------------------
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(H) The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks
a readily available market or if its valuation has not changed for a
certain period of time.
<Table>
<Caption>
PERIOD ACQUIRED SHARES/PAR SECURITY COST BASIS
--------------- ---------- -------- ----------
June, 2006 201 Augsburg Re AG - 144A $ 64
June, 2006 397 Augsburg Re AG - 144A, 739
0.00%, 12/31/2049
October, 2005 - 2,496 European Capital Ltd. - 30,778
September, 2006 Reg D
October, 2005 25 Harvey Weinstein Master 23,636
L.P. - Reg D
April, 2000 8 SensAble Technologies, 4,000
Inc. - Reg D
</Table>
The aggregate value of these securities at October 31, 2006 was
$61,493 which represents 0.42% of total net assets.
(I) 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 qualified institutional
buyers. 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, 2006, was $504,865, which represents 3.47% of
total net assets.
(J) Securities exempt from registration under Regulation D of the
Securities Act of 1933. These securities are determined to be liquid. At
October 31, 2006, the market value of these securities was $49,340, which
represents 0.34% of total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
+ Convertible debt security.
(Y) As of October 31, 2006, the Fund has future commitments to
purchase an additional 1,104 shares in the amount of 11,039 EURO.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- -------- --------------
Hong Kong Dollars Sell $3,251 $3,250 11/02/2006 $(1)
===
</Table>
DIVERSIFICATION BY COUNTRY
October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- ---------------------------------------------------------------
Australia 0.7%
- ---------------------------------------------------------------
Brazil 3.6
- ---------------------------------------------------------------
Canada 2.7
- ---------------------------------------------------------------
China 0.5
- ---------------------------------------------------------------
France 0.5
- ---------------------------------------------------------------
Germany 1.3
- ---------------------------------------------------------------
Hong Kong 0.8
- ---------------------------------------------------------------
India 2.3
- ---------------------------------------------------------------
Ireland 0.2
- ---------------------------------------------------------------
Israel 1.1
- ---------------------------------------------------------------
Japan 3.1
- ---------------------------------------------------------------
Liberia 0.8
- ---------------------------------------------------------------
Luxembourg 1.1
- ---------------------------------------------------------------
</Table>
<Table>
- ---------------------------------------------------------------
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
Mexico 0.5
- ---------------------------------------------------------------
Russia 0.3
- ---------------------------------------------------------------
South Africa 0.8
- ---------------------------------------------------------------
South Korea 2.3
- ---------------------------------------------------------------
Switzerland 1.6
- ---------------------------------------------------------------
Taiwan 0.5
- ---------------------------------------------------------------
Turkey 1.1
- ---------------------------------------------------------------
United Kingdom 3.9
- ---------------------------------------------------------------
United States 63.4
- ---------------------------------------------------------------
Short-Term Investments 15.9
- ---------------------------------------------------------------
Other Assets & Liabilities (9.0)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
PFIC -- Passive Foreign Investment Company
The accompanying notes are an integral part of these financial statements.
121
THE HARTFORD CAPITAL APPRECIATION II FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 93.5%
BASIC MATERIALS -- 11.0%
112 Alcoa, Inc. ...................................... $ 3,247
7 Allegheny Technologies, Inc. ..................... 559
10 Aracruz Celulose S.A. ADR......................... 568
39 Arch Coal, Inc. .................................. 1,367
16 BHP Billiton Ltd. ADR............................. 685
119 Cameco Corp. ..................................... 4,177
14 Celanese Corp. ................................... 282
15 Century Aluminum Co. (D).......................... 592
75 Chemtura Corp. ................................... 642
14 Cleveland-Cliffs, Inc. ........................... 593
142 Companhia Vale do Rio Doce ADR.................... 3,608
16 Cytec Industries, Inc. ........................... 870
35 Dow Chemical Co. ................................. 1,435
14 E.I. DuPont de Nemours & Co. ..................... 641
36 Energy Resources Of Australia Limited (A)......... 499
4 FMC Corp. (D)..................................... 281
26 Goldcorp, Inc. ................................... 691
43 Ivanhoe Mines Ltd. (D)............................ 443
83 Jarden Corp. (D).................................. 2,995
12 Martin Marietta Materials, Inc. .................. 1,056
11 Michelin (C.G.D.E.) Class B (A)................... 935
15 Owens-Illinois, Inc. (D).......................... 254
146 Oxiana Ltd. (A)................................... 379
14 Peabody Energy Corp. ............................. 577
6 Phelps Dodge Corp. ............................... 647
4 Potash Corp. of Saskatchewan...................... 437
13 Rio Tinto plc (A)................................. 724
19 Silver Standard Resources, Inc. (D)............... 472
53 Smurfit-Stone Container Corp. (D)................. 565
12 Teck Cominco Ltd. Class B (D)..................... 854
18 Temple-Inland, Inc. .............................. 710
14 Titanium Metals Corp. (D)......................... 398
34 Tmk Oao GDR (I)................................... 864
6 United States Steel Corp. ........................ 433
302 Urasia Energy Ltd. (D)............................ 820
34 Vedanta Resources plc (A)......................... 943
71 Xstrata plc (A)................................... 3,007
209 Zinifex Ltd. (A).................................. 2,478
--------
40,728
--------
CAPITAL GOODS -- 5.2%
8 3M Co. ........................................... 654
33 Alliant Techsystems, Inc. (D)..................... 2,571
50 Boeing Co. ....................................... 4,017
7 Bucyrus International, Inc. ...................... 296
4 Caterpillar, Inc. ................................ 252
21 CNH Global N.V. .................................. 560
19 Deere & Co. ...................................... 1,614
63 Goodrich Corp. ................................... 2,786
30 Honeywell International, Inc. .................... 1,263
9 ITT Corp. ........................................ 473
13 Joy Global, Inc. ................................. 492
11 Kennametal, Inc. ................................. 679
20 Lam Research Corp. (D)............................ 999
66 Mitsubishi Heavy Industries Ltd. (A).............. 294
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
CAPITAL GOODS -- (CONTINUED)
6 National Oilwell Varco, Inc. (D).................. $ 389
15 Varian Semiconductor Equipment Associates, Inc.
(D)............................................. 555
92 Xerox Corp. (D)................................... 1,556
--------
19,450
--------
CONSUMER CYCLICAL -- 8.2%
17 Altria Group, Inc. ............................... 1,346
56 American Axle & Manufacturing Holdings, Inc. ..... 1,057
98 eBay, Inc. (D).................................... 3,162
93 Empresas ICA S.A. (D)............................. 317
128 Esprit Holdings Ltd. (A).......................... 1,238
33 Federated Department Stores, Inc. ................ 1,452
113 Foot Locker, Inc. ................................ 2,616
11 Foster Wheeler Ltd. (D)........................... 503
32 Gap, Inc. ........................................ 675
51 Kohl's Corp. (D).................................. 3,622
27 Lear Corp. ....................................... 825
13 Lotte Shopping Co. GDR (D)........................ 243
11 LVMH Moet Hennessy Louis Vuitton S.A. (A)......... 1,125
72 Ruby Tuesday, Inc. ............................... 2,006
54 Safeway, Inc. .................................... 1,580
30 Seven & I Holdings Co., Ltd. (A).................. 950
187 Tesco plc (A)..................................... 1,404
59 Tiffany & Co. .................................... 2,111
22 Tod's S.p.A. (A).................................. 1,944
15 Toyota Motor Corp. (A)............................ 874
35 TRW Automotive Holdings Corp. (D)................. 903
10 Walter Industries................................. 456
--------
30,409
--------
CONSUMER STAPLES -- 2.4%
2 Alberto-Culver Co. ............................... 94
12 Avon Products, Inc. .............................. 371
2 Coca-Cola Co. .................................... 94
39 Imperial Tobacco Group plc (A).................... 1,373
8 Nestle S.A. (A)................................... 2,585
91 Origin Agritech Ltd. (D).......................... 996
1 PepsiCo, Inc. .................................... 93
31 Royal Numico N.V. (A)............................. 1,402
74 Unilever N.V. NY Shares........................... 1,798
--------
8,806
--------
ENERGY -- 5.1%
4 EnCana Corp. #.................................... 181
18 EnCana Corp. #.................................... 841
27 Exxon Mobil Corp. ................................ 1,907
13 GlobalSantaFe Corp. .............................. 655
78 Halliburton Co. .................................. 2,520
11 Lukoil ADR........................................ 885
8 Marathon Oil Corp. ............................... 708
16 Noble Corp. ...................................... 1,092
22 Noble Energy, Inc. ............................... 1,089
13 Occidental Petroleum Corp. ....................... 622
44 Sasol Ltd. ADR.................................... 1,514
82 Talisman Energy, Inc. #........................... 1,346
</Table>
The accompanying notes are an integral part of these financial statements.
122
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
ENERGY -- (CONTINUED)
38 Talisman Energy, Inc. #........................... $ 626
37 Total S.A. ADR.................................... 2,497
44 UGI Corp. ........................................ 1,166
5 Valero Energy Corp. .............................. 286
13 Weatherford International Ltd. (D)................ 522
8 XTO Energy, Inc. ................................. 396
--------
18,853
--------
FINANCE -- 17.7%
80 ACE Ltd. ......................................... 4,563
26 Aetna, Inc. ...................................... 1,072
15 Affiliated Managers Group, Inc. (D)............... 1,492
19 Allstate Corp. ................................... 1,178
12 AMBAC Financial Group, Inc. ...................... 960
20 American International Group, Inc. ............... 1,323
117 Apollo Investment Corp. .......................... 2,518
1 Axis Capital Holdings Ltd. ....................... 43
172 Banca Intesa S.p.A. (A)........................... 1,173
68 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 1,652
99 Bank of America Corp. ............................ 5,327
51 Capital One Financial Corp. ...................... 4,030
19 Chardan North China Acquisition Corp. (D)......... 163
13 CIT Group, Inc. .................................. 661
87 Citigroup, Inc. .................................. 4,349
83 Dah Sing Financial................................ 728
7 Deutsche Boerse AG (A)............................ 1,083
171 E* Trade Financial Corp. (D)...................... 3,972
9 Erste Bank Der Oesterreichischen Sparkassen AG
(A)............................................. 593
16 Everest Re Group Ltd. ............................ 1,579
3 Goldman Sachs Group, Inc. ........................ 600
11 Julius Baer Holding Ltd. (A)...................... 1,125
306 Kerry Properties Ltd. (A)......................... 1,127
49 KKR Financial Corp. .............................. 1,307
117 Nasdaq Stock Market, Inc. (D)..................... 4,194
75 Nuveen Investments, Inc. Class A.................. 3,712
3 ORIX Corp. (A) PFIC............................... 872
34 Platinum Underwriters Holdings Ltd. .............. 1,009
76 Royal Bank of Scotland Group plc (A).............. 2,708
68 Services Acquisition Corp. International (D)...... 705
111 Shizuoka Bank Ltd. (A)............................ 1,185
37 State Street Corp. ............................... 2,396
24 UBS AG #.......................................... 1,460
17 UBS AG (A)#....................................... 1,018
10 Uniao de Bancos Brasileiros S.A. GDR.............. 811
193 UniCredito Italiano S.p.A. (A).................... 1,601
49 UnumProvident Corp. .............................. 961
7 WellPoint, Inc. (D)............................... 504
--------
65,754
--------
HEALTH CARE -- 8.8%
61 Alliance Boots plc (A)............................ 943
17 Amgen, Inc. (D)................................... 1,290
20 Amylin Pharmaceuticals, Inc. (D).................. 884
33 Astellas Pharma, Inc. (A)......................... 1,486
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
HEALTH CARE -- (CONTINUED)
46 Boston Scientific Corp. (D)....................... $ 737
24 Bristol-Myers Squibb Co. ......................... 586
14 Cie Generale d'Optique Essilor International S.A.
(D)(A).......................................... 1,458
25 Cooper Companies, Inc. ........................... 1,423
19 Eisai Co., Ltd. (A)............................... 946
35 Eli Lilly & Co. .................................. 1,983
53 HealthSouth Corp. (D)............................. 1,295
56 Impax Laboratories, Inc. (D)...................... 392
12 Invitrogen Corp. (D).............................. 679
14 Kos Pharmaceuticals, Inc. (D)..................... 677
11 McKesson Corp. ................................... 561
23 Sanofi-Aventis S.A. (A)........................... 1,948
66 Sanofi-Aventis S.A. ADR........................... 2,805
306 Schering-Plough Corp. ............................ 6,784
97 Shionogi & Co., Ltd. (A).......................... 1,935
19 Teva Pharmaceutical Industries Ltd. ADR........... 617
16 Vertex Pharmaceuticals, Inc. (D).................. 666
53 Wyeth............................................. 2,705
--------
32,800
--------
SERVICES -- 6.6%
16 Avid Technology, Inc. (D)......................... 560
91 Comcast Corp. Class A (D)......................... 3,698
62 Comcast Corp. Special Class A (D)................. 2,497
32 Entercom Communications Corp. .................... 894
63 Equifax, Inc. .................................... 2,377
5 Fluor Corp. ...................................... 382
40 Focus Media Holding Ltd. ADR (D).................. 2,100
103 Genius Products, Inc. (D)......................... 243
12 Liberty Global, Inc. (D).......................... 315
20 Liberty Global, Inc. Class C (D).................. 501
94 Live Nation, Inc. (D)............................. 2,000
15 New York Times Co. Class A........................ 358
28 News Corp. Class A................................ 573
21 R.H. Donnelley Corp. ............................. 1,252
375 Thorium Power Ltd. ............................... 113
188 Thorium Power PIPE (A)(H)......................... 10
129 Unisys Corp. (D).................................. 845
35 Viacom, Inc. Class B (D).......................... 1,362
148 Walt Disney Co. .................................. 4,653
--------
24,733
--------
TECHNOLOGY -- 22.8%
207 Activision, Inc. (D).............................. 3,193
117 Adobe Systems, Inc. (D)........................... 4,491
9 America Movil S.A. de C.V. ADR.................... 385
53 American Tower Corp. Class A (D).................. 1,905
8 Apple Computer, Inc. (D).......................... 616
41 Arrow Electronics, Inc. (D)....................... 1,218
19 AT&T, Inc. ....................................... 642
326 Charter Communications, Inc. Class A (D).......... 750
150 China Mobile Ltd. (A)............................. 1,220
118 Cinram International Income Fund.................. 2,321
155 Cisco Systems, Inc. (D)........................... 3,740
153 Corning, Inc. (D)................................. 3,122
</Table>
The accompanying notes are an integral part of these financial statements.
123
THE HARTFORD CAPITAL APPRECIATION II FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
50 Deutsche Telekom AG (A)........................... $ 867
18 Electronic Arts, Inc. (D)......................... 973
4 Embarq Corp. ..................................... 200
157 EMC Corp. (D)..................................... 1,922
25 Fairchild Semiconductor International, Inc. (D)... 409
96 Flextronics International Ltd. (D)................ 1,118
109 Fossil, Inc. (D).................................. 2,387
118 General Electric Co. ............................. 4,143
3 Google, Inc. (D).................................. 1,620
87 Hewlett-Packard Co. .............................. 3,374
40 Koninklijke Philips Electronics N.V. (A).......... 1,376
16 Lockheed Martin Corp. ............................ 1,417
30 Maxim Integrated Products, Inc. .................. 894
126 Medtronic, Inc. .................................. 6,109
164 Microsoft Corp. .................................. 4,717
196 Motorola, Inc. ................................... 4,511
28 NCR Corp. (D)..................................... 1,179
124 Network Appliance, Inc. (D)....................... 4,530
161 Oracle Corp. (D).................................. 2,970
101 Powerwave Technologies, Inc. (D).................. 656
23 QLogic Corp. (D).................................. 474
33 Qualcomm, Inc. ................................... 1,208
3 Samsung Electronics Co., Ltd. (A)................. 2,145
25 Sony Corp. (A).................................... 1,030
65 Sprint Nextel Corp. .............................. 1,209
55 Symantec Corp. (D)................................ 1,095
23 Tektronix, Inc. .................................. 683
45 Telefonaktiebolaget LM Ericsson ADR............... 1,703
77 Turkcell Iletisim Hizmet ADR...................... 1,117
27 Tyco International Ltd. .......................... 798
114 VeriFone Holdings, Inc. (D)....................... 3,315
27 Verizon Communications, Inc. ..................... 1,003
--------
84,755
--------
TRANSPORTATION -- 3.7%
6 ACE Aviation Holdings, Inc. (D)................... 212
347 All America Latina Logistica S.A. ................ 3,028
8 American Commercial Lines, Inc. (D)............... 532
13 Copa Holdings S.A. Class A........................ 504
76 GOL Linhas Aereas Inteligentes S.A. ADR........... 2,364
4 Grupo Aeroportuario del Pacifico S.A. de CV....... 140
13 Kirby Corp. (D)................................... 452
51 Knight Transportation, Inc. ...................... 932
8 Ryanair Holdings plc ADR (D)...................... 511
12 Trinity Industries, Inc. ......................... 429
92 UAL Corp. (D)..................................... 3,313
23 US Airways Group, Inc. (D)........................ 1,147
9 YRC Worldwide, Inc. (D)........................... 342
--------
13,906
--------
UTILITIES -- 2.0%
22 Electricite de France (D)(A)...................... 1,316
12 PPL Corp. ........................................ 418
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
UTILITIES -- (CONTINUED)
96 Suntech Power Holdings Co. Ltd. ADR (D)........... $ 2,499
49 TXU Corp. ........................................ 3,121
--------
7,354
--------
Total common stock
(cost $323,212)................................. $347,548
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 4.9%
REPURCHASE AGREEMENTS -- 4.9%
$3,686 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 3,686
2,168 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 2,168
86 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 86
1,734 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 1,734
3,642 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 3,642
1,995 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 1,995
4,900 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 4,900
--------
Total short-term investments
(cost $18,211).................................. $ 18,211
--------
Total investments in securities
(cost $341,423) (C)............................. $365,759
========
</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 26.65% of total net assets at October 31, 2006.
(A)The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $52,971, which represents 14.26% of total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $343,260 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $26,671
Unrealized depreciation......................... (4,172)
-------
Net unrealized appreciation..................... $22,499
=======
</Table>
(D)Currently non-income producing.
The accompanying notes are an integral part of these financial statements.
124
- --------------------------------------------------------------------------------
(H)The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks a
readily available market or if its valuation has not changed for a certain
period of time.
<Table>
<Caption>
PERIOD COST
ACQUIRED SHARES/PAR SECURITY BASIS
-------- ---------- -------- -----
April, 2006 188 Thorium Power $16
Ltd. - (PIPE)
</Table>
The aggregate value of these securities at October 31, 2006 was $10, the
percentage of net assets rounds to zero.
(I)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 qualified institutional buyers.
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, 2006, was $864, which represents 0.23% of total net assets.
# Securities listed on more than one exchange.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- -------- --------------
British Pound Buy $ 11 $ 11 11/01/2006 $--
Canadian Dollar Buy 10 10 11/01/2006 --
Canadian Dollar Buy 12 12 11/02/2006 --
Canadian Dollar Buy 16 16 11/03/2006 --
Euro Sell 180 180 11/01/2006 --
Euro Buy 24 24 11/02/2006 --
Hong Kong Dollars Buy 134 134 11/02/2006 --
Hong Kong Dollars Sell 297 297 11/02/2006 --
Japanese Yen Buy 5 5 11/01/2006 --
Japanese Yen Buy 126 124 11/01/2006 2
Japanese Yen Sell 225 224 11/02/2006 (1)
Japanese Yen Buy 5 5 11/06/2006 --
Japanese Yen Sell 139 138 11/06/2006 (1)
Swiss Francs Sell 181 180 11/02/2006 (1)
Swiss Francs Sell 288 287 11/02/2006 (1)
---
$(2)
===
</Table>
DIVERSIFICATION BY COUNTRY
October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- ---------------------------------------------------------------
Australia 1.1%
- ---------------------------------------------------------------
Austria 0.2
- ---------------------------------------------------------------
Brazil 2.8
- ---------------------------------------------------------------
Canada 3.6
- ---------------------------------------------------------------
China 1.2
- ---------------------------------------------------------------
France 3.3
- ---------------------------------------------------------------
Germany 0.5
- ---------------------------------------------------------------
Hong Kong 0.9
- ---------------------------------------------------------------
Ireland 0.1
- ---------------------------------------------------------------
Israel 0.2
- ---------------------------------------------------------------
Italy 1.3
- ---------------------------------------------------------------
Japan 2.6
- ---------------------------------------------------------------
Mexico 0.2
- ---------------------------------------------------------------
</Table>
<Table>
- ---------------------------------------------------------------
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
Netherlands 1.2
- ---------------------------------------------------------------
Panama 0.1
- ---------------------------------------------------------------
Russia 0.5
- ---------------------------------------------------------------
South Africa 0.4
- ---------------------------------------------------------------
South Korea 0.6
- ---------------------------------------------------------------
Spain 0.4
- ---------------------------------------------------------------
Sweden 0.5
- ---------------------------------------------------------------
Switzerland 1.7
- ---------------------------------------------------------------
Turkey 0.3
- ---------------------------------------------------------------
United Kingdom 3.0
- ---------------------------------------------------------------
United States 66.8
- ---------------------------------------------------------------
Short-Term Investments 4.9
- ---------------------------------------------------------------
Other Assets & Liabilities 1.6
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
PFIC -- Passive Foreign Investment Company
The accompanying notes are an integral part of these financial statements.
125
THE HARTFORD CONSERVATIVE ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 99.9%
EQUITY FUNDS -- 39.9%
293 Hartford Capital Appreciation Fund, Class Y....... $ 12,342
634 Hartford Disciplined Equity Fund, Class Y......... 8,606
124 Hartford Equity Income Fund, Class Y.............. 1,751
250 Hartford Global Leaders Fund, Class Y............. 5,027
39 Hartford Growth Opportunities Fund, Class Y....... 1,171
182 Hartford International Capital Appreciation Fund,
Class Y......................................... 2,755
167 Hartford International Opportunities Fund, Class
Y............................................... 2,787
245 Hartford International Small Company Fund, Class
Y............................................... 4,012
188 Hartford MidCap Value Fund, Class Y............... 2,817
236 Hartford Select MidCap Growth Fund, Class Y....... 2,681
25 Hartford Select MidCap Value Fund, Class Y........ 315
63 Hartford Select SmallCap Growth Fund, Class Y
(D)............................................. 671
67 Hartford Small Company Fund, Class Y (D).......... 1,520
52 Hartford SmallCap Growth Fund, Class Y (D)........ 1,656
241 Hartford Stock Fund, Class Y...................... 5,300
359 Hartford Value Opportunities Fund, Class Y........ 6,635
--------
Total equity funds
(cost $52,972).................................. $ 60,046
--------
FIXED INCOME FUNDS -- 60.0%
946 Hartford Floating Rate Fund, Class Y.............. 9,562
776 Hartford High Yield Fund, Class Y................. 6,146
1,006 Hartford Income Fund, Class Y..................... 10,383
1,709 Hartford Inflation Plus Fund, Class Y............. 17,863
2,072 Hartford Short Duration Fund, Class Y............. 20,470
2,414 Hartford Total Return Bond Fund, Class Y.......... 25,850
--------
Total fixed income funds
(cost $91,169).................................. $ 90,274
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
MONEY MARKET FUND -- 0.0%
1 Hartford Money Market Fund, Class Y............... $ 1
--------
Total money market fund
(cost $1)....................................... $ 1
--------
Total investments in affiliated investment
companies
(cost $144,142) (C)............................. $150,321
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $144,449 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $6,798
Unrealized depreciation.......................... (926)
------
Net unrealized appreciation...................... $5,872
======
</Table>
(D)Currently non-income producing.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
126
THE HARTFORD DISCIPLINED EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 99.7%
BASIC MATERIALS -- 4.6%
218 Alcoa, Inc. ...................................... $ 6,288
41 Freeport-McMoRan Copper & Gold, Inc. Class B...... 2,486
69 Goodyear Tire & Rubber Co. (D)(U)................. 1,064
147 Kimberly-Clark Corp. ............................. 9,792
--------
19,630
--------
CAPITAL GOODS -- 6.5%
49 3M Co. ........................................... 3,887
29 Black & Decker Co. (U)............................ 2,399
46 Caterpillar, Inc. ................................ 2,781
199 Lam Research Corp. (D)............................ 9,831
72 Parker-Hannifin Corp. (U)......................... 6,030
55 Pitney Bowes, Inc. ............................... 2,583
--------
27,511
--------
CONSUMER CYCLICAL -- 6.8%
177 Altria Group, Inc. ............................... 14,404
54 Dillard's, Inc. .................................. 1,635
107 Gap, Inc. ........................................ 2,251
70 Kohl's Corp. (D).................................. 4,942
122 Office Depot, Inc. (D)............................ 5,119
6 Polo Ralph Lauren Corp. .......................... 454
--------
28,805
--------
CONSUMER STAPLES -- 1.9%
52 General Mills, Inc. .............................. 2,977
9 Kraft Foods, Inc. ................................ 316
61 Reynolds American, Inc. .......................... 3,840
18 Weyerhaeuser Co. ................................. 1,126
--------
8,259
--------
ENERGY -- 9.9%
162 Chevron Corp. .................................... 10,893
197 ConocoPhillips.................................... 11,873
90 Exxon Mobil Corp. ................................ 6,406
51 Hess Corp. ....................................... 2,158
9 Marathon Oil Corp. ............................... 734
214 Occidental Petroleum Corp. ....................... 10,059
--------
42,123
--------
FINANCE -- 23.1%
125 ACE Ltd. ......................................... 7,139
160 Assurant, Inc. ................................... 8,415
44 Axis Capital Holdings Ltd. ....................... 1,449
314 Bank of America Corp. ............................ 16,904
344 Citigroup, Inc. .................................. 17,253
125 Countrywide Financial Corp. ...................... 4,769
54 Goldman Sachs Group, Inc. ........................ 10,325
111 Lehman Brothers Holdings, Inc. (U)................ 8,601
24 MBIA, Inc. ....................................... 1,488
5 PNC Financial Services Group, Inc. ............... 336
113 St. Paul Travelers Cos., Inc. .................... 5,778
113 TD Ameritrade Holding Corp. ...................... 1,866
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
68 UnitedHealth Group, Inc. ......................... $ 3,302
113 Wachovia Corp. ................................... 6,294
157 Western Union Co. (D)............................. 3,451
--------
97,370
--------
HEALTH CARE -- 12.7%
219 Abbott Laboratories............................... 10,409
84 Amgen, Inc. (D)................................... 6,369
86 Amylin Pharmaceuticals, Inc. (D).................. 3,781
346 Bristol-Myers Squibb Co. ......................... 8,564
36 Cardinal Health, Inc. ............................ 2,337
53 Cephalon, Inc. (D)................................ 3,727
102 Forest Laboratories, Inc. (D)..................... 5,007
23 Gilead Sciences, Inc. (D)......................... 1,571
173 McKesson Corp. ................................... 8,671
69 Wyeth............................................. 3,496
--------
53,932
--------
SERVICES -- 7.5%
133 Accenture Ltd. Class A............................ 4,367
56 Comcast Corp. Class A (D)......................... 2,295
17 IMS Health, Inc. ................................. 473
28 Omnicom Group, Inc. .............................. 2,881
114 United Parcel Service, Inc. Class B............... 8,605
102 Viacom, Inc. Class B (D).......................... 3,950
181 Walt Disney Co. .................................. 5,685
91 Waste Management, Inc. ........................... 3,414
--------
31,670
--------
TECHNOLOGY -- 24.6%
298 AT&T, Inc. ....................................... 10,210
97 BellSouth Corp. .................................. 4,352
40 CenturyTel, Inc. ................................. 1,594
68 Cisco Systems, Inc. (D)(U)........................ 1,652
192 Corning, Inc. (D)................................. 3,929
139 Dover Corp. ...................................... 6,579
154 First Data Corp. ................................. 3,735
29 Garmin Ltd. (U)................................... 1,560
120 General Electric Co. ............................. 4,213
122 Hewlett-Packard Co. .............................. 4,730
79 International Business Machines Corp. ............ 7,285
113 Lockheed Martin Corp. ............................ 9,840
101 MEMC Electronic Materials, Inc. (D)............... 3,600
621 Microsoft Corp. .................................. 17,838
449 Motorola, Inc. ................................... 10,356
78 Oracle Corp. (D).................................. 1,435
187 Qwest Communications International, Inc. (D)...... 1,612
70 Seagate Technology................................ 1,569
97 Sprint Nextel Corp. .............................. 1,804
72 Whirlpool Corp. .................................. 6,223
--------
104,116
--------
TRANSPORTATION -- 0.2%
14 General Dynamics Corp. ........................... 967
--------
</Table>
The accompanying notes are an integral part of these financial statements.
127
THE HARTFORD DISCIPLINED EQUITY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
UTILITIES -- 1.9%
40 FirstEnergy Corp. ................................ $ 2,366
89 TXU Corp. ........................................ 5,604
--------
7,970
--------
Total common stock
(cost $367,439)................................. $422,353
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 0.6%
REPURCHASE AGREEMENTS -- 0.6%
$483 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 483
284 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 284
11 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 11
227 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 227
477 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 477
262 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 262
642 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 642
--------
2,386
--------
Total short-term investments
(cost $2,386)................................... $ 2,386
--------
Total investments in securities
(cost $369,825) (C)............................. $424,739
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $370,335 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $58,150
Unrealized depreciation......................... (3,746)
-------
Net unrealized appreciation..................... $54,404
=======
</Table>
(D)Currently non-income producing.
(U)At October 31, 2006, securities valued at $21,306 were designated
to cover open call options written as follows (see Note 2 to accompanying
Notes to Financial Statements):
<Table>
<Caption>
EXERCISE MARKET PREMIUMS
ISSUER CONTRACTS PRICE EXPIRATION DATE VALUE (W) RECEIVED
------ --------- -------- --------------- --------- --------
Black & Decker Co. 63 $85 November 2006 $ 8 $ 6
Cisco Systems, Inc 161 25 November 2006 6 6
Garmin Ltd. 67 55 November 2006 13 6
Goodyear Tire &
Rubber Co. 145 15 November 2006 12 9
Lehman Brothers
Holdings, Inc. 139 80 November 2006 11 17
Parker-Hannifin Corp. 102 90 December 2006 6 9
--- ---
Total Value $56 $53
=== ===
</Table>
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
128
THE HARTFORD DIVIDEND & GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- 97.2%
BASIC MATERIALS -- 7.2%
1,678 Alcoa, Inc. ...................................... $ 48,514
213 Bowater, Inc. (G)................................. 4,443
867 Companhia Vale do Rio Doce ADR.................... 22,053
1,265 E.I. DuPont de Nemours & Co. ..................... 57,931
826 International Paper Co. .......................... 27,557
610 Kimberly-Clark Corp. ............................. 40,544
329 Newmont Mining Corp. ............................. 14,871
80 Rio Tinto plc ADR................................. 17,711
281 Rohm & Haas Co. .................................. 14,567
----------
248,191
----------
CAPITAL GOODS -- 5.1%
557 American Standard Cos., Inc. ..................... 24,647
561 Deere & Co. ...................................... 47,741
374 KLA-Tencor Corp. ................................. 18,385
281 Parker-Hannifin Corp. ............................ 23,458
624 Pitney Bowes, Inc. ............................... 29,166
1,905 Xerox Corp. (D)................................... 32,378
----------
175,775
----------
CONSUMER CYCLICAL -- 8.0%
746 Altria Group, Inc. ............................... 60,697
422 Avery Dennison Corp. ............................. 26,626
134 Genuine Parts Co. ................................ 6,077
483 Ltd. Brands, Inc. ................................ 14,240
1,033 McDonald's Corp. ................................. 43,287
189 NIKE, Inc. Class B (G)............................ 17,347
889 Sysco Corp. ...................................... 31,090
1,575 Wal-Mart Stores, Inc. ............................ 77,621
----------
276,985
----------
CONSUMER STAPLES -- 5.4%
390 Bunge Ltd. ....................................... 25,009
780 Coca-Cola Co. .................................... 36,446
377 Nestle S.A. ADR................................... 32,238
379 Procter & Gamble Co. ............................. 24,039
1,201 Tyson Foods, Inc. Class A......................... 17,359
422 Unilever N.V. NY Shares........................... 10,215
663 Weyerhaeuser Co. ................................. 42,167
----------
187,473
----------
ENERGY -- 15.4%
335 BP plc ADR........................................ 22,452
1,643 Chevron Corp. .................................... 110,410
807 ConocoPhillips.................................... 48,620
900 EnCana Corp. ..................................... 42,751
1,756 Exxon Mobil Corp. ................................ 125,415
546 Royal Dutch Shell plc............................. 38,013
451 Schlumberger Ltd. ................................ 28,418
1,206 Total S.A. ADR (G)................................ 82,204
699 XTO Energy, Inc. ................................. 32,615
----------
530,898
----------
FINANCE -- 17.8%
520 ACE Ltd. ......................................... 29,793
563 Allstate Corp. ................................... 34,515
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
FINANCE -- (CONTINUED)
651 American International Group, Inc. ............... $ 43,734
2,095 Bank of America Corp. ............................ 112,865
1,839 Citigroup, Inc. .................................. 92,224
489 Federal Home Loan Mortgage Corp. ................. 33,709
359 JP Morgan Chase & Co. ............................ 17,023
463 MBIA, Inc. ....................................... 28,700
515 Merrill Lynch & Co., Inc. ........................ 45,048
370 Metlife, Inc. .................................... 21,121
187 PNC Financial Services Group, Inc. ............... 13,061
209 Prudential Financial, Inc. ....................... 16,040
622 State Street Corp. ............................... 39,938
700 Synovus Financial Corp. .......................... 20,563
849 UBS AG............................................ 50,780
551 Western Union Co. ................................ 12,158
----------
611,272
----------
HEALTH CARE -- 9.2%
1,402 Abbott Laboratories............................... 66,595
483 AstraZeneca plc ADR............................... 28,370
1,776 Bristol-Myers Squibb Co. ......................... 43,958
1,217 Eli Lilly & Co. .................................. 68,136
450 Sanofi-Aventis S.A. ADR........................... 19,211
2,494 Schering-Plough Corp. ............................ 55,213
361 Teva Pharmaceutical Industries Ltd. ADR........... 11,909
426 Wyeth............................................. 21,744
----------
315,136
----------
SERVICES -- 7.1%
784 Accenture Ltd. Class A............................ 25,792
257 Automatic Data Processing, Inc. .................. 12,681
776 CBS Corp. Class B................................. 22,470
735 Comcast Corp. Class A (D)......................... 29,911
444 Comcast Corp. Special Class A (D)................. 17,989
584 New York Times Co. Class A (G).................... 14,120
2,178 Sun Microsystems, Inc. (D)........................ 11,824
970 Time Warner, Inc. ................................ 19,404
369 United Parcel Service, Inc. Class B............... 27,782
546 Viacom, Inc. Class B (D).......................... 21,256
330 Warner Music Group Corp. ......................... 8,544
837 Waste Management, Inc. ........................... 31,386
----------
243,159
----------
TECHNOLOGY -- 16.7%
3,097 AT&T, Inc. (G).................................... 106,065
441 BellSouth Corp. .................................. 19,889
1,688 EMC Corp. (D)..................................... 20,679
551 First Data Corp. ................................. 13,371
2,778 General Electric Co. ............................. 97,543
733 International Business Machines Corp. ............ 67,650
369 Lockheed Martin Corp. ............................ 32,077
478 Maxim Integrated Products, Inc. .................. 14,357
845 Medtronic, Inc. .................................. 41,130
1,791 Microsoft Corp. .................................. 51,428
1,784 Motorola, Inc. ................................... 41,134
1,340 Sprint Nextel Corp. .............................. 25,046
</Table>
The accompanying notes are an integral part of these financial statements.
129
THE HARTFORD DIVIDEND & GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
907 Verizon Communications, Inc. ..................... $ 33,575
146 Whirlpool Corp. .................................. 12,692
----------
576,636
----------
TRANSPORTATION -- 0.5%
1,068 Southwest Airlines Co. ........................... 16,054
----------
UTILITIES -- 4.8%
556 Dominion Resources, Inc. ......................... 45,055
1,066 Exelon Corp. ..................................... 66,063
812 FPL Group, Inc. (G)............................... 41,432
298 Progress Energy, Inc. ............................ 13,714
----------
166,264
----------
Total common stock
(cost $2,725,705)............................... $3,347,843
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 4.2%
REPURCHASE AGREEMENTS -- 2.8%
$19,234 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 19,234
11,314 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 11,314
451 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 451
9,051 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 9,051
19,008 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 19,008
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
REPURCHASE AGREEMENTS -- (CONTINUED)
$10,409 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... $ 10,409
25,571 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 25,571
----------
95,038
----------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM
SECURITY LENDING -- 1.4%
$49,371 BNY Institutional Cash Reserve Fund............... $ 49,371
----------
Total short-term investments
(cost $144,409)................................. $ 144,409
----------
Total investments in securities
(cost $2,870,114) (C)........................... $3,492,252
==========
</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 10.98% of total net assets at October 31, 2006.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $2,873,301 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $643,253
Unrealized depreciation........................ (24,302)
--------
Net unrealized appreciation.................... $618,951
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
130
THE HARTFORD EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 98.5%
BASIC MATERIALS -- 8.8%
119 Air Products and Chemicals, Inc. ................. $ 8,312
329 Alcoa, Inc. ...................................... 9,505
332 Dow Chemical Co. ................................. 13,523
164 E.I. DuPont de Nemours & Co. ..................... 7,529
81 International Paper Co. .......................... 2,688
126 Kimberly-Clark Corp. ............................. 8,357
101 PPG Industries, Inc. ............................. 6,876
--------
56,790
--------
CAPITAL GOODS -- 5.6%
79 3M Co. ........................................... 6,252
149 American Standard Cos., Inc. ..................... 6,617
88 Deere & Co. ...................................... 7,466
135 Goodrich Corp. ................................... 5,957
201 Pitney Bowes, Inc. ............................... 9,403
--------
35,695
--------
CONSUMER CYCLICAL -- 3.2%
256 Altria Group, Inc. ............................... 20,796
--------
CONSUMER STAPLES -- 7.2%
142 Campbell Soup Co. ................................ 5,308
98 Colgate-Palmolive Co. ............................ 6,269
69 Diageo plc ADR.................................... 5,168
158 General Mills, Inc. .............................. 8,968
184 Kellogg Co. ...................................... 9,260
115 PepsiCo, Inc. .................................... 7,315
66 Weyerhaeuser Co. ................................. 4,210
--------
46,498
--------
ENERGY -- 9.3%
185 Chevron Corp. .................................... 12,425
105 ConocoPhillips.................................... 6,329
410 Exxon Mobil Corp. ................................ 29,255
199 Halliburton Co. .................................. 6,438
77 Royal Dutch Shell plc ADR......................... 5,509
--------
59,956
--------
FINANCE -- 29.5%
146 ACE Ltd. ......................................... 8,376
143 Allstate Corp. ................................... 8,768
573 Bank of America Corp. ............................ 30,869
181 Bank of New York Co., Inc. ....................... 6,214
220 Chubb Corp. ...................................... 11,696
474 Citigroup, Inc. .................................. 23,751
377 Host Hotels & Resorts, Inc. ...................... 8,701
295 JP Morgan Chase & Co. ............................ 13,990
126 Merrill Lynch & Co., Inc. ........................ 11,003
191 PNC Financial Services Group, Inc. ............... 13,406
99 SunTrust Banks, Inc. ............................. 7,811
298 UBS AG............................................ 17,814
234 US Bancorp........................................ 7,924
102 Wachovia Corp. ................................... 5,670
371 Wells Fargo & Co. ................................ 13,448
--------
189,441
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
HEALTH CARE -- 8.5%
179 Abbott Laboratories............................... $ 8,485
114 AstraZeneca plc ADR............................... 6,668
210 Baxter International, Inc. ....................... 9,638
236 Bristol-Myers Squibb Co. ......................... 5,843
270 Pfizer, Inc. ..................................... 7,193
325 Wyeth............................................. 16,593
--------
54,420
--------
SERVICES -- 2.2%
70 Gannett Co., Inc. ................................ 4,135
87 R.R. Donnelley & Sons Co. ........................ 2,942
181 Waste Management, Inc. ........................... 6,765
--------
13,842
--------
TECHNOLOGY -- 13.6%
778 AT&T, Inc. ....................................... 26,638
262 BellSouth Corp. .................................. 11,837
154 Chunghwa Telecom Co., Ltd. ADR.................... 2,813
656 General Electric Co. ............................. 23,032
197 Sprint Nextel Corp. .............................. 3,682
556 Taiwan Semiconductor Manufacturing Co., Ltd.
ADR............................................. 5,388
297 Verizon Communications, Inc. ..................... 10,999
110 Vodafone Group plc ADR............................ 2,848
--------
87,237
--------
UTILITIES -- 10.6%
164 American Electric Power Co., Inc. ................ 6,778
141 Consolidated Edison, Inc. ........................ 6,813
177 Dominion Resources, Inc. ......................... 14,303
34 Entergy Corp. .................................... 2,927
144 Exelon Corp. ..................................... 8,925
319 FPL Group, Inc. .................................. 16,276
33 PPL Corp. ........................................ 1,125
125 SCANA Corp. ...................................... 5,011
149 Southern Co. ..................................... 5,411
--------
67,569
--------
Total common stock
(cost $547,801)................................. $632,244
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.8%
REPURCHASE AGREEMENTS -- 1.8%
$2,316 Banc of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 2,316
1,362 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,362
54 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 54
1,090 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 1,090
</Table>
The accompanying notes are an integral part of these financial statements.
131
THE HARTFORD EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- (CONTINUED)
$2,288 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... $ 2,288
1,253 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 1,253
3,079 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 3,079
--------
Total short-term investments
(cost $11,442).................................. $ 11,442
--------
Total investments in securities
(cost $559,243) (C)............................. $643,686
========
</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 7.20% of total net assets at October 31, 2006.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $559,355 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $89,372
Unrealized depreciation......................... (5,041)
-------
Net unrealized appreciation..................... $84,331
=======
</Table>
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
132
THE HARTFORD FLOATING RATE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 0.2%
FINANCE -- 0.2%
$ 2,000 CS First Boston Mortgage Securities Corp.,
7.02%, 11/15/2019 (I)(L)........................ $ 1,964
1,800 CS First Boston Mortgage Securities Corp.,
7.27%, 11/15/2019 (I)(L)........................ 1,761
1,500 Lehman Brothers Commercial Mortgage Trust,
6.98%, 07/15/2018 (I)(L)........................ 1,503
----------
Total asset & commercial
mortgage backed securities
(cost $5,279)................................... $ 5,228
----------
CORPORATE BONDS: INVESTMENT GRADE -- 0.4%
SERVICES -- 0.4%
$ 2,500 Service Corp. International -- Series A,
7.36%, 11/14/2011 (L)(Q)(H)..................... $ 2,500
8,000 Service Corp. International -- Series B,
7.36%, 11/14/2011 (L)(Q)(H)..................... 8,000
----------
Total corporate bonds: investment grade
(cost $10,500).................................. $ 10,500
----------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 7.9%
BASIC MATERIALS -- 2.5%
$ 11,000 Abitibi-Consolidated, Inc.,
8.89%, 06/15/2011 (L)........................... $ 10,615
2,000 Ainsworth Lumber Co. Ltd.,
9.12%, 10/01/2010 (L)........................... 1,590
3,000 Ainsworth Lumber Co. Ltd.,
9.37%, 04/01/2013 (L)........................... 2,280
12,000 Bowater, Inc.,
8.39%, 03/15/2010 (L)........................... 12,120
1,000 Equistar Chemicals L.P.,
8.75%, 02/15/2009............................... 1,040
1,000 Equistar Chemicals L.P.,
10.63%, 05/01/2011.............................. 1,070
9,055 Lyondell Chemical Co.,
11.13%, 07/15/2012.............................. 9,802
1,500 MacDermid, Inc.,
9.13%, 07/15/2011............................... 1,568
9,195 Nova Chemicals Corp.,
8.40%, 11/15/2013 (L)........................... 9,356
2,500 OM Group, Inc.,
9.25%, 12/15/2011............................... 2,606
5,220 Playtex Products, Inc.,
9.38%, 06/01/2011............................... 5,429
4,000 United States Steel Corp.,
9.75%, 05/15/2010............................... 4,255
----------
61,731
----------
CONSUMER CYCLICAL -- 1.2%
7,000 Amerigas Partners L.P.,
7.25%, 05/20/2015............................... 6,983
5,115 Autonation, Inc.,
7.37%, 04/15/2013 (L)........................... 5,153
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
CONSUMER CYCLICAL -- (CONTINUED)
$ 2,550 Builders FirstSource, Inc.,
9.65%, 02/15/2012 (L)........................... $ 2,505
2,000 GSC Holdings Corp.,
9.25%, 10/01/2011 (L)........................... 2,080
8,500 Levi Strauss & Co.,
10.12%, 04/01/2012 (L).......................... 8,766
5,000 Stater Brothers Holdings, Inc.,
8.89%, 06/15/2010 (L)........................... 5,025
----------
30,512
----------
CONSUMER STAPLES -- 0.6%
4,001 Land O'Lakes, Inc.,
8.75%, 11/15/2011............................... 4,156
3,745 Nutro Products, Inc.,
9.40%, 10/15/2013 (I)(L)........................ 3,848
5,900 Pilgrim's Pride Corp.,
9.63%, 09/15/2011............................... 6,180
----------
14,184
----------
FINANCE -- 0.4%
4,000 Crescent Real Estate Equities L.P.,
9.25%, 04/15/2009............................... 4,120
2,000 Ford Motor Credit Co.,
8.47%, 11/02/2007 (L)........................... 2,028
2,590 Ford Motor Credit Co.,
9.82%, 04/15/2012 (L)........................... 2,701
----------
8,849
----------
SERVICES -- 0.9%
3,000 Aztar Corp.,
9.00%, 08/15/2011............................... 3,131
10,500 Cablevision Systems Corp.,
9.87%, 04/01/2009 (L)........................... 10,999
1,500 Primedia, Inc.,
10.78%, 05/15/2010 (L).......................... 1,553
3,000 Time Warner Telecom Holdings, Inc.,
9.41%, 02/15/2011 (L)........................... 3,060
4,700 Unisys Corp.,
7.88%, 04/01/2008............................... 4,700
----------
23,443
----------
TECHNOLOGY -- 2.2%
8,000 American Cellular Corp.,
10.00%, 08/01/2011.............................. 8,400
7,000 Centennial Communications Corp.,
11.12%, 01/01/2013 (L).......................... 7,280
2,000 Dobson Cellular Systems,
8.38%, 11/01/2011............................... 2,078
7,000 Dobson Communications Corp.,
9.62%, 10/15/2012 (L)........................... 7,105
13,040 NXP B.V.,
8.12%, 10/15/2013 (I)(L)........................ 13,154
2,900 Qwest Communications International, Inc.,
8.90%, 02/15/2009 (L)........................... 2,947
2,390 Qwest Corp.,
8.64%, 06/15/2013 (L)........................... 2,575
</Table>
The accompanying notes are an integral part of these financial statements.
133
THE HARTFORD FLOATING RATE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
$ 4,000 Rogers Wireless, Inc.,
8.52%, 12/15/2010 (L)........................... $ 4,085
6,500 Rural Cellular Corp.,
11.24%, 11/01/2012 (L).......................... 6,744
----------
54,368
----------
UTILITIES -- 0.1%
3,000 Calpine Generating Co. LLC,
9.07%, 04/01/2009 (L)(F)(H)..................... 3,083
----------
Total corporate bonds: non-investment grade
(cost $196,778)................................. $ 196,170
----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- 90.6%
BASIC MATERIALS -- 12.0%
$ 125 Basell Finance Co., Term Loan B4,
7.60%, 09/15/2013 (N)........................... $ 126
625 Basell Finance Co., Term Loan C2,
7.60%, 09/15/2013 (N)........................... 631
125 Basell Finance Co., Term Loan B2,
8.35%, 09/15/2013 (N)........................... 126
625 Basell Finance Co., Term Loan C4,
8.35%, 09/15/2013 (N)........................... 631
4,000 Berry Plastics Corp.,
7.12%, 09/05/2013 (N)........................... 4,000
4,963 Blount, Inc.,
7.03%, 06/09/2010 (N)........................... 4,967
1,000 Brenntag AG,
12.08%, 12/22/2012 (N).......................... 1,024
196 Brenntag Group, Second Lien Term Loan,
7.97%, 01/12/2014 (N)........................... 197
804 Brenntag Group, Term Loan B2,
7.97%, 01/12/2014 (N)........................... 811
1,667 Calumet Lubricants Co. L.P.,
8.68%, 12/01/2012 (N)........................... 1,667
1,654 Calumet Lubricants Co. L.P.,
8.81%, 12/01/2012 (N)........................... 1,654
3,718 Celanese Holdings LLC,
7.33%, 04/06/2011 (N)........................... 3,738
988 Coffeyville Resources,
7.63%, 07/05/2012 (N)........................... 992
3,997 Coffeyville Resources,
11.77%, 07/08/2013 (N).......................... 4,110
4,000 Columbian Chemicals Co.,
7.08%, 03/15/2013 (N)........................... 3,995
7,514 Compass Minerals Group, Inc.,
6.87%, 12/22/2012 (N)........................... 7,508
6,484 Covalence Specialty Materials Corp.,
7.38%, 05/18/2013 (N)........................... 6,484
6,000 Covalence Specialty Materials Corp.,
8.54%, 02/10/2013 (N)........................... 6,068
10,094 Eastman Kodak Co.,
7.60%, 10/19/2012 (N)(Q)........................ 10,102
</Table>
<Table>
<Caption>
PRINCIPAL Market
AMOUNT (B) Value (W)
- ----------- ----------
BASIC MATERIALS -- (CONTINUED)
$ 5,995 Eastman Kodak Co.,
7.64%, 10/19/2012 (N)(Q)........................ $ 6,000
8,500 Georgia Gulf Corp.,
7.32%, 09/01/2013 (N)........................... 8,540
22,867 Georgia-Pacific Corp.,
7.36%, 02/14/2013 (N)........................... 22,977
7,500 Georgia-Pacific Corp.,
8.33%, 02/14/2014 (N)........................... 7,587
1,000 Goodyear Tire & Rubber,
6.97%, 04/30/2010 (N)........................... 1,001
7,000 Goodyear Tire & Rubber,
8.08%, 04/30/2010 (N)........................... 7,049
2,500 Goodyear Tire & Rubber,
8.86%, 04/30/2010 (N)........................... 2,528
995 Graham Packaging Co. L.P.,
7.60%, 10/07/2011 (N)........................... 1,001
5,957 Graham Packaging Co. L.P.,
7.67%, 10/07/2011 (N)........................... 5,984
2,500 Graham Packaging Co. L.P.,
9.51%, 04/07/2012 (N)........................... 2,511
1,915 Graphic Packaging,
7.78%, 08/08/2010 (N)........................... 1,935
16,736 Hexion Specialty Chemicals, Term Loan C1,
7.40%, 05/15/2013 (N)(Q)........................ 16,677
3,636 Hexion Specialty Chemicals, Term Loan C2,
7.40%, 05/15/2013 (N)(Q)........................ 3,631
30,426 Huntsman International, Inc.,
7.06%, 08/16/2012 (N)........................... 30,399
EUR 500 Ineos Group Holdings plc,
5.48%, 02/01/2013 (N)........................... 648
5,250 Ineos Group,
7.58%, 02/01/2013 (N)........................... 5,303
5,250 Ineos Group,
8.07%, 02/01/2013 (N)........................... 5,306
881 Innophos, Inc.,
7.51%, 08/01/2010 (N)........................... 883
1,920 Intertape Polymer Group, Inc.,
7.64%, 07/28/2011 (AA)(Q)....................... 1,933
20,781 ISP Chemco, Inc.,
7.43%, 02/16/2013 (N)........................... 20,833
16,141 Jarden Corp.,
7.10%, 01/24/2012 (N)........................... 16,108
2,316 Jarden Corp.,
7.14%, 01/24/2012 (N)........................... 2,311
8,370 Jarden Corp.,
7.35%, 01/24/2012 (N)........................... 8,378
2,000 Kranson Industries,
8.17%, 07/31/2013 (N)........................... 2,008
8,500 Lyondell Chemical Co.,
7.11%, 08/16/2013 (N)........................... 8,537
988 Mega Bloks, Inc.,
7.19%, 07/26/2012 (N)........................... 989
1,512 Mueller Group, Inc.,
7.31%, 10/31/2012 (N)........................... 1,517
10,706 Nalco Co.,
7.15%, 11/04/2010 (N)........................... 10,725
</Table>
The accompanying notes are an integral part of these financial statements.
134
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
BASIC MATERIALS -- (CONTINUED)
$ 2,425 NCI Building Systems, Inc.,
6.82%, 06/18/2010 (N)........................... $ 2,422
990 PQ Corp.,
7.38%, 02/11/2012 (N)........................... 992
206 Resources Services Holdings USA, Inc., Canadian
Term Loan,
8.57%, 10/18/2012 (N)........................... 206
2,073 Resources Services Holdings USA, Inc., US Term
Loan,
8.57%, 10/18/2012 (N)........................... 2,080
222 Resources Services Holdings USA, Inc.,
8.63%, 10/18/2012 (N)........................... 222
438 Smurfit-Stone Container Enterprises, Inc.,
7.42%, 11/01/2010 (N)........................... 440
2,405 Smurfit-Stone Container Enterprises, Inc.,
7.52%, 11/01/2010 (N)........................... 2,418
1,063 Smurfit-Stone Container Enterprises, Inc., Term
Loan C,
7.58%, 11/01/2011 (N)........................... 1,069
2,377 Smurfit-Stone Container Enterprises, Inc., Term
Loan C1,
7.58%, 11/01/2011 (N)........................... 2,390
10,694 Solo Cup Co.,
8.54%, 02/27/2011 (N)........................... 10,740
2,500 Solo Cup Co.,
11.19%, 03/31/2012 (N).......................... 2,563
9,842 Tupperware Corp.,
6.89%, 11/07/2012 (N)........................... 9,778
----------
297,450
----------
CAPITAL GOODS -- 2.5%
5,239 ACCO Brands Corp.,
7.06%, 08/15/2012 (N)........................... 5,251
2,000 Babcock & Wilcox Co., Delayed Draw Term Loan,
8.12%, 02/14/2012 (AA)(Q)....................... 2,000
1,000 Babcock & Wilcox Co., Synthetic Letter of Credit,
8.12%, 02/14/2012 (N)........................... 1,005
3,000 BE Aerospace, Inc.,
7.76%, 08/22/2012 (N)........................... 3,015
6,439 Bluegrass Container Corp.,
10.29%, 06/29/2013 (N).......................... 6,504
2,061 Bluegrass Container Corp.,
10.32%, 06/29/2013 (N).......................... 2,081
2,297 Bluegrass Container Corp., First Lien Term Loan,
7.60%, 06/29/2013 (N)........................... 2,315
7,678 Bluegrass Container Corp., Second Lien,
7.60%, 06/29/2013 (N)........................... 7,743
1,500 Carl Zeiss Vision,
8.61%, 04/13/2014 (N)........................... 1,500
2,000 Carl Zeiss Vision,
10.67%, 06/15/2014 (N).......................... 2,028
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
CAPITAL GOODS -- (CONTINUED)
$ 694 Invensys International Holdings,
7.33%, 01/15/2011 (N)........................... $ 697
556 Invensys International Holdings,
7.45%, 12/15/2010 (N)........................... 558
3,477 K & F Industries, Inc.,
7.31%, 11/18/2012 (N)........................... 3,490
1,481 Mid-Western Aircraft Systems, Inc.,
7.57%, 12/31/2011 (N)........................... 1,492
5,985 Nacco Material Handling Group,
7.35%, 03/22/2013 (N)........................... 5,963
3,292 Primus International, Inc.,
7.39%, 06/07/2012 (N)........................... 3,300
1,971 Targus Group International,
8.30%, 11/22/2012 (N)........................... 1,922
4,000 TransDigm, Inc.,
7.36%, 06/23/2013 (N)........................... 4,033
3,687 Unifrax Corp.,
7.61%, 05/02/2013 (N)........................... 3,684
1,734 Visant Holding Corp.,
7.02%, 10/04/2011 (N)........................... 1,740
1,995 Vought Aircraft Industries, Inc.,
7.83%, 12/22/2011 (N)........................... 2,004
2,000 Wesco Aircraft Hardware Corp.,
7.58%, 09/29/2013 (N)........................... 2,012
----------
64,337
----------
CONSUMER CYCLICAL -- 11.3%
3,000 Accuride Corp.,
7.43%, 01/31/2012 (N)(Q)........................ 3,004
597 American General LLC,
8.31%, 09/01/2013 (N)........................... 601
17,903 American General LLC,
8.34%, 09/01/2013 (N)........................... 17,993
4,000 Armstrong World Industries, Inc.,
7.12%, 10/13/2013 (N)........................... 4,000
3,909 Atrium Cos., Inc.,
8.13%, 06/12/2012 (N)........................... 3,822
3,479 Axletech International,
7.59%, 10/20/2012 (N)........................... 3,496
2,000 Axletech International,
11.84%, 04/20/2013 (N).......................... 2,015
1,990 Brand Services, Inc.,
7.61%, 01/15/2012 (N)........................... 1,990
2,500 Brand Services, Inc.,
7.62%, 01/15/2012 (AA)(Q)....................... 2,500
3,980 Burlington Coat Factory Warehouse Corp.,
7.53%, 05/28/2013 (N)........................... 3,918
1,897 Collins & Aikman,
8.43%, 05/17/2007 (F)(N)........................ 1,868
3,966 Contech Construction Products,
7.35%, 01/31/2013 (N)........................... 3,980
1,890 Custom Building Products,
7.56%, 10/20/2011 (N)........................... 1,893
18,000 Dana Corp.,
7.64%, 03/03/2008 (F)(N)........................ 17,970
</Table>
The accompanying notes are an integral part of these financial statements.
135
THE HARTFORD FLOATING RATE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
CONSUMER CYCLICAL -- (CONTINUED)
$ 3,000 Delphi Corp.,
8.07%, 10/08/2007 (F)(N)........................ $ 3,056
5,970 Dollarama Group, L.P.,
7.38%, 11/18/2011 (N)........................... 5,977
6,458 Easton-Bell Sports, Inc.,
7.12%, 03/16/2012 (N)........................... 6,463
2,750 Federal-Mogul Corp.,
7.38%, 12/09/2006 (F)(N)........................ 2,748
4,500 Foster Wheeler LLC,
7.37%, 09/12/2011 (N)........................... 4,511
5,500 Hanesbrands, Inc.,
7.68%, 09/05/2013 (N)........................... 5,543
1,000 Hanesbrands, Inc.,
9.71%, 09/05/2007 (N)........................... 999
3,474 Invista B.V.,
6.88%, 04/30/2010 (N)........................... 3,454
2,050 Invista B.V.,
6.91%, 04/30/2010 (AA)(Q)....................... 2,038
14,763 Jean Coutu Group,
7.87%, 07/30/2011 (N)........................... 14,798
10,000 Lear Corp.,
7.87%, 04/25/2012 (N)........................... 9,927
2,000 Mark IV Industries, Inc.,
11.28%, 12/31/2011 (N).......................... 2,038
5,453 Masonite International Corp., Canadian Term Loan,
7.43%, 04/30/2010 (N)........................... 5,332
5,462 Masonite International Corp., US Term Loan,
7.43%, 04/30/2010 (N)........................... 5,335
4,000 Masonite International Corp.,
11.17%, 10/11/2011 (N).......................... 3,717
6,000 Michaels Stores, Inc.,
8.38%, 10/30/2012 (AA).......................... 6,075
7,272 Neiman Marcus Group,
7.59%, 04/06/2013 (N)........................... 7,326
5,927 Nortek, Inc.,
7.27%, 08/27/2011 (N)........................... 5,935
6,000 Petco Animal Supplies, Inc,
8.07%, 10/25/2013 (N)(Q)........................ 6,030
2,993 Pro-Build Holdings, Inc.,
7.12%, 06/21/2013 (N)........................... 2,983
6,500 RJ Tower Corp.,
9.16%, 02/02/2007 (F)(N)(Q)..................... 6,297
4,000 Radio Systems Corp.,
8.09%, 10/31/2013 (AA)(Q)....................... 4,025
5,459 Roundy's Supermarkets, Inc.,
8.41%, 11/03/2011 (N)........................... 5,490
5,760 Sonic Corp.,
7.32%, 09/06/2013 (N)........................... 5,772
5,990 Sports Authority, Inc.,
7.63%, 04/25/2013 (N)(Q)........................ 5,955
4,500 Standard Pacific Corp.,
6.92%, 04/25/2013 (N)........................... 4,404
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
CONSUMER CYCLICAL -- (CONTINUED)
$ 333 Standard Steel LLC,
7.87%, 07/10/2012 (AA)(Q)....................... $ 336
1,663 Standard Steel LLC,
8.09%, 07/10/2012 (N)........................... 1,675
1,413 Supervalu, Inc.,
6.95%, 06/01/2011 (N)........................... 1,405
26,882 Supervalu, Inc.,
7.19%, 05/30/2013 (N)........................... 26,952
3,475 Tensar Corp.,
8.13%, 10/28/2012 (N)........................... 3,492
21,500 Toys R Us, Inc.,
8.34%, 11/30/2008 (N)(Q)........................ 21,527
3,474 TRW Automotive,
6.81%, 06/30/2012 (N)........................... 3,465
3,979 United Subcontractors, Inc.,
8.36%, 12/27/2012 (N)........................... 3,859
13,898 William Carter Co.,
6.86%, 07/14/2012 (N)........................... 13,874
----------
281,863
----------
CONSUMER STAPLES -- 4.0%
2,544 Agricore United, Term Loan,
7.19%, 08/04/2013 (N)........................... 2,544
1,449 Agricore United, Term Loan,
7.19%, 08/04/2013 (N)........................... 1,449
14,592 American Seafoods Group,
7.11%, 09/30/2012 (N)(Q)........................ 14,574
1,330 American Seafoods Group,
7.12%, 09/30/2011 (N)........................... 1,329
1,319 Birds Eye Foods, Inc.,
8.01%, 08/18/2008 (N)........................... 1,322
15,422 Chiquita Brands International,
7.57%, 06/28/2012 (N)........................... 15,390
195 Chiquita Brands International,
7.58%, 06/28/2012 (N)........................... 194
6,081 Commonwealth Brands, Inc.,
7.64%, 12/22/2012 (N)........................... 6,116
2,500 Constellation Brands, Inc.,
6.93%, 06/05/2013 (N)........................... 2,511
3,982 Del Monte Corp.,
6.95%, 02/08/2012 (N)........................... 3,989
1,583 Dole Food Co.,
7.26%, 04/12/2013 (N)........................... 1,570
11,811 Dole Food Co.,
7.49%, 04/12/2013 (N)........................... 11,715
3,543 Dole Food Co.,
7.57%, 04/12/2013 (N)........................... 3,504
381 Johnson Diversey, Inc.,
7.83%, 12/16/2010 (N)........................... 382
2,314 Johnson Diversey, Inc.,
7.90%, 12/16/2011 (N)........................... 2,332
6,994 Michael Foods, Inc.,
7.53%, 11/21/2010 (N)........................... 7,029
3,096 New Page Corp.,
8.29%, 05/02/2011 (N)........................... 3,112
</Table>
The accompanying notes are an integral part of these financial statements.
136
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
CONSUMER STAPLES -- (CONTINUED)
$ 5,567 Nutro Products, Inc.,
7.34%, 04/21/2013 (N)........................... $ 5,567
473 Otis Spunkmeyer, Inc.,
10.00%, 08/26/2012 (N).......................... 473
1,154 Pierre Foods, Inc.,
7.47%, 06/30/2010 (N)........................... 1,156
9,975 Reynolds American, Inc.,
7.28%, 05/31/2012 (N)........................... 10,025
2,993 United Agri Products, Inc.,
7.37%, 06/01/2012 (N)........................... 2,993
----------
99,276
----------
ENERGY -- 1.7%
2,763 Citgo Petroleum Corp.,
6.68%, 11/14/2012 (N)........................... 2,757
7,980 Helix Energy Solutions Group, Inc.,
7.44%, 05/31/2013 (N)........................... 7,984
1,291 Magellan Midstream Holdings L.P.,
7.33%, 07/31/2012 (N)........................... 1,295
1,750 MEG Energy Corp., Delayed Draw Term Loan,
7.38%, 04/03/2013 (N)(Q)........................ 1,736
1,741 MEG Energy Corp., Term Loan B,
7.38%, 04/03/2013 (N)........................... 1,744
793 NE Energy, Inc., Letter of Credit,
7.87%, 10/19/2013 (AA)(Q)....................... 799
6,707 NE Energy, Inc., Term Loan B,
7.87%, 10/19/2013 (AA)(Q)....................... 6,760
3,317 Niska Gas Storage LLC,
7.08%, 05/03/2013 (N)........................... 3,313
424 Niska Gas Storage LLC,
7.12%, 05/03/2013 (AA)(Q)....................... 423
606 Niska Gas Storage LLC, Asset Sale,
7.14%, 05/03/2013 (N)........................... 605
633 Niska Gas Storage LLC, US Term Loan,
7.14%, 05/03/2013 (N)........................... 632
1,164 Targa Resources, Inc.,
7.47%, 10/31/2012 (N)........................... 1,169
4,801 Targa Resources, Inc.,
7.61%, 10/31/2012 (N)........................... 4,823
2,000 Texas Petrochemicals LP,
7.89%, 06/27/2013 (N)........................... 2,013
5,985 Texas Petrochemicals LP,
7.90%, 06/27/2013 (N)........................... 6,022
----------
42,075
----------
FINANCE -- 6.5%
1,900 Ameritrade Holding Corp.,
6.55%, 12/31/2011 (N)........................... 1,900
5,330 Ameritrade Holding Corp.,
6.82%, 12/31/2011 (N)........................... 5,326
8,000 Ashtead Group plc,
7.14%, 08/21/2011 (N)........................... 7,993
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
FINANCE -- (CONTINUED)
$ 9,634 Avis Budget Car Rental LLC,
6.64%, 04/19/2012 (N)........................... $ 9,587
4,000 BNY Convergex Group LLC & EZE Castle Software,
8.38%, 08/30/2013 (N)........................... 4,001
1,000 BNY Convergex Group LLC & EZE Castle Software,
12.13%, 08/30/2013 (N).......................... 1,003
3,980 Buckeye Check Cashing, Inc.,
8.11%, 05/01/2012 (N)........................... 3,975
7,814 Capital Automotive L.P.,
7.07%, 12/20/2010 (N)........................... 7,838
5,500 Conseco, Inc.,
7.32%, 10/04/2013 (N)........................... 5,505
3,500 Dollar Financial Corp.,
8.12%, 10/30/2012 (AA).......................... 3,509
3,500 FSB Holdings, Inc.,
7.84%, 09/29/2013 (N)........................... 3,518
500 FSB Holdings, Inc.,
11.13%, 03/29/2014 (N).......................... 503
21,500 General Growth Properties,
6.59%, 02/24/2010 (N)(Q)........................ 21,337
683 Ginn Club and Resorts,
8.37%, 06/07/2013 (N)........................... 608
314 Ginn-LA CS Borrower LLC & Ginn-LA Conduit Lender,
8.37%, 06/07/2013 (N)........................... 267
4,975 Golden Gate National,
8.08%, 03/14/2011 (N)........................... 5,012
556 Hertz Corp.,
7.60%, 12/21/2012 (N)........................... 560
4,414 Hertz Corp.,
7.61%, 12/21/2012 (N)........................... 4,445
723 Lion Gables Realty L.P.,
7.07%, 03/30/2007 (N)........................... 723
15,000 LNR Properties Corp.,
8.17%, 06/29/2011 (N)........................... 15,030
6,000 LNR Properties Corp.,
8.20%, 06/29/2009 (N)........................... 6,000
2,494 Mattamy Funding Partnership,
7.69%, 04/11/2013 (N)........................... 2,481
2,162 Nasdaq Stock Market, Inc.,
7.06%, 05/22/2012 (N)........................... 2,164
3,730 Nasdaq Stock Market, Inc.,
7.07%, 05/22/2012 (N)........................... 3,731
4,078 Newkirk Master L.P., NMLP,
7.04%, 08/10/2012 (N)........................... 4,072
3,184 Newkirk Master L.P., T-Two,
7.04%, 08/10/2012 (N)........................... 3,180
1,990 November Land Investors LLC,
8.12%, 05/01/2011 (N)........................... 1,910
2,500 November Land Investors LLC,
12.23%, 05/09/2012 (N).......................... 2,400
5,000 Rent-A-Center, Inc.,
7.12%, 10/26/2012 (AA)(Q)....................... 5,011
</Table>
The accompanying notes are an integral part of these financial statements.
137
THE HARTFORD FLOATING RATE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
FINANCE -- (CONTINUED)
$ 7,940 Sedgwick CMS Holdings, Inc.,
7.61%, 01/31/2013 (N)........................... $ 7,940
5,000 TE/TOUSA Senior, LLC,
8.21%, 08/01/2012 (N)........................... 3,825
1,347 United Rentals, Inc.,
7.27%, 02/14/2011 (N)........................... 1,349
2,978 United Rentals, Inc.,
7.28%, 02/14/2011 (N)........................... 2,988
11,220 Vanguard Car Rental USA Holdings, Inc.,
8.35%, 06/08/2013 (N)........................... 11,293
----------
160,984
----------
HEALTH CARE -- 9.7%
5,408 AGA Medical Corp.,
7.72%, 04/26/2013 (N)........................... 5,405
975 Alliance Imaging, Inc.,
7.94%, 12/29/2011 (N)........................... 976
8,467 Ameripath, Inc.,
7.37%, 10/31/2013 (N)........................... 8,470
986 Center for Diagnostic Imaging,
9.30%, 12/31/2010 (N)........................... 942
5,980 Community Health Systems,
7.14%, 08/19/2011 (N)........................... 5,975
2,443 Concerntra,
7.59%, 09/30/2011 (N)........................... 2,453
7,631 DJ Orthopedics LLC,
6.87%, 04/07/2013 (N)........................... 7,608
3,000 Encore Medical Finance LLC,
7.87%, 10/30/2013 (AA)(Q)....................... 3,004
31,362 Fresenius Medical Care AG,
6.76%, 03/23/2012 (N)........................... 31,116
6,481 Hanger Orthopedic Group,
7.84%, 05/25/2013 (N)(Q)........................ 6,503
8,000 HCA, Inc.,
9.37%, 09/15/2007 (AA)(Q)....................... 7,920
5,714 Healthcare Partners LLC,
7.37%, 10/20/2013 (AA).......................... 5,732
20,948 Healthsouth Corp.,
8.59%, 03/07/2013 (N)........................... 21,021
16,740 Lifepoint Hospitals, Inc.,
6.94%, 04/15/2012 (N)(Q)........................ 16,666
8,629 Multiplan Corp.,
7.59%, 04/13/2013 (N)........................... 8,615
3,000 Multiplan Corp.,
7.85%, 04/12/2013 (N)........................... 2,993
115 National Mentor,
7.84%, 06/27/2013 (N)........................... 115
1,880 National Mentor,
7.87%, 06/27/2013 (N)........................... 1,883
9,975 National Renal Institutes, Inc.,
7.55%, 03/31/2013 (N)........................... 9,969
10,500 Orthofix Holdings, Inc.,
7.12%, 09/22/2013 (N)........................... 10,507
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
HEALTH CARE -- (CONTINUED)
$ 8,970 Quintiles Transnational Corp.,
7.37%, 03/31/2013 (N)(Q)........................ $ 8,966
3,961 Renal Advantage, Inc.,
7.84%, 10/05/2012 (N)........................... 3,986
11,913 Select Medical Corp.,
7.25%, 02/24/2012 (N)(Q)........................ 11,685
1,481 Skilled Healthcare Group, Inc.,
8.07%, 06/15/2012 (N)........................... 1,489
15,900 Spanish Broadcasting System, Inc.,
7.12%, 06/10/2012 (N)........................... 15,880
2,000 Triumph Healthcare,
8.48%, 07/28/2013 (N)........................... 2,006
16,389 Vanguard Health Holdings Co. II LLC,
7.83%, 09/23/2011 (N)........................... 16,420
6,352 Ventiv Health, Inc.,
6.84%, 10/05/2011 (N)........................... 6,312
1,266 Warner Chilcott Corp.,
7.81%, 01/18/2012 (N)........................... 1,269
2,902 Warner Chilcott Corp.,
7.83%, 01/18/2012 (N)........................... 2,902
6,598 Warner Chilcott Corp.,
7.89%, 01/18/2012 (N)........................... 6,613
161 Warner Chilcott Corp-Dovobe,
7.80%, 07/18/2012 (N)........................... 161
3,000 Waterpik Technologies, Inc.,
11.89%, 10/12/2013 (N).......................... 3,030
2,494 Youth & Family Centered Services, Inc.,
8.30%, 07/10/2013 (N)........................... 2,494
----------
241,086
----------
SERVICES -- 23.7%
2,990 24 Hour Fitness Worldwide, Inc.,
7.82%, 06/08/2012 (N)........................... 3,011
4,500 Acosta, Inc.,
8.08%, 12/06/2012 (N)........................... 4,539
7,500 Acxiom Corp.,
7.18%, 09/13/2012 (N)........................... 7,533
10,911 Advantage Sales & Marketing, Inc.,
7.45%, 03/31/2013 (N)........................... 10,861
3,970 Affiliated Computer Services, Inc.,
7.39%, 03/20/2013 (N)........................... 3,976
8,978 Affiliated Computer Services, Inc.,
7.40%, 03/20/2013 (N)........................... 8,989
16,013 Affinion Group,
8.15%, 10/07/2012 (N)(Q)........................ 16,066
3,000 Alixpartners LLP,
7.88%, 10/11/2013 (N)........................... 3,015
1,990 Alliance,
6.88%, 12/20/2011 (N)........................... 1,987
9,384 Allied Waste,
7.05%, 01/15/2012 (N)........................... 9,382
22,111 Allied Waste,
7.14%, 01/15/2012 (N)........................... 22,100
5,960 AMC Entertainment, Inc.,
7.39%, 01/26/2013 (N)........................... 6,003
</Table>
The accompanying notes are an integral part of these financial statements.
138
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
SERVICES -- (CONTINUED)
$ 4,964 American Gaming Systems,
10.12%, 06/21/2013 (H)(N)....................... $ 4,964
1,244 Black Press, Ltd.,
7.50%, 08/02/2013 (N)........................... 1,252
756 Black Press, Ltd.,
7.71%, 08/02/2013 (N)........................... 760
19,000 Bresnan Communications LLC,
7.16%, 09/29/2013 (N)........................... 18,962
7,733 Carmike Cinemas, Inc.,
8.60%, 05/19/2012 (N)........................... 7,788
2,181 Carmike Cinemas, Inc.,
8.62%, 09/29/2011 (N)........................... 2,203
2,000 Casella Waste Systems, Inc.,
7.46%, 04/28/2010 (N)........................... 2,003
3,466 CCM Merger, Inc.,
7.34%, 08/01/2012 (N)........................... 3,462
12,500 Cebridge Communications LLC,
7.63%, 11/05/2013 (N)........................... 12,478
7,000 Cebridge Communications LLC,
10.19%, 05/05/2014 (N)(Q)....................... 6,958
19,950 Cedar Fair L.P.,
7.86%, 07/21/2013 (N)........................... 20,156
6,988 Cedar Fair L.P.,
9.71%, 07/21/2013 (N)........................... 7,009
3,500 Cinemark, Inc.,
7.32%, 10/04/2013 (N)........................... 3,522
15,164 CMP Susquehanna Corp.,
7.40%, 03/24/2013 (N)........................... 15,193
5,482 Coinmach Corp.,
7.85%, 12/16/2010 (N)........................... 5,521
2,000 CSC Holdings, Inc.,
6.64%, 02/24/2012 (N)........................... 1,992
22,932 CSC Holdings, Inc.,
7.16%, 03/24/2013 (N)(Q)........................ 22,910
16,958 Cumulus Media, Inc.,
7.45%, 06/07/2013 (N)........................... 17,028
1,869 Dex Media West LLC,
6.88%, 03/09/2010 (N)........................... 1,860
408 Dex Media West LLC,
6.91%, 03/09/2010 (N)........................... 406
497 Dyncorp International LLC,
8.00%, 02/11/2011 (N)........................... 499
4,000 Emmis Operating Company,
7.36%, 10/30/2013 (AA)(Q)....................... 4,009
63 Energy Solutions, LLC,
7.57%, 06/07/2013 (N)........................... 63
1,321 Energy Solutions, LLC, Term Loan B,
7.76%, 06/07/2013 (N)........................... 1,331
599 Energy Solutions, LLC, Term Loan B2,
7.76%, 06/07/2013 (N)........................... 604
3,148 F & W Publications, Inc.,
8.44%, 08/05/2012 (N)........................... 3,156
3,250 Fender Musical Instrument Group,
11.25%, 09/30/2012 (N).......................... 3,274
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SERVICES -- (CONTINUED)
$ 1,798 Fidelity National Information Solutions, Inc.,
6.56%, 03/09/2013 (N)........................... $ 1,790
6,424 Fidelity National Information Services, Inc.,
7.06%, 03/09/2013 (N)........................... 6,436
2,000 Frontiervision Operating Partners, L.P.,
9.77%, 12/19/2006 (F)(N)........................ 1,982
19,468 Gatehouse Media Operating, Inc.,
7.57%, 12/05/2013 (N)........................... 19,468
3,479 Gray Television, Inc.,
6.87%, 11/22/2012 (N)........................... 3,472
496 Gray Television, Inc.,
6.88%, 05/22/2013 (N)........................... 496
4,000 Greektown Holdings LLC,
7.86%, 12/01/2012 (N)........................... 4,025
5,500 Hallmark Entertainment LLC,
8.32%, 12/31/2011 (N)........................... 5,493
1,704 Hilton Hotels Corp.,
6.72%, 02/14/2013 (N)........................... 1,703
990 Hit Entertainment, Inc.,
7.62%, 08/26/2012 (N)........................... 994
3,755 Isle of Capri Black Hawk LLC,
7.36%, 10/24/2011 (N)........................... 3,755
7,357 Lake at Las Vegas Joint Venture LLC,
8.23%, 02/01/2010 (N)........................... 7,092
7,219 LBI Media, Inc.,
6.77%, 05/01/2012 (N)........................... 7,110
3,000 Mediassets, Inc.,
7.82%, 10/05/2013 (N)........................... 3,004
3,990 Medianews Groups, Inc.,
7.07%, 08/02/2013 (N)........................... 3,990
8,666 MGM Holdings II, Inc.,
8.59%, 04/08/2012 (N)........................... 8,561
1,463 MGM Holdings II, Inc.,
8.69%, 04/08/2011 (N)........................... 1,445
2,481 Montecito Broadcast Group LLC,
7.82%, 01/25/2013 (N)........................... 2,492
3,000 New Publications, Inc.,
12.58%, 02/05/2013 (N).......................... 3,023
3,000 Newspaper Holdings, Inc.,
6.64%, 08/24/2012 (N)........................... 2,978
4,468 Opbiz LLC,
8.34%, 08/31/2010 (N)........................... 4,357
8 Opbiz LLC,
9.30%, 08/31/2010 (N)(Q)........................ 8
1,980 PBI Media, Inc.,
7.57%, 09/30/2012 (N)........................... 1,974
3,000 PBI Media, Inc.,
11.31%, 09/30/2013 (N).......................... 3,004
1,980 Penn National Gaming, Inc.,
7.13%, 07/05/2012 (N)........................... 1,988
2,213 Per-Se Technologies, Inc.,
7.57%, 01/05/2013 (N)........................... 2,222
1,915 Persona Communications Corp.,
6.07%, 10/11/2013 (N)(Q)........................ 1,925
</Table>
The accompanying notes are an integral part of these financial statements.
139
THE HARTFORD FLOATING RATE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
SERVICES -- (CONTINUED)
$ 3,085 Persona Communications Corp.,
8.12%, 10/11/2013 (N)........................... $ 3,100
3,500 Persona Communications Corp.,
11.37%, 04/11/2014 (N).......................... 3,500
18,643 Pinnacle Foods,
7.36%, 11/25/2010 (N)........................... 18,661
2,978 Quebecor Media, Inc.,
7.37%, 01/17/2013 (N)........................... 2,991
7,863 Raycom TV Broadcasting, Inc.,
6.88%, 07/27/2013 (N)(Q)........................ 7,804
20,937 Regal Cinemas, Inc.,
7.11%, 11/10/2010 (N)........................... 20,890
16,469 Sensata Technologies,
7.14%, 04/21/2013 (N)........................... 16,358
1,241 SFX Entertainment, Inc.,
7.62%, 06/21/2013 (N)........................... 1,238
1,000 Southern Graphic Systems,
7.87%, 12/30/2011 (AA)(Q)....................... 1,004
1,985 Southern Graphic Systems,
8.06%, 12/30/2011 (N)........................... 1,992
3,000 Southwest Sports Group LLC,
7.82%, 12/22/2010 (N)........................... 2,991
9,902 SunGard Data Systems, Inc.,
7.94%, 08/08/2012 (N)........................... 9,982
6,485 Time Warner Telecom Holdings, Inc.,
7.57%, 07/01/2013 (AA)(Q)....................... 6,515
7,951 U.S. Investigations Services,
7.84%, 10/14/2012 (N)........................... 7,981
989 U.S. Investigations Services, Term Loan C,
7.89%, 10/14/2012 (N)........................... 992
1,000 U.S. Investigations Services, Term Loan D,
7.89%, 10/14/2012 (N)........................... 1,003
3,000 United Site Services, Inc.,
9.71%, 06/29/2013 (N)........................... 2,970
11,000 UPC Financing Partnership,
7.64%, 03/31/2013 (N)........................... 10,999
11,000 UPC Financing Partnership,
7.64%, 12/31/2013 (N)........................... 10,993
2,000 Valley Crest Cos.,
7.82%, 10/04/2013 (N)........................... 2,018
8,291 Venetian Casino Resort LLC, Term B Funded,
7.13%, 06/15/2011 (N)........................... 8,302
1,709 Venetian Casino Resort LLC, Term Loan B,
7.13%, 06/15/2011 (N)........................... 1,708
2,333 Venetian Macau, Ltd.,
8.12%, 04/06/2012 (AA)(Q)....................... 2,328
4,667 Venetian Macau, Ltd.,
8.12%, 04/06/2013 (N)........................... 4,693
3,000 Verso Paper Holdings LLC,
7.25%, 07/28/2013 (N)........................... 3,000
10,000 VTR Global Communications S.A.,
8.37%, 09/20/2014 (H)(N)........................ 9,875
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SERVICES -- (CONTINUED)
$ 2,500 Washington Country Casino Resort LLC,
9.38%, 11/07/2011 (H)(N)........................ $ 2,500
2,000 Wembley, Inc.,
7.91%, 07/18/2011 (N)........................... 2,019
4,500 Wembley, Inc.,
9.67%, 08/15/2012 N (N)......................... 4,562
4,000 Wenner Media LLC,
7.07%, 09/29/2013 (N)........................... 4,020
13,500 West Corp.,
8.12%, 10/23/2013 (AA)(Q)....................... 13,500
12,125 WideOpenWest Finance LLC,
7.66%, 05/01/2013 (N)........................... 12,118
3,000 WideOpenWest Finance LLC,
10.23%, 05/01/2014 (N).......................... 3,022
5,000 Yell Group plc,
7.32%, 02/10/2013 (N)........................... 5,021
2,815 Yonkers Racing Corp.,
8.80%, 08/12/2011 (N)........................... 2,845
1,685 Yonkers Racing Corp.,
8.82%, 08/12/2011 (N)........................... 1,703
----------
586,810
----------
TECHNOLOGY -- 13.0%
10,500 Advanced Micro Devices, Inc.,
7.57%, 10/24/2013 (N)........................... 10,542
1,500 Alaska Communication Systems Holdings, Inc.,
7.08%, 02/01/2012 (N)........................... 1,500
17,320 Alaska Communication Systems Holdings, Inc.,
7.11%, 02/01/2012 (N)........................... 17,316
1,500 American Cellular Corp., Delayed Draw Term Loan,
7.63%, 08/08/2012 (AA)(Q)....................... 1,496
1,500 American Cellular Corp., Term Loan,
7.63%, 08/08/2012 (N)........................... 1,504
6,126 American Reprographics Co. LLC,
7.14%, 12/20/2012 (N)........................... 6,141
6,000 Aspect Software, Inc.,
8.41%, 09/22/2012 (N)........................... 6,017
6,814 Caribe Information Investment, Inc.,
7.60%, 03/29/2013 (N)........................... 6,818
3,000 CCC Information Services Group, Inc.,
7.87%, 02/10/2013 (N)........................... 3,011
2,866 Cellnet Data Systems, Inc.,
8.29%, 04/26/2012 (N)........................... 2,880
24,146 Charter Communications Operating LLC,
7.97%, 04/28/2013 (N)........................... 24,315
5,000 Choice One,
9.38%, 06/27/2012 (N)........................... 5,041
11,161 Cincinnati Bell, Inc.,
6.92%, 08/31/2012 (N)........................... 11,138
11,970 Cinram International,
7.22%, 05/05/2010 (N)........................... 11,883
5,985 Cricket Communications,
8.12%, 06/15/2013 (N)........................... 6,021
</Table>
The accompanying notes are an integral part of these financial statements.
140
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
TECHNOLOGY -- (CONTINUED)
$ 13,965 Crown Castle Operating Co.,
7.65%, 06/01/2014 (N)........................... $ 14,012
2,455 Davita, Inc.,
7.33%, 10/05/2011 (N)........................... 2,453
4,786 Davita, Inc.,
7.40%, 07/07/2012 (N)........................... 4,808
1,995 Electrical Components International Holdings Co.,
7.87%, 05/31/2013 (N)........................... 2,000
11,000 FairPoint Communications, Inc.,
7.12%, 02/08/2012 (N)(Q)........................ 10,979
1,029 Infor Global Solutions, Term Loan,
9.12%, 07/28/2012 (N)........................... 1,036
1,971 Infor Global Solutions, Term Loan,
9.12%, 07/28/2012 (N)........................... 1,985
3,500 Intesat Ltd.,
7.62%, 07/03/2012 (N)........................... 3,519
3,000 IPC Acquisition Corp.,
7.84%, 09/22/2013 (N)(Q)........................ 3,017
13,000 Level 3 Communications, Inc.,
8.37%, 12/01/2011 (N)........................... 13,130
990 Madison River Capital LLC,
7.62%, 07/29/2012 (N)........................... 994
8,496 Mediacom Broadband,
7.07%, 01/31/2015 (N)........................... 8,475
2,500 Mediacom Broadband,
7.38%, 01/31/2015 (N)........................... 2,477
2,000 Mediacom LLC,
6.71%, 09/30/2012 (N)........................... 1,959
9,000 Mediacom LLC,
7.23%, 01/31/2015 (N)........................... 8,990
6,000 National Dover LLC,
7.32%, 09/03/2012 (N)........................... 6,019
22,934 Ntelos, Inc.,
7.56%, 08/24/2011 (N)(Q)........................ 23,005
2,000 Olympus Cable Holding LLC,
10.37%, 09/30/2010 (F)(N)....................... 1,948
12,360 Panamsat Corp.,
7.85%, 01/03/2014 (N)........................... 12,459
3,980 Quality Home Brands Holdings LLC,
8.14%, 12/14/2012 (N)........................... 3,973
14,421 R.H. Donnelley, Inc.,
6.81%, 06/30/2011 (N)(Q)........................ 14,367
12,214 R.H. Donnelley, Inc.,
6.91%, 06/30/2011 (N)(Q)........................ 12,169
10,485 RCN Corp.,
7.28%, 05/30/2013 (N)........................... 10,472
5,000 Reynolds & Reynolds Co.,
7.82%, 10/24/2012 (AA).......................... 5,031
11,500 Sanmina-Sci Corp.,
7.86%, 01/31/2008 (N)(Q)........................ 11,522
7,931 Spectrum Brands, Inc.,
8.35%, 02/06/2012 (N)........................... 7,949
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
TECHNOLOGY -- (CONTINUED)
$ 3,500 VeriFone Holdings, Inc.,
7.12%, 10/30/2013 (AA)(Q)....................... $ 3,498
16,000 Windstream Corp.,
7.12%, 07/17/2013 (N)........................... 16,077
----------
323,946
----------
TRANSPORTATION -- 2.3%
7,500 Delta Air Lines, Inc.,
9.90%, 03/16/2008 (F)(N)........................ 7,637
8,017 Kansas City Southern Railway Co.,
7.11%, 04/28/2013 (N)........................... 8,035
2,781 Kenan Advantage Group,
8.34%, 12/16/2011 (N)........................... 2,801
2,993 Laidlaw International, Inc.,
7.07%, 07/31/2013 (N)........................... 3,015
998 Laidlaw International, Inc.,
7.12%, 07/31/2013 (N)........................... 1,005
14,500 Northwest Airlines,
7.89%, 08/21/2011 (F)(N)........................ 14,527
800 Railamerica,
7.44%, 09/29/2011 (N)........................... 808
3,752 Sirva Worldwide, Inc.,
11.68%, 12/01/2010 (N).......................... 3,494
10,000 U.S. Airways Group, Inc.,
8.84%, 03/31/2011 (N)........................... 10,071
684 United Air Lines, Inc.,
9.13%, 02/01/2012 (N)........................... 695
4,788 United Air Lines, Inc.,
9.25%, 02/01/2012 (N)........................... 4,864
----------
56,952
----------
UTILITIES -- 3.9%
296 Astoria Generating Co. Acquisitions LLC,
7.32%, 02/23/2012 (N)........................... 298
1,503 Astoria Generating Co. Acquisitions LLC,
7.39%, 02/23/2012 (N)........................... 1,510
7,500 Astoria Generating Co. Acquisitions LLC,
9.05%, 08/23/2013 (N)........................... 7,596
1,987 Calpine Corp.,
7.55%, 12/22/2007 (F)(N)........................ 1,995
2,649 Calpine Corp.,
9.37%, 12/22/2007 (F)(N)........................ 2,688
131 Ceh La Paloma Merger Co. LLC,
7.07%, 08/16/2012 (N)........................... 130
60 Ceh La Paloma Merger Co. LLC, Term Loan,
7.12%, 08/16/2012 (N)........................... 60
753 Ceh La Paloma Merger Co. LLC, Term Loan B,
7.12%, 08/16/2012 (N)........................... 749
1,000 Ceh La Paloma Merger Co. LLC,
8.73%, 08/16/2013 (N)........................... 1,009
4,000 Dynegy Holdings, Inc.,
7.07%, 01/31/2012 (N)........................... 4,000
5,000 Dynegy Holdings, Inc.,
7.15%, 01/31/2012 (N)........................... 4,994
</Table>
The accompanying notes are an integral part of these financial statements.
141
THE HARTFORD FLOATING RATE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS NON-INVESTMENT GRADE (V) -- (continued)
UTILITIES -- (CONTINUED)
$ 5,000 El Paso Corp.,
7.22%, 11/23/2009 (N)........................... $ 5,026
1,485 Epco Holdings, Inc.,
7.37%, 08/15/2010 (N)........................... 1,494
119 LSP General Finance Co. LLC, Term Loan,
7.12%, 04/13/2013 (N)........................... 119
2,804 LSP General Finance Co. LLC, First Lien Term Loan,
7.12%, 04/13/2013 (N)........................... 2,799
23,852 Mirant North America LLC,
7.05%, 01/03/2013 (N)........................... 23,799
12,892 NRG Energy, Inc.,
7.32%, 01/27/2013 (N)........................... 12,944
10,977 NRG Energy, Inc.,
7.35%, 01/27/2013 (N)(Q)........................ 11,034
2,871 Pike Electric, Inc.,
6.86%, 07/01/2012 (N)........................... 2,867
1,891 Pike Electric, Inc.,
6.86%, 12/10/2012 (N)........................... 1,889
1,992 Reliant Energy, Inc.,
7.63%, 04/30/2010 (N)........................... 1,992
6,519 Reliant Energy, Inc.,
7.69%, 04/30/2010 (N)........................... 6,512
1,445 Semcrude L.P.,
7.50%, 03/01/2011 (N)........................... 1,449
----------
96,953
----------
Total senior floating rate interests non-
investment grade
(cost $2,255,280)............................... $2,251,732
----------
SENIOR FLOATING RATE INTERESTS INVESTMENT GRADE (V) -- 0.8%
FINANCE -- 0.8%
$ 20,500 Residential Capital Corp.,
6.59%, 07/28/2008 (N)........................... $ 20,372
----------
Total senior floating rate interests investment
grade
(cost $20,435).................................. $ 20,372
----------
Total long-term investments (cost $2,488,272)..... $2,484,002
----------
SHORT-TERM INVESTMENTS -- 3.4%
FINANCE -- 3.4%
$ 20,000 Bank of America Corp.,
5.24%, 11/07/2006............................... $ 19,980
20,000 Barton Capital Corp.,
5.26%, 11/03/2006............................... 19,991
20,000 Bear Stearns Co.,
5.25%, 11/15/2006............................... 19,956
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
FINANCE -- (CONTINUED)
$ 20,000 Deutsche Bank,
5.25%, 11/13/2006............................... $ 19,962
4,232 State Street Bank Money Market Fund............... 4,232
----------
Total short-term investments
(cost $84,121).................................. $ 84,121
----------
Total investments in securities
(cost $2,572,393) (C)........................... $2,568,123
==========
</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 1.68% of total net assets at October 31, 2006.
(B)All principal amounts are in U.S. dollars unless otherwise indicated.
<Table>
EUR -- EURO
</Table>
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $2,572,409 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $ 4,785
Unrealized depreciation......................... (9,071)
-------
Net unrealized depreciation..................... $(4,286)
=======
</Table>
(F)The company is in bankruptcy. The bank loan or bond held by the
fund is not in default.
(H)The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks a
readily available market or if its valuation has not changed for a certain
period of time.
<Table>
<Caption>
PERIOD PRINCIPAL COST
ACQUIRED AMOUNT SECURITY BASIS
-------- --------- -------- -------
06/2006 4,964 American Gaming Systems $ 4,964
11/2005 - 07/2006 3,000 Calpine Generating Co.
LLC 3,031
9/2006 2,500 Service Corp.
International Series A-
RegD 2,500
9/2006 8,000 Service Corp.
International Series B-
RegD 8,000
10/2005 2,500 Washington Country
Casino Resort LLC 2,500
09/2006 10,000 VTR Global
Communications, S.A. 10,000
</Table>
The aggregate value of these securities at October 31, 2006 was
$30,922, which represents 1.20% of total net assets.
The accompanying notes are an integral part of these financial statements.
142
- --------------------------------------------------------------------------------
(I) 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 qualified institutional buyers. 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, 2006, was $22,230, which represents 0.89% of total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in effect at
October 31, 2006.
(N) The interest rate disclosed for these securities represents the effective
yield as of October 31, 2006.
(AA) The interest rate disclosed for these securities represents an estimated
yield as of October 31, 2006.
(Q) The cost of securities purchased on a when-issued or delayed delivery basis
at October 31, 2006 was $157,178.
(V) Senior loans in which the Fund invests generally pay interest at rates
which are periodically adjusted by reference to a base short-term, floating
lending rate plus a premium. These base lending rates are generally (i) the
lending rate offered by one or more major European banks, such as the
London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate offered by one
or more major United States Banks, or (iii) the bank's certificate of
deposit rate. Senior floating rate interests often require prepayments from
excess cash flows or permit the borrower to repay at its election. The rate
at which the borrower repays cannot be predicted with accuracy. As a
result, the actual remaining maturity may be substantially less than the
stated maturities shown. The interest rate indicated is the rate in effect
at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
The accompanying notes are an integral part of these financial statements.
143
THE HARTFORD FOCUS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 99.7%
BASIC MATERIALS -- 4.6%
62 Companhia Vale do Rio Doce ADR.................... $ 1,570
36 Dow Chemical Co. ................................. 1,481
-------
3,051
-------
CAPITAL GOODS -- 4.1%
17 Boeing Co. ....................................... 1,366
17 Deere & Co. ...................................... 1,405
-------
2,771
-------
CONSUMER CYCLICAL -- 4.9%
56 D.R. Horton, Inc. ................................ 1,321
17 Home Depot, Inc. ................................. 642
27 Wal-Mart Stores, Inc. ............................ 1,340
-------
3,303
-------
CONSUMER STAPLES -- 4.2%
23 Clorox Co. ....................................... 1,485
56 Unilever N.V. NY Shares........................... 1,358
-------
2,843
-------
ENERGY -- 4.3%
21 EnCana Corp. ..................................... 1,007
40 Halliburton Co. .................................. 1,294
24 Williams Cos., Inc. .............................. 574
-------
2,875
-------
FINANCE -- 20.2%
67 Citigroup, Inc. .................................. 3,334
47 Countrywide Financial Corp. ...................... 1,773
60 E*Trade Financial Corp. (D)....................... 1,385
14 Muenchener Rueckversicherungs-Gesellschaft AG
(A)............................................. 2,241
48 UBS AG............................................ 2,878
38 UnitedHealth Group, Inc. ......................... 1,863
-------
13,474
-------
HEALTH CARE -- 14.5%
17 Amgen, Inc. (D)................................... 1,298
95 Boston Scientific Corp. (D)....................... 1,518
49 Bristol-Myers Squibb Co. ......................... 1,203
96 Elan Corp. plc ADR (D)............................ 1,390
42 Eli Lilly & Co. .................................. 2,347
45 Sanofi-Aventis S.A. ADR........................... 1,925
-------
9,681
-------
SERVICES -- 9.5%
26 Accenture Ltd. Class A............................ 862
37 United Parcel Service, Inc. Class B............... 2,773
35 Viacom, Inc. Class B (D).......................... 1,360
118 XM Satellite Radio Holdings, Inc. Class A (D)..... 1,377
-------
6,372
-------
TECHNOLOGY -- 33.4%
31 Adobe Systems, Inc. (D)........................... 1,201
54 AT&T, Inc. ....................................... 1,853
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
34 Broadcom Corp. Class A (D)........................ $ 1,023
80 Cisco Systems, Inc. (D)........................... 1,938
183 EMC Corp. (D)..................................... 2,236
94 General Electric Co. ............................. 3,304
37 Marvell Technology Group Ltd. (D)................. 669
56 Maxim Integrated Products, Inc. .................. 1,690
67 Medtronic, Inc. .................................. 3,276
65 Microsoft Corp. .................................. 1,872
96 Sprint Nextel Corp. .............................. 1,794
58 Yahoo!, Inc. (D).................................. 1,517
-------
22,373
-------
Total common stock
(cost $65,793).................................. $66,743
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 0.7%
REPURCHASE AGREEMENTS -- 0.7%
$ 88 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 88
52 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 52
2 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 2
42 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 42
88 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 88
48 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 48
118 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 118
-------
Total short-term investments
(cost $438)..................................... $ 438
-------
Total investments in securities
(cost $66,231) (C).............................. $67,181
=======
</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 18.48% of total net assets at October 31, 2006.
(A)The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $2,241, which represents 3.35% of total net assets.
The accompanying notes are an integral part of these financial statements.
144
- --------------------------------------------------------------------------------
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $66,697 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $ 3,490
Unrealized depreciation......................... (3,006)
-------
Net unrealized appreciation..................... $ 484
=======
</Table>
(D)Currently non-income producing.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
145
THE HARTFORD GLOBAL COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 93.3%
BRAZIL -- 5.0%
56 Brasil Telecom S.A. ADR (G)....................... $ 682
48 Tele Norte Leste Participacoes S.A. ADR (G)....... 689
-------
1,371
-------
CHINA -- 1.8%
1,330 China Telecom Corp. Ltd. (A)...................... 501
-------
EGYPT -- 1.0%
10 Mobinil-Egyptian Mobile Service................... 272
-------
FRANCE -- 6.1%
65 France Telecom S.A. (A)........................... 1,683
-------
GERMANY -- 1.7%
26 Deutsche Telekom AG (A)(G)........................ 459
-------
ITALY -- 0.3%
35 Telecom Italia S.p.A. (A)......................... 90
-------
LUXEMBOURG -- 3.5%
49 Citigroup Global Certificate -- Bharti
Televentures (D) ............................... 572
8 Millicom International Cellular S.A. (D).......... 389
-------
961
-------
MOROCCO -- 0.1%
1 Maroc Telecom (A)(G).............................. 12
-------
NORWAY -- 4.1%
72 Telenor ASA (A)................................... 1,134
-------
PHILIPPINES -- 5.9%
34 Philippine Long Distance Telephone Co. (A)........ 1,616
-------
RUSSIA -- 15.6%
39 AFK Sistema GDR................................... 1,020
49 Mobile Telesystems OJSC ADR....................... 2,173
17 Vimpel-Communications ADR (D)..................... 1,115
-------
4,308
-------
SOUTH AFRICA -- 6.9%
113 MTN Group Ltd. (A)................................ 1,028
12 Telkom South Africa Ltd. ADR...................... 877
-------
1,905
-------
SOUTH KOREA -- 0.5%
-- Samsung Electronics Co., Ltd. (A)................. 131
-------
SPAIN -- 4.0%
19 Telefonica S.A. ADR............................... 1,096
-------
TURKEY -- 6.0%
115 Turkcell Iletisim Hizmet ADR...................... 1,665
-------
UNITED STATES -- 30.8%
27 AT&T, Inc. ....................................... 911
26 Atlantic Tele-Network, Inc. ...................... 507
74 Dobson Communications Corp. (D)................... 572
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
UNITED STATES -- (CONTINUED)
131 KongZhong Corp. ADR (D)(G)........................ $ 1,069
22 Leap Wireless International, Inc. (D)............. 1,209
79 Neustar, Inc. (D)................................. 2,294
50 Sprint Nextel Corp. .............................. 931
46 Syniverse Holdings, Inc. (D)...................... 671
46 Vonage Holdings Corp. (D)(G)...................... 318
-------
8,482
-------
Total common stock
(cost $23,752).................................. $25,686
-------
PREFERRED STOCKS -- 3.6%
BRAZIL -- 3.6%
15 Telecomunicacoes de Sao Paulo S.A. (G)............ $ 362
29 Telemar Norte Leste S.A. ......................... 638
-------
Total preferred stocks
(cost $1,006)................................... $ 1,000
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 12.0%
REPURCHASE AGREEMENTS -- 2.6%
$ 142 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 142
84 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 84
3 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 3
67 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 67
140 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 140
77 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 77
189 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 189
-------
702
-------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 9.4%
2,591 BNY Institutional Cash Reserve Fund............... 2,591
-------
Total short-term investments
(cost $3,293)................................... $ 3,293
-------
Total investments in securities
(cost $28,051) (C).............................. $29,979
=======
</Table>
The accompanying notes are an integral part of these financial statements.
146
- --------------------------------------------------------------------------------
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 66.13% of total net assets at October 31, 2006.
(A)The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $6,654, which represents 24.17% of total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $28,240 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $ 3,423
Unrealized depreciation......................... (1,684)
-------
Net unrealized appreciation..................... $ 1,739
=======
</Table>
(D)Currently non-income producing.
(G)Security is partially on loan at October 31, 2006.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
DIVERSIFICATION BY INDUSTRY
As of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ---------------------------------------------------------------
Communications Equipment Manufacturing 3.9%
- ---------------------------------------------------------------
Other Telecommunications 27.7
- ---------------------------------------------------------------
Semiconductor, Electronic Component
Manufacturing 0.5
- ---------------------------------------------------------------
Software Publishers 3.9
- ---------------------------------------------------------------
Telecommunication Resellers 0.0
- ---------------------------------------------------------------
Wired Telecommunications Carriers 23.2
- ---------------------------------------------------------------
Wireless Communications Services 5.1
- ---------------------------------------------------------------
Wireless Telecommunications Carriers 32.6
- ---------------------------------------------------------------
Short-Term Investments 12.0
- ---------------------------------------------------------------
Other Assets & Liabilities (8.9)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
147
THE HARTFORD GLOBAL FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 98.0%
COMMERCIAL BANKING -- 4.5%
6 Canadian Imperial Bank of Commerce (G)............ $ 445
14 State Street Corp. ............................... 899
-------
1,344
-------
DEPOSITORY CREDIT BANKING -- 22.3%
14 Banche Popolari Unite Scpa (A).................... 389
26 Bank of America Corp. ............................ 1,422
10 Canadian Western Bank............................. 363
25 Citigroup, Inc. .................................. 1,274
26 HSBC Holdings plc (A)............................. 486
10 PNC Financial Services Group, Inc. ............... 721
23 Shizuoka Bank Ltd. (A)(G)......................... 246
10 Signature Bank (D)................................ 303
22 Wachovia Corp. ................................... 1,198
7 Webster Financial Corp. .......................... 329
-------
6,731
-------
INSURANCE CARRIERS -- 22.8%
23 ACE Ltd. ......................................... 1,294
1 Alleghany Corp. (D)............................... 336
16 Allied World Assurance Holdings Ltd. (D).......... 656
19 MBIA, Inc. ....................................... 1,203
8 Muenchener Rueckversicherungs-Gesellschaft AG
(A)............................................. 1,276
50 Old Mutual plc (A)................................ 162
23 Reinsurance Group of America, Inc. ............... 1,292
34 UnumProvident Corp. .............................. 678
-------
6,897
-------
INTERNATIONAL TRADE FINANCING (FOREIGN BANKS) -- 24.1%
74 Banca Intesa S.p.A. (A)(G)........................ 503
47 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 1,143
85 Barclays plc (A).................................. 1,139
11 Commerzbank AG (A)................................ 374
10 Credit Suisse Group (A)........................... 621
18 ING Groep N.V. (A)................................ 801
70 Shinsei Bank Ltd. (A)............................. 404
107 UniCredito Italiano S.p.A. (A).................... 890
75 Westpac Banking Corp. (A)......................... 1,397
-------
7,272
-------
MONETARY AUTHORITIES -- CENTRAL BANK -- 4.1%
24 HBOS plc (A)...................................... 488
-- Sumitomo Mitsui Financial Group, Inc. (A)(G)...... 754
-------
1,242
-------
NONDEPOSITORY CREDIT BANKING -- 3.6%
14 Capital One Financial Corp. ...................... 1,080
-------
OTHER FINANCIAL INVESTMENT ACTIVITIES -- 4.5%
4 Deutsche Boerse AG (A)............................ 612
6 Nuveen Investments, Inc. Class A.................. 291
2 Swiss Life Holding (A)............................ 472
-------
1,375
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
REAL ESTATE CREDIT (MORTGAGE BANKING) -- 3.3%
13 Countrywide Financial Corp. ...................... $ 492
7 Federal Home Loan Mortgage Corp. ................. 497
-------
989
-------
SECURITIES AND COMMODITY EXCHANGES -- 2.1%
82 Hong Kong Exchanges & Clearing Ltd. (A)........... 648
-------
SECURITIES, COMMODITIES AND BROKERAGE -- 6.7%
24 E*Trade Financial Corp. (D)....................... 556
3 Gluskin Sheff + Associates, Inc. (D) (I).......... 44
24 UBS AG (A)........................................ 1,425
-------
2,025
-------
Total common stock
(cost $24,277).................................. $29,603
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 11.0%
REPURCHASE AGREEMENTS -- 5.2%
$ 315 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 315
185 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 185
7 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 7
148 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 148
312 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 312
171 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 171
419 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 419
-------
1,557
-------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 5.8%
1,765 Navigator Prime Portfolio......................... 1,765
-------
Total short-term investments
(cost $3,322)................................... $ 3,322
-------
Total investments in securities
(cost $27,599) (C).............................. $32,925
=======
</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 49.91% of total net assets at October 31, 2006.
(A)The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at
The accompanying notes are an integral part of these financial statements.
148
- --------------------------------------------------------------------------------
October 31, 2006, was $14,230, which represents 47.09% of total net assets.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $27,665 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $5,321
Unrealized depreciation.......................... (61)
------
Net unrealized appreciation...................... $5,260
======
</Table>
(D)Currently non-income producing.
(G)Security is partially on loan at October 31, 2006.
(I)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 qualified institutional buyers. 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, 2006, was $44, which represents 0.15% of total net assets.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Australian Dollar Buy $ 47 $ 47 11/02/2006 $--
British Pound Buy 748 744 11/01/2006 4
British Pound Buy 5 5 11/02/2006 --
Canadian Dollar Buy 27 27 11/01/2006 --
Euro Sell 342 341 11/01/2006 (1)
Euro Sell 264 263 11/02/2006 (1)
Euro Buy 60 59 11/02/2006 1
Euro Buy 42 42 11/01/2006 --
Euro Buy 13 13 11/01/2006 --
Euro Buy 20 20 11/01/2006 --
Euro Buy 27 27 11/02/2006 --
Hong Kong Dollars Buy 23 23 11/02/2006 --
Japanese Yen Buy 45 45 11/02/2006 --
Swiss Francs Buy 16 15 11/02/2006 1
Swiss Francs Buy 21 21 11/02/2006 --
---
$ 4
===
</Table>
DIVERSIFICATION BY COUNTRY
As of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- ---------------------------------------------------------------
Australia 4.6%
- ---------------------------------------------------------------
Canada 2.8
- ---------------------------------------------------------------
Germany 7.6
- ---------------------------------------------------------------
Hong Kong 2.1
- ---------------------------------------------------------------
Italy 5.9
- ---------------------------------------------------------------
Japan 4.6
- ---------------------------------------------------------------
Netherlands 2.7
- ---------------------------------------------------------------
Spain 3.8
- ---------------------------------------------------------------
Switzerland 8.3
- ---------------------------------------------------------------
United Kingdom 7.5
- ---------------------------------------------------------------
United States 48.1
- ---------------------------------------------------------------
Short-Term Investments 11.0
- ---------------------------------------------------------------
Other Assets & Liabilities (9.0)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
149
THE HARTFORD GLOBAL HEALTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 97.5%
AGENCIES, BROKERAGES, OTHER INSURANCE ACTIVITIES -- 1.1%
150 Medco Health Solutions, Inc. (D).................. $ 8,014
--------
BASIC CHEMICAL MANUFACTURING -- 0.7%
100 Bayer AG (A)...................................... 5,036
--------
DRUGS & DRUGGISTS SUNDRIES WHOLESALERS -- 6.5%
299 Cardinal Health, Inc. ............................ 19,583
569 McKesson Corp. ................................... 28,476
--------
48,059
--------
ELECTRICAL EQUIPMENT MANUFACTURING -- 0.9%
203 Olympus Corp. (A)(G).............................. 6,446
--------
GENERAL MEDICAL AND SURGICAL HOSPITALS -- 1.9%
225 Triad Hospitals, Inc. (D)(G)...................... 8,335
114 Universal Health Services, Inc. Class B........... 6,047
--------
14,382
--------
HEALTH AND PERSONAL CARE STORES -- 1.4%
319 CVS Corp. ........................................ 10,023
--------
INSURANCE CARRIERS -- 5.0%
50 Ehealth, Inc. .................................... 1,095
597 UnitedHealth Group, Inc. ......................... 29,115
89 WellPoint, Inc. (D)............................... 6,808
--------
37,018
--------
MEDICAL EQUIPMENT & SUPPLIES MANUFACTURING -- 5.4%
366 Baxter International, Inc. ....................... 16,825
267 Biomet, Inc. ..................................... 10,084
829 Boston Scientific Corp. (D)....................... 13,196
--------
40,105
--------
NAVIGATE, MEASURE, CONTROL INSTRUMENT MANUFACTURING -- 6.1%
124 Beckman Coulter, Inc. ............................ 7,127
778 Medtronic, Inc. .................................. 37,854
--------
44,981
--------
PHARMACEUTICAL & MEDICINE MANUFACTURING -- 57.7%
836 Abbott Laboratories............................... 39,718
216 Amgen, Inc. (D)................................... 16,389
299 Amylin Pharmaceuticals, Inc. (D)(G)............... 13,144
76 Array BioPharma, Inc. (D)(G)...................... 748
492 Astellas Pharma, Inc. (A)......................... 22,159
398 AstraZeneca plc ADR............................... 23,351
150 AtheroGenics, Inc. (D)(G)......................... 1,951
75 Barr Pharmaceuticals, Inc. (D).................... 3,917
800 Bristol-Myers Squibb Co. ......................... 19,795
231 Cephalon, Inc. (D)(G)............................. 16,201
738 Cytokinetics, Inc. (D)(G)......................... 5,383
845 Daiichi Sankyo Co., Ltd. (A)...................... 25,098
494 Eisai Co., Ltd. (A)(G)............................ 25,289
719 Elan Corp. plc ADR (D)............................ 10,413
289 Eli Lilly & Co. .................................. 16,159
294 Forest Laboratories, Inc. (D)(G).................. 14,364
337 Gilead Sciences, Inc. (D)......................... 23,226
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
PHARMACEUTICAL & MEDICINE MANUFACTURING -- (CONTINUED)
150 H. Lundbeck A/S (A)(G)............................ $ 3,523
105 Ipsen (A)......................................... 4,310
613 MGI Pharma, Inc. (D)(G)........................... 11,663
124 NPS Pharmaceuticals, Inc. (D)(G).................. 584
599 Sanofi-Aventis S.A. ADR........................... 25,554
1,651 Schering-Plough Corp. ............................ 36,549
64 Schwarz Pharma AG (A)(G).......................... 7,495
1,191 Shionogi & Co., Ltd. (A)(G)....................... 23,863
103 Takeda Pharmaceutical Co., Ltd. (A)............... 6,632
161 Teva Pharmaceutical Industries Ltd. ADR........... 5,308
226 UCB S.A. (A)(G)................................... 13,991
323 Vertex Pharmaceuticals, Inc. (D)(G)............... 13,122
--------
429,899
--------
PROFESSIONAL SERVICES -- COMPUTER SYSTEM DESIGN &
RELATED -- 1.0%
272 IMS Health, Inc. ................................. 7,572
--------
SCIENTIFIC RESEARCH & DEVELOPMENT SERVICES -- 9.8%
494 Applera Corp. -- Celera Genomics Group (D)........ 7,670
667 Ciphergen Biosystems, Inc. (D)(G)................. 714
330 CV Therapeutics, Inc. (D)(G)...................... 4,267
245 Exelixis, Inc. (D)(G)............................. 2,378
98 Genmab A/S (D)(A)................................. 4,377
567 Human Genome Sciences, Inc. (D)(G)................ 7,569
154 ICOS Corp. (D)(G)................................. 4,879
378 Incyte Corp. (D)(G)............................... 1,801
340 Medicines Co. (D)(G).............................. 8,832
1,304 Millennium Pharmaceuticals, Inc. (D)(G)........... 15,256
347 Regeneron Pharmaceuticals, Inc. (D)............... 6,955
491 Zymogenetics, Inc. (D)(G)......................... 7,880
--------
72,578
--------
Total common stock
(cost $623,259)................................. $724,113
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 16.5%
REPURCHASE AGREEMENTS -- 2.3%
$ 3,431 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 3,431
2,018 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 2,018
81 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 81
1,615 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 1,615
3,391 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 3,391
</Table>
The accompanying notes are an integral part of these financial statements.
150
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- (CONTINUED)
v$ 1,857 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... $ 1,857
4,561 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 4,561
--------
16,954
--------
SHARES
- --------
OEV
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 14.2%
105,310 Navigator Prime Portfolio......................... $105,310
--------
Total short-term investments
(cost $122,266)................................. $122,264
--------
Total investments in securities
(cost $745,523) (C)............................. $846,377
========
</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 28.67% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $148,219, which represents 19.96% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $746,960 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $117,212
Unrealized depreciation........................ (17,795)
--------
Net unrealized appreciation.................... $ 99,417
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Euro Buy $249 $248 11/01/2006 $ 1
Euro Buy 350 349 11/02/2006 1
Euro Buy 531 531 11/03/2006 --
-----
$ 2
=====
</Table>
DIVERSIFICATION BY COUNTRY
October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- ---------------------------------------------------------------
Belgium 1.9%
- ---------------------------------------------------------------
Denmark 1.1
- ---------------------------------------------------------------
France 4.0
- ---------------------------------------------------------------
Germany 1.7
- ---------------------------------------------------------------
Ireland 1.4
- ---------------------------------------------------------------
Israel 0.7
- ---------------------------------------------------------------
Japan 14.7
- ---------------------------------------------------------------
United Kingdom 3.1
- ---------------------------------------------------------------
United States 68.9
- ---------------------------------------------------------------
Short-Term Investments 16.5
- ---------------------------------------------------------------
Other Assets & Liabilities (14.0)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
151
THE HARTFORD GLOBAL LEADERS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 97.4%
BASIC MATERIALS -- 2.5%
207 Cameco Corp. ..................................... $ 7,261
44 Vallourec (A)(G).................................. 10,856
--------
18,117
--------
CAPITAL GOODS -- 1.6%
150 Boeing Co. ....................................... 11,987
--------
CONSUMER CYCLICAL -- 10.6%
176 Best Buy Co., Inc. ............................... 9,707
3,141 Carphone Warehouse Group plc (A)(G)............... 16,948
291 eBay, Inc. (D).................................... 9,359
62 Nintendo Co. Ltd. (A)............................. 12,569
77 Pinault-Printemps-Redoute S.A. (A)(G)............. 11,445
2,258 Tesco plc (A)..................................... 16,943
--------
76,971
--------
CONSUMER STAPLES -- 5.9%
61 Fomento Economico Mexicano S.A. de C.V. ADR....... 5,850
70 Groupe Danone (A)(G).............................. 10,256
2 Japan Tobacco, Inc. (A)........................... 10,111
16 Nestle S.A. (A)................................... 5,598
259 Reckitt Benckiser plc (A)......................... 11,281
--------
43,096
--------
ENERGY -- 2.3%
59 Noble Corp. ...................................... 4,164
205 Schlumberger Ltd. ................................ 12,906
--------
17,070
--------
FINANCE -- 18.7%
83 BNP Paribas (A)(G)................................ 9,101
75 Deutsche Boerse AG (A)............................ 12,008
426 E*Trade Financial Corp. (D)....................... 9,906
126 Erste Bank Der Oesterreichischen Sparkassen AG
(A)(G).......................................... 8,541
36 Euronext (A)(G)................................... 3,629
74 Goldman Sachs Group, Inc. ........................ 14,025
53 KBC Groep N.V. (A)................................ 5,749
1,265 Man Group plc (A)................................. 11,757
37 ORIX Corp. (A) PFIC............................... 10,406
1,317 Shinsei Bank Ltd. (A)............................. 7,594
123 SLM Corp. ........................................ 5,968
404 Standard Chartered plc (A)........................ 11,375
388 Sumitomo Realty & Development Co., Ltd. (A)(G).... 12,855
221 UBS AG (A)........................................ 13,218
--------
136,132
--------
HEALTH CARE -- 11.6%
129 Amgen, Inc. (D)................................... 9,808
99 AstraZeneca plc (A)............................... 5,818
83 Celgene Corp. (D)(G).............................. 4,425
244 Eisai Co., Ltd. (A)............................... 12,481
498 Elan Corp. plc ADR (D)............................ 7,214
244 Monsanto Co. ..................................... 10,781
31 Roche Holding AG (A).............................. 5,430
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
HEALTH CARE -- (CONTINUED)
26 Sanofi-Aventis S.A. (A)(G)........................ $ 2,235
688 Schering-Plough Corp. ............................ 15,221
223 Wyeth............................................. 11,395
--------
84,808
--------
SERVICES -- 10.2%
403 Comcast Corp. Class A (D)......................... 16,390
3,179 EMI Group plc (A)................................. 16,344
97 Harrah's Entertainment, Inc. ..................... 7,195
319 Las Vegas Sands Corp. (D)......................... 24,270
377 Warner Music Group Corp. ......................... 9,776
--------
73,975
--------
TECHNOLOGY -- 33.2%
385 Adobe Systems, Inc. (D)........................... 14,726
332 America Movil S.A. de C.V. ADR.................... 14,216
471 American Tower Corp. Class A (D).................. 16,962
263 ASML Holding N.V. (D)(A).......................... 6,003
61 Broadcom Corp. Class A (D)........................ 1,834
538 Cisco Systems, Inc. (D)........................... 12,970
437 Corning, Inc. (D)................................. 8,924
134 Danaher Corp. .................................... 9,581
49 Google, Inc. (D).................................. 23,391
330 Hewlett-Packard Co. .............................. 12,773
173 High Tech Computer Corp. (A)...................... 4,283
1,494 Hon Hai Precision Industry Co., Ltd. (A).......... 9,663
430 Intel Corp. ...................................... 9,172
694 Motorola, Inc. ................................... 16,004
370 Network Appliance, Inc. (D)(G).................... 13,487
602 Oracle Corp. (D).................................. 11,123
8 Rakuten, Inc. (A)(G).............................. 3,601
94 Research In Motion Ltd. (D)....................... 11,043
20 Samsung Electronics Co., Ltd. (A)................. 12,815
220 SanDisk Corp. (D)................................. 10,581
611 Sharp Corp. (A)................................... 10,875
94 Tokyo Electron Ltd. (A)(G)........................ 6,980
--------
241,007
--------
TRANSPORTATION -- 0.8%
87 Ryanair Holdings plc ADR (D)(G)................... 5,793
--------
Total common stock
(cost $600,365)................................. $708,956
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 13.5%
REPURCHASE AGREEMENTS -- 1.8%
$ 2,644 Banc of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 2,644
1,555 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,555
62 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 62
</Table>
The accompanying notes are an integral part of these financial statements.
152
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 1,244 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... $ 1,244
2,613 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 2,613
1,431 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 1,431
3,515 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 3,515
--------
13,064
--------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 11.7%
85,242 Navigator Prime Portfolio......................... $ 85,242
--------
Total short-term investments
(cost $98,306).................................. $ 98,306
--------
Total investments in securities
(cost $698,671) (C)............................. $807,262
========
</Table>
DIVERSIFICATION BY COUNTRY
October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- ---------------------------------------------------------------
Austria 1.2%
- ---------------------------------------------------------------
Belgium 0.8
- ---------------------------------------------------------------
Canada 2.5
- ---------------------------------------------------------------
France 6.0
- ---------------------------------------------------------------
Germany 1.6
- ---------------------------------------------------------------
Ireland 1.8
- ---------------------------------------------------------------
Japan 12.0
- ---------------------------------------------------------------
Mexico 2.8
- ---------------------------------------------------------------
Netherlands 1.3
- ---------------------------------------------------------------
South Korea 1.8
- ---------------------------------------------------------------
Switzerland 3.3
- ---------------------------------------------------------------
Taiwan 1.9
- ---------------------------------------------------------------
United Kingdom 12.4
- ---------------------------------------------------------------
United States 48.0
- ---------------------------------------------------------------
Short-Term Investments 13.5
- ---------------------------------------------------------------
Other Assets & Liabilities (10.9)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</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 49.47% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $308,768, which represents 42.41% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $706,443 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $106,318
Unrealized depreciation........................ (5,499)
--------
Net unrealized appreciation.................... $100,819
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Sell $3,261 $3,242 11/01/2006 $(19)
Euro Sell 6,489 6,474 11/01/2006 (15)
Euro Sell 629 627 11/02/2006 (2)
Euro Sell 251 251 11/03/2006 --
Japanese Yen Buy 225 222 11/01/2006 3
Japanese Yen Buy 1,463 1,459 11/02/2006 4
Japanese Yen Buy 682 676 11/06/2006 6
Swiss Franc Sell 2,785 2,786 11/03/2006 1
----
$(22)
====
PFIC -- Passive Foreign Investment Company
</Table>
The accompanying notes are an integral part of these financial statements.
153
THE HARTFORD GLOBAL TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 96.8%
ACTIVITIES RELATED TO CREDIT BANKING -- 1.7%
44 Western Union Co. ................................ $ 977
-------
AUDIO AND VIDEO EQUIPMENT MANUFACTURING -- 1.2%
17 Sony Corp. (A).................................... 703
-------
BUSINESS SUPPORT SERVICES -- 1.2%
17 Iron Mountain, Inc. (D)........................... 716
-------
COMMUNICATIONS EQUIPMENT MANUFACTURING -- 6.9%
88 Motorola, Inc. ................................... 2,020
8 Research In Motion Ltd. (D)....................... 963
290 Telefonaktiebolaget LM Ericsson (A)............... 1,096
-------
4,079
-------
COMPUTER AND PERIPHERAL MANUFACTURING -- 19.3%
130 EMC Corp. (D)..................................... 1,591
139 Hewlett-Packard Co. .............................. 5,369
375 Hon Hai Precision Industry Co., Ltd. (A).......... 2,425
37 Integrated Device Technology, Inc. (D)............ 586
14 Network Appliance, Inc. (D)....................... 522
18 SanDisk Corp. (D)................................. 875
-------
11,368
-------
DATA PROCESSING SERVICES -- 1.8%
44 First Data Corp. ................................. 1,074
-------
ELECTRICAL EQUIPMENT MANUFACTURING -- COMPONENT OTHER -- 3.3%
95 Corning, Inc. (D)................................. 1,933
-------
EMPLOYMENT SERVICES -- 2.4%
17 Manpower, Inc. ................................... 1,145
8 Robert Half International, Inc. .................. 292
-------
1,437
-------
INTERNET PROVIDERS & WEB SEARCH PORTALS -- 0.8%
29 Redback Networks, Inc. (D)........................ 456
-------
MACHINERY MANUFACTURING -- INDUSTRIAL MACHINERY -- 6.6%
23 KLA-Tencor Corp. ................................. 1,111
56 Lam Research Corp. (D)............................ 2,749
-------
3,860
-------
MANAGEMENT, SCIENTIFIC, AND TECH CONSULTING
SERVICES -- 3.7%
39 Accenture Ltd. Class A............................ 1,280
22 Monster Worldwide, Inc. (D)....................... 891
-------
2,171
-------
NAVIGATE, MEASURE, CONTROL INSTRUMENT MANUFACTURING -- 1.5%
16 Garmin Ltd. (G)................................... 860
-------
ON-LINE INFORMATION SERVICES -- 5.3%
7 Google, Inc. (D).................................. 3,097
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
PROFESSIONAL SERVICES -- COMPUTER SYSTEM DESIGN &
RELATED -- 5.5%
27 Automatic Data Processing, Inc. .................. $ 1,355
47 BISYS Group, Inc. (D)............................. 517
22 DST Systems, Inc. (D)............................. 1,341
-------
3,213
-------
RETAIL -- ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES -- 2.5%
46 eBay, Inc. (D).................................... 1,488
-------
SEMICONDUCTOR, ELECTRONIC COMPONENT MANUFACTURING -- 17.9%
36 Broadcom Corp. Class A (D)........................ 1,090
136 Intel Corp. ...................................... 2,908
14 International Rectifier Corp. (D)................. 500
68 Maxim Integrated Products, Inc. .................. 2,047
26 QLogic Corp. (D).................................. 541
34 S.O.I. Tec, S.A. (D)(A)(G)........................ 1,004
3 Samsung Electronics Co., Ltd. (A)................. 1,746
2 SiRF Technology Holdings, Inc. (D)................ 59
31 Trident Microsystems, Inc. (D).................... 655
-------
10,550
-------
SOFTWARE PUBLISHERS -- 13.1%
58 Activision, Inc. (D).............................. 897
35 Adobe Systems, Inc. (D)........................... 1,354
18 Cognos, Inc. (D).................................. 653
32 Electronic Arts, Inc. (D)......................... 1,708
60 Microsoft Corp. .................................. 1,734
35 Oracle Corp. (D).................................. 652
44 Red Hat, Inc. (D)................................. 724
-------
7,722
-------
WHOLESALERS -- ELECTRICAL GOODS -- 1.1%
49 Arris Group, Inc. (D)............................. 658
-------
WIRELESS COMMUNICATIONS SERVICES -- 1.0%
107 Sonus Networks, Inc. (D)(G)....................... 560
-------
Total common stock
(cost $49,906).................................. $56,922
-------
INVESTMENT COMPANIES -- 0.4%
INVESTMENT POOLS AND FUNDS -- 0.4%
5 Ishares Goldman Sachs Tech I Index Fund........... $ 244
-------
Total investment companies
(cost $246)..................................... $ 244
-------
WARRANTS -- 0.8%
OTHER PERSONAL SERVICES -- 0.8%
10 Tata Consultancy Services Ltd. Warrants (D) (I)... $ 482
-------
Total warrants
(cost $299)..................................... $ 482
-------
Total long-term investments
(cost $50,451).................................. $57,648
-------
</Table>
The accompanying notes are an integral part of these financial statements.
154
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- -----------
SHORT-TERM INVESTMENTS -- 4.0%
REPURCHASE AGREEMENTS -- 1.3%
$ 155 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 155
91 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 91
4 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 4
73 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 73
154 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 154
84 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 84
207 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 207
---------
768
---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 2.7%
1,610 BNY Institutional Cash Reserve Fund............... 1,610
---------
Total short-term investments
(cost $2,378)................................... $ 2,378
---------
Total investments in securities
(cost $52,829) (C).............................. $ 60,026
=========
</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 15.43% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $6,974, which represents 11.86% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $53,270 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $7,691
Unrealized depreciation.......................... (935)
------
Net unrealized appreciation...................... $6,756
======
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(I) 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 qualified institutional buyers. 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, 2006, was $482, which represents 0.82% of total net assets.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
DIVERSIFICATION BY COUNTRY
October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
COUNTRY NET ASSETS
- ---------------------------------------------------------------
Canada 2.7%
- ---------------------------------------------------------------
France 1.7
- ---------------------------------------------------------------
Japan 1.2
- ---------------------------------------------------------------
Luxembourg 0.8
- ---------------------------------------------------------------
South Korea 3.0
- ---------------------------------------------------------------
Sweden 1.9
- ---------------------------------------------------------------
Taiwan 4.1
- ---------------------------------------------------------------
United States 82.6
- ---------------------------------------------------------------
Short Term Investments 4.0
- ---------------------------------------------------------------
Other Assets & Liabilities (2.0)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
155
THE HARTFORD GROWTH ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 99.9%
EQUITY FUNDS -- 79.8%
2,057 Hartford Capital Appreciation Fund, Class Y....... $ 86,783
6,355 Hartford Disciplined Equity Fund, Class Y......... 86,306
82 Hartford Equity Income Fund, Class Y.............. 1,147
2,239 Hartford Global Leaders Fund, Class Y............. 45,094
857 Hartford Growth Fund, Class Y (D)................. 16,185
836 Hartford Growth Opportunities Fund, Class Y....... 25,115
1,449 Hartford International Capital Appreciation Fund,
Class Y......................................... 21,983
1,000 Hartford International Opportunities Fund, Class
Y............................................... 16,677
1,551 Hartford International Small Company Fund, Class
Y............................................... 25,396
749 Hartford MidCap Value Fund, Class Y............... 11,240
939 Hartford Select MidCap Growth Fund, Class Y....... 10,668
638 Hartford Select Midcap Value Fund, Class Y........ 7,906
105 Hartford Select Smallcap Growth Fund, Class Y
(D)............................................. 1,113
1,818 Hartford Small Company Fund, Class Y (D).......... 41,321
1,674 Hartford SmallCap Growth Fund, Class Y (D)........ 53,488
2,408 Hartford Value Fund, Class Y...................... 31,086
2,399 Hartford Value Opportunities Fund, Class Y........ 44,332
--------
Total equity funds
(cost $465,258)................................. $525,840
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FIXED INCOME FUNDS -- 20.1%
4,519 Hartford Inflation Plus Fund, Class Y............. $ 47,223
2,829 Hartford Short Duration Fund, Class Y............. 27,954
5,373 Hartford Total Return Bond Fund, Class Y.......... 57,542
--------
Total fixed income funds
(cost $134,314)................................. $132,719
--------
Total investments in affiliated investment
companies
(cost $599,572) (C)............................. $658,559
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $599,583 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $60,570
Unrealized depreciation......................... (1,594)
-------
Net unrealized appreciation..................... $58,976
=======
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
156
THE HARTFORD GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- 99.1%
BASIC MATERIALS -- 2.4%
698 Cameco Corp. ..................................... $ 24,508
272 Companhia Vale do Rio Doce ADR.................... 6,919
----------
31,427
----------
CAPITAL GOODS -- 4.0%
581 Boeing Co. ....................................... 46,382
124 International Game Technology..................... 5,287
----------
51,669
----------
CONSUMER CYCLICAL -- 3.3%
483 eBay, Inc. (D).................................... 15,524
251 Wal-Mart Stores, Inc. ............................ 12,370
226 Whole Foods Market, Inc. ......................... 14,422
----------
42,316
----------
CONSUMER STAPLES -- 0.7%
139 PepsiCo, Inc. .................................... 8,814
----------
ENERGY -- 1.5%
577 Halliburton Co. (G)............................... 18,655
----------
FINANCE -- 19.5%
224 AMVESCAP plc ADR.................................. 5,150
38 Chicago Mercantile Exchange Holdings, Inc. ....... 19,148
751 Commerce Bancorp, Inc. (G)........................ 26,214
418 Franklin Resources, Inc. ......................... 47,621
36 Goldman Sachs Group, Inc. ........................ 6,827
687 Nasdaq Stock Market, Inc. (D)..................... 24,540
217 State Street Corp. ............................... 13,938
749 UBS AG............................................ 44,791
1,003 UnitedHealth Group, Inc. ......................... 48,910
539 Western Union Co. ................................ 11,878
----------
249,017
----------
HEALTH CARE -- 13.1%
20 Abbott Laboratories............................... 950
194 Amgen, Inc. (D)................................... 14,736
702 AstraZeneca plc ADR............................... 41,213
505 Elan Corp. plc ADR (D)(G)......................... 7,319
129 Genzyme Corp. (D)................................. 8,682
148 Gilead Sciences, Inc. (D)......................... 10,217
180 Monsanto Co. ..................................... 7,964
715 Sanofi-Aventis S.A. ADR........................... 30,502
1,745 Schering-Plough Corp. ............................ 38,631
186 Vertex Pharmaceuticals, Inc. (D)(G)............... 7,567
----------
167,781
----------
SERVICES -- 16.1%
173 Accenture Ltd. Class A............................ 5,700
855 Autodesk, Inc. (D)................................ 31,415
92 Corporate Executive Board Co. .................... 8,266
371 Equifax, Inc. .................................... 14,108
365 Fluor Corp. ...................................... 28,600
137 Manpower, Inc. ................................... 9,264
424 Monster Worldwide, Inc. (D)....................... 17,195
284 Moody's Corp. .................................... 18,823
126 Starwood Hotels & Resorts......................... 7,526
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
SERVICES -- (CONTINUED)
397 United Parcel Service, Inc. Class B............... $ 29,886
175 Viacom, Inc. Class B (D).......................... 6,825
749 Walt Disney Co. .................................. 23,566
369 XM Satellite Radio Holdings, Inc. Class A (D)..... 4,308
----------
205,482
----------
TECHNOLOGY -- 33.4%
1,021 Adobe Systems, Inc. (D)........................... 39,041
296 America Movil S.A. de C.V. ADR.................... 12,684
348 American Tower Corp. Class A (D).................. 12,539
191 AT&T, Inc. ....................................... 6,530
1,758 Cisco Systems, Inc. (D)........................... 42,431
386 Danaher Corp. .................................... 27,733
716 General Electric Co. ............................. 25,129
83 Google, Inc. (D).................................. 39,545
369 Hewlett-Packard Co. .............................. 14,299
576 Linear Technology Corp. .......................... 17,933
394 Marvell Technology Group Ltd. (D)................. 7,201
1,142 Medtronic, Inc. .................................. 55,572
1,100 Motorola, Inc. ................................... 25,364
1,517 Network Appliance, Inc. (D)....................... 55,381
1,092 Oracle Corp. (D).................................. 20,162
91 Qualcomm, Inc. ................................... 3,323
309 SanDisk Corp. (D)................................. 14,863
365 Symantec Corp. (D)................................ 7,232
----------
426,962
----------
TRANSPORTATION -- 3.1%
455 General Dynamics Corp. ........................... 32,351
113 Harley-Davidson, Inc. ............................ 7,772
----------
40,123
----------
UTILITIES -- 2.0%
404 TXU Corp. ........................................ 25,474
----------
Total common stock
(cost $1,180,403)............................... $1,267,720
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 3.8%
REPURCHASE AGREEMENTS -- 1.0%
$ 2,530 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 2,530
1,489 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,489
59 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 59
1,191 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 1,191
2,501 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 2,501
</Table>
The accompanying notes are an integral part of these financial statements.
157
THE HARTFORD GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
SHORT-TERM INVESTMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 1,369 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... $ 1,369
3,364 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 3,364
----------
12,503
----------
<Caption>
SHARES
- ---------
SHARES SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 2.8%
35,675 BNY Institutional Cash Reserve Fund............... $ 35,675
----------
Total short-term investments
(cost $48,178).................................. $ 48,178
----------
Total investments in securities
(cost $1,228,581) (C)........................... $1,315,898
==========
</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 13.53% of total net assets at October 31, 2006.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $1,230,929 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $123,279
Unrealized depreciation........................ (38,310)
--------
Net unrealized appreciation.................... $ 84,969
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
158
THE HARTFORD GROWTH OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- 98.1%
BASIC MATERIALS -- 6.8%
379 Cameco Corp. ..................................... $ 13,325
631 Companhia Vale do Rio Doce ADR (G)................ 16,053
401 Jarden Corp. (D)(G)............................... 14,427
129 Potash Corp. of Saskatchewan...................... 16,099
54 Rio Tinto plc ADR................................. 12,044
104 Wacker Chemie AG (D)(A)........................... 12,384
----------
84,332
----------
CAPITAL GOODS -- 3.0%
143 Alliant Techsystems, Inc. (D)..................... 11,033
231 Boeing Co. ....................................... 18,432
184 Joy Global, Inc. ................................. 7,208
----------
36,673
----------
CONSUMER CYCLICAL -- 10.1%
133 Altria Group, Inc. ............................... 10,793
384 California Pizza Kitchen, Inc. (D)................ 12,376
173 Children's Place Retail Stores, Inc. (D).......... 12,157
543 eBay, Inc. (D).................................... 17,437
312 Foster Wheeler Ltd. (D)........................... 14,033
538 Hot Topic, Inc. (D)............................... 5,434
357 Kohl's Corp. (D).................................. 25,232
60 Nintendo Co. Ltd. (A)............................. 12,221
430 Tiffany & Co. .................................... 15,363
----------
125,046
----------
CONSUMER STAPLES -- 0.9%
229 Alberto-Culver Co. ............................... 11,610
----------
ENERGY -- 2.1%
401 Chesapeake Energy Corp. .......................... 12,992
421 Halliburton Co. .................................. 13,613
----------
26,605
----------
FINANCE -- 9.8%
345 Citigroup, Inc. .................................. 17,285
279 Dade Behring Holdings, Inc. ...................... 10,146
705 E*Trade Financial Corp. (D)....................... 16,405
510 Nasdaq Stock Market, Inc. (D)..................... 18,212
328 Nuveen Investments, Inc. Class A.................. 16,170
245 State Street Corp. ............................... 15,711
197 UBS AG............................................ 11,783
729 Western Union Co. ................................ 16,063
----------
121,775
----------
HEALTH CARE -- 16.4%
271 Alkermes, Inc. (D)................................ 4,549
249 Amylin Pharmaceuticals, Inc. (D).................. 10,950
237 Astellas Pharma, Inc. (A)......................... 10,679
266 AtheroGenics, Inc. (D)(G)......................... 3,463
443 Auxilium Pharmaceuticals, Inc. (D)(G)............. 5,586
238 Cephalon, Inc. (D)(G)............................. 16,724
131 Covance, Inc. (D)................................. 7,646
280 Digene Corp. (D).................................. 13,010
220 Eisai Co., Ltd. (A)............................... 11,274
576 Elan Corp. plc ADR (D)(G)......................... 8,336
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
HEALTH CARE -- (CONTINUED)
243 Eli Lilly & Co. .................................. $ 13,605
139 Encysive Pharmaceuticals, Inc. (D)(G)............. 663
296 Forest Laboratories, Inc. (D)..................... 14,467
155 ICOS Corp. (D)(G)................................. 4,907
390 Kyphon, Inc. (D).................................. 15,389
187 Medicines Co. (D)................................. 4,852
306 Pharmaceutical Product Development, Inc. ......... 9,688
1,144 Schering-Plough Corp. ............................ 25,319
730 Shionogi & Co., Ltd. (A)(G)....................... 14,630
183 Vertex Pharmaceuticals, Inc. (D).................. 7,442
----------
203,179
----------
SERVICES -- 11.8%
303 Accenture Ltd. Class A............................ 9,985
456 Comcast Corp. Class A (D)......................... 18,533
547 DreamWorks Animation SKG, Inc. (D)................ 14,455
349 Equifax, Inc. .................................... 13,254
181 Fluor Corp. ...................................... 14,219
262 Focus Media Holding Ltd. ADR (D).................. 13,862
179 Manpower, Inc. ................................... 12,131
307 MoneyGram International, Inc. .................... 10,485
176 Stericycle, Inc. (D).............................. 12,417
500 Tetra Technologies, Inc. (D)...................... 9,094
569 Walt Disney Co. .................................. 17,910
----------
146,345
----------
TECHNOLOGY -- 32.4%
1,328 Activision, Inc. (D).............................. 20,475
548 Adobe Systems, Inc. (D)........................... 20,942
297 Amdocs Ltd. (D)................................... 11,500
405 American Tower Corp. Class A (D).................. 14,574
68 Baidu.com ADR (G)................................. 5,961
319 Broadcom Corp. Class A (D)........................ 9,668
254 Cognos, Inc. (D).................................. 9,262
947 Corning, Inc. (D)................................. 19,355
826 Evergreen Solar, Inc. (G)......................... 7,185
255 Garmin Ltd. (G)................................... 13,641
580 General Electric Co. ............................. 20,378
33 Google, Inc. (D).................................. 15,911
520 Hewlett-Packard Co. .............................. 20,149
287 Leap Wireless International, Inc. (D)............. 15,889
440 Medtronic, Inc. .................................. 21,410
692 Microsoft Corp. .................................. 19,853
794 Motorola, Inc. ................................... 18,319
1,782 Move, Inc. (D).................................... 8,518
940 Network Appliance, Inc. (D)....................... 34,321
1,321 O2Micro International Ltd. ADR (D)................ 8,532
923 Oracle Corp. (D).................................. 17,052
504 Red Hat, Inc. (D)(G).............................. 8,259
654 Redback Networks, Inc. (D)........................ 10,350
20 Samsung Electronics Co., Ltd. (A)................. 13,145
2,845 Tencent Holdings Ltd. (A)......................... 6,786
725 VeriFone Holdings, Inc. (D)(G).................... 21,166
280 Verint Systems, Inc. (D).......................... 9,167
----------
401,768
----------
</Table>
The accompanying notes are an integral part of these financial statements.
159
THE HARTFORD GROWTH OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- 1.1%
451 GOL Linhas Aereas Inteligentes S.A. ADR (G)....... $ 14,052
----------
UTILITIES -- 3.7%
637 Suntech Power Holdings Co. Ltd. ADR (D)........... 16,554
267 TXU Corp. ........................................ 16,862
212 Veolia Environnment S.A. (A)(G)................... 12,960
----------
46,376
----------
Total common stock
(cost $1,072,405)............................... $1,217,761
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 10.3%
REPURCHASE AGREEMENTS -- 2.7%
$ 6,943 Banc of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 6,943
4,084 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 4,084
163 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 163
3,267 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 3,267
6,862 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 6,862
3,758 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 3,758
9,231 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 9,231
----------
34,308
----------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 7.6%
93,925 BNY Institutional Cash Reserve Fund............... 93,925
----------
Total short-term investments
(cost $128,233)................................. $ 128,233
----------
Total investments in securities
(cost $1,200,638) (C)........................... $1,345,994
==========
</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 17.61% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006, was $94,079, which represents 7.58% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $1,202,965 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $164,101
Unrealized depreciation........................ (21,072)
--------
Net unrealized appreciation.................... $143,029
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
160
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 2.3%
TRANSPORTATION -- 2.3%
$ 725 American Airlines, Inc.,
7.38%, 05/23/2019............................... $ 696
589 Continental Airlines, Inc.,
6.80%, 08/02/2018............................... 574
1,342 Continental Airlines, Inc.,
7.37%, 12/15/2015............................... 1,328
1,625 Continental Airlines, Inc.,
7.57%, 12/01/2006............................... 1,625
1,102 Continental Airlines, Inc.,
8.39%, 11/01/2020............................... 1,143
1,281 Delta Air Lines, Inc.,
7.38%, 05/18/2010 (F)........................... 1,281
--------
Total asset & commercial
mortgage backed securities
(cost $6,471)................................... $ 6,647
--------
CORPORATE BONDS: INVESTMENT GRADE -- 1.7%
FINANCE -- 0.8%
$ 715 Kazkommerts International B.V.,
8.00%, 11/03/2015 (I)(G)........................ 736
1,485 TuranAlem Finance B.V.,
8.00%, 03/24/2014............................... 1,492
--------
2,228
--------
TECHNOLOGY -- 0.3%
840 Valor Telecommunications Enterprises LLC,
7.75%, 02/15/2015............................... 896
--------
TRANSPORTATION -- 0.2%
650 Royal Caribbean Cruises Ltd.,
7.00%, 06/15/2013............................... 660
--------
UTILITIES -- 0.4%
1,110 NGC Corp.,
7.125%, 05/15/2018.............................. 1,032
--------
Total corporate bonds: investment grade
(cost $5,067)................................... $ 4,816
--------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 94.4%
BASIC MATERIALS -- 13.2%
$ 600 Ainsworth Lumber Co. Ltd.,
7.25%, 10/01/2012 (G)........................... $ 446
1,250 AK Steel Corp.,
7.75%, 06/15/2012............................... 1,249
305 Arco Chemical Co.,
10.25%, 11/01/2010.............................. 339
965 Boise Cascade LLC,
7.13%, 10/15/2014............................... 910
1,340 Bowater, Inc.,
8.39%, 03/15/2010 (L)(G)........................ 1,353
1,940 Bowater, Inc.,
9.50%, 10/15/2012............................... 1,959
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ---------- ---------
BASIC MATERIALS -- (CONTINUED)
$ 1,000 Chaparral Steel Co.,
10.00%, 07/15/2013.............................. $ 1,120
755 Cooper-Standard Automotive, Inc.,
8.38%, 12/15/2014 (G)........................... 557
1,370 Crown Americas, Inc.,
7.75%, 11/15/2015............................... 1,406
660 Crown Cork & Seal Co., Inc.,
8.00%, 04/15/2023............................... 634
1,475 Equistar Chemicals L.P.,
8.75%, 02/15/2009 (G)........................... 1,534
985 Georgia Gulf Corp.,
10.75%, 10/15/2016 (I).......................... 963
2,940 Goodyear Tire & Rubber Co.,
11.25%, 03/01/2011.............................. 3,234
1,180 Graham Packaging Co., Inc.,
9.88%, 10/15/2014 (G)........................... 1,183
550 Huntsman International LLC,
7.88%, 11/13/2014 (I)(Q)........................ 550
EUR 90 Huntsman International LLC,
10.13%, 07/01/2009.............................. 118
1,364 Koppers, Inc.,
9.88%, 10/15/2013............................... 1,473
1,200 Lyondell Chemical Co.,
8.25%, 09/15/2016............................... 1,236
985 Mobile Services Group, Inc.,
9.75%, 08/01/2014 (I)........................... 1,021
EUR 1,750 Nalco Co.,
7.75%, 11/15/2011............................... 2,356
1,490 Norampac, Inc.,
6.75%, 06/01/2013 (G)........................... 1,434
1,130 Nova Chemicals Corp.,
8.40%, 11/15/2013 (L)(G)........................ 1,150
1,250 Owens-Brockway Glass Container, Inc.,
8.88%, 02/15/2009............................... 1,281
660 Owens-Illinois, Inc.,
7.80%, 05/15/2018 (G)........................... 640
1,500 Peabody Energy Corp.,
6.88%, 03/15/2013 (G)........................... 1,523
1,470 PolyOne Corp.,
8.88%, 05/01/2012 (G)........................... 1,492
650 Potlatch Corp.,
13.00%, 12/01/2009 (L).......................... 757
1,330 Rockwood Specialties Group, Inc.,
7.50%, 11/15/2014 (G)........................... 1,323
434 Rockwood Specialties Group, Inc.,
10.63%, 05/15/2011.............................. 465
1,520 Smurfit Kappa Funding PLC,
9.63%, 10/01/2012............................... 1,609
1,650 Smurfit-Stone Container Enterprises, Inc.,
8.38%, 07/01/2012............................... 1,609
1,665 Verso Paper Holdings LLC,
11.38%, 08/01/2016 (I)(G)....................... 1,690
--------
38,614
--------
</Table>
The accompanying notes are an integral part of these financial statements.
161
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
CAPITAL GOODS -- 1.6%
1,285 Bombardier, Inc.,
6.30%, 05/01/2014 (I)........................... 1,179
1,100 Case Corp.,
7.25%, 01/15/2016............................... 1,107
891 K2, Inc.,
7.38%, 07/01/2014 (G)........................... 882
176 L-3 Communications Corp.,
3.00%, 08/01/2035 +............................. 182
810 Xerox Capital Trust I,
8.00%, 02/01/2027 (G)........................... 827
570 Xerox Corp.,
9.75%, 01/15/2009............................... 616
--------
4,793
--------
CONSUMER CYCLICAL -- 13.8%
2,400 Albertson's, Inc.,
7.25%, 05/01/2013............................... 2,417
1,080 Amerigas Partners L.P.,
7.25%, 05/20/2015 (G)........................... 1,077
2,505 ArvinMeritor, Inc.,
8.75%, 03/01/2012 (G)........................... 2,461
1,600 Asbury Automotive Group, Inc.,
9.00%, 06/15/2012 (G)........................... 1,656
1,160 Beazer Homes USA, Inc.,
8.63%, 05/15/2011 (G)........................... 1,183
1,300 Brown Shoe Co., Inc.,
8.75%, 05/01/2012............................... 1,352
865 Builders FirstSource, Inc.,
9.65%, 02/15/2012 (L)........................... 850
1,700 Ford Capital B.V.,
9.50%, 06/01/2010............................... 1,658
1,360 Ford Motor Co.,
7.45%, 07/16/2031 (G)........................... 1,066
2,865 General Motors Corp.,
6.38%, 05/01/2008 (G)........................... 2,808
1,960 General Motors Corp.,
7.13%, 07/15/2013............................... 1,754
1,100 GSC Holdings Corp.,
8.00%, 10/01/2012 (G)........................... 1,141
640 Ingles Markets, Inc.,
8.88%, 12/01/2011 (G)........................... 667
505 Interline Brands, Inc.,
8.13%, 06/15/2014 (G)........................... 516
365 K. Hovnanian Enterprises, Inc.,
6.00%, 01/15/2010............................... 347
875 K. Hovnanian Enterprises, Inc.,
6.25%, 01/15/2015............................... 805
315 K. Hovnanian Enterprises, Inc.,
8.63%, 01/15/2017 (G)........................... 325
1,200 KB Home & Broad Home Corp.,
6.38%, 08/15/2011 (G)........................... 1,181
950 Levi Strauss & Co.,
9.75%, 01/15/2015 (G)........................... 1,007
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CONSUMER CYCLICAL -- (CONTINUED)
$ 1,390 Michaels Stores, Inc.,
11.38%, 11/01/2016 (I)(G)....................... $ 1,390
1,710 Neiman Marcus Group, Inc.,
10.38%, 10/15/2015 (G).......................... 1,870
1,355 NPC International, Inc.,
9.50%, 05/01/2014 (I)........................... 1,372
1,020 Perry Ellis International, Inc.,
8.88%, 09/15/2013............................... 1,023
1,595 Phillips Van-Heusen Corp.,
7.75%, 11/15/2023............................... 1,627
880 Ply Gem Industries, Inc.,
9.00%, 02/15/2012 (G)........................... 735
1,625 SGS International, Inc.,
12.00%, 12/15/2013.............................. 1,674
1,090 Stater Brothers Holdings, Inc.,
8.13%, 06/15/2012............................... 1,098
1,315 Technical Olympic USA, Inc.,
9.00%, 07/01/2010 (G)........................... 1,279
800 Technical Olympic USA, Inc.,
10.38%, 07/01/2012 (G).......................... 718
1,850 Tenneco, Inc.,
8.63%, 11/15/2014 (G)........................... 1,864
1,240 United Auto Group, Inc.,
9.63%, 03/15/2012............................... 1,307
--------
40,228
--------
CONSUMER STAPLES -- 2.5%
725 Constellation Brands, Inc.,
7.25%, 09/01/2016............................... 737
715 Dean Foods Co.,
7.00%, 06/01/2016............................... 723
840 Del Laboratories, Inc.,
10.49%, 11/01/2011 (L).......................... 867
1,735 Dole Food Co., Inc.,
8.63%, 05/01/2009............................... 1,698
1,440 Nutro Products, Inc.,
10.75%, 04/15/2014 (I).......................... 1,548
950 Pierre Foods, Inc.,
9.88%, 07/15/2012 (G)........................... 969
785 Pinnacle Foods Group, Inc.,
8.25%, 12/01/2013 (G)........................... 787
--------
7,329
--------
ENERGY -- 3.5%
410 Amerigas Partners L.P.,
7.13%, 05/20/2016............................... 405
596 Chesapeake Energy Corp.,
2.75%, 11/15/2035 +............................. 645
750 Chesapeake Energy Corp.,
6.63%, 01/15/2016............................... 734
1,000 Comstock Resources, Inc.,
6.88%, 03/01/2012 (G)........................... 946
1,545 Encore Acquisition Co.,
7.25%, 12/01/2017 (G)........................... 1,487
875 Ferrell Gas Partners L.P.,
8.75%, 06/15/2012............................... 903
</Table>
The accompanying notes are an integral part of these financial statements.
162
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ---------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
ENERGY -- (CONTINUED)
$ 1,190 Inergy L.P.,
8.25%, 03/01/2016............................... $ 1,235
1,014 Magnum Hunter Resources, Inc.,
9.60%, 03/15/2012............................... 1,070
200 Naftogaz Ukrainy,
8.13%, 09/30/2009............................... 193
1,000 Petrohawk Energy Corp.,
9.13%, 07/15/2013 (I)(G)........................ 1,020
1,500 Pogo Producing Co.,
7.88%, 05/01/2013 (I)........................... 1,526
--------
10,164
--------
FINANCE -- 13.4%
2,850 American Real Estate Partners L.P.,
7.13%, 02/15/2013............................... 2,843
1,420 Atlantic Broadband Finance LLC,
9.38%, 01/15/2014............................... 1,413
1,150 Avis Budget Car Rental,
7.91%, 05/15/2014 (I)(L)........................ 1,124
1,868 BCP Crystal Holdings Corp.,
9.63%, 06/15/2014............................... 2,050
1,375 El Paso Performance-Linked Trust,
7.75%, 07/15/2011 (I)........................... 1,423
675 Felcor Lodging L.P.,
8.50%, 06/01/2011............................... 721
1,430 Ford Motor Credit Co.,
6.75%, 08/15/2008............................... 1,386
4,115 Ford Motor Credit Co.,
6.94%, 01/15/2010 (L)........................... 3,914
1,900 Ford Motor Credit Co.,
7.38%, 02/01/2011............................... 1,815
1,810 Ford Motor Credit Co.,
9.82%, 04/15/2012 (L)........................... 1,888
5,205 General Motors Acceptance Corp.,
6.88%, 09/15/2011............................... 5,241
1,650 General Motors Acceptance Corp.,
6.88%, 08/28/2012............................... 1,654
1,300 General Motors Acceptance Corp.,
8.00%, 11/01/2031 (G)........................... 1,393
1,365 Hertz Corp.,
10.50%, 01/01/2016 (I)(G)....................... 1,498
1,190 Host Marriott L.P.,
6.75%, 06/01/2016............................... 1,159
865 LPL Holdings, Inc.,
10.75%, 12/15/2015 (I).......................... 913
1,320 Multiplan Corp.,
10.38%, 04/15/2016 (I).......................... 1,320
EUR 600 Nell Af Sarl,
8.38%, 08/15/2015 (I)........................... 805
600 Nell Af Sarl,
8.38%, 08/15/2015 (I)(G)........................ 609
1,250 Rainbow National Services LLC,
10.38%, 09/01/2014 (I).......................... 1,391
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 1,425 United Rentals NA, Inc.,
6.50%, 02/15/2012............................... $ 1,389
1,640 Universal City Florida,
10.24%, 05/01/2010 (L).......................... 1,687
1,295 Universal Hospital Services,
10.13%, 11/01/2011.............................. 1,369
--------
39,005
--------
HEALTH CARE -- 4.1%
1,150 Accellent, Inc.,
10.50%, 12/01/2013.............................. 1,202
1,430 Biovail Corp.,
7.88%, 04/01/2010............................... 1,434
1,040 CRC Health Corp.,
10.75%, 02/01/2016.............................. 1,087
1,200 Encore Medical Finance,
11.75%, 11/15/2014 (I).......................... 1,200
1,950 HCA, Inc.,
7.88%, 02/01/2011 (G)........................... 1,872
1,400 Healthsouth Corp.,
11.32%, 06/15/2014 (I)(L)....................... 1,432
1,300 IASIS Healthcare Capital Corp.,
8.75%, 06/15/2014............................... 1,255
1,080 National Mentor Holdings, Inc.,
11.25%, 07/01/2014 (I).......................... 1,134
1,450 Tenet Healthcare Corp.,
6.50%, 06/01/2012............................... 1,256
--------
11,872
--------
SERVICES -- 15.2%
1,125 Allbritton Communications Co.,
7.75%, 12/15/2012............................... 1,131
505 Allied Waste North America, Inc.,
5.75%, 02/15/2011............................... 486
400 Allied Waste North America, Inc.,
7.88%, 04/15/2013............................... 411
280 Allied Waste North America, Inc.,
9.25%, 09/01/2012............................... 298
1,000 AMC Entertainment, Inc.,
11.00%, 02/01/2016.............................. 1,106
1,260 Ameripath, Inc.,
10.50%, 04/01/2013.............................. 1,355
795 Cablevision Systems Corp.,
9.87%, 04/01/2009 (L)(G)........................ 833
1,190 Charter Communications Operating LLC,
8.38%, 04/30/2014 (I)........................... 1,223
1,570 Clarke American Corp.,
11.75%, 12/15/2013.............................. 1,641
1,295 Compucom Systems, Inc.,
12.00%, 11/01/2014 (I).......................... 1,303
1,945 Dex Media West LLC,
8.00%, 11/15/2013............................... 1,967
1,920 Dex Media West LLC,
9.88%, 08/15/2013............................... 2,084
2,000 Dow Jones CDX HY,
8.38%, 12/29/2011 (I)(G)........................ 2,030
</Table>
The accompanying notes are an integral part of these financial statements.
163
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 1,190 EchoStar Communications Corp.,
5.75%, 05/15/2008 (G)+.......................... $ 1,200
600 EchoStar DBS Corp.,
6.38%, 10/01/2011............................... 594
750 Education Management LLC,
8.75%, 06/01/2014 (I)........................... 769
750 Education Management LLC,
10.25%, 06/01/2016 (I).......................... 778
690 Herbst Gaming, Inc.,
7.00%, 11/15/2014 (G)........................... 667
1,535 Knowledge Learning Center, Inc.,
7.75%, 02/01/2015 (I)........................... 1,454
1,215 Liberty Media Corp.,
8.25%, 02/01/2030............................... 1,194
1,415 Lodgenet Entertainment Corp.,
9.50%, 06/15/2013............................... 1,514
1,480 MGM Mirage, Inc.,
6.75%, 09/01/2012............................... 1,436
760 MGM Mirage, Inc.,
6.75%, 04/01/2013............................... 737
750 MTR Gaming Group, Inc.,
9.00%, 06/01/2012 (I)........................... 760
1,200 Nielsen Finance LLC,
10.00%, 08/01/2014 (I).......................... 1,251
1,795 Penn National Gaming, Inc.,
6.75%, 03/01/2015 (G)........................... 1,750
700 Pokagon Gaming Authority,
10.38%, 06/15/2014 (I).......................... 751
1,365 Quebecor World Capital Corp.,
8.75%, 03/15/2016 (I)(G)........................ 1,307
1,480 Sheridan Group, Inc.,
10.25%, 08/15/2011.............................. 1,510
1,500 Sirius Satellite Radio, Inc.,
9.63%, 08/01/2013 (G)........................... 1,463
945 Stewart Enterprises, Inc.,
6.25%, 02/15/2013............................... 891
2,345 SunGard Data Systems, Inc.,
10.25%, 08/15/2015 (G).......................... 2,456
290 Time Warner Telecom Holdings, Inc.,
9.41%, 02/15/2011 (L)(G)........................ 296
899 Town Sports International, Inc.,
9.63%, 04/15/2011............................... 948
1,420 Unisys Corp.,
7.88%, 04/01/2008............................... 1,420
1,300 West Corp.,
9.50%, 10/15/2014 (I)........................... 1,297
1,430 Wynn Las Vegas LLC,
6.63%, 12/01/2014............................... 1,401
645 XM Satellite Radio, Inc.,
9.75%, 05/01/2014 (G)........................... 613
--------
44,325
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ---------- ---------
TECHNOLOGY -- 20.1%
1,287 Advanced Micro Devices, Inc.,
7.75%, 11/01/2012............................... 1,310
716 Amkor Technologies, Inc.,
10.50%, 05/01/2009.............................. 698
875 Broadview Networks Holdings, Inc.,
11.38%, 09/01/2012 (I).......................... 908
1,460 Centennial Communications Corp.,
11.12%, 01/01/2013 (L).......................... 1,518
3,695 Charter Communications Holdings LLC,
9.92%, 04/01/2011 (G)........................... 3,233
1,575 Charter Communications Operating LLC,
8.00%, 04/30/2012 (I)(G)........................ 1,607
1,200 Cincinnati Bell, Inc.,
7.25%, 07/15/2013 (G)........................... 1,236
2,130 Citizens Communications Co.,
9.00%, 08/15/2031............................... 2,314
1,125 Digicel Ltd.,
9.25%, 09/01/2012 (I)........................... 1,167
575 Dobson Cellular Systems,
8.38%, 11/01/2011 (I)........................... 597
1,100 Dobson Communications Corp.,
9.62%, 10/15/2012 (L)(G)........................ 1,117
1,300 Flextronics International Ltd.,
6.50%, 05/15/2013............................... 1,292
1,490 Hawaiian Telcom Communications, Inc.,
10.79%, 05/01/2013 (L).......................... 1,527
1,300 Inmarsat Finance plc,
7.63%, 06/30/2012............................... 1,341
1,590 Insight Midwest L.P.,
10.50%, 11/01/2010 (G).......................... 1,646
850 Intelsat Bermuda Ltd.,
11.25%, 06/15/2016 (I).......................... 925
2,150 Intelsat Bermuda Ltd.,
11.58%, 06/15/2013 (I)(L)....................... 2,279
1,465 Intelsat Subsidiary Holding Co. Ltd.,
8.25%, 01/15/2013............................... 1,492
1,600 Itron, Inc.,
7.75%, 05/15/2012............................... 1,636
1,000 L-3 Communications Corp.,
6.13%, 07/15/2013............................... 985
925 Leap Wireless International, Inc.,
9.38%, 11/01/2014 (I)(G)........................ 944
495 Level 3 Financing, Inc.,
9.25%, 11/01/2014 (I)........................... 498
875 Level 3 Financing, Inc.,
12.25%, 03/15/2013 (G).......................... 987
1,104 Lucent Technologies, Inc.,
6.45%, 03/15/2029............................... 988
1,500 MagnaChip Semiconductor,
6.88%, 12/15/2011 (G)........................... 1,260
1,425 Mediacom LLC,
9.50%, 01/15/2013............................... 1,462
1,470 Metro PCS Wireless, Inc.,
9.25%, 11/01/2014 (I)........................... 1,483
EUR 750 Nordic Telecommunications Co.,
8.25%, 05/01/2016 (I)........................... 1,043
</Table>
The accompanying notes are an integral part of these financial statements.
164
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ---------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
$ 2,500 Nortel Networks Ltd.,
10.75%, 07/15/2016 (I)(G)....................... $ 2,675
1,300 NTL Cable plc,
9.13%, 08/15/2016............................... 1,367
1,360 NXP B.V.,
8.12%, 10/15/2013 (I)(L)(G)..................... 1,372
2,430 Qwest Communications International, Inc.,
7.50%, 02/15/2014............................... 2,479
1,130 Qwest Corp.,
7.50%, 06/15/2023 (G)........................... 1,141
1,000 Qwest Corp.,
7.88%, 09/01/2011............................... 1,059
1,000 Rural Cellular Corp.,
8.25%, 03/15/2012............................... 1,029
233 SanDisk Corp.,
1.00%, 05/15/2013 (G)+.......................... 211
1,120 Sanmina-SCI Corp.,
8.13%, 03/01/2016 (G)........................... 1,102
1,210 Seagate Technology Holdings,
6.80%, 10/01/2016............................... 1,195
EUR 700 Sensata Technologies B.V.,
9.00%, 05/01/2016 (I)........................... 902
1,320 Solectron Global Finance Ltd.,
8.00%, 03/15/2016 (G)........................... 1,328
1,210 STATS ChipPAC Ltd.,
7.50%, 07/19/2010 (G)........................... 1,216
1,480 UGS Corp.,
10.00%, 06/01/2012.............................. 1,598
EUR 680 Wind Acquisition,
9.75%, 12/01/2015 (I)........................... 980
1,825 Windstream Corp.,
8.63%, 08/01/2016 (I)........................... 1,969
--------
59,116
--------
TRANSPORTATION -- 0.2%
690 PHI, Inc.,
7.13%, 04/15/2013 (I)........................... 652
--------
UTILITIES -- 6.8%
1,825 AES China Generating Co.,
8.25%, 06/26/2010............................... 1,808
1,395 Atlas Pipeline Partners L.P.,
8.13%, 12/15/2015............................... 1,423
2,000 Chivor S.S. E.S.P.,
9.75%, 12/30/2014............................... 2,220
1,600 Colorado Interstate Gas Co.,
6.80%, 11/15/2015............................... 1,626
1,080 Copano Energy LLC,
8.13%, 03/01/2016............................... 1,099
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
UTILITIES -- (CONTINUED)
$ 1,465 Edison Mission Energy,
7.50%, 06/15/2013 (I)........................... $ 1,505
698 Elwood Energy LLC,
8.16%, 07/05/2026............................... 739
1,350 Markwest Energy Partners L.P.,
8.50%, 07/15/2016 (I)........................... 1,360
1,000 Mirant Americas Generation LLC,
8.30%, 05/01/2011............................... 1,013
880 NRG Energy, Inc.,
7.25%, 02/01/2014............................... 890
1,485 NRG Energy, Inc.,
7.38%, 02/01/2016............................... 1,502
700 PSEG Energy Holdings LLC,
8.50%, 06/15/2011............................... 747
1,475 Reliant Energy, Inc.,
6.75%, 12/15/2014............................... 1,407
545 Semgroup L.P.,
8.75%, 11/15/2015,
8.75%, 11/15/2015 (I)........................... 549
1,260 Tenaska Alabama Partners L.P.,
7.00%, 06/30/2021 (I)........................... 1,247
850 Transcontinental Gas Pipe Line Corp.,
6.40%, 04/15/2016............................... 846
--------
19,981
--------
Total corporate bonds: non-investment grade
(cost $272,207)................................. $276,079
--------
SENIOR FLOATING RATE LOAN INTERESTS (V) -- 0.8%
HEALTH CARE -- 0.8%
$ 2,300 HCA, Inc., 9.37, 09/15/2007 (AA)(Q)............... $ 2,277
--------
Total senior floating rate loan interests
(cost $2,300)................................... $ 2,277
--------
<Caption>
SHARES
- ---------
COMMON STOCK -- 0.0%
CONSUMER CYCLICAL -- 0.0%
1 Hosiery Corp. of America, Inc. Class A (D)(H)(A).. $ --
--------
TECHNOLOGY -- 0.0%
-- XO Holdings, Inc. (D)(H)(G)....................... --
--------
Total common stock
(cost $21)...................................... $ --
--------
WARRANTS -- 0.0%
TECHNOLOGY -- 0.0%
-- XO Holdings, Inc. ................................ $ --
--------
Total warrants
(cost $--)...................................... $ --
--------
</Table>
The accompanying notes are an integral part of these financial statements.
165
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
PREFERRED STOCK -- 0.0%
TECHNOLOGY -- 0.0%
20 Adelphia Communications Corp. (D)+................ $ 2
--------
Total preferred stock
(cost $488)..................................... $ 2
--------
Total long term investments
(cost $286,554)................................. $289,821
--------
SHORT-TERM INVESTMENTS -- 20.8%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 20.8%
$ 60,694 Navigator Prime Portfolio......................... 60,694
--------
Total short-term investments
(cost $60,694).................................. $ 60,694
--------
Total investments in securities
(cost $347,248) (C)............................. $350,515
========
</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 10.95% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October 31,
2006 rounds to zero.
(B) All principal amounts are in U.S. dollars unless otherwise indicated.
<Table>
EUR -- EURO
</Table>
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $347,632 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $ 5,380
Unrealized depreciation......................... (2,497)
-------
Net unrealized appreciation..................... $ 2,883
=======
</Table>
(D) Currently non-income producing.
(F) The company is in bankruptcy. The bank loan or bond held by the
fund is not in default.
(G) Security is partially on loan at October 31, 2006.
(H) The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks a
readily available market or if its valuation has not changed for a certain
period of time.
<Table>
<Caption>
PERIOD COST
ACQUIRED SHARES/PAR SECURITY BASIS
-------- ---------- -------- -----
October, 1994 1 Hosiery Corp. of America, $21
Inc. Class A - 144A
May, 2006 -- XO Holdings, Inc. --
</Table>
The aggregate value of these securities at October 31, 2006 rounds
to zero.
(I) 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 qualified institutional buyers.
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, 2006, was $63,429, which represents 21.72% of total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(AA) The interest rate disclosed for these securities represents an
estimated yield as of October 31, 2006.
(Q) The cost of securities purchased on a when-issued or delayed
delivery basis at October 31, 2006 was $2,850.
(V) Senior loans in which the Fund invests generally pay interest at
rates which are periodically adjusted by reference to a base short-term,
floating lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European banks,
such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime rate
offered by one or more major United States Banks, or (iii) the bank's
certificate of deposit rate. Senior floating rate interests often require
prepayments from excess cash flows or permit the borrower to repay at its
election. The rate at which the borrower repays cannot be predicted with
accuracy. As a result, the actual remaining maturity may be substantially
less than the stated maturities shown. The interest rate indicated is the
rate in effect at October 31, 2006.
+ Convertible debt security.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Euro Buy $2,955 $2,900 12/01/2006 $ 55
Euro Sell 6,029 6,055 12/01/2006 26
Euro Sell 2,955 2,920 12/01/2006 (35)
----
$ 46
====
</Table>
The accompanying notes are an integral part of these financial statements.
166
THE HARTFORD INCOME ALLOCATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 99.9%
FIXED INCOME FUNDS -- 92.8%
301 Hartford Floating Rate Fund, Class Y.............. $ 3,048
587 Hartford High Yield Fund, Class Y................. 4,653
320 Hartford Income Fund, Class Y..................... 3,301
606 Hartford Inflation Plus Fund, Class Y............. 6,337
923 Hartford Short Duration Fund, Class Y............. 9,123
902 Hartford Total Return Bond Fund, Class Y.......... 9,658
3 Hartford U.S. Government Securities Fund, Class
Y............................................... 32
-------
Total fixed income funds
(cost $36,335).................................. $36,152
-------
MONEY MARKET FUND -- 7.1%
2,765 Hartford Money Market Fund, Class Y............... $ 2,765
-------
Total money market fund
(cost $2,765)................................... $ 2,765
-------
Total investments in affiliated
investment companies
(cost $39,100) (C).............................. $38,917
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $39,507 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................... $ 12
Unrealized depreciation........................... (602)
-----
Net unrealized depreciation....................... $(590)
=====
</Table>
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
167
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- 0.1%
GENERAL OBLIGATIONS -- 0.1%
$ 150 State of Illinois, Taxable Pension,
5.10%, 06/01/2033............................... $ 145
--------
Total municipal bonds
(cost $150)..................................... $ 145
--------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 13.0%
FINANCE -- 12.7%
$ 137 AmeriCredit Automobile Receivables Trust,
5.20%, 03/06/2011............................... $ 137
3,968 Banc of America Commercial Mortgage, Inc.,
4.08%, 12/10/2042 (P)........................... 75
3,106 Banc of America Commercial Mortgage, Inc.,
5.50%, 11/10/2039 (I)(P)........................ 80
25,174 Banc of America Commercial Mortgage, Inc.,
5.50%, 07/10/2043 (I)(P)........................ 261
8,075 Banc of America Commercial Mortgage, Inc.,
5.75%, 06/10/2039 (P)........................... 75
120 Banc of America Securities Auto Trust,
4.49%, 02/18/2013............................... 118
54 Bank One Issuance Trust,
6.46%, 12/15/2010 (L)........................... 55
200 Bayview Commercial Asset Trust,
5.69%, 04/25/2036 (I)(L)........................ 200
250 Bayview Financial Acquisition Trust,
5.82%, 02/28/2040 (I)(L)........................ 251
200 Bear Stearns Commercial Mortgage Securities, Inc.,
5.29%, 06/11/2041............................... 201
3,202 Bear Stearns Commercial Mortgage Securities, Inc.,
5.50%, 02/11/2041 (I)(P)........................ 54
50 Capital Auto Receivables Asset Trust,
4.73%, 09/15/2010............................... 49
50 Capital Auto Receivables Asset Trust,
5.77%, 05/20/2010 (I)........................... 50
75 Capital Auto Receivables Asset Trust,
6.15%, 04/20/2011 (I)........................... 75
230 Capital One Auto Finance Trust,
4.32%, 05/15/2010............................... 227
230 Capital Trust RE CDO Ltd.,
6.57%, 10/20/2043 (I)(L)........................ 230
1,372 CBA Commercial Small Balance Commercial Mortgage,
7.00%, 07/25/2035 (I)(P)........................ 67
1,021 CBA Commercial Small Balance Commercial Mortgage,
7.00%, 06/25/2038 (I)(P)........................ 67
20 Chase Manhattan Auto Owner Trust,
2.57%, 02/16/2010............................... 20
150 Chuo Mitsui Trust & Banking Ltd.,
5.51%, 12/29/2049 (I)........................... 144
200 Citibank Credit Card Issuance Trust,
5.70%, 05/15/2013............................... 202
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 2,328 Citigroup Commercial Mortgage Trust,
4.10%, 10/15/2041 (I)(P)........................ $ 83
300 Citigroup Commercial Mortgage Trust,
5.06%, 05/15/2043............................... 292
500 Citigroup Commercial Mortgage Trust,
5.91%, 03/15/2049 (L)........................... 517
6,262 Commercial Mortgage Pass-Through Certificates,
5.50%, 03/10/2039 (I)(P)........................ 138
200 Commercial Mortgage Pass-Through Certificates,
5.76%, 02/05/2019 (L)........................... 201
49 Countrywide Asset-Backed Certificates,
5.46%, 07/25/2035............................... 49
2,818 CS First Boston Mortgage Securities Corp.,
4.15%, 11/15/2037 (I)(P)........................ 82
200 CS First Boston Mortgage Securities Corp.,
7.27%, 11/15/2019 (I)(L)........................ 196
200 Daimler Chrysler Auto Trust,
5.14%, 09/08/2012............................... 200
100 Equity One ABS, Inc.,
5.46%, 12/25/2033............................... 99
50 Equity One ABS, Inc.,
7.82%, 07/25/2034 (L)........................... 51
164 First Union-Lehman Brothers-Bank of America,
6.56%, 11/18/2035............................... 166
200 Ford Credit Auto Owner Trust,
4.19%, 07/15/2009............................... 198
13,280 GE Business Loan Trust,
6.14%, 05/15/2034 (I)(P)........................ 166
178 GE Business Loan Trust,
6.32%, 05/15/2034 (I)(L)........................ 178
200 GE Capital Commercial Mortgage Corp.,
5.00%, 12/10/2037............................... 199
1,000 GE Capital Commercial Mortgage Corp.,
5.52%, 03/10/2044 (L)........................... 1,004
55,375 GE Capital Commercial Mortgage Corp.,
6.35%, 11/10/2045 (I)(P)........................ 124
140 GMAC Commercial Mortgage Securities, Inc.,
3.34%, 05/10/2036............................... 133
200 GMAC Commercial Mortgage Securities, Inc.,
4.65%, 04/10/2040............................... 196
200 GMAC Commercial Mortgage Securities, Inc.,
5.30%, 08/10/2038............................... 200
270 GMAC Mortgage Corp. Loan Trust,
5.75%, 10/25/2036............................... 271
88 Goldman Sachs Auto Loan Trust,
4.98%, 11/15/2013............................... 88
48 Green Tree Financial Corp.,
6.48%, 12/01/2030............................... 48
17 Green Tree Financial Corp.,
7.30%, 01/15/2026............................... 17
15 Green Tree Financial Corp.,
7.35%, 05/15/2027............................... 16
200 Greenwich Capital Commercial Funding Corp.,
4.02%, 01/05/2036............................... 195
</Table>
The accompanying notes are an integral part of these financial statements.
168
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 108 Hasco NIM Trust,
6.25%, 12/26/2035 (I)........................... $ 107
94 Home Equity Asset Trust,
4.75%, 06/27/2035 (I)........................... 93
200 Hyundai Auto Receivables Trust,
5.52%, 11/15/2012............................... 200
4,640 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.07%, 01/15/2042 (P)........................... 68
200 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.13%, 01/12/2038............................... 195
161 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.37%, 10/12/2037............................... 158
188 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.95%, 01/12/2037............................... 183
220 JP Morgan Chase Commercial Mortgage Securities
Corp.,
5.47%, 04/15/2043 (L)........................... 223
2,349 JP Morgan Chase Commercial Mortgage Securities
Corp.,
5.50%, 01/15/2038 (I)(P)........................ 66
250 JP Morgan Chase Commercial Mortgage Securities
Corp.,
5.54%, 12/12/2044............................... 252
17,610 JP Morgan Chase Commercial Mortgage Securities
Corp.,
6.00%, 09/12/2037 (I)(P)........................ 197
350 JP Morgan Chase Commercial Mortgage Securities
Corp.,
6.07%, 02/15/2020 (I)(L)........................ 350
190 JP Morgan Chase Commercial Mortgage Securities
Corp.,
6.16%, 05/12/2034............................... 198
450 LB-UBS Commercial Mortgage Trust,
5.22%, 02/15/2031 (L)........................... 447
25,969 LB-UBS Commercial Mortgage Trust,
5.26%, 06/15/2036 (I)(P)........................ 162
200 Lehman Brothers Commercial Mortgage Trust,
6.13%, 07/15/2018 (I)(L)........................ 199
120 Lehman Brothers Small Balance Commercial,
5.62%, 09/25/2036 (I)........................... 120
250 LNR CDO Ltd.,
6.17%, 05/28/2043 (I)(L)........................ 250
103 Long Beach Asset Holdings Corp.,
5.78%, 04/25/2046 (I)........................... 103
350 Marlin Leasing Receivables LLC,
4.63%, 11/17/2008 (I)........................... 347
81 Marlin Leasing Receivables LLC,
5.09%, 08/15/2012 (I)........................... 81
240 Marlin Leasing Receivables LLC,
5.33%, 09/16/2013............................... 241
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 200 Merrill Lynch Mortgage Trust,
4.92%, 10/12/2041............................... $ 194
200 Morgan Stanley Capital I,
4.17%, 12/15/2041............................... 195
16,357 Morgan Stanley Capital I,
6.00%, 06/12/2047 (I)(P)........................ 202
103 Morgan Stanley Dean Witter Capital I,
5.38%, 01/15/2039............................... 103
33 Navistar Financial Corp. Owner Trust,
3.08%, 11/15/2009............................... 33
150 Providian Master Note Trust,
5.87%, 03/15/2015 (L)........................... 150
70 PSE&G Transition Funding LLC,
6.61%, 06/15/2015............................... 75
80 Renaissance Home Equity Loan Trust,
5.75%, 05/25/2036 (L)........................... 81
200 Renaissance Home Equity Loan Trust,
6.16%, 05/25/2036............................... 201
10 Soundview Home Equity Loan Trust,
8.64%, 05/25/2030............................... 10
250 Wachovia Auto Loan Owner Trust,
5.15%, 07/20/2012 (I)........................... 250
260 Wachovia Auto Loan Owner Trust,
5.29%, 06/20/2012 (I)........................... 261
200 Wachovia Bank Commercial Mortgage Trust,
4.39%, 02/15/2041............................... 193
100 Wachovia Bank Commercial Mortgage Trust,
4.87%, 02/15/2035............................... 98
6,987 Wachovia Bank Commercial Mortgage Trust,
5.50%, 02/15/2041 (I)(P)........................ 165
18 WFS Financial Owner Trust,
3.05%, 12/20/2010............................... 18
26 WFS Financial Owner Trust,
3.13%, 05/17/2012............................... 25
157 WFS Financial Owner Trust,
3.25%, 05/20/2011............................... 156
--------
14,395
--------
TRANSPORTATION -- 0.3%
88 Continental Airlines, Inc.,
6.80%, 08/02/2018............................... 88
100 Continental Airlines, Inc.,
7.49%, 10/02/2010............................... 105
130 Continental Airlines, Inc.,
7.57%, 12/01/2006............................... 130
--------
323
--------
Total asset & commercial mortgage backed
securities
(cost $14,806).................................. $ 14,718
--------
CORPORATE BONDS: INVESTMENT GRADE -- 20.9%
BASIC MATERIALS -- 0.6%
$ 125 Falconbridge Ltd.,
6.00%, 10/15/2015............................... $ 126
125 ICI Wilmington, Inc.,
5.63%, 12/01/2013............................... 124
</Table>
The accompanying notes are an integral part of these financial statements.
169
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
BASIC MATERIALS -- (CONTINUED)
$ 100 International Paper Co.,
5.25%, 04/01/2016............................... $ 96
65 Lubrizol Corp.,
5.50%, 10/01/2014............................... 64
230 Vale Overseas Ltd.,
8.25%, 01/17/2034............................... 266
--------
676
--------
CAPITAL GOODS -- 0.2%
200 Hutchison Whampoa International Ltd.,
6.25%, 01/24/2014 (I)........................... 208
--------
CONSUMER CYCLICAL -- 1.0%
150 Centex Corp.,
5.70%, 05/15/2014............................... 148
75 CRH America, Inc.,
5.30%, 10/15/2013............................... 73
100 D.R. Horton, Inc.,
5.63%, 09/15/2014............................... 96
200 DaimlerChrysler N.A. Holdings Corp.,
6.50%, 11/15/2013............................... 207
125 JC Penney Corp., Inc.,
7.95%, 04/01/2017............................... 143
210 K. Hovnanian Enterprises,
6.00%, 01/15/2010............................... 200
100 Lennar Corp.,
5.95%, 03/01/2013............................... 99
125 Pulte Homes, Inc.,
5.20%, 02/15/2015............................... 118
--------
1,084
--------
CONSUMER STAPLES -- 0.4%
420 Anheuser-Busch Cos., Inc.,
5.75%, 01/15/2011............................... 418
--------
ENERGY -- 1.3%
165 Amerada Hess Corp.,
7.13%, 03/15/2033............................... 184
250 Anadarko Petroleum Corp.,
5.95%, 09/15/2016............................... 254
215 Anadarko Petroleum Corp.,
6.45%, 09/15/2036............................... 223
75 Consumers Energy Co.,
5.38%, 04/15/2013............................... 74
50 Consumers Energy Co.,
6.00%, 02/15/2014............................... 51
160 Energy Transfer Partners L.P.,
6.13%, 02/15/2017............................... 163
175 Nexen, Inc.,
7.88%, 03/15/2032............................... 209
255 TNK-BP Finance S.A.,
7.50%, 07/18/2016 (I)........................... 267
--------
1,425
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- 10.3%
$ 125 Ace INA Holdings, Inc.,
5.88%, 06/15/2014............................... $ 128
100 AES El Salvador Trust,
6.75%, 02/01/2016 (I)........................... 99
245 Aetna, Inc.,
5.75%, 06/15/2011............................... 249
310 Aetna, Inc.,
6.63%, 06/15/2036............................... 334
100 AMB Property L.P.,
7.50%, 06/30/2018............................... 106
672 American Express Credit Corp.,
6.80%, 09/01/2066............................... 715
750 Ameriprise Financial, Inc.,
7.52%, 06/01/2066............................... 816
150 Archstone-Smith Operating Trust,
5.25%, 05/01/2015............................... 147
150 Arden Realty L.P.,
5.20%, 09/01/2011............................... 150
100 Camden Property Trust,
5.00%, 06/15/2015............................... 96
125 Capital One Bank,
5.13%, 02/15/2014............................... 123
75 Capital One Bank,
6.50%, 06/13/2013............................... 79
150 CIT Group, Inc.,
5.13%, 09/30/2014............................... 146
90 Deutsche Bank Capital Funding Trust,
5.63%, 01/19/2016 (I)........................... 88
450 ERAC USA Finance Co.,
5.90%, 11/15/2015 (I)........................... 455
100 Farmers Exchange Capital,
7.20%, 07/15/2048 (I)........................... 103
125 Goldman Sachs Group, Inc.,
5.15%, 01/15/2014............................... 123
75 Goldman Sachs Group, Inc.,
5.25%, 04/01/2013............................... 75
500 Goldman Sachs Group, Inc.,
6.45%, 05/01/2036............................... 526
225 HSBC Capital Funding L.P.,
4.61%, 12/29/2049 (I)(L)........................ 210
165 iStar Financial, Inc.,
5.70%, 03/01/2014............................... 164
280 iStar Financial, Inc.,
5.95%, 10/15/2013 (I)........................... 282
50 JP Morgan Chase & Co.,
5.13%, 09/15/2014............................... 49
200 Kazkommerts International B.V.,
8.00%, 11/03/2015 (I)........................... 206
200 Kuzneski (Bank of Moscow),
7.50%, 11/25/2015 (L)........................... 204
157 Lehman Brothers Holdings, Inc.,
5.50%, 04/04/2016............................... 157
235 Liberty Mutual Group,
7.50%, 08/15/2036............................... 261
700 Lincoln National Corp.,
7.00%, 05/17/2066 (L)........................... 737
</Table>
The accompanying notes are an integral part of these financial statements.
170
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 175 MBNA Corp.,
6.13%, 03/01/2013............................... $ 183
200 Mizuho Financial Group, Inc.,
5.79%, 04/15/2014 (I)........................... 202
175 Morgan Stanley,
6.25%, 08/09/2026............................... 183
100 Natexis AMBS Co. LLC,
8.44%, 12/29/2049 (I)........................... 105
150 Northern Rock plc,
5.60%, 04/30/2049 (I)........................... 146
200 Rabobank Capital Funding II,
5.26%, 12/31/2049 (I)........................... 196
300 RBD Capital,
6.50%, 08/11/2008............................... 302
158 Residential Capital Corp.,
6.00%, 02/22/2011............................... 158
110 Residential Capital Corp.,
6.38%, 06/30/2010............................... 112
100 Resona Bank Ltd.,
5.85%, 12/31/2049 (I)........................... 98
100 RSHB Capital,
7.18%, 05/16/2013 (I)........................... 105
100 Sagicor Financial Ltd.,
7.50%, 05/12/2016 (I)........................... 101
100 Santander Central Hispano Issuances Ltd.,
7.63%, 09/14/2010............................... 109
75 Shurgard Storage Centers, Inc.,
5.88%, 03/15/2013............................... 77
100 Sumitomo Mitsui Banking,
5.63%, 12/29/2049 (I)........................... 98
100 Suntrust Preferred Capital,
5.85%, 12/29/2049 (L)........................... 101
100 Swedbank Foreningssparbanken,
9.00%, 12/29/2049 (I)........................... 111
150 Toll Brothers Finance Corp.,
5.15%, 05/15/2015............................... 136
125 TuranAlem Finance B.V.,
8.00%, 03/24/2014............................... 126
100 UFJ Finance Aruba AEC,
6.75%, 07/15/2013............................... 107
685 USB Capital IX,
6.19%, 03/29/2049 (L)........................... 699
200 Ventas Realty L.P.,
7.13%, 06/01/2015............................... 206
170 VTB Capital,
7.50%, 10/12/2011 (K)........................... 181
400 Washington Mutual Preferred Funding,
6.53%, 12/29/2049 (I)........................... 398
100 Washington Mutual, Inc.,
4.63%, 04/01/2014............................... 94
190 Western Union Co.,
5.93%, 10/01/2016 (I)........................... 193
150 Westfield Capital Corp. Ltd.,
5.13%, 11/15/2014 (I)........................... 146
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 50 Westpac Capital Trust III,
5.82%, 12/29/2049 (I)........................... $ 50
100 Westpac Capital Trust IV,
5.26%, 12/29/2049 (I)........................... 94
--------
11,645
--------
FOREIGN GOVERNMENTS -- 0.1%
80 Argentina (Republic of),
7.00%, 09/12/2013............................... 75
30 El Salvador (Republic of),
7.65%, 06/15/2035............................... 33
25 El Salvador (Republic of),
8.25%, 04/10/2032 (I)........................... 29
--------
137
--------
HEALTH CARE -- 0.3%
290 Teva Pharmaceuticals Finance LLC,
6.15%, 02/01/2036............................... 284
100 Universal Health Services, Inc.,
6.75%, 11/15/2011............................... 103
--------
387
--------
SERVICES -- 2.2%
175 Belo Corp.,
7.25%, 09/15/2027............................... 171
200 COX Communications, Inc.,
4.63%, 06/01/2013............................... 187
190 COX Communications, Inc.,
5.45%, 12/15/2014............................... 186
30 Electronic Data Systems Corp.,
3.88%, 07/15/2023 +............................. 31
150 Hyatt Equities LLC,
6.88%, 06/15/2007 (I)........................... 151
150 Marriott International, Inc.,
5.81%, 11/10/2015............................... 148
150 Mashantucket Western Pequot Revenue Bond,
5.91%, 09/01/2021 (I)........................... 145
150 News America Holdings, Inc.,
7.75%, 01/20/2024............................... 168
50 News America Holdings, Inc.,
9.25%, 02/01/2013............................... 59
100 Sheraton Holding Corp.,
7.38%, 11/15/2015............................... 101
50 Time Warner Entertainment Co. L.P.,
8.38%, 03/15/2023............................... 59
410 Time Warner Entertainment Co. L.P.,
8.38%, 07/15/2033............................... 500
160 Turner Broadcasting System, Inc.,
8.38%, 07/01/2013............................... 181
430 Viacom, Inc.,
6.88%, 04/30/2036............................... 433
--------
2,520
--------
</Table>
The accompanying notes are an integral part of these financial statements.
171
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- 2.3%
$ 140 America Movil S.A. de C.V.,
6.38%, 03/01/2035............................... $ 137
210 Cingular Wireless Services, Inc.,
8.13%, 05/01/2012............................... 237
100 Comcast Cable Communications, Inc.,
6.75%, 01/30/2011............................... 105
100 Comcast Cable Communications, Inc.,
8.88%, 05/01/2017............................... 121
150 Deutsche Telekom International Finance B.V.,
5.25%, 07/22/2013............................... 147
150 France Telecom S.A.,
7.75%, 03/01/2011 (L)........................... 165
150 Motorola, Inc.,
8.00%, 11/01/2011............................... 167
392 Siemens Finance,
6.13%, 08/17/2026 (I)........................... 408
100 Sprint Capital Corp.,
6.90%, 05/01/2019............................... 105
175 Sprint Capital Corp.,
8.75%, 03/15/2032............................... 216
230 Telecom Italia Capital,
7.20%, 07/18/2036............................... 242
150 Tele-Communications, Inc.,
7.88%, 08/01/2013............................... 168
275 Telefonica Emisiones SAU,
6.42%, 06/20/2016............................... 285
75 Valor Telecommunications Enterprises LLC,
7.75%, 02/15/2015............................... 80
--------
2,583
--------
TRANSPORTATION -- 0.3%
125 American Airlines, Inc.,
7.86%, 10/01/2011............................... 135
110 Carnival Corp.,
6.65%, 01/15/2028............................... 117
100 Continental Airlines, Inc.,
6.56%, 02/15/2012............................... 104
--------
356
--------
UTILITIES -- 1.9%
100 Appalachian Power Co.,
5.00%, 06/01/2017............................... 94
75 Detroit Edison Securitizaton,
6.19%, 03/01/2013............................... 78
420 Dominion Resources, Inc.,
7.20%, 09/15/2014............................... 459
360 Kinder Morgan Finance Co.,
5.70%, 01/05/2016............................... 334
125 Kinder Morgan, Inc.,
5.15%, 03/01/2015............................... 113
165 NGC Corp.,
7.13%, 05/15/2018............................... 153
152 Oneok Partners L.P.,
6.15%, 10/01/2016............................... 154
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
UTILITIES -- (CONTINUED)
$ 280 Oneok Partners L.P.,
6.65%, 10/01/2036............................... $ 288
100 Texas-New Mexico Power Co.,
6.13%, 06/01/2008............................... 101
400 TransAlta Corp.,
5.75%, 12/15/2013............................... 400
--------
2,174
--------
Total corporate bonds: investment grade
(cost $23,400).................................. $ 23,613
--------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 30.4%
BASIC MATERIALS -- 3.2%
$ 100 Asia Aluminum Holdings Ltd.,
8.00%, 12/23/2011 (I)........................... $ 98
200 Boise Cascade LLC,
7.13%, 10/15/2014............................... 189
225 Bowater, Inc.,
8.39%, 03/15/2010 (L)........................... 227
120 Bowater, Inc.,
9.50%, 10/15/2012............................... 121
100 California Steel Industries, Inc.,
6.13%, 03/15/2014............................... 93
150 Chaparral Steel Co.,
10.00%, 07/15/2013.............................. 168
120 Chemtura Corp.,
6.88%, 06/01/2016............................... 117
100 Citigroup (Jsc Severstal),
9.25%, 04/19/2014............................... 108
110 Crown Americas, Inc.,
7.75%, 11/15/2015............................... 113
225 Equistar Chemicals L.P.,
8.75%, 02/15/2009............................... 234
100 Evraz Group S.A.,
8.25%, 11/10/2015 (I)........................... 103
165 Georgia Gulf Corp.,
10.75%, 10/15/2016 (I).......................... 161
225 Goodyear Tire & Rubber Co.,
11.25%, 03/01/2011.............................. 248
100 Graham Packaging Co., Inc.,
9.88%, 10/15/2014............................... 100
125 Huntsman International LLC,
7.88%, 11/13/2014 (Q)(I)........................ 125
102 Koppers, Inc.,
9.88%, 10/15/2013............................... 110
200 Norampac, Inc.,
6.75%, 06/01/2013............................... 193
250 Owens-Illinois, Inc.,
7.80%, 05/15/2018............................... 243
250 Peabody Energy Corp.,
6.88%, 03/15/2013............................... 254
150 PolyOne Corp.,
8.88%, 05/01/2012............................... 152
150 Smurfit Kappa Funding PLC,
9.63%, 10/01/2012............................... 159
100 Smurfit-Stone Container Enterprises, Inc.,
8.38%, 07/01/2012............................... 98
</Table>
The accompanying notes are an integral part of these financial statements.
172
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
BASIC MATERIALS -- (CONTINUED)
$ 50 Vedanta Resource plc,
6.63%, 02/22/2010............................... $ 49
150 Verso Paper Holdings LLC,
11.38%, 08/01/2016 (I).......................... 152
--------
3,615
--------
CAPITAL GOODS -- 0.8%
450 Bombardier, Inc.,
6.30%, 05/01/2014 (I)........................... 413
100 Bombardier, Inc.,
6.75%, 05/01/2012 (I)........................... 97
372 Xerox Corp.,
6.75%, 02/01/2017............................... 379
--------
889
--------
CONSUMER CYCLICAL -- 3.4%
100 Albertson's, Inc.,
7.25%, 05/01/2013............................... 101
350 ArvinMeritor, Inc.,
8.75%, 03/01/2012............................... 344
85 Asbury Automotive Group, Inc.,
9.00%, 06/15/2012............................... 88
150 Autonation, Inc.,
7.37%, 04/15/2013 (L)........................... 151
200 Beazer Homes USA, Inc.,
8.63%, 05/15/2011............................... 204
130 Delhaize America, Inc.,
9.00%, 04/15/2031............................... 153
245 Ford Capital B.V.,
9.50%, 06/01/2010............................... 239
310 General Motors Corp.,
6.38%, 05/01/2008............................... 304
100 Grupo Gigante SA,
8.75%, 04/13/2016............................... 101
70 Interline Brands, Inc.,
8.13%, 06/15/2014............................... 72
180 K Hovnanian Enterprises,
8.63%, 01/15/2017............................... 186
200 KB Home & Broad Home Corp.,
6.38%, 08/15/2011............................... 197
280 Michaels Stores, Inc.,
11.38%, 11/01/2016 (I).......................... 280
150 Neiman Marcus Group, Inc.,
10.38%, 10/15/2015.............................. 164
100 Perry Ellis International, Inc.,
8.88%, 09/15/2013............................... 100
150 SGS International, Inc.,
12.00%, 12/15/2013.............................. 155
105 Stater Brothers Holdings, Inc.,
8.13%, 06/15/2012............................... 106
190 Supervalu, Inc.,
7.50%, 11/15/2014............................... 193
100 Technical Olympic USA, Inc.,
9.00%, 07/01/2010............................... 97
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CONSUMER CYCLICAL -- (CONTINUED)
$ 375 Tenneco, Inc.,
8.63%, 11/15/2014............................... $ 378
180 Urbi Desarrollos Urbanos,
8.50%, 04/19/2016 (K)........................... 191
--------
3,804
--------
CONSUMER STAPLES -- 1.0%
90 Chaoda Modern Agriculture,
7.75%, 02/08/2010............................... 89
240 Constellation Brands, Inc.,
7.25%, 09/01/2016............................... 244
230 Dean Foods Co.,
7.00%, 06/01/2016............................... 233
250 Del Laboratories, Inc.,
10.49%, 11/01/2011 (L).......................... 258
150 Dole Food Co., Inc.,
8.63%, 05/01/2009............................... 147
150 Nutro Products, Inc.,
10.75%, 04/15/2014 (I).......................... 161
--------
1,132
--------
ENERGY -- 1.5%
125 Amerigas Partners L.P.,
7.13%, 05/20/2016............................... 123
100 Braskem S.A.,
8.00%, 01/26/2017 (I)........................... 103
100 Braskem S.A.,
9.38%, 06/01/2015............................... 111
43 Chesapeake Energy Corp.,
2.75%, 11/15/2035 +............................. 47
100 Chesapeake Energy Corp.,
7.63%, 07/15/2013............................... 104
150 Cie Gen Geophysique,
7.50%, 05/15/2015............................... 148
150 Encore Acquisition Co.,
7.25%, 12/01/2017............................... 144
150 Inergy L.P.,
8.25%, 03/01/2016............................... 156
80 MEI Euro Finance Ltd.,
8.75%, 05/22/2010............................... 79
100 Naftogaz Ukrainy,
8.13%, 09/30/2009............................... 97
100 Panva Gas Holdings Ltd.,
8.25%, 09/23/2011............................... 100
270 Petrohawk Energy Corp.,
9.13%, 07/15/2013 (I)........................... 275
100 Petrozuata Finance, Inc.,
8.22%, 04/01/2017 (I)........................... 98
150 Pogo Producing Co.,
7.88%, 05/01/2013 (I)........................... 153
--------
1,738
--------
FINANCE -- 3.9%
250 American Real Estate Partners L.P.,
7.13%, 02/15/2013............................... 249
200 Atlantic Broadband Finance LLC,
9.38%, 01/15/2014............................... 199
</Table>
The accompanying notes are an integral part of these financial statements.
173
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ---------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 300 Avis Budget Car Rental,
7.91%, 05/15/2014 (I)(L)........................ $ 293
110 CCSA Finance Ltd.,
7.88%, 05/17/2016 (I)........................... 112
100 Dredner (Exim Ukraine),
7.75%, 09/23/2009............................... 101
150 El Paso Performance-Linked Trust,
7.75%, 07/15/2011 (I)........................... 155
760 Ford Motor Credit Co.,
5.80%, 01/12/2009............................... 726
305 Ford Motor Credit Co.,
7.38%, 02/01/2011............................... 291
290 Ford Motor Credit Co.,
9.82%, 04/15/2012 (L)........................... 302
675 General Motors Acceptance Corp.,
6.88%, 09/15/2011............................... 680
465 General Motors Acceptance Corp.,
8.00%, 11/01/2031............................... 498
150 Hertz Corp.,
10.50%, 01/01/2016 (I).......................... 165
100 Host Marriott L.P.,
6.38%, 03/15/2015............................... 97
100 Itabo Finance S.A.,
10.88%, 10/05/2013 (I).......................... 105
125 Nell Af Sarl,
8.38%, 08/15/2015 (I)........................... 127
100 Sibacademfinance plc,
9.00%, 05/12/2009............................... 100
240 United Rentals N.A., Inc.,
6.50%, 02/15/2012............................... 234
--------
4,434
--------
FOREIGN GOVERNMENTS -- 1.0%
BRL 398 Brazil (Republic of),
12.50%, 01/05/2022.............................. 183
70 Colombia (Republic of),
8.25%, 12/22/2014............................... 79
100 Colombia (Republic of),
7.22%, 11/16/2015 (L)........................... 103
70 Government of Jamaica,
9.00%, 06/02/2015............................... 75
250 Iraq (Republic of),
5.80%, 01/15/2028............................... 168
90 Panama (Republic of),
8.13%, 04/28/2034 (H)........................... 105
140 Peru (Republic of),
3.00%, 03/07/2027............................... 107
EUR 50 Philippines (Republic of),
6.25%, 03/15/2016............................... 67
100 Turkey (Republic of),
7.00%, 09/26/2016............................... 101
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FOREIGN GOVERNMENTS -- (CONTINUED)
$ 70 Turkey (Republic of),
7.25%, 03/15/2015............................... $ 72
60 Turkey (Republic of),
9.00%, 06/30/2011............................... 66
--------
1,126
--------
HEALTH CARE -- 1.5%
270 Accellent, Inc.,
10.50%, 12/01/2013.............................. 282
250 Biovail Corp.,
7.88%, 04/01/2010............................... 251
150 CRC Health Corp.,
10.75%, 02/01/2016.............................. 157
250 Encore Medical Finance,
11.75%, 11/15/2014 (I).......................... 250
270 HCA, Inc.,
7.88%, 02/01/2011............................... 259
230 Healthsouth Corp.,
11.32%, 06/15/2014 (I)(L)....................... 235
150 IASIS Healthcare Capital Corp.,
8.75%, 06/15/2014............................... 145
150 National Mentor Holdings, Inc.,
11.25%, 07/01/2014 (I).......................... 158
--------
1,737
--------
SERVICES -- 6.9%
110 Allied Waste North America, Inc.,
5.75%, 02/15/2011............................... 106
250 AMC Entertainment, Inc.,
11.00%, 02/01/2016.............................. 260
125 Cap Cana Sa,
9.63%, 11/03/2013 (I)........................... 125
125 Clarke American Corp.,
11.75%, 12/15/2013.............................. 131
250 Compucom Systems, Inc.,
12.00%, 11/01/2014 (I).......................... 252
130 Dex Media West LLC,
8.00%, 11/15/2013............................... 131
195 Dex Media West LLC,
9.88%, 08/15/2013............................... 212
4,000 Dow Jones CDX HY,
8.38%, 12/29/2011 (I)........................... 4,060
150 Echostar DBS Corp.,
6.38%, 10/01/2011............................... 149
140 Education Management LLC,
8.75%, 06/01/2014 (I)........................... 144
110 Education Management LLC,
10.25%, 06/01/2016 (I).......................... 114
100 Hilton Hotels Corp.,
7.50%, 12/15/2017............................... 106
85 Knowledge Learning Center, Inc.,
7.75%, 02/01/2015 (I)........................... 81
150 Lodgenet Entertainment Corp.,
9.50%, 06/15/2013............................... 161
100 MTR Gaming Group, Inc.,
9.00%, 06/01/2012 (I)........................... 101
</Table>
The accompanying notes are an integral part of these financial statements.
174
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 230 Nielsen Finance LLC,
10.00%, 08/01/2014 (I).......................... $ 240
100 Pokagon Gaming Authority,
10.38%, 06/15/2014 (I).......................... 107
110 Reader's Digest Association, Inc.,
6.50%, 03/01/2011............................... 106
150 Scholastic Corp.,
5.00%, 04/15/2013............................... 134
150 Sheridan Group, Inc.,
10.25%, 08/15/2011.............................. 153
100 Sirius Satellite Radio, Inc.,
9.63%, 08/01/2013............................... 98
200 SunGard Data Systems, Inc.,
10.25%, 08/15/2015.............................. 210
80 Town Sports International, Inc.,
9.63%, 04/15/2011............................... 84
250 Unisys Corp.,
7.88%, 04/01/2008............................... 250
250 West Corp.,
9.50%, 10/15/2014 (I)........................... 249
--------
7,764
--------
TECHNOLOGY -- 5.4%
155 Advanced Micro Devices, Inc.,
7.75%, 11/01/2012............................... 158
280 Charter Communications Operating LLC,
8.00%, 04/30/2012 (I)........................... 286
240 Citizens Communications Co.,
9.00%, 08/15/2031............................... 261
125 CSC Holdings, Inc.,
8.13%, 07/15/2009............................... 129
100 Digicel Ltd.,
9.25%, 09/01/2012 (I)........................... 104
300 Dobson Cellular Systems,
8.38%, 11/01/2011 (I)........................... 312
180 Flextronics International Ltd.,
6.50%, 05/15/2013............................... 179
150 Inmarsat Finance plc,
7.63%, 06/30/2012............................... 155
135 Insight Midwest L.P.,
10.50%, 11/01/2010.............................. 140
235 Intelsat Bermuda Ltd.,
9.25%, 06/15/2016 (I)........................... 251
100 Itron, Inc.,
7.75%, 05/15/2012............................... 102
160 Leap Wireless International, Inc.,
9.38%, 11/01/2014 (I)........................... 163
275 Level 3 Financing, Inc.,
9.25%, 11/01/2014 (I)........................... 277
125 Level 3 Financing, Inc.,
12.25%, 03/15/2013.............................. 141
100 MagnaChip Semiconductor,
6.88%, 12/15/2011............................... 84
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
$ 230 Mediacom LLC,
9.50%, 01/15/2013............................... $ 236
250 MetroPCS, Inc.,
9.25%, 11/01/2014 (I)........................... 252
100 Mobile Telesystems Finance S.A.,
8.00%, 01/28/2012............................... 104
450 Nortel Networks Ltd.,
10.75%, 07/15/2016 (I).......................... 482
150 NTL Cable plc,
9.13%, 08/15/2016............................... 158
130 NXP B.V.,
8.12%, 10/15/2013 (I)(L)........................ 131
200 Panamsat Corp.,
9.00%, 06/15/2016 (I)........................... 209
440 Qwest Communications International, Inc.,
7.50%, 02/15/2014............................... 449
150 Rogers Wireless, Inc.,
6.38%, 03/01/2014............................... 150
25 SanDisk Corp.,
1.00%, 05/15/2013 +............................. 23
130 Sanmina-SCI Corp.,
8.13%, 03/01/2016............................... 128
225 Seagate Technology Holdings,
6.80%, 10/01/2016............................... 222
150 Solectron Global Finance Ltd.,
8.00%, 03/15/2016............................... 151
250 STATS ChipPAC Ltd.,
7.50%, 07/19/2010............................... 251
150 UGS Corp.,
10.00%, 06/01/2012.............................. 162
100 Vimpel Communications,
8.25%, 05/23/2016 (I)........................... 104
105 Windstream Corp.,
8.63%, 08/01/2016 (I)........................... 113
--------
6,067
--------
TRANSPORTATION -- 0.1%
135 PHI, Inc.,
7.13%, 04/15/2013 (I)........................... 128
--------
UTILITIES -- 1.7%
100 AES China Generating Co.,
8.25%, 06/26/2010............................... 99
130 Atlas Pipeline Partners L.P.,
8.13%, 12/15/2015............................... 133
100 Chivor S.A. E.S.P.,
9.75%, 12/30/2014............................... 111
50 Colorado Interstate Gas Co.,
6.80%, 11/15/2015............................... 51
105 Copano Energy LLC,
8.13%, 03/01/2016............................... 107
250 Edison Mission Energy,
7.50%, 06/15/2013 (I)........................... 257
82 Elwood Energy LLC,
8.16%, 07/05/2026............................... 87
125 Markwest Energy Partners L.P.,
8.50%, 07/15/2016 (I)........................... 126
</Table>
The accompanying notes are an integral part of these financial statements.
175
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 240 Mirant Americas Generation LLC,
8.30%, 05/01/2011............................... $ 243
100 Mirant JPSCO Finance Ltd.,
11.00%, 07/06/2016 (I).......................... 101
240 NRG Energy, Inc.,
7.38%, 02/01/2016............................... 243
97 Tenaska Alabama Partners L.P.,
7.00%, 06/30/2021 (I)........................... 96
100 Tennessee Gas Pipeline Co.,
8.38%, 06/15/2032............................... 116
150 Transcontinental Gas Pipe Line Corp.,
6.40%, 04/15/2016............................... 149
--------
1,919
--------
Total corporate bonds: non-investment grade
(cost $34,000).................................. $ 34,353
--------
SENIOR FLOATING RATE LOAN INTERESTS: NON-INVESTMENT GRADE (V) -- 5.0%
BASIC MATERIALS -- 0.8%
$ 484 Compass Minerals Group, Inc.,
6.88%, 12/22/2012 (N)........................... $ 483
400 Huntsman International, Inc.,
7.07%, 08/16/2012 (N)........................... 400
--------
883
--------
CONSUMER CYCLICAL -- 0.4%
499 William Carter Co.,
6.87%, 07/14/2012 (N)........................... 498
--------
FINANCE -- 0.8%
363 Ameritrade Holding Corp.,
6.82%, 12/31/2011 (N)........................... 363
500 General Growth Properties,
6.60%, 02/24/2010 (N)........................... 496
--------
859
--------
HEALTH CARE -- 0.8%
499 Fresenius Medical Care AG,
6.79%, 03/23/2012 (N)........................... 495
400 Lifepoint Hospitals, Inc.,
6.98%, 04/15/2012 (AA).......................... 397
--------
892
--------
SERVICES -- 1.8%
500 Gray Television, Inc.,
6.86%, 11/22/2012 (AA)(Q)....................... 499
500 MGM Mirage, Inc.,
6.59%, 10/03/2011 (N)........................... 494
500 Regal Cinemas, Inc.,
7.10%, 11/10/2010 (AA)(Q)....................... 499
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SERVICES -- (CONTINUED)
$ 250 UPC Financing Partnership,
7.62%, 03/31/2013 (AA)(Q)....................... $ 250
250 UPC Financing Partnership,
7.62%, 12/31/2013 (AA)(Q)....................... 250
--------
1,992
--------
TECHNOLOGY -- 0.4%
499 Cincinnati Bell, Inc.,
6.93%, 08/31/2012 (N)........................... 498
--------
Total senior floating rate loan interests non-
investment grade
(cost $5,633)................................... $ 5,622
--------
U.S. GOVERNMENT AGENCIES -- 26.3%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 4.0%
$ 200 4.10% 2014........................................ $ 195
1,220 5.50% 2016........................................ 1,270
504 5.50% 2032........................................ 501
2,100 6.00% 2032........................................ 2,140
390 6.25% 2032........................................ 452
--------
4,558
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 17.2%
1,104 5.00% 2017 -- 2035................................ 1,079
272 5.225% 2035....................................... 269
3,315 5.50% 2032 -- 2034................................ 3,283
9,315 6.00% 2036........................................ 9,374
5,388 6.50% 2036........................................ 5,492
--------
19,497
--------
SMALL BUSINESS ADMINISTRATION PARTICIPATION
CERTIFICATES -- 5.1%
914 4.92% 2023........................................ 903
959 5.35% 2026........................................ 965
192 5.54% 2026........................................ 195
984 5.57% 2026........................................ 1,001
969 5.64% 2026........................................ 991
365 5.82% 2026........................................ 376
1,000 5.87% 2026........................................ 1,032
325 6.07% 2026........................................ 339
--------
5,802
--------
Total U.S. government agencies
(cost $29,695).................................. $ 29,857
--------
U.S. GOVERNMENT SECURITIES -- 2.8%
U.S. TREASURY SECURITIES -- 2.8%
$ 145 4.63% 2011........................................ $ 145
2,977 4.88% 2009 -- 2016................................ 3,030
--------
Total U.S. government securities
(cost $3,157)................................... $ 3,175
--------
Total long-term investments
(cost $110,841)................................. $111,483
--------
</Table>
The accompanying notes are an integral part of these financial statements.
176
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- 2.9%
FINANCE -- 0.5%
$ 573 State Street Bank Money Market Fund............... $ 573
--------
REPURCHASE AGREEMENTS -- 2.3%
858 BNP Paribas Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 858
880 RBS Greenwich Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 880
858 UBS Securities LLC Repurchase Agreement,
5.24%, 11/01/2006............................... 858
--------
2,596
--------
U.S. TREASURY BILL -- 0.1%
125 U.S. Treasury Bill,
4.82%, 12/14/2006 (M)(S)........................ 124
--------
Total short-term investments
(cost $3,293)................................... $ 3,293
--------
Total investments in securities
(cost $114,134) (C)............................. $114,776
========
</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 10.07% of total net assets at October 31, 2006.
(B) All principal amounts are in U.S. dollars unless otherwise
indicated.
<Table>
BRL -- Brazilian Real
EUR -- EURO
</Table>
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $114,159 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $1,320
Unrealized depreciation.......................... (703)
------
Net unrealized appreciation...................... $ 617
======
</Table>
(H) The following securities are considered illiquid. Illiquid securities are
often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks
a readily available market or if its valuation has not changed for a
certain period of time.
<Table>
<Caption>
PERIOD
ACQUIRED SHARES/PAR SECURITY COST BASIS
-------- ---------- -------- ----------
September/2006 90 Panama (Republic of), $105
8.13%, 04/28/2034
</Table>
The aggregate value of these securities at October 31, 2006 was $105,
which represents 0.09% of total net assets.
(I) 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 qualified institutional buyers. 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, 2006, was $22,777, which represents 20.12% of total net
assets.
(K) Securities contain some restrictions as to public resale. These
securities comply with Regulation S, rules governing offers and sales
made outside the United States without registration under the Securities
Act of 1933, and are determined to be liquid. At October 31, 2006, the
market value of these securities amounted to $372 or 0.33% of net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(N) The interest rate disclosed for these securities represents the effective
yield as of October 31, 2006.
(P) The interest rates disclosed for interest only strips represent effective
yields based upon estimated future cash flows at October 31, 2006.
(AA) The interest rate disclosed for these securities represents an estimated
yield as of October 31, 2006.
(Q) The cost of securities purchased on a when-issued or delayed
delivery basis at October 31, 2006 was $1,628.
(S) Security pledged as initial margin deposit for open futures
contracts at October 31, 2006.
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
----------- --------- -------- ---------- --------------
CBT 2 Year U.S. Treasury Note futures contracts 35 Long December 2006 $ 16
CBT 5 Year U.S. Treasury Note futures contracts 35 Long December 2006 6
CBT 10 Year U.S. Treasury Note futures contracts 18 Long December 2006 8
U.S. Long Bond futures contracts 14 Short December 2006 (27)
----
$ 3
====
</Table>
These contracts had a market value of $14,374 as of October 31, 2006.
The accompanying notes are an integral part of these financial statements.
177
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
(V) Senior loans in which the Fund invests generally pay interest at
rates which are periodically adjusted by reference to a base short-term,
floating lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime
rate offered by one or more major United States Banks, or (iii) the bank's
certificate of deposit rate. Senior floating rate interests often require
prepayments from excess cash flows or permit the borrower to repay at its
election. The rate at which the borrower repays cannot be predicted with
accuracy. As a result, the actual remaining maturity may be substantially
less than the stated maturities shown. The interest rate indicated is the
rate in effect at October 31, 2006.
+ Convertible debt security.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- --------- --------------
Euro Buy $1,023 $1,004 12/1/2006 $ 19
Euro Buy 69 68 12/5/2006 1
Euro Sell 1,023 1,011 12/1/2006 (12)
Japanese Yen Buy 542 540 11/7/2006 (2)
Japanese Yen Buy 2,006 1,974 12/7/2006 (32)
Japanese Yen Sell 542 542 11/7/2006 --
Japanese Yen Sell 2,807 2,825 12/7/2006 (18)
----
$(44)
====
</Table>
The accompanying notes are an integral part of these financial statements.
178
THE HARTFORD INFLATION PLUS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 2.7%
FINANCE -- 2.7%
$ 799 American Express Credit Account Master Trust,
5.82%, 02/15/2012 (I)(L)........................ $ 801
2,362 Commercial Mortgage Pass Through Certificates,
5.57%, 11/15/2017 (I)(L)........................ 2,363
2,546 Countrywide Asset Backed Certificates,
5.52%, 07/25/2035 (L)........................... 2,547
3,000 Credit Suisse Mortgage Capital Certificates,
5.48%, 04/15/2021 (I)(L)........................ 3,001
2,901 Lehman Brothers Commercial Mortgage Trust,
5.41%, 09/15/2021 (I)(L)........................ 2,901
3,000 Morgan Stanley Capital I,
5.57%, 08/15/2019 (I)(L)........................ 3,001
7,059 Prudential Commercial Mortgage Trust,
5.81%, 02/11/2036 (I)(P)........................ 324
3,000 TW Hotel Funding LLC,
5.58%, 01/15/2021 (I)(L)........................ 3,001
3,000 Wachovia Bank Commercial Mortgage Trust,
5.41%, 08/11/2018 (I)(L)........................ 3,000
--------
Total asset & commercial
mortgage backed securities
(cost $20,938).................................. $ 20,939
--------
CORPORATE BONDS: INVESTMENT GRADE -- 0.3%
FINANCE -- 0.3%
$ 2,600 SLM Corp.,
5.44%, 04/01/2009 (L)........................... $ 2,500
--------
Total corporate bonds: investment grade
(cost $2,603)................................... $ 2,500
--------
U.S. GOVERNMENT SECURITIES -- 88.9%
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.5%
$ 3,000 Tennessee Valley Authority
3.375% 2007 (O)................................. $ 3,846
--------
U.S. TREASURY SECURITIES -- 88.4%
29,170 0.875% 2010 (O)................................... 29,585
72,137 1.625% 2015 (O)................................... 72,840
40,235 1.875% 2013 (O)................................... 43,255
196,362 2.00% 2014-2016 (O)............................... 203,468
33,000 2.00% 2026 (O).................................... 32,401
19,120 2.375% 2011 (O)................................... 19,536
75,990 2.375% 2025 (O)................................... 83,208
41,430 3.00% 2012 (O).................................... 48,431
1,715 3.375% 2012 (O)................................... 2,059
20,550 3.375% 2032 (O)................................... 29,224
20,455 3.50% 2011 (O).................................... 24,927
36,010 3.625% 2028 (O)................................... 56,058
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
U.S. TREASURY SECURITIES -- (CONTINUED)
$ 7,140 3.875% 2029 (O)................................... $ 11,403
13,835 4.25% 2010 (O).................................... 17,603
--------
673,998
--------
Total U.S. government securities (cost
$688,024)....................................... $677,844
--------
SENIOR FLOATING RATE LOAN INTERESTS NON-INVESTMENT GRADE (V) -- 7.7%
BASIC MATERIALS -- 0.8%
$ 3,934 Compass Minerals Group, Inc.,
6.88%, 12/22/2012............................... $ 3,931
2,000 Huntsman International, Inc.,
7.07%, 08/16/2012 (AA).......................... 1,998
--------
5,929
--------
CONSUMER CYCLICAL -- 1.2%
500 Invista B.V.,
6.88%, 04/30/2010 (AA).......................... 501
500 Invista B.V.,
6.88%, 04/30/2010 (AA).......................... 502
3,990 Supervalu Inc.,
7.17%, 05/30/2013 (N)........................... 4,000
3,995 William Carter Co.,
6.87%, 07/14/2012 (N)........................... 3,988
--------
8,991
--------
FINANCE -- 0.8%
3,629 Ameritrade Holding Corp.,
6.82%, 12/31/2011 (N)........................... 3,626
3,000 General Growth Properties,
6.63%, 02/24/2010 (N)........................... 2,977
--------
6,603
--------
HEALTH CARE -- 1.6%
3,990 Community Health Systems,
7.14%, 08/19/2011 (N)........................... 3,987
3,990 Fresenius Medical Care AG,
6.79%, 03/23/2012 (N)........................... 3,959
4,000 Lifepoint Hospitals, Inc.,
6.94%, 04/15/2012 (AA).......................... 3,982
--------
11,928
--------
SERVICES -- 0.9%
3,000 MGM Mirage, Inc.,
6.59%, 10/03/2011 (N)........................... 2,966
3,990 Regal Cinemas, Inc.,
7.13%, 11/10/2010 (N)........................... 3,981
--------
6,947
--------
TECHNOLOGY -- 1.2%
2,009 Cincinnati Bell, Inc.,
6.93%, 08/31/2012 (N)........................... 2,005
2,000 Mediacom Broadband,
7.42%, 01/31/2015 (AA).......................... 1,982
</Table>
The accompanying notes are an integral part of these financial statements.
179
THE HARTFORD INFLATION PLUS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SENIOR FLOATING RATE LOAN INTERESTS NON-INVESTMENT GRADE
(V) -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
$ 1,000 Mediacom LLC,
7.23%, 01/31/2015 (N)........................... $ 999
3,980 R.H. Donnelly, Inc.,
6.93%, 06/30/2011 (N)........................... 3,965
--------
8,951
--------
UTILITIES -- 1.2%
3,491 Mirant North America LLC,
7.08%, 01/03/2013 (N)........................... 3,483
4,000 NRG Energy, Inc.,
7.32%, 01/27/2013 (AA).......................... 4,016
1,805 Pike Electric, Inc.,
6.88%, 12/10/2012 (N)........................... 1,803
--------
9,302
--------
Total senior floating rate loan interests non-
investment grade
(cost $58,699).................................. $ 58,651
--------
SENIOR FLOATING RATE INTERESTS INVESTMENT GRADE (V) -- 0.5%
FINANCE -- 0.5%
$ 3,500 Residential Capital Corp.,
6.60%, 07/28/2008............................... $ 3,478
--------
Total senior floating rate interests investment
grade
(cost $3,484)................................... $ 3,478
--------
Total long-term investments
(cost $773,748)................................. $763,412
--------
SHORT-TERM INVESTMENTS -- 1.2%
CONSUMER STAPLES -- 0.3%
$ 2,042 Cargill, Inc.,
5.31%, 11/01/2006............................... $ 2,042
--------
FINANCE -- 0.0%
23 State Street Bank Money Market Fund............... 23
--------
REPURCHASE AGREEMENTS -- 0.9%
2,183 BNP Paribas Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 2,183
2,238 RBS Greenwich Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 2,238
2,183 UBS Securities LLC Repurchase Agreement,
5.24%, 11/01/2006............................... 2,183
--------
6,604
--------
U.S. TREASURY SECURITIES -- 0.0%
250 U.S. Treasury Bill,
4.83%, 12/14/2006 (M)(S)........................ 248
--------
Total short-term investments
(cost $8,917)................................... $ 8,917
--------
Total investments in securities
(cost $782,665) (C)............................. $772,329
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $792,618 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $ --
Unrealized depreciation........................ (20,289)
--------
Net unrealized depreciation.................... $(20,289)
========
</Table>
(I) 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 qualified institutional buyers. 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, 2006, was $18,392, which represents 2.41% of total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(N) The interest rate disclosed for these securities represents the
effective yield as of October 31, 2006.
(O) U.S. Treasury inflation-protection securities (TIPS) are securities
in which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
(P) The interest rates disclosed for interest only strips represent
effective yields based upon estimated future cash flows at October 31,
2006.
(AA) The interest rate disclosed for these securities represents an
estimated yield as of October 31, 2006.
(V) Senior loans in which the Fund invests generally pay interest at rates
which are periodically adjusted by reference to a base short-term,
floating lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime
rate offered by one or more major United States Banks, or (iii) the bank's
certificate of deposit rate. Senior floating rate interests often require
prepayments from excess cash flows or permit the borrower to repay at its
election. The rate at which the borrower repays cannot be predicted with
accuracy. As a result, the actual remaining maturity may be substantially
less than the stated maturities shown. The interest rate indicated is the
rate in effect at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(S) Security pledged as initial margin deposit for open futures contracts
at October 31, 2006.
The accompanying notes are an integral part of these financial statements.
180
- --------------------------------------------------------------------------------
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
- ----------- --------- -------- --------------- --------------
CBT 10 Year U.S. Treasury Note futures
contracts 50 Short December 2006 $(67)
====
</Table>
These contracts had a market value of $5,411 as of October 31, 2006.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Japanese Yen Buy $15,217 $15,000 11/07/2006 $ 217
Japanese Yen Buy 3,552 3,500 11/09/2006 52
Japanese Yen Buy 15,135 15,000 11/13/2006 135
Japanese Yen Sell 15,217 14,920 11/07/2006 (297)
Japanese Yen Sell 3,552 3,532 11/09/2006 (20)
Japanese Yen Sell 15,135 14,945 11/13/2006 (190)
-----
$(103)
=====
</Table>
The accompanying notes are an integral part of these financial statements.
181
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 95.5%
AUSTRALIA -- 0.5%
161 Aristocrat Leisure Ltd. (A)(G).................... $ 1,737
--------
AUSTRIA -- 1.3%
68 Erste Bank Der Oesterreichischen Sparkassen AG
(A)............................................. 4,598
--------
BELGIUM -- 0.9%
16 KBC Groep N.V. (A)................................ 1,749
26 UCB S.A. (A)...................................... 1,630
--------
3,379
--------
BRAZIL -- 0.4%
56 Companhia Vale do Rio Doce ADR.................... 1,422
--------
CANADA -- 6.7%
95 Cameco Corp. ..................................... 3,330
17 Potash Corp. of Saskatchewan...................... 2,098
88 Research In Motion Ltd. (D)(G).................... 10,373
84 Rogers Communications, Inc. Class B (G)........... 5,032
118 SNC-Lavalin Group, Inc. .......................... 3,213
--------
24,046
--------
FRANCE -- 14.7%
139 Alcatel S.A. (A).................................. 1,761
49 BNP Paribas (A)................................... 5,370
34 Cie Generale d'Optique Essilor International S.A.
(D)(A)(G)....................................... 3,543
66 Groupe Danone (A)(G).............................. 9,707
27 Iliad S.A. (A).................................... 2,282
47 Pinault-Printemps-Redoute S.A. (A)(G)............. 7,048
6 Sanofi-Aventis S.A. (A)........................... 549
20 Unibail (A)(G).................................... 4,403
37 Vallourec (A)(G).................................. 9,081
149 Veolia Environnment S.A. (A)(G)................... 9,095
--------
52,839
--------
GERMANY -- 5.3%
31 Allianz SE (A).................................... 5,776
40 Deutsche Boerse AG (A)............................ 6,510
44 KarstadtQuelle AG (D)(A)(G)....................... 1,038
18 Linde AG (A)...................................... 1,811
36 Salzgitter AG (A)................................. 3,855
--------
18,990
--------
HONG KONG -- 2.9%
2,223 BOC Hong Kong Holdings Ltd. (A)................... 4,967
239 China Mobile Ltd. (A)............................. 1,942
2,806 Shun Tak Holdings Ltd. (A)(G)..................... 3,702
--------
10,611
--------
IRELAND -- 2.4%
253 Elan Corp. plc ADR (D)............................ 3,661
74 Ryanair Holdings plc ADR (D)(G)................... 4,958
--------
8,619
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
JAPAN -- 16.8%
65 Canon, Inc. (A)................................... $ 3,482
158 Daiichi Sankyo Co., Ltd. (A)...................... 4,683
109 Eisai Co., Ltd. (A)(G)............................ 5,586
98 Elpida Memory, Inc. (D)(A)(G)..................... 4,555
2 Japan Tobacco, Inc. (A)........................... 8,287
39 Nintendo Co. Ltd. (A)............................. 8,052
18 ORIX Corp. (A) PFIC............................... 4,978
4 Rakuten, Inc. (A)(G).............................. 1,774
101 Sharp Corp. (A)(G)................................ 1,798
215 Shinsei Bank Ltd. (A)............................. 1,240
188 Sumitomo Realty & Development Co., Ltd. (A)(G).... 6,229
191 Suzuki Motor Corp. (A)(G)......................... 5,414
9 Tokyo Electron Ltd. (A)........................... 701
66 Toyota Motor Corp. (A)............................ 3,885
--------
60,664
--------
MEXICO -- 2.7%
163 America Movil S.A. de C.V. ADR.................... 6,966
28 Fomento Economico Mexicano S.A. de C.V. ADR....... 2,698
--------
9,664
--------
NETHERLANDS -- 3.9%
172 ASML Holding N.V. (D)(A).......................... 3,919
17 Euronext (A)(G)................................... 1,722
241 Koninklijke Philips Electronics N.V. (A).......... 8,401
--------
14,042
--------
SOUTH KOREA -- 1.8%
10 Samsung Electronics Co., Ltd. (A)................. 6,554
--------
SPAIN -- 1.0%
151 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 3,633
--------
SWEDEN -- 1.4%
312 Swedish Match AB (A).............................. 4,989
--------
SWITZERLAND -- 8.2%
325 Logitech International S.A. (D)(A)................ 8,538
12 Nestle S.A. (A)................................... 3,978
11 Nobel Biocare Holding AG (A)...................... 3,034
17 Roche Holding AG (A).............................. 3,049
98 Swatch Group AG (A)............................... 3,918
121 UBS AG (A)........................................ 7,213
--------
29,730
--------
TAIWAN -- 2.2%
59 High Tech Computer Corp. (A)...................... 1,461
1,008 Hon Hai Precision Industry Co., Ltd. (A).......... 6,522
--------
7,983
--------
UNITED KINGDOM -- 22.4%
60 Admiral Group plc (A)............................. 1,063
432 Alliance Boots plc (A)............................ 6,671
2,224 Arm Holdings plc (A)(G)........................... 4,988
24 AstraZeneca plc (A)............................... 1,422
415 British Airways plc (D)(A)........................ 3,632
202 British Land Co. plc (A).......................... 5,763
</Table>
The accompanying notes are an integral part of these financial statements.
182
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
1,539 Carphone Warehouse Group plc (A)(G)............... $ 8,300
946 Debenhams plc (D)(A).............................. 3,387
1,284 EMI Group plc (A)................................. 6,603
756 Kesa Electricals plc (A).......................... 5,038
579 Man Group plc (A)................................. 5,382
135 Reckitt Benckiser plc (A)......................... 5,881
424 Reed Elsevier plc (A)............................. 4,823
190 Standard Chartered plc (A)........................ 5,352
1,423 Tesco plc (A)..................................... 10,672
41 Xstrata plc (A)................................... 1,767
--------
80,744
--------
Total common stock
(cost $295,721)................................. $344,244
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 28.8%
REPURCHASE AGREEMENTS -- 3.2%
$ 2,362 Banc of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 2,362
1,390 Credit Suisse Securities TriParty Joint
Repurchase Agreement,
5.32%, 11/01/2006............................... 1,390
56 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 56
1,112 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 1,112
2,334 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 2,334
1,278 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 1,278
3,140 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 3,140
--------
11,672
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 25.6%
92,173 Navigator Prime Portfolio......................... $ 92,173
--------
Total short-term investments
(cost $103,845)................................. $103,845
--------
Total investments in securities
(cost $399,566) (C)............................. $448,089
========
</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 95.47% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $300,493, which represents 83.34% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $401,982 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $47,361
Unrealized depreciation......................... (1,254)
-------
Net unrealized appreciation..................... $46,107
=======
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
183
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Buy $ 365 $ 363 11/01/2006 $ 2
Euro Buy 29 29 11/02/2006 --
Euro Sell 1,082 1,080 11/01/2006 (2)
Euro Sell 514 514 11/03/2006 --
Japanese Yen Buy 95 94 11/01/2006 1
Japanese Yen Sell 1,691 1,686 11/02/2006 (5)
Japanese Yen Sell 2,438 2,420 11/06/2006 (18)
Swedish Krona Buy 306 305 11/01/2006 1
Swedish Krona Buy 68 68 11/02/2006 --
Swiss Francs Buy 586 584 11/01/2006 2
Swiss Francs Buy 373 372 11/02/2006 1
Swiss Francs Sell 2,099 2,100 11/03/2006 1
----
$(17)
====
</Table>
PFIC -- Passive Foreign Investment Company
DIVERSIFICATION BY INDUSTRY
As of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ---------------------------------------------------------------
Basic Materials 6.0%
- ---------------------------------------------------------------
Consumer Cyclical 15.7
- ---------------------------------------------------------------
Consumer Staples 9.9
- ---------------------------------------------------------------
Energy 0.5
- ---------------------------------------------------------------
Finance 22.1
- ---------------------------------------------------------------
Health Care 9.4
- ---------------------------------------------------------------
Services 4.5
- ---------------------------------------------------------------
Technology 22.5
- ---------------------------------------------------------------
Transportation 2.4
- ---------------------------------------------------------------
Utilities 2.5
- ---------------------------------------------------------------
Short-Term Investments 28.8
- ---------------------------------------------------------------
Other Assets & Liabilities (24.3)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
184
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 96.0%
AUSTRALIA -- 1.6%
218 Westpac Banking Corp. (A)(G)...................... $ 4,040
--------
BELGIUM -- 0.5%
20 UCB S.A. (A)(G)................................... 1,223
--------
BRAZIL -- 4.1%
331 All America Latina Logistica S.A. ................ 2,892
294 Companhia Vale do Rio Doce ADR.................... 7,472
--------
10,364
--------
CANADA -- 6.4%
77 Alcan, Inc. (G)................................... 3,593
76 Cameco Corp. ..................................... 2,677
57 EnCana Corp. (G).................................. 2,716
107 OPTI Canada, Inc. (D)............................. 1,714
169 Talisman Energy, Inc. (G)......................... 2,777
36 Teck Cominco Ltd. Class B (D)..................... 2,672
--------
16,149
--------
CHINA -- 0.3%
1,431 Industrial and Commercial Bank of China (G)....... 640
--------
FRANCE -- 15.3%
44 Accor S.A. (A)(G)................................. 3,044
119 Axa S.A. (A)(G)................................... 4,530
33 BNP Paribas (A)(G)................................ 3,580
36 Cie Generale d'Optique Essilor International S.A.
(D)(A)(G)....................................... 3,739
25 CNP Assurances (A)(G)............................. 2,624
59 Electricite de France (D)(A)(G)................... 3,549
35 Lafarge S.A. (A)(G)............................... 4,709
23 LVMH Moet Hennessy Louis Vuitton S.A. (A)(G)...... 2,384
51 Peugeot S.A. (A)(G)............................... 2,904
63 Sanofi-Aventis S.A. (A)(G)........................ 5,369
35 Total S.A. (A)(G)................................. 2,370
--------
38,802
--------
GERMANY -- 9.4%
16 Deutsche Boerse AG (A)............................ 2,559
186 Deutsche Telekom AG (A)........................... 3,217
36 Henkel KGaA Vorzug (G)............................ 4,782
39 Muenchener Rueckversicherungs-Gesellschaft AG
(A)............................................. 6,378
44 RWE Ag (A)........................................ 4,393
13 SAP AG ADR (A).................................... 2,511
--------
23,840
--------
HONG KONG -- 0.9%
280 Hong Kong Exchanges & Clearing Ltd. (A)(G)........ 2,212
--------
INDIA -- 1.4%
49 Infosys Technologies Ltd. (A)..................... 2,290
133 Satyam Computer Services Ltd. (A)................. 1,296
--------
3,586
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
IRELAND -- 1.5%
72 Ryanair Holdings plc (D)(A)....................... $ 807
44 Ryanair Holdings plc ADR (D)(G)................... 2,907
--------
3,714
--------
ITALY -- 6.5%
803 Banca Intesa S.p.A. (A)(G)........................ 5,485
134 Bulgari S.p.A. (A)(G)............................. 1,870
34 Tod's S.p.A. (A).................................. 2,939
739 UniCredito Italiano S.p.A. (A).................... 6,124
--------
16,418
--------
JAPAN -- 14.0%
80 Astellas Pharma, Inc. (A)......................... 3,590
48 Canon, Inc. (A)................................... 2,585
95 Daiichi Sankyo Co., Ltd. (A)...................... 2,814
66 Denso Corp. (A)................................... 2,501
67 Eisai Co., Ltd. (A)............................... 3,442
-- Japan Tobacco, Inc. (A)........................... 709
128 Matsui Securities Co., Ltd. (A)(G)................ 1,128
298 Mitsubishi Heavy Industries Ltd. (A).............. 1,328
-- Mitsubishi UFJ Financial Group, Inc. (A)(G)....... 3,793
4 Rakuten, Inc. (A)(G).............................. 1,606
79 Sega Sammy Holdings, Inc. (A)(G).................. 1,972
104 Seven & I Holdings Co., Ltd. (A)(G)............... 3,343
438 Shinsei Bank Ltd. (A)............................. 2,525
65 Sony Corp. (A)(G)................................. 2,661
38 Terumo Corp. (A)(G)............................... 1,519
--------
35,516
--------
LUXEMBOURG -- 0.6%
59 Ternium S.A. ADR (D).............................. 1,447
--------
MEXICO -- 1.2%
338 Empresas ICA S.A. (D)(G).......................... 1,158
18 Grupo Aeroportuario del Pacifico S.A. de CV....... 675
360 Wal-Mart de Mexico................................ 1,253
--------
3,086
--------
NETHERLANDS -- 1.5%
108 Koninklijke Philips Electronics N.V. (A).......... 3,753
--------
NORWAY -- 3.6%
355 Statoil ASA (A)................................... 9,018
--------
PANAMA -- 0.3%
19 Copa Holdings S.A. Class A........................ 735
--------
RUSSIA -- 1.1%
27 Lukoil ADR........................................ 2,175
24 TMK OAO GDR (I)................................... 600
--------
2,775
--------
SOUTH KOREA -- 1.0%
4 Samsung Electronics Co., Ltd. (A)................. 2,552
--------
SPAIN -- 2.6%
275 Banco Bilbao Vizcaya Argentaria S.A. (A).......... 6,637
--------
</Table>
The accompanying notes are an integral part of these financial statements.
185
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
SWEDEN -- 2.1%
150 Assa Abloy AB (A)(G).............................. $ 2,886
631 Telefonaktiebolaget LM Ericsson (A)............... 2,385
--------
5,271
--------
SWITZERLAND -- 8.3%
61 Credit Suisse Group (A)........................... 3,664
29 Nestle S.A. (A)................................... 9,880
80 UBS AG (A)........................................ 4,751
11 Zurich Financial Services AG (A).................. 2,824
--------
21,119
--------
TAIWAN -- 1.6%
629 Chunghwa Telecom Co., Ltd. (A).................... 1,077
165 Chunghwa Telecom Co., Ltd. ADR.................... 3,024
--------
4,101
--------
UNITED KINGDOM -- 10.2%
140 Alliance Boots plc (A)............................ 2,163
62 AstraZeneca plc (A)............................... 3,672
232 Debenhams plc (D)(A).............................. 832
349 EMI Group plc (A)................................. 1,793
1,331 Old Mutual plc (A)(G)............................. 4,308
69 Reckitt Benckiser plc (A)......................... 3,015
691 Tesco plc (A)..................................... 5,187
115 Xstrata plc (A)................................... 4,888
--------
25,858
--------
Total common stock
(cost $214,529)................................. $242,856
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 23.3%
REPURCHASE AGREEMENTS -- 3.5%
$ 1,786 Banc of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 1,786
1,050 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,050
42 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 42
840 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 840
1,765 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,765
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 966 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... $ 966
2,374 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 2,374
--------
8,823
--------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 19.8%
50,091 Navigator Prime Portfolio......................... 50,091
--------
Total short-term investments
(cost $58,914).................................. $ 58,914
--------
Total investments in securities
(cost $273,443) (C)............................. $301,770
========
</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 96.00% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $196,947, which represents 77.85% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $273,509 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $32,668
Unrealized depreciation......................... (4,407)
-------
Net unrealized appreciation..................... $28,261
=======
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(I) 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 qualified institutional buyers.
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, 2006, was $600, which represents 0.24% of total net assets.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
186
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Sell $1,313 $1,287 01/25/2007 $(26)
Canadian Dollar Sell 933 933 11/03/2006 --
Euro Sell 1,723 1,719 11/01/2006 (4)
Japanese Yen Buy 689 681 11/01/2006 8
Japanese Yen Sell 456 455 11/02/2006 (1)
Japanese Yen Sell 606 601 11/06/2006 (5)
Mexican Peso Sell 409 408 11/01/2006 (1)
Swiss Franc Sell 1,281 1,263 01/25/2007 (18)
----
$(47)
====
</Table>
DIVERSIFICATION BY INDUSTRY
As of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ---------------------------------------------------------------
Basic Materials 14.1%
- ---------------------------------------------------------------
Capital Goods 0.5
- ---------------------------------------------------------------
Consumer Cyclical 10.4
- ---------------------------------------------------------------
Consumer Staples 5.4
- ---------------------------------------------------------------
Energy 9.9
- ---------------------------------------------------------------
Finance 26.8
- ---------------------------------------------------------------
Health Care 10.9
- ---------------------------------------------------------------
Services 2.9
- ---------------------------------------------------------------
Technology 10.5
- ---------------------------------------------------------------
Transportation 3.2
- ---------------------------------------------------------------
Utilities 1.4
- ---------------------------------------------------------------
Short-Term Investments 23.3
- ---------------------------------------------------------------
Other Assets & Liabilities (19.3)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
187
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 98.7%
AUSTRALIA -- 3.4%
565 Centennial Coal Co., Ltd. (A)(G).................. $ 1,701
559 Dyno Nobel Ltd. (D) (I)(A)........................ 1,013
51 Leighton Holdings Ltd. (A)(G)..................... 841
150 Seek Ltd. (A)..................................... 618
304 Transurban Group (A)(G)........................... 1,703
48 Zinifex Ltd. (A).................................. 570
--------
6,446
--------
BELGIUM -- 1.7%
4 D'ieteren S.A. (A)(G)............................. 1,467
11 Umicore (A)....................................... 1,709
--------
3,176
--------
CHINA -- 1.0%
1,457 Beijing Capital International Airport Co., Ltd.
(A)............................................. 933
1,633 China Oilfield Services Ltd. (A).................. 915
--------
1,848
--------
DENMARK -- 3.7%
29 Carlsberg A/S Class B (A)......................... 2,472
20 Danisco A/S (A)(G)................................ 1,619
30 Genmab A/S (D)(A)................................. 1,341
23 Trygvesta A/S (A)(G).............................. 1,455
--------
6,887
--------
FINLAND -- 1.2%
65 Nokian Rendaat Oyj (A)(G)......................... 1,246
37 Tietoenator Oyj (A)(G)............................ 1,014
--------
2,260
--------
FRANCE -- 8.0%
39 Arkema (D)(A)(G).................................. 1,910
24 BioMerieux S.A. (A)............................... 1,481
12 Cegedim S.A. (A).................................. 999
38 Dassault Systemes S.A. (A)(G)..................... 2,045
38 Ipsen (I)(A)...................................... 1,575
94 S.O.I. Tec S.A. (D)(A)............................ 2,783
7 SEB S.A. (A)(G)................................... 960
4 Unibail (A)(G).................................... 804
38 Zodiac S.A. (A)(G)................................ 2,404
--------
14,961
--------
GERMANY -- 12.1%
29 AWD Holding AG (A)(G)............................. 1,053
13 Deutsche Euroshop AG (A).......................... 880
135 GEA Group AG (A).................................. 2,424
40 GFK AG (A)........................................ 1,715
18 Hochtief AG (A)................................... 1,159
79 KarstadtQuelle AG (D)(A)(G)....................... 1,870
106 Kontron AG (A)(G)................................. 1,542
93 MTU Aero Engines Holdings AG (A).................. 3,807
40 Praktiker Bau-Und Heimwerkermaerkte Holding AG
(A)............................................. 1,265
18 Salzgitter AG (A)................................. 1,967
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
GERMANY -- (CONTINUED)
98 SGL Carbon AG (D)(A).............................. $ 2,157
49 Thielert AG (D)(A)................................ 1,172
13 Wacker Chemie AG (D)(A)........................... 1,586
--------
22,597
--------
GREECE -- 1.9%
356 Hellenic Technodomiki Tev S.A. (A)................ 3,597
--------
HONG KONG -- 3.3%
1,196 Chinese Estates Holdings Ltd. (A) PFIC............ 1,434
2,016 Far East Pharmaceutical Technology Co., Ltd.
(D)(H)(G)....................................... --
1,089 Shangri-La Asia Ltd. (A).......................... 2,361
934 Shun Tak Holdings Ltd. (A)(G)..................... 1,232
849 Techtronic Industries Co., Ltd. (A)............... 1,201
--------
6,228
--------
ITALY -- 5.2%
112 Banca Popolare di Milano S.c.r.l. (A)............. 1,651
86 Brembo S.p.A. (A)................................. 1,000
333 Immobiliare Grande Distribuzione (A).............. 1,272
23 Pirelli & C. Real Estate S.p.A. (A)............... 1,479
260 Safilo Group S.p.A. (D)(A)........................ 1,405
729 Sorin S.p.A. (D)(A)(G)............................ 1,326
18 Tod's S.p.A. (A).................................. 1,573
--------
9,706
--------
JAPAN -- 22.4%
239 77 Bank Ltd. (A)(G)............................... 1,569
1 Bic Camera, Inc. (G).............................. 910
34 Disco Corp. (A)................................... 2,011
44 FamilyMart Co., Ltd. (A).......................... 1,194
483 Fuji Fire & Marine Insurance Co., Ltd. (A)(G)..... 1,933
18 Hakuhodo DY Holdings, Inc. (A)(G)................. 1,079
21 Honeys Co., Ltd. (A)(G)........................... 976
18 Japan Petroleum Exploration Co., Ltd. (A)(G)
PFIC............................................ 1,065
3 Jupiter Telecommunications Co., Ltd. (D)(A)....... 2,214
36 Kobayashi Pharmaceutical Co., Ltd. (A)............ 1,364
63 MEC Co., Ltd. (A)(G).............................. 833
33 Milbon Co., Ltd. (A).............................. 1,084
54 NEOMAX Co., Ltd. (A)(G)........................... 991
68 Nidec Copal Corp. (A)(G).......................... 837
-- Nomura Real Estate Office Fund, Inc. (A)(G)....... 1,144
25 OBIC Business Consultants Ltd. (A)(G)............. 1,913
11 OBIC Co., Ltd. (A)(G)............................. 2,301
22 Point, Inc. (A)(G)................................ 1,089
13 Ryohin Keikaku Co., Ltd. (A)...................... 918
134 Shionogi & Co., Ltd. (A)(G)....................... 2,687
877 Sumitomo Osaka Cement Co., Ltd. (A)(G)............ 2,574
44 Taiyo Ink Manufacturing Co., Ltd. (A)............. 2,335
34 Takamatsu Corp. (A)............................... 647
101 Tanabe Seiyaku Co., Ltd (A)(G).................... 1,245
24 Tocalo Co., Ltd. (A).............................. 849
21 Uni-Charm Corp. (A)(G)............................ 1,165
42 Union Tool Co. (A)(G)............................. 1,890
78 Uny Co., Ltd. (A)................................. 984
</Table>
The accompanying notes are an integral part of these financial statements.
188
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
JAPAN -- (CONTINUED)
18 USS Co., Ltd. (A)................................. $ 1,136
83 Yamaguchi Financial Group, Inc. .................. 1,039
--------
41,976
--------
LIECHTENSTEIN -- 1.3%
10 Verwalt & Privat-Bank AG (A)...................... 2,395
--------
LUXEMBOURG -- 0.7%
44 Stolt-Nielsen S.A. (A)(G)......................... 1,256
--------
MALAYSIA -- 0.8%
447 Resorts World Berhad (A).......................... 1,457
--------
MEXICO -- 0.6%
336 Empresas ICA S.A. (D)............................. 1,152
--------
NETHERLANDS -- 3.3%
69 Ordina N.V. (A)................................... 1,315
41 SBM Offshore N.V. (A)............................. 1,212
62 Spazio Investment N.V. (I)........................ 1,059
98 Wolters Kluwer N.V. (A)........................... 2,689
--------
6,275
--------
PORTUGAL -- 0.8%
235 Mota -- Engil S.A. (A)............................ 1,457
--------
SOUTH KOREA -- 1.6%
26 GS Engineering & Construction Corp. (A)........... 2,017
14 Mirae Asset Securities Co., Ltd. (A).............. 890
--------
2,907
--------
SPAIN -- 1.8%
475 Iberia Lineas Aer De Espana (A)(G)................ 1,489
62 Prosegur Compania de Seguridad S.A. (A)........... 1,856
--------
3,345
--------
SWEDEN -- 3.3%
44 Alfa Laval AB (A)(G).............................. 1,626
24 Munters AB (A)(G)................................. 924
153 Swedish Match AB (A)(G)........................... 2,444
56 Trelleborg AB (A)(G).............................. 1,180
--------
6,174
--------
SWITZERLAND -- 6.8%
15 Bachem Holding AG Class B......................... 1,037
16 Charles Voegele Holding AG (A).................... 1,298
25 Dufry Group (D)(A)................................ 2,044
65 EFG International (D)............................. 2,123
9 Ems-Chemie Holding AG (A)(G)...................... 1,019
1 Geberit AG (A).................................... 992
82 Logitech International S.A. (D)(A)................ 2,152
2 Sulzer AG (A)..................................... 2,089
--------
12,754
--------
UNITED KINGDOM -- 9.7%
191 Cattles plc (A)................................... 1,371
89 Close Brothers Group plc (A)...................... 1,651
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
UNITED KINGDOM -- (CONTINUED)
174 EMI Group plc (A)................................. $ 893
155 FirstGroup plc (A)................................ 1,587
532 FKI plc (A)....................................... 971
516 GCAP Media plc (A)................................ 2,110
95 ICAP plc (A)...................................... 924
92 Speedy Hire plc (A)............................... 1,806
159 SSL International plc (A)......................... 1,020
269 Star Energy Group plc (D)(A)...................... 1,414
68 Ultra Electronics Holdings plc (A)................ 1,440
50 Vedanta Resources plc (A)......................... 1,373
287 Wolfson Microelectronics plc (D)(A)............... 1,575
--------
18,135
--------
UNITED STATES -- 4.1%
320 Benfield Group plc (A)............................ 2,120
859 Goodpack Ltd. (D)(A).............................. 906
171 Lancashire Holdings Ltd. (D)...................... 1,186
19 Mapeley Ltd. (A).................................. 1,291
1,964 Midland Holdings, Ltd. (A)........................ 972
194 Petrofac Ltd. (A)................................. 1,245
--------
7,720
--------
Total common stock
(cost $168,607)................................. $184,709
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 23.9%
REPURCHASE AGREEMENTS -- 1.5%
$ 550 Banc of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 550
323 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 323
13 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 13
259 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 259
544 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 544
298 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 298
731 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 731
--------
2,718
--------
</Table>
The accompanying notes are an integral part of these financial statements.
189
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 22.4%
41,963 Navigator Prime Portfolio......................... $ 41,963
--------
Total short-term investments
(cost $44,681).................................. $ 44,681
--------
Total investments in securities
(cost $213,288) (C)............................. $229,390
========
</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 94.6% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $176,203, which represents 94.15% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $213,996 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $20,979
Unrealized depreciation......................... (5,585)
-------
Net unrealized appreciation..................... $15,394
=======
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(H) The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks a
readily available market or if its valuation has not changed for a certain
period of time.
<Table>
<Caption>
PERIOD
ACQUIRED SHARES SECURITY COST BASIS
-------- ------ -------- ----------
March-May 2004 2,016 Far East Pharmaceutical $293
Technology Co., Ltd.
</Table>
The aggregate value of these securities at October 31, 2006 rounds
to zero.
(I) 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 qualified institutional buyers.
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, 2006, was $3,647, which represents 1.95% of total net assets.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Australian Dollar Buy $369 $365 11/01/2006 $ 4
British Pound Sell 39 39 11/01/2006 --
Danish Krone Buy 122 122 11/03/2006 --
Euro Buy 241 240 11/02/2006 1
Euro Buy 165 164 11/01/2006 1
Euro Buy 55 55 11/03/2006 --
Euro Sell 326 325 11/01/2006 (1)
Hong Kong Dollars Buy 17 17 11/01/2006 --
Hong Kong Dollars Buy 15 15 11/02/2006 --
Swiss Francs Buy 69 69 11/01/2006 --
Swiss Francs Buy 79 79 11/02/2006 --
---
$ 5
===
</Table>
PFIC -- Passive Foreign Investment Company
DIVERSIFICATION BY INDUSTRY
As of October 31, 2006
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
- ---------------------------------------------------------------
Basic Materials 12.6%
- ---------------------------------------------------------------
Capital Goods 9.3
- ---------------------------------------------------------------
Consumer Cyclical 16.4
- ---------------------------------------------------------------
Consumer Staples 3.5
- ---------------------------------------------------------------
Energy 3.4
- ---------------------------------------------------------------
Finance 20.6
- ---------------------------------------------------------------
Health Care 8.4
- ---------------------------------------------------------------
</Table>
<Table>
- ---------------------------------------------------------------
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
Services 7.7
- ---------------------------------------------------------------
Technology 11.5
- ---------------------------------------------------------------
Transportation 4.7
- ---------------------------------------------------------------
Utilities 0.6
- ---------------------------------------------------------------
Short-Term Investments 23.9
- ---------------------------------------------------------------
Other Assets & Liabilities (22.6)
- ---------------------------------------------------------------
TOTAL 100.0%
- ---------------------------------------------------------------
</Table>
The accompanying notes are an integral part of these financial statements.
190
THE HARTFORD MIDCAP FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- 95.5%
BASIC MATERIALS -- 6.0%
1,240 Cameco Corp. ..................................... $ 43,568
703 Peabody Energy Corp. ............................. 29,488
152 Phelps Dodge Corp. ............................... 15,288
19 Potash Corp. of Saskatchewan...................... 2,411
446 Precision Castparts Corp. ........................ 30,321
270 Rohm & Haas Co. .................................. 14,014
587 Teck Cominco Ltd. Class B......................... 43,249
----------
178,339
----------
CAPITAL GOODS -- 3.4%
302 Alliant Techsystems, Inc. (D)(G).................. 23,302
1,103 American Standard Cos., Inc. ..................... 48,865
605 Lam Research Corp. (D)............................ 29,897
----------
102,064
----------
CONSUMER CYCLICAL -- 16.6%
580 Abercrombie & Fitch Co. Class A................... 44,449
216 American Eagle Outfitters, Inc. .................. 9,879
322 BorgWarner, Inc. ................................. 18,498
654 CarMax, Inc. (D).................................. 28,977
731 Chico's FAS, Inc. (D)............................. 17,486
245 Fastenal Co. ..................................... 9,871
764 Foster Wheeler Ltd. (D)........................... 34,351
469 Gildan Activewear, Inc. (D)(G).................... 23,913
540 Michaels Stores, Inc. ............................ 23,772
1,073 Newell Rubbermaid, Inc. .......................... 30,881
397 O'Reilly Automotive, Inc. (D)..................... 12,806
329 Oshkosh Truck Corp. .............................. 14,851
700 OSI Restaurant Partners, Inc. .................... 23,289
584 PACCAR, Inc. ..................................... 34,564
1,374 PetSmart, Inc. ................................... 39,552
963 Saks, Inc. ....................................... 18,628
1,574 Supervalu, Inc. .................................. 52,582
1,028 Tiffany & Co. .................................... 36,731
550 Williams-Sonoma, Inc. (G)......................... 18,702
----------
493,782
----------
CONSUMER STAPLES -- 2.3%
519 Alberto-Culver Co. ............................... 26,391
540 Clorox Co. ....................................... 34,849
457 Tyson Foods, Inc. Class A......................... 6,604
----------
67,844
----------
ENERGY -- 6.0%
652 Chesapeake Energy Corp. .......................... 21,138
865 GlobalSantaFe Corp. .............................. 44,894
540 Noble Corp. ...................................... 37,868
463 Noble Energy, Inc. ............................... 22,535
539 Southwestern Energy Co. (D)....................... 19,174
1,286 Western Oil Sands, Inc. Class A (D)............... 33,164
----------
178,773
----------
FINANCE -- 12.7%
4,551 Aberdeen Asset Management plc (A)................. 15,286
477 AMBAC Financial Group, Inc. ...................... 39,783
619 AmeriCredit Corp. (D)(G).......................... 15,830
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
FINANCE -- (CONTINUED)
606 Assurant, Inc. ................................... $ 31,928
119 Blackrock, Inc. .................................. 17,965
1,467 E*Trade Financial Corp. (D)....................... 34,147
206 Everest Re Group Ltd. ............................ 20,431
731 Hong Kong Exchanges & Clearing Ltd. (A)........... 5,770
1,087 Host Hotels & Resorts, Inc. ...................... 25,065
632 State Street Corp. ............................... 40,593
941 T. Rowe Price Group, Inc. ........................ 44,514
1,386 UCBH Holdings, Inc. .............................. 23,754
1,352 UnumProvident Corp. .............................. 26,739
247 Ventas, Inc. ..................................... 9,628
516 Webster Financial Corp. .......................... 24,928
----------
376,361
----------
HEALTH CARE -- 8.6%
319 Amylin Pharmaceuticals, Inc. (D)(G)............... 14,028
683 Barr Pharmaceuticals, Inc. (D).................... 35,748
386 Cephalon, Inc. (D)(G)............................. 27,098
363 Coventry Health Care, Inc. (D).................... 17,038
263 Edwards Lifesciences Corp. (D)(G)................. 11,303
472 Eisai Co., Ltd. (A)............................... 24,148
495 Manor Care, Inc. ................................. 23,736
1,446 Millennium Pharmaceuticals, Inc. (D)(G)........... 16,918
941 Mylan Laboratories, Inc. ......................... 19,288
74 Psychiatric Solutions, Inc. (D)................... 2,447
1,606 Shionogi & Co., Ltd. (A)(G)....................... 32,178
187 Universal Health Services, Inc. Class B........... 9,896
524 Vertex Pharmaceuticals, Inc. (D)(G)............... 21,258
----------
255,084
----------
SERVICES -- 20.4%
534 Alliance Data Systems Corp. (D)(G)................ 32,431
313 Allied Waste Industries, Inc. (D)................. 3,801
925 Autodesk, Inc. (D)................................ 34,001
1,575 BISYS Group, Inc. (D)............................. 17,389
554 C.H. Robinson Worldwide, Inc. .................... 23,111
1,301 Cablevision Systems Corp. ........................ 36,155
2,818 Cadence Design Systems, Inc. (D).................. 50,322
572 Cognizant Technology Solutions Corp. (D).......... 43,083
163 Corporate Executive Board Co. .................... 14,659
524 EchoStar Communications Corp. Class A (D)......... 18,609
1,420 Equifax, Inc. .................................... 53,999
450 Fluor Corp. ...................................... 35,309
206 Focus Media Holding Ltd. ADR (D).................. 10,911
206 Harrah's Entertainment, Inc. ..................... 15,334
709 Manpower, Inc. ................................... 48,015
603 MoneyGram International, Inc. .................... 20,629
963 Monster Worldwide, Inc. (D)....................... 39,007
1,082 Republic Services, Inc. .......................... 44,352
475 Robert Half International, Inc. .................. 17,361
794 Univision Communications, Inc. Class A (D)(G)..... 27,848
368 Weight Watchers International, Inc. .............. 16,032
----------
602,358
----------
TECHNOLOGY -- 14.8%
1,709 Activision, Inc. (D).............................. 26,345
822 ADTRAN, Inc. ..................................... 19,028
</Table>
The accompanying notes are an integral part of these financial statements.
191
THE HARTFORD MIDCAP FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
2,331 Altera Corp. (D).................................. $ 42,987
301 American Reprographics Co. (D).................... 10,686
1,190 American Tower Corp. Class A (D).................. 42,847
177 Beckman Coulter, Inc. ............................ 10,196
509 DaVita, Inc. (D).................................. 28,288
1,759 Fairchild Semiconductor International, Inc. (D)... 28,333
932 Jabil Circuit, Inc. .............................. 26,769
1,079 Linear Technology Corp. .......................... 33,591
668 MEMC Electronic Materials, Inc. (D)............... 23,710
544 Mercury Interactive Corp. (D)..................... 28,251
1,284 Network Appliance, Inc. (D)....................... 46,862
761 Rockwell Collins, Inc. ........................... 44,181
580 Roper Industries, Inc. ........................... 27,739
----------
439,813
----------
TRANSPORTATION -- 1.3%
279 Expeditors International of Washington, Inc. ..... 13,237
282 Landstar System, Inc. ............................ 13,105
524 UTI Worldwide, Inc. .............................. 13,538
----------
39,880
----------
UTILITIES -- 3.4%
1,543 Northeast Utilities............................... 38,585
678 NRG Energy, Inc. (D)(G)........................... 32,622
610 PNM Resources, Inc. .............................. 17,169
513 Suntech Power Holdings Co. Ltd. ADR (D)........... 13,331
----------
101,707
----------
Total common stock
(cost $2,472,475)............................... $2,836,005
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 7.1%
REPURCHASE AGREEMENTS -- 4.7%
$27,853 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 27,853
16,384 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 16,384
654 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 654
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ----------
REPURCHASE AGREEMENTS -- (CONTINUED)
$13,107 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... $ 13,107
27,526 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 27,526
15,074 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 15,074
37,028 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 37,028
----------
137,626
----------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 2.4%
72,566 Navigator Prime Portfolio......................... 72,566
----------
Total short-term investments
(cost $210,192)................................. $ 210,192
----------
Total investments in securities
(cost $2,682,667) (C)........................... $3,046,197
==========
</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 8.80% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $77,382, which represents 2.61% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $2,684,457 and the aggregate gross unrealized appreciation
and depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $418,625
Unrealized depreciation........................ (56,885)
--------
Net unrealized appreciation.................... $361,740
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Buy $ 339 $ 337 11/01/2006 $ 2
British Pound Buy 283 282 11/02/2006 1
British Pound Buy 668 668 11/03/2006 --
Hong Kong Dollars Buy 2,925 2,924 11/01/2006 1
-----
$ 4
=====
</Table>
The accompanying notes are an integral part of these financial statements.
192
THE HARTFORD MIDCAP GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 97.8%
BASIC MATERIALS -- 6.4%
2 Airgas, Inc. ..................................... $ 64
3 Cameco Corp. ..................................... 105
3 Consol Energy, Inc. .............................. 120
1 Phelps Dodge Corp. ............................... 110
2 Posco ADR......................................... 113
3 Teck Cominco Ltd. ................................ 206
-------
718
-------
CAPITAL GOODS -- 3.5%
1 Alliant Techsystems, Inc. (D)..................... 108
2 Cameron International Corp. (D)................... 105
2 National Oilwell Varco, Inc. (D).................. 109
1 Rockwell Automation, Inc. ........................ 68
-------
390
-------
CONSUMER CYCLICAL -- 7.9%
2 Abercrombie & Fitch Co. Class A................... 146
4 Advance Auto Parts, Inc. ......................... 123
10 Chico's FAS, Inc. (D)............................. 237
3 Gildan Activewear, Inc. (D)....................... 133
5 Newell Rubbermaid, Inc. .......................... 130
6 Urban Outfitters, Inc. (D)........................ 109
-------
878
-------
CONSUMER STAPLES -- 4.5%
2 Bunge Ltd. ....................................... 115
5 Constellation Brands, Inc. Class A (D)............ 124
4 Corn Products International, Inc. ................ 148
3 Dean Foods Co. (D)................................ 109
-------
496
-------
ENERGY -- 4.1%
1 Diamond Offshore Drilling, Inc. .................. 97
2 GlobalSantaFe Corp. .............................. 119
3 Newfield Exploration Co. (D)...................... 110
2 Noble Corp. ...................................... 126
-------
452
-------
FINANCE -- 14.6%
1 Affiliated Managers Group, Inc. (D)............... 90
1 AMBAC Financial Group, Inc. ...................... 109
14 Covanta Holding Corp. (D)......................... 276
4 Eaton Vance Corp. ................................ 115
4 Genworth Financial, Inc. ......................... 120
6 Host Hotels & Resorts, Inc. ...................... 148
1 M&T Bank Corp. ................................... 100
2 Medco Health Solutions, Inc. (D).................. 86
7 Nasdaq Stock Market, Inc. (D)..................... 239
2 Reckson Associates Realty Corp. .................. 97
2 State Street Corp. ............................... 135
2 Wellcare Health Plans, Inc. (D)................... 106
-------
1,621
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
HEALTH CARE -- 13.6%
2 Forest Laboratories, Inc. (D)..................... $ 108
3 Herbalife Ltd. (D)................................ 102
12 Human Genome Sciences, Inc. (D)................... 162
8 Inverness Medical Innovation...................... 313
3 Pharmaceutical Product Development, Inc. ......... 98
3 Quest Diagnostics, Inc. .......................... 149
3 Shire plc......................................... 186
5 Sunrise Senior Living, Inc. (D)................... 153
3 Ventana Medical Systems, Inc. (D)................. 129
8 Warner Chilcott Ltd. ............................. 110
-------
1,510
-------
SERVICES -- 13.8%
3 Atheros Communications, Inc. (D).................. 54
4 Business Objects S.A. ADR (D)..................... 156
3 Corrections Corp. of America (D).................. 158
2 Express Scripts, Inc. (D)......................... 102
1 Fluor Corp. ...................................... 102
65 iGate Corp. ...................................... 367
6 Orient Express Hotels, Ltd. Class A............... 229
3 Penn National Gaming, Inc. (D).................... 113
6 Saic, Inc. (D).................................... 120
2 Washington Group International, Inc. ............. 130
-------
1,531
-------
TECHNOLOGY -- 24.1%
1 Akamai Technologies, Inc. (D)..................... 61
4 Amdocs Ltd. (D)................................... 151
4 American Tower Corp. Class A (D).................. 130
8 Citizens Communications Co. ...................... 114
5 Citrix Systems, Inc. (D).......................... 133
2 Equinix, Inc. (D)................................. 116
10 Exlservice Holdings, Inc. (D)..................... 208
3 F5 Networks, Inc. (D)............................. 179
12 Flextronics International Ltd. (D)................ 144
3 Harris Corp. ..................................... 115
11 Juniper Networks, Inc. (D)........................ 186
3 MEMC Electronic Materials, Inc. (D)............... 99
3 Microchip Technology, Inc. ....................... 99
3 Neustar, Inc. (D)................................. 94
4 Rackable Systems, Inc. (D)........................ 112
3 Rockwell Collins, Inc. ........................... 197
3 Roper Industries, Inc. ........................... 139
5 Thermo Electron Corp. (D)......................... 193
2 Trimble Navigation Ltd. .......................... 102
2 Waters Corp. (D).................................. 100
-------
2,672
-------
TRANSPORTATION -- 1.1%
4 Wabtec Corp....................................... 119
-------
</Table>
The accompanying notes are an integral part of these financial statements.
193
THE HARTFORD MIDCAP GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
UTILITIES -- 4.2%
2 Entergy Corp. .................................... $ 165
5 Northeast Utilities............................... 135
4 Wisconsin Energy Corp. ........................... 164
-------
464
-------
Total common stock
(cost $10,278).................................. $10,851
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 2.8%
REPURCHASE AGREEMENTS -- 2.8%
$103 BNP Paribas Joint Repurchase Agreement,
5.24%, 11/01/2006............................... $ 103
106 RBS Greenwich Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 106
104 UBS Securities LLC Repurchase Agreement,
5.24%, 11/01/2006............................... 104
-------
Total short-term investments
(cost $313)..................................... $ 313
-------
Total investments in securities
(cost $10,591) (C).............................. $11,164
=======
</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 8.10% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $10,624 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................... $ 765
Unrealized depreciation........................... (225)
-----
Net unrealized appreciation....................... $ 540
=====
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
194
THE HARTFORD MIDCAP VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 99.1%
BASIC MATERIALS -- 13.2%
12 Albemarle Corp. .................................. $ 780
90 Arch Coal, Inc. .................................. 3,120
37 Ashland, Inc. .................................... 2,181
51 Carlisle Cos., Inc. .............................. 4,268
167 Celanese Corp. ................................... 3,440
94 Century Aluminum Co. (D).......................... 3,674
518 Chemtura Corp. ................................... 4,442
101 Cleveland-Cliffs, Inc. (G)........................ 4,250
147 Cytec Industries, Inc. ........................... 8,142
70 FMC Corp. (D)..................................... 4,819
45 Martin Marietta Materials, Inc. .................. 3,978
20 Michelin (C.G.D.E.) Class B (A)................... 1,597
142 Owens-Illinois, Inc. (D).......................... 2,359
98 Pactiv Corp. (D).................................. 3,007
146 Shaw Group, Inc. (D).............................. 3,886
114 Temple-Inland, Inc. .............................. 4,492
110 UAP Holding Corp. ................................ 2,746
--------
61,181
--------
CAPITAL GOODS -- 13.1%
112 AGCO Corp. (D).................................... 3,001
78 Alliant Techsystems, Inc. (D)..................... 6,022
119 American Standard Cos., Inc. ..................... 5,257
33 Black & Decker Corp. ............................. 2,776
257 Goodrich Corp. ................................... 11,322
108 Kennametal, Inc. ................................. 6,671
32 Lam Research Corp. (D)............................ 1,602
90 Parker-Hannifin Corp. ............................ 7,535
79 Terex Corp. (D)................................... 4,110
100 Toro Co. ......................................... 4,333
216 Varian Semiconductor Equipment Associates, Inc.
(D)(G).......................................... 7,891
--------
60,520
--------
CONSUMER CYCLICAL -- 9.3%
208 American Axle & Manufacturing Holdings, Inc. ..... 3,904
221 Arris Group, Inc. (D)............................. 2,955
87 BorgWarner, Inc. ................................. 4,980
370 Foot Locker, Inc. ................................ 8,590
79 Newell Rubbermaid, Inc. .......................... 2,274
28 Office Depot, Inc. (D)............................ 1,163
175 Ruby Tuesday, Inc. ............................... 4,856
79 TRW Automotive Holdings Corp. (D)................. 2,019
114 United Stationers, Inc. (D)....................... 5,453
29 V.F. Corp. ....................................... 2,166
103 Walter Industries (G)............................. 4,798
--------
43,158
--------
CONSUMER STAPLES -- 3.7%
130 Bunge Ltd. (G).................................... 8,321
59 Ralcorp Holdings, Inc. (D)........................ 2,908
138 Smithfield Foods, Inc. (D)........................ 3,712
150 Tyson Foods, Inc. Class A......................... 2,162
--------
17,103
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
ENERGY -- 3.8%
140 Newfield Exploration Co. (D)...................... $ 5,727
140 Noble Energy, Inc. ............................... 6,803
192 UGI Corp. ........................................ 5,096
--------
17,626
--------
FINANCE -- 17.7%
55 Affiliated Managers Group, Inc. (D)(G)............ 5,548
116 AMBAC Financial Group, Inc. ...................... 9,651
370 Apollo Investment Corp. .......................... 7,969
161 CIT Group, Inc. .................................. 8,359
28 City National Corp. .............................. 1,857
16 Douglas Emmett, Inc. (D).......................... 382
215 E*Trade Financial Corp. (D)....................... 5,010
64 Everest Re Group Ltd. ............................ 6,338
344 Grupo Imsa S.A. de C.V. .......................... 1,482
228 Huntington Bancshares, Inc. ...................... 5,575
249 KKR Financial Corp. .............................. 6,670
150 Platinum Underwriters Holdings Ltd. .............. 4,482
121 Reinsurance Group of America, Inc. ............... 6,828
38 UnionBanCal Corp. ................................ 2,182
185 UnumProvident Corp. .............................. 3,649
114 Webster Financial Corp. .......................... 5,523
--------
81,505
--------
HEALTH CARE -- 7.3%
168 Barr Pharmaceuticals, Inc. (D).................... 8,782
126 Cooper Companies, Inc. ........................... 7,256
252 Endo Pharmaceuticals Holdings, Inc. (D)........... 7,189
462 Impax Laboratories, Inc. (D)...................... 3,231
234 Theravance, Inc. (D).............................. 7,352
--------
33,810
--------
SERVICES -- 9.8%
101 Avid Technology, Inc. (D)(G)...................... 3,659
340 BearingPoint, Inc. (D)............................ 2,829
206 Entercom Communications Corp. .................... 5,692
219 IMS Health, Inc. ................................. 6,091
215 R.H. Donnelley Corp. (G).......................... 12,935
181 R.R. Donnelley & Sons Co. ........................ 6,129
532 Unisys Corp. (D).................................. 3,481
115 URS Corp. (D)..................................... 4,627
--------
45,443
--------
TECHNOLOGY -- 13.5%
101 Acuity Brands, Inc. .............................. 4,979
336 Arrow Electronics, Inc. (D)....................... 10,042
509 Cinram International Income Fund.................. 10,042
75 Embarq Corp. ..................................... 3,621
335 Fairchild Semiconductor International, Inc. (D)... 5,397
513 Flextronics International Ltd. (D)................ 5,945
140 NCR Corp. (D)..................................... 5,804
418 Powerwave Technologies, Inc. (D)(G)............... 2,721
201 QLogic Corp. (D).................................. 4,126
90 Syniverse Holdings, Inc. (D)...................... 1,320
</Table>
The accompanying notes are an integral part of these financial statements.
195
THE HARTFORD MIDCAP VALUE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
194 Tektronix, Inc. .................................. $ 5,892
164 Vishay Intertechnology, Inc. (D).................. 2,217
--------
62,106
--------
TRANSPORTATION -- 2.3%
116 Trinity Industries, Inc. (G)...................... 4,181
177 UAL Corp. (D)..................................... 6,376
--------
10,557
--------
UTILITIES -- 5.4%
208 Northeast Utilities............................... 5,212
338 PPL Corp. ........................................ 11,657
54 SBM Offshore N.V. (A)............................. 1,603
140 Wisconsin Energy Corp. ........................... 6,409
--------
24,881
--------
Total common stock
(cost $386,350)................................. $457,890
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 8.9%
REPURCHASE AGREEMENTS -- 1.3%
$ 1,192 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 1,192
701 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 701
28 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 28
561 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 561
1,178 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,178
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 645 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... $ 645
1,585 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 1,585
--------
5,890
--------
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 7.6%
35,132 BNY Institutional Cash Reserve Fund............... 35,132
--------
Total short-term investments
(cost $41,022).................................. $ 41,022
--------
Total investments in securities
(cost $427,372) (C)............................. $498,912
========
</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 3.19% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $3,200, which represents 0.69% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $427,621 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $ 81,469
Unrealized depreciation........................ (10,178)
--------
Net unrealized appreciation.................... $ 71,291
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Euro Sell $232 $232 11/03/2006 $--
===
</Table>
The accompanying notes are an integral part of these financial statements.
196
THE HARTFORD MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MATURITY MARKET
AMOUNT YIELD DATE VALUE (W)
- --------- ----- ---------- ---------
CONSUMER CYCLICAL -- 1.3%
$3,410 Wal-Mart Stores, Inc. (L)......................... 5.26% 03/28/2007 $ 3,409
--------
CONSUMER STAPLES -- 3.0%
3,000 Alcoa, Inc. ...................................... 5.30% 11/15/2006 2,994
2,900 Alcoa, Inc. ...................................... 5.30% 11/16/2006 2,894
2,088 KFW International Finance, Inc. .................. 5.29% 11/01/2006 2,088
--------
$ 7,976
--------
FINANCE -- 96.7%
3,300 Ab Spintab........................................ 5.31% 01/29/2007 3,257
3,300 Ab Spintab........................................ 5.32% 01/30/2007 3,257
3,300 Alliance & Leicester plc.......................... 5.33% 03/02/2007 3,243
3,300 American Express Credit Corp. .................... 5.26% 12/14/2006 3,279
3,500 American Express Credit Corp. (L)................. 5.41% 12/15/2006 3,501
3,500 American General Finance Corp. ................... 5.24% 11/07/2006 3,497
2,800 American General Finance Corp. (L)................ 5.43% 03/23/2007 2,801
3,500 American Honda Finance Corp. ..................... 5.24% 11/16/2006 3,492
3,500 American Honda Finance Corp. (I)(L)............... 5.47% 08/08/2007 3,500
3,500 Amsterdam Funding Group........................... 5.26% 11/01/2006 3,500
3,300 Amsterdam Funding Group........................... 5.27% 11/17/2006 3,292
2,680 Bank of America Corp. ............................ 5.25% 11/06/2006 2,678
3,300 Bank of America NA (L)............................ 5.30% 11/20/2006 3,300
3,300 Bank of America NA (L)............................ 5.32% 05/15/2007 3,338
3,500 Barton Capital Corp. ............................. 5.26% 11/08/2006 3,496
3,500 Barton Capital Corp. ............................. 5.26% 11/09/2006 3,496
3,000 Bear Stearns & Co., Inc. (L)...................... 5.31% 10/12/2007 3,000
2,900 Bear Stearns & Co., Inc. (L)...................... 5.38% 06/29/2007 2,913
3,000 Bradford & Bingley plc............................ 5.29% 12/04/2006 2,986
3,030 Bradford & Bingley plc............................ 5.30% 12/18/2006 3,010
3,300 Britannia Building Society........................ 5.28% 11/29/2006 3,286
3,000 Britannia Building Society........................ 5.29% 11/13/2006 2,995
3,300 Cafco LLC......................................... 5.27% 11/08/2006 3,297
3,300 Cafco LLC......................................... 5.28% 12/06/2006 3,283
2,500 Cafco LLC......................................... 5.29% 12/14/2006 2,484
6,000 Caterpillar Financial Services Corp. (L).......... 5.39% 07/27/2007 6,001
5,000 Citigroup Funding, Inc. .......................... 5.23% 11/06/2006 4,996
2,751 Countrywide Financial Corp. ...................... 5.29% 11/01/2006 2,751
3,100 Countrywide Financial Corp. ...................... 5.29% 11/10/2006 3,096
4,700 Federal National Mortgage Association............. 5.61% 09/05/2007 4,700
3,300 General Electric Capital Corp. ................... 5.26% 11/27/2006 3,288
2,600 General Electric Capital Corp. (L)................ 5.28% 10/24/2007 2,600
4,505 General Electric Capital Corp. (L)................ 5.45% 01/05/2007 4,506
6,670 Goldman Sachs Group, Inc. (L)..................... 5.47% 03/30/2007 6,674
</Table>
<Table>
<Caption>
PRINCIPAL MATURITY MARKET
AMOUNT YIELD DATE VALUE (W)
- --------- ----- ---------- ---------
FINANCE -- (CONTINUED)
$2,300 HBOS Treasury Services plc........................ 5.28% 12/07/2006 $ 2,288
1,000 HBOS Treasury Services plc........................ 5.28% 12/08/2006 995
3,560 HBOS Treasury Services plc (I)(L)................. 5.29% 10/09/2007 3,559
3,300 HSBC Finance Corp. ............................... 5.26% 12/01/2006 3,286
3,500 HSBC Finance Corp. (L)............................ 5.31% 10/05/2007 3,500
3,800 JP Morgan Chase & Co. (L)......................... 5.29% 10/02/2007 3,800
3,000 Merrill Lynch & Co., Inc. (L)..................... 5.30% 10/24/2007 3,000
3,100 Merrill Lynch & Co., Inc. (L)..................... 5.36% 05/29/2007 3,100
3,500 Morgan Stanley (L)................................ 5.30% 11/28/2006 3,501
3,300 Morgan Stanley (L)................................ 5.43% 06/26/2007 3,301
3,500 Morgan Stanley (L)................................ 5.48% 01/19/2007 3,501
3,300 Nationwide Building Society....................... 5.32% 01/25/2007 3,259
3,300 Nationwide Building Society (I)................... 5.32% 01/29/2007 3,257
2,850 Nordea North America.............................. 5.26% 11/01/2006 2,850
3,300 Nordea North America (I)(L)....................... 5.30% 10/09/2007 3,300
3,500 Northern Rock plc................................. 5.26% 11/01/2006 3,500
3,300 Northern Rock plc................................. 5.32% 01/30/2007 3,257
3,300 Old Line Funding (I).............................. 5.26% 11/02/2006 3,300
3,000 Old Line Funding.................................. 5.26% 11/03/2006 2,999
2,972 Old Line Funding.................................. 5.35% 11/06/2006 2,970
3,500 Preferred Funding (I)............................. 5.27% 11/14/2006 3,493
3,300 Preferred Funding (I)............................. 5.27% 11/20/2006 3,291
2,018 Preferred Funding (I)............................. 5.28% 11/22/2006 2,012
3,300 Sheffield Receivables............................. 5.27% 11/15/2006 3,293
4,250 Sheffield Receivables............................. 5.29% 12/14/2006 4,223
2,970 Skandinaviska Enskilda Bank (I)(L)................ 5.28% 07/19/2007 2,970
3,400 Skandinaviska Enskilda Bank NY (I)(L)............. 5.31% 10/09/2007 3,400
3,300 SLM Corp. (I)(L).................................. 5.32% 10/12/2007 3,300
2,760 SLM Corp. (L)..................................... 5.50% 01/25/2007 2,761
3,300 Svenska Handelsbanken Ab.......................... 5.28% 11/27/2006 3,303
7,000 Toyota Motor Credit Corp. (L)..................... 5.35% 09/24/2007 7,000
2,800 Triple A-1 Funding................................ 5.27% 11/16/2006 2,794
2,930 Triple A-1 Funding................................ 5.27% 11/17/2006 2,923
3,300 UBS Finance LLC................................... 5.26% 11/03/2006 3,299
3,300 UBS Finance LLC................................... 5.27% 12/04/2006 3,284
3,320 Washington Mutual Bank (L)........................ 5.35% 08/27/2007 3,320
3,215 Washington Mutual Bank (L)........................ 5.44% 02/28/2007 3,216
3,000 Wells Fargo & Co. (L)............................. 5.45% 03/23/2007 3,001
3,300 Westpac Banking Corp. ............................ 5.28% 12/12/2006 3,280
3,400 Westpac Banking Corp. (I)(L)...................... 5.29% 07/16/2007 3,400
3,500 Yorktown Capital.................................. 5.27% 11/08/2006 3,495
3,300 Yorktown Capital.................................. 5.28% 11/29/2006 3,285
1,837 Yorktown Capital.................................. 5.29% 12/05/2006 1,826
--------
257,485
--------
Total investments in securities
(cost $268,870) (C)............................. $268,870
========
</Table>
The accompanying notes are an integral part of these financial statements.
197
THE HARTFORD MONEY MARKET FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
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 6.25% of total net assets at October 31, 2006.
(C) Also represents cost for federal tax purposes.
(I) 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 qualified institutional buyers.
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, 2006, was $38,782, which represents 14.57% of total net
assets.
(L) Variable rate securities; the yield reported is the rate in effect at
October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
198
THE HARTFORD RETIREMENT INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 97.0%
EQUITY FUNDS -- 27.4%
2 Hartford Capital Appreciation Fund, Class Y....... $ 64
4 Hartford Disciplined Equity Fund, Class Y......... 50
1 Hartford Equity Income Fund, Class Y.............. 20
1 Hartford Global Leaders Fund, Class Y............. 19
-- Hartford International Capital Appreciation Fund,
Class Y......................................... 5
1 Hartford International Opportunities Fund, Class
Y............................................... 15
-- Hartford International Small Company Fund, Class
Y............................................... 7
1 Hartford MidCap Value Fund, Class Y............... 8
-- Hartford Select MidCap Growth Fund, Class Y....... 3
2 Hartford Select Midcap Value Fund, Class Y........ 24
1 Hartford Small Company Fund, Class Y (D).......... 12
1 Hartford Value Fund, Class Y...................... 11
----
Total equity funds
(cost $224)..................................... $238
----
FIXED INCOME FUNDS -- 68.2%
5 Hartford Floating Rate Fund, Class Y.............. 55
4 Hartford High Yield Fund, Class Y................. 35
-- Hartford Income Fund, Class Y..................... 3
11 Hartford Inflation Plus Fund, Class Y............. 119
22 Hartford Short Duration Fund, Class Y............. 216
15 Hartford Total Return Bond Fund, Class Y.......... 164
----
Total fixed income funds
(cost $591)..................................... $592
----
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
MONEY MARKET FUND -- 1.4%
12 Hartford Money Market Fund, Class Y............... $ 12
----
Total money market fund
(cost $12)...................................... $ 12
----
Total investments in affiliated investment
companies
(cost $827) (C)................................. $842
====
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $828 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................. $14
Unrealized depreciation............................. --
---
Net unrealized appreciation......................... $14
===
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
199
THE HARTFORD SELECT MIDCAP GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 92.8%
BASIC MATERIALS -- 4.4%
5 Airgas, Inc. ..................................... $ 200
2 Carpenter Technology Corp. ....................... 241
5 Church & Dwight Co., Inc. ........................ 203
7 Florida Rock Industries, Inc. .................... 320
8 Fortune Brands, Inc. ............................. 623
11 Precision Castparts Corp. ........................ 776
6 USG Corp. (D)..................................... 287
-------
2,650
-------
CAPITAL GOODS -- 8.5%
5 Alliant Techsystems, Inc. (D)..................... 366
8 American Standard Cos., Inc. ..................... 370
4 Black & Decker Corp. ............................. 308
10 Cameron International Corp. (D)................... 513
13 Dresser-Rand Group, Inc. (D)...................... 275
11 Grant Prideco, Inc. (D)........................... 434
4 International Game Technology..................... 167
4 Lam Research Corp. (D)............................ 192
2 National Oilwell Varco, Inc. (D).................. 113
12 Rockwell Automation, Inc. ........................ 727
9 Scientific Games Corp. Class A (D)................ 262
11 Smith International, Inc. ........................ 441
6 Terex Corp. (D)................................... 335
10 Tessera Technologies, Inc. (D).................... 363
7 Varian Semiconductor Equipment Associates, Inc.
(D)............................................. 244
-------
5,110
-------
CONSUMER CYCLICAL -- 9.9%
4 Abercrombie & Fitch Co. Class A................... 293
9 Advance Auto Parts, Inc. ......................... 327
20 Avnet, Inc. (D)................................... 481
11 Burger King Holdings, Inc. (D).................... 180
8 Carter's, Inc. (D)................................ 226
16 Chico's FAS, Inc. (D)............................. 388
11 Coach, Inc. (D)................................... 448
3 Coldwater Creek, Inc. (D)......................... 99
5 Fastenal Co. ..................................... 219
4 MSC Industrial Direct Co., Inc. .................. 175
11 Newell Rubbermaid, Inc. .......................... 302
5 Oshkosh Truck Corp. .............................. 235
5 PetSmart, Inc. ................................... 158
4 Polo Ralph Lauren Corp. .......................... 274
3 Tiffany & Co. .................................... 91
6 Tim Hortons, Inc. (D)............................. 174
9 TJX Cos., Inc. ................................... 255
6 Tractor Supply Co. (D)............................ 282
19 Urban Outfitters, Inc. (D)........................ 337
7 W.W. Grainger, Inc. .............................. 486
14 Williams-Sonoma, Inc. ............................ 487
-------
5,917
-------
CONSUMER STAPLES -- 1.2%
4 Bare Escentuals, Inc. ............................ 115
11 Hershey Co. ...................................... 588
-------
703
-------
ENERGY -- 5.0%
9 BJ Services Co. .................................. 280
10 Complete Production Services, Inc. (D)............ 190
4 ENSCO International, Inc. ........................ 199
5 Forest Oil Corp. (D).............................. 174
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
ENERGY -- (CONTINUED)
12 Newfield Exploration Co. (D)...................... $ 474
13 Patterson-UTI Energy, Inc. ....................... 310
5 Quicksilver Resources, Inc. (D)................... 162
14 Range Resources Corp. ............................ 393
8 Superior Energy Services, Inc. (D)................ 241
10 Weatherford International Ltd. (D)................ 399
4 XTO Energy, Inc. ................................. 194
-------
3,016
-------
FINANCE -- 10.0%
7 Affiliated Managers Group, Inc. (D)............... 692
4 Arch Capital Group Ltd. (D)....................... 254
12 Aspen Insurance Holdings Ltd. .................... 302
6 CapitalSource, Inc. (D)........................... 161
8 CB Richard Ellis Group, Inc. Class A (D).......... 252
3 Commerce Bancorp, Inc. ........................... 118
8 Comverse Technology, Inc. (D)..................... 169
4 Douglas Emmett, Inc. (D).......................... 91
30 E*Trade Financial Corp. (D)....................... 690
19 Global Cash Access, Inc. (D)...................... 305
11 Host Hotels & Resorts, Inc. ...................... 248
2 IntercontinentalExchange, Inc. (D)................ 179
4 Legg Mason, Inc. ................................. 319
1 MasterCard, Inc. ................................. 94
17 Montpelier Re Holdings Ltd. ...................... 305
2 Morningstar, Inc. ................................ 92
6 Nasdaq Stock Market, Inc. (D)..................... 220
5 Northern Trust Corp. ............................. 311
6 TCF Financial Corp. .............................. 153
11 W.R. Berkley Corp. ............................... 405
17 Willis Group Holdings Ltd. ....................... 634
-------
5,994
-------
HEALTH CARE -- 12.1%
3 Allergan, Inc. ................................... 304
6 Barr Pharmaceuticals, Inc. (D).................... 333
3 Brookdale Senior Living, Inc. .................... 143
5 C.R. Bard, Inc. .................................. 390
10 Celgene Corp. (D)................................. 555
6 Cephalon, Inc. (D)................................ 398
10 Charles River Laboratories International, Inc.
(D)............................................. 447
6 Cooper Companies, Inc. ........................... 334
8 Covance, Inc. (D)................................. 465
8 Endo Pharmaceuticals Holdings, Inc. (D)........... 230
6 Gen-Probe, Inc. (D)............................... 304
8 Henry Schein, Inc. (D)............................ 395
6 Kinetic Concepts, Inc. (D)........................ 215
5 Kos Pharmaceuticals, Inc. (D)..................... 265
30 MedImmune, Inc. (D)............................... 949
3 OSI Pharmaceuticals, Inc. (D)..................... 100
9 Respironics, Inc. (D)............................. 313
23 St. Jude Medical, Inc. (D)........................ 785
4 Zimmer Holdings, Inc. (D)......................... 316
-------
7,241
-------
SERVICES -- 14.7%
7 Alliance Data Systems Corp. (D)................... 446
13 Allied Waste Industries, Inc. (D)................. 152
4 aQuantive, Inc. (D)............................... 119
15 Autodesk, Inc. (D)................................ 546
7 Brookfield Asset Management, Inc. ................ 316
6 Cablevision Systems Corp. ........................ 153
4 Cerner Corp. (D).................................. 210
</Table>
The accompanying notes are an integral part of these financial statements.
200
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
SERVICES -- (CONTINUED)
11 CheckFree Corp. (D)............................... $ 439
5 Cintas Corp. ..................................... 212
12 Cogent, Inc. (D).................................. 143
9 Cognizant Technology Solutions Corp. (D).......... 659
4 Corporate Executive Board Co. .................... 370
31 Entravision Communications Corp. Class A (D)...... 227
5 Express Scripts, Inc. (D)......................... 299
7 Factset Research Systems, Inc. ................... 354
7 Gaylord Entertainment Co. (D)..................... 342
5 Getty Images, Inc. (D)............................ 218
1 Harrah's Entertainment, Inc. ..................... 91
4 Harsco Corp. ..................................... 286
16 Hilton Hotels Corp. .............................. 451
12 IMS Health, Inc. ................................. 346
6 Iron Mountain, Inc. (D)........................... 250
8 Lamar Advertising Co. (D)......................... 456
8 Liberty Global, Inc. (D).......................... 210
14 Paychex, Inc. .................................... 543
5 Penn National Gaming, Inc. (D).................... 180
4 Robert Half International, Inc. .................. 160
4 VCA Antech, Inc. (D).............................. 130
7 Weight Watchers International, Inc. .............. 298
18 XM Satellite Radio Holdings, Inc. Class A (D)..... 205
-------
8,811
-------
TECHNOLOGY -- 23.4%
29 Activision, Inc. (D).............................. 446
4 Advanced Micro Devices, Inc. (D).................. 95
10 Akamai Technologies, Inc. (D)..................... 462
14 American Tower Corp. Class A (D).................. 509
6 AMETEK, Inc. ..................................... 292
13 Amphenol Corp. Class A............................ 882
14 Analog Devices, Inc. ............................. 437
30 Andrew Corp. (D).................................. 282
3 Broadcom Corp. Class A (D)........................ 98
15 Ceridian Corp. (D)................................ 361
6 Citrix Systems, Inc. (D).......................... 184
27 CNET Networks, Inc. (D)........................... 245
11 Crown Castle International Corp. (D).............. 354
10 DaVita, Inc. (D).................................. 582
3 Dun & Bradstreet Corp. (D)........................ 209
1 Electronic Arts, Inc. (D)......................... 76
8 Fidelity National Information Services, Inc. ..... 333
6 Fiserv, Inc. (D).................................. 314
3 Fisher Scientific International, Inc. (D)......... 229
15 FormFactor, Inc. (D).............................. 568
2 Garmin Ltd. ...................................... 108
8 Harman International Industries, Inc. ............ 815
13 IAC/Interactive Corp. (D)......................... 389
27 Jabil Circuit, Inc. .............................. 771
4 L-3 Communications Holdings, Inc. ................ 302
14 Linear Technology Corp. .......................... 434
9 Marvell Technology Group Ltd. (D)................. 168
4 MEMC Electronic Materials, Inc. (D)............... 150
9 Microchip Technology, Inc. ....................... 306
7 National Semiconductor Corp. ..................... 164
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
25 NAVTEQ Corp. (D).................................. $ 823
5 Network Appliance, Inc. (D)....................... 197
20 Neustar, Inc. (D)................................. 579
5 NII Holdings, Inc. Class B (D).................... 341
19 Palm, Inc. (D).................................... 286
3 Research In Motion Ltd. (D)....................... 378
6 Roper Industries, Inc. ........................... 289
3 SanDisk Corp. (D)................................. 166
10 Satyam Computer Services Ltd. (D)................. 214
14 Western Digital Corp. (D)......................... 258
-------
14,096
-------
TRANSPORTATION -- 2.8%
5 American Commercial Lines, Inc. (D)............... 297
21 Gentex Corp. ..................................... 332
8 McDermott International, Inc. (D)................. 378
8 Royal Caribbean Cruises Ltd. ..................... 330
9 Southwest Airlines Co. ........................... 130
7 UTI Worldwide, Inc. .............................. 186
-------
1,653
-------
UTILITIES -- 0.8%
9 Kinder Morgan Management LLC...................... 393
4 Suntech Power Holdings Co. Ltd. ADR (D)........... 98
-------
491
-------
Total common stock
(cost $54,340).................................. $55,682
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 3.2%
FINANCE -- 3.2%
$1,943 State Street Bank Money Market Fund............... $ 1,943
-------
Total short-term investments
(cost $1,943)................................... $ 1,943
-------
Total investments in securities
(cost $56,283) (C).............................. $57,625
=======
</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 3.07% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $56,470 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $ 3,797
Unrealized depreciation......................... (2,642)
-------
Net unrealized appreciation..................... $ 1,155
=======
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
201
THE HARTFORD SELECT MIDCAP VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 94.5%
BASIC MATERIALS -- 6.0%
1 Albemarle Corp. .................................. $ 72
16 Ball Corp. ....................................... 649
6 Carlisle Cos., Inc. .............................. 469
10 Crane Co. ........................................ 403
5 Fortune Brands, Inc. ............................. 369
14 Lubrizol Corp. ................................... 617
6 Precision Castparts Corp. ........................ 388
8 Rohm & Haas Co. .................................. 394
14 Syngenta AG ADR................................... 464
8 USG Corp. (D)..................................... 396
20 Valspar Corp. .................................... 531
-------
4,752
-------
CAPITAL GOODS -- 4.0%
13 American Standard Cos., Inc. ..................... 562
18 Goodrich Corp. ................................... 789
10 Hasbro, Inc. ..................................... 264
10 Ingersoll-Rand Co. Class A........................ 360
23 Marvel Entertainment, Inc. (D).................... 581
7 Textron, Inc. .................................... 655
-------
3,211
-------
CONSUMER CYCLICAL -- 13.2%
5 AutoZone, Inc. (D)................................ 560
59 Avnet, Inc. (D)................................... 1,404
9 Chico's FAS, Inc. (D)............................. 206
23 Claire's Stores, Inc. ............................ 655
22 Dollar Tree Stores, Inc. (D)...................... 687
22 Foot Locker, Inc. ................................ 510
12 Furniture Brands International, Inc. ............. 218
15 Genuine Parts Co. ................................ 660
33 Ingram Micro, Inc. (D)............................ 674
16 Kohl's Corp. (D).................................. 1,130
58 Leggett & Platt, Inc. ............................ 1,346
15 Liz Claiborne, Inc. .............................. 616
7 Mohawk Industries, Inc. (D)....................... 480
-- Oshkosh Truck Corp. .............................. 5
9 Sysco Corp. ...................................... 297
8 Yum! Brands, Inc. ................................ 446
20 Zale Corp. (D).................................... 580
-------
10,474
-------
CONSUMER STAPLES -- 1.4%
5 McCormick & Co., Inc. ............................ 180
21 Pilgrim's Pride Corp. ............................ 527
28 Tyson Foods, Inc. Class A......................... 410
-------
1,117
-------
ENERGY -- 7.4%
5 AGL Resources, Inc. .............................. 180
8 Apache Corp. ..................................... 509
14 Cimarex Energy Co. ............................... 515
9 ENSCO International, Inc. ........................ 455
25 Forest Oil Corp. (D).............................. 816
14 Mariner Energy, Inc. (D).......................... 279
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
ENERGY -- (CONTINUED)
12 Nabors Industries Ltd. (D)........................ $ 383
12 Noble Energy, Inc. ............................... 598
9 ONEOK, Inc. ...................................... 391
17 Pioneer Natural Resources Co. .................... 709
9 Pogo Producing Co. ............................... 385
19 Williams Cos., Inc. .............................. 462
5 XTO Energy, Inc. ................................. 229
-------
5,911
-------
FINANCE -- 24.6%
3 Alleghany Corp. (D)............................... 896
7 Allied World Assurance Holdings Ltd. (D).......... 284
8 Ameriprise Financial, Inc. ....................... 412
23 AMVESCAP plc ADR.................................. 535
59 Annaly Capital Management, Inc. .................. 775
28 AON Corp. ........................................ 960
2 Arch Capital Group Ltd. (D)....................... 154
16 Arthur J. Gallagher & Co. ........................ 434
23 Comverse Technology, Inc. (D)..................... 509
18 E*Trade Financial Corp. (D)....................... 421
20 Endurance Specialty Holdings Ltd. ................ 720
30 Fidelity National Financial, Inc. ................ 673
48 Fidelity National Title Group, Inc. .............. 1,062
11 Hudson City Bancorp, Inc. ........................ 154
14 Keycorp........................................... 507
20 Leucadia National Corp. .......................... 535
13 Marshall & Ilsley Corp. .......................... 604
23 MBIA, Inc. ....................................... 1,454
13 Mellon Financial Corp. ........................... 485
18 Mercury General Corp. ............................ 945
7 Nuveen Investments, Inc. Class A.................. 365
3 People's Bank..................................... 130
7 PNC Financial Services Group, Inc. ............... 504
18 Popular, Inc. .................................... 327
8 Protective Life Corp. ............................ 350
8 Rent-A-Center, Inc. (D)........................... 242
9 Ryder System, Inc. ............................... 490
21 StanCorp Financial Group, Inc. ................... 941
6 State Street Corp. ............................... 385
5 The Student Loan Corp. ........................... 1,103
36 Waddell and Reed Financial, Inc. Class A.......... 921
25 Washington Federal, Inc. ......................... 571
1 White Mountains Insurance Group Ltd. ............. 687
-------
19,535
-------
HEALTH CARE -- 5.1%
8 Boston Scientific Corp. (D)....................... 130
7 C.R. Bard, Inc. .................................. 607
22 King Pharmaceuticals, Inc. (D).................... 365
5 Novo Nordisk A/S ADR.............................. 384
7 Omnicare, Inc. ................................... 254
13 Par Pharmaceutical Cos., Inc. (D)................. 254
8 Quest Diagnostics, Inc. .......................... 383
23 Serono S.A. ADR................................... 495
14 STERIS Corp. ..................................... 346
</Table>
The accompanying notes are an integral part of these financial statements.
202
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
12 Watson Pharmaceuticals, Inc. (D).................. $ 330
7 Zimmer Holdings, Inc. (D)......................... 522
-------
4,070
-------
SERVICES -- 13.3%
6 Apollo Group, Inc. Class A (D).................... 233
103 BISYS Group, Inc. (D)............................. 1,138
9 Brookfield Asset Management, Inc. ................ 401
24 Clear Channel Communications, Inc. ............... 829
19 Computer Sciences Corp. (D)....................... 996
10 Convergys Corp. (D)............................... 216
48 Discovery Holding Co. (D)......................... 711
10 Gannett Co., Inc. ................................ 588
12 H & R Block, Inc. ................................ 260
23 Hewitt Associates, Inc. (D)....................... 571
15 Hilton Hotels Corp. .............................. 419
11 International Speedway Corp. Class A.............. 579
75 Interpublic Group of Cos., Inc. (D)............... 815
14 Manpower, Inc. ................................... 956
9 MoneyGram International, Inc. .................... 301
14 R.H. Donnelley Corp. ............................. 846
24 Synopsys, Inc. (D)................................ 540
8 Universal Technical Institute, Inc. (D)........... 150
-------
10,549
-------
TECHNOLOGY -- 12.7%
15 Activision, Inc. (D).............................. 224
4 Affiliated Computer Services, Inc. Class A (D).... 230
5 Amphenol Corp. Class A............................ 367
13 Analog Devices, Inc. ............................. 417
2 Beckman Coulter, Inc. ............................ 132
24 BMC Software, Inc. (D)............................ 732
52 CA, Inc. ......................................... 1,275
20 CSG Systems International, Inc. (D)............... 544
6 Dover Corp. ...................................... 299
7 Dun & Bradstreet Corp. (D)........................ 556
51 First Data Corp. ................................. 1,237
12 Lexmark International, Inc. ADR (D)............... 792
41 LSI Logic Corp. (D)............................... 409
9 Millipore Corp. (D)............................... 581
17 NCR Corp. (D)..................................... 689
22 PerkinElmer, Inc. ................................ 468
19 Polycom, Inc. (D)................................. 516
22 Progress Software Corp. (D)....................... 620
-------
10,088
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TRANSPORTATION -- 1.9%
13 Con-way, Inc. .................................... $ 594
11 Teekay Shipping Corp. ............................ 448
12 YRC Worldwide, Inc. (D)........................... 477
-------
1,519
-------
UTILITIES -- 4.9%
33 CMS Energy Corp. (D).............................. 497
4 Constellation Energy Group, Inc. ................. 262
9 Equitable Resources, Inc. ........................ 353
-- FirstEnergy Corp. ................................ 18
10 FPL Group, Inc. .................................. 495
5 Northeast Utilities............................... 135
12 PG&E Corp. ....................................... 505
18 PPL Corp. ........................................ 611
13 Questar Corp. .................................... 1,042
-------
3,918
-------
Total common stock
(cost $69,065).................................. $75,144
-------
SHORT-TERM INVESTMENTS -- 4.4%
FINANCE -- 4.4%
3,500 State Street Bank Money Market Fund............... $ 3,500
-------
Total short-term investments
(cost $3,500)................................... $ 3,500
-------
Total investments in securities
(cost $72,565) (C).............................. $78,644
=======
</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 2.93% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $72,740 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $6,511
Unrealized depreciation.......................... (607)
------
Net unrealized appreciation...................... $5,904
======
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
203
THE HARTFORD SELECT SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 94.3%
BASIC MATERIALS -- 5.6%
1 Airgas, Inc. ..................................... $ 30
2 Alpha Natural Resources, Inc. (D)................. 37
2 Century Aluminum Co. (D).......................... 82
3 Ceradyne, Inc. (D)................................ 124
9 Coeur d'Alene Mines Corp. (D)..................... 43
2 Dynamic Materials Corp. .......................... 58
2 Kaydon Corp. ..................................... 71
2 Ladish Co., Inc. (D).............................. 62
2 Meridian Gold, Inc. (D)........................... 56
1 Mobile Mini, Inc. (D)............................. 45
2 RBS Bearings, Inc. (D)............................ 49
1 Royal Gold, Inc. ................................. 29
3 Williams Scotsman International, Inc. (D)......... 59
-------
745
-------
CAPITAL GOODS -- 7.4%
4 Brooks Automation, Inc. (D)....................... 51
1 Bucyrus International, Inc. ...................... 52
-- Charles & Colvard Ltd. ........................... 2
3 Daktronics, Inc. ................................. 69
2 Dril-Quip, Inc. (D)............................... 95
2 Goodman Global, Inc. (D).......................... 24
2 Graco, Inc. ...................................... 86
2 IDEX Corp. ....................................... 98
3 K & F Industries Holdings, Inc. (D)............... 66
1 Lufkin Industries, Inc. .......................... 78
1 Moog, Inc. Class A (D)............................ 45
1 SauerDanfoss, Inc. ............................... 37
2 Shuffle Master, Inc. (D).......................... 56
3 Tessera Technologies, Inc. (D).................... 87
5 TurboChef Technologies, Inc. (D).................. 64
1 Universal Compression Holdings, Inc. (D).......... 66
-------
976
-------
CONSUMER CYCLICAL -- 11.9%
4 Central Euro Distribution Corp. (D)............... 98
2 Citi Trends, Inc. (D)............................. 75
2 Desarrolladora Homex (D).......................... 88
5 GMarket, Inc. ADR (D)............................. 86
5 GSI Commerce, Inc. (D)............................ 83
4 Iconix Brand Group, Inc. ......................... 76
6 Insight Enterprises, Inc. (D)..................... 131
3 Interline Brands, Inc. (D)........................ 72
3 Knoll, Inc. ...................................... 51
4 Performance Food Group Co. (D).................... 105
2 Pool Corp. ....................................... 98
3 PSS World Medical, Inc. (D)....................... 64
4 Quicksilver, Inc. (D)............................. 49
2 RARE Hospitality International, Inc. (D).......... 54
1 School Specialty, Inc. (D)........................ 35
5 Sierra Wireless, Inc. (D)......................... 61
2 Sigma Designs, Inc. (D)........................... 38
1 Steven Madden Ltd. ............................... 45
1 Texas Roadhouse, Inc. (D)......................... 12
2 United Natural Foods, Inc. (D).................... 77
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
CONSUMER CYCLICAL -- (CONTINUED)
1 Urban Outfitters, Inc. (D)........................ $ 21
2 Volcom, Inc. (D).................................. 75
2 Zumiez, Inc. (D).................................. 79
-------
1,573
-------
ENERGY -- 6.9%
1 AGL Resources, Inc. .............................. 49
2 ATP Oil & Gas Corp. (D)........................... 103
4 Bronco Drilling Co., Inc. (D)..................... 68
6 Carrizo Oil & Gas, Inc. (D)....................... 157
4 Denbury Resources, Inc. (D)....................... 101
2 Hercules Offshore, Inc. (D)....................... 78
1 Holly Corp. ...................................... 43
2 Parallel Petroleum Corp. ......................... 48
7 Petrohawk Energy Corp. (D)........................ 76
4 Pioneer Drilling Co. (D).......................... 53
2 Pride International, Inc. (D)..................... 66
2 Superior Well Services, Inc. (D).................. 41
2 Willbros Group, Inc. (D).......................... 32
-------
915
-------
FINANCE -- 7.9%
6 Annaly Capital Management Inc. ................... 75
2 Aspen Insurance Holdings Ltd. .................... 52
1 Bank of the Ozarks, Inc. ......................... 41
1 Boston Private Financial Holdings, Inc. .......... 36
3 CBRE Realty Finance, Inc. (D)..................... 41
4 Centene Corp. (D)................................. 92
6 Eaton Vance Corp. ................................ 180
2 Gladstone Capital Corp. .......................... 40
2 Gladstone Commercial Corp. ....................... 53
3 HealthExtras, Inc. (D)............................ 71
4 JER Investors Trust, Inc. ........................ 63
-- Jones Lang LaSalle, Inc. ......................... 28
2 Montpelier Re Holdings Ltd. ...................... 37
2 Republic Companies Group, Inc. ................... 34
1 StanCorp Financial Group, Inc. ................... 37
3 Sunstone Hotel Investors, Inc. ................... 77
6 UCBH Holdings, Inc. .............................. 94
-------
1,051
-------
HEALTH CARE -- 10.3%
2 Abaxis, Inc. (D).................................. 38
3 Adams Respiratory Therapeutics, Inc. (D).......... 121
1 Affymetrix, Inc. (D).............................. 31
3 ArthroCare Corp. (D).............................. 101
3 Aspreva Pharmaceuticals Corp. (D)................. 60
2 Bright Horizons Family Solutions, Inc. (D)........ 77
2 Foxhollow Technologies, Inc. (D).................. 53
1 Healthways, Inc. (D).............................. 55
3 I-Flow Corp. (D).................................. 42
1 Integra LifeSciences Holdings Corp. (D)........... 52
-- Kos Pharmaceuticals, Inc. (D)..................... 20
3 Kyphon, Inc. (D).................................. 115
1 Lifecell Corp. (D)................................ 28
2 Medicis Pharmaceutical Corp. Class A.............. 63
4 NightHawk Radiology Holdings, Inc. ............... 74
</Table>
The accompanying notes are an integral part of these financial statements.
204
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
2 Noven Pharmaceuticals, Inc. (D)................... $ 38
2 NuVasive, Inc. (D)................................ 52
3 PharmaNet Development Group, Inc. (D)............. 52
5 Salix Pharmaceuticals Ltd. (D).................... 64
3 Sciele Pharma, Inc. (D)........................... 70
2 Sierra Health Services, Inc. (D).................. 65
4 Symmetry Medical, Inc. (D)........................ 58
1 Vital Signs, Inc. ................................ 38
-------
1,367
-------
SERVICES -- 18.6%
3 Acme Packet, Inc. ................................ 57
1 Alliance Data Systems Corp. (D)................... 36
2 Allis-Chalmers Energy, Inc. (D)................... 35
4 Allscripts Healthcare Solutions, Inc. (D)......... 91
2 American Ecology Corp. ........................... 31
6 aQuantive, Inc. (D)............................... 166
3 Atheros Communications, Inc. (D).................. 74
1 Avid Technology, Inc. (D)......................... 29
2 Broadwing Corp. (D)............................... 33
2 Carmike Cinemas, Inc. ............................ 34
1 Cerner Corp. (D).................................. 34
1 CRA International, Inc. (D)....................... 71
2 DeVry, Inc. (D)................................... 37
1 Digital River, Inc. (D)........................... 75
5 Digitas, Inc. (D)................................. 51
1 Entercom Communications Corp. .................... 14
5 Entravision Communications Corp. Class A (D)...... 40
5 Epicor Software Corp. (D)......................... 72
4 Essex Corp. (D)................................... 75
3 Focus Media Holding Ltd. ADR (D).................. 175
2 FTI Consulting, Inc. (D).......................... 65
2 Gevity HR, Inc. .................................. 34
7 Healthspring, Inc. (D)............................ 149
3 inVentiv Health Inc. (D).......................... 83
3 Ixia (D).......................................... 31
6 LECG Corp. (D).................................... 112
3 Mentor Graphics Corp. (D)......................... 42
1 Open Solutions, Inc. (D).......................... 37
2 Optimal Group, Inc. (D)........................... 21
2 Providence Service Corp. (D)...................... 60
4 Quest Software, Inc. (D).......................... 60
4 Regal Entertainment Group......................... 88
2 Resources Connection, Inc. (D).................... 67
1 Stericycle, Inc. (D).............................. 78
3 Sunopta, Inc. (D)................................. 28
3 Time Warner Telecom, Inc. Class A (D)............. 52
2 Veritas DGC, Inc. (D)............................. 151
2 Wright Express Corp. (D).......................... 55
-------
2,443
-------
TECHNOLOGY -- 22.1%
1 Actuant Corp. Class A............................. 41
3 ADTRAN, Inc. ..................................... 69
6 Applied Micro Circuits Corp. (D).................. 19
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
-- Aspect Medical Systems, Inc. (D).................. $ 5
1 ATMI, Inc. (D).................................... 35
2 Avocent Corp. (D)................................. 77
1 Benchmark Electronics, Inc. (D)................... 38
2 Blackbaud, Inc. .................................. 38
2 Commvault Systems, Inc. .......................... 36
5 Concur Technologies, Inc. (D)..................... 77
3 Consolidated Communications Holdings, Inc. ....... 48
1 Ctrip.Com International Ltd. ..................... 44
4 DealerTrack Holdings, Inc. (D).................... 92
2 DivX, Inc. ....................................... 48
13 Dobson Communications Corp. (D)................... 99
1 Equinix, Inc. (D)................................. 96
2 Exlservice Holdings, Inc. (D)..................... 44
3 FairPoint Communications, Inc. ................... 54
4 FalconStor Software, Inc. (D)..................... 35
2 Gatehouse Media, Inc. ............................ 49
-- Global Payments, Inc. ............................ 13
2 Home Diagnostics, Inc. ........................... 22
1 Hyperion Solutions Corp. (D)...................... 45
4 Integrated Device Technology, Inc. (D)............ 59
1 Interactive Intelligence, Inc. (D)................ 25
1 Intersil Corp. ................................... 30
3 Iowa Telecommunications Services, Inc. ........... 60
2 Jupitermedia Corp. (D)............................ 16
2 Kenexa Corp. (D).................................. 74
4 Lionbridge Technologies (D)....................... 29
3 Natus Medical, Inc. (D)........................... 55
5 Online Resources Corp. (D)........................ 51
5 Oplink Communications, Inc. (D)................... 89
1 Optium Corp. (D).................................. 18
1 Palomar Medical Technologies, Inc. (D)............ 28
3 PC-Tel, Inc. (D).................................. 34
1 PLX Technology, Inc. (D).......................... 15
1 Polycom, Inc. (D)................................. 27
2 Rackable Systems, Inc. (D)........................ 68
7 Redback Networks, Inc. (D)........................ 103
3 RightNow Technologies, Inc. (D)................... 55
2 SAVVIS, Inc. (D).................................. 47
4 SBA Communications Corp. (D)...................... 115
3 Spectranetics Corp. (D)........................... 40
2 Supertex, Inc. (D)................................ 80
2 Syneron Medical Ltd. (D).......................... 64
4 TradeStation Group, Inc. (D)...................... 69
2 Travelzoo, Inc. .................................. 52
7 Trident Microsystems, Inc. (D).................... 148
5 Valueclick, Inc. (D).............................. 98
1 Varian, Inc. (D).................................. 47
7 Vasco Data Security International (D)............. 81
2 Vital Images, Inc. (D)............................ 50
3 Zoltek Companies, Inc. ........................... 73
-------
2,924
-------
TRANSPORTATION -- 2.3%
1 American Commercial Lines, Inc. (D)............... 51
9 Heartland Express, Inc. .......................... 151
</Table>
The accompanying notes are an integral part of these financial statements.
205
THE HARTFORD SELECT SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- (CONTINUED)
3 Horizon Lines, Inc. Class A....................... $ 63
1 Hornbeck Offshore Services, Inc. ................. 43
-------
308
-------
UTILITIES -- 1.3%
1 California Water Service Group.................... 51
1 Cleco Corp. ...................................... 23
1 PNM Resources, Inc. .............................. 39
2 UniSource Energy Corp. ........................... 60
-------
173
-------
Total common stock
(cost $11,504).................................. $12,475
-------
SHORT-TERM INVESTMENTS -- 4.7%
FINANCE -- 4.7%
628 State Street Bank Money Market Fund............... $ 628
-------
Total short-term investments
(cost $628)..................................... $ 628
-------
Total investments in securities
(cost $12,132) (C).............................. $13,103
=======
</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 4.62% of total net assets at October 31, 2006.
(C)At October 31, 2006, the cost of securities for federal income tax
purposes was $12,175 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $1,238
Unrealized depreciation.......................... (310)
------
Net unrealized appreciation...................... $ 928
======
</Table>
(D)Currently non-income producing.
(W)See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
206
THE HARTFORD SELECT SMALLCAP VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 93.3%
BASIC MATERIALS -- 8.1%
8 Balchem Corp. .................................... $ 174
-- Banta George...................................... 9
-- CIRCOR International, Inc. ....................... 4
-- Ferro Corp. ...................................... 1
1 Gibralter Industries, Inc. ....................... 11
-- Greif, Inc. ...................................... 27
1 H.B. Fuller Co. .................................. 33
2 Hercules, Inc. (D)................................ 34
1 Innospec, Inc. ................................... 31
6 Landec Corp. (D).................................. 53
7 Matthews International Corp. Class A.............. 261
3 Neenah Paper, Inc. ............................... 103
-- NN, Inc. ......................................... 1
1 OM Group, Inc. (D)................................ 38
-- Palm Harbor Holmes, Inc. (D)...................... 1
1 Playtex Products, Inc. (D)........................ 10
1 Rock Tenn Co. Class A............................. 29
-- Rockwood Holdings, Inc. (D)....................... 6
4 RPM International, Inc. .......................... 82
1 Sensient Technologies Corp. ...................... 33
1 Silgan Holdings, Inc. ............................ 26
-- Spartech Corp. ................................... 13
-- Superior Essex, Inc. (D).......................... 9
14 Tempur-Pedic International, Inc. (D).............. 282
4 Tredegar Corp. ................................... 72
2 USEC, Inc. ....................................... 19
-- Valmont Industries, Inc. ......................... 12
2 Watts Water Technologies, Inc. ................... 78
-------
1,452
-------
CAPITAL GOODS -- 6.3%
2 Asyst Technologies, Inc. (D)...................... 12
2 Axcelis Technologies, Inc. (D).................... 13
-- Blyth, Inc. ...................................... 1
-- Cascade Corp. .................................... 4
8 Clarcor, Inc. .................................... 261
6 Hexcel Corp. (D).................................. 91
-- Imation Corp. .................................... 2
-- Jakks Pacific, Inc. (D)........................... 5
6 K2, Inc. (D)...................................... 82
1 Kadant, Inc. (D).................................. 22
-- Leapfrog Enterprises, Inc. (D).................... 3
4 Lincoln Electric Holdings, Inc. .................. 271
1 MKS Instruments, Inc. (D)......................... 29
1 Modine Manufacturing Co. ......................... 14
1 Moog, Inc. Class A (D)............................ 24
-- Nacco Industries, Inc. Class A.................... 1
-- Nordson Corp. .................................... 21
-- Orbital Sciences Corp. (D)........................ 7
2 RC2 Corp. (D)..................................... 90
1 Steinway Musical Instruments (D).................. 17
-- Tennant Co. ...................................... 1
2 Terex Corp. (D)................................... 104
1 Universal Compression Holdings, Inc. (D).......... 35
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
CAPITAL GOODS -- (CONTINUED)
-- Woodward Governor Co. ............................ $ 15
-- Zygo Corp. (D).................................... --
-------
1,125
-------
CONSUMER CYCLICAL -- 11.6%
1 99 Cents Only Stores (D).......................... 12
-- A.M. Castle & Co. ................................ 11
2 Adaptec, Inc. (D)................................. 7
4 Adesa, Inc. ...................................... 101
5 Aftermarket Technology Corp. (D).................. 102
1 Agilysys, Inc. ................................... 13
-- Albany International Corp. Class A................ 7
6 Alliance One International, Inc. ................. 29
-- Ariba, Inc. (D)................................... --
1 ArvinMeritor, Inc. ............................... 12
2 Big Lots, Inc. (D)................................ 46
1 Blockbuster, Inc. Class A......................... 2
1 BlueLinx Holdings, Inc. .......................... 15
1 BorgWarner, Inc. ................................. 63
1 Brown Shoe Co., Inc. ............................. 21
-- Building Material Holding Corp. .................. 1
-- CEC Entertainment, Inc. (D)....................... 7
1 Charming Shoppes, Inc. (D)........................ 12
6 Cherokee, Inc. ................................... 232
1 Chiquita Brands International, Inc. .............. 15
-- Commercial Vehicles Group, Inc. (D)............... 2
-- CSK Auto Corp. (D)................................ 8
-- Domino's Pizza, Inc. ............................. 11
1 Dycom Industries, Inc. (D)........................ 23
1 EMCOR Group, Inc. (D)............................. 40
4 Fred's, Inc. ..................................... 47
3 Fresh Del Monte Produce, Inc. .................... 41
1 FTD Group, Inc. .................................. 24
1 Furniture Brands International, Inc. ............. 12
-- Genesco, Inc. (D)................................. 2
1 Granite Construction, Inc. ....................... 27
1 Group 1 Automotive, Inc. ......................... 31
7 Huttig Building Products, Inc. (D)................ 36
1 Insight Enterprises, Inc. (D)..................... 17
-- Jack in the Box, Inc. (D)......................... 16
1 Kellwood Co. ..................................... 15
1 Kimball International, Inc. ...................... 28
-- Lear Corp. ....................................... 12
2 Luby's, Inc. ..................................... 18
1 Maidenform Brands, Inc. (D)....................... 27
8 McGrath RentCorp.................................. 211
-- Meritage Homes Corp. (D).......................... 6
-- Navistar International Corp. (D).................. 8
1 Papa John's International, Inc. (D)............... 29
1 Payless ShoeSource, Inc. (D)...................... 35
3 Performance Food Group Co. (D).................... 76
-- Phillips-Van Heusen Corp. ........................ 22
-- Scansource, Inc. ................................. 6
3 School Specialty, Inc. (D)........................ 98
-- Skechers U.S.A., Inc. Class A (D)................. 6
-- Smart & Final, Inc. (D)........................... 7
</Table>
The accompanying notes are an integral part of these financial statements.
207
THE HARTFORD SELECT SMALLCAP VALUE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
CONSUMER CYCLICAL -- (CONTINUED)
-- Stanley Furniture Co., Inc. ...................... $ 3
-- Stride Rite Corp. ................................ 2
1 Syms Corp. ....................................... 10
1 Systemax, Inc. (D)................................ 8
2 United Stationers, Inc. (D)....................... 88
2 Visteon Corp. (D)................................. 11
1 Wolverine World Wide, Inc. ....................... 25
6 World Fuel Services Corp. ........................ 277
-- Zale Corp. (D).................................... 7
-------
2,080
-------
CONSUMER STAPLES -- 2.1%
-- Boston Beer Co., Inc. Class A (D)................. 17
3 Chattem, Inc. (D)................................. 127
2 Delta and Pine Land Co. .......................... 96
-- Gold Kist, Inc. .................................. 6
-- Hain Celestial Group, Inc. (D).................... 8
3 J&J Snack Foods Corp. ............................ 90
1 M&F Worldwide Corp. (D)........................... 10
-- Seaboard Corp. ................................... 21
-- TreeHouse Foods, Inc. ............................ 7
-------
382
-------
ENERGY -- 3.9%
1 Bill Barrett Corp. (D)............................ 18
-- Bois d'Arc Energy, Inc. .......................... 2
-- Callon Petroleum Corp. (D)........................ 5
3 Crosstex Energy, Inc. ............................ 240
-- Exco Resources, Inc. (D).......................... 3
-- Giant Industries, Inc. (D)........................ 2
1 Harvest Natural Resources, Inc. (D)............... 13
-- Houston Exploration Co. (D)....................... 1
1 Laclede Group, Inc. .............................. 18
-- McMoRan Exploration Co. .......................... 1
2 New Jersey Resources Corp. ....................... 114
1 Newpark Resources, Inc. (D)....................... 5
-- Nicor, Inc. ...................................... 6
1 Northwest Natural Gas Co. ........................ 37
-- Penn Virginia Corp. .............................. 20
-- Peoples Energy Corp. ............................. 12
3 Quicksilver Resources, Inc. (D)................... 96
1 Rosetta Resources, Inc. .......................... 16
-- South Jersey Industries, Inc. .................... 9
1 Southwest Gas Corp. .............................. 38
-- Stone Energy Corp. (D)............................ 5
-- Swift Energy Co. (D).............................. 15
-- Trico Marine Services, Inc. (D)................... 6
1 WGL Holdings, Inc. ............................... 23
-------
705
-------
FINANCE -- 26.6%
-- 21st Century Insurance Group...................... 4
-- Accredited Home Lenders (D)....................... 4
1 Affirmative Insurance Holdings.................... 22
1 Alfa Corp. ....................................... 10
-- AMCORE Financial, Inc. ........................... 2
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
6 American Capital Strategies Ltd. ................. $ 259
-- American Equity Investment Life Holding Co. ...... 1
2 American Financial Realty Trust................... 21
1 American Home Mortgage Investment Corp. .......... 29
1 Amerigroup Corp. (D).............................. 22
2 Amerus Group Co. ................................. 110
2 Anthracite Capital, Inc. ......................... 32
-- Anworth Mortgage Asset Corp. ..................... 2
-- Arbor Realty Trust................................ 8
-- Argonaut Group, Inc. (D).......................... 3
-- Avatar Holdings, Inc. ............................ 26
-- Bancfirst Corp. .................................. 15
1 Bank of Granite Corp. ............................ 12
-- Banner Corp. ..................................... 21
1 Berkshire Hills Bancorp, Inc. .................... 25
3 Boston Private Financial Holdings, Inc. .......... 82
-- Camden National Corp. ............................ 2
-- Capital Lease Fund................................ 4
1 Capital Trust, Inc. .............................. 29
1 Capitol Bancorp Ltd. ............................. 29
9 Cathay General Bancorp............................ 298
-- Chemical Financial Corp. ......................... 2
-- Chittenden Corp. ................................. 13
1 Citizens Banking Corp. ........................... 30
-- City Holding Co. ................................. 1
-- Clark, Inc. ...................................... 1
1 Clifton Savings Bancorp, Inc. .................... 6
-- Columbia Banking Systems, Inc. ................... 7
-- Community Banks, Inc. ............................ 6
-- Community Trust Bancorp, Inc. .................... 3
-- CompuCredit Corp. (D)............................. 4
-- Corus Bankshares, Inc. ........................... 3
2 Diamondrock Hospitality........................... 31
-- Dime Community Bancshares......................... 5
1 Direct General Co. ............................... 11
-- Dollar Thrifty Automotive Group, Inc. (D)......... 8
1 Doral Financial Corp. ............................ 4
-- Education Realty Trust, Inc. ..................... 3
1 EMC Insurance Group, Inc. ........................ 19
5 Entertainment Properties Trust.................... 264
1 Equity Inns, Inc. ................................ 12
1 Equity One, Inc. ................................. 20
1 FBL Financial Group Class A....................... 19
1 Felcor Lodging Trust, Inc. ....................... 29
2 Fieldstone Investment Corp. ...................... 20
4 Financial Federal Corp. .......................... 116
3 First BanCorp Puerto Rico......................... 26
1 First Charter Corp. .............................. 27
-- First Commonwealth Financial Corp. ............... --
-- First Indiana Corp. .............................. 11
1 First Industrial Realty Trust, Inc. .............. 37
-- First Merchants Corp. ............................ 11
-- First Midwest Bancorp, Inc. ...................... 16
1 First Niagara Financial Group, Inc. .............. 17
1 First Place Financial............................. 24
3 First Republic Bank............................... 113
</Table>
The accompanying notes are an integral part of these financial statements.
208
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
FINANCE -- (CONTINUED)
-- FirstFed Financial Corp. (D)...................... $ 3
-- F.N.B. Corp. ..................................... 4
2 FNB Corp. ........................................ 27
1 Franklin Bank Corp. (D)........................... 27
-- Glenborough Realty Trust, Inc. ................... 6
1 Gramercy Capital Corp. ........................... 26
1 Great Southern Bancorp, Inc. ..................... 27
1 Hanmi Financial Corp. ............................ 13
-- Harleysville Group, Inc. ......................... 13
2 Highland Hospitality Corp. ....................... 27
1 Highwoods Properties, Inc. ....................... 21
-- Horace Mann Educators Corp. ...................... 9
-- Horizon Financial Corp. .......................... 8
3 Impac Mortgage Holdings, Inc. .................... 29
-- Independent Bank Corp. (MA)....................... 4
1 Independent Bank Corp. (MI)....................... 16
2 Infinity Property & Casualty Corp. ............... 103
1 Innkeepers USA Trust.............................. 11
1 Integra Bank Corp. ............................... 28
1 Irwin Financial Corp. ............................ 29
1 ITLA Capital Corp. ............................... 30
-- Kite Realty Group Trust........................... 8
-- Knight Capital Group, Inc. (D).................... 4
1 LaBranche & Co., Inc. (D)......................... 13
1 MAF Bancorp, Inc. ................................ 32
-- MainSource Financial Group, Inc. ................. 6
-- Marlin Business Services Corp. (D)................ 8
18 MCG Capital Corp. ................................ 329
2 Medical Properties Trust, Inc. ................... 27
-- Midland Co. ...................................... 9
-- NASB Financial, Inc. ............................. 1
7 National Financial Partners Corp. ................ 256
-- National Health Investors, Inc. .................. 10
-- National Interstate Corp. (D)..................... 3
-- Nationwide Health Properties, Inc. ............... 8
1 NetBank, Inc. .................................... 4
-- NGP Capital Resources Co. ........................ 3
-- Novastar Financial, Inc. ......................... 8
-- NYMAGIC, Inc. .................................... 14
3 Oceaneering International, Inc. (D)............... 97
-- Ocwen Financial Corp. ............................ 2
1 Odyssey Re Holdings Corp. ........................ 29
1 Ohio Casualty Corp. .............................. 25
2 Old National Bankcorp............................. 32
1 Omega Financial Corp. ............................ 17
-- Omega Healthcare Investors........................ --
-- Pacific Capital Bancorp........................... 5
1 Partners Trust Financial Group, Inc. ............. 14
1 Penn Real Estate Investment Trust................. 33
-- Pennfed Financial Services, Inc. ................. 8
-- Peoples Bancorp, Inc. ............................ 9
-- PFF Bancorp, Inc. ................................ 3
2 Phoenix Cos....................................... 37
1 Piper Jaffray Cos. (D)............................ 36
1 PMA Capital Corp. Class A (D)..................... 9
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
-- Presidential Life Corp. .......................... $ 3
3 Prosperity Bancshares, Inc. ...................... 97
-- Provident Bankshares Corp. ....................... 14
1 Provident Financial Services, Inc. ............... 20
-- PS Business Parks, Inc. .......................... 23
2 R&G Financial Corp. Class B....................... 12
1 Ramco-Gershenson Properties Trust................. 28
-- Renasant Corp. ................................... 13
-- Rent-A-Center, Inc. (D)........................... 3
1 Republic Bancorp, Inc. ........................... 10
2 Resource Capital Corp. ........................... 25
-- Sandy Spring Bancorp, Inc. ....................... 11
1 Santander BanCorp................................. 10
-- SCBT Financial Corp. ............................. 3
2 Selective Insurance Group......................... 116
2 Senior Housing Properties Trust................... 38
1 Simmons First National Corp. ..................... 16
2 StanCorp Financial Group, Inc. ................... 87
-- State Auto Financial Corp. ....................... 5
-- Sterling Bancshares, Inc. ........................ 8
2 Stewart Information Services Corp. ............... 70
-- Sunstone Hotel Investors, Inc. ................... --
6 Superior Bancorp (D).............................. 63
1 Susquehanna Bancshares, Inc. ..................... 18
-- SWS Group, Inc. .................................. 8
-- TierOne Corp. .................................... 2
1 Triad Guaranty, Inc. ............................. 28
1 Trustmark Corp. .................................. 35
2 Trustreet Properties, Inc. ....................... 36
-- Union Bankshares Corp. ........................... 8
1 United Bankshares, Inc. .......................... 21
2 United Community Financial........................ 24
2 Universal American Financial Corp. ............... 30
3 UTStarcom, Inc. (D)............................... 33
-- Virginia Financial Group, Inc. ................... 1
14 W Holding Co., Inc. .............................. 80
-- Waddell and Reed Financial, Inc. Class A.......... 10
7 Washington Federal, Inc. ......................... 151
1 WesBanco, Inc. ................................... 32
-- West Coast Bancorp................................ 9
2 Winston Hotels, Inc. ............................. 23
-- WSFS Financial Corp. ............................. 4
-------
4,779
-------
HEALTH CARE -- 4.9%
2 Advanced Medical Optics, Inc. (D)................. 94
2 Albany Molecular Research, Inc. (D)............... 19
-- Alliance Imaging, Inc. (D)........................ 4
1 Alpharma, Inc. Class A............................ 11
-- Applera Corp. -- Celera Genomics Group (D)........ 1
-- Apria Healthcare Group, Inc. (D).................. 10
2 Cooper Companies, Inc. ........................... 86
1 Cross Country Healthcare, Inc. (D)................ 24
1 Forrester Research, Inc. (D)...................... 24
2 Healthtronics, Inc. (D)........................... 11
-- Kindred Healthcare, Inc. (D)...................... 2
</Table>
The accompanying notes are an integral part of these financial statements.
209
THE HARTFORD SELECT SMALLCAP VALUE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
4 Landauer, Inc. ................................... $ 197
-- Longs Drug Stores Corp. .......................... 4
-- Magellan Health Services, Inc. (D)................ 7
-- Martek Biosciences Corp. (D)...................... 2
-- MedCath Corp. (D)................................. 4
-- Nabi Biopharmaceuticals (D)....................... 1
1 NBTY, Inc. ....................................... 25
1 NPS Pharmaceuticals, Inc. (D)..................... 3
-- Nu Skin Enterprises, Inc. Class A................. 3
-- Odyssey HealthCare, Inc. (D)...................... 6
5 Option Care, Inc. ................................ 58
2 Par Pharmaceutical Cos., Inc. (D)................. 37
2 Perrigo Co. ...................................... 32
1 Prestige Brands Holdings, Inc. ................... 17
-- Savient Pharmaceuticals, Inc. (D)................. --
2 United Surgical Partners International............ 57
-- ViroPharma, Inc. (D).............................. 4
-- Vital Signs, Inc. ................................ 16
4 Young Innovations, Inc. .......................... 128
-------
887
-------
SERVICES -- 15.5%
13 ABM Industries, Inc. ............................. 260
1 Alderwoods Group, Inc. (D)........................ 23
1 American Greetings Corp. Class A (D).............. 32
-- Ameristar Casinos, Inc. .......................... 2
3 Avid Technology, Inc. (D)......................... 101
-- Black Box Corp. .................................. 6
1 Brady Corp. Class A............................... 26
3 Business Objects S.A. ADR (D)..................... 126
2 Carmike Cinemas, Inc. ............................ 40
-- Catalina Marketing Corp. ......................... 2
2 Central European Media Enterprises Ltd. (D)....... 137
4 Central Parking Corp. ............................ 75
1 CIBER, Inc. (D)................................... 4
2 Citadel Broadcasting Corp. ....................... 17
4 Computer Services, Inc. .......................... 113
-- Consolidated Graphics, Inc. (D)................... 17
8 Corinthian Colleges, Inc. (D)..................... 92
1 Covansys Corp. (D)................................ 16
2 Cox Radio, Inc. Class A (D)....................... 34
-- Cumulus Media, Inc. Class A (D)................... 2
1 Dendrite International, Inc. (D).................. 9
-- Dynamex, Inc. .................................... 8
-- Emmis Communications Corp. Class A (D)............ 1
1 Entercom Communications Corp. .................... 16
1 Entravision Communications Corp. Class A (D)...... 7
1 Foundry Networks, Inc. (D)........................ 9
1 FTI Consulting, Inc. (D).......................... 31
1 G & K Services, Inc. Class A...................... 32
4 Gartner, Inc. Class A (D)......................... 74
1 Global Imaging Systems, Inc. (D).................. 13
-- Gray Television, Inc. ............................ --
-- Great Wolf Resorts, Inc. (D)...................... 2
1 Harsco Corp. ..................................... 106
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SERVICES -- (CONTINUED)
-- Heidrick & Struggles International, Inc. (D)...... $ 8
11 Inter-Tel, Inc. .................................. 229
1 John H. Harland Co. .............................. 21
1 Journal Register Co. ............................. 5
1 Keane, Inc. (D)................................... 7
1 Lakes Entertainment, Inc. ........................ 8
1 Lee Enterprises, Inc. ............................ 20
1 Lin TV Corp. (D).................................. 6
2 Live Nation, Inc. (D)............................. 36
-- Lodgian, Inc. (D)................................. 1
-- Macrovision Corp. (D)............................. 7
5 Manhattan Associates, Inc. (D).................... 135
1 McDATA Corp. Class A (D).......................... 4
1 MPS Group, Inc. (D)............................... 20
-- MTS Systems Corp. ................................ 1
4 Navigant Consulting, Inc. (D)..................... 73
-- NCO Group, Inc. (D)............................... 8
1 Netscout Systems, Inc. (D)........................ 10
1 Opnet Technologies, Inc. (D)...................... 13
1 Perot Systems Corp. Class A (D)................... 11
-- ProQuest Co. (D).................................. 4
4 Radio One, Inc. Class D (D)....................... 29
-- RadiSys Corp. (D)................................. 4
-- Reader's Digest Association, Inc. ................ 6
-- Regis Corp. ...................................... 4
1 SafeNet, Inc. (D)................................. 13
3 Saga Communications, Inc. Class A (D)............. 21
-- Salem Communications Class A (D).................. 4
1 Scholastic Corp. (D).............................. 27
2 Spherion Corp. (D)................................ 18
-- Standard Parking Corp. (D)........................ 4
-- Standard Register Co. ............................ 3
4 Stewart Enterprises, Inc. ........................ 28
10 Syntel, Inc. ..................................... 245
1 Tetra Technologies, Inc. (D)...................... 24
1 Ulticom, Inc. .................................... 12
3 Unifirst Corp. ................................... 102
13 Unisys Corp. (D).................................. 84
1 Vail Resorts, Inc. (D)............................ 23
-- Veritas DGC, Inc. (D)............................. 27
-- Vertrue, Inc. (D)................................. 3
1 Viad Corp. ....................................... 30
-- Volt Information Sciences, Inc. (D)............... 5
-- Watson Wyatt Worldwide, Inc. ..................... 8
1 Wright Express Corp. (D).......................... 18
-------
2,802
-------
TECHNOLOGY -- 7.9%
-- A.O. Smith Corp. ................................. 5
1 AMETEK, Inc. ..................................... 65
1 AMIS Holdings, Inc. (D)........................... 14
1 Anaren Microwave, Inc. (D)........................ 12
2 Aspen Technology, Inc. (D)........................ 15
1 Avocent Corp. (D)................................. 22
1 Belden CDT, Inc. ................................. 30
4 Benchmark Electronics, Inc. (D)................... 94
</Table>
The accompanying notes are an integral part of these financial statements.
210
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
-- Bio-Rad Laboratories, Inc. Class A (D)............ $ 21
1 Borland Software Corp. (D)........................ 5
2 Brocade Communications Systems, Inc. (D).......... 17
-- Checkpoint Systems, Inc. (D)...................... 5
6 Cincinnati Bell, Inc. (D)......................... 28
-- Cirrus Logic, Inc. (D)............................ --
2 Coherent, Inc. (D)................................ 78
-- Commonwealth Telephone Enterprise, Inc. .......... 4
1 CSG Systems International, Inc. (D)............... 23
1 CT Communications, Inc. .......................... 24
1 CTS Corp. ........................................ 20
1 Cubic Corp. ...................................... 11
1 Digi International, Inc. ......................... 17
1 Eagle Test Systems, Inc. (D)...................... 14
-- Electro Scientific Industries, Inc. (D)........... 2
1 Electronics for Imaging, Inc. (D)................. 15
1 Emulex Corp. (D).................................. 15
-- EPIQ Systems, Inc. (D)............................ 1
1 Extreme Networks, Inc. (D)........................ 4
-- FairPoint Communications, Inc. ................... 2
-- General Cable Corp. (D)........................... 3
10 General Communication, Inc. Class A (D)........... 128
-- Genesis Microchip, Inc. (D)....................... 4
-- Golden Telecom, Inc. ............................. 1
-- GrafTech International Ltd. (D)................... 1
2 Harris Interactive, Inc. (D)...................... 12
2 Hyperion Solutions Corp. (D)...................... 86
-- IHS, Inc. (D)..................................... 10
1 Infospace, Inc. (D)............................... 13
-- Input/Output, Inc. (D)............................ 1
1 iPass, Inc. (D)................................... 3
2 Kopin Corp. (D)................................... 6
-- Lattice Semiconductor Corp. (D)................... 1
-- Littelfuse, Inc. (D).............................. 15
4 LoJack Corp. (D).................................. 78
2 Magma Design Automation, Inc. .................... 15
-- MasTec, Inc. (D).................................. 2
5 Msc.Software Corp. (D)............................ 73
-- Newport Corp. (D)................................. 9
1 Palm, Inc. (D).................................... 20
1 Pegasystems, Inc. (D)............................. 7
1 Pericom Semiconductor Corp. (D)................... 6
1 Polycom, Inc. (D)................................. 18
2 Quantum Corp. (D)................................. 4
-- Regal-Beloit Corp. ............................... 14
1 RF Micro Devices, Inc. (D)........................ 11
-- Rofin-Sinar Technologies, Inc. (D)................ 5
2 Roper Industries, Inc. ........................... 81
3 Schwak, Inc. ..................................... 62
2 Skyworks Solutions, Inc. (D)...................... 14
3 SonicWALL, Inc. (D)............................... 29
1 Spectrum Brands, Inc. ............................ 8
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
-- Standard Microsystems Corp. (D)................... $ 2
1 Sybase, Inc. (D).................................. 28
2 Sycamore Networks, Inc. (D)....................... 7
-- Syniverse Holdings, Inc. (D)...................... 1
-- Technitrol, Inc. ................................. 7
1 TriQuint Semiconductor, Inc. (D).................. 7
1 TTM Technologies, Inc. (D)........................ 10
1 USA Mobility, Inc. ............................... 24
1 Varian, Inc. (D).................................. 30
1 Zoran Corp. (D)................................... 8
-------
1,428
-------
TRANSPORTATION -- 4.4%
4 AMR Corp. (D)..................................... 99
-- Arkansas Best Corp. .............................. 6
1 ExpressJet Holdings, Inc. (D)..................... 5
1 Gulfmark Offshore, Inc. .......................... 17
1 Heartland Express, Inc. .......................... 13
1 Horizon Lines, Inc. Class A....................... 30
8 Landstar System, Inc. ............................ 374
-- Republic Airways Holdings, Inc. (D)............... 2
1 SIRVA, Inc. (D)................................... 3
-- SkyWest, Inc. .................................... 3
1 Thor Industries, Inc. ............................ 61
2 Tsakos Energy Navigation Ltd. .................... 75
3 USA Truck, Inc. (D)............................... 47
-- Werner Enterprises, Inc. ......................... 1
2 Winnebago Industries, Inc. ....................... 53
-------
789
-------
UTILITIES -- 2.0%
-- Avista Corp. ..................................... 2
-- Black Hills Corp. ................................ 7
1 Cleco Corp. ...................................... 21
1 Duquesne Light Holdings, Inc. .................... 14
16 Dynegy, Inc. (D).................................. 96
-- El Paso Electric Co. (D).......................... 6
-- Empire District Electric Co. ..................... 3
1 IDACORP, Inc. .................................... 23
3 ITC Holdings Corp. ............................... 94
-- Pike Electric Corp. (D)........................... 8
1 PNM Resources, Inc. .............................. 39
-- SJW Corp. ........................................ 3
2 Westar Energy, Inc. .............................. 40
-------
356
-------
Total common stock
(cost $15,474).................................. $16,785
-------
SHORT-TERM INVESTMENTS -- 6.3%
CONSUMER STAPLES -- 1.6%
290 Cargill Global Commercial Paper,
5.26%, 11/01/2006............................... $ 290
-------
</Table>
The accompanying notes are an integral part of these financial statements.
211
THE HARTFORD SELECT SMALLCAP VALUE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- (CONTINUED)
FINANCE -- 4.7%
225 Federated Investors Prime Obligations Fund........ $ 225
329 State Street Bank Money Market Fund............... 329
290 UBS Americas Commercial Paper,
5.28%, 11/01/2006............................... 290
-------
844
-------
Total short-term investments
(cost $1,134)................................... $ 1,134
-------
Total investments in securities
(cost $16,608) (C).............................. $17,919
=======
</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 0.70% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $16,608 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $1,517
Unrealized depreciation.......................... (206)
------
Net unrealized appreciation...................... $1,311
======
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
----------- --------- -------- ------------- --------------
Russell Mini Futures 2 Long December 2006 $5
==
</Table>
These contracts had a market value of $154 as of October 31, 2006.
Cash was pledged as initial margin deposit for open futures
contracts at October 31, 2006.
The accompanying notes are an integral part of these financial statements.
212
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 54.4%
FINANCE -- 54.4%
$ 522 ACE Securities Corp.,
3.28%, 08/15/2030 (I)........................... $ 517
395 American Express Credit Account Master Trust,
5.82%, 02/15/2012 (I)(L)........................ 395
702 AmeriCredit Automobile Receivables Trust,
2.87%, 02/07/2011............................... 692
725 AmeriCredit Automobile Receivables Trust,
4.22%, 07/06/2009............................... 717
600 AmeriCredit Automobile Receivables Trust,
5.04%, 05/06/2011............................... 594
1,400 AmeriCredit Automobile Receivables Trust,
5.07%, 07/06/2010............................... 1,391
1,294 Banc of America Commercial Mortgage, Inc.,
3.46%, 07/10/2042............................... 1,273
31,741 Banc of America Commercial Mortgage, Inc.,
4.08%, 12/10/2042 (P)........................... 599
1,500 Banc of America Securities Auto Trust,
4.49%, 02/18/2013............................... 1,478
2,000 Bank of America Credit Card Trust,
5.55%, 03/15/2012 (L)........................... 2,000
2,000 Bank One Issuance Trust,
3.59%, 05/17/2010............................... 1,971
347 Bank One Issuance Trust,
4.54%, 09/15/2010............................... 344
763 Bayview Commercial Asset Trust,
6.32%, 01/25/2035 (I)(L)........................ 766
896 Bear Stearns Asset Backed Securities, Inc.,
5.16%, 09/25/2033............................... 887
24,872 Bear Stearns Commercial Mortgage Securities, Inc.,
4.12%, 11/11/2041 (P)........................... 671
61,801 Bear Stearns Commercial Mortgage Securities, Inc.,
4.65%, 02/11/2041 (P)........................... 710
108,601 Bear Stearns Commercial Mortgage Securities, Inc.,
6.25%, 12/11/2040 (I)(P)........................ 505
1,000 BMW Vehicle Owner Trust,
3.52%, 10/25/2010............................... 985
799 Capital Auto Receivables Asset Trust,
4.73%, 09/15/2010............................... 786
800 Capital Auto Receivables Asset Trust,
5.55%, 01/18/2011............................... 801
200 Capital Auto Receivables Asset Trust,
5.77%, 05/20/2010 (I)........................... 201
225 Capital Auto Receivables Asset Trust,
6.15%, 04/20/2011 (I)........................... 226
400 Capital One Master Trust,
7.90%, 10/15/2010 (I)........................... 407
1,000 Capital One Multi-Asset Execution Trust,
4.50%, 06/15/2011............................... 989
10,828 CBA Small Balance Commercial Mortgage,
7.00%, 07/25/2035 (I)(P)........................ 531
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 8,064 CBA Small Balance Commercial Mortgage,
7.00%, 06/25/2038 (I)(P)........................ $ 530
443 Chase Manhattan Auto Owner Trust,
2.78%, 06/15/2010............................... 436
1,097 Chase Manhattan Auto Owner Trust,
2.94%, 06/15/2010............................... 1,080
2,000 Citibank Credit Card Issuance Trust,
4.45%, 04/07/2010............................... 1,975
2,000 Citibank Credit Card Issuance Trust,
4.85%, 02/10/2011............................... 1,993
500 Citibank Credit Card Issuance Trust,
6.47%, 02/09/2009 (L)........................... 501
4,000 Citibank Credit Card Issuance Trust,
6.88%, 11/16/2009............................... 4,066
18,625 Citigroup Commercial Mortgage Trust,
4.10%, 10/15/2041 (I)(P)........................ 662
478 CNH Equipment Trust,
2.57%, 09/15/2009............................... 470
140 CNH Equipment Trust,
3.13%, 11/15/2010............................... 138
300 CNH Equipment Trust,
3.35%, 02/15/2011............................... 294
750 CNH Equipment Trust,
4.93%, 12/17/2012............................... 744
3,447 Commercial Mortgage Pass-Through Certificate,
3.59%, 03/10/2039 (I)(P)........................ 98
1,500 Commercial Mortgage Pass-Through Certificate,
5.77%, 12/15/2020 (L)........................... 1,500
22,543 CS First Boston Mortgage Securities Corp.,
4.15%, 11/15/2037 (I)(P)........................ 657
13,458 CS First Boston Mortgage Securities Corp.,
4.17%, 07/15/2036 (I)(P)........................ 298
800 Daimler Chrysler Auto Trust,
5.14%, 09/08/2012............................... 801
96 DLJ Mortgage Acceptance Corp.,
6.82%, 10/15/2030 (I)........................... 96
300 Equity One ABS, Inc.,
7.82%, 07/25/2034 (L)........................... 303
1,625 Ford Credit Auto Owner Trust,
4.19%, 07/15/2009............................... 1,608
750 Ford Credit Auto Owner Trust,
5.29%, 04/15/2011............................... 752
750 Ford Credit Auto Owner Trust,
5.48%, 09/15/2011............................... 753
500 Ford Credit Auto Owner Trust,
5.68%, 06/15/2012............................... 504
9,085 GE Capital Commercial Mortgage Corp.,
3.76%, 03/10/2040 (I)(P)........................ 185
228 GE Commercial Equipment Financing LLC,
3.65%, 05/22/2014 (I)........................... 223
567 GMAC Commercial Mortgage Securities, Inc.,
3.12%, 03/10/2038............................... 552
1,493 GMAC Mortgage Corp. Loan Trust,
4.09%, 04/25/2033............................... 1,472
494 Goldman Sachs Auto Loan Trust,
4.98%, 11/15/2013............................... 491
</Table>
The accompanying notes are an integral part of these financial statements.
213
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 20,949 Goldman Sachs Mortgage Securities Corp. II,
4.38%, 08/10/2038 (I)(P)........................ $ 227
500 Granite Mortgages plc,
6.95%, 01/20/2043 (L)........................... 509
24 Green Tree Financial Corp.,
6.27%, 06/01/2030............................... 24
17 Green Tree Financial Corp.,
7.30%, 01/15/2026............................... 17
632 Harley Davidson Motorcycle Trust,
4.50%, 01/15/2010............................... 632
1,583 Hasco NIM Trust,
6.17%, 08/25/2036 (I)........................... 1,583
259 Hasco NIM Trust,
6.25%, 12/26/2035 (I)........................... 258
1,000 Hertz Vehicle Financing LLC,
4.93%, 02/25/2010 (I)........................... 996
488 Home Equity Asset Trust,
4.75%, 06/27/2035 (I)........................... 483
750 Hyundai Auto Receivables Trust,
4.10%, 08/15/2011............................... 738
1,500 Hyundai Auto Receivables Trust,
4.45%, 02/15/2012............................... 1,468
165 JP Morgan Chase Commercial Mortgage Securities
Corp.,
2.92%, 01/12/2038............................... 162
5,784 JP Morgan Chase Commercial Mortgage Securities
Corp.,
3.68%, 01/15/2038 (I)(P)........................ 179
37,124 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.07%, 01/15/2042 (P)........................... 547
14,595 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.65%, 10/15/2037 (I)(P)........................ 306
39,323 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.82%, 08/12/2037 (P)........................... 162
1,500 JP Morgan Chase Commercial Mortgage Securities
Corp.,
6.07%, 02/15/2020 (I)........................... 1,500
36 LB-UBS Commercial Mortgage Trust,
3.17%, 12/15/2026............................... 35
1,335 LB-UBS Commercial Mortgage Trust,
3.63%, 10/15/2029............................... 1,305
2,358 LB-UBS Commercial Mortgage Trust,
4.25%, 12/15/2036 (I)(P)........................ 72
2,178 Lehman Brothers,
6.77%, 09/28/2036 (I)........................... 2,176
413 Long Beach Asset Holdings Corp.,
5.78%, 04/25/2046 (I)........................... 413
750 Marlin Leasing Receivables LLC,
4.63%, 11/17/2008 (I)........................... 744
407 Marlin Leasing Receivables LLC,
5.09%, 08/15/2012 (I)........................... 403
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
$ 600 Marlin Leasing Receivables LLC,
5.33%, 09/16/2013............................... $ 602
600 Marlin Leasing Receivables LLC,
5.63%, 09/16/2013............................... 601
1,000 MBNA Credit Card Master Note Trust,
4.95%, 06/15/2009............................... 999
600 Memory Lane Advance Receivables Backed Notes,
5.03%, 10/24/2014 (I)........................... 596
860 Merrill Lynch Mortgage Trust,
3.46%, 08/12/2039............................... 841
19,113 Merrill Lynch Mortgage Trust,
3.81%, 08/12/2039 (I)(P)........................ 587
20,065 Merrill Lynch Mortgage Trust,
3.96%, 09/12/2041 (I)(P)........................ 632
29,087 Merrill Lynch Mortgage Trust,
4.67%, 09/12/2042 (P)........................... 346
164 Morgan Stanley Capital I,
2.80%, 12/15/2041............................... 161
351 Morgan Stanley Capital I,
3.96%, 06/15/2040............................... 344
1,303 Morgan Stanley Capital I,
4.03%, 06/15/2038............................... 1,277
257 Morgan Stanley Dean Witter Capital I,
5.38%, 01/15/2039............................... 258
391 Navistar Financial Corp. Owner Trust,
3.08%, 11/15/2009............................... 388
540 Providian Gateway Master Trust,
3.35%, 09/15/2011 (I)........................... 530
750 Providian Gateway Master Trust,
3.95%, 09/15/2011 (I)........................... 739
1,000 Providian Gateway Master Trust,
4.05%, 11/15/2011 (I)........................... 985
48 Soundview Home Equity Loan Trust,
8.64%, 05/25/2030............................... 48
1,500 Structured Asset Investment Loan Trust,
7.07%, 11/25/2033 (L)........................... 1,511
500 Superior Wholesale Inventory Financing Trust,
5.80%, 06/15/2010 (L)........................... 498
1,000 USAA Auto Owner Trust,
5.66%, 03/15/2013............................... 1,013
1,700 Wachovia Auto Loan Owner Trust,
5.42%, 04/21/2014 (I)........................... 1,703
1,000 Wachovia Auto Loan Owner Trust,
5.54%, 12/20/2012 (I)........................... 1,006
332 Wachovia Bank Commercial Mortgage Trust,
3.48%, 08/15/2041............................... 324
6,151 Wachovia Bank Commercial Mortgage Trust,
3.65%, 02/15/2041 (I)(P)........................ 182
9 Wachovia Bank Commercial Mortgage Trust,
4.54%, 04/15/2034............................... 9
2,832 Wells Fargo Home Equity Trust,
5.62%, 04/25/2034 (L)........................... 2,832
198 WFS Financial Owner Trust,
2.48%, 12/20/2010............................... 196
</Table>
The accompanying notes are an integral part of these financial statements.
214
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 145 WFS Financial Owner Trust,
2.73%, 05/20/2011............................... $ 143
54 WFS Financial Owner Trust,
3.05%, 12/20/2010............................... 54
787 WFS Financial Owner Trust,
3.25%, 05/20/2011............................... 778
519 WFS Financial Owner Trust,
3.87%, 05/20/2011............................... 516
1,000 WFS Financial Owner Trust,
4.76%, 05/17/2013............................... 988
130 Whole Auto Loan Trust,
2.24%, 03/15/2010............................... 130
220 Whole Auto Loan Trust,
3.13%, 03/15/2011............................... 217
441 Whole Auto Loan Trust,
3.37%, 03/15/2011............................... 436
400 World Financial Network Credit Card Master Trust,
8.27%, 08/15/2011 (L)........................... 409
218 World Omni Auto Receivables Trust,
3.62%, 07/12/2011............................... 214
--------
Total asset & commercial mortgage backed
securities
(cost $82,226).................................. $ 81,650
--------
CORPORATE BONDS: INVESTMENT GRADE -- 33.7%
BASIC MATERIALS -- 1.1%
$ 125 ICI North America,
8.88%, 11/15/2006............................... $ 125
200 International Paper Co.,
3.80%, 04/01/2008............................... 195
100 Pactiv Corp.,
8.00%, 04/15/2007............................... 101
380 Placer Dome, Inc.,
7.13%, 06/15/2007............................... 383
370 Potash Corp. of Saskatchewan, Inc.,
7.13%, 06/15/2007............................... 374
500 Valspar Corp.,
6.00%, 05/01/2007............................... 501
--------
1,679
--------
CAPITAL GOODS -- 0.7%
750 McDonnell Douglas Corp.,
6.88%, 11/01/2006............................... 750
300 Textron, Inc.,
6.63%, 11/15/2007............................... 304
--------
1,054
--------
CONSUMER CYCLICAL -- 1.6%
500 Centex Corp.,
4.75%, 01/15/2008............................... 495
500 Centex Corp.,
5.74%, 08/01/2007 (L)........................... 500
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CONSUMER CYCLICAL -- (CONTINUED)
$ 700 Darden Restaurants, Inc.,
5.75%, 03/15/2007............................... $ 699
750 Kroger Co.,
7.65%, 04/15/2007............................... 757
--------
2,451
--------
CONSUMER STAPLES -- 1.0%
1,500 General Mills, Inc.,
5.13%, 02/15/2007............................... 1,499
--------
ENERGY -- 2.6%
1,000 Anadarko Petroleum Corp.,
5.79%, 09/15/2009 (L)........................... 1,002
600 Consolidated Natural Gas Co.,
5.38%, 11/01/2006............................... 600
350 Louis Dreyfus Natural Gas Corp.,
6.88%, 12/01/2007............................... 355
1,000 Sempra Energy,
4.62%, 05/17/2007............................... 996
1,000 Transocean, Inc.,
5.60%, 09/05/2008 (L)........................... 1,000
--------
3,953
--------
FINANCE -- 15.5%
1,000 AMVESCAP plc,
5.90%, 01/15/2007............................... 1,001
400 Avalon Properties, Inc.,
6.88%, 12/15/2007............................... 405
600 Banca Commerciale Italiana,
8.25%, 07/15/2007............................... 612
150 Banesto Finance Ltd.,
7.50%, 03/25/2007............................... 151
1,500 BankBoston NA,
7.00%, 09/15/2007............................... 1,515
2,000 Bear Stearns & Co., Inc.,
4.00%, 01/31/2008............................... 1,971
1,000 Capital One Financial Corp.,
5.67%, 09/10/2009 (L)........................... 1,003
500 Capital One Financial Corp.,
8.75%, 02/01/2007............................... 504
50 Cigna Corp.,
8.25%, 01/01/2007............................... 50
220 Credit Suisse First Boston NY,
6.50%, 05/01/2008 (I)........................... 224
2,000 Duke Realty L.P.,
3.50%, 11/01/2007............................... 1,959
500 ERAC USA Finance Co.,
5.63%, 04/30/2009 (I)(L)........................ 501
1,000 ERAC USA Finance Co.,
7.35%, 06/15/2008 (I)........................... 1,030
200 Evans Withycombe Residential, Inc.
7.63%, 04/15/2007............................... 201
1,500 Great America Leasing Receivables,
5.43%, 09/15/2008............................... 1,500
650 HSBC Finance Corp.,
5.75%, 01/30/2007............................... 651
</Table>
The accompanying notes are an integral part of these financial statements.
215
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 450 HSBC Finance Corp.,
7.65%, 05/15/2007............................... $ 455
1,500 John Deere Capital Corp.,
4.50%, 08/22/2007............................... 1,489
450 JP Morgan Chase & Co.,
7.25%, 06/01/2007............................... 454
250 Key Bank NA,
5.00%, 07/17/2007............................... 249
2,000 Lehman Brothers Holdings, Inc.,
4.00%, 01/22/2008............................... 1,972
120 Lincoln National Corp.,
5.25%, 06/15/2007............................... 120
148 MBNA America Bank NA,
6.75%, 03/15/2008............................... 151
150 Merrill Lynch & Co., Inc.,
8.00%, 06/01/2007............................... 152
500 North Street Referenced Linked Notes,
6.19%, 07/30/2010 (I)(L)........................ 465
650 Simon Property Group L.P.,
6.38%, 11/15/2007............................... 656
350 Simon Property Group L.P.,
7.13%, 09/20/2007............................... 354
1,000 Sovereign Bank,
4.00%, 02/01/2008............................... 983
1,000 St. Paul Travelers Cos., Inc.,
5.75%, 03/15/2007............................... 1,002
400 Travelers Property Casualty,
3.75%, 03/15/2008............................... 391
1,000 Zions Bancorporation,
5.49%, 09/15/2008 (L)........................... 1,000
--------
23,171
--------
HEALTH CARE -- 1.4%
2,000 Cardinal Health, Inc,
5.64%, 10/02/2009 (I)(L)........................ 2,000
--------
SERVICES -- 3.9%
550 Belo Corp.,
7.13%, 06/01/2007............................... 553
700 Comcast Corp.,
5.67%, 07/14/2009 (L)........................... 701
1,000 FedEx Corp.,
2.65%, 04/01/2007............................... 989
450 Harrah's Operating Co., Inc.,
7.13%, 06/01/2007............................... 452
850 Hyatt Equities LLC,
6.88%, 06/15/2007 (I)........................... 855
1,000 Marriott International, Inc.,
7.00%, 01/15/2008............................... 1,015
300 News America, Inc.,
6.63%, 01/09/2008............................... 304
1,000 Walt Disney Co.,
4.49%, 09/10/2009 (L)........................... 1,001
--------
5,870
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
TECHNOLOGY -- 4.1%
$ 450 Cingular Wireless LLC,
5.63%, 12/15/2006............................... $ 450
500 Cingular Wireless Services, Inc.,
7.50%, 05/01/2007............................... 505
1,000 Deutsche Telekom International Finance B.V.,
5.57%, 03/23/2009 (L)........................... 1,000
825 Hewlett-Packard Co.,
5.75%, 12/15/2006............................... 825
1,000 Lenfest Communications, Inc.,
7.63%, 02/15/2008............................... 1,027
1,000 Oracle Corp.,
5.60%, 01/13/2009 (L)........................... 1,001
707 Raytheon Co.,
6.75%, 08/15/2007............................... 714
600 Verizon Wireless Capital LLC,
5.38%, 12/15/2006............................... 600
--------
6,122
--------
TRANSPORTATION -- 0.5%
350 TTX Co.,
3.88%, 03/01/2008 (I)........................... 341
440 Union Pacific Corp.,
6.70%, 12/01/2006............................... 440
--------
781
--------
UTILITIES -- 1.3%
900 Dominion Resources, Inc.,
5.66%, 09/28/2007 (L)........................... 900
250 Northeast Utilities,
3.30%, 06/01/2008............................... 242
250 Puget Sound Energy, Inc.,
3.36%, 06/01/2008............................... 242
300 Southwestern Public Service Co.,
5.13%, 11/01/2006............................... 300
270 Texas Eastern Transmission L.P.,
5.25%, 07/15/2007............................... 269
--------
1,953
--------
Total corporate bonds: investment grade
(cost $50,691).................................. $ 50,533
--------
U.S. GOVERNMENT AGENCIES -- 5.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 5.1%
$ 7,500 6.00% 2032........................................ $ 7,642
--------
Total U.S. government agencies
(cost $7,572)................................... $ 7,642
--------
Total long-term investments
(cost $140,489)................................. $139,825
--------
SHORT-TERM INVESTMENTS -- 5.9%
CONSUMER CYCLICAL -- 1.3%
$ 2,000 Safeway Inc.,
5.37%, 11/02/2006............................... $ 1,999
--------
CONSUMER STAPLES -- 1.3%
2,000 Cadbury Schweppes Finance plc,
5.35%, 11/06/2006............................... 1,998
--------
</Table>
The accompanying notes are an integral part of these financial statements.
216
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- (CONTINUED)
OEv ENERGY -- 1.7%
$ 2,449 Devon Energy Corp.,
5.37%, 11/01/2006............................... $ 2,449
--------
FINANCE -- 0.3%
500 Bank of New York,
5.05%, 03/03/2009............................... 497
--------
TECHNOLOGY -- 1.3%
2,000 Viacom,
5.55%, 11/02/2006............................... 1,999
--------
Total short-term investments
(cost $8,942)................................... $ 8,942
--------
Total investments in securities
(cost $149,431) (C)............................. $148,767
========
</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 2.18% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $149,431 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................... $ 288
Unrealized depreciation........................... (952)
-----
Net unrealized depreciation....................... $(664)
=====
</Table>
(I) 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 qualified institutional
buyers. 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, 2006, was $28,013, which represents 18.67% of
total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(P) The interest rates disclosed for interest only strips represent
effective yields based upon estimated future cash flows at October 31,
2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
217
THE HARTFORD SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 95.3%
BASIC MATERIALS -- 5.9%
88 Agrium, Inc. ..................................... $ 2,457
23 Airgas, Inc. ..................................... 873
121 Arch Coal, Inc. .................................. 4,185
25 Aventine Renewable Energy Holdings, Inc. (D)...... 625
112 Brush Engineered Materials, Inc. (G).............. 3,757
77 Century Aluminum Co. (D)(G)....................... 2,991
138 Jarden Corp. (D)(G)............................... 4,969
935 Kingboard Chemical Holdings Ltd. (A)(G)........... 3,317
35 Kinross Gold Corp. (D)............................ 466
86 Urasia Energy Ltd. (D)(H)......................... 235
--------
23,875
--------
CAPITAL GOODS -- 3.7%
45 Alliant Techsystems, Inc. (D)(G).................. 3,505
66 Bucyrus International, Inc. ...................... 2,769
29 Daktronics, Inc. ................................. 683
161 Goodman Global, Inc. (D)(G)....................... 2,593
83 Marvel Entertainment, Inc. (D)(G)................. 2,114
12 Oil States International, Inc. ................... 348
9 Scientific Games Corp. Class A (D)................ 252
104 TransDigm Group, Inc. (D)......................... 2,489
--------
14,753
--------
CONSUMER CYCLICAL -- 6.9%
20 Advance Auto Parts, Inc. ......................... 697
30 Be Aerospace, Inc. (D)............................ 753
14 Buffalo Wild Wings, Inc. (D)...................... 734
42 Children's Place Retail Stores, Inc. (D).......... 2,934
34 Conceptus, Inc. (D)............................... 682
37 Dick's Sporting Goods, Inc. (D)(G)................ 1,840
36 DSW, Inc. (D)(G).................................. 1,244
23 Dufry Group (D)(A)................................ 1,829
6 G-III Apparel Group, Ltd. (D)..................... 97
11 Gildan Activewear, Inc. (D)....................... 572
33 GSI Commerce, Inc. (D)............................ 595
254 LKQ Corp. (D)(G).................................. 5,887
5 Newell Rubbermaid, Inc. .......................... 138
30 Quanta Services, Inc. (D)......................... 542
53 Skechers U.S.A., Inc. Class A (D)(G).............. 1,575
1 Susser Holdings Corp. ............................ 13
20 The Andersons, Inc. .............................. 701
74 Tween Brands, Inc. (G)............................ 3,101
30 Urban Outfitters, Inc. (D)........................ 532
108 VistaPrint Ltd. (D)(G)............................ 3,371
--------
27,837
--------
CONSUMER STAPLES -- 1.6%
54 Alberto-Culver Co. ............................... 2,754
21 Bare Escentuals, Inc. (G)......................... 637
37 Hansen National Corp. (G)......................... 1,171
107 Jones Soda Co. (D)(G)............................. 1,052
91 Jones Soda Co. PIPE (D)(I)........................ 898
--------
6,512
--------
ENERGY -- 4.6%
23 Basic Energy Services, Inc. (D)................... 560
75 Cabot Oil & Gas Corp. ............................ 3,944
44 CanWest Petroleum Corp. (D)....................... 202
213 Complete Production Services, Inc. (D)(G)......... 4,106
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
ENERGY -- (CONTINUED)
132 Denbury Resources, Inc. (D)....................... $ 3,780
18 ENSCO International, Inc. ........................ 877
14 GMX Resources Inc................................. 566
18 Goodrich Petroleum Corp. ......................... 619
118 OPTI Canada, Inc. (D)............................. 1,883
84 Western Oil Sands, Inc. Class A (D)............... 2,177
--------
18,714
--------
FINANCE -- 10.2%
1,063 Aberdeen Asset Management plc (A)................. 3,570
201 Admiral Group plc (A)............................. 3,552
26 Affiliated Managers Group, Inc. (G)(D)............ 2,620
112 Allied World Assurance Holdings Ltd. (D).......... 4,681
6 BOK Financial Corp. .............................. 319
18 CB Richard Ellis Group, Inc. Class A (D).......... 544
71 Covanta Holding Corp. (D)......................... 1,445
70 Dade Behring Holdings, Inc. ...................... 2,563
14 Delphi Financial Group Class A.................... 565
18 First Republic Bank............................... 689
35 Friedman Billings Ramsey Group, Inc. ............. 269
12 Investment Technology Group, Inc. (D)............. 579
20 Jefferies Group, Inc. ............................ 572
70 Nuveen Investments, Inc. Class A.................. 3,474
94 ProAssurance Corp. (D)(G)......................... 4,595
10 Reckson Associates Realty Corp. .................. 459
62 Services Acquisition Corp. International (D)...... 650
55 Signature Bank (D)(G)............................. 1,669
30 Sterling Bancshares, Inc. ........................ 542
27 Tower Group, Inc. ................................ 962
128 U-Store-It........................................ 2,815
123 Waddell and Reed Financial, Inc. Class A.......... 3,147
14 Wellcare Health Plans, Inc. (D)................... 846
--------
41,127
--------
HEALTH CARE -- 11.8%
14 Abaxis, Inc. (D).................................. 289
7 Adams Respiratory Therapeutics, Inc. (D).......... 280
135 Alkermes, Inc. (D)(G)............................. 2,261
42 Amylin Pharmaceuticals, Inc. (D)(G)............... 1,857
95 Arena Pharmaceuticals, Inc. (D)(G)................ 1,450
127 AtheroGenics, Inc. (D)(G)......................... 1,654
79 Digene Corp. (D)(G)............................... 3,660
28 DJO, Inc. (D)..................................... 1,106
146 Exelixis, Inc. (D)(G)............................. 1,418
50 Genomic Health, Inc. (D).......................... 820
456 Hengan International Group Co. Ltd. (A)........... 1,097
108 Herbalife Ltd. (D)................................ 3,953
200 Human Genome Sciences, Inc. (D)(G)................ 2,663
43 Inverness Medical Innovation...................... 1,621
72 Kyphon, Inc. (D)(G)............................... 2,846
101 LifePoint Hospitals, Inc. (D)(G).................. 3,601
88 Medicines Co. (D)(G).............................. 2,288
48 Medicis Pharmaceutical Corp. Class A.............. 1,673
39 Santarus, Inc. (D)................................ 303
18 Schwarz Pharma AG (A)(G).......................... 2,058
36 Sunrise Senior Living, Inc. (D)................... 1,108
169 Symbion, Inc. (D)................................. 2,801
61 Universal Health Services, Inc. Class B........... 3,230
17 Ventana Medical Systems, Inc. (D)................. 687
</Table>
The accompanying notes are an integral part of these financial statements.
218
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
52 Vertex Pharmaceuticals, Inc. (D)(G)............... $ 2,131
44 Warner Chilcott Ltd. ............................. 574
--------
47,429
--------
SERVICES -- 16.2%
46 Allscripts Healthcare Solutions, Inc. (D)......... 1,085
11 Anixter International, Inc. (D)................... 645
26 Atheros Communications, Inc. (D).................. 574
44 Central European Media Enterprises Ltd. (D)(G).... 3,275
17 Corrections Corp. of America (D).................. 779
115 DreamWorks Animation SKG, Inc. (D)(G)............. 3,049
70 Factset Research Systems, Inc. ................... 3,587
90 Focus Media Holding Ltd. ADR (D)(G)............... 4,754
68 GameTech International, Inc. (D).................. 674
1 Geo Group, Inc. (D)............................... 30
26 inVentiv Health Inc. (D).......................... 752
82 Iron Mountain, Inc. (D)(G)........................ 3,555
71 Jackson Hewitt Tax Service, Inc. ................. 2,467
51 Lamar Advertising Co. (D)(G)...................... 2,955
17 Life Time Fitness, Inc. (D)....................... 861
116 Live Nation, Inc. (D)(G).......................... 2,467
122 Mentor Graphics Corp. (D)(G)...................... 2,055
201 MoneyGram International, Inc. .................... 6,859
-- National Technical Systems, Inc................... 1
26 Orient Express Hotels, Ltd. Class A............... 1,041
220 Pinnacle Entertainment, Inc. (D).................. 6,644
77 Priceline.com, Inc. .............................. 3,112
53 Stericycle, Inc. (D)(G)........................... 3,772
91 TeleTech Holdings, Inc. (D)....................... 1,768
72 URS Corp. (D)..................................... 2,915
58 Washington Group International, Inc. ............. 3,268
58 WNS Holdings Ltd. ADR (D)......................... 1,717
49 World Wrestling Entertainment, Inc. .............. 823
--------
65,484
--------
TECHNOLOGY -- 27.3%
47 24/7 Real Media, Inc. (D)......................... 469
147 American Reprographics Co. (D)(G)................. 5,217
93 American Tower Corp. Class A (D).................. 3,356
13 Amphenol Corp. Class A............................ 903
117 Ansys, Inc. (D)(G)................................ 5,396
126 Art Technology Group, Inc. (D).................... 316
54 Aspen Technology, Inc. (D)........................ 539
8 Baidu.com ADR (G)................................. 686
7 Barco N.V. (A).................................... 566
22 Belden CDT, Inc. ................................. 804
99 Brocade Communications Systems, Inc. (D).......... 805
77 Cirrus Logic, Inc. (D)............................ 542
10 CoStar Group, Inc. ............................... 459
46 Ctrip.Com International Ltd. ..................... 2,256
7 Diodes, Inc. (D).................................. 304
55 EMCORE Corp. (D).................................. 315
40 Energy Conversion Devices, Inc. (D)(G)............ 1,454
78 Equinix, Inc. (D)(G).............................. 5,338
8 FormFactor, Inc. (D).............................. 290
161 Fossil, Inc. (D)(G)............................... 3,515
62 Golden Telecom, Inc. ............................. 2,282
102 Hologic, Inc. (D)(G).............................. 4,903
98 IHS, Inc. (D)..................................... 3,397
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
116 Integrated Device Technology, Inc. (D)............ $ 1,831
49 International Rectifier Corp. (D)(G).............. 1,757
85 Kenexa Corp. (D)(G)............................... 2,740
68 Leap Wireless International, Inc. (D)............. 3,755
15 MEMC Electronic Materials, Inc. (D)............... 522
32 Microsemi Corp. (D)............................... 633
49 Ness Technologies, Inc. .......................... 721
135 Neustar, Inc. (D)(G).............................. 3,934
94 Nuance Communications, Inc. (D)................... 1,082
231 O2Micro International Ltd. ADR (D)(G)............. 1,490
190 Opsware, Inc. (D)(G).............................. 1,729
30 Power Integrations, Inc. (D)...................... 663
127 QLogic Corp. (D).................................. 2,618
27 Rackable Systems, Inc. (D)........................ 843
174 Red Hat, Inc. (D)(G).............................. 2,850
180 Redback Networks, Inc. (D)(G)..................... 2,845
146 S.O.I. Tec, S.A. (D)(A)........................... 4,308
68 Sirona Dental Systems, Inc. ...................... 2,527
30 Smith Micro Software, Inc. (D).................... 502
38 Stereotaxis, Inc. (D)............................. 458
59 Syniverse Holdings, Inc. (D)(G)................... 874
83 Teledyne Technologies, Inc. (D)(G)................ 3,447
1,199 Tencent Holdings Ltd. (A)(G)...................... 2,860
101 THQ, Inc. (D)(G).................................. 3,032
89 Transaction Systems Architects, Inc. (D).......... 3,017
6 Trident Microsystems, Inc. (D).................... 131
222 Trizetto Group, Inc. (D)(G)....................... 3,787
90 VA Software Corp. (D)............................. 363
242 VeriFone Holdings, Inc. (D)(G).................... 7,076
107 Verint Systems, Inc. (D).......................... 3,501
22 WebSideStory, Inc. (D)............................ 281
--------
110,289
--------
TRANSPORTATION -- 6.0%
81 American Commercial Lines, Inc. (D)(G)............ 5,184
4 American Rail Car Industries, Inc. ............... 117
118 Copa Holdings S.A. Class A........................ 4,454
74 Florida East Coast Industries, Inc. .............. 4,401
13 Genesee & Wyoming, Inc. Class A (D)............... 354
101 GOL Linhas Aereas Inteligentes S.A. ADR........... 3,148
26 Kansas City Southern (D).......................... 747
106 Landstar System, Inc. ............................ 4,924
23 Wabtec Corp. ..................................... 735
--------
24,064
--------
UTILITIES -- 1.1%
37 NRG Energy, Inc. (D)(G)........................... 1,785
91 PNM Resources, Inc. .............................. 2,570
--------
4,355
--------
Total common stock
(cost $348,671)................................. $384,439
--------
INVESTMENT COMPANIES -- 0.9%
45 iShares Russell 2000 Growth Index Fund
(cost $3,257)................................... $ 3,495
--------
Total investment companies........................ $ 3,495
--------
Total long-term investments
(cost $351,928)................................. $387,934
--------
</Table>
The accompanying notes are an integral part of these financial statements.
219
THE HARTFORD SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- 24.2%
REPURCHASE AGREEMENTS -- 2.6%
$ 926 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 926
1,931 BNP Paribas Repurchase Agreement,
5.24%, 11/01/2006............................... 1,931
545 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 545
22 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 22
436 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 436
915 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 915
501 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 501
1,980 RBS Greenwich Repurchase Agreement,
5.24%, 11/01/2006............................... 1,980
1,231 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 1,231
1,931 UBS Securities Repurchase Agreement,
5.24%, 11/01/2006............................... 1,931
--------
10,418
--------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 21.6%
87,081 Navigator Prime Portfolio......................... $ 87,081
--------
Total short-term investments
(cost $97,499).................................. $ 97,499
--------
Total investments in securities
(cost $449,427) (C)............................. $485,433
========
</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 9.24% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $23,157, which represents 5.74% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $451,173 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................ $41,863
Unrealized depreciation............................ (7,603)
-------
Net unrealized appreciation........................ $34,260
=======
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(H) The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks a
readily available market or if its valuation has not changed for a certain
period of time.
<Table>
<Caption>
PERIOD COST
ACQUIRED SHARES SECURITY BASIS
-------- ------ -------- -----
June-July 2006 86 Urasia Energy Ltd $209
</Table>
The aggregate value of these securities at October 31, 2006 was
$235, which represents 0.06% of total net assets.
(I) 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 qualified institutional
buyers. 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, 2006, was $898, which represents 0.22% of total
net assets.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
British Pound Buy $ 18 $ 18 11/02/2006 $--
British Pound Buy 449 449 11/03/2006 --
Euro Sell 82 82 11/02/2006 --
Euro Sell 181 181 11/02/2006 --
Euro Sell 508 506 11/01/2006 (2)
Euro Sell 118 118 11/03/2006 --
---
$(2)
===
</Table>
The accompanying notes are an integral part of these financial statements.
220
THE HARTFORD SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 96.0%
BASIC MATERIALS -- 7.4%
36 Carpenter Technology Corp. ....................... $ 3,820
34 Century Aluminum Co. (D).......................... 1,327
64 Chaparral Steel Co. (D)........................... 2,678
147 Cleveland-Cliffs, Inc. (G)........................ 6,208
76 Eagle Materials, Inc. ............................ 2,789
85 Insteel Industries, Inc. ......................... 1,525
56 Mueller Industries, Inc. ......................... 2,050
102 PW Eagle, Inc. (G)................................ 3,625
281 Select Comfort Corp. (D)(G)....................... 6,009
75 Sun Hydraulics Corp. ............................. 1,617
128 Tempur-Pedic International, Inc. (D)(G)........... 2,525
81 Timken Co. ....................................... 2,434
72 UAP Holding Corp. ................................ 1,810
52 VeraSun Energy Corp. (D)(G)....................... 954
--------
39,371
--------
CAPITAL GOODS -- 4.7%
28 Armor Holdings, Inc. (D).......................... 1,441
29 Briggs & Stratton Corp. .......................... 732
28 Cascade Corp. .................................... 1,413
99 Graco, Inc. ...................................... 4,035
48 Lennox International, Inc. ....................... 1,286
24 Lone Star Technologies, Inc. (D).................. 1,168
76 Nordson Corp. .................................... 3,509
135 Steelcase, Inc. .................................. 2,240
98 Tennant Co. ...................................... 2,704
53 Toro Co. ......................................... 2,266
111 Varian Semiconductor Equipment Associates, Inc.
(D)............................................. 4,032
--------
24,826
--------
CONSUMER CYCLICAL -- 12.0%
53 Aeropostale, Inc. (D)............................. 1,550
50 Albany International Corp. Class A................ 1,691
100 American Woodmark Corp. (G)....................... 3,688
68 Applied Industrial Technologies, Inc. ............ 1,954
483 Arris Group, Inc. (D)............................. 6,466
62 Be Aerospace, Inc. (D)............................ 1,560
66 Bon-Ton Stores, Inc. (G).......................... 2,343
173 Christopher & Banks Corp. ........................ 4,657
49 Dress Barn, Inc. ................................. 1,064
210 DSW, Inc. (D)(G).................................. 7,249
66 First Cash Financial Services, Inc. .............. 1,431
72 Genesco, Inc. (D)................................. 2,701
40 McGrath RentCorp.................................. 1,067
75 Noble International Ltd. ......................... 1,329
68 Phillips-Van Heusen Corp. ........................ 3,093
146 PSS World Medical, Inc. (D)....................... 2,940
54 RARE Hospitality International, Inc. (D).......... 1,711
224 Skechers U.S.A., Inc. Class A (D)................. 6,682
37 Stanley Furniture Co., Inc. ...................... 820
177 Talbots, Inc. .................................... 4,974
220 True Religion Apparel, Inc. (G)................... 4,763
--------
63,733
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
ENERGY -- 4.8%
108 Cabot Oil & Gas Corp. ............................ $ 5,733
96 Delek US Holdings, Inc. (D)....................... 1,785
57 Encore Acquisition Co. (D)........................ 1,432
152 Frontier Oil Corp. ............................... 4,478
309 Grey Wolf, Inc. (D)............................... 2,162
300 Meridian Resource Corp. (D)....................... 1,008
98 Pioneer Drilling Co. (D).......................... 1,292
457 Seitel, Inc. (D).................................. 1,581
50 St. Mary Land & Exploration Co. .................. 1,857
32 Swift Energy Co. (D).............................. 1,495
33 Trico Marine Services, Inc. (D)................... 1,132
54 W&T Offshore, Inc. ............................... 1,810
--------
25,765
--------
FINANCE -- 10.6%
76 Advance America Cash Advance Centers, Inc. ....... 1,142
80 Advanta Corp. Class B............................. 3,135
73 Arch Capital Group Ltd. (D)....................... 4,706
152 Aspen Insurance Holdings Ltd. .................... 3,763
18 City Holding Co. ................................. 698
76 CompuCredit Corp. (D)(G).......................... 2,652
77 Corus Bankshares, Inc. ........................... 1,589
69 DiamondRock Hospitality, Co. ..................... 1,171
29 Ehealth, Inc. (G)................................. 646
182 Encore Capital Group, Inc. (G).................... 2,548
48 First Community Bancorp, Inc. .................... 2,588
152 Hersha Hospitality Trust.......................... 1,662
256 Highland Hospitality Corp. ....................... 3,538
379 Impac Mortgage Holdings, Inc. (G)................. 3,590
125 IndyMac Bancorp, Inc. ............................ 5,680
73 Maguire Properties, Inc. ......................... 3,126
41 Molina Healthcare, Inc. (D)....................... 1,601
145 Net 1 UEPS Technologies, Inc. (D)................. 3,569
79 Northstar Realty Finance Corp. ................... 1,191
196 Strategic Hotels & Resorts, Inc. ................. 4,158
38 Sunstone Hotel Investors, Inc. ................... 1,117
16 Taylor Capital Group, Inc. ....................... 551
38 Wellcare Health Plans, Inc. (D)................... 2,256
--------
56,677
--------
HEALTH CARE -- 15.3%
112 Acadia Pharmaceuticals, Inc. (D).................. 1,059
346 Alkermes, Inc. (D)................................ 5,816
105 Amylin Pharmaceuticals, Inc. (D).................. 4,607
256 Applera Corp. -- Celera Genomics Group (D)........ 3,972
147 Ciphergen Biosystems, Inc. (D).................... 157
60 Connetics Corp. (D)............................... 1,017
448 CV Therapeutics, Inc. (D)(G)...................... 5,798
120 Cytokinetics, Inc. (D)............................ 876
329 Encysive Pharmaceuticals, Inc. (D)(G)............. 1,567
346 Exelixis, Inc. (D)................................ 3,358
138 Human Genome Sciences, Inc. (D)(G)................ 1,846
138 Immucor, Inc. .................................... 3,788
141 Incyte Corp. (D).................................. 671
37 Longs Drug Stores Corp. .......................... 1,588
56 Luminex Corp. (D)................................. 904
</Table>
The accompanying notes are an integral part of these financial statements.
221
THE HARTFORD SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
106 Magellan Health Services, Inc. (D)................ $ 4,626
68 Mannatech, Inc. (G)............................... 1,071
51 Meridian Bioscience, Inc. ........................ 1,178
693 NPS Pharmaceuticals, Inc. (D)(G).................. 3,271
114 Nu Skin Enterprises, Inc. Class A................. 2,174
199 Onyx Pharmaceuticals, Inc. (D)(G)................. 3,741
60 OSI Pharmaceuticals, Inc. (D)(G).................. 2,312
167 Perrigo Co. ...................................... 2,989
59 Pharmion Corp. (D)................................ 1,435
311 Regeneron Pharmaceuticals, Inc. (D)............... 6,228
279 Rigel Pharmaceuticals, Inc. (D)................... 3,090
70 Salix Pharmaceuticals Ltd. (D).................... 937
99 Sciele Pharma, Inc. (D)........................... 2,155
155 STERIS Corp. ..................................... 3,775
80 Wright Medical Group, Inc. (D).................... 1,977
38 Zoll Medical Corp. (D)............................ 1,478
114 Zymogenetics, Inc. (D)............................ 1,826
--------
81,287
--------
SERVICES -- 13.6%
56 Advisory Board Co. (D)............................ 3,087
54 Allscripts Healthcare Solutions, Inc. (D)......... 1,283
298 BISYS Group, Inc. (D)............................. 3,286
80 Central European Media Enterprises Ltd. (D)....... 5,928
64 Cerner Corp. (D)(G)............................... 3,102
120 Cumulus Media, Inc. Class A (D)(G)................ 1,282
43 Factset Research Systems, Inc. ................... 2,209
153 Gevity HR, Inc. .................................. 3,447
245 Global Imaging Systems, Inc. (D).................. 5,327
74 Healthspring, Inc. (D)............................ 1,486
50 Hub Group, Inc. .................................. 1,355
111 Imergent, Inc. (D)(G)............................. 1,857
121 ITT Educational Services, Inc. (D)................ 8,357
172 Jack Henry & Associates, Inc. .................... 3,757
23 John H. Harland Co. .............................. 924
96 Live Nation, Inc. (D)............................. 2,032
78 Martha Stewart Living Omnimedia, Inc. (G)......... 1,643
187 Mediacom Communications Corp. (D)................. 1,560
51 MoneyGram International, Inc. .................... 1,738
40 MTS Systems Corp. ................................ 1,338
95 Parametric Technology Corp. (D)................... 1,851
131 Perot Systems Corp. Class A (D)................... 1,934
60 Per-Se Technologies, Inc. (D)..................... 1,464
131 Plexus Corp. (D).................................. 2,872
311 Premiere Global Services, Inc. (D)................ 2,589
65 Resources Connection, Inc. (D).................... 1,890
9 Stanley, Inc. (D)................................. 160
48 Watson Wyatt Worldwide, Inc. ..................... 2,145
95 Wright Express Corp. (D).......................... 2,606
--------
72,509
--------
TECHNOLOGY -- 23.1%
45 A.O. Smith Corp. ................................. 1,568
38 Actuant Corp. Class A............................. 1,951
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
TECHNOLOGY -- (CONTINUED)
135 Acuity Brands, Inc. .............................. $ 6,673
93 Acxiom Corp. ..................................... 2,309
274 Advanced Energy Industries, Inc. (D).............. 4,299
457 Amkor Technology, Inc. (D)........................ 3,155
50 Ansys, Inc. (D)................................... 2,314
96 Benchmark Electronics, Inc. (D)................... 2,543
110 Blackbaud, Inc. .................................. 2,745
447 Brocade Communications Systems, Inc. (D).......... 3,623
107 Candela Corp. (D)................................. 1,509
330 Cirrus Logic, Inc. (D)............................ 2,331
181 CSG Systems International, Inc. (D)(G)............ 4,875
98 Diodes, Inc. (D).................................. 4,303
185 Eagle Test Systems, Inc. (D)...................... 3,247
123 eFunds Corp. (D).................................. 3,040
18 Equinix, Inc. (D)................................. 1,238
5 Exlservice Holdings, Inc. (D)..................... 94
78 FuelCell Energy, Inc. (D)(G)...................... 514
1,175 Gemstar-TV Guide International, Inc. (D).......... 4,088
112 Golden Telecom, Inc. ............................. 4,160
47 Interdigital Communications Corp. ................ 1,681
24 International Rectifier Corp. (D)................. 849
35 Intervoice, Inc. (D).............................. 215
251 iPass, Inc. (D)(G)................................ 1,337
174 j2 Global Communications, Inc. (D)(G)............. 4,766
118 Komag, Inc. (D)(G)................................ 4,514
82 Lamson & Sessions Co. (D)(G)...................... 1,783
210 Micrel, Inc. (D).................................. 2,340
33 MicroStrategy, Inc. (D)(G)........................ 3,986
64 Multi-Fineline Electronix, Inc. (D)(G)............ 1,543
46 Neustar, Inc. (D)................................. 1,341
102 Novatel, Inc. (D)................................. 3,802
129 OmniVision Technologies, Inc. (D)(G).............. 2,125
102 Palomar Medical Technologies, Inc. (D)(G)......... 4,780
181 Portalplayer, Inc. (D)(G)......................... 2,182
62 Regal-Beloit Corp. ............................... 3,056
255 Silicon Image, Inc. (D)........................... 3,013
71 Sybase, Inc. (D).................................. 1,722
71 Syniverse Holdings, Inc. (D)...................... 1,047
21 Transaction Systems Architects, Inc. (D).......... 701
63 Travelzoo, Inc. (G)............................... 2,065
64 Trident Microsystems, Inc. (D).................... 1,347
283 Trizetto Group, Inc. (D).......................... 4,840
35 United Industrial Corp. .......................... 1,584
306 United Online, Inc. .............................. 4,140
152 Vishay Intertechnology, Inc. (D).................. 2,044
--------
123,382
--------
TRANSPORTATION -- 4.5%
95 American Commercial Lines, Inc. (D)............... 6,062
73 Freighter America, Inc. (G)....................... 3,871
77 General Maritime Corp. (G)........................ 2,805
297 Knight Transportation, Inc. ...................... 5,420
89 Old Dominion Freight Line, Inc. (D)............... 2,462
</Table>
The accompanying notes are an integral part of these financial statements.
222
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- (CONTINUED)
25 Thor Industries, Inc. ............................ $ 1,087
112 Werner Enterprises, Inc. ......................... 2,062
--------
23,769
--------
Total common stock
(cost $481,201)................................. $511,319
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 20.2%
REPURCHASE AGREEMENT -- 3.7%
$19,495 Deutsche Bank Repurchase Agreement,
5.25%, 11/01/2006............................... $ 19,495
--------
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 16.4%
87,207 BNY Institutional Cash Reserve Fund............... $ 87,207
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
US TREASURY BILL -- 0.1%
$ 750 U.S. Treasury Bill,
4.90%, 12/07/2006 (M)(S)........................ $ 746
--------
Total short-term investments
(cost $107,448)................................. $107,448
--------
Total investments in securities
(cost $588,649) (C)............................. $618,767
========
</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 0.71% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $589,714 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $ 52,851
Unrealized depreciation........................ (23,798)
--------
Net unrealized appreciation.................... $ 29,053
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(S) Security pledged as initial margin deposit for open futures
contracts at October 31, 2006.
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
----------- --------- -------- ---------- --------------
Russell Mini Futures 78 Long December 2006 $335
====
</Table>
These contracts had a market value of $6,014 as of October 31, 2006.
The accompanying notes are an integral part of these financial statements.
223
THE HARTFORD STOCK FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- 99.5%
BASIC MATERIALS -- 5.7%
598 Alcoa, Inc. ...................................... $ 17,297
173 Cameco Corp. ..................................... 6,063
470 Companhia Vale do Rio Doce ADR (G)................ 11,967
329 Dow Chemical Co. ................................. 13,436
160 E.I. DuPont de Nemours & Co. ..................... 7,328
297 Mittal Steel Co. (G).............................. 12,684
----------
68,775
----------
CAPITAL GOODS -- 3.8%
285 American Standard Cos., Inc. ..................... 12,640
204 Boeing Co. ....................................... 16,307
135 Deere & Co. ...................................... 11,501
110 Goodrich Corp. ................................... 4,854
----------
45,302
----------
CONSUMER CYCLICAL -- 8.1%
289 Altria Group, Inc. ............................... 23,480
479 D.R. Horton, Inc. ................................ 11,211
313 eBay, Inc. (D)(G)................................. 10,066
122 Federated Department Stores, Inc. ................ 5,353
510 Gap, Inc. ........................................ 10,727
321 Home Depot, Inc. ................................. 11,983
111 Toyota Motor Corp. (A)............................ 6,554
356 Wal-Mart Stores, Inc. ............................ 17,558
----------
96,932
----------
CONSUMER STAPLES -- 5.3%
103 Clorox Co. ....................................... 6,669
1 Japan Tobacco, Inc. (A)........................... 4,622
305 PepsiCo, Inc. .................................... 19,375
319 Procter & Gamble Co. ............................. 20,190
518 Unilever N.V. NY Shares........................... 12,531
----------
63,387
----------
ENERGY -- 5.3%
284 EnCana Corp. (G).................................. 13,506
285 Exxon Mobil Corp. ................................ 20,355
510 Halliburton Co. .................................. 16,492
298 Williams Cos., Inc. .............................. 7,283
127 XTO Energy, Inc. ................................. 5,930
----------
63,566
----------
FINANCE -- 21.1%
325 Aegon N.V. (A).................................... 5,979
446 American International Group, Inc. ............... 29,941
631 Bank of America Corp. ............................ 33,981
150 Capital One Financial Corp. ...................... 11,907
712 Citigroup, Inc. .................................. 35,729
383 Countrywide Financial Corp. ...................... 14,604
471 E*Trade Financial Corp. (D)....................... 10,970
146 Federal Home Loan Mortgage Corp. ................. 10,100
41 Goldman Sachs Group, Inc. ........................ 7,724
126 ING Groep N.V. ADR................................ 5,568
-- Mitsubishi UFJ Financial Group, Inc. (A).......... 6,165
104 Muenchener Rueckversicherungs-Gesellschaft AG
(A)............................................. 16,848
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
FINANCE -- (CONTINUED)
162 State Street Corp. ............................... $ 10,380
387 UBS AG............................................ 23,168
495 UnitedHealth Group, Inc. ......................... 24,161
324 Western Union Co. ................................ 7,151
----------
254,376
----------
HEALTH CARE -- 12.1%
345 Abbott Laboratories............................... 16,372
212 Amgen, Inc. (D)................................... 16,116
1,137 Boston Scientific Corp. (D)....................... 18,086
795 Bristol-Myers Squibb Co. ......................... 19,676
119 Cardinal Health, Inc. ............................ 7,789
797 Elan Corp. plc ADR (D)(G)......................... 11,535
337 Eli Lilly & Co. .................................. 18,894
391 Sanofi-Aventis S.A. ADR........................... 16,683
580 Schering-Plough Corp. ............................ 12,839
393 Shionogi & Co., Ltd. (A).......................... 7,874
----------
145,864
----------
SERVICES -- 9.8%
351 Accenture Ltd. Class A............................ 11,551
174 Autodesk, Inc. (D)................................ 6,409
104 Fluor Corp. ...................................... 8,180
169 Monster Worldwide, Inc. (D)....................... 6,830
1,511 Sun Microsystems, Inc. (D)(G)..................... 8,205
637 Time Warner, Inc. ................................ 12,740
387 United Parcel Service, Inc. Class B (G)........... 29,123
362 Viacom, Inc. Class B (D).......................... 14,091
307 Walt Disney Co. .................................. 9,668
893 XM Satellite Radio Holdings, Inc. Class A
(D)(G).......................................... 10,412
----------
117,209
----------
TECHNOLOGY -- 27.8%
310 Adobe Systems, Inc. (D)........................... 11,873
134 American Tower Corp. Class A (D).................. 4,819
871 AT&T, Inc. (G).................................... 29,820
565 Broadcom Corp. Class A (D)(G)..................... 17,115
1,152 Cisco Systems, Inc. (D)........................... 27,803
1,758 EMC Corp. (D)..................................... 21,533
337 First Data Corp. ................................. 8,175
993 Flextronics International Ltd. (D)................ 11,518
1,637 General Electric Co. ............................. 57,461
42 Google, Inc. (D).................................. 19,865
531 Marvell Technology Group Ltd. (D)................. 9,710
470 Maxim Integrated Products, Inc. .................. 14,096
585 Medtronic, Inc. .................................. 28,492
904 Microsoft Corp. .................................. 25,954
534 Oracle Corp. (D).................................. 9,859
2 Samsung Electronics Co., Ltd. (A)................. 1,228
238 Sharp Corp. (A)................................... 4,236
975 Sprint Nextel Corp. .............................. 18,227
506 Yahoo!, Inc. (D)(G)............................... 13,328
----------
335,112
----------
</Table>
The accompanying notes are an integral part of these financial statements.
224
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
COMMON STOCK -- (CONTINUED)
UTILITIES -- 0.5%
47 E.On AG (A)....................................... $ 5,635
----------
Total common stock
(cost $1,124,843)............................... $1,196,158
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 8.9%
REPURCHASE AGREEMENTS -- 0.6%
$ 1,533 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 1,533
902 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 902
36 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 36
721 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 721
1,515 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 1,515
829 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 829
2,038 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 2,038
----------
7,574
----------
<Caption>
MARKET
SHARES VALUE (W)
- --------- ----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 8.3%
99,232 BNY Institutional Cash Reserve Fund............... $ 99,232
----------
Total short-term investments
(cost $106,806)................................. $ 106,806
----------
Total investments in securities
(cost $1,231,649) (C)........................... $1,302,964
==========
</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 14.38% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $59,141, which represents 4.92% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $1,248,951 and the aggregate gross unrealized appreciation
and depreciation based on that cost were:
<Table>
Unrealized appreciation........................ $ 90,974
Unrealized depreciation........................ (36,961)
--------
Net unrealized appreciation.................... $ 54,013
========
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- -------- --------------
Japanese Yen Buy $ 420 $ 414 11/01/2006 $ 6
Japanese Yen Buy 3,224 3,215 11/02/2006 9
Japanese Yen Buy 1,767 1,754 11/06/2006 13
---
$28
===
</Table>
The accompanying notes are an integral part of these financial statements.
225
THE HARTFORD TARGET RETIREMENT 2010 FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 98.5%
EQUITY FUNDS -- 53.8%
6 Hartford Capital Appreciation Fund, Class Y....... $ 266
14 Hartford Disciplined Equity Fund, Class Y......... 192
2 Hartford Equity Income Fund, Class Y.............. 21
3 Hartford Global Leaders Fund, Class Y............. 53
2 Hartford Growth Fund, Class Y (D)................. 29
1 Hartford Growth Opportunities Fund, Class Y....... 30
2 Hartford International Capital Appreciation Fund,
Class Y......................................... 28
4 Hartford International Opportunities Fund, Class
Y............................................... 63
4 Hartford International Small Company Fund, Class
Y............................................... 71
2 Hartford MidCap Value Fund, Class Y............... 26
2 Hartford Select MidCap Growth Fund, Class Y....... 27
2 Hartford Select MidCap Value Fund, Class Y........ 26
6 Hartford Select SmallCap Value Fund, Class Y
(D)............................................. 67
2 Hartford Small Company Fund, Class Y (D).......... 51
2 Hartford SmallCap Growth Fund, Class Y (D)........ 57
17 Hartford Value Fund, Class Y...................... 216
5 Hartford Value Opportunities Fund, Class Y........ 97
------
Total equity funds
(cost $1,284)................................... $1,320
------
FIXED INCOME FUNDS -- 44.7%
13 Hartford Floating Rate Fund, Class Y.............. 134
11 Hartford High Yield Fund, Class Y................. 89
11 Hartford Income Fund, Class Y..................... 112
21 Hartford Inflation Plus Fund, Class Y............. 220
26 Hartford Short Duration Fund, Class Y............. 256
21 Hartford Total Return Bond Fund, Class Y.......... 226
6 Hartford U.S. Government Securities Fund, Class
Y............................................... 61
------
Total fixed income funds
(cost $1,089)................................... $1,098
------
Total investments in affiliated investment
companies
(cost $2,373) (C)............................... $2,418
======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $2,373 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................. $49
Unrealized depreciation............................. (4)
---
Net unrealized appreciation......................... $45
===
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
226
THE HARTFORD TARGET RETIREMENT 2020 FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 98.7%
EQUITY FUNDS -- 63.3%
10 Hartford Capital Appreciation Fund, Class Y....... $ 402
15 Hartford Disciplined Equity Fund, Class Y......... 206
4 Hartford Equity Income Fund, Class Y.............. 50
7 Hartford Global Leaders Fund, Class Y............. 134
2 Hartford Growth Fund, Class Y (D)................. 42
1 Hartford Growth Opportunities Fund, Class Y....... 43
1 Hartford International Capital Appreciation Fund,
Class Y......................................... 12
2 Hartford International Opportunities Fund, Class
Y............................................... 41
6 Hartford International Small Company Fund, Class
Y............................................... 106
1 Hartford MidCap Value Fund, Class Y............... 8
1 Hartford Select MidCap Growth Fund, Class Y....... 12
2 Hartford Select Midcap Value Fund, Class Y........ 28
-- Hartford Select Smallcap Growth Fund, Class Y
(D)............................................. 2
1 Hartford Select Smallcap Value Fund, Class Y
(D)............................................. 16
4 Hartford Small Company Fund, Class Y (D).......... 81
3 Hartford SmallCap Growth Fund, Class Y (D)........ 80
29 Hartford Value Fund, Class Y...................... 377
6 Hartford Value Opportunities Fund, Class Y........ 110
------
Total equity funds
(cost $1,672)................................... $1,750
------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FIXED INCOME FUNDS -- 35.4%
13 Hartford Floating Rate Fund, Class Y.............. $ 132
3 Hartford High Yield Fund, Class Y................. 27
25 Hartford Income Fund, Class Y..................... 254
11 Hartford Inflation Plus Fund, Class Y............. 116
28 Hartford Short Duration Fund, Class Y............. 275
16 Hartford Total Return Bond Fund, Class Y.......... 175
------
Total fixed income funds
(cost $974)..................................... $ 979
------
Total investments in affiliated investment
companies
(cost $2,646) (C)............................... $2,729
======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $2,647 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................. $82
Unrealized depreciation............................. --
---
Net unrealized appreciation......................... $82
===
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
227
THE HARTFORD TARGET RETIREMENT 2030 FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
AFFILIATED INVESTMENT COMPANIES -- 98.0%
EQUITY FUNDS -- 76.6%
9 Hartford Capital Appreciation Fund, Class Y....... $ 361
20 Hartford Disciplined Equity Fund, Class Y......... 266
4 Hartford Equity Income Fund, Class Y.............. 56
10 Hartford Global Leaders Fund, Class Y............. 193
1 Hartford Growth Fund, Class Y (D)................. 12
2 Hartford Growth Opportunities Fund, Class Y....... 73
1 Hartford International Capital Appreciation Fund,
Class Y......................................... 8
-- Hartford International Opportunities Fund, Class
Y............................................... 5
5 Hartford International Small Company Fund, Class
Y............................................... 80
-- Hartford MidCap Value Fund, Class Y............... 6
1 Hartford Select MidCap Growth Fund, Class Y....... 12
1 Hartford Select MidCap Value Fund, Class Y........ 16
5 Hartford Select SmallCap Growth Fund, Class Y
(D)............................................. 49
-- Hartford Select SmallCap Value Fund, Class Y...... 1
8 Hartford Small Company Fund, Class Y (D).......... 181
3 Hartford SmallCap Growth Fund, Class Y (D)........ 81
17 Hartford Value Fund, Class Y...................... 223
7 Hartford Value Opportunities Fund, Class Y........ 121
------
Total equity funds
(cost $1,665)................................... $1,744
------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FIXED INCOME FUNDS -- 21.4%
3 Hartford Income Fund, Class Y..................... $ 28
11 Hartford Inflation Plus Fund, Class Y............. 112
16 Hartford Short Duration Fund, Class Y............. 157
18 Hartford Total Return Bond Fund, Class Y.......... 189
------
Total fixed income funds
(cost $483)..................................... $ 486
------
Total investments in affiliated investment
companies
(cost $2,148) (C)............................... $2,230
======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $2,148 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................. $82
Unrealized depreciation............................. --
---
Net unrealized appreciation......................... $82
===
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
228
THE HARTFORD TAX-FREE CALIFORNIA FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- 94.8%
GENERAL OBLIGATIONS -- 10.2%
$ 870 California GO,
4.75%, 09/01/2028............................... $ 893
900 California Kindergarten University GO,
3.45%, 05/01/2034 (L)........................... 900
600 Covina Valley, CA, USD GO,
4.38%, 08/01/2027............................... 603
400 Grant, CA, USD GO,
4.38%, 08/01/2031............................... 396
250 Puerto Rico Commonwealth Ref GO,
5.00%, 07/01/2030............................... 264
-------
3,056
-------
HEALTH CARE/SERVICES -- 5.2%
200 California ABAG FA for Non-Profit Corp., San Diego
Hospital Assoc,
5.38%, 03/01/2021............................... 211
250 California Health Fac FA, Catholic Healthcare
West,
5.25%, 07/01/2023............................... 266
300 California Public Works Board, Dept of Health
Services Richmond Lab,
5.00%, 11/01/2030............................... 316
200 California Public Works Board, Dept of Mental
Health Patton,
5.38%, 04/01/2028............................... 213
250 California State Community DA, Health Services
Rev,
6.00%, 10/01/2023............................... 277
250 California Statewide Community DA, Daughters of
Charity Health,
5.25%, 07/01/2030............................... 264
-------
1,547
-------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 17.6%
200 California Educational Fac Auth Rev,
5.00%, 01/01/2025............................... 207
630 California Educational Fac Auth Rev,
5.00%, 04/01/2030............................... 655
455 California Educational Fac Auth Rev,
5.00%, 10/01/2025............................... 472
300 California Educational Fac Auth Rev,
5.00%, 12/01/2025............................... 312
180 California Educational Fac Auth, La Verne
University,
5.00%, 06/01/2031............................... 185
750 California Educational Fac Auth, University of the
Pacific,
5.00%, 11/01/2036............................... 780
175 California State Community DA,
4.88%, 10/01/2035............................... 176
250 California State Community DA, John F. Kennedy
University Rev,
6.75%, 10/01/2033............................... 264
1,000 California State University Rev,
5.00%, 11/01/2028............................... 1,064
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
HIGHER EDUCATION -- (CONTINUED)
$1,895 Chabot-Las Positas, CA, Community College
District,
5.05%, 08/01/2033 (M)(Q)........................ $ 513
250 Hemet, CA, USD,
5.13%, 09/01/2036 (Q)........................... 252
250 Poway, CA, USD Special Tax,
5.13%, 09/01/2026............................... 256
110 University Virgin Islands,
5.00%, 12/01/2021............................... 114
-------
5,250
-------
HOUSING (HFA'S, ETC.) -- 2.8%
650 California Economic Recovery,
3.59%, 01/01/2012 (L)........................... 650
200 Riverside County California Public FA,
4.50%, 10/01/2037 (Q)........................... 199
-------
849
-------
LAND DEVELOPMENT -- 6.4%
350 Burbank, CA, FA Rev, South San Fernando Redev
Proj,
5.50%, 12/01/2023............................... 369
400 Fontana, CA, Redev Agency, Tax Allocation Ref
Jurupa Hills Redev Proj,
5.50%, 10/01/2027............................... 412
295 Manhattan Beach, CA, Improvement BD Act,
5.00%, 09/02/2026............................... 304
250 Oakland, CA, Redev Agency, Colliseum Area Tax
Allocation,
5.25%, 09/01/2033............................... 275
200 San Diego, CA, Redev Agency, Centre City Sub Pkg,
5.25%, 09/01/2026............................... 205
150 San Diego, CA, Redev Agency, Tax Allocation North
Bay Redev Proj,
5.60%, 09/01/2017............................... 157
175 San Diego, CA, Redev Agency, Tax Allocation North
Park Redev Proj,
5.30%, 09/01/2016............................... 182
-------
1,904
-------
MISCELLANEOUS -- 30.8%
100 Azusa, CA, Special Tax Community Fac Dist #1
Mountain Cove,
5.75%, 09/01/2021............................... 105
50 Beaumont, CA, FA Rev,
7.25%, 09/01/2020............................... 54
500 California Infrastructure & Econ Dev, Bay Area
Toll Bridges GO FSA,
5.00%, 07/01/2022............................... 566
200 California Kings River Conservation Dist, Rev Ref
Partner Peaking Proj,
5.00%, 05/01/2013............................... 212
650 Chico, CA, Redevelopment Agency Tax Allocation,
5.00%, 04/01/2027............................... 691
</Table>
The accompanying notes are an integral part of these financial statements.
229
THE HARTFORD TAX-FREE CALIFORNIA FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
MISCELLANEOUS -- (CONTINUED)
$ 225 Chino, CA, Community Fac District Special Tax,
5.00%, 09/01/2036............................... $ 227
400 Contra Costa County, CA, Public FA Tax Allocation,
5.63%, 08/01/2033............................... 423
200 Elk Grove, CA, Special Tax East Franklin
Community,
5.85%, 08/01/2036............................... 207
250 Escondido, California,
5.15%, 09/01/2036 (Q)........................... 252
400 Huntington Park, CA, Public FA Rev Ref,
5.25%, 09/01/2019............................... 447
300 Indio, CA, Community Fac Dist,
5.05%, 09/01/2026............................... 302
135 Indio, CA, Public FA Rev Local Agency,
5.00%, 09/02/2014............................... 138
57 Indio, CA, Public Improvement Act Special Assess
#2002-3 GO,
6.35%, 09/02/2027............................... 60
225 Irvine, CA, Community Fac Dist,
5.20%, 09/01/2026............................... 232
250 Jurupa, CA,
5.20%, 09/01/2036............................... 255
1,000 Kern County, CA, California Tobacco Securitization
Agency,
6.00%, 06/01/2029............................... 1,071
200 Lake Elsinore, CA, Special Tax Community Fac Dist,
5.35%, 09/01/2036............................... 204
250 Lake Elsinore, CA, Special Tax Community Fac Dist,
5.15%, 09/01/2025............................... 259
100 Lake Elsinore, CA, Special Tax Community Fac Dist
#2-A,
5.85%, 09/01/2024............................... 106
310 Long Beach, CA, Harbor Rev Ref,
5.00%, 05/15/2015............................... 332
300 Oceanside, CA, Community Development,
5.70%, 09/01/2025............................... 320
100 Perris, CA, Public FA Local Agency Rev,
6.25%, 09/01/2033............................... 109
200 Roseville, CA, Special Tax CFD#1,
5.25%, 09/01/2025............................... 206
250 Sacramento, CA, North Natomas Community Fac,
5.00%, 09/01/2025............................... 254
1,000 San Francisco, CA, California Toll Bridge Rev,
5.00%, 04/01/2031............................... 1,067
425 Solano, CA, MBIA,
5.25%, 11/01/2021............................... 460
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MISCELLANEOUS -- (CONTINUED)
$ 300 Virgin Islands Public FA Rev,
4.25%, 10/01/2029............................... $ 301
250 Virgin Islands Public FA, Revhovenska Refinery,
6.13%, 07/01/2022............................... 275
-------
9,135
-------
POLLUTION CONTROL -- 0.8%
250 California PCR, Pacific Gas & Electric,
3.50%, 12/01/2023............................... 250
-------
PUBLIC FACILITIES -- 7.5%
250 California Public Works Board, Dept of Corrections
Ref,
5.00%, 12/01/2018............................... 270
250 California Statewide Community DA,
5.00%, 11/01/2029 (Q)........................... 250
160 California Statewide Community DA, Var-Kaiser Ser
C,
5.25%, 08/01/2031............................... 171
100 Capistrano, CA, USD Community Fac Dist Special Tax
#90-2 Talega,
5.88%, 09/01/2022............................... 114
100 Jurupa, CA, Community Services Dist #6 Special
Tax,
5.88%, 09/01/2032............................... 102
110 Moreno Valley, CA, USD Community Fac Special Tax
#2002-1,
5.60%, 09/01/2017............................... 116
100 Orange County, CA, Community Fac Dist Special Tax
#02-1 Ladera Ranch,
5.20%, 08/15/2019............................... 103
200 Orange County, CA, Community Fac Dist Special Tax
#02-1 Ladera Ranch,
5.40%, 08/15/2022............................... 206
250 Tustin, CA, USD Community Fac Dist Special Tax #97
Jr Lien,
5.60%, 09/01/2029............................... 257
200 Val Verde, CA, USD FA Special Tax Rev Jr Lien,
6.00%, 10/01/2021............................... 210
300 William S. Hart USD,
5.25%, 09/01/2026............................... 308
125 William S. Hart USD, Special Tax Community Fac
#2002-1,
5.85%, 09/01/2022............................... 134
-------
2,241
-------
TRANSPORTATION -- 0.6%
165 Orange County, CA, Special Assess,
5.05%, 09/02/2033............................... 170
-------
UTILITIES -- COMBINED -- 0.9%
250 California State Water Dept, Res Power Supply Rev,
5.88%, 05/01/2016............................... 282
-------
</Table>
The accompanying notes are an integral part of these financial statements.
230
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
UTILITIES -- GAS -- 1.1%
$ 300 Chula Vista, CA, IDR Daily San Diego Gas,
5.30%, 07/01/2021............................... $ 323
-------
UTILITIES -- WATER AND SEWER -- 9.6%
500 Atwater, CA, Public FA Sewer & Water Project,
5.50%, 05/01/2028............................... 512
250 Big Bear Muni Water Dist, Ref Lake Imports,
5.00%, 11/01/2024............................... 255
1,000 California Metropolitan Water Dist, Southern CA
Waterworks Rev,
4.38%, 07/01/2037............................... 991
250 Lathrop, CA, FA Rev Water Supply Proj,
6.00%, 06/01/2035............................... 267
150 Lee Lake, CA, Water Dist Community Fac Dist #3
Special Tax Retreat,
5.75%, 09/01/2023............................... 158
200 Santa Margarita, CA, Water Dist Special Tax
Community Fac Dist #99-1,
6.00%, 09/01/2030............................... 212
200 Sun Ranch, CA, Municipal Water Dist,
5.00%, 09/01/2036............................... 202
240 Truckee-Donner, CA, Pub Utility Dist,
5.00%, 11/15/2031............................... 256
-------
2,853
-------
WASTE DISPOSAL -- 1.3%
375 Stockton, CA, Wastewater Sys Proj MBIA,
5.20%, 09/01/2029............................... 391
-------
Total municipal bonds
(cost $27,297).................................. $28,251
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
SHORT-TERM INVESTMENTS -- 4.6%
FINANCE -- 4.6%
1,362 Dreyfus Basic California Municipal Money Market
Fund,........................................... $ 1,362
-------
Total short-term investments
(cost $1,362)................................... $ 1,362
-------
Total investments in securities
(cost $28,659) (C).............................. $29,613
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $28,659 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................ $955
Unrealized depreciation............................ (1)
----
Net unrealized appreciation........................ $954
====
</Table>
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(Q) The cost of securities purchased on a when-issued or delayed
delivery basis at October 31, 2006 was $1,442.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
<Table>
DA -- Development Authority
FA -- Finance Authority
GO -- General Obligations
IDR --
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue Bond
USD -- United School District
</Table>
The accompanying notes are an integral part of these financial statements.
231
THE HARTFORD TAX-FREE MINNESOTA FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- 96.3%
AIRPORT REVENUES -- 4.5%
$ 500 Minneapolis & St Paul, MN, Airport Commission,
5.00%, 01/01/2035............................... $ 526
1,000 Minneapolis & St Paul, MN, Airport Commission FGIC
AMT,
5.63%, 01/01/2018............................... 1,062
-------
1,588
-------
GENERAL OBLIGATIONS -- 15.7%
1,000 Anoka-Hennepin, MN, ISD #11 GO Credit Enhancement
Program,
5.00%, 02/01/2015............................... 1,052
1,300 Becker, MN, ISD #726 GO FSA,
6.00%, 02/01/2017............................... 1,395
500 Brainerd, MN, ISD #181 GO FGIC,
5.38%, 02/01/2016............................... 546
250 Minneapolis, MN, Parking Assess GO,
5.00%, 12/01/2020............................... 267
785 Mounds View, MN, ISD #621 GO,
5.25%, 02/01/2014............................... 835
1,950 Rosemount, MN, ISD #196 GO MBIA,
5.70%, 04/01/2015 (M)........................... 1,391
-------
5,486
-------
HEALTH CARE/SERVICES -- 20.1%
250 Bemidji, MN, Health Care Facility,
5.00%, 09/01/2021............................... 262
250 Bemidji, MN, Health Care Facility,
5.00%, 09/01/2024............................... 262
1,130 Duluth, MN, Econ DA Health Care Fac Rev,
Benedictine Health Sys St Mary,
5.50%, 02/15/2023............................... 1,212
350 Marshall, MN, Avera Marshall Regional Med Center,
4.75%, 11/01/2028............................... 356
250 Minneapolis, MN, Health Care System AllinaHealth,
6.00%, 11/15/2018............................... 277
1,000 Minnesota Agriculture and Econ Development
Healthcare Fac, Benedictine Health,
5.25%, 02/15/2014............................... 1,059
330 Northfield, MN, Hospital Rev,
5.38%, 11/01/2031............................... 346
335 St Paul, MN, Housing Redev Auth Hospital Rev,
6.00%, 11/15/2025............................... 370
750 Stillwater, MN, Health System Obligation Group,
5.00%, 06/01/2035............................... 782
725 Todd, Morrison, Cass, & Wadena County, MN,
Hospital Lakewood Health Care Fac,
5.25%, 12/01/2026............................... 769
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
HEALTH CARE/SERVICES -- (CONTINUED)
$1,000 Waconia, MN, Health Care Fac Rev Ridgeview Med Ctr
Proj,
6.10%, 01/01/2019............................... $ 1,067
250 Willmar, MN, Rice Memorial Hospital Proj FSA,
5.00%, 02/01/2025............................... 264
-------
7,026
-------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 9.8%
300 Minnesota Higher Education FA,
5.00%, 05/01/2026............................... 312
500 Minnesota Higher Education FA, Augsburg College,
5.00%, 05/01/2020............................... 521
500 Minnesota Higher Education FA, Augsburg College,
5.00%, 05/01/2023............................... 519
350 Minnesota Higher Education FA, College of
St Benedict,
5.25%, 03/01/2024............................... 368
1,000 University of Minnesota,
5.75%, 07/01/2018............................... 1,182
270 University Virgin Islands,
5.13%, 12/01/2022............................... 280
100 University Virgin Islands,
5.25%, 12/01/2023............................... 105
125 University Virgin Islands,
5.25%, 12/01/2024............................... 130
-------
3,417
-------
HOUSING (HFA'S, ETC.) -- 10.7%
350 Inver Grove Heights, MN, Presbyterian Homes Care,
5.50%, 10/01/2033............................... 355
80 Minneapolis, MN, Redev Mtg Rev Riverplace Proj,
7.10%, 01/01/2020............................... 80
790 Minnesota Residential Housing Fin Agency,
5.00%, 01/01/2020............................... 808
350 Prior Lake, MN, Shepards Path Senior Housing Inc.,
5.75%, 08/01/2041............................... 357
360 Renville County, MN,
4.60%, 02/01/2027............................... 366
1,000 Rochester, MN, Health Care Fac Rev,
5.00%, 11/15/2036............................... 1,050
260 St Paul, MN, Housing Redev Auth, Hmong Academy
Proj,
6.00%, 09/01/2036............................... 262
450 St Paul, MN, Housing Redev Auth, Hope Community
Academy Proj,
6.25%, 12/01/2019............................... 476
-------
3,754
-------
</Table>
The accompanying notes are an integral part of these financial statements.
232
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
MISCELLANEOUS -- 15.0%
$1,000 Golden Valley, MN, Breck School Proj Rev,
5.88%, 10/01/2019............................... $ 1,063
350 Minneapolis, MN,
5.35%, 02/01/2030............................... 354
1,000 Puerto Rico Commonwealth Public Fin Corp.,
5.75%, 08/01/2027............................... 1,085
250 Ramsey, MN, Lease Rev Pact Charter School Proj,
6.50%, 12/01/2022............................... 265
300 St. Louis Park, MN, Roitenberg Family Assisted
Proj,
5.55%, 08/15/2029............................... 307
500 St Paul, MN, PA Lease Rev,
5.00%, 12/01/2019............................... 526
300 St Paul, MN, Redev Auth Rev Ref, Achieve Language
Academy,
6.75%, 12/01/2022............................... 309
750 Virgin Islands Public FA, Revhovenska Refinery,
6.13%, 07/01/2022............................... 826
500 Woodbury, MN,
5.75%, 06/01/2041............................... 514
-------
5,249
-------
POLLUTION CONTROL -- 1.5%
500 Cohasset, MN, Pollution Control Rev Ref Coll
Allete Inc. Proj,
4.95%, 07/01/2022............................... 514
-------
PUBLIC FACILITIES -- 3.5%
835 Minnesota Agricultural Society, State Fair Rev,
5.13%, 09/15/2023............................... 870
350 Minnesota Intermediate School Dist Minnlease Rev,
5.30%, 11/01/2032............................... 357
-------
1,227
-------
TRANSPORTATION -- 5.3%
750 Duluth, MN, Seaway PA IDA Dock & Wharf Rev Ref,
Cargill Inc Proj,
4.20%, 05/01/2013............................... 753
1,000 Puerto Rico Commonwealth Highway & Transportation
Auth FSA,
5.50%, 07/01/2013............................... 1,114
-------
1,867
-------
UTILITIES -- COMBINED -- 0.9%
300 Princeton, MN, Public Utility Sys Rev,
5.00%, 04/01/2024............................... 308
-------
UTILITIES -- ELECTRIC -- 4.5%
500 Chaska, MN, Electric Rev,
5.00%, 10/01/2030............................... 523
500 Minnesota Power Agency, Electric Rev,
5.25%, 10/01/2019............................... 543
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
UTILITIES -- ELECTRIC -- (CONTINUED)
$ 500 Northern MN Municipal Power Agency, Elec Sys Rev
FSA,
5.30%, 01/01/2021............................... $ 518
-------
1,584
-------
UTILITIES -- WATER AND SEWER -- 4.8%
500 Minneapolis, MN, Metro Council Water Treatment,
4.75%, 12/01/2016............................... 535
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Auth
Rev,
6.25%, 07/01/2013............................... 1,133
-------
1,668
-------
Total municipal bonds
(cost $32,110).................................. $33,688
-------
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 2.3%
FINANCE -- 2.3%
793 State Street Bank Tax Free Money Market Fund...... $ 793
-------
Total short-term investments
(cost $793)..................................... $ 793
-------
Total investments in securities
(cost $32,903) (C).............................. $34,481
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $32,903 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $1,582
Unrealized depreciation.......................... (4)
------
Net unrealized appreciation...................... $1,578
======
</Table>
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
<Table>
AMT -- Alternative Minimum Tax
FA -- Finance Authority
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligations
IDA -- Industrial Development Authority Bond
ISD -- Independent School District
MBIA -- Municipal Bond Insurance Association
PA -- Port Authority
</Table>
The accompanying notes are an integral part of these financial statements.
233
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- 96.9%
ALABAMA -- 1.7%
$1,855 Huntsville, AL, GO,
5.25%, 05/01/2022............................... $ 2,019
--------
ALASKA -- 0.8%
1,000 Anchorage, AK, Anchorage Convention Center,
5.00%, 09/01/2034............................... 1,056
--------
ARIZONA -- 4.4%
560 Arizona Sundance Community Fac Dist,
5.13%, 07/15/2030............................... 584
431 Arizona Sundance Community Fac Dist, Special
Assess Rev #2,
7.13%, 07/01/2027 (H)........................... 464
1,800 Phoenix, AZ, GO,
6.25%, 07/01/2017............................... 2,184
1,100 Pima County, AZ, Charter Schools Proj,
5.75%, 07/01/2016 (H)........................... 1,123
1,000 Pima County, AZ, Noah Webster Basic School,
5.60%, 12/15/2019............................... 1,045
200 Vistancia, AZ, Community Fac Dist GO,
6.75%, 07/15/2022 (H)........................... 218
--------
5,618
--------
CALIFORNIA -- 14.4%
1,800 California Educational Fac Auth Rev,
5.00%, 01/01/2025............................... 1,862
990 California Educational Fac Auth Rev,
5.00%, 12/01/2025............................... 1,031
820 California Educational Fac Auth, La Verne
University,
5.00%, 06/01/2031............................... 844
1,000 California Educational Fac Auth, University of the
Pacific,
5.00%, 11/01/2036............................... 1,040
500 California GO,
6.75%, 08/01/2011............................... 568
1,000 California State Public Works Board,
5.25%, 06/01/2030............................... 1,069
465 California Statewide Community DA, Var-Kaiser-C,
5.25%, 08/01/2031............................... 498
350 California Statewide Community DA,
4.88%, 10/01/2031............................... 353
325 California Statewide Community DA,
4.88%, 10/01/2035............................... 327
750 California Statewide Community DA, Daughters of
Charity Health,
5.25%, 07/01/2030............................... 793
260 California Statewide Community DA,
5.00%, 11/01/2029 (Q)........................... 260
250 Capistrano, CA, USD Community Fac Dist Special Tax
#90-2 Talega,
5.90%, 09/01/2020............................... 285
625 Indio, CA, Public FA Rev Local Agency,
5.63%, 09/02/2018............................... 649
38 Indio, CA, Public Improvement Act Special Assess
#2002-3 GO,
6.35%, 09/02/2027............................... 40
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
CALIFORNIA -- (CONTINUED)
$ 400 Jurupa, CA, Community Services Dist #6 Special
Tax,
5.88%, 09/01/2032............................... $ 409
750 Lathrop, CA, FA Rev Water Supply Proj,
6.00%, 06/01/2035............................... 801
500 Moreno Valley, CA, USD Community Fac Dist Special
Tax #2002-1,
6.00%, 09/01/2022............................... 534
700 Oceanside, CA, Community Dev,
5.70%, 09/01/2025............................... 747
835 Orange County, CA, Special Assessment,
5.05%, 09/02/2033............................... 860
535 Palm Springs, CA, Community Redev Agency,
5.50%, 09/01/2023............................... 570
495 Perris, CA, Public FA Local Agency Rev,
6.25%, 09/01/2033............................... 541
1,000 Pomona, CA, Public FA Rev Sub-Merged Redev,
5.50%, 02/01/2023............................... 1,056
320 Sacramento, CA, North Natomas Community Fac,
5.00%, 09/01/2025............................... 325
500 San Diego, CA, Redev Agency Centre City Sub Pkg,
5.25%, 09/01/2026............................... 513
1,800 San Jose, CA, Santa Clara County University,
4.91%, 08/01/2027 (M)........................... 717
1,000 San Manuel, CA, Entertainment Auth Public
Improvement,
4.50%, 12/01/2016 (I)........................... 1,011
800 Val Verde, CA, USD FA Special Tax Rev Jr Lien,
6.00%, 10/01/2021............................... 840
--------
18,543
--------
COLORADO -- 3.9%
600 Black Hawk, CO, Device Tax Revenue,
5.00%, 12/01/2021............................... 608
1,000 Colorado Educational & Cultural Fac Charter School
Banning Lewis,
6.13%, 12/15/2035............................... 1,038
1,200 Colorado Health Facilities Authority Adventist
Health,
5.25%, 11/15/2035 (Q)........................... 1,275
1,000 Sorrel Ranch, CO, Met Dist Ltd. Tax,
5.75%, 12/01/2036............................... 1,017
1,000 Woodmen Heights Co, Metered Dist #1 Rev,
6.75%, 12/01/2020............................... 1,070
--------
5,008
--------
CONNECTICUT -- 0.8%
1,000 Mashantucket West Pequot,
5.50%, 09/01/2036 (I)........................... 1,053
--------
FLORIDA -- 5.0%
1,000 Amelia Walk Community Development,
5.50%, 05/01/2037............................... 1,029
965 Bellalgo, FL, Education Fac Benefits Dist Capital
Improvement Rev,
5.85%, 05/01/2022............................... 1,002
</Table>
The accompanying notes are an integral part of these financial statements.
234
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 485 Colonial Country Club Community Dev Dist, Capital
Improvement Rev,
6.40%, 05/01/2033............................... $ 522
1,250 Florida Dept of Environmental Protection
Preservation, MBIA,
5.38%, 07/01/2015............................... 1,369
230 Gateway Services, Community Dev Dist, Special
Assessment Sun City Center Fort Meyers Proj,
5.50%, 05/01/2010............................... 233
1,500 Highland County, FL, Adventist Hospital,
5.25%, 11/15/2036............................... 1,600
750 Hollywood, FL, Community Redev Agency,
5.13%, 03/01/2014............................... 767
--------
6,522
--------
GEORGIA -- 4.0%
750 Augusta, GA, Airport Rev Passenger Fac Charge,
5.15%, 01/01/2035............................... 778
1,105 Fulton County, GA, School Dist GO,
5.38%, 01/01/2018............................... 1,262
35 Fulton County, GA, Water & Sewer Rev FGIC,
6.38%, 01/01/2014............................... 39
1,765 Fulton County, GA, Water & Sewer Rev FGIC Part
(Prerefunded with State and Local Gov't
Securities),
6.38%, 01/01/2014............................... 1,980
15 Georgia Municipal Electric Auth, Power Rev
(Prerefunded with U.S. Gov't Securities),
6.50%, 01/01/2017............................... 18
945 Georgia Municipal Electric Auth, Power Rev,
6.50%, 01/01/2017............................... 1,119
40 Georgia Municipal Electric Auth, Power Rev Ser Y,
6.50%, 01/01/2017............................... 47
--------
5,243
--------
IDAHO -- 0.8%
1,000 Madison County, ID, Hospital Rev,
5.25%, 09/01/2030............................... 1,044
--------
ILLINOIS -- 5.6%
445 Bolingbrook, IL, Sales Tax Rev,
6.42% 01/01/2024 (M)............................ 433
960 Chicago, IL, Board of Education GO MBIA,
5.25%, 12/01/2019............................... 1,032
1,000 Chicago, IL, Tax Increment Allocation Jr Lien
Pilsen Redev B,
6.75%, 06/01/2022............................... 1,065
500 Illinois FA, Augustana College Ser A,
5.70%, 10/01/2032............................... 530
1,000 Illinois FA, Illinois Institute of Technology,
5.00%, 04/01/2036............................... 1,034
500 Plano, IL, Lakewood Springs Proj Special Services
Area,
6.10%, 03/01/2035............................... 513
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ILLINOIS -- (CONTINUED)
$ 500 Round Lake, IL, Special Tax Rev,
6.70%, 03/01/2033............................... $ 541
1,000 Wauconda, IL, Special Service Area #1 Liberty
Lakes Proj,
6.63%, 03/01/2033............................... 1,072
975 Yorkville, IL, United City Special Service Area
Tax #2003-100 Raintree Village Proj,
6.88%, 03/01/2033 (H)........................... 1,048
--------
7,268
--------
IOWA -- 0.8%
1,000 Iowa Higher Education,
5.10%, 10/01/2036............................... 1,025
--------
KANSAS -- 2.6%
1,500 Kansas City, KS, Wyandotte County University
Special Obligation Rev,
5.00%, 12/01/2020............................... 1,566
260 La Cygne, KS, Kansas City Power & Light,
4.65%, 09/01/2035............................... 266
500 Lawrence, KS, Lawrence Memorial Hospital,
5.13%, 07/01/2036............................... 525
1,000 Salina, KS, Salina Regional Health Hospital Rev,
4.63%, 10/01/2031............................... 1,013
--------
3,370
--------
KENTUCKY -- 0.1%
150 Boone County, KY, Pollution Control Dayton Power &
Light,
4.70%, 01/01/2028............................... 155
--------
LOUISIANA -- 0.4%
500 Louisiana Public FA Rev, Ochsner Clinic Foundation
Proj,
5.50%, 05/15/2027............................... 533
--------
MARYLAND -- 0.9%
1,000 Maryland Economic Dev Corp Student Housing Rev
University of Maryland College Park Proj,
6.50%, 06/01/2027............................... 1,164
--------
MASSACHUSETTS -- 0.8%
60 Massachusetts, GO Consolidated Loan FSA
(Prerefunded with U.S. Gov't Securities),
5.25%, 03/01/2021............................... 65
940 Massachusetts, GO Consolidated Loan,
5.25%, 03/01/2021............................... 1,014
--------
1,079
--------
MICHIGAN -- 3.9%
500 Detroit, MI, GO MBIA,
5.50%, 04/01/2020............................... 540
1,750 Detroit, MI, Water Supply Sys Ref Rev FGIC,
6.50%, 07/01/2015............................... 2,096
1,000 Macomb County, MI, Hospital FA Rev
Mt Clemens Gen Hospital,
5.75%, 11/15/2025............................... 1,049
</Table>
The accompanying notes are an integral part of these financial statements.
235
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
MICHIGAN -- (CONTINUED)
$ 500 Michigan Hospital FA, Rev Ref Henry Ford Health
Sys,
5.63%, 03/01/2017............................... $ 555
750 Michigan Strategic Fund Ltd, Rev Ref Dow Chemical
Proj AMT,
5.50%, 12/01/2028............................... 813
--------
5,053
--------
MINNESOTA -- 5.1%
250 Duluth, MN, Seaway PA IDA Dock & Wharf Rev Ref
Cargill Inc. Proj,
4.20%, 05/01/2013............................... 251
175 Inver Grove Heights, MN, Ref-Presbyterian Homes
Care,
5.50%, 10/01/2033............................... 177
750 Minneapolis, MN, Health Care System AllinaHealth,
6.00%, 11/15/2018............................... 832
790 Minnesota Residential Housing Fin Agency,
5.00%, 01/01/2020............................... 808
1,150 Minnesota, Intermediate School District Minnlease
Rev,
5.30%, 11/01/2032............................... 1,173
500 Ramsey County, MN, Lease Rev Pact Charter School
Proj,
6.50%, 12/01/2022............................... 530
665 St Paul, MN, Housing & Redev Auth Hospital Rev,
6.00%, 11/15/2025............................... 735
500 St Paul, MN, Redev Auth Rev Ref Achieve Language
Academy,
6.75%, 12/01/2022............................... 515
740 St. Paul, MN, Housing & Redev Auth, Hmong Academy
Proj,
6.00%, 09/01/2036............................... 747
860 St. Paul, MN, Housing & Redev Auth, Lease Rev,
6.00%, 12/01/2018............................... 872
--------
6,640
--------
MISSISSIPPI -- 1.2%
250 Lowndes County, MS, Solid Waste Disposal &
Pollution Control Rev Ref, Weyerhaeuser Co Proj,
6.80%, 04/01/2022............................... 307
1,250 Warren County, MS,
4.80%, 08/01/2030............................... 1,260
--------
1,567
--------
MISSOURI -- 0.4%
500 Branson, MO, State Dev Fin Board Infrastructure,
5.50%, 12/01/2032............................... 527
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
NEVADA -- 1.7%
$1,000 Clark County, NV, Improvement Dist #142,
6.38%, 08/01/2023............................... $ 1,036
1,115 North Las Vegas, NV, Local Improvement,
5.10%, 12/01/2022............................... 1,149
--------
2,185
--------
NEW HAMPSHIRE -- 1.4%
750 New Hampshire Health & Educational FA, Elliot
Hospital,
5.60%, 10/01/2022............................... 812
1,000 New Hampshire Health & Education Facilities,
5.25%, 06/01/2036............................... 1,020
--------
1,832
--------
NEW JERSEY -- 5.4%
1,250 Middlesex County, NJ, Improvement Auth Street
Student Housing Proj,
5.00%, 08/15/2018............................... 1,310
275 New Jersey Educational FA, Fairleigh Dickinson
University,
6.00%, 07/01/2025............................... 301
500 New Jersey Educational FA, Georgian Court College,
6.50%, 07/01/2033............................... 560
750 New Jersey Educational FA, Stevens Institute of
Technology,
5.13%, 07/01/2022............................... 785
800 New Jersey, Economic DA Rev Cigarette Tax,
5.63%, 06/15/2019............................... 841
1,000 New Jersey Health Care Facilities FA,
5.00%, 07/01/2036 (Q)........................... 1,040
1,950 New Jersey Tobacco Settlement Financing Corp,
6.13%, 06/01/2024............................... 2,116
--------
6,953
--------
NEW MEXICO -- 0.5%
665 Cabezon, NM, Public Improvement District,
5.20%, 09/01/2015............................... 677
--------
NEW YORK -- 6.1%
950 Brookhaven New York Municipal Bond,
4.25%, 11/01/2037............................... 950
575 Cattaraugus County, NY,
5.10%, 05/01/2031............................... 593
250 Dutchess County, NY, IDA Civic Fac Rev Ref Marist
College,
5.00%, 07/01/2022............................... 262
550 Erie County, NY, IDA Charter School Applied Tech
Proj-A,
6.75%, 06/01/2025............................... 555
1,000 Liberty, NY, Corp Dev Goldman Sachs Headquarters,
5.25%, 10/01/2035............................... 1,161
800 New York Dorm Auth, Methodist Hospital,
5.25%, 07/01/2019............................... 856
75 New York, NY, GO,
5.75%, 03/01/2019............................... 83
</Table>
The accompanying notes are an integral part of these financial statements.
236
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
NEW YORK -- (CONTINUED)
$1,000 New York, NY, IDA Terminal One Group Assoc
Project,
5.50%, 01/01/2024............................... $ 1,084
300 Saratoga, NY, IDA Saratoga Hospital Proj,
5.00%, 12/01/2013............................... 315
1,000 Suffolk County, NY, Jeffersons Ferry Proj,
5.00%, 11/01/2028............................... 1,028
620 Utica, NY, IDA Civic Fac Rev Utica College,
6.88%, 12/01/2014............................... 668
400 Westchester County, NY, IDA Continuing Care
Retirement Kendal on Hudson Proj,
6.38%, 01/01/2024............................... 425
--------
7,980
--------
NORTH CAROLINA -- 0.8%
500 North Carolina Eastern Municipal Power Agency,
Power Sys Rev Ref,
5.38%, 01/01/2017............................... 534
500 North Carolina Municipal Power Agency, Catawba
Elec Rev,
5.50%, 01/01/2014............................... 542
--------
1,076
--------
NORTH DAKOTA -- 0.4%
510 Williams County, ND, Sales Tax Rev,
5.00%, 11/01/2031............................... 522
--------
OHIO -- 1.4%
300 Cuyahoga County, OH, Rev Ref Class A,
5.50%, 01/01/2029............................... 323
1,270 Hamilton, OH, School Dist Improvement,
6.15%, 12/01/2016............................... 1,516
--------
1,839
--------
OTHER U.S. TERRITORIES -- 1.5%
1,000 Puerto Rico Commonwealth, Ref GO,
5.00%, 07/01/2030............................... 1,054
110 University Virgin Islands,
5.00%, 12/01/2021............................... 114
750 Virgin Islands Public FA, Revhovenska Refinery,
6.13%, 07/01/2022............................... 826
--------
1,994
--------
PENNSYLVANIA -- 2.7%
545 Carbon County, PA, IDA Res Recovery Panther Creek
Partners Proj AMT,
6.65%, 05/01/2010............................... 569
1,000 Lehigh County, PA, Saint Lukes Bethlehem Hospital,
5.38%, 08/15/2033............................... 1,055
800 Montgomery County, PA, IDA Whitemarsh Continuing
Care Proj,
6.13%, 02/01/2028............................... 851
1,000 Pennsylvania Higher Education FA, Widener
University,
5.25%, 07/15/2024............................... 1,054
--------
3,529
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
RHODE ISLAND -- 5.9%
$1,000 Central Falls, RI, Detention FA Fac Rev,
6.75%, 01/15/2013............................... $ 1,053
250 Rhode Island, Health & Education Bldg Corp,
6.50%, 08/15/2032............................... 287
1,000 Rhode Island, Higher Education Fac Rev, Roger
Williams University
5.00%, 11/15/2036............................... 1,049
5,000 Rhode Island Tobacco Settlement Funding Corp,
6.00%, 06/01/2023............................... 5,319
--------
7,708
--------
SOUTH CAROLINA -- 1.4%
1,000 Dorchester County, SC, School Dist #2 Installment
Purchase Rev, Growth Remedy Opportunity Hike,
5.25%, 12/01/2024............................... 1,066
750 Lancaster County, SC, Sun City Carolina Lakes
Improvement,
5.45%, 12/01/2037............................... 766
--------
1,832
--------
TENNESSEE -- 2.0%
2,000 Johnson City, TN, Health & Educational Fac Board
Hospital Rev,
5.50%, 07/01/2036............................... 2,150
500 McMinn County, TN, IDA PCR Calhoun Newsprint Co
Proj,
7.63%, 03/01/2016............................... 503
--------
2,653
--------
TEXAS -- 2.8%
1,000 Brazos River Authority, Pollution Control Rev,
5.00%, 03/01/2041............................... 1,005
1,000 Matagorda County, TX, Navigation Dist #1 Rev Ref
Centerpoint Energy Proj,
5.60%, 03/01/2027............................... 1,062
500 Sam Rayburn Municipal Power Agency, Rev Ref,
5.50%, 10/01/2010............................... 525
1,000 Willacy County, TX, GO,
6.00%, 03/01/2009............................... 1,019
--------
3,611
--------
VERMONT -- 0.4%
500 Vermont Economic DA, GO,
5.38%, 05/01/2036............................... 512
--------
VIRGINIA -- 3.2%
500 Norfolk, VA, Redev & Housing Auth, First Mort
Retirement Community,
6.00%, 01/01/2025............................... 519
1,000 Peninsula, VA, Port Auth Fac, CSX Transport Proj
Rev Ref,
6.00%, 12/15/2012............................... 1,092
</Table>
The accompanying notes are an integral part of these financial statements.
237
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,000 Virginia College Bldg Auth, Education Fac Rev
Regent University Proj,
5.00%, 06/01/2036............................... $ 1,035
1,455 Virginia Tobacco Settlement Funding Corp,
5.50%, 06/01/2026............................... 1,550
--------
4,196
--------
WASHINGTON -- 0.5%
670 King County, WA, ISD #210 GO,
5.00%, 06/01/2019............................... 707
--------
WISCONSIN -- 1.2%
1,000 Upland Hills, WI, State Health & Educational Fac
Auth Rev,
5.13%, 05/15/2029............................... 1,044
470 Wisconsin Housing & Economic Dev Auth, GO Home
Ownership Rev,
4.85%, 09/01/2017............................... 488
--------
1,532
--------
Total municipal bonds
(cost $119,512)................................. $125,825
--------
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 3.3%
FINANCE -- 3.3%
4,230 State Street Bank Tax Free Money Market Fund...... $ 4,230
--------
Total short-term investments
(cost $4,230)................................... $ 4,230
--------
Total investments in securities
(cost $123,742) (C)............................. $130,055
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $123,742 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $6,313
Unrealized depreciation.......................... --
------
Net unrealized appreciation...................... $6,313
======
</Table>
(H) The following securities are considered illiquid. Illiquid securities
are often purchased in private placement transactions, are not registered
under the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security lacks
a readily available market or if its valuation has not changed for a
certain period of time.
<Table>
<Caption>
PERIOD
ACQUIRED PAR SECURITY COST BASIS
-------- --- -------- ----------
October, 2006 $ 560 Arizona Comm Fac Dist, $562
Special Assess Rev #2
7.13%, 07/01/2027 - 144A
April, 2004 1,100 Pima County, AZ GO, 990
5.75%, 07/01/2016
December, 2002 200 Vistancia, AZ 200
Comm Fac Dist GO,
6.75%, 07/15/2022
August, 2003 975 Yorkville, IL, United City 975
Special Service Area
Tax #2003 - 100 Raintree
Village Project
6.88%, 03/01/2033
</Table>
The aggregate value of these securities at October 31, 2006 was
$2,853, which represents 2.20% of total net assets.
(I) 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 qualified institutional
buyers. 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, 2006, was $2,064, which represents 1.59% of
total net assets.
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(Q) The cost of securities purchased on a when-issued or delayed
delivery basis at October 31, 2006 was $2,541.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
<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
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 these financial statements.
238
THE HARTFORD TAX-FREE NEW YORK FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- 95.3%
AIRPORT REVENUES -- 2.4%
$ 200 Monroe County, NY, Airport Auth Rev Ref, Greater
Rochester International,
5.25%, 01/01/2014............................... $ 214
150 New York, NY, IDA Terminal One Group Assoc Proj,
5.50%, 01/01/2024............................... 163
-------
377
-------
GENERAL OBLIGATIONS -- 7.9%
390 New York, NY, GO (Prerefunded with U.S. Gov't
Securities),
5.75%, 03/01/2019............................... 437
450 New York, NY, GO,
5.00%, 03/01/2030............................... 473
35 New York, NY, GO,
5.75%, 03/01/2019............................... 39
250 Puerto Rico Commonwealth, Ref GO,
5.00%, 07/01/2030............................... 264
-------
1,213
-------
HEALTH CARE/SERVICES -- 9.0%
125 Chemung County, NY, IDA Civic Fac Rev Arnot Ogden
Medical Center,
5.00%, 11/01/2034............................... 129
150 Long Island Jewish-Nursing Home,
5.00%, 11/01/2034............................... 157
5 New York Dorm Auth, Mental Health Services Fac,
5.00%, 02/15/2018............................... 5
200 New York Dorm Auth, Methodist Hospital,
5.25%, 07/01/2019............................... 214
400 New York Dorm Auth, Rochester General Hospital,
5.00%, 12/01/2025............................... 424
150 New York Dorm Auth, NYU Hospitals Center,
5.00%, 07/01/2026............................... 153
200 Saratoga, NY, IDA Saratoga Hospital Proj,
5.00%, 12/01/2014............................... 211
100 Westchester County, NY, IDA Continuing Care
Retirement Mtg-Kendal on Hudson Project,
6.38%, 01/01/2024............................... 106
-------
1,399
-------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 27.5%
250 Dutchess County, NY, IDA Civic Fac Rev Ref Marist
College,
5.00%, 07/01/2022............................... 262
250 Erie County, NY, IDA Charter School Applied Tech
Proj-A,
6.75%, 06/01/2025............................... 252
250 New York Dorm Auth, Brooklyn Law School,
5.50%, 07/01/2019............................... 272
425 New York Dorm Auth, Court Fac,
5.50%, 05/15/2020............................... 472
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
HIGHER EDUCATION -- (CONTINUED)
$ 80 New York Dorm Auth, Fordham University FGIC,
5.00%, 07/01/2020............................... $ 85
400 New York Dorm Auth, Mount St Mary College,
5.00%, 07/01/2027............................... 420
135 New York Dorm Auth, Rochester University,
5.25%, 07/01/2022............................... 146
450 New York Dorm Auth, St Barnabas FHA,
5.13%, 02/01/2022............................... 478
450 New York Dorm Auth, State University Dorm Fac,
5.00%, 07/01/2032............................... 483
250 New York Dorm Auth, Upstate Community College,
5.25%, 07/01/2021............................... 271
200 New York Dorm Auth, Winthrop South Nassau
University,
5.50%, 07/01/2023............................... 211
200 Otsego County, NY, IDA Civic Fac Rev Hartwick
College Proj,
6.00%, 07/01/2011............................... 211
450 St. Lawrence, NY, IDA Civic Fac Rev Clarkson
University Proj,
5.00%, 07/01/2023............................... 468
110 University Virgin Islands,
5.00%, 12/01/2021............................... 114
100 Utica, NY, IDA Civic Fac Rev Utica College,
6.88%, 12/01/2014............................... 108
-------
4,253
-------
HOUSING (HFA'S, ETC.) -- 3.5%
150 Brookhaven, NY,
4.25%, 11/01/2037............................... 150
175 Cattaraugus County, NY,
5.10%, 05/01/2031............................... 180
200 Grand Central, NY, Dist Management Assoc Inc Ref
Capital Business Improvement,
5.00%, 01/01/2022............................... 211
-------
541
-------
INDUSTRIAL -- 4.8%
45 Albany, NY, IDA New Covenant Charter School,
5.00%, 05/01/2007............................... 45
200 Liberty, NY, Corp Dev Goldman Sachs Headquarters,
5.25%, 10/01/2035............................... 232
250 New York, NY, IDA Civic Fac Rev YMCA of Greater NY
Proj,
5.25%, 08/01/2021............................... 260
200 Rensselaer County, NY, Industrial Improvement,
5.00%, 01/01/2036............................... 211
-------
748
-------
</Table>
The accompanying notes are an integral part of these financial statements.
239
THE HARTFORD TAX-FREE NEW YORK FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
MUNICIPAL BONDS -- (CONTINUED)
MISCELLANEOUS -- 17.6%
$1,000 Nassau County, NY, Tobacco Settlement Corp,
5.00%, 06/01/2035............................... $ 1,019
450 New York, NY, Transitional FA Future Tax Secured,
5.00%, 08/01/2023............................... 474
400 Tobacco Settlement FA of NY,
5.50%, 06/01/2022............................... 437
500 TSACS, Inc.,
5.13%, 06/01/2042............................... 513
250 Virgin Islands Public FA, Revhovenska Refinery,
6.13%, 07/01/2022............................... 275
-------
2,718
-------
POLLUTION CONTROL -- 4.0%
450 New York Environmental Fac Corp.,
5.00%, 07/15/2026............................... 474
150 Onondaga County, NY, Indl Dev Agy Pollution Ctl
Rev,
4.88%, 07/01/2041............................... 153
-------
627
-------
PUBLIC FACILITIES -- 7.5%
500 Niagara Falls, NY, School District Certificate
Participation,
5.00%, 06/15/2028............................... 530
600 Rensselaer, NY, City School Dist,
5.00%, 06/01/2036............................... 636
-------
1,166
-------
TRANSPORTATION -- 6.4%
450 New York Metropolitan Transportation Auth,
5.13%, 11/15/2031............................... 475
500 Suffolk County, NY, Jeffersons Ferry Proj,
5.00%, 11/01/2028............................... 514
-------
989
-------
UTILITIES -- ELECTRIC -- 1.7%
250 New York Energy Research & DA, Elec Fac Rev Adj
Long Island Lighting Co Proj,
5.30%, 08/01/2025............................... 260
-------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
UTILITIES -- WATER AND SEWER -- 3.0%
$ 450 Jefferson County, NY, IDA Waste Disposal,
5.20%, 12/01/2020............................... $ 463
-------
Total municipal bonds
(cost $14,158).................................. $14,754
-------
SHARES
SHORT-TERM INVESTMENTS -- 0.9%
FINANCE -- 0.9%
141 Dreyfus Basic New York Municipal Money Market
Fund............................................ $ 141
-------
Total short-term investments
(cost $141)..................................... $ 141
-------
Total investments in securities
(cost $14,299) (C).............................. $14,895
=======
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $14,299 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation............................ $599
Unrealized depreciation............................ (3)
----
Net unrealized appreciation........................ $596
====
</Table>
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
<Table>
DA -- Development Authority
FA -- Finance Authority
FGIC -- Financial Guaranty Insurance Company
GO -- General Obligations
IDA -- Industrial Development Authority Bond
</Table>
The accompanying notes are an integral part of these financial statements.
240
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
MUNICIPAL BONDS -- 0.1%
GENERAL OBLIGATIONS -- 0.1%
$ 1,250 Oregon School Boards Association, Taxable Pension,
4.76%, 06/30/2028............................... $ 1,152
----------
Total municipal bonds
(cost $1,250)................................... $ 1,152
----------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 15.6%
FINANCE -- 15.3%
$ 2,050 ACT Depositor Corp.,
5.48%, 09/22/2041 (I)(L)........................ $ 1,980
1,672 AmeriCredit Automobile Receivables Trust,
5.20%, 03/06/2011............................... 1,672
47,215 Banc of America Commercial Mortgage, Inc.,
4.08%, 12/10/2042 (P)........................... 890
20,280 Banc of America Commercial Mortgage, Inc.,
4.52%, 09/11/2036 (I)(P)........................ 730
2,840 Banc of America Commercial Mortgage, Inc.,
5.32%, 10/10/2011............................... 2,857
2,700 Banc of America Commercial Mortgage, Inc.,
5.52%, 07/10/2046 (L)........................... 2,739
3,990 Banc of America Commercial Mortgage, Inc.,
5.82%, 07/10/2044............................... 4,164
1,230 Banc of America Securities Auto Trust,
4.49%, 02/18/2013............................... 1,212
800 Bank One Issuance Trust,
4.77%, 02/16/2016............................... 771
12,843 Bear Stearns Commercial Mortgage Securities, Inc.,
4.07%, 07/11/2042 (P)........................... 441
11,016 Bear Stearns Commercial Mortgage Securities, Inc.,
4.12%, 11/11/2041 (P)........................... 297
23,907 Bear Stearns Commercial Mortgage Securities, Inc.,
5.50%, 02/11/2041 (I)(P)........................ 403
3,360 Bear Stearns Commercial Mortgage Securities, Inc.,
5.58%, 09/11/2041............................... 3,421
625 Capital Auto Receivables Asset Trust,
5.77%, 05/20/2010 (I)........................... 628
800 Capital Auto Receivables Asset Trust,
6.15%, 04/20/2011 (I)........................... 803
1,150 Capital One Auto Finance Trust,
4.32%, 05/15/2010............................... 1,136
13,785 CBA Commercial Small Balance Commercial Mortgage,
7.00%, 07/25/2035 (I)(P)........................ 676
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
FINANCE -- (CONTINUED)
$ 10,261 CBA Commercial Small Balance Commercial Mortgage,
7.00%, 06/25/2038 (I)(P)........................ $ 674
2,290 Citibank Credit Card Issuance Trust,
5.70%, 05/15/2013............................... 2,311
620 Citibank Credit Card Issuance Trust,
6.95%, 02/18/2014............................... 663
3,130 Citigroup Commercial Mortgage Trust,
5.25%, 04/15/2040............................... 3,139
4,000 Citigroup Commercial Mortgage Trust,
5.91%, 03/15/2049 (L)........................... 4,139
1,300 CNH Equipment Trust,
4.02%, 04/15/2009............................... 1,289
570 Connecticut RRB Special Purpose Trust CL&P,
6.21%, 12/30/2011............................... 590
178 Conseco Finance Securitizations Corp.,
5.79%, 05/01/2033............................... 178
299 Countrywide Asset-Backed Certificates,
5.46%, 07/25/2035............................... 296
3,420 Credit Suisse Mortgage Capital
Certificates -- Class A3,
6.02%, 06/15/2038 (L)........................... 3,569
1,663 Credit Suisse Mortgage Capital
Certificates -- Class AM,
6.02%, 06/15/2038 (L)........................... 1,734
341 CS First Boston Mortgage Securities Corp.,
2.08%, 05/15/2038............................... 332
40,963 CS First Boston Mortgage Securities Corp.,
4.39%, 07/15/2037 (I)(P)........................ 1,117
418 CS First Boston Mortgage Securities Corp.,
4.51%, 07/15/2037............................... 410
2,700 CS First Boston Mortgage Securities Corp.,
4.69%, 04/15/2037............................... 2,640
2,600 DB Master Finance LLC,
5.78%, 06/20/2031 (I)........................... 2,644
70,663 GE Business Loan Trust,
6.14%, 05/15/2034 (I)(P)........................ 883
2,053 GE Business Loan Trust,
6.32%, 05/15/2034 (I)(L)........................ 2,053
12,285 GMAC Commercial Mortgage Securities, Inc.,
4.10%, 12/10/2041 (P)........................... 274
2,535 GMAC Commercial Mortgage Securities, Inc.,
5.24%, 11/10/2045 (L)........................... 2,525
2,660 GMAC Mortgage Corp. Loan Trust,
5.75%, 10/25/2036............................... 2,666
29,253 Goldman Sachs Mortgage Securities Corp. II,
4.38%, 08/10/2038 (I)(P)........................ 316
</Table>
The accompanying notes are an integral part of these financial statements.
241
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 11 Green Tree Financial Corp.,
6.27%, 06/01/2030............................... $ 11
314 Green Tree Financial Corp.,
7.24%, 06/15/2028............................... 329
3,250 Greenwich Capital Commercial Funding Corp.,
5.12%, 04/10/2037 (L)........................... 3,249
1,975 Greenwich Capital Commercial Funding Corp.,
5.91%, 07/10/2038............................... 2,074
551 Home Equity Asset Trust,
4.75%, 06/27/2035 (I)........................... 544
2,462 Hyundai Auto Receivables Trust,
5.19%, 05/15/2013............................... 2,462
620 Hyundai Auto Receivables Trust,
5.29%, 11/15/2012............................... 621
23,211 JP Morgan Chase Commercial Mortgage Securities
Corp.,
3.68%, 01/15/2038 (I)(P)........................ 718
55,221 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.07%, 01/15/2042 (P)........................... 814
100,449 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.82%, 08/12/2037 (P)........................... 414
1,900 JP Morgan Chase Commercial Mortgage Securities
Corp.,
4.87%, 03/15/2046............................... 1,868
94,635 JP Morgan Chase Commercial Mortgage Securities
Corp.,
5.42%, 05/12/2045 (P)........................... 2,481
800 JP Morgan Chase Commercial Mortgage Securities
Corp.,
5.44%, 12/12/2044............................... 808
2,950 JP Morgan Chase Commercial Mortgage Securities
Corp.,
5.44%, 05/15/2045 (L)........................... 2,970
49,686 LB-UBS Commercial Mortgage Trust,
1.32%, 03/15/2036 (I)(P)........................ 1,610
1,070 LB-UBS Commercial Mortgage Trust,
2.72%, 03/15/2027............................... 1,044
3,950 LB-UBS Commercial Mortgage Trust,
5.22%, 02/15/2031 (L)........................... 3,921
25,441 LB-UBS Commercial Mortgage Trust,
5.26%, 10/15/2039 (P)........................... 888
2,950 LB-UBS Commercial Mortgage Trust,
5.41%, 10/15/2039 (L)........................... 2,966
1,144 Lehman Brothers Small Balance Commercial,
5.52%, 09/25/2030............................... 1,143
1,100 Lehman Brothers Small Balance Commercial,
5.62%, 09/25/2036 (I)........................... 1,100
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
FINANCE -- (CONTINUED)
$ 2,130 Marlin Leasing Receivables LLC,
5.33%, 09/16/2013............................... $ 2,136
1,460 MBNA Credit Card Master Note Trust,
4.10%, 10/15/2012............................... 1,420
1,025 MBNA Credit Card Master Note Trust,
4.30%, 02/15/2011............................... 1,013
2,400 MBNA Credit Card Master Note Trust,
4.50%, 01/15/2013............................... 2,364
950 MBNA Credit Card Master Note Trust,
6.70%, 03/16/2015............................... 1,020
417 Merrill Lynch Mortgage Trust,
4.56%, 06/12/2043............................... 409
43,133 Merrill Lynch Mortgage Trust,
4.57%, 06/12/2043 (P)........................... 1,152
22,977 Merrill Lynch/Countrywide Commercial Mortgage
Trust,
5.27%, 07/12/2046 (P)........................... 886
2,950 Merrill Lynch/Countrywide Commercial Mortgage
Trust,
5.46%, 07/12/2046 (L)........................... 2,970
2,040 Merrill Lynch/Countrywide Commercial Mortgage
Trust,
5.91%, 06/12/2046............................... 2,140
461 Morgan Stanley Auto Loan Trust,
5.00%, 03/15/2012 (I)........................... 458
686 Morgan Stanley Capital I,
7.64%, 04/30/2039 (I)(L)........................ 685
12,535 Morgan Stanley Dean Witter Capital I,
0.46%, 08/25/2032 (H)(P)........................ --
5,557 Morgan Stanley Dean Witter Capital I,
8.05%, 08/25/2032 (H)(P)........................ 68
1,225 Navistar Financial Corp. Owner Trust,
3.53%, 10/15/2012............................... 1,189
650 Popular ABS Mortgage Pass-Through Trust,
4.75%, 12/25/2034............................... 627
540 Popular ABS Mortgage Pass-Through Trust,
5.42%, 04/25/2035............................... 532
1,125 Providian Gateway Master Trust,
3.35%, 09/15/2011 (I)........................... 1,105
1,430 Providian Master Note Trust,
5.87%, 03/15/2015 (L)........................... 1,430
1,750 PSE&G Transition Funding LLC,
6.45%, 03/15/2013............................... 1,838
800 Renaissance Home Equity Loan Trust,
5.36%, 05/25/2035............................... 788
1,260 Renaissance Home Equity Loan Trust,
5.75%, 05/25/2036 (L)........................... 1,275
550 Residential Asset Mortgage Products, Inc.,
4.98%, 08/25/2034............................... 543
102 Soundview Home Equity Loan Trust,
8.64%, 05/25/2030............................... 102
2,075 Wachovia Auto Loan Owner Trust,
5.15%, 07/20/2012 (I)........................... 2,078
</Table>
The accompanying notes are an integral part of these financial statements.
242
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 2,150 Wachovia Auto Loan Owner Trust,
5.29%, 06/20/2012 (I)........................... $ 2,162
9,666 Wachovia Bank Commercial Mortgage Trust,
3.65%, 02/15/2041 (I)(P)........................ 286
42,959 Wachovia Bank Commercial Mortgage Trust,
4.48%, 05/15/2044 (I)(P)........................ 1,117
417 Wachovia Bank Commercial Mortgage Trust,
4.52%, 05/15/2044............................... 409
1,375 Wachovia Bank Commercial Mortgage Trust,
4.72%, 01/15/2041............................... 1,353
2,650 Wachovia Bank Commercial Mortgage Trust,
5.42%, 01/15/2045............................... 2,674
2,500 Wachovia Bank Commercial Mortgage Trust,
5.42%, 01/15/2045 (L)........................... 2,518
2,950 Wachovia Bank Commercial Mortgage Trust,
5.96%, 05/15/2043 (L)........................... 3,060
----------
133,104
----------
TRANSPORTATION -- 0.2%
1,075 Continental Airlines, Inc.,
6.70%, 06/15/2021............................... 1,091
826 Continental Airlines, Inc.,
8.05%, 11/01/2020............................... 903
----------
1,994
----------
UTILITIES -- 0.1%
760 Pacific Gas & Electric Energy Recovery Funding
LLC,
3.87%, 06/25/2011............................... 748
----------
Total asset & commercial
mortgage backed securities
(cost $135,705)................................. $ 135,846
----------
CORPORATE BONDS: INVESTMENT GRADE -- 20.8%
BASIC MATERIALS -- 0.7%
$ 491 Fortune Brands, Inc.,
5.13%, 01/15/2011 (G)........................... $ 482
1,550 Teck Cominco Ltd.,
5.38%, 10/01/2015 (G)........................... 1,514
1,250 Teck Cominco Ltd.,
6.13%, 10/01/2035............................... 1,219
2,055 Vale Overseas Ltd.,
6.25%, 01/11/2016............................... 2,068
1,000 Westvaco Corp.,
7.95%, 02/15/2031 (G)........................... 1,101
----------
6,384
----------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
CONSUMER CYCLICAL -- 0.2%
$ 710 Foster's Finance Corp.,
4.88%, 10/01/2014 (I)........................... $ 669
1,095 K. Hovnanian Enterprises,
6.00%, 01/15/2010............................... 1,040
----------
1,709
----------
CONSUMER STAPLES -- 0.9%
3,582 Diageo Capital plc,
5.88%, 09/30/2036............................... 3,505
2,237 Diageo Finance B.V.,
5.50%, 04/01/2013............................... 2,247
1,865 SABMiller plc,
6.20%, 07/01/2011 (I)........................... 1,916
550 Weyerhaeuser Co.,
8.50%, 01/15/2025............................... 619
----------
8,287
----------
ENERGY -- 2.0%
1,870 Amerada Hess Corp.,
7.13%, 03/15/2033............................... 2,083
2,240 Anadarko Petroleum Corp.,
5.95%, 09/15/2016............................... 2,275
400 Consumers Energy Co.,
5.15%, 02/15/2017............................... 383
1,095 Consumers Energy Co.,
5.38%, 04/15/2013 (G)........................... 1,086
1,270 Energy Transfer Partners L.P.,
6.13%, 02/15/2017............................... 1,290
1,215 Enterprise Products Operating L.P.,
4.63%, 10/15/2009............................... 1,190
1,150 Nexen, Inc.,
7.88%, 03/15/2032............................... 1,374
1,610 Petro-Canada,
5.95%, 05/15/2035............................... 1,552
467 Ras Laffan Liquefied Natural Gas Co., Ltd.,
3.44%, 09/15/2009 (I)........................... 454
3,690 Ras Laffan Liquefied Natural Gas Co., Ltd.,
5.30%, 09/30/2020 (I)........................... 3,561
710 Sempra Energy,
6.00%, 02/01/2013............................... 728
1,490 TNK-BP Finance S.A.,
7.50%, 07/18/2016 (I)........................... 1,559
----------
17,535
----------
FINANCE -- 9.5%
1,385 Aegon Funding Corp.,
5.75%, 12/15/2020............................... 1,407
1,400 AES El Salvador Trust,
6.75%, 02/01/2016 (I)........................... 1,390
2,708 Aetna, Inc.,
5.75%, 06/15/2011............................... 2,756
3,450 Aetna, Inc.,
6.63%, 06/15/2036............................... 3,717
6,058 American Express Credit Corp.,
6.80%, 09/01/2066 (G)........................... 6,442
</Table>
The accompanying notes are an integral part of these financial statements.
243
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ----------- ----------
CORPORATE BONDS: INVESTMENT
GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 3,110 AMVESCAP plc,
4.50%, 12/15/2009............................... $ 3,036
1,206 AMVESCAP plc,
5.38%, 02/27/2013............................... 1,191
915 Army Hawaii Family Housing Trust Certificates,
5.52%, 06/15/2050 (I)........................... 905
1,950 BAC Capital Trust XI,
6.63%, 05/23/2036............................... 2,101
1,735 BAE Systems Holdings, Inc.,
5.20%, 08/15/2015 (I)........................... 1,663
80 Capital One Bank,
4.88%, 05/15/2008............................... 80
1,490 Credit Suisse First Boston USA, Inc.,
6.50%, 01/15/2012............................... 1,573
1,355 ERAC USA Finance Co.,
5.60%, 05/01/2015 (I)........................... 1,344
1,740 ERP Operating L.P.,
6.58%, 04/13/2015............................... 1,859
1,355 Federal Home Loan Bank,
4.88%, 11/18/2011............................... 1,355
1,980 HSBC Holding plc,
6.50%, 05/02/2036............................... 2,145
2,525 iStar Financial, Inc.,
5.95%, 10/15/2013 (I)........................... 2,542
3,445 JP Morgan Chase Capital XX,
6.55%, 09/29/2036............................... 3,567
820 Kazkommerts International B.V.,
8.00%, 11/03/2015 (I)........................... 844
JPY 920,000 Landwirtsch Rentenbank,
0.65%, 09/30/2008............................... 7,860
1,685 Lehman Brothers Holdings, Inc.,
5.50%, 04/04/2016............................... 1,687
1,970 Liberty Mutual Group,
7.50%, 08/15/2036............................... 2,191
2,570 Merrill Lynch & Co., Inc.,
6.05%, 05/16/2016............................... 2,669
1,345 Merrill Lynch & Co., Inc.,
6.22%, 09/15/2026............................... 1,389
220 Metlife, Inc.,
5.38%, 12/15/2012............................... 222
2,205 Metlife, Inc.,
5.70%, 06/15/2035............................... 2,176
2,385 Morgan Stanley,
6.25%, 08/09/2026............................... 2,498
2,032 MUFG Capital Finance I Ltd.,
6.35%, 07/25/2049............................... 2,052
75 National Rural Utilities Cooperative Finance
Corp.,
5.75%, 08/28/2009............................... 76
1,511 Principal Financial Group,
6.05%, 10/15/2036............................... 1,560
2,110 Prudential Financial, Inc.,
5.90%, 03/17/2036............................... 2,136
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
FINANCE -- (CONTINUED)
$ 1,670 RBD Capital,
6.50%, 08/11/2008............................... $ 1,682
1,813 Residential Capital Corp.,
6.00%, 02/22/2011............................... 1,818
2,270 Residential Capital Corp.,
6.38%, 06/30/2010............................... 2,304
200 Simon Property Group, Inc.,
6.35%, 08/28/2012 (G)........................... 209
1,820 Simon Property Group, Inc.,
7.88%, 03/15/2016 (I)........................... 2,116
1,500 St. Paul Travelers Cos., Inc.,
8.13%, 04/15/2010............................... 1,634
810 Suntrust Preferred Capital,
5.85%, 12/29/2049 (L)........................... 817
496 Travelers Property Casualty Corp.,
5.00%, 03/15/2013............................... 486
1,370 TuranAlem Finance B.V.,
8.00%, 03/24/2014............................... 1,377
1,006 WellPoint, Inc.,
5.85%, 01/15/2036............................... 989
1,000 WellPoint, Inc.,
6.80%, 08/01/2012............................... 1,068
1,620 Western Union Co.,
5.93%, 10/01/2016 (I)........................... 1,644
----------
82,577
----------
FOREIGN GOVERNMENTS -- 0.2%
640 El Salvador (Republic of),
8.25%, 04/10/2032 (I)(G)........................ 749
682 United Mexican States,
5.63%, 01/15/2017............................... 682
----------
1,431
----------
HEALTH CARE -- 0.6%
856 Baxter International, Inc.,
5.90%, 09/01/2016............................... 883
1,880 Cardinal Health, Inc.,
5.85%, 12/15/2017............................... 1,884
2,630 Teva Pharmaceuticals Finance LLC,
6.15%, 02/01/2036............................... 2,574
----------
5,341
----------
SERVICES -- 1.5%
2,110 COX Communications, Inc.,
5.45%, 12/15/2014............................... 2,061
435 Electronic Data Systems Corp.,
3.88%, 07/15/2023 +............................. 445
775 FedEx Corp.,
3.50%, 04/01/2009............................... 745
1,975 Marriott International, Inc.,
6.20%, 06/15/2016............................... 1,995
813 Mashantucket Western Pequot Revenue Bond,
5.91%, 09/01/2021 (I)........................... 783
1,800 Time Warner Entertainment Co. L.P.,
8.38%, 07/15/2033............................... 2,193
</Table>
The accompanying notes are an integral part of these financial statements.
244
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
CORPORATE BONDS: INVESTMENT
GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 1,164 Viacom, Inc.,
5.75%, 04/30/2011............................... $ 1,165
3,250 Viacom, Inc.,
6.88%, 04/30/2036............................... 3,273
----------
12,660
----------
TECHNOLOGY -- 2.3%
895 America Movil S.A. de C.V.,
6.38%, 03/01/2035............................... 876
1,352 AT&T Corp.,
8.00%, 11/15/2031............................... 1,694
685 Bellsouth Capital Funding Corp.,
7.88%, 02/15/2030 (G)........................... 805
2,850 Cingular Wireless Services, Inc.,
8.75%, 03/01/2031............................... 3,734
1,241 Cisco Systems, Inc.,
5.50%, 02/22/2016............................... 1,255
3,391 Siemens Finance,
6.13%, 08/17/2026 (I)........................... 3,528
1,675 Sprint Capital Corp.,
8.75%, 03/15/2032............................... 2,069
685 TCI Communications, Inc.,
8.75%, 08/01/2015............................... 811
2,075 Tele-Communications, Inc.,
7.88%, 08/01/2013............................... 2,321
3,070 Telefonica Emisiones SAU,
6.42%, 06/20/2016............................... 3,182
----------
20,275
----------
TRANSPORTATION -- 0.5%
1,035 American Airlines, Inc.,
7.86%, 10/01/2011............................... 1,118
2,225 CSX Corp.,
6.75%, 03/15/2011............................... 2,349
745 Royal Caribbean Cruises Ltd.,
7.50%, 10/15/2027 (G)........................... 727
----------
4,194
----------
UTILITIES -- 2.4%
1,314 Carolina Power & Light Co.,
5.25%, 12/15/2015............................... 1,299
1,625 Centerpoint Energy, Inc.,
6.85%, 06/01/2015............................... 1,732
1,550 Commonwealth Edison Co.,
5.90%, 03/15/2036............................... 1,524
565 Detroit Edison Co.,
6.13%, 10/01/2010............................... 582
1,395 Duke Energy Corp.,
3.75%, 03/05/2008............................... 1,368
3,270 FPL Group Capital, Inc.,
6.35%, 10/01/2066............................... 3,340
1,960 Kinder Morgan Finance Co.,
5.70%, 01/05/2016............................... 1,816
1,170 Northern States Power Co.,
6.25%, 06/01/2036............................... 1,272
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
UTILITIES -- (CONTINUED)
$ 2,320 Ohio Edison Co.,
6.88%, 07/15/2036............................... $ 2,579
2,345 Oneok Partners L.P.,
6.65%, 10/01/2036............................... 2,413
1,310 PECO Energy Corp.,
5.95%, 10/01/2036............................... 1,347
630 Puget Sound Energy, Inc.,
7.96%, 02/22/2010............................... 679
850 Texas-New Mexico Power Co.,
6.13%, 06/01/2008............................... 855
250 Westar Energy, Inc.,
5.15%, 01/01/2017............................... 239
75 Westar Energy, Inc.,
6.00%, 07/01/2014 (G)........................... 77
----------
21,122
----------
Total corporate bonds: investment grade
(cost $178,642)................................. $ 181,515
----------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 9.0%
BASIC MATERIALS -- 1.1%
$ 1,810 Boise Cascade LLC,
7.13%, 10/15/2014............................... $ 1,706
2,000 Equistar Chemicals L.P.,
8.75%, 02/15/2009............................... 2,080
1,700 Goodyear Tire & Rubber Co.,
11.25%, 03/01/2011.............................. 1,870
1,900 Potlatch Corp.,
13.00%, 12/01/2009 (L).......................... 2,213
835 Vedanta Resources plc,
6.63%, 02/22/2010 (I)........................... 824
1,195 Verso Paper Holdings LLC,
11.38%, 08/01/2016 (I).......................... 1,213
----------
9,906
----------
CAPITAL GOODS -- 0.8%
1,830 Bombardier, Inc.,
6.30%, 05/01/2014 (I)........................... 1,679
1,670 Case Corp.,
7.25%, 01/15/2016............................... 1,680
1,219 L-3 Communications Corp.,
3.00%, 08/01/2035 +............................. 1,263
2,051 Xerox Corp.,
6.75%, 02/01/2017............................... 2,087
----------
6,709
----------
CONSUMER CYCLICAL -- 1.4%
1,975 ArvinMeritor, Inc.,
8.75%, 03/01/2012 (G)........................... 1,940
2,020 General Motors Corp.,
6.38%, 05/01/2008............................... 1,980
940 K Hovnanian Enterprises,
8.63%, 01/15/2017 (G)........................... 969
1,030 Neiman Marcus Group, Inc.,
10.38%, 10/15/2015 (G).......................... 1,127
1,510 Supervalu, Inc.,
7.50%, 11/15/2014............................... 1,536
</Table>
The accompanying notes are an integral part of these financial statements.
245
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT (B) VALUE (W)
- ----------- ----------
CORPORATE BONDS: NON-INVESTMENT
GRADE -- (CONTINUED)
CONSUMER CYCLICAL -- (CONTINUED)
$ 2,330 Technical Olympic USA, Inc.,
8.25%, 04/01/2011 (I)(G)........................ $ 2,202
2,035 Tenneco, Inc.,
8.63%, 11/15/2014 (G)........................... 2,050
----------
11,804
----------
CONSUMER STAPLES -- 0.1%
925 Dole Food Co., Inc.,
8.63%, 05/01/2009............................... 905
----------
ENERGY -- 0.1%
816 Chesapeake Energy Corp.,
2.75%, 11/15/2035 +............................. 883
200 Naftogaz Ukrainy,
8.13%, 09/30/2009............................... 193
----------
1,076
----------
FINANCE -- 1.5%
915 American Real Estate Partners L.P.,
7.13%, 02/15/2013............................... 913
1,710 Avis Budget Car Rental,
7.91%, 05/15/2014 (I)(L)........................ 1,672
2,640 Ford Motor Credit Co.,
7.38%, 02/01/2011............................... 2,522
2,660 Ford Motor Credit Co.,
9.82%, 04/15/2012 (L)........................... 2,774
5,010 General Motors Acceptance Corp.,
6.88%, 09/15/2011............................... 5,044
----------
12,925
----------
FOREIGN GOVERNMENTS -- 0.2%
BRL 1,875 Brazil (Republic of),
12.50%, 01/05/2022.............................. 860
860 Turkey (Republic of),
7.00%, 09/26/2016 (Q)........................... 864
----------
1,724
----------
HEALTH CARE -- 0.2%
2,200 HCA, Inc.,
7.88%, 02/01/2011............................... 2,112
----------
SERVICES -- 0.9%
3,850 Dex Media West LLC,
9.88%, 08/15/2013............................... 4,182
1,680 EchoStar DBS Corp.,
6.38%, 10/01/2011............................... 1,663
1,720 SunGard Data Systems, Inc.,
9.13%, 08/15/2013............................... 1,785
----------
7,630
----------
TECHNOLOGY -- 2.5%
1,175 Advanced Micro Devices, Inc.,
7.75%, 11/01/2012............................... 1,196
1,870 Citizens Communications Co.,
9.00%, 08/15/2031............................... 2,033
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
TECHNOLOGY -- (CONTINUED)
$ 640 CSC Holdings, Inc.,
8.13%, 07/15/2009............................... $ 660
1,085 Dobson Cellular Systems,
8.38%, 11/01/2011 (I)........................... 1,127
2,000 Intelsat Bermuda Ltd.,
9.25%, 06/15/2016 (I)........................... 2,135
2,175 Level 3 Financing, Inc.,
9.25%, 11/01/2014 (I)........................... 2,189
2,035 Nortel Networks Ltd.,
9.62%, 07/15/2011 (I)(L)........................ 2,101
1,105 NXP B.V.,
8.12%, 10/15/2013 (I)(L)(G)..................... 1,115
1,980 Panamsat Corp.,
9.00%, 06/15/2016 (I)........................... 2,069
1,750 Qwest Communications International, Inc.,
7.50%, 02/15/2014............................... 1,785
625 Qwest Corp.,
7.88%, 09/01/2011............................... 664
203 SanDisk Corp.,
1.00%, 05/15/2013 (G)+.......................... 184
1,575 Seagate Technology Holdings,
6.80%, 10/01/2016............................... 1,553
810 Vimpel Communications,
8.25%, 05/23/2016 (I)........................... 839
1,940 Windstream Corp.,
8.63%, 08/01/2016 (I)........................... 2,093
----------
21,743
----------
UTILITIES -- 0.2%
1,975 NRG Energy, Inc.,
7.38%, 02/01/2016............................... 1,996
----------
Total corporate bonds: non-investment grade
(cost $77,281).................................. $ 78,530
----------
SENIOR FLOATING RATE INTERESTS: NON-INVESTMENT GRADE (V) -- 4.8%
BASIC MATERIALS -- 0.7%
$ 1,385 Compass Minerals Group, Inc.,
6.88%, 12/22/2012 (N)(Q)........................ $ 1,384
2,693 Georgia-Pacific Corp.,
7.36%, 02/14/2013 (N)........................... 2,706
1,863 Huntsman International, Inc.,
7.07%, 08/16/2012 (N)(Q)........................ 1,861
----------
5,951
----------
CONSUMER CYCLICAL -- 0.3%
354 Invista B.V., Term Loan Tranche B-1,
6.88%, 04/30/2010 (AA)(Q)....................... 355
355 Invista B.V., Term Loan Tranche B-2,
6.88%, 04/30/2010 (AA)(Q)....................... 356
</Table>
The accompanying notes are an integral part of these financial statements.
246
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
SENIOR FLOATING RATE INTERESTS: NON-INVESTMENT GRADE -- (CONTINUED)
CONSUMER CYCLICAL -- (CONTINUED)
$ 1,049 Supervalu, Inc.,
7.17%, 05/30/2013 (N)........................... $ 1,052
532 William Carter Co.,
6.86%, 07/14/2012 (AA)(Q)....................... 531
----------
2,294
----------
FINANCE -- 1.0%
2,545 Ameritrade Holding Corp.,
6.82%, 12/31/2011 (N)........................... 2,543
2,629 General Growth Properties,
6.62%, 02/24/2010 (N)........................... 2,610
960 Nasdaq Stock Market, Inc., Term Loan C,
7.06%, 05/22/2012 (N)........................... 960
1,987 Nasdaq Stock Market, Inc., Term Loan B,
7.06%, 05/22/2012 (N)........................... 1,987
----------
8,100
----------
HEALTH CARE -- 0.8%
1,602 Community Health Systems,
7.14%, 08/19/2011 (N)........................... 1,601
2,538 Fresenius Medical Care AG,
6.79%, 03/23/2012 (N)........................... 2,518
1,400 HCA, Inc.,
9.37%, 09/15/2007 (AA)(Q)....................... 1,386
1,858 Lifepoint Hospitals, Inc.,
6.98%, 04/15/2012 (AA).......................... 1,850
----------
7,355
----------
SERVICES -- 1.4%
970 Allied Waste,
7.07%, 01/15/2012 (N)........................... 970
2,445 Allied Waste,
7.17%, 01/15/2012 (N)........................... 2,444
1,224 Gray Television, Inc.,
6.86%, 11/22/2012 (N)(Q)........................ 1,222
2,927 MGM Mirage, Inc.,
6.59%, 10/03/2011 (N)........................... 2,894
2,720 Regal Cinemas, Inc.,
7.12%, 11/10/2010 (N)(Q)........................ 2,714
931 UPC Financing Partnership,
7.62%, 03/31/2013 (N)(Q)........................ 931
931 UPC Financing Partnership,
7.62%, 12/31/2013 (N)(Q)........................ 930
----------
12,105
----------
TECHNOLOGY -- 0.4%
710 Cincinnati Bell, Inc.,
6.92%, 08/31/2012 (N)........................... 709
754 Mediacom Broadband,
7.08%, 01/31/2015 (AA)(Q)....................... 752
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
TECHNOLOGY -- (CONTINUED)
$ 1,763 Mediacom Broadband,
7.41%, 01/31/2015 (N)(Q)........................ $ 1,747
443 Mediacom LLC,
7.23%, 01/31/2015 (N)........................... 443
----------
3,651
----------
UTILITIES -- 0.2%
963 Mirant North America LLC,
7.07%, 01/03/2013 (N)........................... 961
710 NRG Energy, Inc.,
7.32%, 01/27/2013 (AA)(Q)....................... 714
355 Pike Electric, Inc.,
6.88%, 07/01/2012 (AA)(Q)....................... 354
----------
2,029
----------
Total senior floating rate interests:
non-investment grade
(cost $41,538).................................. $ 41,485
----------
U.S. GOVERNMENT AGENCIES -- 26.8%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 7.0%
$ 3,800 4.10% 2014........................................ $ 3,708
12,153 4.50% 2018........................................ 11,768
3,020 5.04% 2035........................................ 2,984
3,554 5.33% 2036........................................ 3,531
1,036 5.45% 2036........................................ 1,032
3,170 5.46% 2036........................................ 3,157
13,210 5.48% 2036........................................ 13,164
3,355 5.50% 2033 -- 2034................................ 3,327
3,259 5.58% 2036........................................ 3,270
15,372 6.00% 2032 -- 2035................................ 15,499
----------
61,440
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 14.7%
9,247 4.50% 2035........................................ 8,679
746 4.69% 2034........................................ 731
1,863 4.71% 2035........................................ 1,823
895 4.72% 2035........................................ 879
2,319 4.79% 2035........................................ 2,273
1,109 4.88% 2035........................................ 1,096
802 4.91% 2035........................................ 790
1,967 4.94% 2035........................................ 1,939
37,826 5.00% 2018 -- 2036 (Q)............................ 37,054
1,297 5.09% 2035........................................ 1,277
32,774 5.50% 2017 -- 2033 (Q)............................ 32,688
35,844 6.00% 2013 -- 2036 (Q)............................ 36,085
1,446 6.50% 2031 -- 2036 (Q)............................ 1,475
421 7.50% 2029 -- 2031................................ 439
----------
127,228
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 3.1%
5,392 5.50% 2033 -- 2035................................ 5,376
17,650 6.00% 2032 -- 2036................................ 17,852
3,973 6.50% 2028 -- 2032................................ 4,095
----------
27,323
----------
</Table>
The accompanying notes are an integral part of these financial statements.
247
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
U.S. GOVERNMENT AGENCIES -- (CONTINUED)
OTHER GOVERNMENT AGENCIES -- 2.0%
$ 2,063 5.37% 2026........................................ $ 2,075
2,284 5.54% 2026........................................ 2,319
1,899 5.57% 2026........................................ 1,932
1,869 5.64% 2026........................................ 1,912
2,208 5.70% 2026........................................ 2,261
1,779 5.82% 2026........................................ 1,832
1,792 5.87% 2026........................................ 1,850
1,585 6.07% 2026........................................ 1,653
1,809 6.14% 2022........................................ 1,869
----------
17,703
----------
Total U.S. government agencies
(cost $235,000)................................. $ 233,694
----------
U.S. GOVERNMENT SECURITIES -- 11.3%
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.3%
$ 8,800 Tennessee Valley Authority,
4.75%, 11/01/2025 (M)........................... $ 2,233
250 Federal Home Loan Bank,
6.05%, 02/20/2007 (L)........................... 248
----------
2,481
----------
U.S. TREASURY SECURITIES -- 11.0%
3,492 3.38% 2007 (O)(G)................................. 4,441
5,909 4.50% 2011 (G).................................... 5,888
7,045 4.50% 2036 (G).................................... 6,801
2,430 4.63% 2011........................................ 2,436
40,121 4.88% 2009 -- 2016 (G)............................ 40,936
7,315 5.00% 2008 (G).................................... 7,346
27,270 5.125% 2011 (G)................................... 27,887
----------
95,735
----------
Total U.S. government securities
(cost $97,861).................................. $ 98,216
----------
Total long-term securities
(cost $767,277)................................. $ 770,438
----------
SHORT-TERM INVESTMENTS -- 30.2%
CONSUMER STAPLES -- 0.9%
$ 8,000 Cargill, Inc.,
5.24%, 11/10/2006............................... $ 7,989
----------
FINANCE -- 5.1%
8,000 American General Finance,
5.24%, 11/17/2006............................... 7,981
6,000 Bank of America Corp.,
5.24%, 11/03/2006............................... 5,997
8,000 Bear Stearns Co.,
5.24%, 11/13/2006............................... 7,985
8,000 Deutsche Bank,
5.25%, 11/13/2006............................... 7,985
8,000 General Electric Capital Corp.,
5.23%, 11/13/2006............................... 7,985
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ----------
FINANCE -- (CONTINUED)
$ 6,000 Morgan Stanley,
5.25%, 11/14/2006............................... $ 5,988
802 State Street Bank Money Market Fund............... 802
----------
44,723
----------
REPURCHASE AGREEMENTS -- 13.0%
37,426 BNP Paribas Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 37,426
38,375 RBS Greenwich Joint Repurchase Agreement,
5.24%, 11/01/2006............................... 38,375
37,426 UBS Securities LLC Repurchase Agreement,
5.24%, 11/01/2006............................... 37,426
----------
113,227
----------
<Caption>
SHARES
- -----------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 11.1%
96,732 Navigator Prime Portfolio,
5.26% (L)....................................... $ 96,732
----------
<Caption>
PRINCIPAL
AMOUNT
- -----------
U.S. TREASURY BILL -- 0.1%
$ 650 U.S. Treasury Bill,
4.83%, 12/14/2006 (M)(S)........................ 646
----------
Total short-term investments
(cost $263,317)................................. $ 263,317
----------
Total investments in securities
(cost $1,030,594) (C)........................... $1,033,755
==========
</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 7.04% of total net assets at October 31, 2006.
(B) All principal amounts are in U.S. dollars unless otherwise
indicated.
<Table>
BRL -- Brazilian Real
JPY -- Japanese Yen
</Table>
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $1,030,872 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $ 7,868
Unrealized depreciation......................... (4,985)
-------
Net unrealized appreciation..................... $ 2,883
=======
</Table>
(G) Security is partially on loan at October 31, 2006.
(H) The following securities are considered illiquid. Illiquid securities are
often purchased in private placement transactions, are not registered under
the Securities Act of 1933 and may have contractual restrictions on
resale. A security may also be considered illiquid if the security
The accompanying notes are an integral part of these financial statements.
248
- --------------------------------------------------------------------------------
lacks a readily available market or if its valuation has not changed for a
certain period of time.
<Table>
<Caption>
PERIOD COST
ACQUIRED PAR SECURITY BASIS
-------- --- -------- -----
4/2005 $12,535 Morgan Stanley $--
Dean Witter Capital I,
0.46%, 08/25/2023 - 144A
4/2005 - 8/2006 5,557 Morgan Stanley 86
Dean Witter Capital I,
8.05%, 08/25/2032 - Reg D
</Table>
The aggregate value of these securities at October 31, 2006 was
$68, which represents 0.01% of total net assets.
(I) 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 qualified institutional
buyers. 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, 2006, was $71,695, which represents 8.22% of
total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(N) The interest rate disclosed for these securities represents the
effective yield as of October 31, 2006.
(O) U.S. Treasury inflation-protection securities (TIPS) are securities
in which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
(S) Security pledged as initial margin deposit for open futures
contracts at October 31, 2006.
(P) The interest rates disclosed for interest only strips represent
effective yields based upon estimated future cash flows at October 31,
2006.
(AA) The interest rate disclosed for these securities represents an
estimated yield as of October 31, 2006.
(Q) The cost of securities purchased on a when-issued or delayed
delivery basis at October 31, 2006 was $80,000.
(V) Senior loans in which the Fund invests generally pay interest at
rates which are periodically adjusted by reference to a base short-term,
floating lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as the London Inter-Bank Offered Rate (LIBOR), (ii) the prime
rate offered by one or more major United States Banks, or (iii) the bank's
certificate of deposit rate. Senior floating rate interests often require
prepayments from excess cash flows or permit the borrower to repay at its
election. The rate at which the borrower repays cannot be predicted with
accuracy. As a result, the actual remaining maturity may be substantially
less than the stated maturities shown. The interest rate indicated is the
rate in effect at October 31, 2006.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
+ Convertible debt security.
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
- ----------- --------- -------- ------------- --------------
U.S. 2 Year Treasury Note futures contracts 196 Long December 2006 $ 279
U.S. 5 Year Treasury Note futures contracts 306 Long December 2006 91
U.S. Long Bond futures contracts 189 Short December 2006 (370)
-----
$ --
=====
</Table>
These contracts had a market value of $93,658 as of October 31, 2006.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION TRANSACTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ----------- ------ -------- ---------- --------------
Japanese Yen Buy $4,295 $4,296 11/07/2006 $ (1)
Japanese Yen Sell 8,637 8,556 11/07/2006 (81)
----
$(82)
====
</Table>
The accompanying notes are an integral part of these financial statements.
249
THE HARTFORD U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES -- 5.1%
FINANCE -- 5.1%
$ 2,000 Countrywide Asset-Backed Certificates,
5.76%, 09/01/2036............................... $ 2,010
2,000 Countrywide Asset-Backed Certificates,
5.80%, 07/25/2034............................... 1,996
4,000 Merrill Lynch/Countrywide Commercial Mortgage
Trust,
5.46%, 07/12/2046 (L)........................... 4,027
1,979 Spirit Master Funding LLC,
5.76%, 03/20/2024 (I)........................... 1,986
--------
Total asset & commercial mortgage backed
securities
(cost $10,001).................................. $ 10,019
--------
U.S. GOVERNMENT SECURITIES -- 10.4%
OTHER DIRECT FEDERAL OBLIGATIONS -- 3.9%
FEDERAL HOME LOAN BANK:
$ 1,000 4.88%, 11/18/2011................................. $ 1,000
6,650 5.125% 2013....................................... 6,716
--------
7,716
--------
U.S. TREASURY SECURITIES -- 6.5%
U.S. TREASURY NOTES:
3,000 4.75% 2011........................................ 3,020
9,690 4.875% 2009 -- 2016 (G)........................... 9,813
--------
12,833
--------
Total U.S. government securities
(cost $20,377).................................. $ 20,549
--------
U.S. GOVERNMENT AGENCIES -- 82.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 30.0%
MORTGAGE BACKED SECURITIES:
$ 1,298 6.00% 2032........................................ $ 1,311
71 7.00% 2029 -- 2031................................ 74
105 9.00% 2022........................................ 113
61 11.50% 2015 -- 2019............................... 65
46 11.75% 2010 -- 2011............................... 50
15 12.50% 2019....................................... 16
--------
1,629
--------
NOTES:
7,860 5.00% 2010........................................ 7,880
3,000 5.125% 2011....................................... 3,030
9,292 6.00% 2017........................................ 9,469
--------
20,379
--------
REMIC -- PAC'S:
36,644 6.00% 2031 -- 2032................................ 37,263
--------
59,271
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 40.6%
MORTGAGE BACKED SECURITIES:
$11,535 5.48% 2036........................................ 11,499
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- (CONTINUED)
12,688 5.50% 2015 -- 2036................................ $ 12,550
2,164 5.85% 2009........................................ 2,175
22,290 6.00% 2016 -- 2036................................ 22,445
1,300 6.01% 2009........................................ 1,313
1,027 6.36% 2008........................................ 1,032
837 6.50% 2013 -- 2015................................ 855
5,412 6.52% 2008........................................ 5,430
85 7.50% 2030........................................ 89
22 8.00% 2025........................................ 23
50 8.50% 2022........................................ 53
40 9.00% 2020........................................ 44
13 9.75% 2020........................................ 14
113 10.00% 2020....................................... 124
37 10.50% 2012 -- 2018............................... 41
8 10.75% 2013....................................... 9
176 11.00% 2015 -- 2020............................... 192
34 11.25% 2013....................................... 35
8 11.50% 2015....................................... 8
20 12.00% 2014....................................... 22
64 12.50% 2015....................................... 71
--------
58,024
--------
NOTES:
9,000 5.05% 2009........................................ 8,985
10,500 6.25% 2029........................................ 12,038
--------
21,023
--------
REMIC-PAC'S:
1,233 6.50% 2012........................................ 1,253
--------
80,300
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 2.6%
MORTGAGE BACKED SECURITIES:
450 6.00% 2034........................................ 455
3,850 6.50% 2031 -- 2032................................ 3,964
50 7.00% 2030........................................ 51
115 8.00% 2022........................................ 121
412 9.50% 2016 -- 2019................................ 448
28 11.00% 2015 -- 2018............................... 30
--------
5,069
--------
OTHER GOVERNMENT AGENCIES -- 9.7%
SMALL BUSINESS ADMINISTRATION PARTICIPATION
CERTIFICATES:
1,448 5.37% 2026........................................ 1,457
1,507 5.54% 2026........................................ 1,530
2,941 5.66% 2022........................................ 2,995
1,920 5.70% 2026........................................ 1,966
2,737 5.82% 2026........................................ 2,820
2,812 5.98% 2022........................................ 2,884
</Table>
The accompanying notes are an integral part of these financial statements.
250
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- --------- ---------
U.S. GOVERNMENT AGENCIES -- (CONTINUED)
OTHER GOVERNMENT AGENCIES -- (CONTINUED)
$ 2,439 6.07% 2026........................................ $ 2,544
2,836 6.14% 2022........................................ 2,929
--------
19,125
--------
Total U.S. government agencies
(cost $162,142)................................. $163,765
--------
Total long-term investments
(cost $192,520)................................. $194,333
--------
SHORT-TERM INVESTMENTS -- 5.1%
REPURCHASE AGREEMENTS -- 1.2%
$ 811 BNP Paribas Repurchase Agreement,
5.24%, 11/01/2006............................... $ 811
831 RBS Greenwich Repurchase Agreement,
5.24%, 11/01/2006............................... 831
811 UBS Securities LLC Repurchase Agreement,
5.24%, 11/01/2006............................... 811
--------
2,453
--------
U.S. TREASURY BILL -- 0.2%
350 U.S. Treasury Bill,
4.77%, 12/14/2006 (M)(S)........................ 348
--------
</Table>
<Table>
<Caption>
SHARES
- ---------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 3.7%
7,287 BNY Institutional Cash Reserve Fund,
5.31% (L)....................................... $ 7,287
--------
Total short-term investments
(cost $10,088).................................. $ 10,088
--------
Total investments in securities
(cost $202,608) (C)............................. $204,421
========
</Table>
Note: Percentage of investments as shown is the ratio of the total market value
to total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $202,617 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation.......................... $2,136
Unrealized depreciation.......................... (332)
------
Net unrealized appreciation...................... $1,804
======
</Table>
(G) Security is partially on loan at October 31, 2006.
(I) 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 qualified institutional
buyers. 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, 2006, was $1,986, which represents 1.01% of
total net assets.
(L) Variable rate securities; the rate reported is the coupon rate in
effect at October 31, 2006.
(M) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(S) Security pledged as initial margin deposit for open
futures contracts at October 31, 2006.
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2006
<Table>
<Caption>
UNREALIZED
NUMBER OF APPRECIATION
DESCRIPTION CONTRACTS POSITION EXPIRATION (DEPRECIATION)
- ----------- --------- -------- --------------- --------------
CBT 5 Year U.S.
Treasury Note
futures contracts 158 Long December 2006 $38
===
</Table>
These contracts had a market value of $16,679 as of October 31, 2006.
The accompanying notes are an integral part of these financial statements.
251
THE HARTFORD VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 98.0%
BASIC MATERIALS -- 5.1%
27 Alcoa, Inc. ...................................... $ 786
51 Cameco Corp. ..................................... 1,788
40 Dow Chemical Co. ................................. 1,640
48 E.I. DuPont de Nemours & Co. ..................... 2,208
21 Kimberly-Clark Corp. ............................. 1,424
16 Precision Castparts Corp. ........................ 1,103
--------
8,949
--------
CAPITAL GOODS -- 6.9%
41 American Standard Cos., Inc. ..................... 1,811
71 Applied Materials, Inc. .......................... 1,236
24 Deere & Co. ...................................... 2,001
41 Goodrich Corp. ................................... 1,799
29 National Oilwell Varco, Inc. (D).................. 1,770
41 Pitney Bowes, Inc. ............................... 1,896
19 Textron, Inc. .................................... 1,709
--------
12,222
--------
CONSUMER CYCLICAL -- 6.6%
35 Altria Group, Inc. ............................... 2,814
23 D.R. Horton, Inc. ................................ 532
43 Federated Department Stores, Inc. ................ 1,893
69 Gap, Inc. ........................................ 1,457
40 McDonald's Corp. ................................. 1,681
100 Safeway, Inc. .................................... 2,942
8 Supervalu, Inc. .................................. 257
--------
11,576
--------
CONSUMER STAPLES -- 4.3%
37 Campbell Soup Co. ................................ 1,372
49 Kellogg Co. ...................................... 2,470
60 PepsiCo, Inc. .................................... 3,787
--------
7,629
--------
ENERGY -- 8.2%
26 Chevron Corp. .................................... 1,754
102 Exxon Mobil Corp. ................................ 7,292
32 GlobalSantaFe Corp. .............................. 1,650
79 Occidental Petroleum Corp. ....................... 3,694
--------
14,390
--------
FINANCE -- 29.6%
32 ACE Ltd. ......................................... 1,809
38 Aetna, Inc. ...................................... 1,558
49 Allstate Corp. ................................... 3,025
39 American International Group, Inc. ............... 2,613
137 Bank of America Corp. ............................ 7,391
49 Bank of New York Co., Inc. ....................... 1,691
46 Chubb Corp. ...................................... 2,466
118 Citigroup, Inc. .................................. 5,899
18 Goldman Sachs Group, Inc. ........................ 3,492
131 Host Hotels & Resorts, Inc. ...................... 3,015
47 JP Morgan Chase & Co. ............................ 2,216
12 Merrill Lynch & Co., Inc. ........................ 1,014
21 PNC Financial Services Group, Inc. ............... 1,499
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
54 State Street Corp. ............................... $ 3,481
16 SunTrust Banks, Inc. ............................. 1,248
35 UBS AG............................................ 2,070
56 US Bancorp........................................ 1,878
39 Wachovia Corp. ................................... 2,182
21 WellPoint, Inc. (D)............................... 1,618
57 Wells Fargo & Co. ................................ 2,050
--------
52,215
--------
HEALTH CARE -- 9.1%
34 Abbott Laboratories............................... 1,601
51 Baxter International, Inc. ....................... 2,335
86 Boston Scientific Corp. (D)....................... 1,368
29 Bristol-Myers Squibb Co. ......................... 720
153 CVS Corp. ........................................ 4,811
70 Pfizer, Inc. ..................................... 1,872
66 Wyeth............................................. 3,353
--------
16,060
--------
SERVICES -- 3.0%
37 Comcast Corp. Class A (D)......................... 1,517
339 Sun Microsystems, Inc. (D)........................ 1,839
93 Time Warner, Inc. ................................ 1,869
--------
5,225
--------
TECHNOLOGY -- 17.3%
147 AT&T, Inc. ....................................... 5,020
25 Beckman Coulter, Inc. ............................ 1,428
135 BellSouth Corp. .................................. 6,102
76 Cisco Systems, Inc. (D)........................... 1,829
237 EMC Corp. (D)..................................... 2,908
137 General Electric Co. ............................. 4,796
48 Hewlett-Packard Co. .............................. 1,844
81 Motorola, Inc. ................................... 1,870
67 Sprint Nextel Corp. .............................. 1,248
95 Verizon Communications, Inc. ..................... 3,515
--------
30,560
--------
TRANSPORTATION -- 3.5%
52 AMR Corp. (D)..................................... 1,465
51 General Dynamics Corp. ........................... 3,598
78 Southwest Airlines Co. ........................... 1,165
--------
6,228
--------
UTILITIES -- 4.4%
25 Dominion Resources, Inc. ......................... 2,037
9 Entergy Corp. .................................... 755
37 Exelon Corp. ..................................... 2,281
29 FPL Group, Inc. .................................. 1,499
31 SCANA Corp. ...................................... 1,253
--------
7,825
--------
Total common stock
(cost $147,128)................................. $172,879
--------
</Table>
The accompanying notes are an integral part of these financial statements.
252
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE (W)
- ----------- ---------
SHORT-TERM INVESTMENTS -- 2.5%
REPURCHASE AGREEMENTS -- 2.5%
$ 883 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 883
519 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 519
21 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 21
416 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 416
873 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 873
478 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 478
1,174 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 1,174
---------
Total short-term investments
(cost $4,364)................................... $ 4,364
---------
Total investments in securities
(cost $151,492) (C)............................. $ 177,243
=========
</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 2.19% of total net assets at October 31, 2006.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $151,645 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $26,504
Unrealized depreciation......................... (906)
-------
Net unrealized appreciation..................... $25,598
=======
</Table>
(D) Currently non-income producing.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
253
THE HARTFORD VALUE OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- 98.5%
BASIC MATERIALS -- 9.3%
206 Alcoa, Inc. ...................................... $ 5,950
90 Arch Coal, Inc. .................................. 3,106
38 Celanese Corp. ................................... 775
42 Century Aluminum Co. (D).......................... 1,623
206 Chemtura Corp. ................................... 1,763
43 Cytec Industries, Inc. ........................... 2,382
39 E.I. DuPont de Nemours & Co. ..................... 1,763
11 FMC Corp. (D)..................................... 768
33 Martin Marietta Materials, Inc. .................. 2,913
32 Michelin (C.G.D.E.) Class B (A)................... 2,583
43 Owens-Illinois, Inc. (D).......................... 706
146 Smurfit-Stone Container Corp. (D)................. 1,554
50 Temple-Inland, Inc. .............................. 1,956
--------
27,842
--------
CAPITAL GOODS -- 5.3%
26 Alliant Techsystems, Inc. (D)..................... 1,992
34 Deere & Co. ...................................... 2,920
174 Goodrich Corp. ................................... 7,658
30 Kennametal, Inc. ................................. 1,851
42 Varian Semiconductor Equipment Associates, Inc.
(D)............................................. 1,523
--------
15,944
--------
CONSUMER CYCLICAL -- 7.2%
155 American Axle & Manufacturing Holdings, Inc. ..... 2,904
310 Foot Locker, Inc. ................................ 7,187
75 Lear Corp. (G).................................... 2,269
199 Ruby Tuesday, Inc. ............................... 5,511
97 TRW Automotive Holdings Corp. (D)................. 2,483
27 Walter Industries (G)............................. 1,246
--------
21,600
--------
CONSUMER STAPLES -- 1.3%
34 Avon Products, Inc. .............................. 1,028
120 Unilever N.V. NY Shares........................... 2,897
--------
3,925
--------
ENERGY -- 9.3%
73 Exxon Mobil Corp. ................................ 5,235
35 GlobalSantaFe Corp. .............................. 1,801
22 Marathon Oil Corp. ............................... 1,935
43 Noble Corp. ...................................... 3,007
62 Noble Energy, Inc. ............................... 2,991
197 Talisman Energy, Inc. ............................ 3,259
101 Total S.A. ADR.................................... 6,858
110 UGI Corp. ........................................ 2,920
--------
28,006
--------
FINANCE -- 28.3%
161 ACE Ltd. ......................................... 9,240
71 Aetna, Inc. ...................................... 2,943
53 Allstate Corp. ................................... 3,234
32 AMBAC Financial Group, Inc. ...................... 2,647
54 American International Group, Inc. ............... 3,641
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
FINANCE -- (CONTINUED)
338 Apollo Investment Corp. .......................... $ 7,295
281 Bank of America Corp. ............................ 15,125
106 Capital One Financial Corp. ...................... 8,369
35 CIT Group, Inc. .................................. 1,817
81 Citigroup, Inc. .................................. 4,086
140 E*Trade Financial Corp. (D)....................... 3,257
44 Everest Re Group Ltd. ............................ 4,354
134 KKR Financial Corp. .............................. 3,587
97 Platinum Underwriters Holdings Ltd. .............. 2,893
211 Royal Bank of Scotland Group plc (A).............. 7,522
46 UBS AG............................................ 2,747
134 UnumProvident Corp. .............................. 2,643
--------
85,400
--------
HEALTH CARE -- 7.7%
29 Astellas Pharma, Inc. (A)......................... 1,306
127 Boston Scientific Corp. (D)....................... 2,025
65 Bristol-Myers Squibb Co. ......................... 1,609
68 Cooper Companies, Inc. ........................... 3,913
154 Impax Laboratories, Inc. (D)...................... 1,077
38 Sanofi-Aventis S.A. (A)........................... 3,251
104 Sanofi-Aventis S.A. ADR........................... 4,431
106 Wyeth............................................. 5,394
--------
23,006
--------
SERVICES -- 7.4%
43 Avid Technology, Inc. (D)......................... 1,535
65 Comcast Corp. Class A (D)......................... 2,631
169 Comcast Corp. Special Class A (D)................. 6,857
89 Entercom Communications Corp. .................... 2,457
33 Liberty Global, Inc. (D).......................... 854
55 Liberty Global, Inc. Class C (D).................. 1,390
57 R.H. Donnelley Corp. (G).......................... 3,439
355 Unisys Corp. (D).................................. 2,322
19 Viacom, Inc. Class B (D).......................... 736
--------
22,221
--------
TECHNOLOGY -- 18.3%
112 Arrow Electronics, Inc. (D)....................... 3,352
323 Cinram International Income Fund.................. 6,380
426 Cisco Systems, Inc. (D)........................... 10,282
11 Embarq Corp. ..................................... 516
70 Fairchild Semiconductor International, Inc. (D)... 1,123
265 Flextronics International Ltd. (D)................ 3,074
170 Microsoft Corp. .................................. 4,889
78 NCR Corp. (D)..................................... 3,239
277 Powerwave Technologies, Inc. (D)(G)............... 1,802
63 QLogic Corp. (D).................................. 1,303
177 Sprint Nextel Corp. .............................. 3,300
152 Symantec Corp. (D)................................ 3,008
62 Tektronix, Inc. .................................. 1,874
124 Telefonaktiebolaget LM Ericsson ADR............... 4,678
117 Tyco International Ltd. .......................... 3,429
75 Verizon Communications, Inc. ..................... 2,757
--------
55,006
--------
</Table>
The accompanying notes are an integral part of these financial statements.
254
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE (W)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- 4.4%
199 UAL Corp. (D)..................................... $ 7,163
21 US Airways Group, Inc. (D)........................ 1,062
81 US Airways Group, Inc. (D) (I).................... 4,015
24 YRC Worldwide, Inc. (D)........................... 945
--------
13,185
--------
Total common stock
(cost $260,227)................................. $296,135
--------
PRINCIPAL
AMOUNT
------
SHORT-TERM INVESTMENTS -- 3.7%
REPURCHASE AGREEMENTS -- 1.3%
$ 819 Bank of America Securities TriParty Joint
Repurchase Agreement,
5.31%, 11/01/2006............................... $ 819
482 Credit Suisse Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 482
19 Deutsche Bank Securities Joint Repurchase
Agreement,
5.25%, 11/01/2006............................... 19
385 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.30%, 11/01/2006............................... 385
809 Deutsche Bank Securities TriParty Joint Repurchase
Agreement,
5.32%, 11/01/2006............................... 809
443 Morgan Stanley & Co., Inc. TriParty Joint
Repurchase Agreement,
5.29%, 11/01/2006............................... 443
1,088 UBS Securities TriParty Joint Repurchase
Agreement,
5.31%, 11/01/2006............................... 1,088
--------
4,045
--------
MARKET
SHARES VALUE (W)
------ --------
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITY
LENDING -- 2.4%
7,150 BNY Institutional Cash Reserve Fund............... $ 7,150
--------
Total short-term investments
(cost $11,195).................................. $ 11,195
--------
Total investments in securities
(cost $271,422) (C)............................. $307,330
========
</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 15.27% of total net assets at October 31, 2006.
(A) The aggregate value of securities valued in good faith at fair value
by, or under the direction of, the Funds' Board of Directors at October
31, 2006, was $14,662, which represents 4.88% of total net assets.
(C) At October 31, 2006, the cost of securities for federal income tax
purposes was $271,949 and the aggregate gross unrealized appreciation and
depreciation based on that cost were:
<Table>
Unrealized appreciation......................... $39,414
Unrealized depreciation......................... (4,033)
-------
Net unrealized appreciation..................... $35,381
=======
</Table>
(D) Currently non-income producing.
(G) Security is partially on loan at October 31, 2006.
(I) 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 qualified institutional
buyers. 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, 2006, was $4,015, which represents 1.33% of
total net assets.
(W) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
255
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2006 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
AGGRESSIVE
ADVISERS GROWTH ALLOCATION
FUND FUND
------------- -----------------
ASSETS:
Investments in securities, at value; (amortized cost for
Money Market)@........................................... $ 1,916,372 $ 201,406*
Cash+...................................................... 412 --
Foreign currency on deposit with custodian#................ -- --
Unrealized appreciation in forward foreign currency
contracts................................................ 27 --
Receivables:
Investment securities sold............................... 20,819 --
Fund shares sold......................................... 484 402
Dividends and interest................................... 6,144 --
Variation margin......................................... -- --
Other assets............................................... 67 49
------------- -------------
Total assets................................................ 1,944,325 201,857
------------- -------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft -- U.S. Dollars............................. -- --
Bank overdraft -- foreign cash............................. -- --
Payable upon return of securities loaned (Note 2d)......... 213,868 --
Payables:
Investment securities purchased.......................... 36,138 16
Fund shares redeemed..................................... 4,049 322
Investment advisory and management fees (Note 3)......... 174 7
Dividends................................................ -- --
Distribution fees (Note 3)............................... 138 18
Variation margin......................................... -- --
Accrued expenses........................................... 572 54
Other liabilities.......................................... -- --
Written options............................................ -- --
------------- -------------
Total liabilities........................................... 254,939 417
------------- -------------
Net assets.................................................. $ 1,689,386 $ 201,440
============= =============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 1,611,961 $ 175,275
Accumulated undistributed (distribution in excess of) net
investment income (loss)................................... 3,002 --
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. (788) 4,105
Unrealized appreciation (depreciation) of investments and
the translations of assets and liabilities denominated in
foreign currency........................................... 75,211 22,060
------------- -------------
Net assets.................................................. $ 1,689,386 $ 201,440
============= =============
Shares authorized........................................... 910,000 500,000
------------- -------------
Par value................................................... 0.001 0.001
------------- -------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $16.74/$17.71 $13.21/$13.98
------------- -------------
Shares outstanding................................... 66,344 8,793
------------- -------------
Net assets........................................... $ 1,110,324 $ 116,198
------------- -------------
CLASS B: Net asset value per share.......................... $ 16.57 $ 13.10
------------- -------------
Shares outstanding................................... 20,631 2,541
------------- -------------
Net assets........................................... $ 341,772 $ 33,295
------------- -------------
CLASS C: Net asset value per share.......................... $ 16.73 $ 13.10
------------- -------------
Shares outstanding................................... 13,127 3,965
------------- -------------
Net assets........................................... $ 219,580 $ 51,936
------------- -------------
CLASS E: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS H: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS I: Net asset value per share/Maximum offering price
per share.......................................... $ -- $ 13.22
------------- -------------
Shares outstanding................................... -- 1
------------- -------------
Net assets........................................... $ -- $ 11
------------- -------------
CLASS L: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS M: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS N: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS Y: Net asset value per share.......................... $ 16.91 $ --
------------- -------------
Shares outstanding................................... 1,048 --
------------- -------------
Net assets........................................... $ 17,710 $ --
------------- -------------
CLASS Z: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
@ Cost of securities........................................ $ 1,841,178 $ 179,346
------------- -------------
@ Market value of securities on loan........................ $ 209,820 $ --
------------- -------------
+ Cash held as collateral on loaned securities.............. $ 1 $ --
------------- -------------
# Cost of foreign currency on deposit with custodian........ $ -- $ --
------------- -------------
</Table>
* Relates to investments in affiliated investment companies.
The accompanying notes are an integral part of these financial statements.
256
- --------------------------------------------------------------------------------
<Table>
<Caption>
BALANCED CAPITAL CAPITAL CONSERVATIVE DIVIDEND EQUITY
ALLOCATION BALANCED APPRECIATION APPRECIATION II ALLOCATION DISCIPLINED AND GROWTH INCOME
FUND INCOME FUND FUND FUND FUND EQUITY FUND FUND FUND
------------- ------------- ------------- --------------- ------------- ------------- ------------- -------------
$ 732,932* $ 12,546 $ 15,878,475 $ 365,759 $ 150,321* $ 424,739 $ 3,492,252 $ 643,686
-- 10 11 5 -- 1 -- --
-- -- 3,646 4 -- -- -- --
-- -- -- 2 -- -- -- --
-- 49 50,611 6,042 91 278 16,661 --
2,176 151 52,804 7,035 311 186 6,013 2,215
37 94 11,425 291 -- 426 3,713 776
-- 1 -- -- -- -- -- --
74 43 341 97 41 64 107 93
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
735,219 12,894 15,997,313 379,235 150,764 425,694 3,518,746 646,770
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- 1 4 -- -- -- --
-- -- -- -- -- -- -- --
-- 8 -- -- -- -- -- --
-- -- 1,398,095 -- -- -- 49,371 --
144 548 7,926 7,250 -- 985 21,844 2,570
820 10 15,755 234 297 649 3,265 1,805
22 1 1,574 59 5 56 357 82
-- -- -- -- -- -- -- --
65 1 1,178 30 13 19 221 39
-- -- -- -- -- -- -- --
133 4 3,735 138 30 114 850 141
-- -- -- -- -- -- -- --
-- -- -- -- -- 56 -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
1,184 572 1,428,264 7,715 345 1,879 75,908 4,637
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 734,035 $ 12,322 $ 14,569,049 $ 371,520 $ 150,419 $ 423,815 $ 3,442,838 $ 642,133
============= ============= ============= ============= ============= ============= ============= =============
$ 665,669 $ 11,866 $ 11,315,532 $ 339,968 $ 140,379 $ 428,655 $ 2,607,187 $ 530,653
495 42 24,853 (194) 262 1,454 920 665
16,851 (22) 1,154,014 7,408 3,599 (61,205) 212,593 26,372
51,020 436 2,074,650 24,338 6,179 54,911 622,138 84,443
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 734,035 $ 12,322 $ 14,569,049 $ 371,520 $ 150,419 $ 423,815 $ 3,442,838 $ 642,133
============= ============= ============= ============= ============= ============= ============= =============
500,000 800,000 820,000 1,000,000 500,000 450,000 700,000 500,000
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$12.01/$12.71 $10.42/$11.03 $39.67/$41.98 $13.13/$13.89 $11.16/$11.81 $13.19/$13.96 $21.48/$22.73 $14.00/$14.81
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
37,760 1,105 234,783 18,373 8,378 14,358 122,283 37,820
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 453,492 $ 11,513 $ 9,312,766 $ 241,238 $ 93,504 $ 189,375 $ 2,626,634 $ 529,664
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 11.98 $ 10.41 $ 36.25 $ 12.99 $ 11.16 $ 12.53 $ 21.17 $ 13.97
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
9,107 29 51,537 2,246 1,862 2,847 17,272 3,092
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 109,117 $ 304 $ 1,868,359 $ 29,169 $ 20,782 $ 35,673 $ 365,678 $ 43,198
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 11.98 $ 10.41 $ 36.40 $ 13.00 $ 11.15 $ 12.54 $ 21.13 $ 13.99
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
14,285 39 81,547 7,515 3,238 2,324 15,006 4,402
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 171,073 $ 400 $ 2,968,472 $ 97,678 $ 36,123 $ 29,153 $ 317,139 $ 61,572
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 12.00 $ -- $ 39.69 $ 13.14 $ 11.16 $ -- $ 21.46 $ 13.99
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
29 -- 131 252 1 -- -- 8
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 353 $ -- $ 5,193 $ 3,316 $ 10 $ -- $ 11 $ 106
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 10.42 $ 42.19 $ 13.20 $ -- $ 13.58 $ 21.72 $ 14.07
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- 10 9,819 9 -- 12,487 6,140 539
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 105 $ 414,259 $ 119 $ -- $ 169,614 $ 133,376 $ 7,593
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 681,912 $ 12,110 $ 13,803,895 $ 341,423 $ 144,142 $ 369,825 $ 2,870,114 $ 559,243
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ 1,377,652 $ -- $ -- $ -- $ 48,353 $ --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ 1 $ -- $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ 3,579 $ 4 $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</Table>
257
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2006 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FLOATING FOCUS
RATE FUND FUND
------------- -------------
ASSETS:
Investments in securities, at value; (amortized cost for
Money Market)@........................................... $ 2,568,123 $ 67,181
Cash+...................................................... 2 1
Foreign currency on deposit with custodian#................ -- --
Unrealized appreciation in forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... 5,757 672
Fund shares sold......................................... 81,712 27
Dividends and interest................................... 20,241 84
Variation margin......................................... -- --
Other assets............................................. 295 25
------------- -------------
Total assets................................................ 2,676,130 67,990
------------- -------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft -- U.S. Dollars............................. -- --
Bank overdraft -- foreign cash............................. -- --
Payable upon return of securities loaned (Note 2d)......... -- --
Payables:
Investment securities purchased.......................... 179,396 833
Fund shares redeemed..................................... 11,906 179
Investment advisory and management fees (Note 3)......... 244 11
Dividends................................................ -- --
Distribution fees (Note 3)............................... 201 6
Variation margin......................................... -- --
Accrued expenses........................................... 196 32
Other liabilities.......................................... -- --
Written options............................................ -- --
------------- -------------
Total liabilities........................................... 191,943 1,061
------------- -------------
Net assets.................................................. $ 2,484,187 $ 66,929
============= =============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 2,487,608 $ 67,508
Accumulated undistributed (distribution in excess of) net
investment income (loss)................................... 2,092 --
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. (1,243) (1,530)
Unrealized appreciation (depreciation) of investments and
the translations of assets and liabilities denominated in
foreign currency........................................... (4,270) 951
------------- -------------
Net assets.................................................. $ 2,484,187 $ 66,929
============= =============
Shares authorized........................................... 1,000,000 300,000
------------- -------------
Par value................................................... 0.001 0.001
------------- -------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $10.11/$10.42 $11.02/$11.66
------------- -------------
Shares outstanding................................... 148,362 3,650
------------- -------------
Net assets........................................... $ 1,500,394 $ 40,215
------------- -------------
CLASS B: Net asset value per share.......................... $ 10.11 $ 10.66
------------- -------------
Shares outstanding................................... 4,174 1,235
------------- -------------
Net assets........................................... $ 42,182 $ 13,162
------------- -------------
CLASS C: Net asset value per share.......................... $ 10.11 $ 10.67
------------- -------------
Shares outstanding................................... 82,020 1,225
------------- -------------
Net assets........................................... $ 828,910 $ 13,065
------------- -------------
CLASS E: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS H: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS I: Net asset value per share/Maximum offering price
per share.......................................... $ 10.11 $ --
------------- -------------
Shares outstanding................................... 6,112 --
------------- -------------
Net assets........................................... $ 61,805 $ --
------------- -------------
CLASS L: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS M: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS N: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
CLASS Y: Net asset value per share.......................... $ 10.11 $ 11.22
------------- -------------
Shares outstanding................................... 5,036 43
------------- -------------
Net assets........................................... $ 50,896 $ 487
------------- -------------
CLASS Z: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------- -------------
@ Cost of securities........................................ $ 2,572,393 $ 66,231
------------- -------------
@ Market value of securities on loan........................ $ -- $ --
------------- -------------
+ Cash held as collateral on loaned securities.............. $ -- $ --
------------- -------------
# Cost of foreign currency on deposit with custodian........ $ -- $ --
------------- -------------
</Table>
* Relates to investments in affiliated investment companies.
The accompanying notes are an integral part of these financial statements.
258
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL GLOBAL GLOBAL GROWTH
COMMUNICATIONS FINANCIAL SERVICES GLOBAL HEALTH GLOBAL LEADERS TECHNOLOGY ALLOCATION GROWTH
FUND FUND FUND FUND FUND FUND FUND
-------------- ------------------ ------------- -------------- ----------- ------------- -------------
$ 29,979 $ 32,925 $ 846,377 $ 807,262 $ 60,026 $ 658,559* $ 1,315,898
-- -- -- 1 1 -- --
-- -- 51 -- 67 -- --
-- 6 2 14 -- -- --
330 841 4,559 15,274 1,523 -- 7,963
7 42 3,072 246 481 1,873 1,858
112 15 1,220 1,008 17 -- 286
-- -- -- -- -- -- --
32 28 69 196 182 78 116
----------- ------------- ------------- ------------- ----------- ------------- -------------
30,460 33,857 855,350 824,001 62,297 660,510 1,326,121
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- 2 -- 36 -- -- --
-- -- -- -- -- -- --
20 -- -- 45 -- -- --
2,591 1,765 105,310 85,242 1,610 -- 35,675
284 1,843 6,518 9,155 1,699 84 8,384
9 4 755 1,059 116 847 2,436
4 5 120 98 10 20 156
-- -- -- -- -- -- --
2 2 45 41 5 63 68
-- -- -- -- -- -- --
22 14 188 289 46 146 342
-- 1 -- -- -- -- --
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
2,932 3,636 112,936 95,965 3,486 1,160 47,061
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 27,528 $ 30,221 $ 742,414 $ 728,036 $ 58,811 $ 659,350 $ 1,279,060
=========== ============= ============= ============= =========== ============= =============
$ 25,338 $ 23,032 $ 614,270 $ 589,647 $ 103,250 $ 585,950 $ 1,107,610
368 180 -- (1,589) -- -- --
(108) 1,682 27,288 31,351 (51,636) 14,413 84,133
1,930 5,327 100,856 108,627 7,197 58,987 87,317
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 27,528 $ 30,221 $ 742,414 $ 728,036 $ 58,811 $ 659,350 $ 1,279,060
=========== ============= ============= ============= =========== ============= =============
300,000 300,000 500,000 450,000 300,000 500,000 27,000,000
----------- ------------- ------------- ------------- ----------- ------------- -------------
0.001 0.001 0.001 0.001 0.001 0.001 0.0001
----------- ------------- ------------- ------------- ----------- ------------- -------------
$8.05/$8.52 $14.01/$14.83 $17.84/$18.88 $19.35/$20.48 $5.67/$6.00 $12.66/$13.40 $18.45/$19.52
----------- ------------- ------------- ------------- ----------- ------------- -------------
2,122 1,525 20,751 21,593 5,894 29,222 38,329
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 17,091 $ 21,369 $ 370,285 $ 417,840 $ 33,424 $ 370,088 $ 707,000
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 7.81 $ 13.74 $ 16.92 $ 18.23 $ 5.41 $ 12.57 $ 16.25
----------- ------------- ------------- ------------- ----------- ------------- -------------
528 279 4,762 4,104 2,355 8,578 2,711
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 4,124 $ 3,828 $ 80,574 $ 74,805 $ 12,729 $ 107,818 $ 44,064
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 7.80 $ 13.73 $ 16.93 $ 18.31 $ 5.40 $ 12.57 $ 16.29
----------- ------------- ------------- ------------- ----------- ------------- -------------
682 297 5,786 3,610 2,135 14,438 5,246
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 5,321 $ 4,082 $ 97,956 $ 66,121 $ 11,521 $ 181,434 $ 85,469
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ -- $ -- $ 17.86 $ -- $ -- $ 12.67 $ 18.46
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- 44 -- -- 1 106
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ -- $ -- $ 785 $ -- $ -- $ 10 $ 1,961
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 8.23 $ 14.16 $ 18.57 $ 20.14 $ 5.82 $ -- $ 18.89
----------- ------------- ------------- ------------- ----------- ------------- -------------
121 66 10,381 8,403 195 -- 6,914
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 992 $ 942 $ 192,814 $ 169,270 $ 1,137 $ -- $ 130,594
----------- ------------- ------------- ------------- ----------- ------------- -------------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 28,051 $ 27,599 $ 745,525 $ 698,671 $ 52,829 $ 599,572 $ 1,228,581
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ 2,523 $ 1,677 $ 102,006 $ 81,184 $ 1,601 $ -- $ 34,808
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ -- $ --
----------- ------------- ------------- ------------- ----------- ------------- -------------
$ -- $ -- $ 50 $ -- $ 67 $ -- $ --
----------- ------------- ------------- ------------- ----------- ------------- -------------
<Caption>
GROWTH
OPPORTUNITIES
FUND
-------------
$ 1,345,994
--
--
--
9,793
1,828
569
--
336
-------------
1,358,520
-------------
--
--
5
93,925
21,182
1,521
151
--
64
--
307
--
--
-------------
117,155
-------------
$ 1,241,365
=============
$ 1,008,968
--
87,040
145,357
-------------
$ 1,241,365
=============
23,750,000
-------------
0.0001
-------------
$29.33/$31.04
-------------
14,329
-------------
$ 420,220
-------------
$ 25.23
-------------
1,334
-------------
$ 33,670
-------------
$ 25.24
-------------
1,877
-------------
$ 47,366
-------------
--
-------------
--
-------------
$ 29.34
-------------
3
-------------
$ 74
-------------
--
-------------
--
-------------
--
-------------
$ 30.04
-------------
2,453
-------------
$ 73,685
-------------
--
-------------
$ 1,200,638
-------------
$ 90,613
-------------
$ --
-------------
$ --
-------------
</Table>
259
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2006 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INCOME
HIGH YIELD ALLOCATION
FUND FUND
----------- ------------
ASSETS:
Investments in securities, at value; (amortized cost for
Money Market)@........................................... $ 350,515 $ 38,917*
Cash+...................................................... -- --
Foreign currency on deposit with custodian#................ 131 --
Unrealized appreciation in forward foreign currency
contracts................................................ 81 --
Receivables:
Investment securities sold............................... 5,550 --
Fund shares sold......................................... 219 92
Dividends and interest................................... 6,651 10
Variation margin......................................... -- --
Other assets............................................... 48 36
----------- ------------
Total assets................................................ 363,195 39,055
----------- ------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ 35 --
Bank overdraft -- U.S. Dollars............................. 1,461 --
Bank overdraft -- foreign cash............................. -- --
Payable upon return of securities loaned (Note 2d)......... 60,694 --
Payables:
Investment securities purchased.......................... 8,474 42
Fund shares redeemed..................................... 328 46
Investment advisory and management fees (Note 3)......... 36 1
Dividends................................................ -- --
Distribution fees (Note 3)............................... 20 3
Variation margin......................................... -- --
Accrued expenses........................................... 114 12
Other liabilities.......................................... -- --
Written options............................................ -- --
----------- ------------
Total liabilities........................................... 71,162 104
----------- ------------
Net assets.................................................. $ 292,033 $ 38,951
=========== ============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 370,696 $ 39,574
Accumulated undistributed (distribution in excess of) net
investment income (loss)................................... 42 5
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. (82,021) (445)
Unrealized appreciation (depreciation) of investments and
the translations of assets and liabilities denominated in
foreign currency........................................... 3,316 (183)
----------- ------------
Net assets.................................................. $ 292,033 $ 38,951
=========== ============
Shares authorized........................................... 450,000 500,000
----------- ------------
Par value................................................... 0.001 0.001
----------- ------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $7.93/$8.30 $9.89/$10.36
----------- ------------
Shares outstanding................................... 24,012 2,567
----------- ------------
Net assets........................................... $ 190,479 $ 25,383
----------- ------------
CLASS B: Net asset value per share.......................... $ 7.92 $ 9.88
----------- ------------
Shares outstanding.................................. 4,697 558
----------- ------------
Net assets.......................................... $ 37,189 $ 5,516
----------- ------------
CLASS C: Net asset value per share.......................... $ 7.92 $ 9.88
----------- ------------
Shares outstanding................................... 5,048 814
----------- ------------
Net assets........................................... $ 39,991 $ 8,042
----------- ------------
CLASS E: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS H: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS I: Net asset value per share/Maximum offering price
per share.......................................... $ -- $ 9.89
----------- ------------
Shares outstanding................................... -- 1
----------- ------------
Net assets........................................... $ -- $ 10
----------- ------------
CLASS L: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS M: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS N: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS Y: Net asset value per share.......................... $ 7.92 $ --
----------- ------------
Shares outstanding................................... 3,077 --
----------- ------------
Net assets........................................... $ 24,374 $ --
----------- ------------
CLASS Z: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
@ Cost of securities........................................ $ 347,248 $ 39,100
----------- ------------
@ Market value of securities on loan........................ $ 57,737 $ --
----------- ------------
+ Cash held as collateral on loaned securities.............. $ -- $ --
----------- ------------
# Cost of foreign currency on deposit with custodian........ $ 129 $ --
----------- ------------
</Table>
* Relates to investments in affiliated investment companies.
The accompanying notes are an integral part of these financial statements.
260
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL INTERNATIONAL INTERNATIONAL
INCOME INFLATION PLUS CAPITAL APPRECIATION OPPORTUNITIES SMALL COMPANY MIDCAP MIDCAP
FUND FUND FUND FUND FUND FUND GROWTH FUND
------------- -------------- -------------------- ------------- ------------- ------------- -------------
$ 114,776 $ 772,329 $ 448,089 $ 301,770 $ 229,390 $ 3,046,197 $ 11,164
109 -- 1 -- -- 1 --
-- -- 59 73 3 -- --
20 404 8 8 6 4 --
1,176 13,919 11,893 4,686 645 17,804 182
171 454 884 612 598 1,979 27
1,397 3,980 384 559 299 1,164 --
27 -- -- -- -- -- --
52 80 69 97 42 79 48
------------- ------------- ------------- ------------- ------------- ------------- -------------
117,728 791,166 461,387 307,805 230,983 3,067,228 11,421
------------- ------------- ------------- ------------- ------------- ------------- -------------
64 507 25 55 1 -- --
-- -- -- -- 4 -- --
-- -- -- -- -- -- --
-- -- 92,173 50,091 41,963 72,566 --
4,390 24,623 8,121 3,969 1,412 19,204 321
43 3,090 291 548 338 3,971 --
11 73 59 35 30 360 1
-- -- -- -- -- -- --
4 67 22 15 8 233 1
11 23 -- -- -- -- --
22 176 135 104 76 857 4
-- -- -- -- -- -- --
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
4,545 28,559 100,826 54,817 43,832 97,191 327
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 113,183 $ 762,607 $ 360,561 $ 252,988 $ 187,151 $ 2,970,037 $ 11,094
============= ============= ============= ============= ============= ============= =============
$ 113,130 $ 787,340 $ 283,676 $ 217,900 $ 145,669 $ 2,126,916 $ 10,439
54 4,125 (154) 1,721 2,242 -- 1
(602) (18,352) 28,532 5,078 23,135 479,588 81
601 (10,506) 48,507 28,289 16,105 363,533 573
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 113,183 $ 762,607 $ 360,561 $ 252,988 $ 187,151 $ 2,970,037 $ 11,094
============= ============= ============= ============= ============= ============= =============
300,000 600,000 500,000 450,000 300,000 460,000 800,000
------------- ------------- ------------- ------------- ------------- ------------- -------------
0.001 0.001 0.001 0.001 0.001 0.001 0.001
------------- ------------- ------------- ------------- ------------- ------------- -------------
$10.33/$10.82 $10.44/$10.93 $14.93/$15.80 $16.13/$17.07 $16.19/$17.13 $25.31/$26.78 $10.63/$11.25
------------- ------------- ------------- ------------- ------------- ------------- -------------
3,598 27,054 14,275 9,862 4,323 72,603 972
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 37,168 $ 282,362 $ 213,186 $ 159,087 $ 69,998 $ 1,837,361 $ 10,334
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 10.33 $ 10.45 $ 14.42 $ 15.14 $ 15.72 $ 23.35 $ 10.61
------------- ------------- ------------- ------------- ------------- ------------- -------------
699 8,839 2,306 1,924 761 19,253 28
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 7,224 $ 92,340 $ 33,252 $ 29,125 $ 11,960 $ 449,488 $ 297
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 10.35 $ 10.44 $ 14.42 $ 15.01 $ 15.55 $ 23.47 $ 10.61
------------- ------------- ------------- ------------- ------------- ------------- -------------
783 23,667 3,006 1,384 1,189 21,267 34
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 8,101 $ 247,091 $ 43,336 $ 20,782 $ 18,486 $ 499,039 $ 357
------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 10.44 $ 14.94 $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------- ------------- -------------
2 1 -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ 18 $ 10 $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 10.32 $ 10.45 $ 15.17 $ 16.67 $ 16.37 $ 26.68 $ 10.64
------------- ------------- ------------- ------------- ------------- ------------- -------------
5,879 13,471 4,664 2,639 5,297 6,901 10
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 60,690 $ 140,796 $ 70,777 $ 43,994 $ 86,707 $ 184,149 $ 106
------------- ------------- ------------- ------------- ------------- ------------- -------------
-- -- -- -- -- -- --
$ 114,134 $ 782,665 $ 399,566 $ 273,443 $ 213,288 $ 2,682,667 $ 10,591
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ 87,928 $ 47,677 $ 39,811 $ 70,622 $ --
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ -- $ -- $ 60 $ 73 $ 3 $ -- $ --
------------- ------------- ------------- ------------- ------------- ------------- -------------
<Caption>
MIDCAP VALUE
FUND
-------------
$ 498,912
--
--
--
2,639
45
164
--
33
-------------
501,793
-------------
--
--
--
35,132
3,899
522
65
--
33
--
158
--
--
-------------
39,809
-------------
$ 461,984
=============
$ 331,831
--
58,613
71,540
-------------
$ 461,984
=============
300,000
-------------
0.001
-------------
$14.57/$15.42
-------------
20,935
-------------
$ 305,002
-------------
$ 13.93
-------------
4,493
-------------
$ 62,580
-------------
$ 13.93
-------------
4,543
-------------
$ 63,302
-------------
--
-------------
--
-------------
$ --
-------------
--
-------------
$ --
-------------
--
-------------
--
-------------
--
-------------
$ 15.00
-------------
2,073
-------------
$ 31,100
-------------
--
$ 427,372
-------------
$ 34,370
-------------
$ --
-------------
$ --
-------------
</Table>
261
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2006 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RETIREMENT
MONEY MARKET INCOME
FUND FUND
------------ ------------
ASSETS:
Investments in securities, at value; (amortized cost for
Money Market)@........................................... $ 268,870 $ 842*
Cash+...................................................... 102 --
Foreign currency on deposit with custodian#................ -- --
Unrealized appreciation in forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... -- --
Fund shares sold......................................... 738 --
Dividends and interest................................... 453 --
Variation margin......................................... -- --
Other assets............................................... 57 31
----------- ------------
Total assets................................................ 270,220 873
----------- ------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft -- U.S. Dollars............................. -- --
Bank overdraft -- foreign cash............................. -- --
Payable upon return of securities loaned (Note 2d)......... -- --
Payables:
Investment securities purchased.......................... 3,242 --
Fund shares redeemed..................................... 602 --
Investment advisory and management fees (Note 3)......... 22 --
Dividends................................................ 32 --
Distribution fees (Note 3)............................... 16 --
Variation margin......................................... -- --
Accrued expenses........................................... 94 5
Other liabilities.......................................... -- --
Written options............................................ -- --
----------- ------------
Total liabilities........................................... 4,008 5
----------- ------------
Net assets.................................................. $ 266,212 $ 868
=========== ============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 266,212 $ 854
Accumulated undistributed (distribution in excess of) net
investment income (loss)................................... -- --
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. -- (1)
Unrealized appreciation (depreciation) of investments and
the translations of assets and liabilities denominated in
foreign currency........................................... -- 15
----------- ------------
Net assets.................................................. $ 266,212 $ 868
=========== ============
Shares authorized........................................... 2,850,000 950,000
----------- ------------
Par value................................................... 0.001 0.001
----------- ------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $1.00/$1.00 $9.59/$10.15
----------- ------------
Shares outstanding................................... 207,592 44
----------- ------------
Net assets........................................... $ 207,592 $ 420
----------- ------------
CLASS B: Net asset value per share.......................... $ 1.00 $ 9.59
----------- ------------
Shares outstanding.................................. 27,995 18
----------- ------------
Net assets.......................................... $ 27,995 $ 173
----------- ------------
CLASS C: Net asset value per share.......................... $ 1.00 $ 9.61
----------- ------------
Shares outstanding................................... 16,997 17
----------- ------------
Net assets........................................... $ 16,997 $ 161
----------- ------------
CLASS E: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS H: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS I: Net asset value per share/Maximum offering price
per share.......................................... $ -- $ --
----------- ------------
Shares outstanding................................... -- --
----------- ------------
Net assets........................................... $ -- $ --
----------- ------------
CLASS L: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS M: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS N: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
CLASS Y: Net asset value per share.......................... $ 1.00 $ 9.60
----------- ------------
Shares outstanding................................... 13,628 12
----------- ------------
Net assets........................................... $ 13,628 $ 114
----------- ------------
CLASS Z: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
----------- ------------
@ Cost of securities........................................ $ 268,870 $ 827
----------- ------------
@ Market value of securities on loan........................ $ -- $ --
----------- ------------
+ Cash held as collateral on loaned securities.............. $ -- $ --
----------- ------------
# Cost of foreign currency on deposit with custodian........ $ -- $ --
----------- ------------
</Table>
* Relates to investments in affiliated investment companies.
The accompanying notes are an integral part of these financial statements.
262
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECT MIDCAP SELECT MIDCAP SELECT SMALLCAP SELECT SMALLCAP SHORT DURATION SMALL COMPANY SMALLCAP GROWTH
GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND FUND FUND FUND
------------- ------------- --------------- --------------- -------------- ------------- ---------------
$ 57,625 $ 78,644 $ 13,103 $ 17,919 $ 148,767 $ 485,433 $ 618,767
-- 971 30 211 1 1 1
-- -- -- -- -- -- --
-- -- -- -- -- -- --
2,438 199 134 47 -- 13,179 15,480
9 89 -- 19 125 563 1,151
21 38 5 13 1,286 80 83
-- -- -- -- -- -- --
54 46 58 41 51 117 172
------------- ------------- ------------- ------------- ------------ ------------- -------------
60,147 79,987 13,330 18,250 150,230 499,373 635,654
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- 2 --
-- -- -- -- -- -- --
-- -- -- -- -- 2 --
-- -- -- -- -- 87,081 87,207
81 285 78 240 -- 8,217 15,205
38 142 1 -- 117 601 487
9 13 2 3 13 55 69
-- -- -- -- -- -- --
2 4 -- 1 5 25 27
-- -- -- 1 -- -- 20
21 27 14 7 29 115 155
-- -- -- -- -- -- --
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
151 471 95 252 164 96,098 103,170
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 59,996 $ 79,516 $ 13,235 $ 17,998 $ 150,066 $ 403,275 $ 532,484
============= ============= ============= ============= ============ ============= =============
$ 56,896 $ 70,687 $ 12,526 $ 16,511 $ 152,953 $ 334,338 $ 503,599
-- -- -- 42 1 -- --
1,758 2,750 (262) 129 (2,224) 32,931 (1,568)
1,342 6,079 971 1,316 (664) 36,006 30,453
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 59,996 $ 79,516 $ 13,235 $ 17,998 $ 150,066 $ 403,275 $ 532,484
============= ============= ============= ============= ============ ============= =============
800,000 800,000 800,000 800,000 300,000 500,000 27,000,000
------------- ------------- ------------- ------------- ------------ ------------- -------------
0.001 0.001 0.001 0.001 0.001 0.001 0.0001
------------- ------------- ------------- ------------- ------------ ------------- -------------
$11.28/$11.94 $12.41/$13.13 $10.53/$11.14 $10.96/$11.60 $9.89/$10.20 $21.58/$22.84 $31.32/$33.14
------------- ------------- ------------- ------------- ------------ ------------- -------------
2,087 3,863 692 1,449 2,701 9,018 7,304
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 23,542 $ 47,937 $ 7,284 $ 15,872 $ 26,726 $ 194,656 $ 228,776
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 11.14 $ 12.28 $ 10.46 $ 10.93 $ 9.90 $ 19.97 $ 28.12
------------- ------------- ------------- ------------- ------------ ------------- -------------
334 337 50 28 683 2,605 679
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 3,725 $ 4,137 $ 526 $ 308 $ 6,760 $ 52,036 $ 19,078
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 11.13 $ 12.28 $ 10.45 $ 10.93 $ 9.90 $ 20.00 $ 28.07
------------- ------------- ------------- ------------- ------------ ------------- -------------
347 604 64 26 1,453 2,388 857
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 3,861 $ 7,417 $ 672 $ 280 $ 14,382 $ 47,744 $ 24,070
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ 21.59 $ 31.33
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- 3 8
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ 69 $ 239
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 11.36 $ 12.40 $ 10.59 $ 10.97 $ 9.88 $ 22.73 $ 31.95
------------- ------------- ------------- ------------- ------------ ------------- -------------
2,541 1,615 449 140 10,341 4,786 3,377
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 28,868 $ 20,025 $ 4,753 $ 1,538 $ 102,198 $ 108,770 $ 107,906
------------- ------------- ------------- ------------- ------------ ------------- -------------
-- -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ 56,283 $ 72,565 $ 12,132 $ 16,608 $ 149,431 $ 449,427 $ 588,649
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ 84,940 $ 84,992
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------ ------------- -------------
$ -- $ -- $ -- $ -- $ -- $ -- $ --
------------- ------------- ------------- ------------- ------------ ------------- -------------
<Caption>
STOCK
FUND
-------------
$ 1,302,964
--
--
28
21,792
183
1,227
--
66
-------------
1,326,260
-------------
--
--
--
99,232
22,207
2,374
146
--
92
--
531
--
--
-------------
124,582
-------------
$ 1,201,678
=============
$ 1,447,523
4,107
(321,285)
71,333
-------------
$ 1,201,678
=============
450,000
-------------
0.001
-------------
$21.04/$22.26
-------------
32,545
-------------
$ 684,726
-------------
$ 19.58
-------------
11,419
-------------
$ 223,639
-------------
$ 19.73
-------------
8,187
-------------
$ 161,554
-------------
--
-------------
--
-------------
$ --
-------------
--
-------------
$ --
-------------
--
-------------
--
-------------
--
-------------
$ 21.95
-------------
6,002
-------------
$ 131,759
-------------
--
-------------
$ 1,231,649
-------------
$ 96,557
-------------
$ --
-------------
$ --
-------------
</Table>
263
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2006 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TARGET TARGET
RETIREMENT 2010 RETIREMENT 2020
FUND FUND
--------------- ---------------
ASSETS:
Investments in securities, at value; (amortized cost for
Money Market)@........................................... $ 2,418* $ 2,729*
Cash+...................................................... -- --
Foreign currency on deposit with custodian#................ -- --
Unrealized appreciation in forward foreign currency
contracts................................................ -- --
Receivables:
Investment securities sold............................... -- --
Fund shares sold......................................... 4 --
Dividends and interest................................... -- --
Variation margin......................................... -- --
Other assets............................................... 43 42
------------ -------------
Total assets................................................ 2,465 2,771
------------ -------------
LIABILITIES:
Unrealized depreciation on forward foreign currency
contracts................................................ -- --
Bank overdraft -- U.S. Dollars............................. -- --
Bank overdraft -- foreign cash............................. -- --
Payable upon return of securities loaned (Note 2d)......... -- --
Payables:
Investment securities purchased.......................... 4 --
Fund shares redeemed..................................... -- --
Investment advisory and management fees (Note 3)......... -- --
Dividends................................................ -- --
Distribution fees (Note 3)............................... -- --
Variation margin......................................... -- --
Accrued expenses........................................... 7 7
Other liabilities.......................................... -- --
Written options............................................. -- --
------------ -------------
Total liabilities........................................... 11 7
------------ -------------
Net assets.................................................. $ 2,454 $ 2,764
============ =============
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital........................... $ 2,409 $ 2,676
Accumulated undistributed (distribution in excess of) net
investment income (loss)................................... -- --
Accumulated net realized gain (loss) on investments and
foreign currency transactions.............................. -- 5
Unrealized appreciation (depreciation) of investments and
the translations of assets and liabilities denominated in
foreign currency........................................... 45 83
------------ -------------
Net assets.................................................. $ 2,454 $ 2,764
============ =============
Shares authorized........................................... 950,000 950,000
------------ -------------
Par value................................................... 0.001 0.001
------------ -------------
CLASS A: Net asset value per share/Maximum offering price
per share.......................................... $9.65/$10.21 $10.43/$11.04
------------ -------------
Shares outstanding................................... 168 204
------------ -------------
Net assets........................................... $ 1,618 $ 2,125
------------ -------------
CLASS B: Net asset value per share.......................... $ 9.65 $ 10.42
------------ -------------
Shares outstanding................................... 23 28
------------ -------------
Net assets........................................... $ 226 $ 291
------------ -------------
CLASS C: Net asset value per share.......................... $ 9.64 $ 10.42
------------ -------------
Shares outstanding................................... 49 32
------------ -------------
Net assets........................................... $ 475 $ 337
------------ -------------
CLASS E: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------ -------------
CLASS H: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------ -------------
CLASS I: Net asset value per share/Maximum offering price
per share.......................................... $ -- $ --
------------ -------------
Shares outstanding................................... -- --
------------ -------------
Net assets........................................... $ -- $ --
------------ -------------
CLASS L: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------ -------------
CLASS M: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------ -------------
CLASS N: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------ -------------
CLASS Y: Net asset value per share.......................... $ 9.65 $ 10.43
------------ -------------
Shares outstanding................................... 14 1
------------ -------------
Net assets........................................... $ 135 $ 11
------------ -------------
CLASS Z: See page 266 for NAV, Shares outstanding and Net
assets............................................. -- --
------------ -------------
@ Cost of securities........................................ $ 2,373 $ 2,646
------------ -------------
@ Market value of securities on loan........................ $ -- $ --
------------ -------------
+ Cash held as collateral on loaned securities.............. $ -- $ --
------------ -------------
# Cost of foreign currency on deposit with custodian........ $ -- $ --
------------ -------------
</Table>
* Relates to investments in affiliated investment companies.
** Investments in repurchase agreements were $113,227.
The accompanying notes are an integral part of these financial statements.
264
- --------------------------------------------------------------------------------
<Table>
<Caption>
TARGET TAX-FREE TAX-FREE TAX-FREE TAX-FREE TOTAL U.S. GOVERNMENT
RETIREMENT 2030 CALIFORNIA MINNESOTA NATIONAL NEW YORK RETURN BOND SECURITIES
FUND FUND FUND FUND FUND FUND FUND
--------------- ------------- ------------- ------------- ------------- ------------- ---------------
$ 2,230* $ 29,613 $ 34,481 $ 130,055 $ 14,895 $ 1,033,755** $ 204,421
-- 445 -- -- 1 472 --
-- -- -- -- -- 16 --
-- -- -- -- -- -- --
-- -- -- -- 470 35,063 3
3 863 -- 1,689 -- 2,708 58
-- 317 488 1,982 248 6,963 1,556
-- -- -- -- -- 137 47
48 18 13 53 26 61 51
----------- ------------- ------------- ------------- ------------- ------------- -----------
2,281 31,256 34,982 133,779 15,640 1,079,175 206,136
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- 82 --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- 96,732 7,287
-- 1,442 -- 3,491 150 108,122 996
-- -- -- 331 -- 1,069 204
-- 3 4 16 1 87 23
-- -- -- -- -- -- --
-- 2 1 7 1 43 8
-- -- -- -- -- 142 --
6 7 7 20 6 202 51
-- -- -- -- -- -- --
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
6 1,454 12 3,865 158 206,479 8,569
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 2,275 $ 29,802 $ 34,970 $ 129,914 $ 15,482 $ 872,696 $ 197,567
=========== ============= ============= ============= ============= ============= ===========
$ 2,192 $ 28,851 $ 33,185 $ 123,226 $ 14,799 $ 878,446 $ 214,532
-- 2 10 3 2 656 11
1 (5) 197 372 85 (9,500) (18,827)
82 954 1,578 6,313 596 3,094 1,851
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 2,275 $ 29,802 $ 34,970 $ 129,914 $ 15,482 $ 872,696 $ 197,567
=========== ============= ============= ============= ============= ============= ===========
950,000 300,000 19,250,000 19,250,000 300,000 500,000 19,250,000
----------- ------------- ------------- ------------- ------------- ------------- -----------
0.001 0.001 0.0001 0.0001 0.001 0.001 0.0001
----------- ------------- ------------- ------------- ------------- ------------- -----------
$9.36/$9.90 $10.55/$11.05 $10.33/$10.82 $11.34/$11.87 $10.53/$11.03 $10.59/$11.09 $9.23/$9.66
----------- ------------- ------------- ------------- ------------- ------------- -----------
198 2,350 662 6,339 1,062 40,842 4,970
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 1,857 $ 24,796 $ 6,846 $ 71,876 $ 11,182 $ 432,703 $ 45,851
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 9.36 $ 10.54 $ 10.35 $ 11.26 $ 10.53 $ 10.54 $ 9.18
----------- ------------- ------------- ------------- ------------- ------------- -----------
33 149 78 599 172 7,542 1,852
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 305 $ 1,571 $ 804 $ 6,746 $ 1,808 $ 79,506 $ 17,011
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 9.37 $ 10.56 $ 10.37 $ 11.29 $ 10.53 $ 10.61 $ 9.18
----------- ------------- ------------- ------------- ------------- ------------- -----------
9 325 40 1,141 236 7,086 1,056
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 81 $ 3,435 $ 411 $ 12,889 $ 2,492 $ 75,194 $ 9,698
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ -- $ -- $ -- $ -- $ -- $ 10.60 $ --
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- 4 --
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ -- $ -- $ -- $ -- $ -- $ 38 $ --
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 9.36 $ -- $ 10.34 $ 11.32 $ -- $ 10.71 $ 9.20
----------- ------------- ------------- ------------- ------------- ------------- -----------
3 -- 1 1 -- 26,628 11
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 32 $ -- $ 11 $ 11 $ -- $ 285,255 $ 101
----------- ------------- ------------- ------------- ------------- ------------- -----------
-- -- -- -- -- -- --
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ 2,148 $ 28,659 $ 32,903 $ 123,742 $ 14,299 $ 1,030,594 $ 202,608
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ -- $ -- $ -- $ -- $ -- $ 94,334 $ 7,156
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ -- $ -- $ -- $ -- $ -- $ -- $ --
----------- ------------- ------------- ------------- ------------- ------------- -----------
$ -- $ -- $ -- $ -- $ -- $ 16 $ --
----------- ------------- ------------- ------------- ------------- ------------- -----------
<Caption>
VALUE
VALUE OPPORTUNITIES
FUND FUND
------------- -------------
$ 177,243 $ 307,330
1 1
-- --
-- --
270 2,363
602 438
188 168
-- --
29 70
------------- -------------
178,333 310,370
------------- -------------
-- --
-- --
-- --
-- 7,150
1,206 2,233
626 171
23 42
-- --
7 15
-- --
41 67
-- --
-- --
------------- -------------
1,903 9,678
------------- -------------
$ 176,430 $ 300,692
============= =============
$ 134,263 $ 242,683
1,021 1,431
15,395 20,670
25,751 35,908
------------- -------------
$ 176,430 $ 300,692
============= =============
450,000 27,000,000
------------- -------------
0.001 0.000
------------- -------------
$12.91/$13.66 $18.26/$19.32
------------- -------------
6,155 6,097
------------- -------------
$ 79,476 $ 111,324
------------- -------------
$ 12.71 $ 16.92
------------- -------------
941 1,080
------------- -------------
$ 11,957 $ 18,271
------------- -------------
$ 12.71 $ 16.92
------------- -------------
1,019 1,328
------------- -------------
$ 12,943 $ 22,466
------------- -------------
-- --
------------- -------------
-- --
------------- -------------
$ -- $ 18.27
------------- -------------
-- 1
------------- -------------
$ -- $ 12
------------- -------------
-- --
------------- -------------
-- --
------------- -------------
-- --
------------- -------------
$ 12.91 $ 18.48
------------- -------------
5,580 5,568
------------- -------------
$ 72,054 $ 102,915
------------- -------------
-- --
------------- -------------
$ 151,492 $ 271,422
------------- -------------
$ -- $ 6,969
------------- -------------
$ -- $ --
------------- -------------
$ -- $ --
------------- -------------
</Table>
265
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2006 (000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH SMALLCAP TAX-FREE
GROWTH OPPORTUNITIES GROWTH MINNESOTA
FUND FUND FUND FUND
------------- ------------- ------------- -------------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... $ -- $ -- $ -- $10.39/$10.88
------------- ------------- ------------- -------------
Shares outstanding.................................. -- -- -- 2,292
------------- ------------- ------------- -------------
Net assets.......................................... $ -- $ -- $ -- $ 23,819
------------- ------------- ------------- -------------
CLASS H: Net asset value per share.......................... $ 16.46 $ 25.57 $ 28.29 $ 10.40
------------- ------------- ------------- -------------
Shares outstanding.................................. 928 1,314 482 11
------------- ------------- ------------- -------------
Net assets.......................................... $ 15,267 $ 33,610 $ 13,634 $ 116
------------- ------------- ------------- -------------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... $18.69/$19.62 $29.73/$31.21 $31.45/$33.02 $10.37/$10.86
------------- ------------- ------------- -------------
Shares outstanding.................................. 14,708 19,188 3,766 255
------------- ------------- ------------- -------------
Net assets.......................................... $ 274,890 $ 570,541 $ 118,452 $ 2,648
------------- ------------- ------------- -------------
CLASS M: Net asset value per share.......................... $ 16.44 $ 25.53 $ 28.25 $ 10.39
------------- ------------- ------------- -------------
Shares outstanding.................................. 972 827 513 12
------------- ------------- ------------- -------------
Net assets.......................................... $ 15,988 $ 21,110 $ 14,483 $ 120
------------- ------------- ------------- -------------
CLASS N: Net asset value per share.......................... $ 16.44 $ 25.53 $ 28.28 $ 10.39
------------- ------------- ------------- -------------
Shares outstanding.................................. 233 208 207 19
------------- ------------- ------------- -------------
Net assets.......................................... $ 3,827 $ 5,304 $ 5,846 $ 195
------------- ------------- ------------- -------------
CLASS Z: Net asset value per share.......................... $ -- $ 31.18 $ -- $ --
------------- ------------- ------------- -------------
Shares outstanding.................................. -- 1,147 -- --
------------- ------------- ------------- -------------
Net assets.......................................... $ -- $ 35,785 $ -- $ --
------------- ------------- ------------- -------------
</Table>
<Table>
<Caption>
TAX-FREE U.S. GOVERNMENT VALUE
NATIONAL SECURITIES OPPORTUNITIES
FUND FUND FUND
------------- --------------- -------------
CLASS E: Net asset value per share/Maximum offering price
per share.......................................... $11.33/$11.86 $9.21/$9.64 $ --
------------- ----------- -------------
Shares outstanding.................................. 2,557 9,717 --
------------- ----------- -------------
Net assets.......................................... $ 28,964 $ 89,487 $ --
------------- ----------- -------------
CLASS H: Net asset value per share.......................... $ 11.30 $ 9.17 $ 16.97
------------- ----------- -------------
Shares outstanding.................................. 17 209 214
------------- ----------- -------------
Net assets.......................................... $ 189 $ 1,922 $ 3,634
------------- ----------- -------------
CLASS L: Net asset value per share/Maximum offering price
per share.......................................... $11.31/$11.84 $9.22/$9.65 $18.29/$19.20
------------- ----------- -------------
Shares outstanding.................................. 673 3,332 1,803
------------- ----------- -------------
Net assets.......................................... $ 7,606 $ 30,712 $ 32,983
------------- ----------- -------------
CLASS M: Net asset value per share.......................... $ 11.30 $ 9.18 $ 16.95
------------- ----------- -------------
Shares outstanding.................................. 111 229 413
------------- ----------- -------------
Net assets.......................................... $ 1,258 $ 2,099 $ 7,000
------------- ----------- -------------
CLASS N: Net asset value per share.......................... $ 11.27 $ 9.17 $ 16.97
------------- ----------- -------------
Shares outstanding.................................. 33 75 123
------------- ----------- -------------
Net assets.......................................... $ 375 $ 686 $ 2,087
------------- ----------- -------------
</Table>
The accompanying notes are an integral part of these financial statements.
266
(This page intentionally left blank)
267
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
AGGRESSIVE GROWTH
ADVISERS FUND ALLOCATION FUND*
------------- -----------------
INVESTMENT INCOME:
Dividends................................................. $ 21,294 $ 659
Interest.................................................. 31,989 --
Securities lending........................................ 842 --
Less: Foreign tax withheld................................ (411) --
-------- -------
Total investment income, net............................ 53,714 659
-------- -------
EXPENSES:
Investment advisory and management fees................... 11,227 322
Transfer agent fees....................................... 3,961 376
Distribution fees
Class A................................................. 2,907 226
Class B................................................. 3,930 276
Class C................................................. 2,367 429
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 124 1
Accounting services....................................... 288 16
Registration and filing fees.............................. 110 63
Board of Directors' fees.................................. 33 2
Other expenses............................................ 942 96
-------- -------
Total expenses (before waivers and fees paid
indirectly)............................................ 25,889 1,807
Expense waivers........................................... (905) (188)
Transfer agent fee waivers................................ -- --
Commission recapture...................................... (182) --
Custodian fee offset...................................... (13) --
-------- -------
Total waivers and fees paid indirectly.................. (1,100) (188)
-------- -------
Total expenses, net..................................... 24,789 1,619
-------- -------
Net investment income (loss).............................. 28,925 (960)
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Capital gain distribution received from underlying
affiliated funds........................................ -- 2,827
Net realized gain (loss) on investments................... 191,586 2,823
Net realized gain (loss) on futures, options and swap
contracts............................................... 1,120 --
Net realized gain (loss) on foreign currency
transactions............................................ (36) --
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... 192,670 5,650
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. (37,039) 16,350
Net unrealized appreciation (depreciation) of futures,
options and swap contracts.............................. -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... 20 --
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. (37,019) 16,350
-------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... 155,651 22,000
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $184,576 $21,040
======== =======
</Table>
* Relates to investments in affiliated investment companies.
# From July 31, 2006 (Commencement of operations) through October 31, 2006.
@ Realized gains on written options were $63 for the Disciplined Equity Fund.
(W) Realized losses on written options were $9,581, for the Capital Appreciation
Fund.
The accompanying notes are an integral part of these financial statements.
268
- --------------------------------------------------------------------------------
<Table>
<Caption>
BALANCED BALANCED CAPITAL CAPITAL CONSERVATIVE DISCIPLINED EQUITY
ALLOCATION INCOME APPRECIATION APPRECIATION II ALLOCATION EQUITY DIVIDEND AND INCOME
FUND* FUND# FUND FUND FUND* FUND GROWTH FUND FUND
---------- -------- ------------ --------------- ------------ ----------- ------------ -------
$12,792 $ 37 $ 172,002 $ 2,750 $ 4,041 $ 6,973 $ 72,777 $15,720
-- 91 32,099 456 -- 221 4,044 457
-- -- 1,740 -- -- -- 274 --
-- -- (4,832) (143) -- (1) (893) (29)
------- ---- ---------- ------- ------- ------- -------- -------
12,792 128 201,009 3,063 4,041 7,193 76,202 16,148
------- ---- ---------- ------- ------- ------- -------- -------
1,142 20 80,861 2,084 267 3,236 19,633 4,239
712 -- 22,947 464 132 777 5,816 927
911 6 19,418 347 202 497 5,845 1,100
927 1 17,731 166 177 381 3,512 373
1,391 1 24,153 530 349 317 2,926 539
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
1 2 1,700 169 1 15 19 7
60 -- 1,930 32 13 64 490 84
110 7 694 109 56 54 212 107
9 -- 187 2 2 6 48 9
273 7 5,441 88 75 190 1,395 257
------- ---- ---------- ------- ------- ------- -------- -------
5,536 44 175,062 3,991 1,274 5,537 39,896 7,642
(133) (9) -- (128) (74) (63) -- (1,604)
-- -- -- (1) -- (29) -- --
-- -- (1,851) (21) -- (21) (194) (32)
-- -- (91) (1) -- -- (2) --
------- ---- ---------- ------- ------- ------- -------- -------
(133) (9) (1,942) (151) (74) (113) (196) (1,636)
------- ---- ---------- ------- ------- ------- -------- -------
5,403 35 173,120 3,840 1,200 5,424 39,700 6,006
------- ---- ---------- ------- ------- ------- -------- -------
7,389 93 27,889 (777) 2,841 1,769 36,502 10,142
------- ---- ---------- ------- ------- ------- -------- -------
9,275 -- -- -- 1,892 -- -- --
9,140 (21) 1,161,098 8,130 2,292 19,592 217,765 26,401
-- (1) (9,581)(W) -- -- 88@ -- --
-- -- (417) (6) -- -- -- --
------- ---- ---------- ------- ------- ------- -------- -------
18,415 (22) 1,151,100 8,124 4,184 19,680 217,765 26,401
------- ---- ---------- ------- ------- ------- -------- -------
36,316 436 876,796 22,926 4,918 24,049 274,628 55,584
-- -- -- -- -- (3) -- --
-- -- 121 2 -- -- -- --
------- ---- ---------- ------- ------- ------- -------- -------
36,316 436 876,917 22,928 4,918 24,046 274,628 55,584
------- ---- ---------- ------- ------- ------- -------- -------
54,731 414 2,028,017 31,052 9,102 43,726 492,393 81,985
------- ---- ---------- ------- ------- ------- -------- -------
$62,120 $507 $2,055,906 $30,275 $11,943 $45,495 $528,895 $92,127
======= ==== ========== ======= ======= ======= ======== =======
</Table>
269
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FLOATING
RATE FOCUS
FUND FUND
-------- -------
INVESTMENT INCOME:
Dividends................................................. $ -- $ 1,245
Interest.................................................. 87,641 25
Securities lending........................................ -- 1
Less: Foreign tax withheld................................ -- (38)
------- -------
Total investment income, net............................ 87,641 1,233
------- -------
EXPENSES:
Investment advisory and management fees................... 7,534 760
Transfer agent fees....................................... 704 195
Distribution fees
Class A................................................. 1,909 115
Class B................................................. 208 144
Class C................................................. 3,882 150
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 12 18
Accounting services....................................... 185 12
Registration and filing fees.............................. 224 44
Board of Directors' fees.................................. 10 1
Other expenses............................................ 365 54
------- -------
Total expenses (before waivers and fees paid
indirectly)............................................ 15,033 1,493
Expense waivers........................................... (5,913) (136)
Transfer agent fee waivers................................ -- --
Commission recapture...................................... -- (14)
Custodian fee offset...................................... (6) --
------- -------
Total waivers and fees paid indirectly.................. (5,919) (150)
------- -------
Total expenses, net..................................... 9,114 1,343
------- -------
Net investment income (loss).............................. 78,527 (110)
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Capital gain distribution received from underlying
affiliated funds........................................ -- --
Net realized gain (loss) on investments................... 72 9,786
Net realized gain (loss) on futures, options and swap
contracts............................................... -- --
Net realized gain (loss) on foreign currency
transactions............................................ 13 (4)
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... 85 9,782
------- -------
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. (4,017) (4,064)
Net unrealized appreciation (depreciation) of futures,
options and swap contracts.............................. -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... 31 (2)
------- -------
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. (3,986) (4,066)
------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... (3,901) 5,716
------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $74,626 $ 5,606
======= =======
</Table>
* Relates to investments in affiliated investment companies.
# From July 31, 2006 (Commencement of operations) through October 31, 2006.
The accompanying notes are an integral part of these financial statements.
270
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GROWTH GROWTH
COMMUNICATIONS FINANCIAL HEALTH LEADERS TECHNOLOGY ALLOCATION GROWTH OPPORTUNITIES
FUND SERVICES FUND FUND FUND FUND FUND* FUND FUND
-------------- ------------- ------- -------- ---------- ---------- -------- -------------
$ 817 $ 556 $ 5,833 $ 8,437 $ 309 $ 6,093 $ 10,846 $ 7,366
34 41 617 703 27 -- 1,070 1,305
42 9 184 233 5 -- 317 1,316
(53) (60) (200) (797) (25) -- (320) (293)
------- ------ ------- -------- ------ ------- -------- --------
840 546 6,434 8,576 316 6,093 11,913 9,694
------- ------ ------- -------- ------ ------- -------- --------
287 243 6,046 5,827 577 1,028 9,397 8,288
85 63 1,267 2,136 336 935 2,253 1,842
50 41 666 1,074 80 734 1,760 799
37 36 761 793 131 896 470 287
42 33 835 708 115 1,433 876 365
-- -- -- -- -- -- 180 370
-- -- -- -- -- -- 725 1,453
-- -- -- -- -- -- 179 224
-- -- -- -- -- -- 42 55
31 13 41 214 42 1 16 160
5 4 96 112 9 53 150 68
46 39 69 71 56 106 177 157
1 1 10 11 1 8 21 17
28 24 294 322 40 242 675 566
------- ------ ------- -------- ------ ------- -------- --------
612 497 10,085 11,268 1,387 5,436 16,921 14,651
(225) (169) (106) (276) (283) (410) (87) (801)
(5) (4) (24) (150) (138) -- (26) (532)
(9) (2) (28) (157) (18) -- (228) (253)
(2) -- (2) (2) -- -- (3) (20)
------- ------ ------- -------- ------ ------- -------- --------
(241) (175) (160) (585) (439) (410) (344) (1,606)
------- ------ ------- -------- ------ ------- -------- --------
371 322 9,925 10,683 948 5,026 16,577 13,045
------- ------ ------- -------- ------ ------- -------- --------
469 224 (3,491) (2,107) (632) 1,067 (4,664) (3,351)
------- ------ ------- -------- ------ ------- -------- --------
-- -- -- -- -- 8,807 -- --
3,653 2,136 32,123 36,445 4,921 7,932 91,449 91,769
-- -- -- -- -- -- -- --
(11) 2 (5) (176) (1) -- (15) (9)
------- ------ ------- -------- ------ ------- -------- --------
3,642 2,138 32,118 36,269 4,920 16,739 91,434 91,760
------- ------ ------- -------- ------ ------- -------- --------
(1,715) 2,246 56,355 71,294 2,424 42,499 (13,106) 40,736
-- -- -- -- -- -- -- --
1 1 19 38 -- -- -- 4
------- ------ ------- -------- ------ ------- -------- --------
(1,714) 2,247 56,374 71,332 2,424 42,499 (13,106) 40,740
------- ------ ------- -------- ------ ------- -------- --------
1,928 4,385 88,492 107,601 7,344 59,238 78,328 132,500
------- ------ ------- -------- ------ ------- -------- --------
$ 2,397 $4,609 $85,001 $105,494 $6,712 $60,305 $ 73,664 $129,149
======= ====== ======= ======== ====== ======= ======== ========
</Table>
271
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
HIGH INCOME
YIELD ALLOCATION
FUND FUND*
------- ----------
INVESTMENT INCOME:
Dividends................................................. $ -- $1,720
Interest.................................................. 23,803 --
Securities lending........................................ 198 --
Less: Foreign tax withheld................................ -- --
------- ------
Total investment income, net............................ 24,001 1,720
------- ------
EXPENSES:
Investment advisory and management fees................... 2,234 70
Transfer agent fees....................................... 649 48
Distribution fees
Class A................................................. 473 54
Class B................................................. 413 49
Class C................................................. 435 84
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 67 1
Accounting services....................................... 47 4
Registration and filing fees.............................. 60 40
Board of Directors' fees.................................. 5 1
Other expenses............................................ 191 29
------- ------
Total expenses (before waivers and fees paid
indirectly)............................................ 4,574 380
Expense waivers........................................... (500) (74)
Transfer agent fee waivers................................ -- --
Commission recapture...................................... -- --
Custodian fee offset...................................... (15) --
------- ------
Total waivers and fees paid indirectly.................. (515) (74)
------- ------
Total expenses, net..................................... 4,059 306
------- ------
Net investment income (loss).............................. 19,942 1,414
------- ------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Capital gain distribution received from underlying
affiliated funds........................................ -- 63
Net realized gain (loss) on investments................... (3,842) (425)
Net realized gain (loss) on futures, options and swap
contracts............................................... 101(W) --
Net realized gain (loss) on foreign currency
transactions............................................ (43) --
------- ------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (3,784) (362)
------- ------
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 10,466 486
Net unrealized appreciation (depreciation) of futures,
options and swap contracts.............................. -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... 183 --
------- ------
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 10,649 486
------- ------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... 6,865 124
------- ------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $26,807 $1,538
======= ======
</Table>
* Relates to investments in affiliated investment companies.
# From July 31, 2006 (Commencement of operations) through October 31, 2006.
(W) Realized losses on written options were $3 for the High Yield Fund.
The accompanying notes are an integral part of these financial statements.
272
- --------------------------------------------------------------------------------
<Table>
<Caption>
INFLATION INTERNATIONAL INTERNATIONAL INTERNATIONAL MIDCAP MIDCAP
INCOME PLUS CAPITAL OPPORTUNITIES SMALL MIDCAP GROWTH VALUE
FUND FUND APPRECIATION FUND FUND COMPANY FUND FUND FUND# FUND
------ --------- ----------------- ------------- ------------- -------- ------ -------
$ -- $ -- $ 4,927 $ 5,218 $ 3,418 $ 27,907 $ 14 $ 6,471
4,566 48,264 539 432 219 5,200 10 253
-- -- 186 175 207 301 -- 56
1 -- (571) (560) (400) (179) -- (138)
------ -------- ------- ------- ------- -------- ---- -------
4,567 48,264 5,081 5,265 3,444 33,229 24 6,642
------ -------- ------- ------- ------- -------- ---- -------
434 5,096 3,088 1,862 1,608 21,918 21 3,915
89 855 712 691 234 5,903 -- 1,156
80 857 430 344 133 4,555 6 752
63 1,067 283 274 91 4,755 1 627
56 3,092 368 192 152 5,196 1 640
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
22 18 191 160 149 50 2 28
11 141 49 34 25 473 -- 73
48 140 83 56 54 152 7 56
1 15 5 3 3 48 -- 8
44 470 160 101 89 1,385 7 226
------ -------- ------- ------- ------- -------- ---- -------
848 11,751 5,369 3,717 2,538 44,435 45 7,481
(142) (604) (252) (109) (113) -- (12) (236)
-- -- (16) (56) (10) -- -- --
-- -- (106) (58) (36) (799) -- (60)
(2) (8) (5) -- (1) (11) -- (4)
------ -------- ------- ------- ------- -------- ---- -------
(144) (612) (379) (223) (160) (810) (12) (300)
------ -------- ------- ------- ------- -------- ---- -------
704 11,139 4,990 3,494 2,378 43,625 33 7,181
------ -------- ------- ------- ------- -------- ---- -------
3,863 37,125 91 1,771 1,066 (10,396) (9) (539)
------ -------- ------- ------- ------- -------- ---- -------
-- -- -- -- -- -- -- --
(332) (16,458) 29,733 23,101 24,531 493,170 81 59,455
127 675 -- -- -- -- -- --
(48) (246) (139) (308) 2,431 (100) -- 9
------ -------- ------- ------- ------- -------- ---- -------
(253) (16,029) 29,594 22,793 26,962 493,070 81 59,464
------ -------- ------- ------- ------- -------- ---- -------
1,373 (6,270) 35,015 17,092 13,630 (86,308) 573 29,760
(64) (67) -- -- -- -- -- --
(40) (28) 1 (41) (2,385) 3 -- (1)
------ -------- ------- ------- ------- -------- ---- -------
1,269 (6,365) 35,016 17,051 11,245 (86,305) 573 29,759
------ -------- ------- ------- ------- -------- ---- -------
1,016 (22,394) 64,610 39,844 38,207 406,765 654 89,223
------ -------- ------- ------- ------- -------- ---- -------
$4,879 $ 14,731 $64,701 $41,615 $39,273 $396,369 $645 $88,684
====== ======== ======= ======= ======= ======== ==== =======
</Table>
273
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY RETIREMENT
MARKET INCOME
FUND FUND*
------- ----------
INVESTMENT INCOME:
Dividends................................................. $ -- $ 16
Interest.................................................. 12,149 --
Securities lending........................................ -- --
Less: Foreign tax withheld................................ -- --
------- ----
Total investment income, net............................ 12,149 16
------- ----
EXPENSES:
Investment advisory and management fees................... 1,242 1
Transfer agent fees....................................... 625 --
Distribution fees
Class A................................................. 468 1
Class B................................................. 283 1
Class C................................................. 170 1
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 11 1
Accounting services....................................... 39 --
Registration and filing fees.............................. 81 63
Board of Directors' fees.................................. 4 --
Other expenses............................................ 113 20
------- ----
Total expenses (before waivers and fees paid
indirectly)............................................ 3,036 88
Expense waivers........................................... (404) (84)
Transfer agent fee waivers................................ -- --
Commission recapture...................................... -- --
Custodian fee offset...................................... (1) --
------- ----
Total waivers and fees paid indirectly.................. (405) (84)
------- ----
Total expenses, net..................................... 2,631 4
------- ----
Net investment income (loss).............................. 9,518 12
------- ----
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Capital gain distribution received from underlying
affiliated funds........................................ -- --
Net realized gain (loss) on investments................... -- --
Net realized gain (loss) on futures, options and swap
contracts............................................... -- --
Net realized gain (loss) on foreign currency
transactions............................................ -- --
------- ----
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... -- --
------- ----
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. -- 15
Net unrealized appreciation (depreciation) of futures,
options and swap contracts.............................. -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- --
------- ----
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. -- 15
------- ----
NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... -- 15
------- ----
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 9,518 $ 27
======= ====
</Table>
* Relates to investments in affiliated investment companies.
# From July 31, 2006 (Commencement of operations) through October 31, 2006.
The accompanying notes are an integral part of these financial statements.
274
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECT SELECT SELECT SELECT SHORT SMALL SMALLCAP
MIDCAP MIDCAP SMALLCAP SMALLCAP DURATION COMPANY GROWTH STOCK
GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND# FUND FUND FUND FUND
----------- ---------- ----------- ----------- -------- -------- -------- --------
$ 223 $ 632 $ 42 $ 78 $ -- $ 1,147 $ 3,293 $ 22,235
74 104 16 16 5,978 482 694 260
-- -- -- -- -- 234 525 377
-- (1) -- -- -- (40) (2) (403)
------ ------ ------ ------ ------ -------- ------- --------
297 735 58 94 5,978 1,823 4,510 22,469
------ ------ ------ ------ ------ -------- ------- --------
427 523 91 40 743 3,080 3,455 9,137
83 77 5 -- 99 879 707 3,915
52 91 16 9 67 453 346 1,761
34 31 4 1 77 574 188 2,539
32 52 5 1 177 470 215 1,721
-- -- -- -- -- -- 148 --
-- -- -- -- -- -- 304 --
-- -- -- -- -- -- 153 --
-- -- -- -- -- -- 60 --
27 39 20 5 10 67 24 117
7 8 1 1 21 57 42 199
58 76 64 7 52 54 108 87
1 1 -- -- 2 6 6 20
28 35 44 6 80 168 272 669
------ ------ ------ ------ ------ -------- ------- --------
749 933 250 70 1,328 5,808 6,028 20,165
(66) (88) (104) (6) (130) (250) (290) (1,188)
(5) 1 -- -- -- (17) (79) (150)
-- -- -- -- -- (125) (77) (251)
(13) (25) (2) -- (2) (5) (3) (3)
------ ------ ------ ------ ------ -------- ------- --------
(84) (112) (106) (6) (132) (397) (449) (1,592)
------ ------ ------ ------ ------ -------- ------- --------
665 821 144 64 1,196 5,411 5,579 18,573
------ ------ ------ ------ ------ -------- ------- --------
(368) (86) (86) 30 4,782 (3,588) (1,069) 3,896
------ ------ ------ ------ ------ -------- ------- --------
-- -- -- -- -- -- -- --
2,239 2,875 (244) 114 (707) 70,360 26,154 179,978
-- -- -- 12 -- -- 569 (167)
-- -- -- -- -- (15) -- (34)
------ ------ ------ ------ ------ -------- ------- --------
2,239 2,875 (244) 126 (707) 70,345 26,723 179,777
------ ------ ------ ------ ------ -------- ------- --------
1,006 5,546 1,203 1,311 1,324 (14,828) 9,631 (15,914)
-- -- -- 5 -- -- 423 --
-- -- -- -- -- -- -- 21
------ ------ ------ ------ ------ -------- ------- --------
1,006 5,546 1,203 1,316 1,324 (14,828) 10,054 (15,893)
------ ------ ------ ------ ------ -------- ------- --------
3,245 8,421 959 1,442 617 55,517 36,777 163,884
------ ------ ------ ------ ------ -------- ------- --------
$2,877 $8,335 $ 873 $1,472 $5,399 $51,929 $35,708 $167,780
====== ====== ====== ====== ====== ======== ======= ========
</Table>
275
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TARGET TARGET TARGET
RETIREMENT RETIREMENT RETIREMENT
2010 FUND* 2020 FUND* 2030 FUND*
---------- ---------- ----------
INVESTMENT INCOME:
Dividends................................................. $ 28 $ 17 $ 6
Interest.................................................. -- -- --
Securities lending........................................ -- -- --
Less: Foreign tax withheld................................ -- -- --
---- ---- ----
Total investment income, net............................ 28 17 6
---- ---- ----
EXPENSES:
Investment advisory and management fees................... 2 2 1
Transfer agent fees....................................... 1 2 2
Distribution fees
Class A................................................. 2 2 1
Class B................................................. 1 1 1
Class C................................................. 1 1 1
Class H................................................. -- -- --
Class L................................................. -- -- --
Class M................................................. -- -- --
Class N................................................. -- -- --
Custodian fees............................................ 1 1 1
Accounting services....................................... -- -- --
Registration and filing fees.............................. 61 61 62
Board of Directors' fees.................................. -- -- --
Other expenses............................................ 21 25 18
---- ---- ----
Total expenses (before waivers and fees paid
indirectly)............................................ 90 95 87
Expense waivers........................................... (84) (88) (83)
Transfer agent fee waivers................................ -- -- --
Commission recapture...................................... -- -- --
Custodian fee offset...................................... -- -- --
---- ---- ----
Total waivers and fees paid indirectly.................. (84) (88) (83)
---- ---- ----
Total expenses, net..................................... 6 7 4
---- ---- ----
Net investment income (loss).............................. 22 10 2
---- ---- ----
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Capital gain distribution received from underlying
affiliated funds........................................ -- 4 1
Net realized gain (loss) on investments................... -- 9 --
Net realized gain (loss) on futures, options and swap
contracts............................................... -- -- --
Net realized gain (loss) on foreign currency
transactions............................................ -- -- --
---- ---- ----
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS
AND SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... -- 13 1
---- ---- ----
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAP CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 46 82 83
Net unrealized appreciation (depreciation) of futures,
options and swap contracts.............................. -- -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- -- --
---- ---- ----
NET CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FUTURES, OPTIONS AND SWAPS CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 46 82 83
---- ---- ----
NET GAIN (LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND SWAP
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............... 46 95 84
---- ---- ----
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 68 $105 $ 86
==== ==== ====
</Table>
* Relates to investments in affiliated investment companies.
# From July 31, 2006 (Commencement of operations) through October 31, 2006.
(W) Realized losses on written options were $8 for the Total Return Bond Fund.
The accompanying notes are an integral part of these financial statements.
276
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE TAX-FREE TAX-FREE TAX-FREE TOTAL U.S. GOVERNMENT VALUE
CALIFORNIA MINNESOTA NATIONAL NEW YORK RETURN SECURITIES VALUE OPPORTUNITIES
FUND FUND FUND FUND BOND FUND FUND FUND FUND
---------- --------- -------- -------- --------- --------------- ------- -------------
$ -- $ -- $ -- $ -- $ 83 $ -- $ 3,207 $ 4,952
1,025 1,685 5,760 715 39,132 11,984 183 172
-- -- -- -- 288 40 -- 84
-- -- -- -- -- -- (1) (189)
------ ------ ------ ---- ------- ------- ------- -------
1,025 1,685 5,760 715 39,503 12,024 3,389 5,019
------ ------ ------ ---- ------- ------- ------- -------
123 252 847 85 4,701 1,514 1,198 2,302
7 8 48 2 1,301 218 225 350
46 15 142 28 906 112 177 222
15 8 68 18 780 188 109 164
23 4 105 26 726 90 113 168
-- 1 2 -- -- 23 -- 43
-- 7 20 -- -- 81 -- 77
-- 1 13 -- -- 24 -- 74
-- 2 4 -- -- 8 -- 21
5 5 7 4 42 10 9 24
4 1 12 2 120 12 24 35
5 15 88 6 94 92 52 108
1 1 2 -- 11 3 3 4
21 30 71 22 336 122 83 153
------ ------ ------ ---- ------- ------- ------- -------
250 350 1,429 193 9,017 2,497 1,993 3,745
(21) (44) (175) (28) (52) (179) (16) (155)
-- -- -- -- -- -- (3) (6)
-- -- -- -- -- -- (15) (23)
(3) (3) (4) (3) (30) (3) -- (1)
------ ------ ------ ---- ------- ------- ------- -------
(24) (47) (179) (31) (82) (182) (34) (185)
------ ------ ------ ---- ------- ------- ------- -------
226 303 1,250 162 8,935 2,315 1,959 3,560
------ ------ ------ ---- ------- ------- ------- -------
799 1,382 4,510 553 30,568 9,709 1,430 1,459
------ ------ ------ ---- ------- ------- ------- -------
-- -- -- -- -- -- -- --
(5) 197 372 85 (7,921) (6,372) 17,037 20,734
-- -- -- -- 30(W) 133 -- --
-- -- -- -- (809) 32 -- (6)
------ ------ ------ ---- ------- ------- ------- -------
(5) 197 372 85 (8,700) (6,207) 17,037 20,728
------ ------ ------ ---- ------- ------- ------- -------
573 235 2,682 260 12,774 4,123 10,073 28,126
-- -- -- -- -- 38 -- --
-- -- -- -- (134) -- -- --
------ ------ ------ ---- ------- ------- ------- -------
573 235 2,682 260 12,640 4,161 10,073 28,126
------ ------ ------ ---- ------- ------- ------- -------
568 432 3,054 345 3,940 (2,046) 27,110 48,854
------ ------ ------ ---- ------- ------- ------- -------
$1,367 $1,814 $7,564 $898 $34,508 $ 7,663 $28,540 $50,313
====== ====== ====== ==== ======= ======= ======= =======
</Table>
277
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADVISERS FUND AGGRESSIVE GROWTH ALLOCATION FUND*
----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss).................. $ 28,925 $ 32,907 $ (960) $ (503)
Net realized gain (loss) on investments,
futures, options and swap contracts and
foreign currency transactions............... 192,670 122,160 5,650 544
Net unrealized appreciation (depreciation) of
investments, futures, options and swap
contracts and foreign currency
transactions................................ (37,019) 3,416 16,350 4,848
---------- ---------- -------- --------
Net increase (decrease) in net assets
resulting from operations................... 184,576 158,483 21,040 4,889
---------- ---------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A..................................... (21,102) (27,412) (498) (35)
Class B..................................... (4,044) (5,973) (30) (1)
Class C..................................... (2,643) (3,839) (51) (2)
Class E..................................... -- -- -- --
Class H..................................... -- -- -- --
Class I..................................... -- -- -- --
Class L..................................... -- -- -- --
Class M..................................... -- -- -- --
Class N..................................... -- -- -- --
Class Y..................................... (381) (344) -- --
Class Z..................................... -- -- -- --
From net realized gain on investments
Class A..................................... -- -- (33) (1)
Class B..................................... -- -- (12) --
Class C..................................... -- -- (19) --
Class E..................................... -- -- -- --
Class H..................................... -- -- -- --
Class I..................................... -- -- -- --
Class L..................................... -- -- -- --
Class M..................................... -- -- -- --
Class N..................................... -- -- -- --
Class Y..................................... -- -- -- --
Class Z..................................... -- -- -- --
---------- ---------- -------- --------
Total distributions......................... (28,170) (37,568) (643) (39)
---------- ---------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Class A..................................... (213,361) (392,975) 46,720 43,217
Class B..................................... (129,449) (139,987) 9,636 14,732
Class C..................................... (54,492) (118,673) 13,717 25,790
Class E..................................... -- -- -- --
Class H..................................... -- -- -- --
Class I..................................... -- -- 10 --
Class L..................................... -- -- -- --
Class M..................................... -- -- -- --
Class N..................................... -- -- -- --
Class Y..................................... 929 1,012 -- --
Class Z..................................... -- -- -- --
---------- ---------- -------- --------
Net increase (decrease) from capital share
transactions................................ (396,373) (650,623) 70,083 83,739
---------- ---------- -------- --------
Net increase (decrease) in net assets......... (239,967) (529,708) 90,480 88,589
NET ASSETS:
Beginning of period........................... 1,929,353 2,459,061 110,960 22,371
---------- ---------- -------- --------
End of period................................. $1,689,386 $1,929,353 $201,440 $110,960
========== ========== ======== ========
Accumulated undistributed (distribution in
excess of) net investment income.............. $ 3,002 $ 2,060 $ -- $ --
========== ========== ======== ========
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
278
- --------------------------------------------------------------------------------
<Table>
<Caption>
BALANCED ALLOCATION FUND* BALANCED INCOME FUND CAPITAL APPRECIATION FUND
----------------------------------- -------------------- -----------------------------------
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 31, 2006** FOR THE YEAR FOR THE YEAR
ENDED ENDED THROUGH ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ----------------
$ 7,389 $ 2,838 $ 93 $ 27,889 $ 4,278
18,415 890 (22) 1,151,100 1,118,465
36,316 11,897 436 876,917 274,627
-------- -------- ------- ----------- ----------
62,120 15,625 507 2,055,906 1,397,370
-------- -------- ------- ----------- ----------
(6,476) (1,883) (57) -- --
(1,012) (179) (1) -- --
(1,529) (268) (1) -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- (1) -- --
-- -- -- -- --
(535) -- -- (572,137) --
(147) -- -- (164,902) --
(208) -- -- (185,821) --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- (21,922) --
-- -- -- -- --
-------- -------- ------- ----------- ----------
(9,907) (2,330) (60) (944,782) --
-------- -------- ------- ----------- ----------
158,776 187,765 11,094 2,499,576 1,010,045
28,305 51,526 293 104,641 (53,909)
55,648 69,611 387 931,993 230,865
-- -- -- -- --
-- -- -- -- --
348 -- -- 5,082 --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- 101 133,818 97,646
-- -- -- -- --
-------- -------- ------- ----------- ----------
243,077 308,902 11,875 3,675,110 1,284,647
-------- -------- ------- ----------- ----------
295,290 322,197 12,322 4,786,234 2,682,017
438,745 116,548 -- 9,782,815 7,100,798
-------- -------- ------- ----------- ----------
$734,035 $438,745 $12,322 $14,569,049 $9,782,815
======== ======== ======= =========== ==========
$ 495 $ 559 $ 42 $ 24,853 $ 7
======== ======== ======= =========== ==========
<Caption>
CAPITAL APPRECIATION II FUND
-----------------------------------
FOR THE PERIOD
FOR THE YEAR APRIL 29, 2005**
ENDED THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
$ (777) $ (121)
8,124 1,147
22,928 1,410
-------- -------
30,275 2,436
-------- -------
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
(813) --
(92) --
(283) --
-- --
-- --
-- --
-- --
-- --
-- --
(4) --
-- --
-------- -------
(1,192) --
-------- -------
164,838 55,083
20,583 6,190
70,917 19,141
-- --
-- --
3,203 --
-- --
-- --
-- --
(254) 300
-- --
-------- -------
259,287 80,714
-------- -------
288,370 83,150
83,150 --
-------- -------
$371,520 $83,150
======== =======
$ (194) $ --
======== =======
</Table>
279
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
CONSERVATIVE ALLOCATION FUND* DISCIPLINED EQUITY FUND
----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)........................ $ 2,841 $ 1,781 $ 1,769 $ 2,455
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions...................................... 4,184 1,108 19,680 30,446
Net unrealized appreciation (depreciation) of
investments, futures, options and swap contracts
and foreign currency transactions................. 4,918 354 24,046 4,992
-------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations........................................ 11,943 3,243 45,495 37,893
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A........................................... (2,296) (1,112) (305) (1,780)
Class B........................................... (371) (127) -- (24)
Class C........................................... (698) (262) -- (42)
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... -- -- (573) (346)
Class Z........................................... -- -- -- --
From net realized gain on investments
Class A........................................... (772) -- -- --
Class B........................................... (162) -- -- --
Class C........................................... (301) -- -- --
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... -- -- -- --
Class Z........................................... -- -- -- --
-------- -------- -------- --------
Total distributions............................... (4,600) (1,501) (878) (2,192)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Class A........................................... 18,487 35,327 (42,915) (55,312)
Class B........................................... 5,262 9,320 (8,227) (9,136)
Class C........................................... 6,806 16,401 (7,938) (11,195)
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... 10 -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... -- -- 73,479 58,623
Class Z........................................... -- -- -- --
-------- -------- -------- --------
Net increase (decrease) from capital share
transactions...................................... 30,565 61,048 14,399 (17,020)
-------- -------- -------- --------
Net increase (decrease) in net assets............... 37,908 62,790 59,016 18,681
NET ASSETS:
Beginning of period................................. 112,511 49,721 364,799 346,118
-------- -------- -------- --------
End of period....................................... $150,419 $112,511 $423,815 $364,799
======== ======== ======== ========
Accumulated undistributed (distribution in excess of)
net investment income............................... $ 262 $ 328 $ 1,454 $ 600
======== ======== ======== ========
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
280
- --------------------------------------------------------------------------------
<Table>
<Caption>
DIVIDEND AND GROWTH FUND EQUITY INCOME FUND FLOATING RATE FUND
----------------------------------- ----------------------------------- -----------------------------------
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR APRIL 29, 2005**
ENDED ENDED ENDED ENDED ENDED THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 36,502 $ 30,193 $ 10,142 $ 8,781 $ 78,527 $ 2,828
217,765 114,099 26,401 1,270 85 40
274,628 102,952 55,584 20,042 (3,986) (284)
---------- ---------- -------- -------- ---------- --------
528,895 247,244 92,127 30,093 74,626 2,584
---------- ---------- -------- -------- ---------- --------
(30,971) (26,573) (9,508) (6,785) (50,770) (1,821)
(1,759) (1,659) (503) (367) (1,203) (61)
(1,845) (1,776) (793) (749) (22,840) (785)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- (276) --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(2,148) (1,670) (86) (17) (2,763) (158)
-- -- -- -- -- --
(83,984) (19,192) (1,087) (457) -- --
(13,875) (3,381) (97) (40) -- --
(11,357) (2,925) (149) (93) -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(4,558) (723) (2) (1) -- --
-- -- -- -- -- --
---------- ---------- -------- -------- ---------- --------
(150,497) (57,899) (12,225) (8,509) (77,852) (2,825)
---------- ---------- -------- -------- ---------- --------
230,196 131,765 84,470 150,915 1,332,988 169,576
(19,449) 386 3,668 14,075 36,573 5,656
1,114 (16,919) 131 6,170 737,213 92,857
-- -- -- -- -- --
-- -- -- -- -- --
10 -- 106 -- 61,874 --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
3,558 39,561 6,044 386 40,849 10,068
-- -- -- -- -- --
---------- ---------- -------- -------- ---------- --------
215,429 154,793 94,419 171,546 2,209,497 278,157
---------- ---------- -------- -------- ---------- --------
593,827 344,138 174,321 193,130 2,206,271 277,916
2,849,011 2,504,873 467,812 274,682 277,916 --
---------- ---------- -------- -------- ---------- --------
$3,442,838 $2,849,011 $642,133 $467,812 $2,484,187 $277,916
========== ========== ======== ======== ========== ========
$ 920 $ 1,335 $ 665 $ 1,452 $ 2,092 $ 89
========== ========== ======== ======== ========== ========
<Caption>
FOCUS FUND
-----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
$ (110) $ 385
9,782 6,980
(4,066) 3,890
-------- --------
5,606 11,255
-------- --------
(316) (31)
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
(5) (3)
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-------- --------
(321) (34)
-------- --------
(13,031) (24,122)
(2,988) (5,339)
(4,749) (9,446)
-- --
-- --
-- --
-- --
-- --
-- --
(21) (419)
-- --
-------- --------
(20,789) (39,326)
-------- --------
(15,504) (28,105)
82,433 110,538
-------- --------
$ 66,929 $ 82,433
======== ========
$ -- $ 321
======== ========
</Table>
281
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL COMMUNICATIONS FUND GLOBAL FINANCIAL SERVICES FUND
----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)........................ $ 469 $ 262 $ 224 $ 143
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions...................................... 3,642 1,458 2,138 960
Net unrealized appreciation (depreciation) of
investments, futures, options and swap contracts
and foreign currency transactions................. (1,714) 2,275 2,247 1,176
------- ------- ------- -------
Net increase (decrease) in net assets resulting from
operations........................................ 2,397 3,995 4,609 2,279
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A........................................... (265) (95) (136) (158)
Class B........................................... (29) (5) (13) (17)
Class C........................................... (27) (4) (8) (13)
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... (12) (2) (10) (10)
Class Z........................................... -- -- -- --
From net realized gain on investments
Class A........................................... -- -- -- --
Class B........................................... -- -- -- --
Class C........................................... -- -- -- --
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... -- -- -- --
Class Z........................................... -- -- -- --
------- ------- ------- -------
Total distributions............................... (333) (106) (167) (198)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Class A........................................... 53 4,186 4,383 (369)
Class B........................................... 907 844 27 (223)
Class C........................................... 2,063 1,012 711 48
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... 237 386 11 56
Class Z........................................... -- -- -- --
------- ------- ------- -------
Net increase (decrease) from capital share
transactions...................................... 3,260 6,428 5,132 (488)
------- ------- ------- -------
Net increase (decrease) in net assets............... 5,324 10,317 9,574 1,593
NET ASSETS:
Beginning of period................................. 22,204 11,887 20,647 19,054
------- ------- ------- -------
End of period....................................... $27,528 $22,204 $30,221 $20,647
======= ======= ======= =======
Accumulated undistributed (distribution in excess of)
net investment income............................... $ 368 $ 253 $ 180 $ 122
======= ======= ======= =======
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
282
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL HEALTH FUND GLOBAL LEADERS FUND GLOBAL TECHNOLOGY FUND
----------------------------------- ----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ (3,491) $ (2,905) $ (2,107) $ 1,880 $ (632) $ (169)
32,118 34,223 36,269 68,810 4,920 5,112
56,374 29,513 71,332 (58,342) 2,424 1,258
-------- -------- -------- -------- ------- --------
85,001 60,831 105,494 12,348 6,712 6,201
-------- -------- -------- -------- ------- --------
-- -- (390) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- (529) -- -- --
-- -- -- -- -- --
(12,743) (8,795) (4,725) -- -- --
(4,508) (3,502) (945) -- -- --
(4,593) (3,266) (851) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(9,979) (64) (936) -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- ------- --------
(31,823) (15,627) (8,376) -- -- --
-------- -------- -------- -------- ------- --------
135,221 21,305 (62,248) (55,206) 2,124 (7,218)
3,929 (808) (14,964) (12,061) (1,251) (1,925)
19,185 5,459 (15,195) (16,831) (509) (4,483)
-- -- -- -- -- --
-- -- -- -- -- --
784 -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
6,834 152,727 69,172 23,402 56 (369)
-- -- -- -- -- --
-------- -------- -------- -------- ------- --------
165,953 178,683 (23,235) (60,696) 420 (13,995)
-------- -------- -------- -------- ------- --------
219,131 223,887 73,883 (48,348) 7,132 (7,794)
523,283 299,396 654,153 702,501 51,679 59,473
-------- -------- -------- -------- ------- --------
$742,414 $523,283 $728,036 $654,153 $58,811 $ 51,679
======== ======== ======== ======== ======= ========
$ -- $ -- $ (1,589) $ 918 $ -- $ --
======== ======== ======== ======== ======= ========
<Caption>
GROWTH ALLOCATION FUND*
-----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
$ 1,067 $ 304
16,739 320
42,499 14,053
-------- --------
60,305 14,677
-------- --------
(2,497) (223)
(354) (34)
(533) (49)
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
(180) --
(58) --
(89) --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-------- --------
(3,711) (306)
-------- --------
132,987 153,777
32,436 49,107
65,914 75,477
-- --
-- --
10 --
-- --
-- --
-- --
-- --
-- --
-------- --------
231,347 278,361
-------- --------
287,941 292,732
371,409 78,677
-------- --------
$659,350 $371,409
======== ========
$ -- $ --
======== ========
</Table>
283
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH FUND GROWTH OPPORTUNITIES FUND
----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)........................ $ (4,664) $ (2,884) $ (3,351) $ (2,756)
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions...................................... 91,434 65,368 91,760 144,342
Net unrealized appreciation (depreciation) of
investments, futures, options and swap contracts
and foreign currency transactions................. (13,106) 5,174 40,740 (5,473)
---------- ---------- ---------- --------
Net increase (decrease) in net assets resulting from
operations........................................ 73,664 67,658 129,149 136,113
---------- ---------- ---------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A........................................... -- -- -- --
Class B........................................... -- -- -- --
Class C........................................... -- -- -- --
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... -- -- -- --
Class Z........................................... -- -- -- --
From net realized gain on investments
Class A........................................... -- -- (16,437) --
Class B........................................... -- -- (1,683) --
Class C........................................... -- -- (1,629) --
Class E........................................... -- -- -- --
Class H........................................... -- -- (3,075) --
Class I........................................... -- -- -- --
Class L........................................... -- -- (40,032) --
Class M........................................... -- -- (1,828) --
Class N........................................... -- -- (437) --
Class Y........................................... -- -- (2,034) --
Class Z........................................... -- -- (2,353) --
---------- ---------- ---------- --------
Total distributions............................... -- -- (69,508) --
---------- ---------- ---------- --------
CAPITAL SHARE TRANSACTIONS:
Class A........................................... 30,454 216,074 180,515 148,576
Class B........................................... (4,655) 11,547 12,706 5,987
Class C........................................... (1,589) 31,324 27,322 4,571
Class E........................................... -- -- -- --
Class H........................................... (5,667) (5,076) (5,285) (8,150)
Class I........................................... 1,972 -- 73 --
Class L........................................... (40,151) (36,168) (18,780) (54,451)
Class M........................................... (4,227) (3,691) (2,071) (3,811)
Class N........................................... (799) (259) (208) (520)
Class Y........................................... 74,184 38,875 42,388 21,478
Class Z........................................... -- -- (548) (4,905)
---------- ---------- ---------- --------
Net increase (decrease) from capital share
transactions...................................... 49,522 252,626 236,112 108,775
---------- ---------- ---------- --------
Net increase (decrease) in net assets............... 123,186 320,284 295,753 244,888
NET ASSETS:
Beginning of period................................. 1,155,874 835,590 945,612 700,724
---------- ---------- ---------- --------
End of period....................................... $1,279,060 $1,155,874 $1,241,365 $945,612
========== ========== ========== ========
Accumulated undistributed (distribution in excess
of) net investment income......................... $ -- $ -- $ -- $ --
========== ========== ========== ========
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
284
- --------------------------------------------------------------------------------
<Table>
<Caption>
HIGH YIELD FUND INCOME ALLOCATION FUND* INCOME FUND
----------------------------------- ----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 19,942 $ 20,563 $ 1,414 $ 880 $ 3,863 $ 2,301
(3,784) 8,198 (362) (2) (253) (326)
10,649 (25,299) 486 (758) 1,269 (1,740)
-------- -------- ------- ------- -------- -------
26,807 3,462 1,538 120 4,879 235
-------- -------- ------- ------- -------- -------
(13,101) (13,732) (961) (575) (1,656) (1,399)
(2,531) (3,018) (181) (107) (280) (234)
(2,704) (3,402) (308) (191) (253) (227)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(1,794) (1,366) -- -- (1,607) (494)
-- -- -- -- -- --
-- -- (29) (1) -- (116)
-- -- (7) -- -- (22)
-- -- (12) -- -- (22)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------- -------- ------- ------- -------- -------
(20,130) (21,518) (1,498) (874) (3,796) (2,514)
-------- -------- ------- ------- -------- -------
(2,369) (47,780) 5,906 9,355 7,955 674
(10,799) (14,067) 730 3,192 1,180 694
(11,907) (17,642) 331 3,032 2,883 (167)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- 10 -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(2,158) 10,715 -- -- 43,594 16,873
-- -- -- -- -- --
-------- -------- ------- ------- -------- -------
(27,233) (68,774) 6,977 15,579 55,612 18,074
-------- -------- ------- ------- -------- -------
(20,556) (86,830) 7,017 14,825 56,695 15,795
312,589 399,419 31,934 17,109 56,488 40,693
-------- -------- ------- ------- -------- -------
$292,033 $312,589 $38,951 $31,934 $113,183 $56,488
======== ======== ======= ======= ======== =======
$ 42 $ 291 $ 5 $ 8 $ 54 $ 18
======== ======== ======= ======= ======== =======
<Caption>
INFLATION PLUS FUND
-----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
<
$ 37,125 $ 31,636
(16,029) 4,137
(6,365) (23,029)
---------- ----------
14,731 12,744
---------- ----------
(14,188) (14,269)
(3,582) (3,620)
(10,486) (11,262)
-- --
-- --
-- --
-- --
-- --
-- --
(5,352) (2,800)
-- --
(1,331) (2,567)
(382) (878)
(1,204) (2,606)
-- --
-- --
-- --
-- --
-- --
-- --
(312) (205)
-- --
---------- ----------
(36,837) (38,207)
---------- ----------
(123,445) 111,228
(24,243) 14,456
(118,279) 63,634
-- --
-- --
18 --
-- --
-- --
-- --
46,885 74,962
-- --
---------- ----------
(219,064) 264,280
---------- ----------
(241,170) 238,817
1,003,777 764,960
---------- ----------
$ 762,607 $1,003,777
========== ==========
$ 4,125 $ 852
========== ==========
</Table>
285
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL CAPITAL APPRECIATION FUND INTERNATIONAL OPPORTUNITIES FUND
--------------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
------------------ ------------------ ---------------- ----------------
OPERATIONS:
Net investment income (loss)..................... $ 91 $ 1,163 $ 1,771 $ 304
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions................................... 29,594 2,468 22,793 22,733
Net unrealized appreciation (depreciation) of
investments, futures, options and swap
contracts and foreign currency transactions.... 35,016 2,447 17,051 (1,334)
-------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations................................ 64,701 6,078 41,615 21,703
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A........................................ (526) -- (378) --
Class B........................................ -- -- -- --
Class C........................................ -- -- -- --
Class E........................................ -- -- -- --
Class H........................................ -- -- -- --
Class I........................................ -- -- -- --
Class L........................................ -- -- -- --
Class M........................................ -- -- -- --
Class N........................................ -- -- -- --
Class Y........................................ (654) -- (131) --
Class Z........................................ -- -- -- --
From net realized gain on investments
Class A........................................ (1,438) -- -- --
Class B........................................ (261) -- -- --
Class C........................................ (346) -- -- --
Class E........................................ -- -- -- --
Class H........................................ -- -- -- --
Class I........................................ -- -- -- --
Class L........................................ -- -- -- --
Class M........................................ -- -- -- --
Class N........................................ -- -- -- --
Class Y........................................ (836) -- -- --
Class Z........................................ -- -- -- --
-------- -------- -------- --------
Total distributions............................ (4,061) -- (509) --
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Class A........................................ 49,389 78,629 30,451 178
Class B........................................ 5,639 12,942 (187) (2,994)
Class C........................................ 6,985 16,059 149 (1,269)
Class E........................................ -- -- -- --
Class H........................................ -- -- -- --
Class I........................................ 10 -- -- --
Class L........................................ -- -- -- --
Class M........................................ -- -- -- --
Class N........................................ -- -- -- --
Class Y........................................ (19,973) 43,463 32,628 537
Class Z........................................ -- -- -- --
-------- -------- -------- --------
Net increase (decrease) from capital share
transactions................................... 42,050 151,093 63,041 (3,548)
-------- -------- -------- --------
Net increase (decrease) in net assets............ 102,690 157,171 104,147 18,155
NET ASSETS:
Beginning of period.............................. 257,871 100,700 148,841 130,686
-------- -------- -------- --------
End of period.................................... $360,561 $257,871 $252,988 $148,841
======== ======== ======== ========
Accumulated undistributed (distribution in excess
of) net investment income........................ $ (154) $ 961 $ 1,721 $ 482
======== ======== ======== ========
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
286
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL SMALL COMPANY FUND MIDCAP FUND MIDCAP GROWTH FUND
----------------------------------- ----------------------------------- ------------------
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR JULY 31,
ENDED ENDED ENDED ENDED 2006** THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006
---------------- ---------------- ---------------- ---------------- ----------------
$ 1,066 $ 879 $ (10,396) $ (11,958) $ (9)
26,962 12,016 493,070 489,086 81
11,245 4,039 (86,305) (18,554) 573
-------- -------- ---------- ---------- -------
39,273 16,934 396,369 458,574 645
-------- -------- ---------- ---------- -------
(704) -- -- -- --
(83) -- -- -- --
(145) -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
(1,565) (134) -- -- --
-- -- -- -- --
(3,791) (2,648) (281,386) (32,520) --
(679) (419) (82,610) (9,709) --
(1,407) (1,146) (88,590) (10,682) --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
(7,015) (4,641) (22,904) (2,142) --
-- -- -- -- --
-------- -------- ---------- ---------- -------
(15,389) (8,988) (475,490) (55,053) --
-------- -------- ---------- ---------- -------
27,750 8,749 196,666 (113,409) 9,727
4,607 2,062 5,553 (40,629) 281
3,908 1,851 20,240 (57,163) 341
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
7,563 18,650 46,422 15,529 100
-- -- -- -- --
-------- -------- ---------- ---------- -------
43,828 31,312 268,881 (195,672) 10,449
-------- -------- ---------- ---------- -------
67,712 39,258 189,760 207,849 11,094
119,439 80,181 2,780,277 2,572,428 --
-------- -------- ---------- ---------- -------
$187,151 $119,439 $2,970,037 $2,780,277 $11,094
======== ======== ========== ========== =======
$ 2,242 $ (157) $ -- $ -- $ 1
======== ======== ========== ========== =======
<Caption>
MIDCAP VALUE FUND
-----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
$ (539) $ (2,245)
59,464 46,554
29,759 1,475
-------- --------
88,684 45,784
-------- --------
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
(27,814) (21,012)
(6,087) (4,659)
(6,258) (5,152)
-- --
-- --
-- --
-- --
-- --
-- --
(3,881) (221)
-- --
-------- --------
(44,040) (31,044)
-------- --------
(5,373) (9,469)
(2,251) (2,748)
(3,498) (7,585)
-- --
-- --
-- --
-- --
-- --
-- --
(12,709) 35,896
-- --
-------- --------
(23,831) 16,094
-------- --------
20,813 30,834
441,171 410,337
-------- --------
$461,984 $441,171
======== ========
$ -- $ --
======== ========
</Table>
287
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND RETIREMENT INCOME FUND*
----------------------------------- -----------------------------------
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR FOR THE YEAR SEPTEMBER 30,
ENDED ENDED ENDED 2005** THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)......................... $ 9,518 $ 4,587 $ 12 $--
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions....................................... -- -- -- (1)
Net unrealized appreciation (depreciation) of
investments, futures, options and swap contracts
and foreign currency transactions.................. -- -- 15 --
-------- -------- ---- ---
Net increase (decrease) in net assets resulting from
operations......................................... 9,518 4,587 27 (1)
-------- -------- ---- ---
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................................ (7,394) (3,610) (11) --
Class B............................................ (898) (414) (2) --
Class C............................................ (546) (239) (2) --
Class E............................................ -- -- -- --
Class H............................................ -- -- -- --
Class I............................................ -- -- -- --
Class L............................................ -- -- -- --
Class M............................................ -- -- -- --
Class N............................................ -- -- -- --
Class Y............................................ (680) (324) (3) --
Class Z............................................ -- -- -- --
From net realized gain on investments
Class A............................................ -- -- -- --
Class B............................................ -- -- -- --
Class C............................................ -- -- -- --
Class E............................................ -- -- -- --
Class H............................................ -- -- -- --
Class I............................................ -- -- -- --
Class L............................................ -- -- -- --
Class M............................................ -- -- -- --
Class N............................................ -- -- -- --
Class Y............................................ -- -- -- --
Class Z............................................ -- -- -- --
-------- -------- ---- ---
Total distributions................................ (9,518) (4,587) (18) --
-------- -------- ---- ---
CAPITAL SHARE TRANSACTIONS:
Class A............................................ 25,284 (23,134) 370 48
Class B............................................ (2,721) (15,120) 161 10
Class C............................................ (1,793) (7,836) 148 10
Class E............................................ -- -- -- --
Class H............................................ -- -- -- --
Class I............................................ -- -- -- --
Class L............................................ -- -- -- --
Class M............................................ -- -- -- --
Class N............................................ -- -- -- --
Class Y............................................ (2,486) 6,416 103 10
Class Z............................................ -- -- -- --
-------- -------- ---- ---
Net increase (decrease) from capital share
transactions....................................... 18,284 (39,674) 782 78
-------- -------- ---- ---
Net increase (decrease) in net assets................ 18,284 (39,674) 791 77
NET ASSETS:
Beginning of period.................................. 247,928 287,602 77 --
-------- -------- ---- ---
End of period........................................ $266,212 $247,928 $868 $77
======== ======== ==== ===
Accumulated undistributed (distribution in excess of)
net investment income................................ $ -- $ -- $ -- $--
======== ======== ==== ===
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
288
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECT MIDCAP GROWTH FUND SELECT MIDCAP VALUE FUND SELECT SMALLCAP GROWTH FUND
----------------------------------- ----------------------------------- -----------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JANUARY 1, FOR THE YEAR APRIL 29, 2005** FOR THE YEAR SEPTEMBER 30,
ENDED 2005** THROUGH ENDED THROUGH ENDED 2005** THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ (368) $ (125) $ (86) $ (18) $ (86) $ (3)
2,239 195 2,875 609 (244) (18)
1,006 336 5,546 533 1,203 (232)
-- -- -- -- -- --
------- ------- ------- ------- ------- ------
2,877 406 8,335 1,124 873 (253)
------- ------- ------- ------- ------- ------
-- -- (19) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- (3) -- -- --
-- -- -- -- -- --
(149) -- (504) -- -- --
(24) -- (40) -- -- --
(17) -- (71) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(2) -- (12) -- -- --
-- -- -- -- -- --
------- ------- ------- ------- ------- ------
(192) -- (649) -- -- --
------- ------- ------- ------- ------- ------
6,756 14,672 20,427 21,379 1,577 5,445
1,129 2,308 2,016 1,688 317 207
1,975 1,708 3,828 2,872 455 213
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
28,151 206 17,996 500 4,201 200
-- -- -- -- -- --
------- ------- ------- ------- ------- ------
38,011 18,894 44,267 26,439 6,550 6,065
------- ------- ------- ------- ------- ------
40,696 19,300 51,953 27,563 7,423 5,812
19,300 -- 27,563 -- 5,812 --
------- ------- ------- ------- ------- ------
$59,996 $19,300 $79,516 $27,563 $13,235 $5,812
======= ======= ======= ======= ======= ======
$ -- $ -- $ -- $ 1 $ -- $ --
======= ======= ======= ======= ======= ======
<Caption>
SELECT SMALLCAP VALUE FUND
--------------------------
FOR THE PERIOD
JULY 31, 2006**
THROUGH
OCTOBER 31, 2006
----------------
$ 30
126
1,316
--
-------
1,472
-------
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-------
--
-------
14,491
283
256
--
--
--
--
--
--
1,496
--
-------
16,526
-------
17,998
--
-------
$17,998
=======
$ 42
=======
</Table>
289
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHORT DURATION FUND SMALL COMPANY FUND
----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)......................... $ 4,782 $ 4,306 $ (3,588) $ (3,254)
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions....................................... (707) (984) 70,345 41,153
Net unrealized appreciation (depreciation) of
investments, futures, options and swap contracts
and foreign currency transactions.................. 1,324 (2,113) (14,828) 21,065
-------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations......................................... 5,399 1,209 51,929 58,964
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................................ (933) (1,118) -- --
Class B............................................ (211) (246) -- --
Class C............................................ (480) (710) -- --
Class E............................................ -- -- -- --
Class H............................................ -- -- -- --
Class I............................................ -- -- -- --
Class L............................................ -- -- -- --
Class M............................................ -- -- -- --
Class N............................................ -- -- -- --
Class Y............................................ (3,180) (2,243) -- --
Class Z............................................ -- -- -- --
From net realized gain on investments
Class A............................................ -- -- -- --
Class B............................................ -- -- -- --
Class C............................................ -- -- -- --
Class E............................................ -- -- -- --
Class H............................................ -- -- -- --
Class I............................................ -- -- -- --
Class L............................................ -- -- -- --
Class M............................................ -- -- -- --
Class N............................................ -- -- -- --
Class Y............................................ -- -- -- --
Class Z............................................ -- -- -- --
-------- -------- -------- --------
Total distributions................................ (4,804) (4,317) -- --
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Class A............................................ (2,604) (9,129) 7,658 (28,458)
Class B............................................ (2,089) (3,212) (13,527) (13,082)
Class C............................................ (8,655) (11,289) (4,001) (13,738)
Class E............................................ -- -- -- --
Class H............................................ -- -- -- --
Class I............................................ -- -- 69 --
Class L............................................ -- -- -- --
Class M............................................ -- -- -- --
Class N............................................ -- -- -- --
Class Y............................................ 19,381 52,383 57,068 20,619
Class Z............................................ -- -- -- --
-------- -------- -------- --------
Net increase (decrease) from capital share
transactions....................................... 6,033 28,753 47,267 (34,659)
-------- -------- -------- --------
Net increase (decrease) in net assets................ 6,628 25,645 99,196 24,305
NET ASSETS:
Beginning of period.................................. 143,438 117,793 304,079 279,774
-------- -------- -------- --------
End of period........................................ $150,066 $143,438 $403,275 $304,079
======== ======== ======== ========
Accumulated undistributed (distribution in excess of)
net investment income................................ $ 1 $ 6 $ -- $ --
======== ======== ======== ========
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
+ Included in these amounts was a return of capital in the amounts of $2 and $1
for Classes A and B, respectively.
The accompanying notes are an integral part of these financial statements.
290
- --------------------------------------------------------------------------------
<Table>
<Caption>
SMALLCAP GROWTH FUND STOCK FUND TARGET RETIREMENT 2010 FUND*
----------------------------------- ----------------------------------- -----------------------------------
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR SEPTEMBER 30,
ENDED ENDED ENDED ENDED ENDED 2005** THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ (1,069) $ (1,819) $ 3,896 $ 9,225 $ 22 $--
26,723 29,026 179,777 75,380 -- --
10,054 7,825 (15,893) 63,526 46 (1)
-------- -------- ---------- ---------- ------ ---
35,708 35,032 167,780 148,131 68 (1)
-------- -------- ---------- ---------- ------ ---
-- -- (1,525) (5,607) (17)+ --
-- -- -- -- (3)+ --
-- -- -- -- (2) --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- (772) (1,017) (2) --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------- -------- ---------- ---------- ------ ---
-- -- (2,297) (6,624) (24) --
-------- -------- ---------- ---------- ------ ---
151,875 16,899 (137,391) (307,587) 1,572 12
1,344 2,544 (87,193) (94,047) 213 10
6,952 4,182 (43,306) (94,768) 462 10
-- -- -- -- -- --
(3,041) (4,402) -- -- -- --
235 -- -- -- -- --
(13,323) (12,237) -- -- -- --
(2,473) (2,919) -- -- -- --
(704) (983) -- -- -- --
45,888 47,224 7,983 18,040 122 10
-- -- -- -- -- --
-------- -------- ---------- ---------- ------ ---
186,753 50,308 (259,907) (478,362) 2,369 42
-------- -------- ---------- ---------- ------ ---
222,461 85,340 (94,424) (336,855) 2,413 41
310,023 224,683 1,296,102 1,632,957 41 --
-------- -------- ---------- ---------- ------ ---
$532,484 $310,023 $1,201,678 $1,296,102 $2,454 $41
======== ======== ========== ========== ====== ===
$ -- $ -- $ 4,107 $ 2,294 $ -- $--
======== ======== ========== ========== ====== ===
<Caption>
TARGET RETIREMENT 2020 FUND*
-----------------------------------
FOR THE PERIOD
FOR THE YEAR SEPTEMBER 30,
ENDED 2005** THROUGH
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
$ 10 $ --
13 (1)
82 1
------ ----
105 --
------ ----
(15) --
(1) --
(1) --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
------ ----
(17) --
------ ----
1,919 144
270 10
313 10
-- --
-- --
-- --
-- --
-- --
-- --
-- 10
-- --
------ ----
2,502 174
------ ----
2,590 174
174 --
------ ----
$2,764 $174
====== ====
$ -- $ --
====== ====
</Table>
291
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TARGET RETIREMENT 2030 FUND* TAX-FREE CALIFORNIA FUND
----------------------------------- -----------------------------------
FOR THE PERIOD
FOR THE YEAR SEPTEMBER 30, FOR THE YEAR FOR THE YEAR
ENDED 2005** THROUGH ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)........................ $ 2 $-- $ 799 $ 629
Net realized gain (loss) on investments, futures,
options and swap contracts and foreign currency
transactions...................................... 1 -- (5) 60
Net unrealized appreciation (depreciation) of
investments, futures, options and swap contracts
and foreign currency transactions................. 83 (1) 573 (77)
------ --- ------- -------
Net increase (decrease) in net assets resulting from
operations........................................ 86 (1) 1,367 612
------ --- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A........................................... (3)+ -- (689) (548)
Class B........................................... (2)+ -- (43) (33)
Class C........................................... (1)+ -- (68) (47)
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... (1) -- -- --
Class Z........................................... -- -- -- --
From net realized gain on investments
Class A........................................... -- -- (10) --
Class B........................................... -- -- (1) --
Class C........................................... -- -- (1) --
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... -- -- -- --
Class Z........................................... -- -- -- --
------ --- ------- -------
Total distributions............................... (7) -- (812) (628)
------ --- ------- -------
CAPITAL SHARE TRANSACTIONS:
Class A........................................... 1,784 10 8,736 763
Class B........................................... 283 10 232 293
Class C........................................... 69 10 1,436 492
Class E........................................... -- -- -- --
Class H........................................... -- -- -- --
Class I........................................... -- -- -- --
Class L........................................... -- -- -- --
Class M........................................... -- -- -- --
Class N........................................... -- -- -- --
Class Y........................................... 21 10 -- --
Class Z........................................... -- -- -- --
------ --- ------- -------
Net increase (decrease) from capital share
transactions...................................... 2,157 40 10,404 1,548
------ --- ------- -------
Net increase (decrease) in net assets............... 2,236 39 10,959 1,532
NET ASSETS:
Beginning of period................................. 39 -- 18,843 17,311
------ --- ------- -------
End of period....................................... $2,275 $39 $29,802 $18,843
====== === ======= =======
Accumulated undistributed (distribution in excess of)
net investment income............................... $ -- $-- $ 2 $ 3
====== === ======= =======
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
+ Included in these amounts was a return of capital in the amounts of $2, $1
and $1 for Classes A, B and C, respectively.
The accompanying notes are an integral part of these financial statements.
292
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE MINNESOTA FUND TAX-FREE NATIONAL FUND TAX-FREE NEW YORK FUND
----------------------------------- ----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 1,382 $ 1,341 $ 4,510 $ 3,645 $ 553 $ 486
197 57 372 698 85 32
235 (802) 2,682 (1,637) 260 (160)
------- ------- -------- -------- ------- -------
1,814 596 7,564 2,706 898 358
------- ------- -------- -------- ------- -------
(247) (188) (2,337) (1,544) (421) (378)
(25) (22) (224) (210) (54) (46)
(13) (11) (354) (258) (80) (61)
(967) (1,013) (1,234) (1,259) -- --
(4) (4) (8) (14) -- --
-- -- -- -- -- --
(107) (108) (316) (301) -- --
(4) (4) (41) (42) -- --
(6) (6) (14) (17) -- --
-- -- -- -- -- --
-- -- -- -- -- --
(9) -- (315) -- (23) (17)
(1) -- (46) -- (4) (2)
(1) -- (58) -- (5) (3)
(41) -- (210) -- -- --
-- -- (2) -- -- --
-- -- -- -- -- --
(5) -- (54) -- -- --
-- -- (9) -- -- --
-- -- (4) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------- ------- -------- -------- ------- -------
(1,430) (1,356) (5,226) (3,645) (587) (507)
------- ------- -------- -------- ------- -------
1,226 1,369 24,443 11,403 (243) 763
(19) 186 (267) 713 (22) 244
(11) 105 4,163 224 (237) 733
(2,213) (1,020) (2,570) (848) -- --
(1) 3 (103) (360) -- --
-- -- -- -- -- --
(273) 185 (492) 339 -- --
(8) (75) (60) (91) -- --
(4) (13) (127) (48) -- --
-- 9 1 9 -- --
-- -- -- -- -- --
------- ------- -------- -------- ------- -------
(1,303) 749 24,988 11,341 (502) 1,740
------- ------- -------- -------- ------- -------
(919) (11) 27,326 10,402 (191) 1,591
35,889 35,900 102,588 92,186 15,673 14,082
------- ------- -------- -------- ------- -------
$34,970 $35,889 $129,914 $102,588 $15,482 $15,673
======= ======= ======== ======== ======= =======
$ 10 $ 1 $ 3 $ 21 $ 2 $ 4
======= ======= ======== ======== ======= =======
<Caption>
TOTAL RETURN BOND FUND
-----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
$ 30,568 $ 19,599
(8,700) 5,437
12,640 (20,037)
-------- --------
34,508 4,999
-------- --------
(14,515) (11,070)
(2,504) (2,517)
(2,387) (2,408)
-- --
-- --
-- --
-- --
-- --
-- --
(11,078) (6,306)
-- --
(1,753) (1,135)
(454) (350)
(413) (338)
-- --
-- --
-- --
-- --
-- --
-- --
(1,059) (399)
-- --
-------- --------
(34,163) (24,523)
-------- --------
120,743 22,124
(1,319) (8,201)
1,327 (13,022)
-- --
-- --
38 --
-- --
-- --
-- --
96,782 91,775
-- --
-------- --------
217,571 92,676
-------- --------
217,916 73,152
654,780 581,628
-------- --------
$872,696 $654,780
======== ========
$ 656 $ 673
======== ========
</Table>
293
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
U.S. GOVERNMENT SECURITIES FUND
-----------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ----------------
OPERATIONS:
Net investment income (loss).............................. $ 9,709 $ 10,461
Net realized gain (loss) on investments, futures, options
and swap contracts and foreign currency transactions.... (6,207) (2,240)
Net unrealized appreciation (depreciation) of investments,
futures, options and swap contracts and foreign currency
transactions............................................ 4,161 (6,406)
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 7,663 1,815
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (2,091) (2,127)
Class B................................................. (734) (834)
Class C................................................. (353) (422)
Class E................................................. (4,784) (5,161)
Class H................................................. (92) (119)
Class I................................................. -- --
Class L................................................. (1,529) (1,590)
Class M................................................. (97) (111)
Class N................................................. (30) (35)
Class Y................................................. (117) (292)
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class I................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
-------- --------
Total distributions..................................... (9,827) (10,691)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. (973) (4,366)
Class B................................................. (4,058) (4,109)
Class C................................................. 152 (3,870)
Class E................................................. (14,860) (10,531)
Class H................................................. (773) (1,078)
Class I................................................. -- --
Class L................................................. (3,824) (2,425)
Class M................................................. (630) (830)
Class N................................................. (149) (179)
Class Y................................................. (9,130) 9,491
Class Z................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... (34,245) (17,897)
-------- --------
Net increase (decrease) in net assets..................... (36,409) (26,773)
NET ASSETS:
Beginning of period....................................... 233,976 260,749
-------- --------
End of period............................................. $197,567 $233,976
======== ========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ 11 $ 90
======== ========
</Table>
* Relates to investments in affiliated investment companies.
** Commencement of operations.
The accompanying notes are an integral part of these financial statements.
294
- --------------------------------------------------------------------------------
<Table>
<Caption>
VALUE FUND VALUE OPPORTUNITIES FUND
----------------------------------------- -----------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005 OCTOBER 31, 2006 OCTOBER 31, 2005
---------------- ---------------- ---------------- ----------------
$ 1,430 $ 1,031 $ 1,459 $ 419
17,037 3,426 20,728 11,628
10,073 8,587 28,126 (2,335)
-------- -------- -------- --------
28,540 13,044 50,313 9,712
-------- -------- -------- --------
(474) (209) -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- (39) --
-- -- -- --
-- -- -- --
(780) (328) (358) --
-- -- -- --
-- -- (2,133) --
-- -- (467) --
-- -- (454) --
-- -- -- --
-- -- (158) --
-- -- -- --
-- -- (881) --
-- -- (254) --
-- -- (68) --
-- -- (3,035) --
-- -- -- --
-------- -------- -------- --------
(1,254) (537) (7,847) --
-------- -------- -------- --------
3,341 209 30,823 39,283
(75) 179 2,299 7,330
695 (1,706) 6,635 7,207
-- -- -- --
-- -- (1,657) (1,751)
-- -- 11 --
-- -- 367 (783)
-- -- (1,570) (1,496)
-- -- (234) (356)
1,219 34,771 (9,374) 83,958
-- -- -- --
-------- -------- -------- --------
5,180 33,453 27,300 133,392
-------- -------- -------- --------
32,466 45,960 69,766 143,104
143,964 98,004 230,926 87,822
-------- -------- -------- --------
$176,430 $143,964 $300,692 $230,926
======== ======== ======== ========
$ 1,021 $ 859 $ 1,431 $ 397
======== ======== ======== ========
</Table>
295
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT OF CASH FLOWS
YEAR ENDED OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOTAL RETURN BOND FUND
----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets from operations................ $ 34,508
Adjustments to reconcile the net increase in net assets
from operations to net cash used in operating
activities:
Purchase of investment securities...................... (4,273,975)
Proceeds from disposition of investment securities..... 4,115,046
Purchases of short-term investment securities, net..... (61,328)
Decrease in collateral for securities loaned........... 20,024
Increase in receivable for investment securities
sold.................................................. (19,875)
Increase in dividend and interest receivable........... (1,950)
Increase in variation margin receivable................ (137)
Increase in other assets............................... (13)
Increase in unrealized depreciation on forward foreign
currency contracts.................................... 31
Decrease in payable upon return of securities loaned... (20,024)
Increase in payable for investment securities
purchased............................................. 25,599
Increase in advisory and management fees payable....... 20
Increase in distribution fees payable.................. 5
Increase in variation margin payable................... 142
Increase in accrued expenses........................... 20
Unrealized appreciation on securities and currencies... (12,744)
Net realized gain from investments and currencies...... 7,921
-----------
Net cash used in operating activities..................... (221,238)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares sold................................. 326,044
Cash dividends paid....................................... (1,492)
Payments on shares repurchased............................ (141,050)
-----------
Net cash provided by financing activities................. 183,502
-----------
NET DECREASE IN CASH........................................ (3,228)
Cash at beginning of the year............................... 3,716
-----------
CASH AT END OF THE YEAR..................................... $ 488
===========
</Table>
The accompanying notes are an integral part of these financial statements.
296
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2006
(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
fifty-one 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 Balanced Income
Fund (Balance Income Fund), The Hartford Capital Appreciation Fund (Capital
Appreciation Fund), The Hartford Capital Appreciation II Fund (Capital
Appreciation II 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 Floating Rate Fund (Floating Rate 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 Growth Fund (MidCap Growth Fund), The Hartford MidCap
Value Fund (MidCap Value Fund), The Hartford Money Market Fund (Money Market
Fund), The Hartford Retirement Income Fund (Retirement Income Fund), The
Hartford Select MidCap Growth Fund (Select MidCap Growth Fund), The Hartford
Select MidCap Value Fund (Select MidCap Value Fund), The Hartford Select
SmallCap Growth Fund (Select SmallCap Growth Fund), The Hartford Select
SmallCap Value Fund (SmallCap Value 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 Target Retirement 2010 Fund (Target
Retirement 2010 Fund), The Hartford Target Retirement 2020 Fund (Target
Retirement 2020 Fund), The Hartford Target Retirement 2030 Fund (Target
Retirement 2030 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 Floating Rate Fund, 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 High Yield Fund, Income Allocation Fund, Income Fund, Inflation Plus
Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National
Fund, Tax-Free New York Fund, Total Return Bond Fund and U.S. Government
Securities Fund, which have a maximum front-end sales charge of up to 4.50%.
Floating Rate Fund and Short Duration Fund have a maximum front-end sales
charge of up to 3.00%. Money Market Fund shares are sold without a front-end
load. 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 contingent deferred sales charge of up to 1.00%. Class E
shares are sold with a front-end sales charge of 4.50%. Class I shares
commenced operations on August 31, 2006 and are sold without sales charges
to certain eligible investors through advisory fee-based wrap programs.
Classes H and M 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 4.00%
to zero depending on the period of time the shares are held. Class L shares
are sold with a sales charge of up to 4.75%. Class N shares are sold with a
contingent deferred sales charge of 1.00% if redeemed within one year. Class
Y shares are sold to certain eligible institutional investors without a
sales charge. Class Z shares are 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
M shares will automatically convert to Class L shares 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 and ("Target Retirement
Funds"): Retirement Income Fund, Target Retirement 2010 Fund, Target
Retirement 2020 Fund and Target Retirement 2030 Fund is a "Fund of Funds",
which invests the majority of its assets in Class Y shares of other Hartford
mutual funds: domestic and international equity funds and fixed income funds
(Underlying Funds). The Allocation Funds seek their investment goals through
implementation of a strategic asset allocation recommendation provided by
Hartford Investment Financial Services, LLC (HIFSCO), a wholly-owned
indirect subsidiary of The Hartford Financial Services Group, Inc. (The
Hartford). The Target Retirement Funds seek their investment goals through
implementation of a strategic asset allocation recommendation provided by
Hartford Investment Management Company (Hartford Investment Management).
Ibbotson Associates, Inc. ("Ibbotson") serves as a consultant to HIFSCO and
Hartford Investment Management with respect to selecting the Underlying
Funds and the Funds' asset allocations among the Underlying Funds. Effective
November 13, 2006, Ibbotson's contracts as a consultant to HIFSCO and
Hartford Investment Management was terminated. Each Underlying Fund's
accounting policies are outlined below.
Indemnifications: Under the Funds' organizational documents, their
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.
297
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
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. Trade date for
senior floating rate interests purchased in the primary market is
considered the date on which the loan allocations are determined. Trade
date for senior floating rate loan interests purchased in the secondary
market is the date on which the transaction is entered into.
b) Security Valuation and Investment Income -- Except for the Money Market
Fund, the Funds (references to "Funds" in this section relate, if
applicable, to certain Underlying Funds in the case of a Fund of Funds)
generally use market prices in valuing portfolio securities. If market
quotations are not readily available or are deemed unreliable, a Fund
will use the fair value of the security as determined in good faith
under policies and procedures established by and under the supervision
of that Fund's Board of Directors. Market prices may be deemed
unreliable, for example, if a security is thinly traded or if an event
has occurred after the close of the exchange on which a portfolio
security is principally traded but before the close of the New York
Stock Exchange (the "Exchange") (normally 4:00 p.m. Eastern Time,
referred to as the "Valuation Time") that is expected to affect the
value of the portfolio security. The circumstances in which a Fund may
use fair value pricing include, among others: (i) the occurrence of
events that are significant to a particular issuer, such as mergers,
restructuring or defaults; (ii) the occurrence of events that are
significant to an entire market, such as natural disasters in a
particular region or governmental actions; (iii) trading restrictions on
securities; (iv) thinly traded securities and (v) market events such as
trading halts and early market closings. In addition, with respect to
the valuation of securities principally traded on foreign markets, each
Fund uses a fair value pricing service approved by that Fund's Board of
Directors which employs quantitative models to adjust for "stale" prices
caused by the movement of other markets and other factors occurring
after the close of the foreign markets but before the close of the
Exchange. Securities that are principally traded on foreign markets may
trade on days that are not business days of the Funds. Because the NAV
of each Fund's shares is determined only on business days of the Funds,
the value of the portfolio securities of a Fund that invests in foreign
securities may change on days when a shareholder will not be able to
purchase or redeem shares of the Fund. Fair value pricing is subjective
in nature and the use of fair value pricing by the Funds may cause the
net asset value of their respective shares to differ significantly from
the net asset value that would have been calculated using market prices
at the close of the exchange on which a portfolio security is
principally traded but before the close of the Exchange. There can be no
assurance that any Fund could obtain the fair value assigned to a
security if the Fund were to sell the security at approximately the time
at which that Fund determines its NAV per share.
Debt securities (other than short-term obligations and Floating Rate
Loans), held by the Fund 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. Floating
Rate Loans generally trade in over-the-counter markets and are priced
through an unaffiliated pricing service utilizing independent market
quotations from loan dealers or financial institutions. 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 securities or
from a widely-used quotation system in accordance with procedures
established by that Fund's Board of Directors. Generally, each Fund may
use fair valuation in regards to debt securities when a Fund holds
defaulted or distressed securities or securities in a company in which
reorganization is pending. Short term investments with a maturity of
more than 60 days when purchased are valued based on market quotations
until the remaining days to maturity become less than 61 days. The Money
Market Fund's investments and investments that mature in 60 days or less
are valued at amortized cost, which approximates market value.
Exchange traded equity securities shall be valued at the last reported
sale price on the exchange or market on which the security is primarily
traded (the "Primary Market") at the Valuation Time. If the security did
not trade on the Primary Market, it may be valued at the Valuation Time
at the last reported sale price on another exchange where it trades. The
value of an equity security not traded on any exchange but traded on the
Nasdaq Stock Market, Inc. System ("Nasdaq") or another over-the-counter
("OTC") market shall be valued at the last reported sale price or
official closing price on the exchange or market on which the security
is traded as of the Valuation Time. If it is not possible to determine
the last reported sale price or official closing price on the relevant
exchange or market at the Valuation Time, the value of the security
shall be the most recent bid quotation on such exchange or market at the
Valuation Time.
Securities of foreign issuers and non-dollar securities are translated
from the local currency into U.S. dollars using prevailing exchange
rates.
Options contracts on securities, currencies, indexes, futures contracts,
commodities and other instruments shall be valued at their most recent
sales price at the Valuation Time on the Primary Market on which the
instrument is traded. If the instrument did not trade on the Primary
Market, it may be valued at the most recent sales price at the Valuation
Time on another exchange or market where it did trade.
Futures contracts shall be valued at the final settlement price reported
by an exchange on which they are principally traded. If there were no
trades as of the valuation day, then the contract shall be valued at the
closing bid price as of the Valuation Time.
Financial instruments 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 securities or from a widely-used quotation system in
accordance with procedures established by that Fund's Board of
Directors.
A forward currency contract shall be valued based on the price of the
underlying currency at the prevailing interpolated exchange rate, which
is a combination of the spot currency rate and the forward currency
rate. Spot currency rates and forward currency rates are obtained from
an independent pricing service on a daily basis not more than one hour
before the Valuation Time. In the event that the applicable pricing
service
298
- --------------------------------------------------------------------------------
cannot provide the spot currency rates and forward currency rates in a
timely fashion, such rates may be obtained from a widely-used quotation
system in accordance with procedures established by that Fund's Board of
Directors.
Swaps and other derivative or contractual type instruments shall be
valued using market prices if such instruments trade on an exchange or
market. If such instruments do not trade on an exchange or market, such
instruments shall be valued at a price at which the counterparty to such
contract would repurchase the instrument. In the event that the
counterparty cannot provide a price, such valuation may be determined in
accordance with procedures established by that Fund's Board of
Directors.
Investments in open-end mutual funds are valued at the respective net
asset value of each Underlying Fund.
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 is accrued on a
daily basis. Amortization of bond or senior bank loan 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 within
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 or
U.S. government securities with a market value at least equal to the
market value of the securities on loan. The adequacy of collateral for
securities on loan is monitored on a daily basis. For instances where
the market value of collateral falls below the market value of
securities on loan, such collateral is supplemented on the following
day. 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
SEC, the Funds may transfer uninvested cash balances into a joint
trading account managed by Hartford Investment Management or Wellington
Management Company LLP (Wellington). These balances may be invested in
one or more repurchase agreements and/or short-term money market
instruments.
f) Repurchase Agreements -- A repurchase agreement is an agreement by which
the seller of a security agrees to repurchase the security sold at a
mutually agreed upon time and price. At the time the Funds enter into a
repurchase agreement, the value of the underlying collateral
security(ies), including accrued interest, will be equal to or exceed
the value of the repurchase agreement. Securities that serve to
collateralize the repurchase agreement are held by each Fund's custodian
in book entry or physical form in the custodial account of the Funds or
in a third party custodial account. Repurchase agreements are valued at
cost plus accrued interest receivable.
Certain Funds, together with other investment management companies
having investment advisory agreements with Wellington, have an interest
in joint repurchase agreements in the amount of $2,099,972 dated
10/31/06 with the brokers indicated in the table below due 11/1/06.
These joint repurchase agreements are collateralized as follows:
<Table>
<Caption>
COLLATERAL COLLATERAL COLLATERAL COLLATERAL
BROKER RATE PRINCIPAL VALUE SECURITY TYPE COUPON RATE MATURITY
------ ----- --------- ---------- ------------------ -------------- -----------
Bank of America
Securities............. 5.31% $425,000 $433,500 FNMA 5.00% 2036
Credit Suisse First
Boston................. 5.32% 250,000 255,004 FNMA 4.00% - 10.50% 2008 - 2036
Deutsche Bank
Securities............. 5.25% 9,972 10,173 U.S. Treasury Bill 3.375% 2007
Deutsche Bank
Securities............. 5.30% 420,000 429,000 FHLMC 4.50% - 6.50% 2020 - 2036
GNMA 5.50% 2035
Deutsche Bank
Securities............. 5.32% 200,000 203,400 FHLMC 4.50% - 6.50% 2020 - 2036
GNMA 5.50% 2035
Morgan Stanley & Co.,
Inc. .................. 5.29% 230,000 235,489 FNMA 4.50% - 6.00% 2020 - 2036
UBS Securities, LLC...... 5.31% 565,000 576,304 FHLMC 3.50% - 9.00% 2010 - 2035
FNMA 5.00% - 8.00% 2008 - 2036
</Table>
299
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
The amount to be received upon maturity of each Fund's repurchase
agreement is as follows:
<Table>
<Caption>
MATURITY
FUND AMOUNT
---- --------
Advisers Fund............................................... $ 19,811
Balanced Income Fund........................................ 698
Capital Appreciation Fund................................... 920,333
Capital Appreciation II Fund................................ 18,214
Disciplined Equity Fund..................................... 2,386
Dividend and Growth Fund.................................... 95,052
Equity Income Fund.......................................... 11,444
Focus Fund.................................................. 438
Global Communications Fund.................................. 702
Global Financial Services Fund.............................. 1,557
Global Health Fund.......................................... 16,956
Global Leaders Fund......................................... 13,066
Global Technology Fund...................................... 768
Growth Fund................................................. 12,505
Growth Opportunities Fund................................... 34,313
International Capital Appreciation Fund..................... 11,674
International Opportunities Fund............................ 8,824
International Small Company Fund............................ 2,718
MidCap Fund................................................. 137,646
MidCap Value Fund........................................... 5,891
Small Company Fund.......................................... 4,577
Stock Fund.................................................. 7,575
Value Fund.................................................. 4,365
Value Opportunities Fund.................................... 4,045
</Table>
Certain Funds, together with other investment management companies
having investment advisory agreements with Hartford Investment
Management, have an interest in joint repurchase agreements in the
amount of $605,070 dated 10/31/06 with the brokers indicated on the
table below due 11/1/06. These joint repurchase agreements are
collateralized as follows:
<Table>
<Caption>
COLLATERAL COLLATERAL COLLATERAL COLLATERAL
BROKER RATE PRINCIPAL VALUE SECURITY TYPE COUPON RATE MATURITY
------ ----- --------- ---------- ------------------- --------------- -----------
BNP Paribas Securities
Corp. ...................... 5.24% $200,000 $205,452 U.S. Treasury Bonds 7.25% - 8.75% 2020 - 2022
RBS Greenwich Capital
Markets..................... 5.24% 205,070 209,678 U.S. Treasury Note 4.875% 2009
UBS Securities, Inc. ......... 5.24% 200,000 204,997 U.S. Treasury Bonds 6.875% - 8.125% 2021 - 2025
</Table>
The amount to be received upon maturity of each Fund's repurchase
agreement is as follows:
<Table>
<Caption>
MATURITY
FUND AMOUNT
---- --------
Income Fund................................................. $ 2,596
Inflation Plus Fund......................................... 6,604
MidCap Growth Fund.......................................... 313
Small Company Fund.......................................... 5,844
Total Return Bond Fund...................................... 113,244
U.S. Government Securities Fund............................. 2,453
</Table>
The SmallCap Growth Fund has an interest in a repurchase agreement in
the amount of $19,495, dated 10/31/06 with Deutsche Bank., 5.25% due
11/1/06. This repurchase agreement is collateralized by $19,884 in a
U.S. Treasury Note, 3.75% due 2007.
In addition, Capital Appreciation Fund had collateral for securities on
loan in a repurchase agreement. The Capital Appreciation Fund lending
agreement is collateralized by an interest in repurchase agreements in
the amount of $37,661 dated 10/31/06 with Lehman Brothers, Inc., 5.24%
due 11/1/06. This repurchase agreement is collateralized by $37,252 in
Federal Farm Credit Bank, 5.00% due 2010 and by $1,166 in Federal Home
Loan Bank 5.76% due 2025.
g) Futures and Options Transactions -- Certain Funds may invest in futures
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 futures contracts, they are required to deposit
with a futures commission merchant 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.
300
- --------------------------------------------------------------------------------
At any time prior to expiration of the futures contract, a Fund may
close the position by taking an opposite position, which would
effectively 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 Fund and the Fund realizes a
gain or loss.
The use of futures contracts involves elements of market risk, which may
exceed the amounts recognized in the Statements of Assets and
Liabilities. Changes in the value of the futures contracts may decrease
the effectiveness of a Fund's strategies and potentially result in loss.
Certain Funds, as shown in the Schedule of Investments, had outstanding
futures contracts as of October 31, 2006.
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.
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,
which is recorded on the Funds' Statements of Assets and Liabilities .
There is a risk of loss from a change in value of such options, which
may exceed the related premiums received. Transactions involving written
option contracts for the Funds during the year ended October 31, 2006,
are summarized below:
<Table>
<Caption>
HARTFORD CAPITAL APPRECIATION FUND
OPTIONS CONTRACTS ACTIVITY DURING THE
YEAR ENDED OCTOBER 31, 2006
-------------------------------------
CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS
-------------------------------------- ------------------- ---------------
Beginning of the period..................................... -- $ --
Written..................................................... 34 6,205
Expired..................................................... -- --
Closed...................................................... (34) (6,205)
Exercised................................................... -- --
---- -------
End of the period........................................... -- $ --
---- -------
</Table>
<Table>
<Caption>
HARTFORD DISCIPLINED EQUITY FUND
OPTIONS CONTRACTS ACTIVITY DURING THE
YEAR ENDED OCTOBER 31, 2006
--------------------------------------
CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS
-------------------------------------- ------------------- ---------------
Beginning of the period..................................... -- $ --
Written..................................................... 3 231
Expired..................................................... (1) (29)
Closed...................................................... (1) (131)
Exercised................................................... --* (18)
---- -----
End of the period........................................... 1 $ 53
---- -----
</Table>
<Table>
<Caption>
HARTFORD HIGH YIELD FUND
OPTIONS CONTRACTS ACTIVITY DURING THE
YEAR ENDED OCTOBER 31, 2006
--------------------------------------
CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS
-------------------------------------- ------------------- ---------------
Beginning of the period..................................... -- $ --
Written..................................................... --* 18
Expired..................................................... -- --
Closed...................................................... --* (18)
Exercised................................................... -- --
---- ----
End of the period........................................... -- $ --
---- ----
</Table>
301
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
HARTFORD INFLATION PLUS FUND
OPTIONS CONTRACTS ACTIVITY DURING THE
YEAR ENDED OCTOBER 31, 2006
--------------------------------------
CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS
-------------------------------------- ------------------- ---------------
Beginning of the period..................................... -- $ --
Written..................................................... --* 21
Expired..................................................... -- --
Closed...................................................... --* (21)
Exercised................................................... -- --
---- ----
End of the period........................................... -- $ --
---- ----
</Table>
<Table>
<Caption>
HARTFORD TOTAL RETURN BOND FUND
OPTIONS CONTRACTS ACTIVITY DURING THE
YEAR ENDED OCTOBER 31, 2006
--------------------------------------
CALL OPTIONS WRITTEN DURING THE PERIOD NUMBER OF CONTRACTS PREMIUM AMOUNTS
-------------------------------------- ------------------- ---------------
Beginning of the period..................................... -- $--
Written..................................................... --* 43
Expired..................................................... -- --
Closed...................................................... --* (43)
Exercised................................................... -- --
---- ---
End of the period........................................... -- $--
---- ---
</Table>
* Due to the presentation of the financial statements in thousands, the
number of contracts round to zero.
h) Forward Foreign Currency Contracts -- For the year ended October 31,
2006, certain Funds, as shown in the Schedule of Investments, had
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.
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 may be a limit to the potential
appreciation of the investment. Certain Funds had investments in indexed
securities, as of October 31, 2006, as shown in the Schedule of
Investments under Exchange Traded Funds.
j) (1) 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 (IRC) by distributing
substantially all of their taxable net investment income and net
realized capital gains to their shareholders and 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. The Funds have distributed
substantially all of their income and gains in prior years and each Fund
intends to distribute substantially all of its income and gains during
the calendar year ending December 31, 2006. 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 or excise tax purposes.
j) (2) The tax character of distributions paid for the periods indicated is
as follows (as adjusted for dividends payable):
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
--------------------------------------------------- -------------------------------------
TAX EXEMPT ORDINARY LONG-TERM TAX RETURN TAX EXEMPT ORDINARY LONG-TERM
INCOME(Y) INCOME CAPITAL GAINS& OF CAPITAL INCOME INCOME CAPITAL GAINS
---------- -------- -------------- ---------- ---------- -------- -------------
Advisers Fund............... $ -- $28,170 $ -- $ -- $ -- $37,568 $ --
Aggressive Growth Allocation
Fund...................... -- 91 552 -- -- 39 --
Balanced Allocation Fund.... -- 9,607 300 -- -- 2,330 --
Balanced Income Fund#....... -- 60 -- -- -- -- --
Capital Appreciation Fund... -- 60,755 884,027 -- -- -- --
Capital Appreciation II
Fund...................... -- 1,192 -- -- -- -- --
Conservative Allocation
Fund...................... -- 3,915 685 -- -- 1,501 --
Disciplined Equity Fund..... -- 878 -- -- -- 2,192 --
Dividend and Growth Fund.... -- 52,205 98,292 -- -- 31,677 26,222
</Table>
302
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
--------------------------------------------------- -------------------------------------
TAX EXEMPT ORDINARY LONG-TERM TAX RETURN TAX EXEMPT ORDINARY LONG-TERM
INCOME(Y) INCOME CAPITAL GAINS& OF CAPITAL INCOME INCOME CAPITAL GAINS
---------- -------- -------------- ---------- ---------- -------- -------------
Equity Income Fund.......... $ -- $12,225 $ -- $ -- $ -- $ 8,509 $ --
Floating Rate Fund*......... -- 77,852 -- -- -- 2,825 --
Focus Fund.................. -- 321 -- -- -- 34 --
Global Communications
Fund...................... -- 333 -- -- -- 106 --
Global Financial Services
Fund...................... -- 167 -- -- -- 198 --
Global Health Fund.......... -- 14,523 17,300 -- -- -- 15,627
Global Leaders Fund......... -- 919 7,457 -- -- -- --
Global Technology Fund...... -- -- -- -- -- -- --
Growth Allocation Fund...... -- 2,935 776 -- -- 306 --
Growth Fund................. -- -- -- -- -- -- --
Growth Opportunities Fund... -- -- 69,508 -- -- -- --
High Yield Fund............. -- 20,130 -- -- -- 21,926 --
Income Allocation Fund...... -- 1,498 -- -- -- 882 --
Income Fund................. -- 3,796 -- -- -- 2,379 160
Inflation Plus Fund......... -- 33,608 3,229 -- -- 34,177 4,354
International Capital
Appreciation Fund......... -- 2,096 1,965 -- -- -- --
International Opportunities
Fund...................... -- 509 -- -- -- -- --
International Small Company
Fund...................... -- 10,298 5,091 -- -- 8,255 733
MidCap Fund................. -- 63,745 411,745 -- -- -- 55,053
MidCap Growth Fund#......... -- -- -- -- -- -- --
MidCap Value Fund........... -- 13,883 30,157 -- -- 10,451 20,593
Money Market Fund........... -- 9,518 -- -- -- 4,593 --
Retirement Income Fund@..... -- 18 -- -- -- -- --
Select MidCap Growth
Fund+..................... -- 192 -- -- -- -- --
Select MidCap Value Fund.... -- 649 -- -- -- -- --
Select SmallCap Growth
Fund...................... -- -- -- -- -- -- --
Select SmallCap Value
Fund#..................... -- -- -- -- -- -- --
Short Duration Fund......... -- 4,804 -- -- -- 4,345 --
Small Company Fund.......... -- -- -- -- -- -- --
SmallCap Growth Fund........ -- -- -- -- -- -- --
Stock Fund.................. -- 2,297 -- -- -- 6,624 --
Target Retirement 2010
Fund...................... -- 21 -- 3 -- -- --
Target Retirement 2020
Fund...................... -- 17 -- -- -- -- --
Target Retirement 2030
Fund...................... -- 3 -- 4 -- -- --
Tax-Free California Fund.... 800 -- 12 -- 633 -- --
Tax-Free Minnesota Fund..... 1,373 57 -- -- 1,381 -- 85
Tax-Free National Fund...... 4,528 698 -- -- 3,716 -- 79
Tax-Free New York Fund...... 555 6 26 -- 486 -- 22
Total Return Bond Fund...... -- 32,844 1,319 -- -- 23,616 954
U.S. Government Securities
Fund...................... -- 9,827 -- -- -- 10,868 --
Value Fund.................. -- 1,254 -- -- -- 537 --
Value Opportunity Fund...... -- 2,423 5,424 -- -- -- --
</Table>
+ For the period January 1, 2005 (commencement of operations) through
October 31, 2005.
* For the period April 29, 2005 (commencement of operations) through October
31, 2005.
@ For the period September 30, 2005 (commencement of operations) through
October 31, 2005.
# For the period July 31, 2005 (commencement of operations) through October
31, 2006.
& The Funds designate these distributions as long-term capital gain
dividends per IRC code Sec. 852(b)(3)(C).
Y The Funds designate these distributions as exempt interest dividends per
IRC Sec. 852(b)(5).
As of October 31, 2006, the components of distributable earnings
(deficit) on a tax basis are as follows:
<Table>
<Caption>
ACCUMULATED TOTAL
UNDISTRIBUTED UNDISTRIBUTED CAPITAL UNREALIZED ACCUMULATED
ORDINARY LONG-TERM GAINS APPRECIATION EARNINGS
INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)@ (DEFICIT)
------------- ------------- ----------- --------------- -----------
Advisers Fund............... $ 3,014 $ 9,545 $ -- $ 64,866 $ 77,425
Aggressive Growth Allocation
Fund...................... -- 4,107 -- 22,058 26,165
Balanced Allocation Fund.... 1,354 16,039 -- 50,973 68,366
Balanced Income Fund........ 42 -- (19) 433 456
</Table>
303
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACCUMULATED TOTAL
UNDISTRIBUTED UNDISTRIBUTED CAPITAL UNREALIZED ACCUMULATED
ORDINARY LONG-TERM GAINS APPRECIATION EARNINGS
INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)@ (DEFICIT)
------------- ------------- ----------- --------------- -----------
Capital Appreciation Fund... $455,043 $740,551 $ -- $2,057,923 $3,253,517
Capital Appreciation II
Fund...................... 7,431 1,619 -- 22,502 31,552
Conservative Allocation
Fund...................... 633 3,535 -- 5,872 10,040
Disciplined Equity Fund..... 1,454 -- (60,695) 54,401 (4,840)
Dividend and Growth Fund.... 15,041 201,659 -- 618,951 835,651
Equity Income Fund.......... 1,642 25,507 -- 84,331 111,480
Floating Rate Fund.......... 2,092 -- (1,227) (4,286) (3,421)
Focus Fund.................. -- -- (1,063) 484 (579)
Global Communications
Fund...................... 368 81 -- 1,741 2,190
Global Financial Services
Fund...................... 180 1,748 -- 5,261 7,189
Global Health Fund.......... 6,779 21,946 -- 99,419 128,144
Global Leaders Fund......... 15,315 22,226 -- 100,848 138,389
Global Technology Fund...... -- -- (51,195) 6,756 (44,439)
Growth Allocation Fund...... -- 14,424 -- 58,976 73,400
Growth Fund................. -- 86,481 -- 84,969 171,450
Growth Opportunities Fund... 26,275 63,092 -- 143,030 232,397
High Yield Fund(Y).......... 88 -- (81,637) 2,886 (78,663)
Income Allocation Fund...... 5 -- (38) (590) (623)
Income Fund................. 10 -- (573) 616 53
Inflation Plus Fund......... 4,022 -- (8,467) (20,288) (24,733)
International Capital
Appreciation Fund......... 20,540 10,238 -- 46,107 76,885
International Opportunities
Fund(Y)................... 1,672 7,575 (2,430) 28,271 35,088
International Small Company
Fund...................... 16,470 9,615 -- 15,397 41,482
MidCap Fund................. 42,382 438,996 -- 361,743 843,121
MidCap Growth Fund.......... 116 -- -- 539 655
MidCap Value Fund........... 14,003 44,859 -- 71,291 130,153
Money Market Fund........... -- -- -- -- --
Retirement Income Fund...... -- -- -- 14 14
Select MidCap Growth Fund... 1,264 682 -- 1,154 3,100
Select MidCap Value Fund.... 2,386 539 -- 5,904 8,829
Select SmallCap Growth
Fund...................... -- -- (219) 928 709
Select SmallCap Value
Fund...................... 164 12 -- 1,311 1,487
Short Duration Fund......... 1 -- (2,224) (664) (2,887)
Small Company Fund.......... -- 34,677 -- 34,260 68,937
SmallCap Growth Fund........ -- -- (168) 29,053 28,885
Stock Fund.................. 4,120 -- (303,982) 54,017 (245,845)
Target Retirement 2010
Fund...................... 0 -- -- 45 45
Target Retirement 2020
Fund...................... 3 3 -- 82 88
Target Retirement 2030
Fund...................... 0 -- -- 82 82
Tax-Free California Fund.... 2 -- (5) 954 951
Tax-Free Minnesota Fund..... 34 173 -- 1,578 1,785
Tax-Free National Fund...... 3 372 -- 6,313 6,688
Tax-Free New York Fund...... 2 85 -- 596 683
Total Return Bond Fund...... 574 -- (9,223) 2,899 (5,750)
U.S. Government Securities
Fund...................... 11 -- (18,780) 1,804 (16,965)
Value Fund.................. 1,379 15,190 -- 25,598 42,167
Value Opportunities Fund.... 6,712 15,916 -- 35,381 58,009
</Table>
* Certain Funds had capital loss carryforwards that are identified in Note
2(j)(4).
@ The differences between book-basis and tax-basis unrealized appreciation
(depreciation) are attributable primarily to the tax deferral of wash sale
losses, the mark-to-market adjustment for certain derivatives in accordance
with IRC Sec. 1256, the mark to market for Passive Foreign Investment
Companies and basis differences in real estate investment trusts.
Y Capital loss carryover is subject to IRC Sec. 382 limitations.
j) (3) 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
304
- --------------------------------------------------------------------------------
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, 2006, the Funds
recorded the following reclassifications to increase (decrease) the
accounts listed below.
<Table>
<Caption>
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT NET REALIZED PAID-IN-
INCOME GAIN (LOSS) CAPITAL
-------------- ------------ --------
Advisers Fund............................................... $ 187 $ (280) $ 93
Aggressive Growth Allocation Fund........................... 1,539 (1,539) --
Balanced Allocation Fund.................................... 1,564 (1,564) --
Balanced Income Fund........................................ 9 -- (9)
Capital Appreciation Fund................................... (3,043) 3,386 (343)
Capital Appreciation II Fund................................ 583 (586) 3
Conservative Allocation Fund................................ 458 (458) --
Disciplined Equity Fund..................................... (37) 21 16
Dividend and Growth Fund.................................... (194) 194 --
Equity Income Fund.......................................... (39) 39 --
Floating Rate Fund.......................................... 1,328 (1,328) --
Focus Fund.................................................. 110 18 (128)
Global Communications Fund.................................. (21) 21 --
Global Financial Services Fund.............................. 1 (1) --
Global Health Fund.......................................... 3,491 (3,492) 1
Global Leaders Fund......................................... 519 (519) --
Global Technology Fund...................................... 632 19 (651)
Growth Allocation Fund...................................... 2,317 (2,317) --
Growth Fund................................................. 4,664 243 (4,907)
Growth Opportunities Fund................................... 3,351 (3,351) --
High Yield Fund............................................. (61) 61 --
Income Allocation Fund...................................... 33 (33) --
Income Fund................................................. (31) 31 --
Inflation Plus Fund......................................... (244) 244 --
International Capital Appreciation Fund..................... (26) (203) 229
International Opportunities Fund............................ (23) 23 --
International Small Company Fund............................ 3,830 (3,830) --
MidCap Fund................................................. 10,396 (10,654) 258
MidCap Growth Fund.......................................... 10 -- (10)
MidCap Value Fund........................................... 539 (539) --
Money Market Fund........................................... -- -- --
Retirement Income Fund...................................... 6 -- (6)
Select MidCap Growth Fund................................... 368 (371) 3
Select MidCap Value Fund.................................... 107 (107) --
Select SmallCap Growth Fund................................. 86 -- (86)
Select SmallCap Value Fund.................................. 12 3 (15)
Short Duration Fund......................................... 17 (17) --
Small Company Fund.......................................... 3,588 141 (3,729)
SmallCap Growth Fund........................................ 1,069 93 (1,162)
Stock Fund.................................................. 214 (214) --
Target Retirement 2010 Fund................................. (1) -- 1
Target Retirement 2020 Fund................................. 7 (7) --
Target Retirement 2030 Fund................................. 1 -- (1)
Tax-Free California Fund.................................... -- -- --
Tax-Free Minnesota Fund..................................... -- -- --
Tax-Free National Fund...................................... -- -- --
Tax-Free New York Fund...................................... -- -- --
Total Return Bond Fund...................................... (101) 101 --
U.S. Government Securities Fund............................. 39 (39) --
Value Fund.................................................. (14) 14 --
Value Opportunities Fund.................................... (28) 28 --
</Table>
305
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
j) (4) Capital Loss Carryforwards:
As of October 31, 2006 (tax year-end), the following Funds had capital
loss carryforwards for U.S. federal income tax purposes as follows:
<Table>
<Caption>
YEAR OF EXPIRATION
--------------------------------------------------------------------------------------
FUND 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL
---- ------ ------- ------- -------- -------- ------ ------ ------ --------
Balanced Income Fund............. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 19 $ 19
Disciplined Equity Fund.......... -- -- -- 34,059 26,636 -- -- -- 60,695
Floating Rate Fund............... -- -- -- -- -- -- -- 1,227 1,227
Focus Fund....................... -- -- -- -- 1,063 -- -- -- 1,063
Global Technology Fund........... -- -- 16,302 34,893 -- -- -- -- 51,195
High Yield Fund.................. 2,778 19,805 1,643 25,246 28,570 -- -- 3,595 81,637
Income Allocation Fund........... -- -- -- -- -- -- -- 38 38
Income Fund...................... -- -- -- -- -- -- 311 262 573
Inflation Plus Fund.............. -- -- -- -- -- -- -- 8,467 8,467
International Opportunities
Fund........................... 1,701 729 -- -- -- -- -- -- 2,430
Select SmallCap Growth Fund...... -- -- -- -- -- -- 15 204 219
Short Duration Fund.............. -- -- -- -- 221 295 977 731 2,224
SmallCap Growth Fund............. -- -- -- -- 168 -- -- -- 168
Stock Fund....................... -- -- -- 107,964 196,018 -- -- -- 303,982
Tax-Free California Fund......... -- -- -- -- -- -- -- 5 5
Total Return Bond Fund........... -- -- -- -- -- -- -- 9,223 9,223
U.S. Government Securities
Fund........................... -- 2,205 3,597 -- 672 3,591 2,517 6,198 18,780
</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>
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. The net asset
value of each Fund's shares is determined as of the close of each
business day of 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 each year. Normally, dividends from net investment income of
Aggressive Growth Allocation Fund, Capital Appreciation Fund, Capital
Appreciation II Fund, Disciplined Equity Fund, Focus Fund, Global
Communications Fund, Global Financial Services Fund, Global Health Fund,
Global Leaders Fund, Global Technology Fund, Growth Allocation Fund,
Growth Fund, Growth Opportunities Fund, International Capital
Appreciation Fund, International Opportunities Fund, International Small
Company Fund, MidCap Fund, MidCap Growth Fund, MidCap Value Fund, Select
MidCap Growth Fund, Select MidCap Value Fund, Select SmallCap Growth
Fund, Select SmallCap Value Fund, Small Company Fund, SmallCap Growth
Fund, Stock Fund, Target Retirement 2030 Fund, Value Fund, and Value
Opportunities Fund will be declared and paid annually; dividends from
net investment income of Advisers Fund, Balanced Allocation Fund,
Balanced Income Fund, Conservative Allocation Fund, Dividend and Growth
Fund, Equity Income Fund, Target Retirement 2010 Fund and Target
Retirement 2020 Fund will be declared and paid quarterly; dividends from
the net investment income of Floating Rate Fund, High Yield Fund, Income
Allocation Fund, Income Fund, Inflation Plus Fund, Retirement Income
Fund, Short Duration Fund, Tax-Free California Fund, Tax-Free Minnesota
Fund, Tax-Free National Fund, Tax-Free New York Fund, Total Return Bond
Fund and U. S. Government Securities Fund will be declared and paid
monthly and dividends from net investment income of Money Market Fund
will be declared daily and paid monthly. Dividends from Money Market
Fund are not accrued on shares until the day following the date on which
the shares are issued. Starting on January 1, 2007, dividends from the
net investment income of Floating Rate Fund, High Yield Fund, Income
Fund, Inflation Plus Fund, Short Duration Fund, Tax-Free-California
Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York
Fund, Total Return Bond Fund and U.S. Government Securities Fund will be
declared daily and paid monthly. Dividends on those funds are not
accrued 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 with respect to character and timing. These differences
include the treatment of non-taxable dividends, expiring capital loss
carryforwards, foreign currency gains and losses, losses deferred due to
wash
306
- --------------------------------------------------------------------------------
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
2,j,(3)).
l) Illiquid and Restricted Securities -- Each Fund is permitted to invest
up to 15% of its net assets in illiquid securities, except for Inflation
Plus Fund and 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 its 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 that Fund's Board of Directors.
m) Securities Purchased on a When-Issued and Delayed-Delivery
Basis -- Delivery and payment for securities that have been purchased by
the Funds on a forward commitment or when-issued or delayed-delivery
basis take place beyond the customary settlement period. During this
period, such securities are subject to market fluctuations, and the Funds
identify securities segregated in their records with value at least equal
to the amount of the commitment. As of October 31, 2006, the Funds
entered into outstanding when-issued or forward commitments as follows:
<Table>
<Caption>
FUND COST
---- --------
Advisers Fund............................................... $ 13,106
Floating Rate Fund.......................................... 157,178
High Yield Fund............................................. 2,850
Income Fund................................................. 1,628
Tax-Free California Fund.................................... 1,442
Tax-Free National Fund...................................... 2,541
Total Return Bond Fund...................................... 80,000
</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. The share price, yield and total return of a fund
which holds securities with higher credit risk may fluctuate more than
with less aggressive bond funds.
o) Senior Floating Rate Loans -- Certain Funds, as shown in the Schedule of
Investments, may invest in interests in senior floating rate loans.
Senior floating rate loans hold the most senior position in the capital
structure of a business entity (the "Borrower"), are typically secured
by specific collateral, and have a claim in the assets and/or stock of
the Borrower that is senior to that held by subordinated debtholders and
stockholders of the Borrower. Senior floating rate loans are typically
structured and administered by a financial institution that acts as the
agent of the lenders participating in the floating rate loan. Senior
floating rate loans are rated below-investment-grade, which suggests
they are more likely to default than investment-grade loans. A default
could lead to non-payment of income which would result in a reduction of
income to the Fund and there can be no assurance that the liquidation of
any collateral would satisfy the Borrower's obligation in the event of
non-payment of scheduled interest or principal payments, or that such
collateral could be readily liquidated. Senior floating rate loans are
also subject to interest rate risk. When interest rates decline, the
value of a portfolio in fixed-rate obligations can be expected to rise.
Conversely, when interest rates rise, the value of the portfolio
invested in fixed-rate obligations can be expected to decline. Fund
management expects the policy of acquiring floating rate loans to
minimize fluctuations in net asset value as a result of changes in
market rates. However, because rates on senior floating rate loans only
reset periodically, changes in prevailing interest rates can be expected
to cause some fluctuation in such Fund's net asset value.
p) Prepayment Risks -- Most floating rate loans and certain debt securities
allow for prepayment of principal without penalty. Floating rate loans
and securities subject to prepayment risk generally offer less potential
for gains when interest rates decline, and may offer a greater potential
for loss when interest rates rise. In addition, with respect to
securities, rising interest rates may cause prepayments to occur at a
slower than expected rate, thereby effectively lengthening the maturity
of the security and making the security more sensitive to interest rate
changes. Prepayment risk is a major risk of mortgage-backed securities
and certain asset-backed securities. Accordingly, the potential for the
value of a floating rate loan or security to increase in response to
interest rate declines is limited. Floating rate loans or debt
securities purchased to replace a prepaid loan or debt security may have
lower yields than the yield on the prepaid loan or debt security.
q) 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.
r) Credit Default Swaps -- Certain Funds may enter into event linked swaps,
including credit default swaps. The credit default swap market allows a
Fund to manage credit risk through buying and selling credit protection
on a specific issuer, an index, or a basket of issuer. The transactions
are documented through swap documents. A "buyer" of credit protection
agrees to pay a counterparty to assume the credit risk of an issuer upon
the occurrence of certain events. The "seller" of the protection
receives periodic payments and agrees to assume the credit risk of an
issuer upon the occurrence of certain events. A "seller's" exposure is
limited to the total notional amount of the credit default swap
contract. A Fund will generally not buy protection on issuers that are
not currently held by such Fund. As of October 31, 2006, no credit
default swaps were held by the Funds.
307
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
s) Financial Accounting Standards Board Interpretation No. 48 -- On July
13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires the evaluation of tax positions taken or
expected to be taken in the course of preparing a Funds' tax returns to
determine whether the tax positions are "more-likely-than-not" of being
sustained by the applicable tax authority. Tax positions not deemed to
meet the more-likely-than-not threshold would be recorded as a tax
benefit or expense in the current year. Adoption of FIN 48 is required
for fiscal years beginning after December 15, 2006, and is to be applied
to all open tax years as of the effective date. At this time, management
is evaluating the implications of FIN 48 and its impact in the Funds'
financial statements has not yet been determined.
t) Financial Accounting Standards Board Financial Accounting Standards No.
157 -- In September 2006, FASB issued Statement on Financial Accounting
Standards No. 157, "Fair Value Measurements" ("FAS 157"). This standard
clarifies the definition of fair value for financial reporting,
establishes a framework for measuring fair value and requires additional
disclosures about the use of fair value measurements. FAS 157 is
effective for the Funds' financial statements issued after October 31,
2008. As of October 31, 2006, the Funds do not believe the adoption of
FAS 157 will impact the amounts reported in the financial statements,
however, additional disclosures will be required about the inputs used
to develop the measurements of fair value and the effect of certain of
the measurements reported in the statements of operations for a fiscal
period.
3. EXPENSES:
a) Investment Management and Advisory Agreements -- HIFSCO serves as
investment manager to each Fund pursuant to an Investment Advisory
Agreement for The Hartford Mutual Funds, Inc. and 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 Advisers Fund, Balanced Income Fund, Capital Appreciation
Fund, Capital Appreciation II Fund, Disciplined Equity Fund, Dividend
and Growth Fund, Equity Income Fund, Focus Fund, Global Communications
Fund, Global Financial Services Fund, Global Health Fund, Global Leaders
Fund, Global Technology Fund, Growth Fund, Growth Opportunities Fund,
International Capital Appreciation Fund, International Opportunities
Fund, International Small Company Fund, MidCap Fund, MidCap Value Fund,
Small Company Fund, SmallCap Growth Fund, Stock Fund, Value Fund and
Value Opportunities Fund in accordance with each Fund's investment
objective and policies. In addition, HIFSCO has contracted with Hartford
Investment Management, a wholly owned subsidiary of The Hartford, for
the provision of day to day investment management services for Floating
Rate Fund, High Yield Fund, Income Fund, Inflation Plus Fund, MidCap
Growth Fund, Money Market Fund, Retirement Income Fund, Short Duration
Fund, Small Company Fund, Target Retirement 2010 Fund, Target Retirement
2020 Fund, Target Retirement 2030 Fund, Tax-Free California Fund,
Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund,
Total Return Bond Fund and U.S. Government Securities Fund. HIFSCO has
contracted for the provision of day to day investment management
services with Chartwell Investment Partners, L.P. (Chartwell), Goldman
Sachs Asset Management, L.P. (GSAM) and Northern Capital Management, LLC
(Northern Capital) for the Select MidCap Growth Fund, with Artisan
Partners Limited Partnership (Artisan), Cramer Rosenthal McGlynn, LLC
(CRM) and Sterling Capital Management LLC (Sterling) for the Select
MidCap Value Fund, with Jennison Associates, LLC (Jennison) and Oberweis
Asset Management, Inc. (Oberweis) for Select SmallCap Growth Fund and
with Kayne Anderson Rudnick Investment Management, LLC (KAR),
Metropolitan West Capital Management, LLC (MetWest Capital) and SSgA
Funds Management, Inc. (SSgA FM) for Select SmallCap Value Fund. Each
Fund pays a fee to HIFSCO, a portion of which may be used to compensate
Artisan, Chartwell, CRM, GSAM, Hartford Investment Management, Jennison,
KAR, MetWest Capital, Oberweis, Northern Capital, SSgA FM, Sterling and
Wellington, as applicable.
The schedule below reflects the rates of compensation paid to HIFSCO for
investment advisory services rendered during the year ended October 31,
2006; the rates are accrued daily and paid monthly:
SELECT SMALLCAP GROWTH FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 1.05%
On next $500 million............................................... 1.00%
Over $1 billion.................................................... 0.95%
</Table>
CAPITAL APPRECIATION II FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $250 million.............................................. 1.00%
On next $250 million............................................... 0.95%
On next $500 million............................................... 0.90%
Over $1 billion.................................................... 0.85%
</Table>
SELECT MIDCAP VALUE FUND AND
SELECT SMALLCAP VALUE FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 1.00%
On next $500 million............................................... 0.95%
Over $1 billion.................................................... 0.90%
</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............................................... 0.80%
Over $250 million.................................................. 0.70%
</Table>
308
- --------------------------------------------------------------------------------
FOCUS FUND(1)(3), GLOBAL COMMUNICATIONS FUND(2)(3), GLOBAL FINANCIAL SERVICES
FUND(2)(3), GLOBAL HEALTH FUND(3) AND GLOBAL TECHNOLOGY FUND(3)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 1.00%
On next $500 million............................................... 0.95%
Over $1 billion.................................................... 0.90%
</Table>
1) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.10%
of average total net assets until October 31, 2006.
2) Effective September 1, 2005, HIFSCO agreed to waive management fees of 0.45%
of average total net assets until October 31, 2006.
3) Effective November 1, 2006, HIFSCO agreed to permanently reduce its
management fee amounting to 0.10% of average total net assets for these
Funds. The new schedule will be as follows:
INTERNATIONAL CAPITAL APPRECIATION FUND(4) AND
INTERNATIONAL SMALL COMPANY FUND(4)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 1.00%
On next $500 million............................................... 0.90%
Over $1 billion.................................................... 0.85%
</Table>
4) Effective November 1, 2006, HIFSCO agreed to permanently reduce its
management fee by 0.10% on the first $500 million of average daily net assets
and 0.05% on average daily assets over $500 million. The new schedule will be
as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.90%
On next $500 million............................................... 0.85%
Over $1 billion.................................................... 0.80%
</Table>
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.90%
On next $500 million............................................... 0.85%
Over $1 billion.................................................... 0.80%
</Table>
SELECT MIDCAP GROWTH FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.90%
On next $500 million............................................... 0.85%
Over $1 billion.................................................... 0.80%
</Table>
SMALL COMPANY FUND(5)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $250 million.............................................. 0.85%
On next $250 million............................................... 0.80%
On next $500 million............................................... 0.75%
On next $500 million............................................... 0.70%
Over $1.5 billion.................................................. 0.65%
</Table>
5) Effective June 12, 2006, HIFSCO agreed to reduce its management fee by adding
breakpoints at certain levels. Prior to June 12, 2006, the annual fee was
0.85% on the first $500 million, 0.75% on the next $500 million and 0.70%
over $1 billion of average daily net assets.
GLOBAL LEADERS FUND, INTERNATIONAL OPPORTUNITIES FUND,
MIDCAP FUND AND MIDCAP VALUE FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.85%
On next $500 million............................................... 0.75%
Over $1 billion.................................................... 0.70%
</Table>
MIDCAP GROWTH FUND(6)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.80%
On next $500 million............................................... 0.75%
Over $1 billion.................................................... 0.70%
</Table>
6) Effective November 1, 2006, HIFSCO has voluntarily agreed to waive management
fees until July 31, 2007.
309
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
TAX-FREE NATIONAL FUND(7)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $50 million............................................... 0.80%
On next $4.95 billion.............................................. 0.70%
On next $5.0 billion............................................... 0.68%
Over $10 billion................................................... 0.67%
</Table>
7) Effective November 1, 2006, HIFSCO agreed to voluntarily waive management
fees of 0.15% of average total net assets until October 31, 2007.
CAPITAL APPRECIATION FUND, DISCIPLINED EQUITY FUND,
EQUITY INCOME FUND(8), STOCK FUND(9) AND VALUE FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.80%
On next $500 million............................................... 0.70%
Over $1 billion.................................................... 0.65%
</Table>
8) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.30%
of average total net assets until October 31, 2006. Effective November 1,
2006, HIFSCO agreed to waive management fees of 0.10% of average total net
assets until October 31, 2007.
9) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.05%
of average total net assets until October 31, 2006. Effective November 1,
2006, HIFSCO agreed to continue the waiver until October 31, 2007.
DIVIDEND AND GROWTH FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.75%
On next $500 million............................................... 0.65%
Over $1 billion.................................................... 0.60%
</Table>
HIGH YIELD FUND(10)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.75%
On next $500 million............................................... 0.65%
On next $4 billion................................................. 0.60%
On next $5 billion................................................. 0.58%
Over $10 billion................................................... 0.57%
</Table>
10) Effective November 1, 2005, HIFSCO agreed to waive management fees of 0.15%
of average total net assets until October 31, 2006. Effective November 1,
2006, HIFSCO agreed to increase the voluntary waiver of management fees to
0.20% of average total net assets until October 31, 2007.
BALANCED INCOME FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $250 million.............................................. 0.725%
On next $250 million............................................... 0.700%
On next $500 million............................................... 0.675%
Over $1 billion.................................................... 0.650%
</Table>
TAX-FREE MINNESOTA FUND(11)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $50 million............................................... 0.72%
On next $4.95 billion.............................................. 0.70%
On next $5 billion................................................. 0.68%
Over $10 billion................................................... 0.67%
</Table>
11) Effective November 1, 2006, HIFSCO voluntarily agreed to waive management
fees of 0.15% of average total net assets until October 31, 2007.
ADVISERS FUND(12)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.690%
On next $500 million............................................... 0.625%
Over $1 billion.................................................... 0.575%
</Table>
12) Effective November 1, 2006, HIFSCO voluntarily agreed to waive management
fees of 0.05% of average total net assets until October 31, 2007.
FLOATING RATE FUND(13)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.65%
On next $4.5 billion............................................... 0.60%
On next $5.0 billion............................................... 0.58%
Over $10 billion................................................... 0.57%
</Table>
13) HIFSCO agreed to waive the management fee through October 31, 2006.
310
- --------------------------------------------------------------------------------
INCOME FUND AND INFLATION PLUS FUND(14)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.60%
On next $4.5 billion............................................... 0.55%
On next $5.0 billion............................................... 0.53%
Over $10 billion................................................... 0.52%
</Table>
14) Effective November 1, 2006, HIFSCO agreed to voluntarily waive management
fees of 0.10% of average total net assets until October 31, 2007.
U.S. GOVERNMENT SECURITIES FUND(15)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $50 million............................................... 0.80%
On next $4.95 billion.............................................. 0.70%
On next $5.0 billion............................................... 0.68%
Over $10 billion................................................... 0.67%
</Table>
15) Effective November 1, 2006, HIFSCO agreed to permanently reduce its
management fee. The new schedule is as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $50 million............................................... 0.60%
On next $450 billion............................................... 0.55%
On next $4.5 billion............................................... 0.50%
On next $5.0 billion............................................... 0.48%
Over $10 billion................................................... 0.47%
</Table>
TOTAL RETURN BOND FUND(16)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.65%
On next $500 million............................................... 0.55%
On next $4.0 billion............................................... 0.50%
On next $5.0 billion............................................... 0.48%
Over $10 billion................................................... 0.47%
</Table>
16) Effective November 1, 2006, HIFSCO agreed to permanently reduced its
management fees for this Fund. The new schedule is as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.............................................. 0.550%
On next $500 million............................................... 0.525%
On next $4.0 billion............................................... 0.500%
On next $5.0 billion............................................... 0.480%
Over $10 billion................................................... 0.470%
</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.............................................. 0.55%
On next $4.5 billion............................................... 0.50%
On next $5.0 billion............................................... 0.48%
Over $10 billion................................................... 0.47%
</Table>
311
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
MONEY MARKET FUND
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.50%
On next $500 million............................................... 0.45%
On next $4.0 billion............................................... 0.40%
On next $5.0 billion............................................... 0.38%
Over $10 billion................................................... 0.37%
</Table>
AGGRESSIVE GROWTH ALLOCATION FUND(17), BALANCED ALLOCATION FUND(17),
CONSERVATIVE ALLOCATION FUND(17), GROWTH ALLOCATION FUND(17), INCOME ALLOCATION
FUND(17), RETIREMENT INCOME FUND(17), TARGET RETIREMENT 2010 FUND(17), TARGET
RETIREMENT 2020 FUND(17) AND TARGET RETIREMENT 2030 FUND(17)
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------ ----------
On first $500 million.............................................. 0.20%
Over $500 million.................................................. 0.15%
</Table>
17) Effective November 1, 2006, HIFSCO agreed to permanently reduce its
management fee. The new schedule is as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.............................................. 0.15%
Over $500 million.................................................. 0.10%
</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 and
distribution of shares through broker-dealers, financing distribution costs
and maintaining financial books and records. For the year ended October 31,
2006, the following revenues were received by HIFSCO:
<Table>
<Caption>
FRONT-END LOAD CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
-------------- -------------------
Advisers Fund............................................... $ 1,469 $ 560
Aggressive Growth Allocation Fund........................... 1,777 85
Balanced Allocation Fund.................................... 5,886 314
Balanced Income Fund........................................ 36 --
Capital Appreciation Fund................................... 50,167 2,326
Capital Appreciation II Fund................................ 4,149 61
Conservative Allocation Fund................................ 937 78
Disciplined Equity Fund..................................... 212 49
Dividend and Growth Fund.................................... 11,868 518
Equity Income Fund.......................................... 2,961 63
Floating Rate Fund.......................................... 5,001 617
Focus Fund.................................................. 61 33
Global Communications Fund.................................. 193 9
Global Financial Services Fund.............................. 65 7
Global Health Fund.......................................... 1,758 122
Global Leaders Fund......................................... 715 93
Global Technology Fund...................................... 173 23
Growth Allocation Fund...................................... 5,588 293
Growth Fund................................................. 1,181 171
Growth Opportunities Fund................................... 3,055 108
High Yield Fund............................................. 331 114
Income Allocation Fund...................................... 246 38
Income Fund................................................. 292 20
Inflation Plus Fund......................................... 934 743
International Capital Appreciation Fund..................... 2,002 72
International Opportunities Fund............................ 937 28
International Small Company Fund............................ 610 14
MidCap Fund................................................. 350 447
MidCap Growth Fund.......................................... 268 --
MidCap Value Fund........................................... 119 70
Money Market Fund........................................... -- 112
Retirement Income Fund...................................... 5 --
Select MidCap Growth Fund................................... 3 12
Select MidCap Value Fund.................................... 336 10
Select SmallCap Growth Fund................................. 49 2
Select SmallCap Value Fund.................................. 1 --
Short Duration Fund......................................... 73 51
Small Company Fund.......................................... 309 57
</Table>
312
- --------------------------------------------------------------------------------
<Table>
<Caption>
FRONT-END LOAD CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
-------------- -------------------
SmallCap Growth Fund........................................ 669 76
Stock Fund.................................................. 867 322
Target Retirement 2010 Fund................................. 9 --
Target Retirement 2020 Fund................................. 27 --
Target Retirement 2030 Fund................................. 12 1
Tax-Free California Fund.................................... 63 7
Tax-Free Minnesota Fund..................................... 65 2
Tax-Free National Fund...................................... 446 40
Tax-Free New York Fund...................................... 6 5
Total Return Bond Fund...................................... 4,685 217
U.S. Government Securities Fund............................. 186 72
Value Fund.................................................. 238 22
Value Opportunities Fund.................................... 879 60
</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% of average daily net assets; however, the Board of
Directors has currently authorized 12b-1 payments of only up to 0.25%.
Some or all of the fee may be used for shareholder servicing expenses
with the remainder used for distribution expenses. 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 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. 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. After eight years, Classes H and M shares convert
to Class L shares. Upon conversion to Class L shares, the Class L plan
described above will apply to those shares.
The Funds' 12b-1 fees are accrued daily and paid monthly.
For the year ended October 31, 2006, total sales commissions paid to
affiliated brokers/dealers of The Hartford for distributing the Funds'
shares were $5,428. 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. During
the year ended October 31, 2006, HIFSCO has voluntarily limited the
total operating expenses of the Class A, B, C, H, I, L, M, N and Y
shares of some of the Funds, exclusive of taxes, interest, brokerage
commissions, certain distribution expenses and extraordinary expenses as
follows:
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS H CLASS I** CLASS L CLASS M CLASS N
---- ------- ------- ------- ------- --------- ------- ------- -------
Advisers Fund............... 1.18% NA NA NA NA NA NA NA
Aggressive Growth Allocation
Fund*..................... 1.65% 2.30% 2.30% NA 1.40% NA NA NA
Balanced Allocation Fund*... 1.45% 2.15% 2.15% NA 1.20% NA NA NA
Balanced Income Fund........ 1.25% 2.00% 2.00% NA NA NA NA NA
Capital Appreciation Fund... 1.29% NA NA NA 1.04% NA NA NA
Capital Appreciation II
Fund...................... 1.60% 2.35% 2.35% NA 1.35% NA NA NA
Conservative Allocation
Fund*..................... 1.40% 2.05% 2.05% NA 1.15% NA NA NA
Disciplined Equity Fund..... 1.40% 2.15% 2.15% NA NA NA NA NA
Dividend and Growth Fund.... 1.25% NA NA NA 1.00% NA NA NA
Equity Income Fund.......... 1.05% NA NA NA 0.80% NA NA NA
Floating Rate Fund.......... NA NA NA NA NA NA NA NA
Focus Fund.................. 1.50% 2.25% 2.25% NA NA NA NA NA
Global Communications
Fund...................... 1.15% 1.90% 1.90% NA NA NA NA NA
Global Financial Services
Fund...................... 1.15% 1.90% 1.90% NA NA NA NA NA
Global Health Fund.......... 1.60% 2.35% 2.35% NA 1.35% NA NA NA
Global Leaders Fund......... 1.48% 2.35% 2.35% NA NA NA NA NA
Global Technology Fund...... 1.60% 2.35% 2.35% NA NA NA NA NA
Growth Allocation Fund*..... 1.55% 2.20% 2.20% NA 1.30% NA NA NA
Growth Fund................. 1.33% 2.15% 2.15% 2.15% 1.08% 1.45% 2.15% 2.15%
Growth Opportunities Fund... 1.36% 2.15% 2.15% 2.15% 1.11% 1.45% 2.15% 2.15%
High Yield Fund............. 1.20% 1.95% 1.95% NA NA NA NA NA
Income Allocation Fund*..... 1.25% 1.95% 1.95% NA 1.00% NA NA NA
<Caption>
FUND CLASS Y
---- -------
Advisers Fund............... NA
Aggressive Growth Allocation
Fund*..................... NA
Balanced Allocation Fund*... NA
Balanced Income Fund........ 0.90%
Capital Appreciation Fund... NA
Capital Appreciation II
Fund...................... 1.15%
Conservative Allocation
Fund*..................... NA
Disciplined Equity Fund..... 1.00%
Dividend and Growth Fund.... NA
Equity Income Fund.......... NA
Floating Rate Fund.......... NA
Focus Fund.................. 1.10%
Global Communications
Fund...................... 0.75%
Global Financial Services
Fund...................... 0.75%
Global Health Fund.......... 1.20%
Global Leaders Fund......... 1.20%
Global Technology Fund...... 1.20%
Growth Allocation Fund*..... NA
Growth Fund................. 1.00%
Growth Opportunities Fund... 1.00%
High Yield Fund............. 0.80%
Income Allocation Fund*..... NA
</Table>
313
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS H CLASS I** CLASS L CLASS M CLASS N
---- ------- ------- ------- ------- --------- ------- ------- -------
Income Fund................. 0.95% 1.70% 1.70% NA NA NA NA NA
Inflation Plus Fund......... 0.95% 1.70% 1.70% NA 0.70% NA NA NA
International Capital
Appreciation Fund......... 1.60% 2.35% 2.35% NA 1.35% NA NA NA
International Opportunities
Fund...................... 1.57% 2.35% 2.35% NA NA NA NA NA
International Small Company
Fund...................... 1.60% 2.35% 2.35% NA NA NA NA NA
MidCap Fund................. 1.37% NA NA NA NA NA NA NA
MidCap Growth Fund.......... 1.40% 2.20% 2.20% NA NA NA NA NA
MidCap Value Fund........... 1.40% 2.15% 2.15% NA NA NA NA NA
Money Market Fund........... 0.95% 1.70% 1.70% NA NA NA NA NA
Retirement Income Fund*..... 1.25% 2.00% 2.00% NA NA NA NA NA
Select MidCap Growth Fund... 1.50% 2.25% 2.25% NA NA NA NA NA
Select MidCap Value Fund.... 1.55% 2.30% 2.30% NA NA NA NA NA
Select SmallCap Growth
Fund...................... 1.65% 2.40% 2.40% NA NA NA NA NA
Select SmallCap Value
Fund...................... 1.60% 2.35% 2.35% NA NA NA NA NA
Short Duration Fund......... 0.90% 1.65% 1.65% NA NA NA NA NA
SmallCap Growth Fund........ 1.40% 2.15% 2.15% 2.15% 1.15% 1.25% 2.15% 2.15%
Small Company Fund.......... 1.40% 2.15% 2.15% NA 1.15% NA NA NA
Stock Fund.................. 1.28% NA NA NA NA NA NA NA
Target Retirement 2010
Fund*..................... 1.30% 2.05% 2.05% NA NA NA NA NA
Target Retirement 2020
Fund*..................... 1.35% 2.10% 2.10% NA NA NA NA NA
Target Retirement 2030
Fund*..................... 1.40% 2.15% 2.15% NA NA NA NA NA
Tax-Free California Fund.... 0.90% 1.65% 1.65% NA NA NA NA NA
Tax-Free Minnesota Fund..... 0.85% 1.60% 1.60% 1.60% NA 0.90% 1.60% 1.60%
Tax-Free National Fund...... 1.00% 1.75% 1.75% 1.75% NA 1.05% 1.75% 1.75%
Tax-Free New York Fund...... 0.85% 1.60% 1.60% NA NA NA NA NA
Total Return Bond Fund...... 1.20% 1.95% 1.95% NA 0.95% NA NA NA
U.S. Government Securities
Fund...................... 1.15% 1.90% 1.90% 1.90% NA 1.20% 1.90% 1.90%
Value Fund.................. 1.40% 2.15% 2.15% NA NA NA NA NA
Value Opportunities Fund.... 1.40% 2.15% 2.15% 2.15% 1.15% 1.45% 2.15% 2.15%
<Caption>
FUND CLASS Y
---- -------
Income Fund................. 0.70%
Inflation Plus Fund......... 0.70%
International Capital
Appreciation Fund......... 1.20%
International Opportunities
Fund...................... 1.20%
International Small Company
Fund...................... 1.20%
MidCap Fund................. NA
MidCap Growth Fund.......... 1.00%
MidCap Value Fund........... 1.00%
Money Market Fund........... 0.55%
Retirement Income Fund*..... 0.95%
Select MidCap Growth Fund... 1.10%
Select MidCap Value Fund.... 1.15%
Select SmallCap Growth
Fund...................... 1.20%
Select SmallCap Value
Fund...................... 1.20%
Short Duration Fund......... 0.65%
SmallCap Growth Fund........ 1.10%
Small Company Fund.......... 1.00%
Stock Fund.................. NA
Target Retirement 2010
Fund*..................... 1.00%
Target Retirement 2020
Fund*..................... 1.05%
Target Retirement 2030
Fund*..................... 1.10%
Tax-Free California Fund.... NA
Tax-Free Minnesota Fund..... NA
Tax-Free National Fund...... NA
Tax-Free New York Fund...... NA
Total Return Bond Fund...... 0.80%
U.S. Government Securities
Fund...................... NA
Value Fund.................. 1.00%
Value Opportunities Fund.... 1.25%
</Table>
* Voluntary limitations for total operating expenses for Aggressive
Growth Allocation Fund, Balanced Allocation Fund, Conservative
Allocation Fund, Growth Allocation Fund, Income Allocation Fund,
Retirement Income Fund, Target Retirement 2010 Fund, Target
Retirement 2020 Fund and Target Retirement 2030 Fund include
expenses incurred as the result of investing in other investment
companies.
** Effective August 31, 2006 through October 31, 2006.
NA Not applicable.
314
- --------------------------------------------------------------------------------
Effective November 1, 2006, HIFSCO changed the voluntary limit on the
total operating expenses of the Class A, B, C, E, H, I, L, M, N and Y
shares of some of the Funds, exclusive of taxes, interest, brokerage
commissions, certain distribution expenses and extraordinary expenses.
The new expense limitations are as follows:
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS E CLASS I CLASS L CLASSES H,M,N CLASS Y
---- ------- ------- ------- ------- ------- ------- ------------- -------
Aggressive Growth Allocation
Fund*...................... 1.60% 2.25% 2.25% NA 1.35% NA NA NA
Balanced Allocation Fund*.... 1.40% 2.10% 2.10% NA 1.15% NA NA NA
Conservative Allocation
Fund*...................... 1.35% 2.00% 2.00% NA 1.10% NA NA NA
Equity Income Fund........... 1.25% 2.00% 2.00% NA 1.00% NA NA 0.90%
Floating Rate Fund........... 1.00% 1.75% 1.75% NA 0.75% NA NA 0.75%
Global Communications Fund... 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Global Financial Services
Fund....................... 1.60% 2.35% 2.35% NA NA NA NA 1.20%
Growth Allocation Fund*...... 1.50% 2.15% 2.15% NA 1.25% NA NA NA
High Yield Fund.............. 1.15% 1.90% 1.90% NA NA NA NA 0.75%
Income Allocation Fund*...... 1.20% 1.90% 1.90% NA 0.95% NA NA NA
Inflation Plus Fund.......... 0.85% 1.60% 1.60% NA 0.60% NA NA 0.60%
Retirement Income Fund*...... 1.20% 1.95% 1.95% NA NA NA NA 0.90%
Stock Fund................... 1.28% NA NA NA NA NA NA NA
Target Retirement 2010
Fund*...................... 1.25% 2.00% 2.00% NA NA NA NA 0.95%
Target Retirement 2020
Fund*...................... 1.30% 2.05% 2.05% NA NA NA NA 1.00%
Target Retirement 2030
Fund*...................... 1.35% 2.10% 2.10% NA NA NA NA 1.05%
Tax-Free California Fund..... 0.85% 1.60% 1.60% NA NA NA NA 0.75%
Tax-Free Minnesota Fund...... 0.85% 1.60% 1.60% 0.75% NA 0.90% 1.60% 0.75%
Tax-Free National Fund....... 0.85% 1.60% 1.60% 0.75% NA 0.90% 1.60% 0.75%
Total Return Bond Fund....... 1.00% 1.75% 1.75% NA 0.75% NA NA 0.75%
U.S. Government Securities
Fund....................... 1.00% 1.75% 1.75% 0.75% NA 1.00% 1.75% 0.75%
</Table>
* Voluntary limitations for total operating expenses for Aggressive
Growth Allocation Fund, Balanced Allocation Fund, Conservative
Allocation Fund, Growth Allocation Fund, Income Allocation Fund,
Retirement Income Fund, Target Retirement 2010 Fund, Target
Retirement 2020 Fund and Target Retirement 2030 Fund include expenses
incurred as the result of investing in other investment companies.
Effective November 1, 2005, Hartford Administrative Services Company
(HASCO) agreed to waive a portion of the transfer agency fees of the
Funds, under a voluntary undertaking, to 0.35% of average daily net
assets per fiscal year for all A, B and C share classes. This waiver is
in addition to the expense limitations listed above.
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.
d) Fees Paid Indirectly -- The Funds have entered into agreements with
State Street Global Advisors and Russell Investment Group to partially
recapture non-discounted trade commissions. Such rebates are used to pay
a portion of the Funds' expenses. In addition, the Funds' custodian bank
has agreed to reduce its fees when the Funds maintain cash on deposit in
the non-interest-bearing custody account. For the year ended October 31,
2006, these amounts are included in the Statement of Operations.
The ratio of expenses to average net assets in the financial highlights
excludes fees paid indirectly. Had the fees paid indirectly been
included, the annualized expense ratio for the periods listed below
would have been as follows:
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
FUND 2006 2005 2004
---- ----------- ----------- -----------
ADVISERS FUND
Class A Shares.............................................. 1.11% 1.18% 1.22%
Class B Shares.............................................. 1.90% 1.96% 1.94%
Class C Shares.............................................. 1.81% 1.88% 1.86%
Class Y Shares.............................................. 0.65% 0.73% 0.74%
AGGRESSIVE GROWTH ALLOCATION FUND
Class A Shares.............................................. 0.72% 0.68%
Class B Shares.............................................. 1.37% 1.33%
Class C Shares.............................................. 1.37% 1.34%
Class I Shares.............................................. 0.48%+
</Table>
315
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
FUND 2006 2005 2004
---- ----------- ----------- -----------
BALANCED ALLOCATION FUND
Class A Shares.............................................. 0.62% 0.60%
Class B Shares.............................................. 1.36% 1.31%
Class C Shares.............................................. 1.36% 1.31%
Class I Shares.............................................. 0.39%+
BALANCED INCOME FUND
Class A Shares.............................................. 1.25%#
Class B Shares.............................................. 2.00%#
Class C Shares.............................................. 2.00%#
Class Y Shares.............................................. 0.90%#
CAPITAL APPRECIATION FUND
Class A Shares.............................................. 1.17% 1.22% 1.32%
Class B Shares.............................................. 1.96% 1.99% 2.03%
Class C Shares.............................................. 1.88% 1.91% 1.94%
Class I Shares.............................................. 0.88%+
Class Y Shares.............................................. 0.73% 0.75% 0.76%
CAPITAL APPRECIATION II FUND
Class A Shares.............................................. 1.59% 1.60%@
Class B Shares.............................................. 2.34% 2.35%@
Class C Shares.............................................. 2.32% 2.35%@
Class I Shares.............................................. 0.80%+
Class Y Shares.............................................. 1.13% 1.15%@
CONSERVATIVE ALLOCATION FUND
Class A Shares.............................................. 0.63% 0.60%
Class B Shares.............................................. 1.31% 1.26%
Class C Shares.............................................. 1.31% 1.26%
Class I Shares.............................................. 0.41%+
DISCIPLINED EQUITY FUND
Class A Shares.............................................. 1.39% 1.38% 1.44%
Class B Shares.............................................. 2.07% 2.13% 2.14%
Class C Shares.............................................. 2.09% 2.10% 2.09%
Class Y Shares.............................................. 0.88% 0.89% 0.87%
DIVIDEND AND GROWTH FUND
Class A Shares.............................................. 1.13% 1.16% 1.22%
Class B Shares.............................................. 1.98% 2.01% 2.03%
Class C Shares.............................................. 1.86% 1.88% 1.89%
Class I Shares.............................................. 0.98%+
Class Y Shares.............................................. 0.70% 0.72% 0.74%
EQUITY INCOME FUND
Class A Shares.............................................. 1.00% 0.50% 0.56%
Class B Shares.............................................. 1.84% 1.38% 1.36%
Class C Shares.............................................. 1.70% 1.22% 1.19%
Class I Shares.............................................. 0.80%+
Class Y Shares.............................................. 0.57% 0.10% 0.10%
FLOATING RATE FUND
Class A Shares.............................................. 0.50%
Class B Shares.............................................. 1.35%
Class C Shares.............................................. 1.28%
Class I Shares.............................................. 0.43%+
Class Y Shares.............................................. 0.15%
FOCUS FUND
Class A Shares.............................................. 1.48% 1.57% 1.59%
Class B Shares.............................................. 2.23% 2.32% 2.32%
Class C Shares.............................................. 2.23% 2.32% 2.25%
Class Y Shares.............................................. 1.05% 1.13% 1.08%
GLOBAL COMMUNICATIONS FUND
Class A Shares.............................................. 1.11% 1.49% 1.63%
Class B Shares.............................................. 1.73% 2.24% 2.33%
Class C Shares.............................................. 1.85% 2.23% 2.33%
Class Y Shares.............................................. 0.70% 1.04% 1.17%
</Table>
316
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
FUND 2006 2005 2004
---- ----------- ----------- -----------
GLOBAL FINANCIAL SERVICES FUND
Class A Shares.............................................. 1.14% 1.48% 1.63%
Class B Shares.............................................. 1.77% 2.25% 2.33%
Class C Shares.............................................. 1.90% 2.25% 2.33%
Class Y Shares.............................................. 0.74% 1.07% 1.18%
GLOBAL HEALTH FUND
Class A Shares.............................................. 1.60% 1.58% 1.63%
Class B Shares.............................................. 2.31% 2.33% 2.34%
Class C Shares.............................................. 2.31% 2.33% 2.34%
Class I Shares.............................................. 1.14%+
Class Y Shares.............................................. 1.08% 1.06% 1.10%
GLOBAL LEADERS FUND
Class A Shares.............................................. 1.45% 1.36% 1.53%
Class B Shares.............................................. 2.15% 2.23% 2.26%
Class C Shares.............................................. 2.18% 2.13% 2.15%
Class Y Shares.............................................. 0.91% 0.85% 0.84%
GLOBAL TECHNOLOGY FUND
Class A Shares.............................................. 1.32% 1.53% 1.60%
Class B Shares.............................................. 1.96% 2.28% 2.30%
Class C Shares.............................................. 2.21% 2.28% 2.30%
Class Y Shares.............................................. 1.17% 1.13% 1.09%
GROWTH ALLOCATION FUND
Class A Shares.............................................. 0.67% 0.64%
Class B Shares.............................................. 1.32% 1.29%
Class C Shares.............................................. 1.32% 1.29%
Class I Shares.............................................. 0.42%+
GROWTH FUND
Class A Shares.............................................. 1.31% 1.31% 1.43%
Class B Shares.............................................. 2.08% 2.13% 2.13%
Class C Shares.............................................. 2.00% 2.03% 2.05%
Class H Shares.............................................. 1.78% 1.79% 1.80%
Class I Shares.............................................. 0.89%+
Class L Shares.............................................. 1.03% 1.04% 1.05%
Class M Shares.............................................. 1.78% 1.79% 1.80%
Class N Shares.............................................. 1.78% 1.79% 1.80%
Class Y Shares.............................................. 0.81% 0.83% 0.85%
GROWTH OPPORTUNITIES FUND
Class A Shares.............................................. 1.18% 1.30% 1.40%
Class B Shares.............................................. 2.05% 2.08% 2.10%
Class C Shares.............................................. 2.05% 2.07% 2.06%
Class H Shares.............................................. 1.79% 1.77% 1.78%
Class I Shares.............................................. 1.11%+
Class L Shares.............................................. 1.04% 1.02% 1.03%
Class M Shares.............................................. 1.79% 1.77% 1.78%
Class N Shares.............................................. 1.79% 1.77% 1.78%
Class Y Shares.............................................. 0.81% 0.82% 0.77%
Class Z Shares.............................................. 0.79% 0.77% 0.78%
HIGH YIELD FUND
Class A Shares.............................................. 1.20% 1.33%
Class B Shares.............................................. 1.94% 2.10%
Class C Shares.............................................. 1.89% 2.00%
Class Y Shares.............................................. 0.73% 0.87%
INCOME ALLOCATION FUND
Class A Shares.............................................. 0.61% 0.56%
Class B Shares.............................................. 1.31% 1.26%
Class C Shares.............................................. 1.31% 1.26%
Class I Shares.............................................. 0.37%+
INCOME FUND
Class A Shares.............................................. 0.95% 0.95%
Class B Shares.............................................. 1.70% 1.70%
Class C Shares.............................................. 1.70% 1.70%
Class Y Shares.............................................. 0.70% 0.70%
</Table>
317
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
FUND 2006 2005 2004
---- ----------- ----------- -----------
INFLATION PLUS FUND
Class A Shares.............................................. 0.95% 0.95%
Class B Shares.............................................. 1.70% 1.70%
Class C Shares.............................................. 1.70% 1.70%
Class I Shares.............................................. 0.70%+
Class Y Shares.............................................. 0.68% 0.68%
INTERNATIONAL CAPITAL APPRECIATION FUND
Class A Shares.............................................. 1.56% 1.53% 1.59%
Class B Shares.............................................. 2.26% 2.28% 2.29%
Class C Shares.............................................. 2.31% 2.28% 2.28%
Class I Shares.............................................. 1.35%+
Class Y Shares.............................................. 1.12% 1.13% 1.05%
INTERNATIONAL OPPORTUNITIES FUND
Class A Shares.............................................. 1.54% 1.52% 1.60%
Class B Shares.............................................. 2.12% 2.30% 2.30%
Class C Shares.............................................. 2.30% 2.30% 2.30%
Class Y Shares.............................................. 0.99% 1.01% 1.03%
INTERNATIONAL SMALL COMPANY FUND
Class A Shares.............................................. 1.58% 1.55% 1.60%
Class B Shares.............................................. 2.22% 2.30% 2.30%
Class C Shares.............................................. 2.33% 2.30% 2.29%
Class Y Shares.............................................. 1.18% 1.15% 1.15%
MIDCAP FUND
Class A Shares.............................................. 1.25% 1.28% 1.36%
Class B Shares.............................................. 2.01% 2.06% 2.10%
Class C Shares.............................................. 1.93% 1.97% 2.00%
Class Y Shares.............................................. 0.78% 0.81% 0.84%
MIDCAP GROWTH FUND
Class A Shares.............................................. 1.20%#
Class B Shares.............................................. 2.05%#
Class C Shares.............................................. 2.07%#
Class Y Shares.............................................. 0.79%#
MIDCAP VALUE FUND
Class A Shares.............................................. 1.39% 1.38% 1.43%
Class B Shares.............................................. 2.14% 2.13% 2.13%
Class C Shares.............................................. 2.14% 2.13% 2.13%
Class Y Shares.............................................. 0.93% 0.94% 0.88%
MONEY MARKET FUND
Class A Shares.............................................. 0.95% 0.95%
Class B Shares.............................................. 1.70% 1.70%
Class C Shares.............................................. 1.70% 1.70%
Class Y Shares.............................................. 0.55% 0.55%
RETIREMENT INCOME FUND
Class A Shares.............................................. 0.54%
Class B Shares.............................................. 1.30%
Class C Shares.............................................. 1.30%
Class Y Shares.............................................. 0.24%
SELECT MIDCAP GROWTH FUND
Class A Shares.............................................. 1.48% 1.49%*
Class B Shares.............................................. 2.09% 2.24%*
Class C Shares.............................................. 2.23% 2.24%*
Class Y Shares.............................................. 1.08% 1.09%*
SELECT MIDCAP VALUE FUND
Class A Shares.............................................. 1.50% 1.54%@
Class B Shares.............................................. 2.25% 2.29%@
Class C Shares.............................................. 2.25% 2.29%@
Class Y Shares.............................................. 1.11% 1.14%@
SELECT SMALLCAP GROWTH FUND
Class A Shares.............................................. 1.65%
Class B Shares.............................................. 2.39%
Class C Shares.............................................. 2.39%
Class Y Shares.............................................. 1.17%
</Table>
318
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
FUND 2006 2005 2004
---- ----------- ----------- -----------
SELECT SMALLCAP VALUE FUND
Class A Shares.............................................. 1.60%#
Class B Shares.............................................. 2.35%#
Class C Shares.............................................. 2.35%#
Class Y Shares.............................................. 1.20%#
SHORT DURATION FUND
Class A Shares.............................................. 0.90% 0.90%
Class B Shares.............................................. 1.65% 1.65%
Class C Shares.............................................. 1.65% 1.65%
Class Y Shares.............................................. 0.65% 0.65%
SMALL COMPANY FUND
Class A Shares.............................................. 1.37% 1.35% 1.40%
Class B Shares.............................................. 2.12% 2.10% 2.10%
Class C Shares.............................................. 2.11% 2.10% 2.10%
Class Y Shares.............................................. 0.91% 0.92% 0.94%
Class I Shares.............................................. 1.08%+
SMALLCAP GROWTH FUND
Class A Shares.............................................. 1.34% 1.38% 1.44%
Class B Shares.............................................. 2.00% 2.13% 2.14%
Class C Shares.............................................. 2.13% 2.13% 2.14%
Class H Shares.............................................. 1.88% 1.95% 1.97%
Class I Shares.............................................. 1.15%+
Class L Shares.............................................. 1.13% 1.20% 1.42%
Class M Shares.............................................. 1.88% 1.95% 1.97%
Class N Shares.............................................. 1.88% 1.95% 1.97%
Class Y Shares.............................................. 0.90% 0.97% 1.02%
STOCK FUND
Class A Shares.............................................. 1.26% 1.31% 1.42%
Class B Shares.............................................. 2.10% 2.21% 2.18%
Class C Shares.............................................. 2.01% 2.07% 2.03%
Class Y Shares.............................................. 0.76% 0.82% 0.80%
TARGET RETIREMENT 2010 FUND
Class A Shares.............................................. 0.54%
Class B Shares.............................................. 1.29%
Class C Shares.............................................. 1.30%
Class Y Shares.............................................. 0.23%
TARGET RETIREMENT 2020 FUND
Class A Shares.............................................. 0.53%
Class B Shares.............................................. 1.29%
Class C Shares.............................................. 1.30%
Class Y Shares.............................................. 0.22%
TARGET RETIREMENT 2030 FUND
Class A Shares.............................................. 0.53%
Class B Shares.............................................. 1.24%
Class C Shares.............................................. 1.10%
Class Y Shares.............................................. 0.20%
TAX-FREE CALIFORNIA FUND
Class A Shares.............................................. 0.89% 0.89%
Class B Shares.............................................. 1.64% 1.64%
Class C Shares.............................................. 1.64% 1.64%
TAX-FREE MINNESOTA FUND
Class A Shares.............................................. 0.84% 0.84%
Class B Shares.............................................. 1.56% 1.59%
Class C Shares.............................................. 1.56% 1.59%
Class E Shares.............................................. 0.82% 0.87%
Class H Shares.............................................. 1.56% 1.59%
Class L Shares.............................................. 0.86% 0.89%
Class M Shares.............................................. 1.56% 1.59%
Class N Shares.............................................. 1.56% 1.59%
Class Y Shares.............................................. 0.83% 0.90%
</Table>
319
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
FUND 2006 2005 2004
---- ----------- ----------- -----------
TAX-FREE NATIONAL FUND
Class A Shares.............................................. 1.00% 1.01%
Class B Shares.............................................. 1.75% 1.75%
Class C Shares.............................................. 1.75% 1.75%
Class E Shares.............................................. 0.88% 0.91%
Class H Shares.............................................. 1.74% 1.75%
Class L Shares.............................................. 1.05% 1.05%
Class M Shares.............................................. 1.75% 1.75%
Class N Shares.............................................. 1.75% 1.75%
Class Y Shares.............................................. 0.89% 0.98%
TAX-FREE NEW YORK FUND
Class A Shares.............................................. 0.83% 0.84%
Class B Shares.............................................. 1.58% 1.59%
Class C Shares.............................................. 1.58% 1.59%
TOTAL RETURN BOND FUND
Class A Shares.............................................. 1.19% 1.20%
Class B Shares.............................................. 1.95% 1.95%
Class C Shares.............................................. 1.86% 1.87%
Class I Shares.............................................. 0.91%+
Class Y Shares.............................................. 0.70% 0.74%
U.S. GOVERNMENT SECURITIES FUND
Class A Shares.............................................. 1.15% 1.15%
Class B Shares.............................................. 1.90% 1.90%
Class C Shares.............................................. 1.90% 1.90%
Class E Shares.............................................. 0.83% 0.83%
Class H Shares.............................................. 1.83% 1.82%
Class L Shares.............................................. 1.08% 1.08%
Class M Shares.............................................. 1.83% 1.82%
Class N Shares.............................................. 1.83% 1.82%
Class Y Shares.............................................. 0.83% 0.86%
VALUE FUND
Class A Shares.............................................. 1.37% 1.39% 1.44%
Class B Shares.............................................. 2.12% 2.14% 2.14%
Class C Shares.............................................. 2.14% 2.14% 2.14%
Class Y Shares.............................................. 0.91% 0.92% 0.90%
VALUE OPPORTUNITIES FUND
Class A Shares.............................................. 1.39% 1.39% 1.44%
Class B Shares.............................................. 2.11% 2.14% 2.15%
Class C Shares.............................................. 2.14% 2.14% 2.15%
Class H Shares.............................................. 1.96% 2.05% 2.14%
Class I Shares.............................................. 1.15%+
Class L Shares.............................................. 1.22% 1.30% 1.41%
Class M Shares.............................................. 1.97% 2.05% 2.14%
Class N Shares.............................................. 1.97% 2.05% 2.14%
Class Y Shares.............................................. 0.99% 1.06% 1.15%
</Table>
* From (commencement of operations) January 1, 2005, through October
31, 2005.
@ From (commencement of operations) April 29, 2005, through October 31,
2005.
# From (commencement of operations) July 31, 2006, through October 31,
2006.
+ From (commencement of operations) August 31, 2006, through October
31, 2006.
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 received monthly
compensation at the annual rate of 0.02% of each Fund's Class A, B, C, I
and Y average daily net assets. Effective January 1, 2006, the rate was
reduced to 0.015%, except for Aggressive Allocation Fund, Balanced
Allocation Fund, Conservative Allocation Fund, Growth Allocation Fund,
Income Allocation Fund which pay a fee of 0.01% of each Fund's Class A,
B, C and I average daily net assets; and Retirement Income Fund, Target
Retirement 2010 Fund, Target Retirement 2020 Fund, and Target Retirement
2030 Fund which pay a fee of 0.01% of each Fund's Class A, B, C and Y
average daily net assets. The Fund's accounting services fees are
accrued daily and paid monthly.
f) Other Related Party Transactions -- The Hartford provided certain legal
services to the Funds, for which the Funds were charged $107 for the
year ended October 31, 2006. Certain officers of the Funds are directors
and/or officers of HIFSCO, Hartford Investment Management and/or The
Hartford or its subsidiaries. For the year ended October 31, 2006, a
portion of the Funds' chief compliance officer's salary was paid by the
Funds in the amount of $19. The payment is included in the Board of
Director's fees on the Funds' Statement of Operations. HASCO, a wholly
320
- --------------------------------------------------------------------------------
owned subsidiary of The Hartford, provides transfer agent services to the Funds.
HASCO was compensated $63,806 for providing such services. The Funds accrue
these fees daily and pay monthly.
4. AFFILIATE HOLDINGS:
As of October 31, 2006, affiliates of The Hartford had ownership of shares
in the Funds as follows:
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS I CLASS Y
---- ------- ------- ------- ------- -------
Aggressive Growth Allocation Fund........................... -- -- -- 1 --
Balanced Allocation Fund.................................... -- -- -- 1 --
Balanced Income Fund........................................ 945 25 25 -- 10
Capital Appreciation Fund................................... -- -- -- Y --
Capital Appreciation II Fund................................ -- -- -- 1 9
Conservative Allocation Fund................................ -- -- -- 1 --
Dividend and Growth Fund.................................... -- -- -- Y --
Equity Income Fund.......................................... -- -- -- 1 --
Floating Rate Fund.......................................... -- -- -- 1 --
Global Health Fund.......................................... -- -- -- 1 --
Global Financial Services Fund.............................. 575 -- -- -- --
Growth Allocation Fund...................................... -- -- -- 1 --
Growth Fund................................................. -- -- -- 1 --
Growth Opportunities Fund................................... -- -- -- Y --
Income Allocation Fund...................................... -- -- -- 1 --
Inflation Plus Fund......................................... -- -- -- 1 --
International Capital Appreciation Fund..................... -- -- -- 1 --
MidCap Growth Fund.......................................... 940 25 25 -- 10
Retirement Income Fund...................................... 27 12 12 -- 12
Select MidCap Growth Fund................................... 545 20 20 -- 20
Select MidCap Value Fund.................................... 1,381 51 51 -- 51
Select SmallCap Growth Fund................................. 540 20 20 -- 20
Select SmallCap Value Fund.................................. 1,440 25 25 -- 10
Small Company Fund.......................................... 475 -- -- Y --
SmallCap Growth Fund........................................ -- -- -- Y --
Target Retirement 2010 Fund................................. 24 14 14 -- 14
Target Retirement 2020 Fund................................. 8 1 1 -- 1
Target Retirement 2030 Fund................................. 8 3 3 -- 3
Tax-Free California Fund.................................... 819 -- -- -- NA
Tax-Free Minnesota Fund..................................... -- -- -- -- 1
Tax-Free National Fund...................................... -- -- -- -- 1
Tax-Free New York Fund...................................... 936 114 114 -- NA
Total Return Bond Fund...................................... -- -- -- 1 --
U.S. Government Securities Fund............................. -- -- -- -- 1
Value Opportunities Fund.................................... -- -- -- 1 --
</Table>
Y Due to the presentation of the financial statements in thousands, the
number of shares held round to zero.
NA Not applicable
321
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS:
For the period ended October 31, 2006, the cost of purchases and proceeds
from sales of securities for Money Market Fund were $2,591,899 and
$2,570,423, respectively. The cost of purchases and proceeds from sales of
securities (excluding short-term investments) for the other portfolios were
as follows:
<Table>
<Caption>
COST OF
PURCHASES SALES PROCEEDS COST OF SALES PROCEEDS
EXCLUDING EXCLUDING PURCHASES FOR FOR
U.S. GOVERNMENT U.S. GOVERNMENT U.S. GOVERNMENT U.S. GOVERNMENT
FUND OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS
---- --------------- --------------- --------------- ---------------
Advisers Fund.................................. $ 1,610,655 $1,917,747 $ 197,421 $ 289,599
Aggressive Growth Allocation Fund.............. 94,424 24,808 -- --
Balanced Allocation Fund....................... 344,279 100,315 -- --
Balanced Income Fund........................... 12,171 743 166 161
Capital Appreciation Fund...................... 10,680,586 8,560,968 -- --
Capital Appreciation II Fund................... 466,026 228,564 -- --
Conservative Allocation Fund................... 70,622 41,327 -- --
Disciplined Equity Fund........................ 282,506 268,787 -- --
Dividend and Growth Fund....................... 970,419 867,622 -- --
Equity Income Fund............................. 212,199 124,210 -- --
Floating Rate Fund............................. 2,621,322 397,642 -- --
Focus Fund..................................... 92,901 113,719 -- --
Global Communications Fund..................... 31,796 28,727 -- --
Global Financial Services Fund................. 17,644 12,139 -- --
Global Health Fund............................. 299,428 177,217 -- --
Global Leaders Fund............................ 874,355 924,535 -- --
Global Technology Fund......................... 82,081 83,148 -- --
Growth Allocation Fund......................... 306,144 75,545 -- --
Growth Fund.................................... 1,215,035 1,150,984 -- --
Growth Opportunities Fund...................... 1,599,601 1,428,040 -- --
High Yield Fund................................ 435,409 455,857 -- --
Income Allocation Fund......................... 20,510 13,504 -- --
Income Fund.................................... 141,417 84,282 40,112 42,606
Inflation Plus Fund............................ 124,999 45,230 1,676,923 1,899,124
International Capital Appreciation Fund........ 524,348 494,260 -- --
International Opportunities Fund............... 280,653 214,593 -- --
International Small Company Fund............... 197,641 165,767 -- --
MidCap Fund.................................... 2,428,643 2,707,518 -- --
MidCap Growth Fund............................. 21,765 11,568
MidCap Value Fund.............................. 183,174 252,603 -- --
Retirement Income Fund......................... 966 173 -- --
Select MidCap Growth Fund...................... 78,866 45,050 -- --
Select MidCap Value Fund....................... 72,419 31,337 -- --
Select SmallCap Growth Fund.................... 11,032 5,108 -- --
Select SmallCap Value Fund..................... 16,831 1,471
Short Duration Fund............................ 115,012 96,741 38,818 54,859
Small Company Fund............................. 643,618 607,896 -- --
SmallCap Growth Fund........................... 538,622 361,155 -- --
Stock Fund..................................... 1,375,745 1,637,913 -- --
Target Retirement 2010 Fund.................... 2,437 102 -- --
Target Retirement 2020 Fund.................... 2,679 176 -- --
Target Retirement 2030 Fund.................... 2,224 113 -- --
Tax-Free California Fund....................... 10,393 417 -- --
Tax-Free Minnesota Fund........................ 5,367 6,803 -- --
Tax-Free National Fund......................... 40,277 15,140 -- --
Tax-Free New York Fund......................... 3,685 3,643 -- --
Total Return Bond Fund......................... 2,431,424 2,270,684 1,842,551 1,844,362
U.S. Government Securities Fund................ 147,534 157,361 187,615 210,028
Value Fund..................................... 79,154 73,703 -- --
Value Opportunities Fund....................... 167,844 148,022 -- --
</Table>
322
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS:
The following information is for the periods ended October 31, 2006 and
2005:
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS
------------------------ ---------------------
2006 2005 2006 2005
---------- ---------- --------- --------
ADVISERS FUND:
Class A Shares........... 5,913 6,088 1,293 1,779
Amount............ $ 94,790 $ 91,820 $ 20,524 $26,792
Class B Shares........... 706 1,086 244 378
Amount............ $ 11,190 $ 16,184 $ 3,830 $ 5,650
Class C Shares........... 595 564 153 236
Amount............ $ 9,531 $ 8,492 $ 2,436 $ 3,550
Class Y Shares........... 102 126 24 23
Amount............ $ 1,645 $ 1,907 $ 381 $ 344
AGGRESSIVE GROWTH
ALLOCATION FUND:
Class A Shares........... 4,899 4,667 42 3
Amount............ $ 61,480 $ 52,239 $ 510 $ 34
Class B Shares........... 1,044 1,490 3 --
Amount............ $ 13,071 $ 16,492 $ 36 $ 1
Class C Shares........... 2,047 3,009 5 --
Amount............ $ 25,510 $ 33,325 $ 55 $ 2
Class I Shares........... 1 -- -- --
Amount............ $ 10 $ -- $ -- $ --
BALANCED ALLOCATION FUND:
Class A Shares........... 19,071 19,911 584 164
Amount............ $ 220,432 $ 214,294 $ 6,675 $ 1,783
Class B Shares........... 3,455 5,297 95 15
Amount............ $ 39,827 $ 56,712 $ 1,083 $ 166
Class C Shares........... 6,694 7,706 123 20
Amount............ $ 77,177 $ 82,665 $ 1,397 $ 215
Class I Shares........... 30 -- -- --
Amount............ $ 354 $ -- $ -- $ --
BALANCED INCOME FUND
Class A Shares........... 1,099 -- 6 --
Amount............ $ 11,040 $ -- $ 56 $ --
Class B Shares........... 29 -- -- --
Amount............ $ 293 $ -- $ 1 $ --
Class C Shares........... 40 -- -- --
Amount............ $ 396 $ -- $ 1 $ --
Class Y Shares........... 10 -- -- --
Amount............ $ 100 $ -- $ 1 $ --
CAPITAL APPRECIATION
FUND:
Class A Shares........... 84,017 52,233 14,870 --
Amount............ $3,124,042 $1,777,216 $506,913 $ --
Class B Shares........... 8,674 6,556 4,950 --
Amount............ $ 296,102 $ 207,239 $155,430 $ --
Class C Shares........... 29,995 14,201 5,348 --
Amount............ $1,028,852 $ 452,151 $168,448 $ --
Class I Shares........... 131 -- -- --
Amount............ $ 5,082 $ -- $ -- $ --
Class Y Shares........... 3,241 3,153 605 --
Amount............ $ 127,775 $ 111,884 $ 21,836 $ --
<Caption>
NET INCREASE (DECREASE)
SHARES REDEEMED OF SHARES
------------------------ ------------------------
2006 2005 2006 2005
----------- --------- ---------- ----------
ADVISERS FUND:
Class A Shares........... (20,561) (33,823) (13,355) (25,956)
Amount............ $ (328,675) $(511,587) $ (213,361) $ (392,975)
Class B Shares........... (9,117) (10,823) (8,167) (9,359)
Amount............ $ (144,469) $(161,821) $ (129,449) $ (139,987)
Class C Shares........... (4,156) (8,691) (3,408) (7,891)
Amount............ $ (66,459) $(130,715) $ (54,492) $ (118,673)
Class Y Shares........... (68) (82) 58 67
Amount............ $ (1,097) $ (1,239) $ 929 $ 1,012
AGGRESSIVE GROWTH
ALLOCATION FUND:
Class A Shares........... (1,216) (798) 3,725 3,872
Amount............ $ (15,270) $ (9,056) $ 46,720 $ 43,217
Class B Shares........... (278) (156) 769 1,334
Amount............ $ (3,471) $ (1,761) $ 9,636 $ 14,732
Class C Shares........... (965) (655) 1,087 2,354
Amount............ $ (11,848) $ (7,537) $ 13,717 $ 25,790
Class I Shares........... -- -- 1 --
Amount............ $ -- $ -- $ 10 $ --
BALANCED ALLOCATION FUND:
Class A Shares........... (5,910) (2,593) 13,745 17,482
Amount............ $ (68,331) $ (28,312) $ 158,776 $ 187,765
Class B Shares........... (1,092) (496) 2,458 4,816
Amount............ $ (12,605) $ (5,352) $ 28,305 $ 51,526
Class C Shares........... (1,987) (1,230) 4,830 6,496
Amount............ $ (22,926) $ (13,269) $ 55,648 $ 69,611
Class I Shares........... (1) -- 29 --
Amount............ $ (6) $ -- $ 348 $ --
BALANCED INCOME FUND
Class A Shares........... -- -- 1,105 --
Amount............ $ (2) $ -- $ 11,094 $ --
Class B Shares........... -- -- 29 --
Amount............ $ (1) $ -- $ 293 $ --
Class C Shares........... (1) -- 39 --
Amount............ $ (10) $ -- $ 387 $ --
Class Y Shares........... -- -- 10 --
Amount............ $ -- $ -- $ 101 $ --
CAPITAL APPRECIATION
FUND:
Class A Shares........... (30,418) (22,397) 68,469 29,836
Amount............ $(1,131,379) $(767,171) $2,499,576 $1,010,045
Class B Shares........... (10,212) (8,132) 3,412 (1,576)
Amount............ $ (346,891) $(261,148) $ 104,641 $ (53,909)
Class C Shares........... (7,758) (6,955) 27,585 7,246
Amount............ $ (265,307) $(221,286) $ 931,993 $ 230,865
Class I Shares........... -- -- 131 --
Amount............ $ -- $ -- $ 5,082 $ --
Class Y Shares........... (400) (388) 3,446 2,765
Amount............ $ (15,793) $ (14,238) $ 133,818 $ 97,646
</Table>
323
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR
SHARES SOLD REINVESTED DIVIDENDS
------------------------ ---------------------
2006 2005 2006 2005
---------- ---------- --------- --------
CAPITAL APPRECIATION II
FUND:
Class A Shares........... 15,712 5,323 68 --
Amount............ $ 195,318 $ 57,024 $ 756 $ --
Class B Shares........... 1,831 589 8 --
Amount............ $ 22,555 $ 6,345 $ 89 $ --
Class C Shares........... 6,194 1,792 23 --
Amount............ $ 76,372 $ 19,422 $ 261 $ --
Class I Shares........... 252 -- -- --
Amount............ $ 3,204 $ -- $ -- $ --
Class Y Shares........... -- 30 -- --
Amount............ $ -- $ 300 $ 5 $ --
CONSERVATIVE ALLOCATION
FUND:
Class A Shares........... 4,226 5,061 244 73
Amount............ $ 45,809 $ 53,341 $ 2,610 $ 776
Class B Shares........... 781 1,057 44 10
Amount............ $ 8,456 $ 11,098 $ 476 $ 109
Class C Shares........... 2,288 3,289 78 21
Amount............ $ 24,716 $ 34,653 $ 832 $ 217
Class I Shares........... 1 -- -- --
Amount............ $ 10 $ -- $ -- $ --
DISCIPLINED EQUITY FUND:
Class A Shares........... 935 1,341 24 153
Amount............ $ 11,655 $ 15,365 $ 299 $ 1,755
Class B Shares........... 149 238 -- 2
Amount............ $ 1,770 $ 2,623 $ -- $ 23
Class C Shares........... 70 145 -- 4
Amount............ $ 842 $ 1,606 $ -- $ 39
Class Y Shares........... 5,783 4,983 45 29
Amount............ $ 73,790 $ 59,052 $ 573 $ 346
DIVIDEND AND GROWTH FUND:
Class A Shares........... 21,843 20,127 5,992 2,427
Amount............ $ 433,830 $ 377,916 $113,149 $45,020
Class B Shares........... 2,428 3,042 816 268
Amount............ $ 47,610 $ 56,232 $ 15,076 $ 4,853
Class C Shares........... 2,192 2,119 679 245
Amount............ $ 43,037 $ 39,143 $ 12,532 $ 4,444
Class I Shares........... -- -- -- --
Amount............ $ 10 $ -- $ -- $ --
Class Y Shares........... 1,165 2,396 327 120
Amount............ $ 23,005 $ 45,265 $ 6,264 $ 2,257
EQUITY INCOME FUND:
Class A Shares........... 10,053 15,486 810 589
Amount............ $ 131,486 $ 185,634 $ 10,337 $ 7,058
Class B Shares........... 719 1,443 45 32
Amount............ $ 9,425 $ 17,256 $ 564 $ 380
Class C Shares........... 798 1,095 66 61
Amount............ $ 10,592 $ 13,124 $ 830 $ 735
Class I Shares........... 8 -- -- --
Amount............ $ 106 $ -- $ -- $ --
Class Y Shares........... 823 47 5 2
Amount............ $ 10,950 $ 574 $ 60 $ 17
<Caption>
NET INCREASE (DECREASE)
SHARES REDEEMED OF SHARES
------------------------ ------------------------
2006 2005 2006 2005
----------- --------- ---------- ----------
CAPITAL APPRECIATION II
FUND:
Class A Shares........... (2,554) (176) 13,226 5,147
Amount............ $ (31,236) $ (1,941) $ 164,838 $ 55,083
Class B Shares........... (168) (14) 1,671 575
Amount............ $ (2,061) $ (155) $ 20,583 $ 6,190
Class C Shares........... (468) (26) 5,749 1,766
Amount............ $ (5,716) $ (281) $ 70,917 $ 19,141
Class I Shares........... -- -- 252 --
Amount............ $ (1) $ -- $ 3,203 $ --
Class Y Shares........... (21) -- (21) 30
Amount............ $ (259) $ -- $ (254) $ 300
CONSERVATIVE ALLOCATION
FUND:
Class A Shares........... (2,764) (1,765) 1,706 3,369
Amount............ $ (29,932) $ (18,790) $ 18,487 $ 35,327
Class B Shares........... (338) (179) 487 888
Amount............ $ (3,670) $ (1,887) $ 5,262 $ 9,320
Class C Shares........... (1,727) (1,764) 639 1,546
Amount............ $ (18,742) $ (18,469) $ 6,806 $ 16,401
Class I Shares........... -- -- 1 --
Amount............ $ -- $ -- $ 10 $ --
DISCIPLINED EQUITY FUND:
Class A Shares........... (4,408) (6,267) (3,449) (4,773)
Amount............ $ (54,869) $ (72,432) $ (42,915) $ (55,312)
Class B Shares........... (841) (1,069) (692) (829)
Amount............ $ (9,997) $ (11,782) $ (8,227) $ (9,136)
Class C Shares........... (737) (1,167) (667) (1,018)
Amount............ $ (8,780) $ (12,840) $ (7,938) $ (11,195)
Class Y Shares........... (70) (65) 5,758 4,947
Amount............ $ (884) $ (775) $ 73,479 $ 58,623
DIVIDEND AND GROWTH FUND:
Class A Shares........... (16,022) (15,420) 11,813 7,134
Amount............ $ (316,783) $(291,171) $ 230,196 $ 131,765
Class B Shares........... (4,214) (3,265) (970) 45
Amount............ $ (82,135) $ (60,699) $ (19,449) $ 386
Class C Shares........... (2,804) (3,265) 67 (901)
Amount............ $ (54,455) $ (60,506) $ 1,114 $ (16,919)
Class I Shares........... -- -- -- --
Amount............ $ -- $ -- $ 10 $ --
Class Y Shares........... (1,299) (413) 193 2,103
Amount............ $ (25,711) $ (7,961) $ 3,558 $ 39,561
EQUITY INCOME FUND:
Class A Shares........... (4,434) (3,468) 6,429 12,607
Amount............ $ (57,353) $ (41,777) $ 84,470 $ 150,915
Class B Shares........... (489) (296) 275 1,179
Amount............ $ (6,321) $ (3,561) $ 3,668 $ 14,075
Class C Shares........... (886) (641) (22) 515
Amount............ $ (11,291) $ (7,689) $ 131 $ 6,170
Class I Shares........... -- -- 8 --
Amount............ $ -- $ -- $ 106 $ --
Class Y Shares........... (354) (17) 474 32
Amount............ $ (4,966) $ (205) $ 6,044 $ 386
</Table>
324
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
FLOATING RATE FUND:
Class A Shares........... 176,071 19,092
Amount............ $1,783,858 $ 192,854
Class B Shares........... 3,969 595
Amount............ $ 40,179 $ 5,996
Class C Shares........... 77,439 9,381
Amount............ $ 783,956 $ 94,747
Class I Shares........... 6,294 --
Amount............ $ 63,716 $ --
Class Y Shares........... 3,878 1,056
Amount............ $ 39,234 $ 10,662
FOCUS FUND:
Class A Shares........... 275 314
Amount............ $ 2,936 $ 3,040
Class B Shares........... 58 64
Amount............ $ 602 $ 612
Class C Shares........... 62 104
Amount............ $ 640 $ 981
Class Y Shares........... 9 28
Amount............ $ 98 $ 283
GLOBAL COMMUNICATIONS
FUND:
Class A Shares........... 1,932 1,099
Amount............ $ 14,513 $ 7,313
Class B Shares........... 234 212
Amount............ $ 1,718 $ 1,361
Class C Shares........... 429 223
Amount............ $ 3,120 $ 1,450
Class Y Shares........... 61 62
Amount............ $ 460 $ 410
GLOBAL FINANCIAL SERVICES
FUND:
Class A Shares........... 469 143
Amount............ $ 6,307 $ 1,582
Class B Shares........... 58 25
Amount............ $ 737 $ 271
Class C Shares........... 103 66
Amount............ $ 1,335 $ 741
Class Y Shares........... 9 7
Amount............ $ 128 $ 74
GLOBAL HEALTH FUND:
Class A Shares........... 10,199 3,495
Amount............ $ 172,479 $ 55,087
Class B Shares........... 675 445
Amount............ $ 10,885 $ 6,670
Class C Shares........... 1,731 1,038
Amount............ $ 27,974 $ 15,731
Class I Shares........... 44 --
Amount............ $ 784 $ --
Class Y Shares........... 114 9,894
Amount............ $ 1,981 $ 153,166
GLOBAL LEADERS FUND:
Class A Shares........... 1,677 3,691
Amount............ $ 31,222 $ 62,349
Class B Shares........... 292 575
Amount............ $ 5,140 $ 9,270
Class C Shares........... 194 479
Amount............ $ 3,416 $ 7,767
Class Y Shares........... 3,682 1,488
Amount............ $ 70,888 $ 25,736
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
FLOATING RATE FUND:
Class A Shares........... 3,137 132
Amount............ $ 31,686 $ 1,335
Class B Shares........... 64 3
Amount............ $ 648 $ 32
Class C Shares........... 1,490 53
Amount............ $ 15,041 $ 530
Class I Shares........... 18 --
Amount............ $ 184 $ --
Class Y Shares........... 274 16
Amount............ $ 2,763 $ 158
FOCUS FUND:
Class A Shares........... 27 3
Amount............ $ 291 $ 29
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ 5 $ 3
GLOBAL COMMUNICATIONS
FUND:
Class A Shares........... 33 14
Amount............ $ 244 $ 89
Class B Shares........... 4 1
Amount............ $ 27 $ 5
Class C Shares........... 3 1
Amount............ $ 19 $ 4
Class Y Shares........... 2 --
Amount............ $ 12 $ 2
GLOBAL FINANCIAL SERVICES
FUND:
Class A Shares........... 11 14
Amount............ $ 134 $ 156
Class B Shares........... 1 1
Amount............ $ 12 $ 16
Class C Shares........... 1 1
Amount............ $ 8 $ 12
Class Y Shares........... 1 1
Amount............ $ 10 $ 10
GLOBAL HEALTH FUND:
Class A Shares........... 762 567
Amount............ $ 12,090 $ 8,478
Class B Shares........... 276 225
Amount............ $ 4,176 $ 3,252
Class C Shares........... 274 210
Amount............ $ 4,150 $ 3,033
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 597 4
Amount............ $ 9,803 $ 64
GLOBAL LEADERS FUND:
Class A Shares........... 291 --
Amount............ $ 4,961 $ --
Class B Shares........... 57 --
Amount............ $ 916 $ --
Class C Shares........... 50 --
Amount............ $ 807 $ --
Class Y Shares........... 81 --
Amount............ $ 1,465 $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
FLOATING RATE FUND:
Class A Shares........... (47,642) (2,428)
Amount............ $ (482,556) $ (24,613)
Class B Shares........... (420) (37)
Amount............ $ (4,254) $ (372)
Class C Shares........... (6,104) (239)
Amount............ $ (61,784) $ (2,420)
Class I Shares........... (200) --
Amount............ $ (2,026) $ --
Class Y Shares........... (114) (74)
Amount............ $ (1,148) $ (752)
FOCUS FUND:
Class A Shares........... (1,534) (2,792)
Amount............ $ (16,258) $ (27,191)
Class B Shares........... (348) (627)
Amount............ $ (3,590) $ (5,951)
Class C Shares........... (521) (1,100)
Amount............ $ (5,389) $ (10,427)
Class Y Shares........... (11) (71)
Amount............ $ (124) $ (705)
GLOBAL COMMUNICATIONS
FUND:
Class A Shares........... (2,088) (496)
Amount............ $ (14,704) $ (3,216)
Class B Shares........... (117) (84)
Amount............ $ (838) $ (522)
Class C Shares........... (150) (69)
Amount............ $ (1,076) $ (442)
Class Y Shares........... (30) (4)
Amount............ $ (235) $ (26)
GLOBAL FINANCIAL SERVICES
FUND:
Class A Shares........... (158) (191)
Amount............ $ (2,058) $ (2,107)
Class B Shares........... (56) (47)
Amount............ $ (722) $ (510)
Class C Shares........... (50) (64)
Amount............ $ (632) $ (705)
Class Y Shares........... (10) (3)
Amount............ $ (127) $ (28)
GLOBAL HEALTH FUND:
Class A Shares........... (2,925) (2,723)
Amount............ $ (49,348) $ (42,260)
Class B Shares........... (694) (718)
Amount............ $ (11,132) $ (10,730)
Class C Shares........... (807) (891)
Amount............ $ (12,939) $ (13,305)
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... (281) (31)
Amount............ $ (4,950) $ (503)
GLOBAL LEADERS FUND:
Class A Shares........... (5,356) (6,969)
Amount............ $ (98,431) $(117,555)
Class B Shares........... (1,203) (1,334)
Amount............ $ (21,020) $ (21,331)
Class C Shares........... (1,108) (1,531)
Amount............ $ (19,418) $ (24,598)
Class Y Shares........... (164) (131)
Amount............ $ (3,181) $ (2,334)
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
FLOATING RATE FUND:
Class A Shares........... 131,566 16,796
Amount............ $1,332,988 $ 169,576
Class B Shares........... 3,613 561
Amount............ $ 36,573 $ 5,656
Class C Shares........... 72,825 9,195
Amount............ $ 737,213 $ 92,857
Class I Shares........... 6,112 --
Amount............ $ 61,874 $ --
Class Y Shares........... 4,038 998
Amount............ $ 40,849 $ 10,068
FOCUS FUND:
Class A Shares........... (1,232) (2,475)
Amount............ $ (13,031) $ (24,122)
Class B Shares........... (290) (563)
Amount............ $ (2,988) $ (5,339)
Class C Shares........... (459) (996)
Amount............ $ (4,749) $ (9,446)
Class Y Shares........... (2) (43)
Amount............ $ (21) $ (419)
GLOBAL COMMUNICATIONS
FUND:
Class A Shares........... (123) 617
Amount............ $ 53 $ 4,186
Class B Shares........... 121 129
Amount............ $ 907 $ 844
Class C Shares........... 282 155
Amount............ $ 2,063 $ 1,012
Class Y Shares........... 33 58
Amount............ $ 237 $ 386
GLOBAL FINANCIAL SERVICES
FUND:
Class A Shares........... 322 (34)
Amount............ $ 4,383 $ (369)
Class B Shares........... 3 (21)
Amount............ $ 27 $ (223)
Class C Shares........... 54 3
Amount............ $ 711 $ 48
Class Y Shares........... -- 5
Amount............ $ 11 $ 56
GLOBAL HEALTH FUND:
Class A Shares........... 8,036 1,339
Amount............ $ 135,221 $ 21,305
Class B Shares........... 257 (48)
Amount............ $ 3,929 $ (808)
Class C Shares........... 1,198 357
Amount............ $ 19,185 $ 5,459
Class I Shares........... 44 --
Amount............ $ 784 $ --
Class Y Shares........... 430 9,867
Amount............ $ 6,834 $ 152,727
GLOBAL LEADERS FUND:
Class A Shares........... (3,388) (3,278)
Amount............ $ (62,248) $ (55,206)
Class B Shares........... (854) (759)
Amount............ $ (14,964) $ (12,061)
Class C Shares........... (864) (1,052)
Amount............ $ (15,195) $ (16,831)
Class Y Shares........... 3,599 1,357
Amount............ $ 69,172 $ 23,402
</Table>
325
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
GLOBAL TECHNOLOGY FUND:
Class A Shares........... 2,377 1,097
Amount............ $ 13,278 $ 5,180
Class B Shares........... 252 231
Amount............ $ 1,345 $ 1,044
Class C Shares........... 434 170
Amount............ $ 2,312 $ 775
Class Y Shares........... 73 189
Amount............ $ 406 $ 950
GROWTH ALLOCATION FUND:
Class A Shares........... 14,253 15,579
Amount............ $ 172,307 $ 170,874
Class B Shares........... 3,507 4,860
Amount............ $ 42,151 $ 53,037
Class C Shares........... 7,158 7,489
Amount............ $ 86,258 $ 81,830
Class I Shares........... 1 --
Amount............ $ 10 $ --
GROWTH FUND:
Class A Shares........... 14,712 20,706
Amount............ $ 266,545 $ 348,182
Class B Shares........... 378 1,206
Amount............ $ 6,108 $ 18,149
Class C Shares........... 1,376 2,865
Amount............ $ 22,210 $ 43,293
Class H Shares........... 58 74
Amount............ $ 941 $ 1,121
Class I Shares........... 106 --
Amount............ $ 1,972 $ --
Class L Shares........... 597 581
Amount............ $ 10,999 $ 9,889
Class M Shares........... 75 95
Amount............ $ 1,232 $ 1,425
Class N Shares........... 12 18
Amount............ $ 198 $ 278
Class Y Shares........... 5,741 2,286
Amount............ $ 108,099 $ 39,040
GROWTH OPPORTUNITIES
FUND:
Class A Shares........... 8,579 6,721
Amount............ $ 245,120 $ 176,120
Class B Shares........... 628 364
Amount............ $ 15,570 $ 8,252
Class C Shares........... 1,341 334
Amount............ $ 33,215 $ 7,639
Class H Shares........... 79 108
Amount............ $ 1,979 $ 2,437
Class I Shares........... 3 --
Amount............ $ 73 $ --
Class L Shares........... 585 652
Amount............ $ 16,889 $ 16,784
Class M Shares........... 59 73
Amount............ $ 1,465 $ 1,651
Class N Shares........... 12 13
Amount............ $ 303 $ 293
Class Y Shares........... 1,470 853
Amount............ $ 43,059 $ 22,960
Class Z Shares........... 20 17
Amount............ $ 614 $ 453
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
GLOBAL TECHNOLOGY FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
GROWTH ALLOCATION FUND:
Class A Shares........... 218 19
Amount............ $ 2,574 $ 215
Class B Shares........... 33 3
Amount............ $ 391 $ 32
Class C Shares........... 46 4
Amount............ $ 534 $ 44
Class I Shares........... -- --
Amount............ $ -- $ --
GROWTH FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class H Shares........... -- --
Amount............ $ -- $ --
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... -- --
Amount............ $ -- $ --
Class M Shares........... -- --
Amount............ $ -- $ --
Class N Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
GROWTH OPPORTUNITIES
FUND:
Class A Shares........... 268 --
Amount............ $ 7,160 $ --
Class B Shares........... 69 --
Amount............ $ 1,609 $ --
Class C Shares........... 66 --
Amount............ $ 1,526 $ --
Class H Shares........... 130 --
Amount............ $ 3,053 $ --
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... 1,435 --
Amount............ $ 38,851 $ --
Class M Shares........... 78 --
Amount............ $ 1,817 $ --
Class N Shares........... 19 --
Amount............ $ 435 $ --
Class Y Shares........... 68 --
Amount............ $ 1,841 $ --
Class Z Shares........... 80 --
Amount............ $ 2,251 $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
GLOBAL TECHNOLOGY FUND:
Class A Shares........... (2,043) (2,639)
Amount............ $ (11,154) $ (12,398)
Class B Shares........... (501) (662)
Amount............ $ (2,596) $ (2,969)
Class C Shares........... (545) (1,171)
Amount............ $ (2,821) $ (5,258)
Class Y Shares........... (62) (268)
Amount............ $ (350) $ (1,319)
GROWTH ALLOCATION FUND:
Class A Shares........... (3,471) (1,553)
Amount............ $ (41,894) $ (17,312)
Class B Shares........... (838) (359)
Amount............ $ (10,106) $ (3,962)
Class C Shares........... (1,736) (576)
Amount............ $ (20,878) $ (6,397)
Class I Shares........... -- --
Amount............ $ -- $ --
GROWTH FUND:
Class A Shares........... (13,049) (7,771)
Amount............ $ (236,091) $(132,108)
Class B Shares........... (674) (437)
Amount............ $ (10,763) $ (6,602)
Class C Shares........... (1,485) (791)
Amount............ $ (23,799) $ (11,969)
Class H Shares........... (409) (408)
Amount............ $ (6,608) $ (6,197)
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... (2,787) (2,689)
Amount............ $ (51,150) $ (46,057)
Class M Shares........... (337) (338)
Amount............ $ (5,459) $ (5,116)
Class N Shares........... (61) (35)
Amount............ $ (997) $ (537)
Class Y Shares........... (1,830) (10)
Amount............ $ (33,915) $ (165)
GROWTH OPPORTUNITIES
FUND:
Class A Shares........... (2,516) (1,049)
Amount............ $ (71,765) $ (27,544)
Class B Shares........... (182) (100)
Amount............ $ (4,473) $ (2,265)
Class C Shares........... (301) (136)
Amount............ $ (7,419) $ (3,068)
Class H Shares........... (415) (467)
Amount............ $ (10,317) $ (10,587)
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... (2,588) (2,748)
Amount............ $ (74,520) $ (71,235)
Class M Shares........... (215) (241)
Amount............ $ (5,353) $ (5,462)
Class N Shares........... (38) (35)
Amount............ $ (946) $ (813)
Class Y Shares........... (87) (52)
Amount............ $ (2,512) $ (1,482)
Class Z Shares........... (113) (203)
Amount............ $ (3,413) $ (5,358)
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
GLOBAL TECHNOLOGY FUND:
Class A Shares........... 334 (1,542)
Amount............ $ 2,124 $ (7,218)
Class B Shares........... (249) (431)
Amount............ $ (1,251) $ (1,925)
Class C Shares........... (111) (1,001)
Amount............ $ (509) $ (4,483)
Class Y Shares........... 11 (79)
Amount............ $ 56 $ (369)
GROWTH ALLOCATION FUND:
Class A Shares........... 11,000 14,045
Amount............ $ 132,987 $ 153,777
Class B Shares........... 2,702 4,504
Amount............ $ 32,436 $ 49,107
Class C Shares........... 5,468 6,917
Amount............ $ 65,914 $ 75,477
Class I Shares........... 1 --
Amount............ $ 10 $ --
GROWTH FUND:
Class A Shares........... 1,663 12,935
Amount............ $ 30,454 $ 216,074
Class B Shares........... (296) 769
Amount............ $ (4,655) $ 11,547
Class C Shares........... (109) 2,074
Amount............ $ (1,589) $ 31,324
Class H Shares........... (351) (334)
Amount............ $ (5,667) $ (5,076)
Class I Shares........... 106 --
Amount............ $ 1,972 $ --
Class L Shares........... (2,190) (2,108)
Amount............ $ (40,151) $ (36,168)
Class M Shares........... (262) (243)
Amount............ $ (4,227) $ (3,691)
Class N Shares........... (49) (17)
Amount............ $ (799) $ (259)
Class Y Shares........... 3,911 2,276
Amount............ $ 74,184 $ 38,875
GROWTH OPPORTUNITIES
FUND:
Class A Shares........... 6,331 5,672
Amount............ $ 180,515 $ 148,576
Class B Shares........... 515 264
Amount............ $ 12,706 $ 5,987
Class C Shares........... 1,106 198
Amount............ $ 27,322 $ 4,571
Class H Shares........... (206) (359)
Amount............ $ (5,285) $ (8,150)
Class I Shares........... 3 --
Amount............ $ 73 $ --
Class L Shares........... (568) (2,096)
Amount............ $ (18,780) $ (54,451)
Class M Shares........... (78) (168)
Amount............ $ (2,071) $ (3,811)
Class N Shares........... (7) (22)
Amount............ $ (208) $ (520)
Class Y Shares........... 1,451 801
Amount............ $ 42,388 $ 21,478
Class Z Shares........... (13) (186)
Amount............ $ (548) $ (4,905)
</Table>
326
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
HIGH YIELD FUND:
Class A Shares........... 8,977 8,904
Amount............ $ 70,114 $ 71,605
Class B Shares........... 431 758
Amount............ $ 3,366 $ 6,099
Class C Shares........... 656 1,539
Amount............ $ 5,119 $ 12,358
Class Y Shares........... 660 1,455
Amount............ $ 5,159 $ 11,590
INCOME ALLOCATION FUND:
Class A Shares........... 1,804 1,515
Amount............ $ 17,725 $ 15,271
Class B Shares........... 240 367
Amount............ $ 2,363 $ 3,708
Class C Shares........... 465 885
Amount............ $ 4,577 $ 8,908
Class I Shares........... 1 --
Amount............ $ 10 $ --
INCOME FUND:
Class A Shares........... 1,931 890
Amount............ $ 19,739 $ 9,362
Class B Shares........... 303 224
Amount............ $ 3,092 $ 2,353
Class C Shares........... 459 168
Amount............ $ 4,707 $ 1,783
Class Y Shares........... 4,159 1,595
Amount............ $ 42,424 $ 16,776
INFLATION PLUS FUND:
Class A Shares........... 6,599 18,801
Amount............ $ 69,233 $ 204,666
Class B Shares........... 671 2,691
Amount............ $ 7,065 $ 29,325
Class C Shares........... 3,716 15,748
Amount............ $ 39,087 $ 171,480
Class I Shares........... 2 --
Amount............ $ 18 $ --
Class Y Shares........... 4,633 6,915
Amount............ $ 48,407 $ 75,336
INTERNATIONAL CAPITAL
APPRECIATION FUND:
Class A Shares........... 6,648 8,923
Amount............ $ 93,188 $ 107,673
Class B Shares........... 764 1,416
Amount............ $ 10,391 $ 16,612
Class C Shares........... 1,086 1,905
Amount............ $ 14,849 $ 22,367
Class I Shares........... 1 --
Amount............ $ 10 $ --
Class Y Shares........... 987 3,973
Amount............ $ 13,640 $ 48,003
INTERNATIONAL
OPPORTUNITIES FUND:
Class A Shares........... 4,125 1,937
Amount............ $ 61,337 $ 24,270
Class B Shares........... 517 310
Amount............ $ 7,280 $ 3,645
Class C Shares........... 322 254
Amount............ $ 4,529 $ 2,963
Class Y Shares........... 2,439 73
Amount............ $ 35,931 $ 932
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
HIGH YIELD FUND:
Class A Shares........... 1,417 1,444
Amount............ $ 11,061 $11,564
Class B Shares........... 235 270
Amount............ $ 1,833 $ 2,160
Class C Shares........... 222 274
Amount............ $ 1,733 $ 2,194
Class Y Shares........... 230 171
Amount............ $ 1,794 $ 1,366
INCOME ALLOCATION FUND:
Class A Shares........... 93 42
Amount............ $ 912 $ 424
Class B Shares........... 15 8
Amount............ $ 141 $ 78
Class C Shares........... 28 16
Amount............ $ 270 $ 157
Class I Shares........... -- --
Amount............ $ -- $ --
INCOME FUND:
Class A Shares........... 140 125
Amount............ $ 1,426 $ 1,312
Class B Shares........... 19 17
Amount............ $ 193 $ 174
Class C Shares........... 16 16
Amount............ $ 158 $ 167
Class Y Shares........... 158 47
Amount............ $ 1,607 $ 494
INFLATION PLUS FUND:
Class A Shares........... 1,182 1,267
Amount............ $ 12,325 $13,713
Class B Shares........... 292 320
Amount............ $ 3,041 $ 3,472
Class C Shares........... 840 985
Amount............ $ 8,763 $10,664
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 544 278
Amount............ $ 5,664 $ 3,005
INTERNATIONAL CAPITAL
APPRECIATION FUND:
Class A Shares........... 149 --
Amount............ $ 1,845 $ --
Class B Shares........... 21 --
Amount............ $ 246 $ --
Class C Shares........... 26 --
Amount............ $ 307 $ --
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 117 --
Amount............ $ 1,490 $ --
INTERNATIONAL
OPPORTUNITIES FUND:
Class A Shares........... 27 --
Amount............ $ 371 $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 9 --
Amount............ $ 131 $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
HIGH YIELD FUND:
Class A Shares........... (10,688) (16,278)
Amount............ $ (83,544) $(130,949)
Class B Shares........... (2,047) (2,782)
Amount............ $ (15,998) $ (22,326)
Class C Shares........... (2,402) (4,009)
Amount............ $ (18,759) $ (32,194)
Class Y Shares........... (1,164) (283)
Amount............ $ (9,111) $ (2,241)
INCOME ALLOCATION FUND:
Class A Shares........... (1,297) (629)
Amount............ $ (12,731) $ (6,340)
Class B Shares........... (180) (59)
Amount............ $ (1,774) $ (594)
Class C Shares........... (459) (602)
Amount............ $ (4,516) $ (6,033)
Class I Shares........... -- --
Amount............ $ -- $ --
INCOME FUND:
Class A Shares........... (1,299) (948)
Amount............ $ (13,210) $ (10,000)
Class B Shares........... (206) (174)
Amount............ $ (2,105) $ (1,833)
Class C Shares........... (193) (201)
Amount............ $ (1,982) $ (2,117)
Class Y Shares........... (43) (38)
Amount............ $ (437) $ (397)
INFLATION PLUS FUND:
Class A Shares........... (19,610) (9,846)
Amount............ $ (205,003) $(107,151)
Class B Shares........... (3,298) (1,685)
Amount............ $ (34,349) $ (18,341)
Class C Shares........... (15,919) (10,907)
Amount............ $ (166,129) $(118,510)
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... (687) (312)
Amount............ $ (7,186) $ (3,379)
INTERNATIONAL CAPITAL
APPRECIATION FUND:
Class A Shares........... (3,344) (2,419)
Amount............ $ (45,644) $ (29,044)
Class B Shares........... (374) (314)
Amount............ $ (4,998) $ (3,670)
Class C Shares........... (611) (540)
Amount............ $ (8,171) $ (6,308)
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... (2,492) (375)
Amount............ $ (35,103) $ (4,540)
INTERNATIONAL
OPPORTUNITIES FUND:
Class A Shares........... (2,091) (1,923)
Amount............ $ (31,257) $ (24,092)
Class B Shares........... (532) (562)
Amount............ $ (7,467) $ (6,639)
Class C Shares........... (315) (367)
Amount............ $ (4,380) $ (4,232)
Class Y Shares........... (223) (31)
Amount............ $ (3,434) $ (395)
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
HIGH YIELD FUND:
Class A Shares........... (294) (5,930)
Amount............ $ (2,369) $ (47,780)
Class B Shares........... (1,381) (1,754)
Amount............ $ (10,799) $ (14,067)
Class C Shares........... (1,524) (2,196)
Amount............ $ (11,907) $ (17,642)
Class Y Shares........... (274) 1,343
Amount............ $ (2,158) $ 10,715
INCOME ALLOCATION FUND:
Class A Shares........... 600 928
Amount............ $ 5,906 $ 9,355
Class B Shares........... 75 316
Amount............ $ 730 $ 3,192
Class C Shares........... 34 299
Amount............ $ 331 $ 3,032
Class I Shares........... 1 --
Amount............ $ 10 $ --
INCOME FUND:
Class A Shares........... 772 67
Amount............ $ 7,955 $ 674
Class B Shares........... 116 67
Amount............ $ 1,180 $ 694
Class C Shares........... 282 (17)
Amount............ $ 2,883 $ (167)
Class Y Shares........... 4,274 1,604
Amount............ $ 43,594 $ 16,873
INFLATION PLUS FUND:
Class A Shares........... (11,829) 10,222
Amount............ $ (123,445) $ 111,228
Class B Shares........... (2,335) 1,326
Amount............ $ (24,243) $ 14,456
Class C Shares........... (11,363) 5,826
Amount............ $ (118,279) $ 63,634
Class I Shares........... 2 --
Amount............ $ 18 $ --
Class Y Shares........... 4,490 6,881
Amount............ $ 46,885 $ 74,962
INTERNATIONAL CAPITAL
APPRECIATION FUND:
Class A Shares........... 3,453 6,504
Amount............ $ 49,389 $ 78,629
Class B Shares........... 411 1,102
Amount............ $ 5,639 $ 12,942
Class C Shares........... 501 1,365
Amount............ $ 6,985 $ 16,059
Class I Shares........... 1 --
Amount............ $ 10 $ --
Class Y Shares........... (1,388) 3,598
Amount............ $ (19,973) $ 43,463
INTERNATIONAL
OPPORTUNITIES FUND:
Class A Shares........... 2,061 14
Amount............ $ 30,451 $ 178
Class B Shares........... (15) (252)
Amount............ $ (187) $ (2,994)
Class C Shares........... 7 (113)
Amount............ $ 149 $ (1,269)
Class Y Shares........... 2,225 42
Amount............ $ 32,628 $ 537
</Table>
327
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
INTERNATIONAL SMALL
COMPANY FUND:
Class A Shares........... 2,850 1,228
Amount............ $ 42,844 $ 16,692
Class B Shares........... 425 245
Amount............ $ 6,207 $ 3,258
Class C Shares........... 492 320
Amount............ $ 7,108 $ 4,216
Class Y Shares........... 2,826 1,460
Amount............ $ 41,469 $ 19,654
MIDCAP FUND:
Class A Shares........... 7,134 5,185
Amount............ $ 176,389 $ 128,890
Class B Shares........... 203 165
Amount............ $ 4,539 $ 3,808
Class C Shares........... 265 163
Amount............ $ 5,831 $ 3,872
Class Y Shares........... 2,186 904
Amount............ $ 58,033 $ 23,183
MIDCAP GROWTH FUND:
Class A Shares........... 972 --
Amount............ $ 9,727 $ --
Class B Shares........... 28 --
Amount............ $ 281 $ --
Class C Shares........... 34 --
Amount............ $ 341 $ --
Class Y Shares........... 10 --
Amount............ $ 100 $ --
MIDCAP VALUE FUND:
Class A Shares........... 352 365
Amount............ $ 4,807 $ 4,754
Class B Shares........... 69 91
Amount............ $ 892 $ 1,159
Class C Shares........... 56 61
Amount............ $ 706 $ 766
Class Y Shares........... 506 2,956
Amount............ $ 7,088 $ 38,771
MONEY MARKET FUND:
Class A Shares........... 253,489 221,158
Amount............ $ 253,489 $ 221,158
Class B Shares........... 20,522 18,453
Amount............ $ 20,522 $ 18,453
Class C Shares........... 23,248 26,919
Amount............ $ 23,248 $ 26,919
Class Y Shares........... 5,073 9,406
Amount............ $ 5,073 $ 9,406
RETIREMENT INCOME FUND:
Class A Shares........... 42 5
Amount............ $ 400 $ 48
Class B Shares........... 18 1
Amount............ $ 168 $ 10
Class C Shares........... 17 1
Amount............ $ 151 $ 10
Class Y Shares........... 11 1
Amount............ $ 100 $ 10
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
INTERNATIONAL SMALL
COMPANY FUND:
Class A Shares........... 331 200
Amount............ $ 4,265 $ 2,473
Class B Shares........... 57 32
Amount............ $ 717 $ 389
Class C Shares........... 119 91
Amount............ $ 1,465 $ 1,092
Class Y Shares........... 648 381
Amount............ $ 8,435 $ 4,758
MIDCAP FUND:
Class A Shares........... 11,935 1,383
Amount............ $271,649 $31,412
Class B Shares........... 3,680 425
Amount............ $ 77,839 $ 9,150
Class C Shares........... 3,850 459
Amount............ $ 81,756 $ 9,908
Class Y Shares........... 945 89
Amount............ $ 22,565 $ 2,097
MIDCAP GROWTH FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
MIDCAP VALUE FUND:
Class A Shares........... 2,207 1,692
Amount............ $ 27,216 $20,631
Class B Shares........... 486 368
Amount............ $ 5,770 $ 4,365
Class C Shares........... 490 405
Amount............ $ 5,822 $ 4,809
Class Y Shares........... 307 18
Amount............ $ 3,881 $ 221
MONEY MARKET FUND:
Class A Shares........... 7,018 3,418
Amount............ $ 7,018 $ 3,418
Class B Shares........... 825 380
Amount............ $ 825 $ 380
Class C Shares........... 506 218
Amount............ $ 506 $ 218
Class Y Shares........... 680 324
Amount............ $ 680 $ 324
RETIREMENT INCOME FUND:
Class A Shares........... 1 --
Amount............ $ 10 $ --
Class B Shares........... -- --
Amount............ $ 2 $ --
Class C Shares........... -- --
Amount............ $ 2 $ --
Class Y Shares........... -- --
Amount............ $ 3 $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
INTERNATIONAL SMALL
COMPANY FUND:
Class A Shares........... (1,304) (763)
Amount............ $ (19,359) $ (10,416)
Class B Shares........... (160) (120)
Amount............ $ (2,317) $ (1,585)
Class C Shares........... (338) (263)
Amount............ $ (4,665) $ (3,457)
Class Y Shares........... (2,746) (406)
Amount............ $ (42,341) $ (5,762)
MIDCAP FUND:
Class A Shares........... (10,197) (11,173)
Amount............ $ (251,372) $(273,711)
Class B Shares........... (3,372) (2,284)
Amount............ $ (76,825) $ (53,587)
Class C Shares........... (2,944) (3,030)
Amount............ $ (67,347) $ (70,943)
Class Y Shares........... (1,310) (375)
Amount............ $ (34,176) $ (9,751)
MIDCAP GROWTH FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
MIDCAP VALUE FUND:
Class A Shares........... (2,750) (2,660)
Amount............ $ (37,396) $ (34,854)
Class B Shares........... (682) (651)
Amount............ $ (8,913) $ (8,272)
Class C Shares........... (765) (1,037)
Amount............ $ (10,026) $ (13,160)
Class Y Shares........... (1,681) (222)
Amount............ $ (23,678) $ (3,096)
MONEY MARKET FUND:
Class A Shares........... (235,223) (247,710)
Amount............ $ (235,223) $(247,710)
Class B Shares........... (24,068) (33,953)
Amount............ $ (24,068) $ (33,953)
Class C Shares........... (25,547) (34,973)
Amount............ $ (25,547) $ (34,973)
Class Y Shares........... (8,239) (3,314)
Amount............ $ (8,239) $ (3,314)
RETIREMENT INCOME FUND:
Class A Shares........... (4) --
Amount............ $ (40) $ --
Class B Shares........... (1) --
Amount............ $ (9) $ --
Class C Shares........... (1) --
Amount............ $ (5) $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
INTERNATIONAL SMALL
COMPANY FUND:
Class A Shares........... 1,877 665
Amount............ $ 27,750 $ 8,749
Class B Shares........... 322 157
Amount............ $ 4,607 $ 2,062
Class C Shares........... 273 148
Amount............ $ 3,908 $ 1,851
Class Y Shares........... 728 1,435
Amount............ $ 7,563 $ 18,650
MIDCAP FUND:
Class A Shares........... 8,872 (4,605)
Amount............ $ 196,666 $ (113,409)
Class B Shares........... 511 (1,694)
Amount............ $ 5,553 $ (40,629)
Class C Shares........... 1,171 (2,408)
Amount............ $ 20,240 $ (57,163)
Class Y Shares........... 1,821 618
Amount............ $ 46,422 $ 15,529
MIDCAP GROWTH FUND:
Class A Shares........... 972 --
Amount............ $ 9,727 $ --
Class B Shares........... 28 --
Amount............ $ 281 $ --
Class C Shares........... 34 --
Amount............ $ 341 $ --
Class Y Shares........... 10 --
Amount............ $ 100 $ --
MIDCAP VALUE FUND:
Class A Shares........... (191) (603)
Amount............ $ (5,373) $ (9,469)
Class B Shares........... (127) (192)
Amount............ $ (2,251) $ (2,748)
Class C Shares........... (219) (571)
Amount............ $ (3,498) $ (7,585)
Class Y Shares........... (868) 2,752
Amount............ $ (12,709) $ 35,896
MONEY MARKET FUND:
Class A Shares........... 25,284 (23,134)
Amount............ $ 25,284 $ (23,134)
Class B Shares........... (2,721) (15,120)
Amount............ $ (2,721) $ (15,120)
Class C Shares........... (1,793) (7,836)
Amount............ $ (1,793) $ (7,836)
Class Y Shares........... (2,486) 6,416
Amount............ $ (2,486) $ 6,416
RETIREMENT INCOME FUND:
Class A Shares........... 39 5
Amount............ $ 370 $ 48
Class B Shares........... 17 1
Amount............ $ 161 $ 10
Class C Shares........... 16 1
Amount............ $ 148 $ 10
Class Y Shares........... 11 1
Amount............ $ 103 $ 10
</Table>
328
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
SELECT MIDCAP GROWTH
FUND:
Class A Shares........... 951 1,559
Amount............ $ 10,472 $ 15,493
Class B Shares........... 176 245
Amount............ $ 1,938 $ 2,425
Class C Shares........... 246 183
Amount............ $ 2,724 $ 1,808
Class Y Shares........... 2,650 21
Amount............ $ 29,596 $ 209
SELECT MIDCAP VALUE FUND:
Class A Shares........... 2,104 2,101
Amount............ $ 24,175 $ 21,632
Class B Shares........... 203 163
Amount............ $ 2,312 $ 1,726
Class C Shares........... 398 278
Amount............ $ 4,556 $ 2,976
Class Y Shares........... 1,564 50
Amount............ $ 18,010 $ 500
SELECT SMALLCAP GROWTH
FUND:
Class A Shares........... 187 545
Amount............ $ 1,982 $ 5,445
Class B Shares........... 37 21
Amount............ $ 395 $ 207
Class C Shares........... 57 21
Amount............ $ 599 $ 213
Class Y Shares........... 429 20
Amount............ $ 4,201 $ 200
SELECT SMALLCAP VALUE
FUND:
Class A Shares........... 1,449 --
Amount............ $ 14,491 $ --
Class B Shares........... 28 --
Amount............ $ 283 $ --
Class C Shares........... 26 --
Amount............ $ 256 $ --
Class Y Shares........... 140 --
Amount............ $ 1,496 $ --
SHORT DURATION FUND:
Class A Shares........... 1,123 1,286
Amount............ $ 11,072 $ 12,820
Class B Shares........... 164 177
Amount............ $ 1,617 $ 1,762
Class C Shares........... 330 641
Amount............ $ 3,262 $ 6,407
Class Y Shares........... 4,024 5,565
Amount............ $ 39,655 $ 55,422
SMALL COMPANY FUND:
Class A Shares........... 1,637 397
Amount............ $ 34,295 $ 6,768
Class B Shares........... 108 54
Amount............ $ 2,089 $ 830
Class C Shares........... 289 32
Amount............ $ 5,563 $ 505
Class I Shares........... 3 --
Amount............ $ 69 $ --
Class Y Shares........... 2,771 1,300
Amount............ $ 61,859 $ 21,676
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
SELECT MIDCAP GROWTH
FUND:
Class A Shares........... 14 --
Amount............ $ 148 $ --
Class B Shares........... 2 --
Amount............ $ 22 $ --
Class C Shares........... 2 --
Amount............ $ 17 $ --
Class Y Shares........... -- --
Amount............ $ 2 $ --
SELECT MIDCAP VALUE FUND:
Class A Shares........... 48 --
Amount............ $ 520 $ --
Class B Shares........... 4 --
Amount............ $ 39 $ --
Class C Shares........... 7 --
Amount............ $ 70 $ --
Class Y Shares........... 1 --
Amount............ $ 15 $ --
SELECT SMALLCAP GROWTH
FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
SELECT SMALLCAP VALUE
FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
SHORT DURATION FUND:
Class A Shares........... 79 93
Amount............ $ 775 $ 929
Class B Shares........... 18 21
Amount............ $ 180 $ 207
Class C Shares........... 40 55
Amount............ $ 392 $ 543
Class Y Shares........... 323 226
Amount............ $ 3,180 $ 2,244
SMALL COMPANY FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
SELECT MIDCAP GROWTH
FUND:
Class A Shares........... (356) (81)
Amount............ $ (3,864) $ (821)
Class B Shares........... (77) (12)
Amount............ $ (831) $ (117)
Class C Shares........... (74) (10)
Amount............ $ (766) $ (100)
Class Y Shares........... (130) --
Amount............ $ (1,447) $ (3)
SELECT MIDCAP VALUE FUND:
Class A Shares........... (367) (23)
Amount............ $ (4,268) $ (253)
Class B Shares........... (29) (4)
Amount............ $ (335) $ (38)
Class C Shares........... (69) (10)
Amount............ $ (798) $ (104)
Class Y Shares........... -- --
Amount............ $ (29) $ --
SELECT SMALLCAP GROWTH
FUND:
Class A Shares........... (40) --
Amount............ $ (405) $ --
Class B Shares........... (8) --
Amount............ $ (78) $ --
Class C Shares........... (14) --
Amount............ $ (144) $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
SELECT SMALLCAP VALUE
FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
SHORT DURATION FUND:
Class A Shares........... (1,466) (2,297)
Amount............ $ (14,451) $ (22,878)
Class B Shares........... (394) (520)
Amount............ $ (3,886) $ (5,181)
Class C Shares........... (1,249) (1,830)
Amount............ $ (12,309) $ (18,239)
Class Y Shares........... (2,384) (533)
Amount............ $ (23,454) $ (5,283)
SMALL COMPANY FUND:
Class A Shares........... (1,269) (2,105)
Amount............ $ (26,637) $ (35,226)
Class B Shares........... (797) (883)
Amount............ $ (15,616) $ (13,912)
Class C Shares........... (489) (921)
Amount............ $ (9,564) $ (14,243)
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... (223) (61)
Amount............ $ (4,791) $ (1,057)
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
SELECT MIDCAP GROWTH
FUND:
Class A Shares........... 609 1,478
Amount............ $ 6,756 $ 14,672
Class B Shares........... 101 233
Amount............ $ 1,129 $ 2,308
Class C Shares........... 174 173
Amount............ $ 1,975 $ 1,708
Class Y Shares........... 2,520 21
Amount............ $ 28,151 $ 206
SELECT MIDCAP VALUE FUND:
Class A Shares........... 1,785 2,078
Amount............ $ 20,427 $ 21,379
Class B Shares........... 178 159
Amount............ $ 2,016 $ 1,688
Class C Shares........... 336 268
Amount............ $ 3,828 $ 2,872
Class Y Shares........... 1,565 50
Amount............ $ 17,996 $ 500
SELECT SMALLCAP GROWTH
FUND:
Class A Shares........... 147 545
Amount............ $ 1,577 $ 5,445
Class B Shares........... 29 21
Amount............ $ 317 $ 207
Class C Shares........... 43 21
Amount............ $ 455 $ 213
Class Y Shares........... 429 20
Amount............ $ 4,201 $ 200
SELECT SMALLCAP VALUE
FUND:
Class A Shares........... 1,449 --
Amount............ $ 14,491 $ --
Class B Shares........... 28 --
Amount............ $ 283 $ --
Class C Shares........... 26 --
Amount............ $ 256 $ --
Class Y Shares........... 140 --
Amount............ $ 1,496 $ --
SHORT DURATION FUND:
Class A Shares........... (264) (918)
Amount............ $ (2,604) $ (9,129)
Class B Shares........... (212) (322)
Amount............ $ (2,089) $ (3,212)
Class C Shares........... (879) (1,134)
Amount............ $ (8,655) $ (11,289)
Class Y Shares........... 1,963 5,258
Amount............ $ 19,381 $ 52,383
SMALL COMPANY FUND:
Class A Shares........... 368 (1,708)
Amount............ $ 7,658 $ (28,458)
Class B Shares........... (689) (829)
Amount............ $ (13,527) $ (13,082)
Class C Shares........... (200) (889)
Amount............ $ (4,001) $ (13,738)
Class I Shares........... 3 --
Amount............ $ 69 $ --
Class Y Shares........... 2,548 1,239
Amount............ $ 57,068 $ 20,619
</Table>
329
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
SMALLCAP GROWTH FUND:
Class A Shares........... 5,972 1,208
Amount............ $ 182,337 $ 33,404
Class B Shares........... 195 201
Amount............ $ 5,420 $ 4,983
Class C Shares........... 464 297
Amount............ $ 12,901 $ 7,553
Class H Shares........... 31 42
Amount............ $ 869 $ 1,049
Class I Shares........... 8 --
Amount............ $ 235 $ --
Class L Shares........... 216 295
Amount............ $ 6,572 $ 8,024
Class M Shares........... 34 42
Amount............ $ 959 $ 1,027
Class N Shares........... 13 16
Amount............ $ 334 $ 406
Class Y Shares........... 1,728 1,738
Amount............ $ 54,996 $ 47,949
STOCK FUND:
Class A Shares........... 3,612 3,320
Amount............ $ 71,142 $ 58,908
Class B Shares........... 402 623
Amount............ $ 7,405 $ 10,341
Class C Shares........... 294 489
Amount............ $ 5,460 $ 8,221
Class Y Shares........... 823 1,226
Amount............ $ 16,857 $ 22,574
TARGET RETIREMENT 2010
FUND:
Class A Shares........... 165 1
Amount............ $ 1,556 $ 12
Class B Shares........... 22 1
Amount............ $ 211 $ 10
Class C Shares........... 48 1
Amount............ $ 460 $ 10
Class Y Shares........... 13 1
Amount............ $ 120 $ 10
TARGET RETIREMENT 2020
FUND:
Class A Shares........... 202 15
Amount............ $ 2,052 $ 144
Class B Shares........... 27 1
Amount............ $ 271 $ 10
Class C Shares........... 34 1
Amount............ $ 339 $ 10
Class Y Shares........... -- 1
Amount............ $ -- $ 10
TARGET RETIREMENT 2030
FUND:
Class A Shares........... 201 1
Amount............ $ 1,815 $ 10
Class B Shares........... 33 1
Amount............ $ 294 $ 10
Class C Shares........... 8 1
Amount............ $ 68 $ 10
Class Y Shares........... 2 1
Amount............ $ 20 $ 10
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
SMALLCAP GROWTH FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class H Shares........... -- --
Amount............ $ -- $ --
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... -- --
Amount............ $ -- $ --
Class M Shares........... -- --
Amount............ $ -- $ --
Class N Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
STOCK FUND:
Class A Shares........... 77 310
Amount............ $ 1,495 $ 5,503
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 38 54
Amount............ $ 772 $ 1,005
TARGET RETIREMENT 2010
FUND:
Class A Shares........... 2 --
Amount............ $ 16 $ --
Class B Shares........... -- --
Amount............ $ 3 $ --
Class C Shares........... -- --
Amount............ $ 2 $ --
Class Y Shares........... -- --
Amount............ $ 2 $ --
TARGET RETIREMENT 2020
FUND:
Class A Shares........... 2 --
Amount............ $ 15 $ --
Class B Shares........... -- --
Amount............ $ 1 $ --
Class C Shares........... -- --
Amount............ $ 1 $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
TARGET RETIREMENT 2030
FUND:
Class A Shares........... -- --
Amount............ $ 2 $ --
Class B Shares........... -- --
Amount............ $ 2 $ --
Class C Shares........... -- --
Amount............ $ 1 $ --
Class Y Shares........... -- --
Amount............ $ 1 $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
SMALLCAP GROWTH FUND:
Class A Shares........... (1,014) (609)
Amount............ $ (30,462) $ (16,505)
Class B Shares........... (151) (99)
Amount............ $ (4,076) $ (2,439)
Class C Shares........... (220) (137)
Amount............ $ (5,949) $ (3,371)
Class H Shares........... (143) (220)
Amount............ $ (3,910) $ (5,451)
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... (650) (740)
Amount............ $ (19,895) $ (20,261)
Class M Shares........... (124) (159)
Amount............ $ (3,432) $ (3,946)
Class N Shares........... (38) (56)
Amount............ $ (1,038) $ (1,389)
Class Y Shares........... (297) (25)
Amount............ $ (9,108) $ (725)
STOCK FUND:
Class A Shares........... (10,693) (20,910)
Amount............ $ (210,028) $(371,998)
Class B Shares........... (5,142) (6,244)
Amount............ $ (94,598) $(104,388)
Class C Shares........... (2,633) (6,146)
Amount............ $ (48,766) $(102,989)
Class Y Shares........... (467) (300)
Amount............ $ (9,646) $ (5,539)
TARGET RETIREMENT 2010
FUND:
Class A Shares........... -- --
Amount............ $ -- $ --
Class B Shares........... -- --
Amount............ $ (1) $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
TARGET RETIREMENT 2020
FUND:
Class A Shares........... (15) --
Amount............ $ (148) $ --
Class B Shares........... -- --
Amount............ $ (2) $ --
Class C Shares........... (3) --
Amount............ $ (27) $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
TARGET RETIREMENT 2030
FUND:
Class A Shares........... (4) --
Amount............ $ (33) $ --
Class B Shares........... (1) --
Amount............ $ (13) $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... -- --
Amount............ $ -- $ --
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
SMALLCAP GROWTH FUND:
Class A Shares........... 4,958 599
Amount............ $ 151,875 $ 16,899
Class B Shares........... 44 102
Amount............ $ 1,344 $ 2,544
Class C Shares........... 244 160
Amount............ $ 6,952 $ 4,182
Class H Shares........... (112) (178)
Amount............ $ (3,041) $ (4,402)
Class I Shares........... 8 --
Amount............ $ 235 $ --
Class L Shares........... (434) (445)
Amount............ $ (13,323) $ (12,237)
Class M Shares........... (90) (117)
Amount............ $ (2,473) $ (2,919)
Class N Shares........... (25) (40)
Amount............ $ (704) $ (983)
Class Y Shares........... 1,431 1,713
Amount............ $ 45,888 $ 47,224
STOCK FUND:
Class A Shares........... (7,004) (17,280)
Amount............ $ (137,391) $ (307,587)
Class B Shares........... (4,740) (5,621)
Amount............ $ (87,193) $ (94,047)
Class C Shares........... (2,339) (5,657)
Amount............ $ (43,306) $ (94,768)
Class Y Shares........... 394 980
Amount............ $ 7,983 $ 18,040
TARGET RETIREMENT 2010
FUND:
Class A Shares........... 167 1
Amount............ $ 1,572 $ 12
Class B Shares........... 22 1
Amount............ $ 213 $ 10
Class C Shares........... 48 1
Amount............ $ 462 $ 10
Class Y Shares........... 13 1
Amount............ $ 122 $ 10
TARGET RETIREMENT 2020
FUND:
Class A Shares........... 189 15
Amount............ $ 1,919 $ 144
Class B Shares........... 27 1
Amount............ $ 270 $ 10
Class C Shares........... 31 1
Amount............ $ 313 $ 10
Class Y Shares........... -- 1
Amount............ $ -- $ 10
TARGET RETIREMENT 2030
FUND:
Class A Shares........... 197 1
Amount............ $ 1,784 $ 10
Class B Shares........... 32 1
Amount............ $ 283 $ 10
Class C Shares........... 8 1
Amount............ $ 69 $ 10
Class Y Shares........... 2 1
Amount............ $ 21 $ 10
</Table>
330
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
TAX-FREE CALIFORNIA FUND:
Class A Shares........... 904 230
Amount............ $ 9,421 $ 2,382
Class B Shares........... 44 33
Amount............ $ 456 $ 336
Class C Shares........... 175 52
Amount............ $ 1,828 $ 534
TAX-FREE MINNESOTA FUND:
Class A Shares........... 165 216
Amount............ $ 1,689 $ 2,246
Class B Shares........... 6 28
Amount............ $ 59 $ 288
Class C Shares........... 4 18
Amount............ $ 44 $ 186
Class E Shares........... 23 15
Amount............ $ 236 $ 158
Class H Shares........... -- --
Amount............ $ -- --
Class L Shares........... 2 25
Amount............ $ 23 $ 265
Class M Shares........... 1 1
Amount............ $ 4 $ 18
Class N Shares........... 3 2
Amount............ $ 28 $ 10
Class Y Shares........... -- 1
Amount............ $ -- $ 9
TAX-FREE NATIONAL FUND:
Class A Shares........... 3,023 1,548
Amount............ $ 33,711 $ 17,443
Class B Shares........... 145 162
Amount............ $ 1,607 $ 1,804
Class C Shares........... 562 320
Amount............ $ 6,249 $ 3,583
Class E Shares........... 49 61
Amount............ $ 549 $ 686
Class H Shares........... -- --
Amount............ $ 1 --
Class L Shares........... 34 57
Amount............ $ 381 $ 641
Class M Shares........... -- 2
Amount............ $ 2 $ 19
Class N Shares........... -- 1
Amount............ $ 5 --
Class Y Shares........... -- 1
Amount............ $ -- $ 9
TAX-FREE NEW YORK FUND:
Class A Shares........... 17 52
Amount............ $ 172 $ 545
Class B Shares........... 4 20
Amount............ $ 39 $ 200
Class C Shares........... 1 73
Amount............ $ 8 $ 769
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
TAX-FREE CALIFORNIA FUND:
Class A Shares........... 62 48
Amount............ $ 642 $ 495
Class B Shares........... 2 2
Amount............ $ 27 $ 25
Class C Shares........... 6 4
Amount............ $ 60 $ 43
TAX-FREE MINNESOTA FUND:
Class A Shares........... 21 16
Amount............ $ 221 $ 162
Class B Shares........... 2 2
Amount............ $ 22 $ 20
Class C Shares........... 1 1
Amount............ $ 13 $ 11
Class E Shares........... 75 74
Amount............ $ 770 $ 770
Class H Shares........... -- --
Amount............ $ 4 $ 4
Class L Shares........... 9 9
Amount............ $ 90 $ 91
Class M Shares........... 1 --
Amount............ $ 4 $ 4
Class N Shares........... 1 --
Amount............ $ 5 $ 4
Class Y Shares........... -- --
Amount............ $ -- --
TAX-FREE NATIONAL FUND:
Class A Shares........... 195 121
Amount............ $ 2,163 $ 1,350
Class B Shares........... 20 15
Amount............ $ 216 $ 168
Class C Shares........... 26 13
Amount............ $ 285 $ 149
Class E Shares........... 89 79
Amount............ $ 993 $ 886
Class H Shares........... 1 1
Amount............ $ 7 $ 9
Class L Shares........... 26 20
Amount............ $ 284 $ 226
Class M Shares........... 3 3
Amount............ $ 35 $ 30
Class N Shares........... 1 1
Amount............ $ 16 $ 16
Class Y Shares........... -- --
Amount............ $ 1 --
TAX-FREE NEW YORK FUND:
Class A Shares........... 42 37
Amount............ $ 431 $ 387
Class B Shares........... 5 4
Amount............ $ 52 $ 43
Class C Shares........... 7 5
Amount............ $ 72 $ 52
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
TAX-FREE CALIFORNIA FUND:
Class A Shares........... (128) (204)
Amount............ $ (1,327) $ (2,114)
Class B Shares........... (24) (7)
Amount............ $ (251) $ (68)
Class C Shares........... (44) (8)
Amount............ $ (452) $ (85)
TAX-FREE MINNESOTA FUND:
Class A Shares........... (67) (100)
Amount............ $ (684) $ (1,039)
Class B Shares........... (10) (12)
Amount............ $ (100) $ (122)
Class C Shares........... (6) (9)
Amount............ $ (68) $ (92)
Class E Shares........... (314) (186)
Amount............ $ (3,219) $ (1,948)
Class H Shares........... -- --
Amount............ $ (5) $ (1)
Class L Shares........... (38) (16)
Amount............ $ (386) $ (171)
Class M Shares........... (2) (9)
Amount............ $ (16) $ (97)
Class N Shares........... (4) (3)
Amount............ $ (37) $ (27)
Class Y Shares........... -- --
Amount............ $ -- $ --
TAX-FREE NATIONAL FUND:
Class A Shares........... (1,027) (658)
Amount............ $ (11,431) $ (7,390)
Class B Shares........... (189) (113)
Amount............ $ (2,090) $ (1,259)
Class C Shares........... (213) (314)
Amount............ $ (2,371) $ (3,508)
Class E Shares........... (368) (216)
Amount............ $ (4,112) $ (2,420)
Class H Shares........... (10) (33)
Amount............ $ (111) $ (369)
Class L Shares........... (104) (47)
Amount............ $ (1,157) $ (528)
Class M Shares........... (9) (13)
Amount............ $ (97) $ (140)
Class N Shares........... (13) (6)
Amount............ $ (148) $ (64)
Class Y Shares........... -- --
Amount............ $ -- $ --
TAX-FREE NEW YORK FUND:
Class A Shares........... (82) (16)
Amount............ $ (846) $ (169)
Class B Shares........... (11) --
Amount............ $ (113) $ --
Class C Shares........... (31) (8)
Amount............ $ (317) $ (88)
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
TAX-FREE CALIFORNIA FUND:
Class A Shares........... 838 74
Amount............ $ 8,736 $ 763
Class B Shares........... 22 28
Amount............ $ 232 $ 293
Class C Shares........... 137 48
Amount............ $ 1,436 $ 492
TAX-FREE MINNESOTA FUND:
Class A Shares........... 119 132
Amount............ $ 1,226 $ 1,369
Class B Shares........... (2) 18
Amount............ $ (19) $ 186
Class C Shares........... (1) 10
Amount............ $ (11) $ 105
Class E Shares........... (216) (97)
Amount............ $ (2,213) $ (1,020)
Class H Shares........... -- --
Amount............ $ (1) $ 3
Class L Shares........... (27) 18
Amount............ $ (273) $ 185
Class M Shares........... -- (8)
Amount............ $ (8) $ (75)
Class N Shares........... -- (1)
Amount............ $ (4) $ (13)
Class Y Shares........... -- 1
Amount............ $ -- $ 9
TAX-FREE NATIONAL FUND:
Class A Shares........... 2,191 1,011
Amount............ $ 24,443 $ 11,403
Class B Shares........... (24) 64
Amount............ $ (267) $ 713
Class C Shares........... 375 19
Amount............ $ 4,163 $ 224
Class E Shares........... (230) (76)
Amount............ $ (2,570) $ (848)
Class H Shares........... (9) (32)
Amount............ $ (103) $ (360)
Class L Shares........... (44) 30
Amount............ $ (492) $ 339
Class M Shares........... (6) (8)
Amount............ $ (60) $ (91)
Class N Shares........... (12) (4)
Amount............ $ (127) $ (48)
Class Y Shares........... -- 1
Amount............ $ 1 $ 9
TAX-FREE NEW YORK FUND:
Class A Shares........... (23) 73
Amount............ $ (243) $ 763
Class B Shares........... (2) 24
Amount............ $ (22) $ 244
Class C Shares........... (23) 70
Amount............ $ (237) $ 733
</Table>
331
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES SOLD
------------------------
2006 2005
---------- ----------
TOTAL RETURN BOND FUND:
Class A Shares........... 18,327 7,536
Amount............ $ 192,225 $ 81,793
Class B Shares........... 1,870 1,007
Amount............ $ 19,502 $ 10,886
Class C Shares........... 2,136 1,024
Amount............ $ 22,448 $ 11,119
Class I Shares........... 4 --
Amount............ $ 38 $ --
Class Y Shares........... 8,685 8,276
Amount............ $ 92,401 $ 90,740
U.S. GOVERNMENT
SECURITIES FUND:
Class A Shares........... 1,370 1,580
Amount............ $ 12,608 $ 15,082
Class B Shares........... 248 306
Amount............ $ 2,261 $ 2,904
Class C Shares........... 391 392
Amount............ $ 3,580 $ 3,723
Class E Shares........... 98 93
Amount............ $ 903 $ 878
Class H Shares........... 5 14
Amount............ $ 49 $ 126
Class L Shares........... 122 158
Amount............ $ 1,128 $ 1,513
Class M Shares........... 18 20
Amount............ $ 154 $ 199
Class N Shares........... 3 5
Amount............ $ 27 $ 46
Class Y Shares........... 11 961
Amount............ $ 100 $ 9,199
VALUE FUND:
Class A Shares........... 1,313 996
Amount............ $ 15,756 $ 10,434
Class B Shares........... 168 201
Amount............ $ 1,990 $ 2,069
Class C Shares........... 199 114
Amount............ $ 2,382 $ 1,179
Class Y Shares........... 2,346 3,361
Amount............ $ 28,384 $ 34,573
VALUE OPPORTUNITIES FUND:
Class A Shares........... 2,747 3,015
Amount............ $ 46,259 $ 47,123
Class B Shares........... 338 651
Amount............ $ 5,323 $ 9,516
Class C Shares........... 663 610
Amount............ $ 10,489 $ 9,022
Class H Shares........... 10 19
Amount............ $ 169 $ 267
Class I Shares........... 1 --
Amount............ $ 11 $ --
Class L Shares........... 209 203
Amount............ $ 3,536 $ 3,161
Class M Shares........... 24 37
Amount............ $ 379 $ 541
Class N Shares........... 4 6
Amount............ $ 60 $ 99
Class Y Shares........... 962 5,441
Amount............ $ 16,358 $ 84,846
<Caption>
SHARES ISSUED FOR
REINVESTED DIVIDENDS
---------------------
2006 2005
--------- --------
TOTAL RETURN BOND FUND:
Class A Shares........... 1,485 1,081
Amount............ $ 15,562 $11,696
Class B Shares........... 254 235
Amount............ $ 2,646 $ 2,529
Class C Shares........... 222 208
Amount............ $ 2,326 $ 2,255
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 1,147 614
Amount............ $ 12,137 $ 6,705
U.S. GOVERNMENT
SECURITIES FUND:
Class A Shares........... 201 200
Amount............ $ 1,845 $ 1,905
Class B Shares........... 69 77
Amount............ $ 635 $ 729
Class C Shares........... 32 37
Amount............ $ 293 $ 355
Class E Shares........... 396 408
Amount............ $ 3,626 $ 3,875
Class H Shares........... 9 11
Amount............ $ 84 $ 107
Class L Shares........... 136 136
Amount............ $ 1,246 $ 1,291
Class M Shares........... 9 10
Amount............ $ 87 $ 100
Class N Shares........... 3 3
Amount............ $ 29 $ 33
Class Y Shares........... 13 31
Amount............ $ 117 $ 292
VALUE FUND:
Class A Shares........... 41 20
Amount............ $ 458 $ 204
Class B Shares........... -- --
Amount............ $ -- $ --
Class C Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... 70 32
Amount............ $ 780 $ 328
VALUE OPPORTUNITIES FUND:
Class A Shares........... 133 --
Amount............ $ 2,056 $ --
Class B Shares........... 31 --
Amount............ $ 442 $ --
Class C Shares........... 28 --
Amount............ $ 399 $ --
Class H Shares........... 11 --
Amount............ $ 156 $ --
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... 58 --
Amount............ $ 898 $ --
Class M Shares........... 17 --
Amount............ $ 250 $ --
Class N Shares........... 5 --
Amount............ $ 68 $ --
Class Y Shares........... 215 --
Amount............ $ 3,392 $ --
<Caption>
SHARES REDEEMED
------------------------
2006 2005
----------- ---------
TOTAL RETURN BOND FUND:
Class A Shares........... (8,299) (6,575)
Amount............ $ (87,044) $ (71,365)
Class B Shares........... (2,249) (2,001)
Amount............ $ (23,467) $ (21,616)
Class C Shares........... (2,233) (2,429)
Amount............ $ (23,447) $ (26,396)
Class I Shares........... -- --
Amount............ $ -- $ --
Class Y Shares........... (734) (521)
Amount............ $ (7,756) $ (5,670)
U.S. GOVERNMENT
SECURITIES FUND:
Class A Shares........... (1,674) (2,238)
Amount............ $ (15,426) $ (21,353)
Class B Shares........... (758) (816)
Amount............ $ (6,954) $ (7,742)
Class C Shares........... (406) (839)
Amount............ $ (3,721) $ (7,948)
Class E Shares........... (2,109) (1,606)
Amount............ $ (19,389) $ (15,284)
Class H Shares........... (99) (138)
Amount............ $ (906) $ (1,311)
Class L Shares........... (674) (548)
Amount............ $ (6,198) $ (5,229)
Class M Shares........... (95) (118)
Amount............ $ (871) $ (1,129)
Class N Shares........... (22) (27)
Amount............ $ (205) $ (258)
Class Y Shares........... (1,005) --
Amount............ $ (9,347) $ --
VALUE FUND:
Class A Shares........... (1,075) (992)
Amount............ $ (12,873) $ (10,429)
Class B Shares........... (177) (183)
Amount............ $ (2,065) $ (1,890)
Class C Shares........... (144) (279)
Amount............ $ (1,687) $ (2,885)
Class Y Shares........... (2,417) (12)
Amount............ $ (27,945) $ (130)
VALUE OPPORTUNITIES FUND:
Class A Shares........... (1,047) (501)
Amount............ $ (17,492) $ (7,840)
Class B Shares........... (221) (150)
Amount............ $ (3,466) $ (2,186)
Class C Shares........... (273) (124)
Amount............ $ (4,253) $ (1,815)
Class H Shares........... (126) (139)
Amount............ $ (1,982) $ (2,018)
Class I Shares........... -- --
Amount............ $ -- $ --
Class L Shares........... (240) (254)
Amount............ $ (4,067) $ (3,944)
Class M Shares........... (139) (141)
Amount............ $ (2,199) $ (2,037)
Class N Shares........... (23) (31)
Amount............ $ (362) $ (455)
Class Y Shares........... (1,707) (56)
Amount............ $ (29,124) $ (888)
<Caption>
NET INCREASE (DECREASE)
OF SHARES
------------------------
2006 2005
---------- ----------
TOTAL RETURN BOND FUND:
Class A Shares........... 11,513 2,042
Amount............ $ 120,743 $ 22,124
Class B Shares........... (125) (759)
Amount............ $ (1,319) $ (8,201)
Class C Shares........... 125 (1,197)
Amount............ $ 1,327 $ (13,022)
Class I Shares........... 4 --
Amount............ $ 38 $ --
Class Y Shares........... 9,098 8,369
Amount............ $ 96,782 $ 91,775
U.S. GOVERNMENT
SECURITIES FUND:
Class A Shares........... (103) (458)
Amount............ $ (973) $ (4,366)
Class B Shares........... (441) (433)
Amount............ $ (4,058) $ (4,109)
Class C Shares........... 17 (410)
Amount............ $ 152 $ (3,870)
Class E Shares........... (1,615) (1,105)
Amount............ $ (14,860) $ (10,531)
Class H Shares........... (85) (113)
Amount............ $ (773) $ (1,078)
Class L Shares........... (416) (254)
Amount............ $ (3,824) $ (2,425)
Class M Shares........... (68) (88)
Amount............ $ (630) $ (830)
Class N Shares........... (16) (19)
Amount............ $ (149) $ (179)
Class Y Shares........... (981) 992
Amount............ $ (9,130) $ 9,491
VALUE FUND:
Class A Shares........... 279 24
Amount............ $ 3,341 $ 209
Class B Shares........... (9) 18
Amount............ $ (75) $ 179
Class C Shares........... 55 (165)
Amount............ $ 695 $ (1,706)
Class Y Shares........... (1) 3,381
Amount............ $ 1,219 $ 34,771
VALUE OPPORTUNITIES FUND:
Class A Shares........... 1,833 2,514
Amount............ $ 30,823 $ 39,283
Class B Shares........... 148 501
Amount............ $ 2,299 $ 7,330
Class C Shares........... 418 486
Amount............ $ 6,635 $ 7,207
Class H Shares........... (105) (120)
Amount............ $ (1,657) $ (1,751)
Class I Shares........... 1 --
Amount............ $ 11 $ --
Class L Shares........... 27 (51)
Amount............ $ 367 $ (783)
Class M Shares........... (98) (104)
Amount............ $ (1,570) $ (1,496)
Class N Shares........... (14) (25)
Amount............ $ (234) $ (356)
Class Y Shares........... (530) 5,385
Amount............ $ (9,374) $ 83,958
</Table>
332
- --------------------------------------------------------------------------------
The following reflects the conversion of Class B Shares into Class A Shares
(reflected as Class A Shares issued and Class B shares redeemed within the
previous table) and Classes H and M Shares into Class L Shares (reflected as
Class L shares issued and Classes H and M shares redeemed within the
previous table) for the periods ended October 31, 2006 and October 31, 2005:
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
------------------- -------------------
FUND SHARES DOLLARS SHARES DOLLARS
---- ------- -------- ------- --------
Advisers Fund -- Class B to Class A......................... 1,937 $31,068 757 $11,443
Aggressive Growth Allocation Fund -- Class B to Class A..... 16 194 1 12
Balanced Allocation Fund -- Class B to Class A.............. 63 728 24 253
Capital Appreciation Fund -- Class B to Class A............. 3,083 114 2,593 84,937
Capital Appreciation II Fund -- Class B to Class A.......... 26 328 3 31
Conservative Allocation Fund -- Class B to Class A.......... 5 58 5 57
Disciplined Equity Fund -- Class B to Class A............... 142 1,768 135 1,506
Dividend And Growth Fund -- Class B to Class A.............. 990 20 471 8,794
Equity Income Fund -- Class B to Class A.................... 28 363 10 125
Floating Rate Fund -- Class B to Class A.................... 6 60 -- 1
Focus Fund -- Class B to Class A............................ 6 62 12 112
Global Communications Fund -- Class B to Class A............ 13 102 10 68
Global Financial Services Fund Class B to Class A........... 4 54 -- --
Global Health Fund -- Class B to Class A.................... 44 750 14 215
Global Leaders Fund -- Class B to Class A................... 200 3,702 295 4,722
Global Technology Fund -- Class B to Class A................ 22 119 15 67
Growth Allocation Fund -- Class B to Class A................ 54 654 1 14
Growth Fund -- Class B to Class A........................... 22 390 12 189
Growth Fund -- Class H to Class L........................... 187 3,425 202 3,085
Growth Fund -- Class M to Class L........................... 132 2,416 103 1,579
Growth Opportunities Fund -- Class B to Class A............. 16 465 5 129
Growth Opportunities Fund -- Class H to Class L............. 188 5,397 233 5,301
Growth Opportunities Fund -- Class M to Class L............. 74 2,149 100 2,285
High Yield Fund -- Class B to Class A....................... 448 3,511 515 4,114
Income Allocation Fund -- Class B to Class A................ 4 38 -- --
Income Fund -- Class B to Class A........................... 11 110 6 58
Inflation Plus Fund -- Class B to Class A................... 19 199 41 448
International Capital Appreciation Fund -- Class B to Class
A......................................................... 29 394 13 158
International Opportunities Fund -- Class B to Class A...... 109 1,622 127 1,548
International Small Company Fund -- Class B to Class A...... 34 517 10 127
MidCap Fund -- Class B to Class A........................... 401 9,873 99 2,335
MidCap Value Fund -- Class B to Class A..................... 54 745 21 261
Money Market Fund -- Class B to Class A..................... 1,633 1,633 1,497 1,497
Select MidCap Growth Fund -- Class B to Class A............. 4 46 1 8
Select MidCap Value Fund -- Class B to Class A.............. 1 17 -- --
Short Duration Fund -- Class B to Class A................... 18 181 18 175
SmallCap Growth Fund -- Class B to Class A.................. 7 217 7 184
SmallCap Growth Fund -- Class H to Class L.................. 68 2,066 100 2,463
SmallCap Growth Fund -- Class M to Class L.................. 37 1,131 68 1,710
Small Company Fund -- Class B to Class A.................... 161 3,405 166 2,765
Stock Fund -- Class B to Class A............................ 1,125 22,176 571 9,772
Tax-Free California Fund -- Class B to Class A.............. 2 22 4 38
Tax-Free Minnesota Fund -- Class H to Class L............... -- 1 -- 1
Tax-Free Minnesota Fund -- Class M to Class L............... 1 14 9 97
Tax-Free National Fund -- Class B to Class A................ 9 105 12 134
Tax-Free National Fund -- Class H to Class L................ 5 59 16 182
Tax-Free National Fund -- Class M to Class L................ 7 83 7 74
Total Return Bond Fund -- Class B to Class A................ 224 2,354 91 976
U.S. Government Securities Fund -- Class B to Class A....... 60 558 49 464
U.S. Government Securities Fund -- Class H to Class L....... 41 375 55 518
U.S. Government Securities Fund -- Class M to Class L....... 26 244 22 205
Value Fund -- Class B to Class A............................ 8 88 4 40
Value Opportunities Fund -- Class B to Class A.............. 25 431 7 110
Value Opportunities Fund -- Class H to Class L.............. 71 1,190 86 1,256
Value Opportunities Fund -- Class M to Class L.............. 72 1,228 61 891
</Table>
333
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2006
(000'S OMITTED)
- --------------------------------------------------------------------------------
7. LINE OF CREDIT:
The Funds participate in a $650,000 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, 2006, the Funds did not
have any borrowings under this facility.
8. SUBSEQUENT EVENT:
On November 8, 2006, the Securities and Exchange Commission ("SEC") issued
an Order setting forth the terms of a settlement reached with three
subsidiaries of The Hartford that resolves the SEC's Division of
Enforcement's investigation of aspects of The Hartford's variable annuity
and mutual fund operations related to directed brokerage and revenue
sharing. Under the terms of the settlement, The Hartford will pay a total of
$15.4 million to The Hartford Mutual Funds in the amounts indicated below.
These amounts were recorded on the books of the Funds on November 8, 2006
and paid on November 22, 2006. The Hartford settled this matter without
admitting or denying the findings of the SEC.
<Table>
<Caption>
FUND NAME REIMBURSEMENT AMOUNT
- --------- --------------------
Advisers Fund............................................... $1,265
Capital Appreciation Fund................................... 5,181
Disciplined Equity Fund..................................... 291
Dividend and Growth Fund.................................... 1,017
Focus Fund.................................................. 192
Global Communications Fund.................................. 5
Global Financial Services Fund.............................. 5
Global Health Fund.......................................... 104
Global Leaders Fund......................................... 1,914
Global Technology Fund...................................... 22
Growth Fund................................................. 154
Growth Opportunities Fund................................... 412
International Capital Appreciation Fund..................... 5
International Opportunities Fund............................ 27
MidCap Fund................................................. 2,458
MidCap Value Fund........................................... 55
Small Company Fund.......................................... 671
SmallCap Growth Fund........................................ 38
Stock Fund.................................................. 1,567
Value Opportunities Fund.................................... 16
Value Fund.................................................. 11
</Table>
334
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD ADVISERS FUND
For the Year Ended October 31, 2006
Class A................................ $15.34 $0.31 $1.38 $1.69 $(0.29) $ --
Class B................................ 15.19 0.18 1.37 1.55 (0.17) --
Class C................................ 15.34 0.19 1.38 1.57 (0.18) --
Class Y................................ 15.50 0.38 1.40 1.78 (0.37) --
For the Year Ended October 31, 2005(h)
Class A................................ 14.57 0.26 0.80 1.06 (0.29) --
Class B................................ 14.43 0.14 0.79 0.93 (0.17) --
Class C................................ 14.56 0.16 0.80 0.96 (0.18) --
Class Y................................ 14.72 0.33 0.81 1.14 (0.36) --
For the Year Ended October 31, 2004(h)
Class A................................ 14.19 0.18 0.38 0.56 (0.18) --
Class B................................ 14.05 0.07 0.38 0.45 (0.07) --
Class C................................ 14.18 0.09 0.37 0.46 (0.08) --
Class Y................................ 14.37 0.25 0.36 0.61 (0.26) --
For the Year Ended October 31, 2003(h)
Class A................................ 12.67 0.19 1.52 1.71 (0.19) --
Class B................................ 12.54 0.09 1.51 1.60 (0.09) --
Class C................................ 12.66 0.11 1.52 1.63 (0.11) --
Class Y................................ 12.82 0.27 1.54 1.81 (0.26) --
For the Year Ended October 31, 2002(h)
Class A................................ 14.38 0.21 (1.69) (1.48) (0.23) --
Class B................................ 14.24 0.11 (1.68) (1.57) (0.13) --
Class C................................ 14.37 0.12 (1.69) (1.57) (0.14)
Class Y................................ 14.54 0.13 (1.55) (1.42) (0.30) --
THE HARTFORD AGGRESSIVE GROWTH
ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ 11.46 0.02 1.83 1.85 (0.09) (0.01)
Class B................................ 11.37 (0.12) 1.88 1.76 (0.02) (0.01)
Class C................................ 11.37 (0.12) 1.88 1.76 (0.02) (0.01)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 12.59 (0.01) 0.64 0.63 -- --
For the Year Ended October 31, 2005
Class A................................ 10.38 (0.02) 1.12 1.10 (0.02) --
Class B................................ 10.35 (0.08) 1.10 1.02 -- --
Class C................................ 10.35 (0.07) 1.09 1.02 -- --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 10.00 (0.01) 0.39 0.38 -- --
Class B................................ 10.00 (0.02) 0.37 0.35 -- --
Class C................................ 10.00 (0.02) 0.37 0.35 -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD ADVISERS FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.29) $1.40 $16.74 11.16%
Class B................................ -- (0.17) 1.38 16.57 10.25
Class C................................ -- (0.18) 1.39 16.73 10.32
Class Y................................ -- (0.37) 1.41 16.91 11.63
For the Year Ended October 31, 2005(h)
Class A................................ -- (0.29) 0.77 15.34 7.30
Class B................................ -- (0.17) 0.76 15.19 6.48
Class C................................ -- (0.18) 0.78 15.34 6.63
Class Y................................ -- (0.36) 0.78 15.50 7.78
For the Year Ended October 31, 2004(h)
Class A................................ -- (0.18) 0.38 14.57 3.93(i)
Class B................................ -- (0.07) 0.38 14.43 3.21(i)
Class C................................ -- (0.08) 0.38 14.56 3.27(i)
Class Y................................ -- (0.26) 0.35 14.72 4.22
For the Year Ended October 31, 2003(h)
Class A................................ -- (0.19) 1.52 14.19 13.62
Class B................................ -- (0.09) 1.51 14.05 12.86
Class C................................ -- (0.11) 1.52 14.18 12.92
Class Y................................ -- (0.26) 1.55 14.37 14.28
For the Year Ended October 31, 2002(h)
Class A................................ -- (0.23) (1.71) 12.67 (10.42)
Class B................................ -- (0.13) (1.70) 12.54 (11.11)
Class C................................ -- (0.14) (1.71) 12.66 (10.99)
Class Y................................ -- (0.30) (1.72) 12.82 (9.89)
THE HARTFORD AGGRESSIVE GROWTH
ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ -- (0.10) 1.75 13.21 16.18
Class B................................ -- (0.03) 1.73 13.10 15.43
Class C................................ -- (0.03) 1.73 13.10 15.43
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.63 13.22 5.00(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.02) 1.08 11.46 10.60
Class B................................ -- -- 1.02 11.37 9.88
Class C................................ -- -- 1.02 11.37 9.88
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ -- -- 0.38 10.38 3.80(f)
Class B................................ -- -- 0.35 10.35 3.50(f)
Class C................................ -- -- 0.35 10.35 3.50(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD ADVISERS FUND
For the Year Ended October 31, 2006
Class A................................ $1,110,324 1.17% 1.12% 1.86% 99%
Class B................................ 341,772 1.96 1.91 1.07 --
Class C................................ 219,580 1.87 1.82 1.16 --
Class Y................................ 17,710 0.71 0.66 2.32 --
For the Year Ended October 31, 2005(h)
Class A................................ 1,222,944 1.21 1.19 1.73 66
Class B................................ 437,462 1.99 1.98 0.95 --
Class C................................ 253,605 1.91 1.89 1.06 --
Class Y................................ 15,342 0.75 0.74 2.13 --
For the Year Ended October 31, 2004(h)
Class A................................ 1,539,264 1.22 1.22 1.23 42
Class B................................ 550,499 1.95 1.95 0.50 --
Class C................................ 355,711 1.86 1.86 0.58 --
Class Y................................ 13,587 0.74 0.74 1.71 --
For the Year Ended October 31, 2003(h)
Class A................................ 1,470,569 1.40 1.39 1.44 46
Class B................................ 593,179 2.13 2.12 0.72 --
Class C................................ 421,814 2.00 2.00 0.84 --
Class Y................................ 8,714 0.81 0.81 1.98 --
For the Year Ended October 31, 2002(h)
Class A................................ 1,245,331 1.41 1.36 1.56 44
Class B................................ 567,953 2.08 2.08 0.84 --
Class C................................ 422,520 1.97 1.97 0.95 --
Class Y................................ 3,997 0.78 0.78 2.15 --
THE HARTFORD AGGRESSIVE GROWTH
ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ 116,198 0.79 0.72 (0.34) 14
Class B................................ 33,295 1.62 1.37 (0.93) --
Class C................................ 51,936 1.51 1.37 (0.92) --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 11 0.71(e) 0.48(e) (0.45)(e) --
For the Year Ended October 31, 2005
Class A................................ 58,087 0.85 0.68 (0.43) 9
Class B................................ 20,155 1.64 1.33 (1.08) --
Class C................................ 32,718 1.53 1.34 (1.08) --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 12,415 0.86(e) 0.67(e) (0.58)(e) 3
Class B................................ 4,532 1.69(e) 1.32(e) (1.23)(e) --
Class C................................ 5,424 1.59(e) 1.32(e) (1.23)(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
(i) Without the inclusion of the Payment from Affiliate, 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.
The accompanying notes are an integral part of these financial statements.
335
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED TOTAL DIVIDENDS
VALUE AT INVESTMENT GAIN FROM FROM NET
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME
--------- ---------- ------------ ---------- ----------
THE HARTFORD BALANCED ALLOCATION FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ $10.95 $0.18 $1.12 $1.30 $(0.22)
Class B................................ 10.92 0.10 1.11 1.21 (0.13)
Class C................................ 10.92 0.11 1.11 1.22 (0.14)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 11.66 0.05 0.34 0.39 (0.05)
For the Year Ended October 31, 2005
Class A................................ 10.30 0.13 0.64 0.77 (0.12)
Class B................................ 10.28 0.06 0.62 0.68 (0.04)
Class C................................ 10.28 0.06 0.62 0.68 (0.04)
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 10.00 0.02 0.30 0.32 (0.02)
Class B................................ 10.00 0.01 0.27 0.28 --
Class C................................ 10.00 -- 0.28 0.28 --
THE HARTFORD BALANCED INCOME FUND
From July 31, 2006, (commencement of
operations) through October 31, 2006
Class A................................ 10.00 0.09 0.39 0.48 (0.06)
Class B................................ 10.00 0.07 0.38 0.45 (0.04)
Class C................................ 10.00 0.06 0.40 0.46 (0.05)
Class Y................................ 10.00 0.10 0.38 0.48 (0.06)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------------
DISTRIBUTIONS NET
FROM INCREASE NET ASSET
REALIZED DISTRIBUTIONS (DECREASE) VALUE AT
CAPITAL FROM TOTAL IN NET ASSET END OF TOTAL
GAINS CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------- ------------ --------- ---------
THE HARTFORD BALANCED ALLOCATION FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ $(0.02) $ -- $(0.24) $1.06 $12.01 11.98%
Class B................................ (0.02) -- (0.15) 1.06 11.98 11.22
Class C................................ (0.02) -- (0.16) 1.06 11.98 11.24
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- (0.05) 0.34 12.00 3.35(f)
For the Year Ended October 31, 2005
Class A................................ -- -- (0.12) 0.65 10.95 7.47
Class B................................ -- -- (0.04) 0.64 10.92 6.66
Class C................................ -- -- (0.04) 0.64 10.92 6.66
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ -- -- (0.02) 0.30 10.30 3.15(f)
Class B................................ -- -- -- 0.28 10.28 2.82(f)
Class C................................ -- -- -- 0.28 10.28 2.82(f)
THE HARTFORD BALANCED INCOME FUND
From July 31, 2006, (commencement of
operations) through October 31, 2006
Class A................................ -- -- (0.06) 0.42 10.42 4.78(f)
Class B................................ -- -- (0.04) 0.41 10.41 4.54(f)
Class C................................ -- -- (0.05) 0.41 10.41 4.56(f)
Class Y................................ -- -- (0.06) 0.42 10.42 4.83(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD BALANCED ALLOCATION FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ $453,492 0.62% 0.62% 1.52% 15%
Class B................................ 109,117 1.44 1.36 0.82 --
Class C................................ 171,073 1.38 1.36 0.78 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 353 0.39(e) 0.39(e) 1.47(e) --
For the Year Ended October 31, 2005
Class A................................ 262,878 0.66 0.60 1.26 2
Class B................................ 72,619 1.47 1.31 0.55 --
Class C................................ 103,248 1.41 1.31 0.56 --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 67,293 0.62(e) 0.59(e) 0.99(e) --
Class B................................ 18,841 1.45(e) 1.29(e) 0.33(e) --
Class C................................ 30,414 1.38(e) 1.29(e) 0.30(e) --
THE HARTFORD BALANCED INCOME FUND
From July 31, 2006, (commencement of
operations) through October 31, 2006
Class A................................ 11,513 1.58(e) 1.25(e) 3.48(e) 8
Class B................................ 304 2.34(e) 2.00(e) 2.73(e) --
Class C................................ 400 2.39(e) 2.00(e) 2.67(e) --
Class Y................................ 105 1.31(e) 0.90(e) 3.86(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
The accompanying notes are an integral part of these financial statements.
336
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD CAPITAL APPRECIATION FUND
For the Year Ended October 31, 2006
Class A................................ $36.51 $ 0.15 $ 6.43 $ 6.58 $ -- $(3.42)
Class B................................ 33.90 (0.10) 5.87 5.77 -- (3.42)
Class C................................ 34.00 (0.07) 5.89 5.82 -- (3.42)
Class Y................................ 38.47 0.30 6.84 7.14 -- (3.42)
From August 31, (commencement of
operations) through October 31, 2006
Class I................................ 37.53 -- 2.16 2.16 -- --
For the Year Ended October 31, 2005
Class A................................ 30.80 0.09 5.62 5.71 -- --
Class B................................ 28.82 (0.15) 5.23 5.08 -- --
Class C................................ 28.88 (0.11) 5.23 5.12 -- --
Class Y................................ 32.29 0.21 5.97 6.18 -- --
For the Year Ended October 31, 2004
Class A................................ 26.50 (0.01) 4.31 4.30 -- --
Class B................................ 24.97 (0.21) 4.06 3.85 -- --
Class C................................ 25.00 (0.18) 4.06 3.88 -- --
Class Y................................ 27.64 0.11 4.54 4.65 -- --
For the Year Ended October 31, 2003
Class A................................ 20.47 (0.04) 6.07 6.03 -- --
Class B................................ 19.44 (0.19) 5.72 5.53 -- --
Class C................................ 19.44 (0.16) 5.72 5.56 -- --
Class Y................................ 21.23 0.08 6.33 6.41 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 24.12 (0.06) (3.59) (3.65) -- --
Class B................................ 23.06 (0.25) (3.37) (3.62) -- --
Class C................................ 23.04 (0.22) (3.38) (3.60) -- --
Class Y................................ 24.85 0.04 (3.66) (3.62) -- --
THE HARTFORD CAPITAL APPRECIATION II
FUND
For the Year Ended October 31, 2006
Class A................................ 11.07 (0.01) 2.22 2.21 -- (0.15)
Class B................................ 11.02 (0.07) 2.19 2.12 -- (0.15)
Class C................................ 11.04 (0.06) 2.17 2.11 -- (0.15)
Class Y................................ 11.08 0.12 2.15 2.27 -- (0.15)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 12.51 -- 0.63 0.63 -- --
From April 29, 2005, (commencement of
operations) through October 31, 2005
Class A................................ 10.00 (0.01) 1.08 1.07 -- --
Class B................................ 10.00 (0.03) 1.05 1.02 -- --
Class C................................ 10.00 (0.03) 1.07 1.04 -- --
Class Y................................ 10.00 0.02 1.06 1.08 -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END OF TOTAL
CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD CAPITAL APPRECIATION FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(3.42) $ 3.16 $39.67 19.56%
Class B................................ -- (3.42) 2.35 36.25 18.59
Class C................................ -- (3.42) 2.40 36.40 18.69
Class Y................................ -- (3.42) 3.72 42.19 20.07
From August 31, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 2.16 39.69 5.76(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 5.71 36.51 18.54
Class B................................ -- -- 5.08 33.90 17.63
Class C................................ -- -- 5.12 34.00 17.73
Class Y................................ -- -- 6.18 38.47 19.14
For the Year Ended October 31, 2004
Class A................................ -- -- 4.30 30.80 16.23
Class B................................ -- -- 3.85 28.82 15.42
Class C................................ -- -- 3.88 28.88 15.52
Class Y................................ -- -- 4.65 32.29 16.82
For the Year Ended October 31, 2003
Class A................................ -- -- 6.03 26.50 29.46
Class B................................ -- -- 5.53 24.97 28.45
Class C................................ -- -- 5.56 25.00 28.60
Class Y................................ -- -- 6.41 27.64 30.19
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (3.65) 20.47 (15.13)
Class B................................ -- -- (3.62) 19.44 (15.70)
Class C................................ -- -- (3.60) 19.44 (15.62)
Class Y................................ -- -- (3.62) 21.23 (14.57)
THE HARTFORD CAPITAL APPRECIATION II
FUND
For the Year Ended October 31, 2006
Class A................................ -- (0.15) 2.06 13.13 20.21
Class B................................ -- (0.15) 1.97 12.99 19.48
Class C................................ -- (0.15) 1.96 13.00 19.35
Class Y................................ -- (0.15) 2.12 13.20 20.74
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.63 13.14 5.04(f)
From April 29, 2005, (commencement of
operations) through October 31, 2005
Class A................................ -- -- 1.07 11.07 10.70(f)
Class B................................ -- -- 1.02 11.02 10.20(f)
Class C................................ -- -- 1.04 11.04 10.40(f)
Class Y................................ -- -- 1.08 11.08 10.80(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD CAPITAL APPRECIATION FUND
For the Year Ended October 31, 2006
Class A................................ $9,312,766 1.18% 1.18% 0.47% 74%
Class B................................ 1,868,359 1.97 1.97 (0.31) --
Class C................................ 2,968,472 1.90 1.90 (0.25) --
Class Y................................ 414,259 0.75 0.75 0.90 --
From August 31, (commencement of
operations) through October 31, 2006
Class I................................ 5,193 0.88(e) 0.88(e) 0.17(e) --
For the Year Ended October 31, 2005
Class A................................ 6,071,891 1.26 1.26 0.31 93
Class B................................ 1,631,199 2.03 2.03 (0.45) --
Class C................................ 1,834,562 1.94 1.94 (0.37) --
Class Y................................ 245,163 0.78 0.78 0.76 --
For the Year Ended October 31, 2004
Class A................................ 4,203,178 1.35 1.35 (0.05) 78
Class B................................ 1,432,121 2.06 2.06 (0.78) --
Class C................................ 1,348,972 1.97 1.97 (0.68) --
Class Y................................ 116,527 0.79 0.79 0.50 --
For the Year Ended October 31, 2003
Class A................................ 2,357,913 1.45 1.60 (0.13) 113
Class B................................ 1,140,154 2.17 2.17 (0.87) --
Class C................................ 981,246 2.05 2.05 (0.75) --
Class Y................................ 48,372 0.85 0.85 0.46 --
For the Year Ended October 31, 2002(h)
Class A................................ 1,700,765 1.45 1.40 (0.28) 112
Class B................................ 884,553 2.14 2.14 (1.04) --
Class C................................ 738,988 2.02 2.02 (0.92) --
Class Y................................ 25,378 0.80 0.80 0.27 --
THE HARTFORD CAPITAL APPRECIATION II
FUND
For the Year Ended October 31, 2006
Class A................................ 241,238 1.66 1.60 (0.13) 113
Class B................................ 29,169 2.54 2.35 (0.88) --
Class C................................ 97,678 2.37 2.33 (0.86) --
Class Y................................ 119 1.20 1.15 0.39 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 3,316 1.46(e) 0.80(e) 0.45(e) --
From April 29, 2005, (commencement of
operations) through October 31, 2005
Class A................................ 56,981 1.99(e) 1.60(e) (0.30)(e) 46
Class B................................ 6,343 2.97(e) 2.35(e) (1.10)(e) --
Class C................................ 19,494 2.82(e) 2.35(e) (1.12)(e) --
Class Y................................ 332 1.41(e) 1.15(e) 0.29(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
337
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED TOTAL DIVIDENDS
VALUE AT INVESTMENT GAIN FROM FROM NET
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME
--------- ---------- ------------ ---------- ----------
THE HARTFORD CONSERVATIVE ALLOCATION
FUND(G)
For the Year Ended October 31, 2006
Class A................................ $10.57 $ 0.26 $ 0.76 $ 1.02 $(0.31)
Class B................................ 10.56 0.19 0.76 0.95 (0.23)
Class C................................ 10.56 0.19 0.76 0.95 (0.24)
From August 31, (commencement of
operations) through October 31, 2006
Class I................................ 10.94 0.07 0.22 0.29 (0.07)
For the Year Ended October 31, 2005
Class A................................ 10.27 0.23 0.28 0.51 (0.21)
Class B................................ 10.26 0.16 0.28 0.44 (0.14)
Class C................................ 10.26 0.16 0.28 0.44 (0.14)
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 10.00 0.03 0.27 0.30 (0.03)
Class B................................ 10.00 0.02 0.25 0.27 (0.01)
Class C................................ 10.00 0.02 0.25 0.27 (0.01)
THE HARTFORD DISCIPLINED EQUITY FUND
For the Year Ended October 31, 2006
Class A................................ 11.78 0.04 1.39 1.43 (0.02)
Class B................................ 11.25 (0.03) 1.31 1.28 --
Class C................................ 11.26 (0.04) 1.32 1.28 --
Class Y................................ 12.12 0.14 1.40 1.54 (0.08)
For the Year Ended October 31, 2005
Class A................................ 10.67 0.10 1.09 1.19 (0.08)
Class B................................ 10.20 (0.02) 1.08 1.06 (0.01)
Class C................................ 10.22 (0.02) 1.07 1.05 (0.01)
Class Y................................ 10.99 0.15 1.12 1.27 (0.14)
For the Year Ended October 31, 2004
Class A................................ 10.08 0.03 0.57 0.60 (0.01)
Class B................................ 9.70 (0.05) 0.55 0.50 --
Class C................................ 9.71 (0.05) 0.56 0.51 --
Class Y................................ 10.36 (0.01) 0.69 0.68 (0.05)
For the Year Ended October 31, 2003
Class A................................ 8.43 0.02 1.63 1.65 --
Class B................................ 8.17 (0.04) 1.57 1.53 --
Class C................................ 8.18 (0.04) 1.57 1.53 --
Class Y................................ 8.63 0.08 1.65 1.73 --
For the Year Ended October 31, 2002(h)
Class A................................ 10.36 -- (1.93) (1.93) --
Class B................................ 10.10 (0.11) (1.82) (1.93) --
Class C................................ 10.11 (0.06) (1.87) (1.93) --
Class Y................................ 10.52 0.05 (1.94) (1.89) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------------
DISTRIBUTIONS NET
FROM INCREASE NET ASSET
REALIZED DISTRIBUTIONS (DECREASE) VALUE AT
CAPITAL FROM TOTAL IN NET ASSET END OF TOTAL
GAINS CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------- ------------ --------- ---------
THE HARTFORD CONSERVATIVE ALLOCATION
FUND(G)
For the Year Ended October 31, 2006
Class A................................ $(0.12) $ -- $(0.43) $0.59 $11.16 9.85%
Class B................................ (0.12) -- (0.35) 0.60 11.16 9.19
Class C................................ (0.12) -- (0.36) 0.59 11.15 9.10
From August 31, (commencement of
operations) through October 31, 2006
Class I................................ -- -- (0.07) 0.22 11.16 2.69(f)
For the Year Ended October 31, 2005
Class A................................ -- -- (0.21) 0.30 10.57 4.96
Class B................................ -- -- (0.14) 0.30 10.56 4.26
Class C................................ -- -- (0.14) 0.30 10.56 4.26
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ -- -- (0.03) 0.27 10.27 2.96(f)
Class B................................ -- -- (0.01) 0.26 10.26 2.70(f)
Class C................................ -- -- (0.01) 0.26 10.26 2.70(f)
THE HARTFORD DISCIPLINED EQUITY FUND
For the Year Ended October 31, 2006
Class A................................ -- -- (0.02) 1.41 13.19 12.13
Class B................................ -- -- -- 1.28 12.53 11.38
Class C................................ -- -- -- 1.28 12.54 11.37
Class Y................................ -- -- (0.08) 1.46 13.58 12.76
For the Year Ended October 31, 2005
Class A................................ -- -- (0.08) 1.11 11.78 11.19
Class B................................ -- -- (0.01) 1.05 11.25 10.35
Class C................................ -- -- (0.01) 1.04 11.26 10.29
Class Y................................ -- -- (0.14) 1.13 12.12 11.62
For the Year Ended October 31, 2004
Class A................................ -- -- (0.01) 0.59 10.67 5.92
Class B................................ -- -- -- 0.50 10.20 5.16
Class C................................ -- -- -- 0.51 10.22 5.25(i)
Class Y................................ -- -- (0.05) 0.63 10.99 6.55
For the Year Ended October 31, 2003
Class A................................ -- -- -- 1.65 10.08 19.57
Class B................................ -- -- -- 1.53 9.70 18.73
Class C................................ -- -- -- 1.53 9.71 18.70
Class Y................................ -- -- -- 1.73 10.36 20.05
For the Year Ended October 31, 2002(h)
Class A................................ -- -- -- (1.93) 8.43 (18.63)
Class B................................ -- -- -- (1.93) 8.17 (19.11)
Class C................................ -- -- -- (1.93) 8.18 (19.09)
Class Y................................ -- -- -- (1.89) 8.63 (17.97)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD CONSERVATIVE ALLOCATION
FUND(G)
For the Year Ended October 31, 2006
Class A................................ $ 93,504 0.64% 0.63% 2.41% 29%
Class B................................ 20,782 1.48 1.31 1.73 --
Class C................................ 36,123 1.41 1.31 1.67 --
From August 31, (commencement of
operations) through October 31, 2006
Class I................................ 10 0.72(e) 0.41(e) 2.07(e) --
For the Year Ended October 31, 2005
Class A................................ 70,533 0.63 0.60 2.25 23
Class B................................ 14,525 1.48 1.26 1.60 --
Class C................................ 27,453 1.42 1.26 1.56 --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 33,921 0.63(e) 0.60(e) 1.70(e) --
Class B................................ 4,993 1.44(e) 1.25(e) 1.05(e) --
Class C................................ 10,807 1.38(e) 1.25(e) 1.17(e) --
THE HARTFORD DISCIPLINED EQUITY FUND
For the Year Ended October 31, 2006
Class A................................ 189,375 1.40 1.40 0.39 67
Class B................................ 35,673 2.30 2.07 (0.28) --
Class C................................ 29,153 2.10 2.10 (0.31) --
Class Y................................ 169,614 0.89 0.89 0.88 --
For the Year Ended October 31, 2005
Class A................................ 209,721 1.41 1.40 0.81 61
Class B................................ 39,806 2.34 2.15 0.06 --
Class C................................ 33,690 2.11 2.11 0.12 --
Class Y................................ 81,582 0.90 0.90 0.97 --
For the Year Ended October 31, 2004
Class A................................ 241,014 1.46 1.45 0.30 62
Class B................................ 44,561 2.34 2.15 (0.41) --
Class C................................ 40,965 2.10 2.10 (0.36) --
Class Y................................ 19,578 0.88 0.88 0.95 --
For the Year Ended October 31, 2003
Class A................................ 243,842 1.56 1.45 0.24 76
Class B................................ 47,888 2.30 2.15 (0.46) --
Class C................................ 46,162 2.17 2.15 (0.46) --
Class Y................................ 622 0.98 0.98 0.70 --
For the Year Ended October 31, 2002(h)
Class A................................ 230,545 1.57 1.45 (0.03) 89
Class B................................ 43,431 2.26 2.15 (1.03) --
Class C................................ 44,054 2.13 2.13 (0.80) --
Class Y................................ 661 0.93 0.93 0.46 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
(i) Without the inclusion of the Payment from Affiliate, the total return would
have been 5.24%, class C. The net asset value impact of the Payment from
Affiliate was less than $0.01 for class C.
The accompanying notes are an integral part of these financial statements.
338
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD DIVIDEND AND GROWTH FUND
For the Year Ended October 31, 2006(h)
Class A................................ $19.10 $0.26 $ 3.14 $ 3.40 $(0.26) $(0.76)
Class B................................ 18.84 0.09 3.10 3.19 (0.10) (0.76)
Class C................................ 18.81 0.12 3.08 3.20 (0.12) (0.76)
Class Y................................ 19.30 0.35 3.18 3.53 (0.35) (0.76)
From August 31, 2006, (commencement of
operations) through October 31,
2006(h)
Class I................................ 20.48 0.03 1.03 1.06 (0.08) --
For the Year Ended October 31, 2005
Class A................................ 17.79 0.23 1.51 1.74 (0.24) (0.19)
Class B................................ 17.56 0.08 1.48 1.56 (0.09) (0.19)
Class C................................ 17.53 0.10 1.48 1.58 (0.11) (0.19)
Class Y................................ 17.97 0.32 1.53 1.85 (0.33) (0.19)
For the Year Ended October 31, 2004
Class A................................ 15.94 0.17 1.82 1.99 (0.14) --
Class B................................ 15.75 0.03 1.80 1.83 (0.02) --
Class C................................ 15.72 0.06 1.79 1.85 (0.04) --
Class Y................................ 16.11 0.24 1.86 2.10 (0.24) --
For the Year Ended October 31, 2003
Class A................................ 13.58 0.12 2.37 2.49 (0.13)(j) --
Class B................................ 13.43 0.03 2.32 2.35 (0.03)(j) --
Class C................................ 13.40 0.04 2.32 2.36 (0.04)(j) --
Class Y................................ 13.73 0.19 2.40 2.59 (0.21)(j) --
For the Year Ended October 31, 2002(h)
Class A................................ 15.53 0.12 (1.71) (1.59) (0.12) (0.24)
Class B................................ 15.37 0.02 (1.70) (1.68) (0.02) (0.24)
Class C................................ 15.33 0.03 (1.69) (1.66) (0.03) (0.24)
Class Y................................ 15.71 0.12 (1.65) (1.53) (0.21) (0.24)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD DIVIDEND AND GROWTH FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(1.02) $ 2.38 $21.48 18.63%
Class B................................ -- (0.86) 2.33 21.17 17.63
Class C................................ -- (0.88) 2.32 21.13 17.75
Class Y................................ -- (1.11) 2.42 21.72 19.15
From August 31, 2006, (commencement of
operations) through October 31,
2006(h)
Class I................................ -- (0.08) 0.98 21.46 5.20(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.43) 1.31 19.10 9.87
Class B................................ -- (0.28) 1.28 18.84 8.92
Class C................................ -- (0.30) 1.28 18.81 9.08
Class Y................................ -- (0.52) 1.33 19.30 10.36
For the Year Ended October 31, 2004
Class A................................ -- (0.14) 1.85 17.79 12.53(i)
Class B................................ -- (0.02) 1.81 17.56 11.62
Class C................................ -- (0.04) 1.81 17.53 11.76(i)
Class Y................................ -- (0.24) 1.86 17.97 13.06
For the Year Ended October 31, 2003
Class A................................ -- (0.13) 2.36 15.94 18.42
Class B................................ -- (0.03) 2.32 15.75 17.52
Class C................................ -- (0.04) 2.32 15.72 17.67
Class Y................................ -- (0.21) 2.38 16.11 19.03
For the Year Ended October 31, 2002(h)
Class A................................ -- (0.36) (1.95) 13.58 (10.64)
Class B................................ -- (0.26) (1.94) 13.43 (11.15)
Class C................................ -- (0.27) (1.93) 13.40 (11.08)
Class Y................................ -- (0.45) (1.98) 13.73 (10.00)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD DIVIDEND AND GROWTH FUND
For the Year Ended October 31, 2006(h)
Class A................................ $2,626,634 1.14% 1.14% 1.32% 29%
Class B................................ 365,678 1.99 1.99 0.48 --
Class C................................ 317,139 1.87 1.87 0.60 --
Class Y................................ 133,376 0.71 0.71 1.75 --
From August 31, 2006, (commencement of
operations) through October 31,
2006(h)
Class I................................ 11 1.08(e) 0.98(e) 0.59(e) --
For the Year Ended October 31, 2005
Class A................................ 2,109,617 1.17 1.17 1.25 26
Class B................................ 343,650 2.01 2.01 0.41 --
Class C................................ 280,967 1.89 1.89 0.54 --
Class Y................................ 114,777 0.73 0.73 1.64 --
For the Year Ended October 31, 2004
Class A................................ 1,838,567 1.23 1.23 0.96 25
Class B................................ 319,512 2.04 2.04 0.16 --
Class C................................ 277,706 1.90 1.90 0.29 --
Class Y................................ 69,088 0.75 0.75 1.44 --
For the Year Ended October 31, 2003
Class A................................ 1,296,982 1.41 1.40 0.88 31
Class B................................ 257,856 2.14 2.13 0.16 --
Class C................................ 230,348 2.02 2.02 0.27 --
Class Y................................ 42,107 0.81 0.81 1.44 --
For the Year Ended October 31, 2002(h)
Class A................................ 808,633 1.46 1.40 0.78 33
Class B................................ 185,731 2.13 2.10 0.08 --
Class C................................ 164,260 2.02 2.02 0.15 --
Class Y................................ 14,790 0.82 0.82 1.36 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
(i) Without the inclusion of the Payment from Affiliate, the total return would
have been 12.47% and 11.72% for classes A, C, respectively. The net asset
value impact of the Payment from Affiliate was $0.01, and $0.01 for classes
A and C, respectively.
(j) This includes a tax return of capital of less than $0.01.
The accompanying notes are an integral part of these financial statements.
339
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD EQUITY INCOME FUND
For the Year Ended October 31, 2006
Class A................................ $12.09 $0.26 $1.96 $2.22 $(0.28) $(0.03)
Class B................................ 12.07 0.16 1.94 2.10 (0.17) (0.03)
Class C................................ 12.08 0.17 1.96 2.13 (0.19) (0.03)
Class Y................................ 12.15 0.30 1.98 2.28 (0.33) (0.03)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 13.52 0.08 0.46 0.54 (0.07) --
For the Year Ended October 31, 2005
Class A................................ 11.28 0.27 0.82 1.09 (0.26) (0.02)
Class B................................ 11.26 0.17 0.82 0.99 (0.16) (0.02)
Class C................................ 11.27 0.20 0.81 1.01 (0.18) (0.02)
Class Y................................ 11.33 0.32 0.83 1.15 (0.31) (0.02)
For the Year Ended October 31, 2004
Class A................................ 10.37 0.21 0.90 1.11 (0.20) --
Class B................................ 10.36 0.13 0.89 1.02 (0.12) --
Class C................................ 10.36 0.15 0.89 1.04 (0.13) --
Class Y................................ 10.39 0.24 0.95 1.19 (0.25) --
From inception August 28, 2003, through
October 31, 2003
Class A................................ 10.00 0.02 0.35 0.37 -- --
Class B................................ 10.00 0.01 0.35 0.36 -- --
Class C................................ 10.00 0.01 0.35 0.36 -- --
Class Y................................ 10.00 0.04 0.35 0.39 -- --
THE HARTFORD FLOATING RATE FUND
For the Year Ended October 31, 2006
Class A................................ 10.09 0.62 0.02 0.64 (0.62) --
Class B................................ 10.08 0.54 0.03 0.57 (0.54) --
Class C................................ 10.08 0.55 0.03 0.58 (0.55) --
Class Y................................ 10.08 0.66 0.02 0.68 (0.65) --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 10.11 0.12 -- 0.12 (0.12) --
From April 29, 2005, (commencement of
operations) through October 31, 2005
Class A................................ 10.00 0.22 0.08 0.30 (0.21) --
Class B................................ 10.00 0.19 0.08 0.27 (0.19) --
Class C................................ 10.00 0.18 0.09 0.27 (0.19) --
Class Y................................ 10.00 0.23 0.08 0.31 (0.23) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END OF TOTAL
CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD EQUITY INCOME FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.31) $1.91 $14.00 18.70%
Class B................................ -- (0.20) 1.90 13.97 17.67
Class C................................ -- (0.22) 1.91 13.99 17.88
Class Y................................ -- (0.36) 1.92 14.07 19.18
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- (0.07) 0.47 13.99 4.05(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.28) 0.81 12.09 9.74
Class B................................ -- (0.18) 0.81 12.07 8.84
Class C................................ -- (0.20) 0.81 12.08 9.00
Class Y................................ -- (0.33) 0.82 12.15 10.22
For the Year Ended October 31, 2004
Class A................................ -- (0.20) 0.91 11.28 10.82
Class B................................ -- (0.12) 0.90 11.26 9.93
Class C................................ -- (0.13) 0.91 11.27 10.12
Class Y................................ -- (0.25) 0.94 11.33 11.53
From inception August 28, 2003, through
October 31, 2003
Class A................................ -- -- 0.37 10.37 3.70(f)
Class B................................ -- -- 0.36 10.36 3.60(f)
Class C................................ -- -- 0.36 10.36 3.60(f)
Class Y................................ -- -- 0.39 10.39 3.90(f)
THE HARTFORD FLOATING RATE FUND
For the Year Ended October 31, 2006
Class A................................ -- (0.62) 0.02 10.11 6.56
Class B................................ -- (0.54) 0.03 10.11 5.79
Class C................................ -- (0.55) 0.03 10.11 5.86
Class Y................................ -- (0.65) 0.03 10.11 7.00
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- (0.12) -- 10.11 1.21(f)
From April 29, 2005, (commencement of
operations) through October 31, 2005
Class A................................ -- (0.21) 0.09 10.09 3.06(f)
Class B................................ -- (0.19) 0.08 10.08 2.66(f)
Class C................................ -- (0.19) 0.08 10.08 2.67(f)
Class Y................................ -- (0.23) 0.08 10.08 3.10(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD EQUITY INCOME FUND
For the Year Ended October 31, 2006
Class A................................ $ 529,664 1.30% 1.00% 2.02% 24%
Class B................................ 43,198 2.14 1.84 1.19 --
Class C................................ 61,572 2.01 1.71 1.33 --
Class Y................................ 7,593 0.88 0.58 2.26 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 106 1.37(e) 0.80(e) 1.32(e) --
For the Year Ended October 31, 2005
Class A................................ 379,604 1.34 0.51 2.41 23
Class B................................ 33,989 2.18 1.38 1.53 --
Class C................................ 53,435 2.03 1.23 1.70 --
Class Y................................ 784 0.91 0.11 2.79 --
For the Year Ended October 31, 2004
Class A................................ 211,826 1.40 0.56 2.26 22
Class B................................ 18,438 2.20 1.37 1.46 --
Class C................................ 44,043 2.02 1.19 1.64 --
Class Y................................ 375 0.91 0.11 2.73 --
From inception August 28, 2003, through
October 31, 2003
Class A................................ 26,649 1.53(e) 0.73(e) 1.81(e) 1
Class B................................ 2,421 2.27(e) 1.47(e) 1.10(e) --
Class C................................ 7,639 2.15(e) 1.35(e) 1.23(e) --
Class Y................................ 104 0.93(e) 0.13(e) 2.17(e) --
THE HARTFORD FLOATING RATE FUND
For the Year Ended October 31, 2006
Class A................................ 1,500,394 0.98 0.50 6.71 33
Class B................................ 42,182 1.83 1.35 5.84 --
Class C................................ 828,910 1.77 1.28 5.93 --
Class Y................................ 50,896 0.65 0.15 6.89 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 61,805 0.74(e) 0.43(e) 7.99(e) --
From April 29, 2005, (commencement of
operations) through October 31, 2005
Class A................................ 169,485 1.03(e) 0.29(e) 5.68(e) 15
Class B................................ 5,659 1.89(e) 1.04(e) 4.91(e) --
Class C................................ 92,710 1.79(e) 1.02(e) 5.03(e) --
Class Y................................ 10,062 0.73(e) 0.01(e) 6.06(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
340
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD FOCUS FUND
For the Year Ended October 31, 2006
Class A................................ $10.26 $ 0.02 $ 0.81 $ 0.83 $(0.07) $ --
Class B................................ 9.94 (0.06) 0.78 0.72 -- --
Class C................................ 9.94 (0.07) 0.80 0.73 -- --
Class Y................................ 10.44 0.04 0.85 0.89 (0.11) --
For the Year Ended October 31, 2005
Class A................................ 9.14 0.08 1.04 1.12 -- --
Class B................................ 8.92 (0.01) 1.03 1.02 -- --
Class C................................ 8.92 (0.01) 1.03 1.02 -- --
Class Y................................ 9.28 0.13 1.06 1.19 (0.03) --
For the Year Ended October 31, 2004
Class A................................ 8.94 (0.02) 0.22 0.20 -- --
Class B................................ 8.79 (0.10) 0.23 0.13 -- --
Class C................................ 8.78 (0.09) 0.23 0.14 -- --
Class Y................................ 9.04 0.03 0.21 0.24 -- --
For the Year Ended October 31, 2003
Class A................................ 7.32 (0.02) 1.64 1.62 -- --
Class B................................ 7.25 (0.08) 1.62 1.54 -- --
Class C................................ 7.24 (0.08) 1.62 1.54 -- --
Class Y................................ 7.37 0.01 1.66 1.67 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 8.82 (0.05) (1.45) (1.50) -- --
Class B................................ 8.79 (0.12) (1.42) (1.54) -- --
Class C................................ 8.79 (0.12) (1.43) (1.55) -- --
Class Y................................ 8.83 -- (1.46) (1.46) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END OF TOTAL
CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD FOCUS FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.07) $ 0.76 $11.02 8.07%
Class B................................ -- -- 0.72 10.66 7.24
Class C................................ -- -- 0.73 10.67 7.34
Class Y................................ -- (0.11) 0.78 11.22 8.57
For the Year Ended October 31, 2005
Class A................................ -- -- 1.12 10.26 12.31
Class B................................ -- -- 1.02 9.94 11.44
Class C................................ -- -- 1.02 9.94 11.44
Class Y................................ -- (0.03) 1.16 10.44 12.86
For the Year Ended October 31, 2004
Class A................................ -- -- 0.20 9.14 2.24(i)
Class B................................ -- -- 0.13 8.92 1.48(i)
Class C................................ -- -- 0.14 8.92 1.59(i)
Class Y................................ -- -- 0.24 9.28 2.65
For the Year Ended October 31, 2003
Class A................................ -- -- 1.62 8.94 22.13
Class B................................ -- -- 1.54 8.79 21.24
Class C................................ -- -- 1.54 8.78 21.27
Class Y................................ -- -- 1.67 9.04 22.66
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (1.50) 7.32 (17.01)
Class B................................ -- -- (1.54) 7.25 (17.52)
Class C................................ -- -- (1.55) 7.24 (17.63)
Class Y................................ -- -- (1.46) 7.37 (16.54)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD FOCUS FUND
For the Year Ended October 31, 2006
Class A................................ $40,215 1.68% 1.50% 0.14% 123%
Class B................................ 13,162 2.47 2.25 (0.61) --
Class C................................ 13,065 2.39 2.25 (0.61) --
Class Y................................ 487 1.18 1.07 0.56 --
For the Year Ended October 31, 2005
Class A................................ 50,067 1.65 1.60(i) 0.68 112
Class B................................ 15,156 2.45 2.35(i) (0.09) --
Class C................................ 16,737 2.36 2.35(i) (0.05) --
Class Y................................ 473 1.16 1.16(i) 1.27 --
For the Year Ended October 31, 2004
Class A................................ 67,212 1.62 1.62(i) (0.25) 104
Class B................................ 18,610 2.36 2.35(i) (0.98) --
Class C................................ 23,901 2.28 2.28(i) (0.91) --
Class Y................................ 815 1.11 1.11(i) 0.27 --
For the Year Ended October 31, 2003
Class A................................ 70,002 1.76 1.65 (0.29) 138
Class B................................ 21,058 2.49 2.35 (1.00) --
Class C................................ 27,158 2.36 2.35 (0.99) --
Class Y................................ 719 1.17 1.17 0.17 --
For the Year Ended October 31, 2002(h)
Class A................................ 66,432 1.76 1.65 (0.53) 215
Class B................................ 18,862 2.43 2.35 (1.23) --
Class C................................ 25,847 2.34 2.34 (1.22) --
Class Y................................ 509 1.14 1.14 0.09 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
(i) Without the inclusion of the Payment from Affiliate, the total return 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
Class A and B and $0.01 for Class C.
The accompanying notes are an integral part of these financial statements.
341
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GLOBAL COMMUNICATIONS FUND
For the Year Ended October 31, 2006
Class A................................ $7.12 $ 0.15 $ 0.88 $ 1.03 $(0.10) $ --
Class B................................ 6.92 0.09 0.87 0.96 (0.07) --
Class C................................ 6.91 0.06 0.88 0.94 (0.05) --
Class Y................................ 7.27 0.17 0.92 1.09 (0.13) --
For the Year Ended October 31, 2005
Class A................................ 5.48 0.09 1.60 1.69 (0.05) --
Class B................................ 5.34 0.05 1.55 1.60 (0.02) --
Class C................................ 5.33 0.05 1.55 1.60 (0.02) --
Class Y................................ 5.60 0.02 1.73 1.75 (0.08) --
For the Year Ended October 31, 2004(h)
Class A................................ 4.67 0.06 0.75 0.81 -- --
Class B................................ 4.58 0.02 0.74 0.76 -- --
Class C................................ 4.57 0.02 0.74 0.76 -- --
Class Y................................ 4.74 0.09 0.77 0.86 -- --
For the Year Ended October 31, 2003
Class A................................ 3.24 (0.01) 1.44 1.43 -- --
Class B................................ 3.19 (0.03) 1.42 1.39 -- --
Class C................................ 3.19 (0.03) 1.41 1.38 -- --
Class Y................................ 3.26 0.01 1.47 1.48 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 4.57 -- (1.33) (1.33) -- --
Class B................................ 4.54 (0.04) (1.31) (1.35) -- --
Class C................................ 4.54 (0.04) (1.31) (1.35) -- --
Class Y................................ 4.60 -- (1.34) (1.34) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GLOBAL COMMUNICATIONS FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.10) $ 0.93 $8.05 14.60%
Class B................................ -- (0.07) 0.89 7.81 13.93
Class C................................ -- (0.05) 0.89 7.80 13.74
Class Y................................ -- (0.13) 0.96 8.23 15.14
For the Year Ended October 31, 2005
Class A................................ -- (0.05) 1.64 7.12 31.01
Class B................................ -- (0.02) 1.58 6.92 29.92
Class C................................ -- (0.02) 1.58 6.91 29.97
Class Y................................ -- (0.08) 1.67 7.27 31.36
For the Year Ended October 31, 2004(h)
Class A................................ -- -- 0.81 5.48 17.34
Class B................................ -- -- 0.76 5.34 16.59
Class C................................ -- -- 0.76 5.33 16.63
Class Y................................ -- -- 0.86 5.60 18.14
For the Year Ended October 31, 2003
Class A................................ -- -- 1.43 4.67 44.14
Class B................................ -- -- 1.39 4.58 43.57
Class C................................ -- -- 1.38 4.57 43.26
Class Y................................ -- -- 1.48 4.74 45.40
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (1.33) 3.24 (29.10)
Class B................................ -- -- (1.35) 3.19 (29.74)
Class C................................ -- -- (1.35) 3.19 (29.74)
Class Y................................ -- -- (1.34) 3.26 (29.13)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GLOBAL COMMUNICATIONS FUND
For the Year Ended October 31, 2006
Class A................................ $17,091 1.89% 1.15% 1.83% 104%
Class B................................ 4,124 2.87 1.78 1.18 --
Class C................................ 5,321 2.74 1.90 1.01 --
Class Y................................ 992 1.41 0.75 2.09 --
For the Year Ended October 31, 2005
Class A................................ 15,986 2.01 1.51 1.75 45
Class B................................ 2,815 3.22 2.26 1.02 --
Class C................................ 2,765 2.94 2.25 1.08 --
Class Y................................ 638 1.36 1.06 2.10 --
For the Year Ended October 31, 2004(h)
Class A................................ 8,929 1.93 1.65 1.08 85
Class B................................ 1,482 3.32 2.35 0.37 --
Class C................................ 1,306 2.97 2.35 0.43 --
Class Y................................ 170 1.30 1.20 1.69 --
For the Year Ended October 31, 2003
Class A................................ 6,419 1.95 1.65 (0.08) 100
Class B................................ 1,555 2.68 2.35 (0.79) --
Class C................................ 1,305 2.55 2.35 (0.77) --
Class Y................................ 724 1.35 1.20 0.38 --
For the Year Ended October 31, 2002(h)
Class A................................ 3,506 2.03 1.65 (0.10) 84
Class B................................ 846 2.70 2.35 (0.80) --
Class C................................ 736 2.57 2.35 (0.78) --
Class Y................................ 481 1.27 1.20 0.40 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
342
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GLOBAL FINANCIAL SERVICES
FUND
For the Year Ended October 31, 2006
Class A................................ $11.60 $ 0.12 $ 2.40 $ 2.52 $(0.11) $ --
Class B................................ 11.39 0.08 2.31 2.39 (0.04) --
Class C................................ 11.39 0.05 2.32 2.37 (0.03) --
Class Y................................ 11.73 0.19 2.40 2.59 (0.16) --
For the Year Ended October 31, 2005
Class A................................ 10.44 0.11 1.18 1.29 (0.13) --
Class B................................ 10.26 0.01 1.18 1.19 (0.06) --
Class C................................ 10.26 0.02 1.17 1.19 (0.06) --
Class Y................................ 10.55 0.12 1.24 1.36 (0.18) --
For the Year Ended October 31, 2004(h)
Class A................................ 9.71 0.12 0.69 0.81 (0.08) --
Class B................................ 9.55 0.05 0.69 0.74 (0.03) --
Class C................................ 9.55 0.05 0.69 0.74 (0.03) --
Class Y................................ 9.79 0.17 0.71 0.88 (0.12) --
For the Year Ended October 31, 2003
Class A................................ 8.03 0.07 1.65 1.72 (0.04) --
Class B................................ 7.92 0.02 1.61 1.63 -- --
Class C................................ 7.92 0.02 1.61 1.63 -- --
Class Y................................ 8.10 0.13 1.64 1.77 (0.08) --
For the Year Ended October 31, 2002(h)
Class A................................ 9.37 0.04 (1.38) (1.34) -- --
Class B................................ 9.30 (0.02) (1.36) (1.38) -- --
Class C................................ 9.30 (0.02) (1.36) (1.38) -- --
Class Y................................ 9.41 0.08 (1.39) (1.31) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GLOBAL FINANCIAL SERVICES
FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.11) $ 2.41 $14.01 21.87%
Class B................................ -- (0.04) 2.35 13.74 21.06
Class C................................ -- (0.03) 2.34 13.73 20.88
Class Y................................ -- (0.16) 2.43 14.16 22.24
For the Year Ended October 31, 2005
Class A................................ -- (0.13) 1.16 11.60 12.39
Class B................................ -- (0.06) 1.13 11.39 11.58
Class C................................ -- (0.06) 1.13 11.39 11.58
Class Y................................ -- (0.18) 1.18 11.73 12.91
For the Year Ended October 31, 2004(h)
Class A................................ -- (0.08) 0.73 10.44 8.42
Class B................................ -- (0.03) 0.71 10.26 7.71
Class C................................ -- (0.03) 0.71 10.26 7.71
Class Y................................ -- (0.12) 0.76 10.55 9.06
For the Year Ended October 31, 2003
Class A................................ -- (0.04) 1.68 9.71 21.48
Class B................................ -- -- 1.63 9.55 20.58
Class C................................ -- -- 1.63 9.55 20.58
Class Y................................ -- (0.08) 1.69 9.79 22.01
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (1.34) 8.03 (14.30)
Class B................................ -- -- (1.38) 7.92 (14.84)
Class C................................ -- -- (1.38) 7.92 (14.84)
Class Y................................ -- -- (1.31) 8.10 (13.92)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GLOBAL FINANCIAL SERVICES
FUND
For the Year Ended October 31, 2006
Class A................................ $21,369 1.80% 1.15% 1.11% 52%
Class B................................ 3,828 2.81 1.78 0.49 --
Class C................................ 4,082 2.65 1.90 0.35 --
Class Y................................ 942 1.34 0.75 1.52 --
For the Year Ended October 31, 2005
Class A................................ 13,958 1.88 1.51 0.91 33
Class B................................ 3,147 2.91 2.28 0.15 --
Class C................................ 2,769 2.77 2.27 0.16 --
Class Y................................ 773 1.36 1.09 1.30 --
For the Year Ended October 31, 2004(h)
Class A................................ 12,910 1.78 1.65 1.17 85
Class B................................ 3,043 2.80 2.35 0.44 --
Class C................................ 2,459 2.68 2.35 0.44 --
Class Y................................ 642 1.27 1.20 1.54 --
For the Year Ended October 31, 2003
Class A................................ 12,652 1.90 1.65 0.93 93
Class B................................ 3,681 2.62 2.35 0.22 --
Class C................................ 3,197 2.50 2.35 0.23 --
Class Y................................ 1,580 1.31 1.20 1.38 --
For the Year Ended October 31, 2002(h)
Class A................................ 9,739 1.98 1.65 0.51 76
Class B................................ 2,755 2.68 2.35 (0.20) --
Class C................................ 2,548 2.54 2.35 (0.20) --
Class Y................................ 1,435 1.25 1.20 0.96 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
343
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GLOBAL HEALTH FUND
For the Year Ended October 31, 2006
Class A................................ $16.50 $(0.07) $ 2.41 $ 2.34 $ -- $(1.00)
Class B................................ 15.81 (0.20) 2.31 2.11 -- (1.00)
Class C................................ 15.81 (0.18) 2.30 2.12 -- (1.00)
Class Y................................ 17.05 (0.01) 2.53 2.52 -- (1.00)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 17.34 -- 0.52 0.52 -- --
For the Year Ended October 31, 2005
Class A................................ 15.00 (0.08) 2.35 2.27 -- (0.77)
Class B................................ 14.50 (0.20) 2.28 2.08 -- (0.77)
Class C................................ 14.51 (0.19) 2.26 2.07 -- (0.77)
Class Y................................ 15.41 (0.01) 2.42 2.41 -- (0.77)
For the Year Ended October 31, 2004
Class A................................ 13.80 (0.10) 1.36 1.26 -- (0.06)
Class B................................ 13.43 (0.20) 1.33 1.13 -- (0.06)
Class C................................ 13.44 (0.20) 1.33 1.13 -- (0.06)
Class Y................................ 14.09 (0.02) 1.40 1.38 -- (0.06)
For the Year Ended October 31, 2003
Class A................................ 11.42 (0.07) 2.75 2.68 -- (0.30)
Class B................................ 11.20 (0.15) 2.68 2.53 -- (0.30)
Class C................................ 11.21 (0.15) 2.68 2.53 -- (0.30)
Class Y................................ 11.61 (0.02) 2.80 2.78 -- (0.30)
For the Year Ended October 31, 2002(h)
Class A................................ 13.47 (0.09) (1.68) (1.77) -- (0.28)
Class B................................ 13.31 (0.18) (1.65) (1.83) -- (0.28)
Class C................................ 13.32 (0.18) (1.65) (1.83) -- (0.28)
Class Y................................ 13.58 (0.02) (1.67) (1.69) -- (0.28)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END OF TOTAL
CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GLOBAL HEALTH FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(1.00) $ 1.34 $17.84 14.96%
Class B................................ -- (1.00) 1.11 16.92 14.10
Class C................................ -- (1.00) 1.12 16.93 14.17
Class Y................................ -- (1.00) 1.52 18.57 15.56
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.52 17.86 3.00(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.77) 1.50 16.50 15.67
Class B................................ -- (0.77) 1.31 15.81 14.86
Class C................................ -- (0.77) 1.30 15.81 14.78
Class Y................................ -- (0.77) 1.64 17.05 16.19
For the Year Ended October 31, 2004
Class A................................ -- (0.06) 1.20 15.00 9.21
Class B................................ -- (0.06) 1.07 14.50 8.49
Class C................................ -- (0.06) 1.07 14.51 8.49
Class Y................................ -- (0.06) 1.32 15.41 9.88
For the Year Ended October 31, 2003
Class A................................ -- (0.30) 2.38 13.80 24.02
Class B................................ -- (0.30) 2.23 13.43 23.13
Class C................................ -- (0.30) 2.23 13.44 23.11
Class Y................................ -- (0.30) 2.48 14.09 24.50
For the Year Ended October 31, 2002(h)
Class A................................ -- (0.28) (2.05) 11.42 (13.43)
Class B................................ -- (0.28) (2.11) 11.20 (14.05)
Class C................................ -- (0.28) (2.11) 11.21 (14.08)
Class Y................................ -- (0.28) (1.97) 11.61 (12.68)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GLOBAL HEALTH FUND
For the Year Ended October 31, 2006
Class A................................ $370,285 1.61% 1.60% (0.53)% 30%
Class B................................ 80,574 2.45 2.32 (1.27) --
Class C................................ 97,956 2.31 2.31 (1.25) --
Class Y................................ 192,814 1.08 1.08 (0.03) --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 785 1.26(e) 1.15(e) (0.20)(e) --
For the Year Ended October 31, 2005
Class A................................ 209,835 1.71 1.60 (0.55) 50
Class B................................ 71,204 2.52 2.35 (1.30) --
Class C................................ 72,546 2.36 2.35 (1.30) --
Class Y................................ 169,698 1.08 1.08 (0.12) --
For the Year Ended October 31, 2004
Class A................................ 170,672 1.81 1.65 (0.68) 41
Class B................................ 66,035 2.55 2.35 (1.38) --
Class C................................ 61,390 2.37 2.35 (1.38) --
Class Y................................ 1,299 1.12 1.12 (0.14) --
For the Year Ended October 31, 2003
Class A................................ 126,630 1.76 1.65 (0.62) 37
Class B................................ 56,378 2.49 2.35 (1.31) --
Class C................................ 51,606 2.36 2.35 (1.31) --
Class Y................................ 1,095 1.19 1.19 (0.15) --
For the Year Ended October 31, 2002(h)
Class A................................ 101,881 1.79 1.65 (0.70) 63
Class B................................ 45,659 2.48 2.35 (1.40) --
Class C................................ 43,042 2.35 2.35 (1.40) --
Class Y................................ 881 1.17 1.17 (0.22) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
344
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GLOBAL LEADERS FUND
For the Year Ended October 31, 2006(h)
Class A................................ $16.80 $(0.05) $ 2.81 $ 2.76 $(0.02) $(0.19)
Class B................................ 15.93 (0.17) 2.66 2.49 -- (0.19)
Class C................................ 16.01 (0.17) 2.66 2.49 -- (0.19)
Class Y................................ 17.46 0.06 2.91 2.97 (0.10) (0.19)
For the Year Ended October 31, 2005
Class A................................ 16.49 0.08 0.23 0.31 -- --
Class B................................ 15.77 (0.08) 0.24 0.16 -- --
Class C................................ 15.84 (0.06) 0.23 0.17 -- --
Class Y................................ 17.06 0.13 0.27 0.40 -- --
For the Year Ended October 31, 2004
Class A................................ 13.96 (0.06) 2.59 2.53 -- --
Class B................................ 13.45 (0.17) 2.49 2.32 -- --
Class C................................ 13.49 (0.15) 2.50 2.35 -- --
Class Y................................ 14.34 0.03 2.69 2.72 -- --
For the Year Ended October 31, 2003
Class A................................ 11.21 (0.03) 2.78 2.75 -- --
Class B................................ 10.88 (0.12) 2.69 2.57 -- --
Class C................................ 10.90 (0.11) 2.70 2.59 -- --
Class Y................................ 11.45 0.03 2.86 2.89 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 12.83 0.02 (1.64) (1.62) -- --
Class B................................ 12.54 (0.07) (1.59) (1.66) -- --
Class C................................ 12.55 (0.06) (1.59) (1.65) -- --
Class Y................................ 13.03 0.05 (1.63) (1.58) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END OF TOTAL
CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GLOBAL LEADERS FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(0.21) $ 2.55 $19.35 16.58%
Class B................................ -- (0.19) 2.30 18.23 15.80
Class C................................ -- (0.19) 2.30 18.31 15.72
Class Y................................ -- (0.29) 2.68 20.14 17.25
For the Year Ended October 31, 2005
Class A................................ -- -- 0.31 16.80 1.88
Class B................................ -- -- 0.16 15.93 1.02
Class C................................ -- -- 0.17 16.01 1.07
Class Y................................ -- -- 0.40 17.46 2.34
For the Year Ended October 31, 2004
Class A................................ -- -- 2.53 16.49 18.12
Class B................................ -- -- 2.32 15.77 17.25
Class C................................ -- -- 2.35 15.84 17.42
Class Y................................ -- -- 2.72 17.06 18.97
For the Year Ended October 31, 2003
Class A................................ -- -- 2.75 13.96 24.53
Class B................................ -- -- 2.57 13.45 23.62
Class C................................ -- -- 2.59 13.49 23.76
Class Y................................ -- -- 2.89 14.34 25.24
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (1.62) 11.21 (12.63)
Class B................................ -- -- (1.66) 10.88 (13.24)
Class C................................ -- -- (1.65) 10.90 (13.15)
Class Y................................ -- -- (1.58) 11.45 (12.13)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GLOBAL LEADERS FUND
For the Year Ended October 31, 2006(h)
Class A................................ $417,840 1.53% 1.48% (0.25)% 125%
Class B................................ 74,805 2.44 2.18 (0.95) --
Class C................................ 66,121 2.20 2.20 (0.98) --
Class Y................................ 169,270 0.93 0.93 0.31 --
For the Year Ended October 31, 2005
Class A................................ 419,648 1.58 1.48 0.41 270
Class B................................ 78,986 2.51 2.35 (0.45) --
Class C................................ 71,623 2.25 2.25 (0.34) --
Class Y................................ 83,896 0.97 0.97 0.87 --
For the Year Ended October 31, 2004
Class A................................ 466,013 1.62 1.62 (0.36) 271
Class B................................ 90,179 2.52 2.35 (1.09) --
Class C................................ 87,518 2.24 2.24 (0.98) --
Class Y................................ 58,791 0.93 0.93 0.31 --
For the Year Ended October 31, 2003
Class A................................ 464,610 1.62 1.61 (0.29) 320
Class B................................ 78,923 2.36 2.35 (1.01) --
Class C................................ 78,303 2.23 2.23 (0.89) --
Class Y................................ 19,043 1.00 1.00 0.28 --
For the Year Ended October 31, 2002(h)
Class A................................ 354,407 1.66 1.61 0.24 323
Class B................................ 70,280 2.33 2.33 (0.48) --
Class C................................ 75,174 2.21 2.21 (0.36) --
Class Y................................ 6,167 1.00 1.00 0.84 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
345
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GLOBAL TECHNOLOGY FUND
For the Year Ended October 31, 2006
Class A................................ $ 4.97 $(0.04) $ 0.74 $ 0.70 $ -- $ --
Class B................................ 4.77 (0.08) 0.72 0.64 -- --
Class C................................ 4.77 (0.09) 0.72 0.63 -- --
Class Y................................ 5.09 (0.03) 0.76 0.73 -- --
For the Year Ended October 31, 2005
Class A................................ 4.42 -- 0.55 0.55 -- --
Class B................................ 4.28 (0.04) 0.53 0.49 -- --
Class C................................ 4.28 (0.04) 0.53 0.49 -- --
Class Y................................ 4.51 0.03 0.55 0.58 -- --
For the Year Ended October 31, 2004
Class A................................ 4.68 (0.07) (0.19) (0.26) -- --
Class B................................ 4.56 (0.10) (0.18) (0.28) -- --
Class C................................ 4.56 (0.11) (0.17) (0.28) -- --
Class Y................................ 4.75 (0.04) (0.20) (0.24) -- --
For the Year Ended October 31, 2003
Class A................................ 2.98 (0.04) 1.74 1.70 -- --
Class B................................ 2.92 (0.06) 1.70 1.64 -- --
Class C................................ 2.92 (0.06) 1.70 1.64 -- --
Class Y................................ 3.01 (0.03) 1.77 1.74 -- --
For the Year Ended October 31, 2002(f)
Class A................................ 4.01 (0.12) (0.91) (1.03) -- --
Class B................................ 3.96 (0.18) (0.86) (1.04) -- --
Class C................................ 3.97 (0.19) (0.86) (1.05) -- --
Class Y................................ 4.04 (0.14) (0.89) (1.03) -- --
THE HARTFORD GROWTH ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ 11.27 0.07 1.46 1.53 (0.13) (0.01)
Class B................................ 11.19 0.03 1.42 1.45 (0.06) (0.01)
Class C................................ 11.19 0.03 1.42 1.45 (0.06) (0.01)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 12.16 (0.01) 0.52 0.51 -- --
For the Year Ended October 31, 2005
Class A................................ 10.36 0.05 0.89 0.94 (0.03) --
Class B................................ 10.34 (0.01) 0.87 0.86 (0.01) --
Class C................................ 10.33 (0.01) 0.88 0.87 (0.01) --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 10.00 -- 0.36 0.36 -- --
Class B................................ 10.00 (0.01) 0.35 0.34 -- --
Class C................................ 10.00 (0.01) 0.34 0.33 -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GLOBAL TECHNOLOGY FUND
For the Year Ended October 31, 2006
Class A................................ $-- $ -- $ 0.70 $ 5.67 14.08%
Class B................................ -- -- 0.64 5.41 13.42
Class C................................ -- -- 0.63 5.40 13.21
Class Y................................ -- -- 0.73 5.82 14.34
For the Year Ended October 31, 2005
Class A................................ -- -- 0.55 4.97 12.44
Class B................................ -- -- 0.49 4.77 11.45
Class C................................ -- -- 0.49 4.77 11.45
Class Y................................ -- -- 0.58 5.09 12.86
For the Year Ended October 31, 2004
Class A................................ -- -- (0.26) 4.42 (5.56)
Class B................................ -- -- (0.28) 4.28 (6.14)
Class C................................ -- -- (0.28) 4.28 (6.14)
Class Y................................ -- -- (0.24) 4.51 (5.05)
For the Year Ended October 31, 2003
Class A................................ -- -- 1.70 4.68 57.05
Class B................................ -- -- 1.64 4.56 56.16
Class C................................ -- -- 1.64 4.56 56.16
Class Y................................ -- -- 1.74 4.75 57.81
For the Year Ended October 31, 2002(f)
Class A................................ -- -- (1.03) 2.98 (25.69)
Class B................................ -- -- (1.04) 2.92 (26.26)
Class C................................ -- -- (1.05) 2.92 (26.45)
Class Y................................ -- -- (1.03) 3.01 (25.50)
THE HARTFORD GROWTH ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ -- (0.14) 1.39 12.66 13.64
Class B................................ -- (0.07) 1.38 12.57 12.96
Class C................................ -- (0.07) 1.38 12.57 12.96
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.51 12.67 4.19(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.03) 0.91 11.27 9.12
Class B................................ -- (0.01) 0.85 11.19 8.37
Class C................................ -- (0.01) 0.86 11.19 8.47
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ -- -- 0.36 10.36 3.60(f)
Class B................................ -- -- 0.34 10.34 3.40(f)
Class C................................ -- -- 0.33 10.33 3.30(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GLOBAL TECHNOLOGY FUND
For the Year Ended October 31, 2006
Class A................................ $ 33,424 2.10% 1.36% (0.78)% 144%
Class B................................ 12,729 2.96 1.99 (1.41) --
Class C................................ 11,521 2.71 2.24 (1.67) --
Class Y................................ 1,137 1.26 1.20 (0.62) --
For the Year Ended October 31, 2005
Class A................................ 27,620 2.22 1.60 -- 132
Class B................................ 12,409 3.05 2.35 (0.79) --
Class C................................ 10,712 2.75 2.35 (0.65) --
Class Y................................ 938 1.22 1.20 0.58 --
For the Year Ended October 31, 2004
Class A................................ 31,418 2.14 1.65 (1.37) 165
Class B................................ 12,978 2.96 2.35 (2.07) --
Class C................................ 13,891 2.62 2.35 (2.07) --
Class Y................................ 1,186 1.15 1.15 (0.85) --
For the Year Ended October 31, 2003
Class A................................ 32,388 1.77 1.65 (1.28) 163
Class B................................ 13,991 2.50 2.35 (1.98) --
Class C................................ 16,513 2.37 2.35 (1.99) --
Class Y................................ 886 1.18 1.18 (0.82) --
For the Year Ended October 31, 2002(f)
Class A................................ 18,321 1.86 1.65 (1.44) 174
Class B................................ 8,170 2.54 2.35 (2.14) --
Class C................................ 9,560 2.39 2.35 (2.15) --
Class Y................................ 512 1.15 1.15 (0.97) --
THE HARTFORD GROWTH ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ 370,088 0.69 0.67 0.49 13
Class B................................ 107,818 1.51 1.32 (0.15) --
Class C................................ 181,434 1.44 1.32 (0.16) --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 10 0.66(e) 0.42(e) 0.16(e) --
For the Year Ended October 31, 2005
Class A................................ 205,331 0.72 0.64 0.42 1
Class B................................ 65,739 1.53 1.29 (0.23) --
Class C................................ 100,339 1.47 1.29 (0.23) --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 43,279 0.72(e) 0.63(e) 0.13(e) --
Class B................................ 14,177 1.52(e) 1.28(e) (0.53)(e) --
Class C................................ 21,221 1.44(e) 1.28(e) (0.52)(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
The accompanying notes are an integral part of these financial statements.
346
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GROWTH FUND
For the Year Ended October 31, 2006
Class A................................ $17.32 $(0.07) $ 1.20 $ 1.13 $ -- $ --
Class B................................ 15.38 (0.20) 1.07 0.87 -- --
Class C................................ 15.40 (0.18) 1.07 0.89 -- --
Class H................................ 15.53 (0.16) 1.09 0.93 -- --
Class L................................ 17.50 (0.02) 1.21 1.19 -- --
Class M................................ 15.51 (0.16) 1.09 0.93 -- --
Class N................................ 15.51 (0.15) 1.08 0.93 -- --
Class Y................................ 17.65 0.01 1.23 1.24 -- --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 17.64 -- 0.82 0.82 -- --
For the Year Ended October 31, 2005
Class A................................ 16.19 (0.04) 1.17 1.13 -- --
Class B................................ 14.49 (0.15) 1.04 0.89 -- --
Class C................................ 14.50 (0.13) 1.03 0.90 -- --
Class H................................ 14.59 (0.12) 1.06 0.94 -- --
Class L................................ 16.32 0.01 1.17 1.18 -- --
Class M................................ 14.57 (0.11) 1.05 0.94 -- --
Class N................................ 14.57 (0.11) 1.05 0.94 -- --
Class Y................................ 16.42 0.01 1.22 1.23 -- --
For the Year Ended October 31, 2004
Class A................................ 15.19 (0.08) 1.08 1.00 -- --
Class B................................ 13.70 (0.15) 0.94 0.79 -- --
Class C................................ 13.70 (0.12) 0.92 0.80 -- --
Class H................................ 13.74 (0.20) 1.05 0.85 -- --
Class L................................ 15.26 (0.08) 1.14 1.06 -- --
Class M................................ 13.72 (0.19) 1.04 0.85 -- --
Class N................................ 13.72 (0.19) 1.04 0.85 -- --
Class Y................................ 15.31 -- 1.11 1.11 -- --
For the Year Ended October 31, 2003
Class A................................ 11.90 (0.03) 3.32 3.29 -- --
Class B................................ 10.80 (0.07) 2.97 2.90 -- --
Class C................................ 10.80 (0.07) 2.97 2.90 -- --
Class H................................ 10.81 (0.14) 3.07 2.93 -- --
Class L................................ 11.91 (0.05) 3.40 3.35 -- --
Class M................................ 10.80 (0.14) 3.06 2.92 -- --
Class N................................ 10.80 (0.14) 3.06 2.92 -- --
Class Y................................ 11.94 (0.03) 3.40 3.37 -- --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 14.57 (0.02) (2.65) (2.67) -- --
Class B................................ 13.28 (0.04) (2.44) (2.48) -- --
Class C................................ 13.28 (0.04) (2.44) (2.48) -- --
Class Y................................ 14.57 -- (2.63) (2.63) -- --
For the Year Ended October 31, 2002
Class H................................ 13.02 (0.23) (1.98) (2.21) -- --
Class L................................ 14.23 (0.03) (2.29) (2.32) -- --
Class M................................ 13.00 (0.16) (2.04) (2.20) -- --
Class N................................ 13.00 (0.26) (1.94) (2.20) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GROWTH FUND
For the Year Ended October 31, 2006
Class A................................ $-- $ -- $ 1.13 $18.45 6.52%
Class B................................ -- -- 0.87 16.25 5.66
Class C................................ -- -- 0.89 16.29 5.78
Class H................................ -- -- 0.93 16.46 5.99
Class L................................ -- -- 1.19 18.69 6.80
Class M................................ -- -- 0.93 16.44 6.00
Class N................................ -- -- 0.93 16.44 6.00
Class Y................................ -- -- 1.24 18.89 7.03
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.82 18.46 4.65(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 1.13 17.32 6.98
Class B................................ -- -- 0.89 15.38 6.14
Class C................................ -- -- 0.90 15.40 6.21
Class H................................ -- -- 0.94 15.53 6.44
Class L................................ -- -- 1.18 17.50 7.23
Class M................................ -- -- 0.94 15.51 6.45
Class N................................ -- -- 0.94 15.51 6.45
Class Y................................ -- -- 1.23 17.65 7.49
For the Year Ended October 31, 2004
Class A................................ -- -- 1.00 16.19 6.58
Class B................................ -- -- 0.79 14.49 5.77
Class C................................ -- -- 0.80 14.50 5.84
Class H................................ -- -- 0.85 14.59 6.19
Class L................................ -- -- 1.06 16.32 6.95
Class M................................ -- -- 0.85 14.57 6.20
Class N................................ -- -- 0.85 14.57 6.20
Class Y................................ -- -- 1.11 16.42 7.25
For the Year Ended October 31, 2003
Class A................................ -- -- 3.29 15.19 27.65
Class B................................ -- -- 2.90 13.70 26.85
Class C................................ -- -- 2.90 13.70 26.85
Class H................................ -- -- 2.93 13.74 27.10
Class L................................ -- -- 3.35 15.26 28.13
Class M................................ -- -- 2.92 13.72 27.04
Class N................................ -- -- 2.92 13.72 27.04
Class Y................................ -- -- 3.37 15.31 28.22
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- -- (2.67) 11.90 (18.33)(f)
Class B................................ -- -- (2.48) 10.80 (18.67)(f)
Class C................................ -- -- (2.48) 10.80 (18.68)(f)
Class Y................................ -- -- (2.63) 11.94 (18.05)(f)
For the Year Ended October 31, 2002
Class H................................ -- -- (2.21) 10.81 (16.95)
Class L................................ -- -- (2.32) 11.91 (16.28)
Class M................................ -- -- (2.20) 10.80 (16.90)
Class N................................ -- -- (2.20) 10.80 (16.90)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GROWTH FUND
For the Year Ended October 31, 2006
Class A................................ $707,000 1.34% 1.33% (0.38)% 92%
Class B................................ 44,064 2.22 2.09 (1.14) --
Class C................................ 85,469 2.02 2.02 (1.07) --
Class H................................ 15,267 1.80 1.80 (0.84) --
Class L................................ 274,890 1.05 1.05 (0.10) --
Class M................................ 15,988 1.80 1.80 (0.84) --
Class N................................ 3,827 1.80 1.80 (0.85) --
Class Y................................ 130,594 0.83 0.83 0.08 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 1,961 0.96(e) 0.96(e) (0.52)(e) --
For the Year Ended October 31, 2005
Class A................................ 635,057 1.40 1.33 (0.30) 77
Class B................................ 46,251 2.27 2.15 (1.09) --
Class C................................ 82,481 2.05 2.05 (1.01) --
Class H................................ 19,852 1.81 1.81 (0.68) --
Class L................................ 295,731 1.06 1.06 0.05 --
Class M................................ 19,133 1.81 1.81 (0.69) --
Class N................................ 4,377 1.81 1.81 (0.71) --
Class Y................................ 52,992 0.85 0.85 0.10 --
For the Year Ended October 31, 2004
Class A................................ 384,160 1.55 1.45 (0.84) 66
Class B................................ 32,440 2.33 2.15 (1.54) --
Class C................................ 47,575 2.07 2.07 (1.45) --
Class H................................ 23,527 1.83 1.83 (1.23) --
Class L................................ 310,084 1.08 1.08 (0.48) --
Class M................................ 21,522 1.83 1.83 (1.23) --
Class N................................ 4,356 1.83 1.83 (1.23) --
Class Y................................ 11,926 0.87 0.87 (0.18) --
For the Year Ended October 31, 2003
Class A................................ 72,186 1.52 1.45 (0.65) 129
Class B................................ 11,552 2.26 2.12 (1.35) --
Class C................................ 11,896 2.15 2.15 (1.36) --
Class H................................ 27,032 1.90 1.90 (1.09) --
Class L................................ 316,451 1.15 1.15 (0.34) --
Class M................................ 23,523 1.90 1.90 (1.09) --
Class N................................ 4,499 1.90 1.90 (1.09) --
Class Y................................ 1 0.96 0.96 (0.17) --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 5,970 1.65(e) 1.45(e) (0.44)(e) 107
Class B................................ 1,698 2.32(e) 2.15(e) (1.10)(e) --
Class C................................ 1,480 2.18(e) 2.15(e) (1.13)(e) --
Class Y................................ 1 0.90(e) 0.90(e) (0.01)(e) --
For the Year Ended October 31, 2002
Class H................................ 26,002 1.89 1.89 (1.03) 107
Class L................................ 274,683 1.14 1.14 (0.28) --
Class M................................ 21,478 1.89 1.89 (1.03) --
Class N................................ 4,340 1.89 1.89 (1.03) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
347
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD GROWTH OPPORTUNITIES FUND
For the Year Ended October 31, 2006
Class A................................ $27.84 $(0.07) $ 3.59 $ 3.52 $ -- $(2.03)
Class B................................ 24.42 (0.25) 3.09 2.84 -- (2.03)
Class C................................ 24.42 (0.23) 3.08 2.85 -- (2.03)
Class H................................ 24.67 (0.26) 3.19 2.93 -- (2.03)
Class L................................ 28.17 (0.06) 3.65 3.59 -- (2.03)
Class M................................ 24.63 (0.25) 3.18 2.93 -- (2.03)
Class N................................ 24.63 (0.25) 3.18 2.93 -- (2.03)
Class Y................................ 28.37 0.02 3.68 3.70 -- (2.03)
Class Z................................ 29.37 0.02 3.82 3.84 -- (2.03)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 27.95 (0.01) 1.40 1.39 -- --
For the Year Ended October 31, 2005
Class A................................ 23.49 (0.06) 4.41 4.35 -- --
Class B................................ 20.77 (0.25) 3.90 3.65 -- --
Class C................................ 20.77 (0.25) 3.90 3.65 -- --
Class H................................ 20.92 (0.25) 4.00 3.75 -- --
Class L................................ 23.71 (0.06) 4.52 4.46 -- --
Class M................................ 20.89 (0.24) 3.98 3.74 -- --
Class N................................ 20.89 (0.24) 3.98 3.74 -- --
Class Y................................ 23.82 -- 4.55 4.55 -- --
Class Z................................ 24.66 0.01 4.70 4.71 -- --
For the Year Ended October 31, 2004
Class A................................ 21.25 (0.17) 2.41 2.24 -- --
Class B................................ 18.91 (0.26) 2.12 1.86 -- --
Class C................................ 18.91 (0.28) 2.14 1.86 -- --
Class H................................ 18.99 (0.31) 2.24 1.93 -- --
Class L................................ 21.36 (0.14) 2.49 2.35 -- --
Class M................................ 18.97 (0.30) 2.22 1.92 -- --
Class N................................ 18.97 (0.28) 2.20 1.92 -- --
Class Y................................ 21.42 (0.01) 2.41 2.40 -- --
Class Z................................ 22.17 (0.08) 2.57 2.49 -- --
For the Year Ended October 31, 2003
Class A................................ 15.31 (0.07) 6.01 5.94 -- --
Class B................................ 13.71 (0.12) 5.32 5.20 -- --
Class C................................ 13.70 (0.09) 5.30 5.21 -- --
Class H................................ 13.73 (0.22) 5.48 5.26 -- --
Class L................................ 15.33 (0.10) 6.13 6.03 -- --
Class M................................ 13.71 (0.22) 5.48 5.26 -- --
Class N................................ 13.71 (0.22) 5.48 5.26 -- --
Class Y................................ 15.35 (0.07) 6.14 6.07 -- --
Class Z................................ 15.87 (0.06) 6.36 6.30 -- --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 19.80 (0.06) (4.43) (4.49) -- --
Class B................................ 17.80 (0.10) (3.99) (4.09) -- --
Class C................................ 17.80 (0.09) (4.01) (4.10) -- --
Class Y................................ 19.80 (0.06) (4.39) (4.45) -- --
For the Year Ended October 31, 2002
Class H................................ 17.36 (0.32) (3.10) (3.42) -- (0.21)
Class L................................ 19.21 (0.13) (3.54) (3.67) -- (0.21)
Class M................................ 17.33 (0.28) (3.13) (3.41) -- (0.21)
Class N................................ 17.34 (0.34) (3.08) (3.42) -- (0.21)
Class Z................................ 19.77 0.72 (4.41) (3.69) -- (0.21)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD GROWTH OPPORTUNITIES FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(2.03) $ 1.49 $29.33 13.35%
Class B................................ -- (2.03) 0.81 25.23 12.36
Class C................................ -- (2.03) 0.82 25.24 12.40
Class H................................ -- (2.03) 0.90 25.57 12.62
Class L................................ -- (2.03) 1.56 29.73 13.45
Class M................................ -- (2.03) 0.90 25.53 12.64
Class N................................ -- (2.03) 0.90 25.53 12.64
Class Y................................ -- (2.03) 1.67 30.04 13.76
Class Z................................ -- (2.03) 1.81 31.18 13.77
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 1.39 29.34 4.97(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 4.35 27.84 18.52
Class B................................ -- -- 3.65 24.42 17.57
Class C................................ -- -- 3.65 24.42 17.57
Class H................................ -- -- 3.75 24.67 17.92
Class L................................ -- -- 4.46 28.17 18.81
Class M................................ -- -- 3.74 24.63 17.90
Class N................................ -- -- 3.74 24.63 17.90
Class Y................................ -- -- 4.55 28.37 19.10
Class Z................................ -- -- 4.71 29.37 19.10
For the Year Ended October 31, 2004
Class A................................ -- -- 2.24 23.49 10.54
Class B................................ -- -- 1.86 20.77 9.84
Class C................................ -- -- 1.86 20.77 9.84
Class H................................ -- -- 1.93 20.92 10.16
Class L................................ -- -- 2.35 23.71 11.00
Class M................................ -- -- 1.92 20.89 10.12
Class N................................ -- -- 1.92 20.89 10.12
Class Y................................ -- -- 2.40 23.82 11.20
Class Z................................ -- -- 2.49 24.66 11.23
For the Year Ended October 31, 2003
Class A................................ -- -- 5.94 21.25 38.80
Class B................................ -- -- 5.20 18.91 37.93
Class C................................ -- -- 5.21 18.91 38.03
Class H................................ -- -- 5.26 18.99 38.31
Class L................................ -- -- 6.03 21.36 39.34
Class M................................ -- -- 5.26 18.97 38.36
Class N................................ -- -- 5.26 18.97 38.36
Class Y................................ -- -- 6.07 21.42 39.54
Class Z................................ -- -- 6.30 22.17 39.70
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- -- (4.49) 15.31 (22.68)(f)
Class B................................ -- -- (4.09) 13.71 (22.99)(f)
Class C................................ -- -- (4.10) 13.70 (23.05)(f)
Class Y................................ -- -- (4.45) 15.35 (22.47)(f)
For the Year Ended October 31, 2002
Class H................................ -- (0.21) (3.63) 13.73 (19.99)
Class L................................ -- (0.21) (3.88) 15.33 (19.36)
Class M................................ -- (0.21) (3.62) 13.71 (19.97)
Class N................................ -- (0.21) (3.63) 13.71 (20.01)
Class Z................................ -- (0.21) (3.90) 15.87 (18.90)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD GROWTH OPPORTUNITIES FUND
For the Year Ended October 31, 2006
Class A................................ $420,220 1.60% 1.20% (0.31)% 131%
Class B................................ 33,670 2.26 2.08 (1.18) --
Class C................................ 47,366 2.09 2.07 (1.17) --
Class H................................ 33,610 1.82 1.82 (0.93) --
Class L................................ 570,541 1.07 1.07 (0.18) --
Class M................................ 21,110 1.82 1.82 (0.93) --
Class N................................ 5,304 1.82 1.82 (0.93) --
Class Y................................ 73,685 0.85 0.83 0.08 --
Class Z................................ 35,785 0.82 0.82 0.07 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 74 1.15(e) 1.11(e) (0.43)(e) --
For the Year Ended October 31, 2005
Class A................................ 222,682 1.54 1.36 (0.45) 156
Class B................................ 20,002 2.39 2.15 (1.27) --
Class C................................ 18,842 2.13 2.13 (1.26) --
Class H................................ 37,499 1.84 1.84 (0.97) --
Class L................................ 556,462 1.09 1.09 (0.22) --
Class M................................ 22,299 1.84 1.84 (0.97) --
Class N................................ 5,297 1.84 1.84 (0.97) --
Class Y................................ 28,441 0.88 0.88 -- --
Class Z................................ 34,088 0.84 0.84 0.02 --
For the Year Ended October 31, 2004
Class A................................ 54,652 1.52 1.45 (0.94) 130
Class B................................ 11,518 2.45 2.14 (1.64) --
Class C................................ 11,899 2.11 2.11 (1.61) --
Class H................................ 39,300 1.83 1.83 (1.33) --
Class L................................ 518,009 1.08 1.08 (0.58) --
Class M................................ 22,404 1.83 1.83 (1.33) --
Class N................................ 4,955 1.83 1.83 (1.33) --
Class Y................................ 4,792 0.82 0.82 (0.33) --
Class Z................................ 33,195 0.83 0.83 (0.33) --
For the Year Ended October 31, 2003
Class A................................ 17,149 1.49 1.45 (0.88) 158
Class B................................ 4,470 2.22 2.15 (1.58) --
Class C................................ 5,238 2.10 2.10 (1.54) --
Class H................................ 45,121 1.85 1.85 (1.31) --
Class L................................ 517,892 1.10 1.10 (0.56) --
Class M................................ 24,361 1.85 1.85 (1.31) --
Class N................................ 4,773 1.85 1.85 (1.31) --
Class Y................................ 1 0.91 0.91 (0.38) --
Class Z................................ 32,485 0.85 0.85 (0.31) --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 3,338 1.62(e) 1.45(e) (0.92)(e) 182
Class B................................ 777 2.30(e) 2.15(e) (1.60)(e) --
Class C................................ 892 2.09(e) 2.09(e) (1.56)(e) --
Class Y................................ 1 0.89(e) 0.89(e) (0.44)(e) --
For the Year Ended October 31, 2002
Class H................................ 39,151 1.85 1.85 (1.42) 182
Class L................................ 412,454 1.10 1.10 (0.67) --
Class M................................ 20,163 1.85 1.85 (1.42) --
Class N................................ 4,172 1.85 1.85 (1.42) --
Class Z................................ 26,842 0.84 0.84 (0.43) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
348
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October 31, 2006
Class A................................ $ 7.76 $0.54 $ 0.18 $ 0.72 $(0.55) $ --
Class B................................ 7.74 0.48 0.19 0.67 (0.49) --
Class C................................ 7.75 0.49 0.17 0.66 (0.49) --
Class Y................................ 7.75 0.58 0.17 0.75 (0.58) --
For the Year Ended October 31, 2005
Class A................................ 8.18 0.48 (0.40) 0.08 (0.50) --
Class B................................ 8.17 0.42 (0.41) 0.01 (0.44) --
Class C................................ 8.17 0.42 (0.39) 0.03 (0.45) --
Class Y................................ 8.17 0.52 (0.40) 0.12 (0.54) --
For the Year Ended October 31, 2004(h)
Class A................................ 7.94 0.48 0.23 0.71 (0.47) --
Class B................................ 7.93 0.43 0.22 0.65 (0.41) --
Class C................................ 7.93 0.44 0.22 0.66 (0.42) --
Class Y................................ 7.94 0.39 0.36 0.75 (0.52) --
For the Year Ended October 31, 2003(h)
Class A................................ 6.73 0.60 1.26 1.86 (0.65) --
Class B................................ 6.72 0.57 1.24 1.81 (0.60) --
Class C................................ 6.72 0.55 1.26 1.81 (0.60) --
Class Y................................ 6.73 0.65 1.24 1.89 (0.68) --
For the Year Ended October 31, 2002(h)
Class A................................ 8.45 0.82 (1.78) (0.96) (0.76) --
Class B................................ 8.43 0.80 (1.81) (1.01) (0.70) --
Class C................................ 8.43 0.72 (1.73) (1.01) (0.70) --
Class Y................................ 8.48 0.34 (1.30) (0.96) (0.79) --
THE HARTFORD INCOME ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ 9.89 0.42 0.03 0.45 (0.43) (0.02)
Class B................................ 9.88 0.35 0.03 0.38 (0.36) (0.02)
Class C................................ 9.88 0.35 0.03 0.38 (0.36) (0.02)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 9.84 0.06 0.05 0.11 (0.06) --
For the Year Ended October 31, 2005
Class A................................ 10.15 0.36 (0.26) 0.10 (0.36) --
Class B................................ 10.14 0.29 (0.26) 0.03 (0.29) --
Class C................................ 10.14 0.30 (0.27) 0.03 (0.29) --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 10.00 0.09 0.15 0.24 (0.09) --
Class B................................ 10.00 0.07 0.14 0.21 (0.07) --
Class C................................ 10.00 0.07 0.14 0.21 (0.07) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.55) $ 0.17 $ 7.93 9.57%
Class B................................ -- (0.49) 0.18 7.92 8.90
Class C................................ -- (0.49) 0.17 7.92 8.84
Class Y................................ -- (0.58) 0.17 7.92 10.11
For the Year Ended October 31, 2005
Class A................................ -- (0.50) (0.42) 7.76 0.97
Class B................................ -- (0.44) (0.43) 7.74 0.08
Class C................................ -- (0.45) (0.42) 7.75 0.30
Class Y................................ -- (0.54) (0.42) 7.75 1.43
For the Year Ended October 31, 2004(h)
Class A................................ -- (0.47) 0.24 8.18 9.26(i)
Class B................................ -- (0.41) 0.24 8.17 8.45(i)
Class C................................ -- (0.42) 0.24 8.17 8.54(i)
Class Y................................ -- (0.52) 0.23 8.17 9.72
For the Year Ended October 31, 2003(h)
Class A................................ -- (0.65) 1.21 7.94 28.69
Class B................................ -- (0.60) 1.21 7.93 27.83
Class C................................ -- (0.60) 1.21 7.93 27.84
Class Y................................ -- (0.68) 1.21 7.94 29.27
For the Year Ended October 31, 2002(h)
Class A................................ -- (0.76) (1.72) 6.73 (12.16)
Class B................................ -- (0.70) (1.71) 6.72 (12.70)
Class C................................ -- (0.70) (1.71) 6.72 (12.65)
Class Y................................ -- (0.79) (1.75) 6.73 (12.01)
THE HARTFORD INCOME ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ -- (0.45) -- 9.89 4.64
Class B................................ -- (0.38) -- 9.88 3.91
Class C................................ -- (0.38) -- 9.88 3.91
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- (0.06) 0.05 9.89 1.17(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.36) (0.26) 9.89 1.01
Class B................................ -- (0.29) (0.26) 9.88 0.29
Class C................................ -- (0.29) (0.26) 9.88 0.30
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ -- (0.09) 0.15 10.15 2.42(f)
Class B................................ -- (0.07) 0.14 10.14 2.08(f)
Class C................................ -- (0.07) 0.14 10.14 2.08(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October 31, 2006
Class A................................ $190,479 1.36% 1.20% 6.87% 147%
Class B................................ 37,189 2.17 1.95 6.10 --
Class C................................ 39,991 2.04 1.89 6.15 --
Class Y................................ 24,374 0.88 0.73 7.33 --
For the Year Ended October 31, 2005
Class A................................ 188,599 1.33 1.33(h) 5.86 113
Class B................................ 47,071 2.12 2.10(h) 5.09 --
Class C................................ 50,945 2.00 2.00(h) 5.18 --
Class Y................................ 25,974 0.87 0.87(h) 6.40 --
For the Year Ended October 31, 2004(h)
Class A................................ 247,364 1.35 1.35 6.03 86
Class B................................ 63,972 2.07 2.07 5.32 --
Class C................................ 71,673 1.98 1.98 5.40 --
Class Y................................ 16,410 0.84 0.84 6.13 --
For the Year Ended October 31, 2003(h)
Class A................................ 213,377 1.49 1.40 7.98 54
Class B................................ 72,293 2.23 2.10 7.39 --
Class C................................ 77,968 2.10 2.10 7.31 --
Class Y................................ 1 1.69 0.95 8.70 --
For the Year Ended October 31, 2002(h)
Class A................................ 95,760 1.55 1.40 9.48 22
Class B................................ 44,359 2.24 2.10 8.78 --
Class C................................ 40,611 2.10 2.10 8.78 --
Class Y................................ 1 0.84 0.84 10.04 --
THE HARTFORD INCOME ALLOCATION FUND(G)
For the Year Ended October 31, 2006
Class A................................ 25,383 0.80 0.61 4.32 38
Class B................................ 5,516 1.59 1.31 3.56 --
Class C................................ 8,042 1.53 1.31 3.53 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 10 0.90(e) 0.37(e) 4.27(e) --
For the Year Ended October 31, 2005
Class A................................ 19,445 0.76 0.56 3.75 30
Class B................................ 4,778 1.56 1.26 3.09 --
Class C................................ 7,711 1.51 1.26 3.04 --
From May 28, 2004, (commencement of
operations) through October 31, 2004
Class A................................ 10,539 0.73(e) 0.56(e) 3.21(e) 3
Class B................................ 1,690 1.63(e) 1.26(e) 2.56(e) --
Class C................................ 4,880 1.48(e) 1.26(e) 2.59(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
(i) Without the inclusion of the Payment from Affiliate, the total return would
have been 9.25%, 8.45% and 8.44% for Classes A, B and C, respectively. The
net asset impact of the Payment from Affiliate was less than $0.01 for
Classes A and B and $0.01 for Class C.
The accompanying notes are an integral part of these financial statements.
349
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD INCOME FUND
For the Year Ended October 31, 2006
Class A................................ $10.24 $0.54 $ 0.08 $ 0.62 $(0.53) $ --
Class B................................ 10.24 0.46 0.08 0.54 (0.45) --
Class C................................ 10.26 0.46 0.08 0.54 (0.45) --
Class Y................................ 10.24 0.56 0.08 0.64 (0.56) --
For the Year Ended October 31, 2005
Class A................................ 10.72 0.51 (0.44) 0.07 (0.51) (0.04)
Class B................................ 10.72 0.43 (0.43) -- (0.44) (0.04)
Class C................................ 10.74 0.43 (0.43) -- (0.44) (0.04)
Class Y................................ 10.72 0.52 (0.42) 0.10 (0.54) (0.04)
For the Year Ended October 31, 2004
Class A................................ 10.53 0.48 0.22 0.70 (0.51) --
Class B................................ 10.53 0.42 0.21 0.63 (0.44) --
Class C................................ 10.55 0.41 0.22 0.63 (0.44) --
From inception November 28, 2003,
through October 31, 2004
Class Y................................ 10.54 0.48 0.20 0.68 (0.50) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 10.00 0.52 0.54 1.06 (0.53) --
Class B................................ 10.00 0.44 0.54 0.98 (0.45) --
Class C................................ 10.00 0.44 0.56 1.00 (0.45) --
THE HARTFORD INFLATION PLUS FUND
For the Year Ended October 31, 2006
Class A................................ 10.67 0.49 (0.26) 0.23 (0.43) (0.03)
Class B................................ 10.68 0.40 (0.25) 0.15 (0.35) (0.03)
Class C................................ 10.67 0.40 (0.25) 0.15 (0.35) (0.03)
Class Y................................ 10.68 0.51 (0.25) 0.26 (0.46) (0.03)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 10.48 0.05 (0.05) -- (0.04) --
For the Year Ended October 31, 2005
Class A................................ 10.95 0.41 (0.18) 0.23 (0.42) (0.09)
Class B................................ 10.96 0.33 (0.18) 0.15 (0.34) (0.09)
Class C................................ 10.96 0.33 (0.19) 0.14 (0.34) (0.09)
Class Y................................ 10.97 0.47 (0.22) 0.25 (0.45) (0.09)
For the Year Ended October 31, 2004
Class A................................ 10.63 0.30 0.37 0.67 (0.31) (0.04)
Class B................................ 10.64 0.22 0.37 0.59 (0.23) (0.04)
Class C................................ 10.63 0.23 0.37 0.60 (0.23) (0.04)
From inception November 28, 2003,
through October 31, 2004
Class Y................................ 10.57 0.28 0.44 0.72 (0.32) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 10.00 0.27 0.62 0.89 (0.26) --
Class B................................ 10.00 0.21 0.63 0.84 (0.20) --
Class C................................ 10.00 0.20 0.63 0.83 (0.20) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD INCOME FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.53) $ 0.09 $10.33 6.24%
Class B................................ -- (0.45) 0.09 10.33 5.45
Class C................................ -- (0.45) 0.09 10.35 5.44
Class Y................................ -- (0.56) 0.08 10.32 6.41
For the Year Ended October 31, 2005
Class A................................ -- (0.55) (0.48) 10.24 0.70
Class B................................ -- (0.48) (0.48) 10.24 (0.04)
Class C................................ -- (0.48) (0.48) 10.26 (0.03)
Class Y................................ -- (0.58) (0.48) 10.24 0.98
For the Year Ended October 31, 2004
Class A................................ -- (0.51) 0.19 10.72 6.85
Class B................................ -- (0.44) 0.19 10.72 6.10
Class C................................ -- (0.44) 0.19 10.74 6.09
From inception November 28, 2003,
through October 31, 2004
Class Y................................ -- (0.50) 0.18 10.72 6.57(f)
From inception October 31, 2002,
through October 31, 2003
Class A................................ -- (0.53) 0.53 10.53 10.79(f)
Class B................................ -- (0.45) 0.53 10.53 10.01(f)
Class C................................ -- (0.45) 0.55 10.55 10.22(f)
THE HARTFORD INFLATION PLUS FUND
For the Year Ended October 31, 2006
Class A................................ -- (0.46) (0.23) 10.44 2.29
Class B................................ -- (0.38) (0.23) 10.45 1.51
Class C................................ -- (0.38) (0.23) 10.44 1.51
Class Y................................ -- (0.49) (0.23) 10.45 2.58
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- (0.04) (0.04) 10.44 0.04(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.51) (0.28) 10.67 2.10
Class B................................ -- (0.43) (0.28) 10.68 1.33
Class C................................ -- (0.43) (0.29) 10.67 1.24
Class Y................................ -- (0.54) (0.29) 10.68 2.29
For the Year Ended October 31, 2004
Class A................................ -- (0.35) 0.32 10.95 6.39
Class B................................ -- (0.27) 0.32 10.96 5.65
Class C................................ -- (0.27) 0.33 10.96 5.74
From inception November 28, 2003,
through October 31, 2004
Class Y................................ -- (0.32) 0.40 10.97 6.89(f)
From inception October 31, 2002,
through October 31, 2003
Class A................................ -- (0.26) 0.63 10.63 9.02(f)
Class B................................ -- (0.20) 0.64 10.64 8.41(f)
Class C................................ -- (0.20) 0.63 10.63 8.31(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD INCOME FUND
For the Year Ended October 31, 2006
Class A................................ $ 37,168 1.21% 0.95% 5.35% 147%
Class B................................ 7,224 2.06 1.70 4.60 --
Class C................................ 8,101 1.96 1.70 4.61 --
Class Y................................ 60,690 0.78 0.70 5.63 --
For the Year Ended October 31, 2005
Class A................................ 28,942 1.20 0.95 4.80 188
Class B................................ 5,973 2.06 1.70 4.05 --
Class C................................ 5,142 1.96 1.70 4.05 --
Class Y................................ 16,431 0.79 0.70 5.16 --
For the Year Ended October 31, 2004
Class A................................ 29,580 1.14 1.00 4.60 167
Class B................................ 5,541 1.95 1.70 3.90 --
Class C................................ 5,562 1.88 1.70 3.90 --
From inception November 28, 2003,
through October 31, 2004
Class Y................................ 10 0.73(e) 0.70(e) 4.89(e) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 15,836 1.54(e) 1.00(e) 5.06(e) 124
Class B................................ 4,705 2.31(e) 1.70(e) 4.31(e) --
Class C................................ 5,050 2.17(e) 1.70(e) 4.28(e) --
THE HARTFORD INFLATION PLUS FUND
For the Year Ended October 31, 2006
Class A................................ 282,362 1.02 0.95 4.50 193
Class B................................ 92,340 1.82 1.70 3.76 --
Class C................................ 247,091 1.78 1.70 3.72 --
Class Y................................ 140,796 0.68 0.68 5.05 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 18 0.98(e) 0.70(e) 4.43(e) --
For the Year Ended October 31, 2005
Class A................................ 414,778 1.00 0.95 3.88 71
Class B................................ 119,302 1.81 1.70 3.09 --
Class C................................ 373,750 1.76 1.70 3.12 --
Class Y................................ 95,947 0.68 0.68 4.42 --
For the Year Ended October 31, 2004
Class A................................ 313,961 1.04 1.00 3.04 81
Class B................................ 107,964 1.81 1.70 2.21 --
Class C................................ 319,990 1.76 1.70 2.33 --
From inception November 28, 2003,
through October 31, 2004
Class Y................................ 23,045 0.65(e) 0.65(e) 1.55(e) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 142,992 1.34(e) 1.00(e) 2.63(e) 23
Class B................................ 67,986 2.09(e) 1.70(e) 1.98(e) --
Class C................................ 160,253 1.95(e) 1.70(e) 1.97(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
350
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD INTERNATIONAL CAPITAL
APPRECIATION FUND
For the Year Ended October 31, 2006(h)
Class A................................ $12.14 $ 0.02 $ 2.96 $ 2.98 $(0.05) $(0.14)
Class B................................ 11.77 (0.08) 2.87 2.79 -- (0.14)
Class C................................ 11.77 (0.09) 2.88 2.79 -- (0.14)
Class Y................................ 12.33 0.06 3.02 3.08 (0.10) (0.14)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 14.34 (0.02) 0.62 0.60 -- --
For the Year Ended October 31, 2005
Class A................................ 11.59 0.07 0.48 0.55 -- --
Class B................................ 11.32 (0.01) 0.46 0.45 -- --
Class C................................ 11.32 (0.01) 0.46 0.45 -- --
Class Y................................ 11.72 0.08 0.53 0.61 -- --
For the Year Ended October 31, 2004(h)
Class A................................ 9.62 (0.01) 2.03 2.02 -- (0.05)
Class B................................ 9.46 (0.08) 1.99 1.91 -- (0.05)
Class C................................ 9.46 (0.08) 1.99 1.91 -- (0.05)
Class Y................................ 9.69 (0.01) 2.09 2.08 -- (0.05)
For the Year Ended October 31, 2003
Class A................................ 6.93 (0.02) 2.72 2.70 (0.01) --
Class B................................ 6.86 (0.04) 2.64 2.60 -- --
Class C................................ 6.86 (0.04) 2.64 2.60 -- --
Class Y................................ 6.98 0.01 2.74 2.75 (0.04) --
For the Year Ended October 31, 2002(h)
Class A................................ 7.62 0.02 (0.71) (0.69) -- --
Class B................................ 7.59 (0.03) (0.70) (0.73) -- --
Class C................................ 7.59 (0.03) (0.70) (0.73) -- --
Class Y................................ 7.63 0.07 (0.72) (0.65) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD INTERNATIONAL CAPITAL
APPRECIATION FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(0.19) $ 2.79 $14.93 24.85%
Class B................................ -- (0.14) 2.65 14.42 23.95
Class C................................ -- (0.14) 2.65 14.42 23.95
Class Y................................ -- (0.24) 2.84 15.17 25.38
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.60 14.94 4.18(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 0.55 12.14 4.74
Class B................................ -- -- 0.45 11.77 3.98
Class C................................ -- -- 0.45 11.77 3.98
Class Y................................ -- -- 0.61 12.33 5.20
For the Year Ended October 31, 2004(h)
Class A................................ -- (0.05) 1.97 11.59 21.14
Class B................................ -- (0.05) 1.86 11.32 20.33
Class C................................ -- (0.05) 1.86 11.32 20.33
Class Y................................ -- (0.05) 2.03 11.72 21.61
For the Year Ended October 31, 2003
Class A................................ -- (0.01) 2.69 9.62 38.95
Class B................................ -- -- 2.60 9.46 37.90
Class C................................ -- -- 2.60 9.46 37.90
Class Y................................ -- (0.04) 2.71 9.69 39.57
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (0.69) 6.93 (9.06)
Class B................................ -- -- (0.73) 6.86 (9.62)
Class C................................ -- -- (0.73) 6.86 (9.62)
Class Y................................ -- -- (0.65) 6.98 (8.52)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
----------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD INTERNATIONAL CAPITAL
APPRECIATION FUND
For the Year Ended October 31, 2006(h)
Class A................................ $213,186 1.70% 1.60% 0.12% 165%
Class B................................ 33,252 2.56 2.30 (0.59) --
Class C................................ 43,336 2.40 2.35 (0.65) --
Class Y................................ 70,777 1.16 1.16 0.42 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 10 1.53(e) 1.35(e) (0.49)(e) --
For the Year Ended October 31, 2005
Class A................................ 131,430 1.77 1.60 0.66 183
Class B................................ 22,304 2.66 2.35 (0.09) --
Class C................................ 29,486 2.49 2.35 (0.07) --
Class Y................................ 74,651 1.22 1.20 0.98 --
For the Year Ended October 31, 2004(h)
Class A................................ 50,051 1.91 1.65 (0.10) 200
Class B................................ 8,968 2.83 2.35 (0.80) --
Class C................................ 12,906 2.63 2.35 (0.79) --
Class Y................................ 28,775 1.31 1.20 (0.09) --
For the Year Ended October 31, 2003
Class A................................ 11,362 2.36 1.65 (0.35) 281
Class B................................ 2,148 3.08 2.35 (1.04) --
Class C................................ 2,285 2.95 2.35 (1.01) --
Class Y................................ 292 1.80 1.20 0.16 --
For the Year Ended October 31, 2002(h)
Class A................................ 4,666 2.98 1.65 0.34 330
Class B................................ 813 3.69 2.35 (0.42) --
Class C................................ 826 3.55 2.35 (0.34) --
Class Y................................ 209 2.19 1.20 0.79 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
351
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD INTERNATIONAL OPPORTUNITIES
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $13.13 $ 0.13 $ 2.92 $ 3.05 $(0.05) $ --
Class B................................ 12.35 0.03 2.76 2.79 -- --
Class C................................ 12.27 0.01 2.73 2.74 -- --
Class Y................................ 13.55 0.25 2.98 3.23 (0.11) --
For the Year Ended October 31, 2005
Class A................................ 11.22 0.05 1.86 1.91 -- --
Class B................................ 10.64 (0.04) 1.75 1.71 -- --
Class C................................ 10.57 (0.04) 1.74 1.70 -- --
Class Y................................ 11.53 0.12 1.90 2.02 -- --
For the Year Ended October 31, 2004
Class A................................ 9.66 0.03 1.54 1.57 (0.01) --
Class B................................ 9.22 (0.05) 1.47 1.42 -- --
Class C................................ 9.16 (0.05) 1.46 1.41 -- --
Class Y................................ 9.91 0.11 1.56 1.67 (0.05) --
For the Year Ended October 31, 2003
Class A................................ 8.03 0.02 1.61 1.63 -- --
Class B................................ 7.71 (0.04) 1.55 1.51 -- --
Class C................................ 7.67 (0.04) 1.53 1.49 -- --
Class Y................................ 8.19 0.06 1.66 1.72 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 9.33 0.03 (1.33) (1.30) -- --
Class B................................ 9.04 (0.08) (1.25) (1.33) -- --
Class C................................ 8.99 (0.05) (1.27) (1.32) -- --
Class Y................................ 9.49 0.02 (1.32) (1.30) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD INTERNATIONAL OPPORTUNITIES
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(0.05) $ 3.00 $16.13 23.25%
Class B................................ -- -- 2.79 15.14 22.59
Class C................................ -- -- 2.74 15.01 22.33
Class Y................................ -- (0.11) 3.12 16.67 24.00
For the Year Ended October 31, 2005
Class A................................ -- -- 1.91 13.13 17.02
Class B................................ -- -- 1.71 12.35 16.07
Class C................................ -- -- 1.70 12.27 16.08
Class Y................................ -- -- 2.02 13.55 17.52
For the Year Ended October 31, 2004
Class A................................ -- (0.01) 1.56 11.22 16.20
Class B................................ -- -- 1.42 10.64 15.40
Class C................................ -- -- 1.41 10.57 15.39
Class Y................................ -- (0.05) 1.62 11.53 16.87
For the Year Ended October 31, 2003
Class A................................ -- -- 1.63 9.66 20.30
Class B................................ -- -- 1.51 9.22 19.58
Class C................................ -- -- 1.49 9.16 19.43
Class Y................................ -- -- 1.72 9.91 21.00
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (1.30) 8.03 (13.93)
Class B................................ -- -- (1.33) 7.71 (14.71)
Class C................................ -- -- (1.32) 7.67 (14.68)
Class Y................................ -- -- (1.30) 8.19 (13.70)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD INTERNATIONAL OPPORTUNITIES
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $159,087 1.61% 1.57% 0.84% 102%
Class B................................ 29,125 2.56 2.15 0.24 --
Class C................................ 20,782 2.33 2.33 0.06 --
Class Y................................ 43,994 1.02 1.02 1.56 --
For the Year Ended October 31, 2005
Class A................................ 102,393 1.72 1.57 0.42 119
Class B................................ 23,940 2.68 2.35 (0.36) --
Class C................................ 16,896 2.42 2.35 (0.37) --
Class Y................................ 5,612 1.05 1.05 0.94 --
For the Year Ended October 31, 2004
Class A................................ 87,348 1.83 1.65 0.33 143
Class B................................ 23,301 2.77 2.35 (0.39) --
Class C................................ 15,749 2.48 2.35 (0.38) --
Class Y................................ 4,288 1.09 1.08 0.82 --
For the Year Ended October 31, 2003
Class A................................ 69,153 1.72 1.65 0.25 138
Class B................................ 20,459 2.45 2.35 (0.46) --
Class C................................ 14,790 2.35 2.35 (0.45) --
Class Y................................ 6,058 1.13 1.13 0.77 --
For the Year Ended October 31, 2002(h)
Class A................................ 66,775 1.82 1.65 0.34 175
Class B................................ 18,668 2.50 2.35 (0.79) --
Class C................................ 13,438 2.40 2.35 (0.64) --
Class Y................................ 4,543 1.13 1.13 0.31 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
352
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD INTERNATIONAL SMALL COMPANY
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $14.27 $ 0.08 $ 3.62 $ 3.70 $(0.25) $(1.53)
Class B................................ 13.91 (0.01) 3.51 3.50 (0.16) (1.53)
Class C................................ 13.78 (0.03) 3.48 3.45 (0.15) (1.53)
Class Y................................ 14.41 0.15 3.64 3.79 (0.30) (1.53)
For the Year Ended October 31, 2005
Class A................................ 13.44 0.06 2.25 2.31 -- (1.48)
Class B................................ 13.23 -- 2.16 2.16 -- (1.48)
Class C................................ 13.12 (0.01) 2.15 2.14 -- (1.48)
Class Y................................ 13.54 0.12 2.27 2.39 (0.04) (1.48)
For the Year Ended October 31, 2004
Class A................................ 12.93 0.07 1.31 1.38 -- (0.87)
Class B................................ 12.82 0.02 1.26 1.28 -- (0.87)
Class C................................ 12.72 0.03 1.24 1.27 -- (0.87)
Class Y................................ 13.02 0.14 1.30 1.44 (0.05) (0.87)
For the Year Ended October 31, 2003(h)
Class A................................ 8.37 0.07 4.51 4.58 (0.02) --
Class B................................ 8.34 0.01 4.47 4.48 -- --
Class C................................ 8.28 0.01 4.43 4.44 -- --
Class Y................................ 8.43 0.09 4.56 4.65 (0.06) --
For the Year Ended October 31, 2002(h)
Class A................................ 8.82 0.03 (0.48) (0.45) -- --
Class B................................ 8.81 (0.02) (0.45) (0.47) -- --
Class C................................ 8.78 (0.03) (0.47) (0.50) -- --
Class Y................................ 8.84 0.09 (0.50) (0.41) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD INTERNATIONAL SMALL COMPANY
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(1.78) $ 1.92 $16.19 29.36%
Class B................................ -- (1.69) 1.81 15.72 28.51
Class C................................ -- (1.68) 1.77 15.55 28.35
Class Y................................ -- (1.83) 1.96 16.37 29.89
For the Year Ended October 31, 2005
Class A................................ -- (1.48) 0.83 14.27 18.90
Class B................................ -- (1.48) 0.68 13.91 17.96
Class C................................ -- (1.48) 0.66 13.78 17.96
Class Y................................ -- (1.52) 0.87 14.41 19.40
For the Year Ended October 31, 2004
Class A................................ -- (0.87) 0.51 13.44 11.39
Class B................................ -- (0.87) 0.41 13.23 10.62
Class C................................ -- (0.87) 0.40 13.12 10.63
Class Y................................ -- (0.92) 0.52 13.54 11.80
For the Year Ended October 31, 2003(h)
Class A................................ -- (0.02) 4.56 12.93 54.76
Class B................................ -- -- 4.48 12.82 53.72
Class C................................ -- -- 4.44 12.72 53.62
Class Y................................ -- (0.06) 4.59 13.02 55.47
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (0.45) 8.37 (5.10)
Class B................................ -- -- (0.47) 8.34 (5.34)
Class C................................ -- -- (0.50) 8.28 (5.70)
Class Y................................ -- -- (0.41) 8.43 (4.64)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD INTERNATIONAL SMALL COMPANY
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $69,998 1.74% 1.60% 0.56% 107%
Class B................................ 11,960 2.66 2.24 (0.08) --
Class C................................ 18,486 2.43 2.35 (0.22) --
Class Y................................ 86,707 1.20 1.20 0.97 --
For the Year Ended October 31, 2005
Class A................................ 34,896 1.82 1.60 0.71 112
Class B................................ 6,101 2.78 2.35 (0.02) --
Class C................................ 12,614 2.46 2.35 (0.06) --
Class Y................................ 65,828 1.28 1.20 1.13 --
For the Year Ended October 31, 2004
Class A................................ 23,934 1.99 1.65 0.90 119
Class B................................ 3,726 2.89 2.35 0.15 --
Class C................................ 10,072 2.60 2.35 0.27 --
Class Y................................ 42,449 1.41 1.20 1.26 --
For the Year Ended October 31, 2003(h)
Class A................................ 12,320 2.36 1.65 0.72 166
Class B................................ 2,237 3.09 2.35 0.03 --
Class C................................ 3,004 2.96 2.35 (0.03) --
Class Y................................ 25,154 1.64 1.20 0.93 --
For the Year Ended October 31, 2002(h)
Class A................................ 4,598 3.09 1.65 0.44 194
Class B................................ 926 3.81 2.35 (0.26) --
Class C................................ 859 3.53 2.35 (0.26) --
Class Y................................ 969 1.91 1.20 0.89 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
353
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD MIDCAP FUND
For the Year Ended October 31, 2006
Class A................................ $26.32 $(0.03) $ 3.44 $ 3.41 $ -- $(4.42)
Class B................................ 24.77 (0.22) 3.22 3.00 -- (4.42)
Class C................................ 24.86 (0.20) 3.23 3.03 -- (4.42)
Class Y................................ 27.42 0.08 3.60 3.68 -- (4.42)
For the Year Ended October 31, 2005
Class A................................ 22.61 (0.05) 4.24 4.19 -- (0.48)
Class B................................ 21.47 (0.24) 4.02 3.78 -- (0.48)
Class C................................ 21.52 (0.22) 4.04 3.82 -- (0.48)
Class Y................................ 23.43 0.07 4.40 4.47 -- (0.48)
For the Year Ended October 31, 2004
Class A................................ 20.58 (0.09) 2.12 2.03 -- --
Class B................................ 19.68 (0.25) 2.04 1.79 -- --
Class C................................ 19.71 (0.23) 2.04 1.81 -- --
Class Y................................ 21.21 0.02 2.20 2.22 -- --
For the Year Ended October 31, 2003
Class A................................ 15.50 (0.08) 5.16 5.08 -- --
Class B................................ 14.93 (0.20) 4.95 4.75 -- --
Class C................................ 14.94 (0.18) 4.95 4.77 -- --
Class Y................................ 15.88 -- 5.33 5.33 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 16.57 (0.10) (0.97) (1.07) -- --
Class B................................ 16.07 (0.21) (0.93) (1.14) -- --
Class C................................ 16.08 (0.21) (0.93) (1.14) -- --
Class Y................................ 16.89 (0.02) (0.99) (1.01) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD MIDCAP FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(4.42) $(1.01) $25.31 14.84%
Class B................................ -- (4.42) (1.42) 23.35 13.97
Class C................................ -- (4.42) (1.39) 23.47 14.06
Class Y................................ -- (4.42) (0.74) 26.68 15.31
For the Year Ended October 31, 2005
Class A................................ -- (0.48) 3.71 26.32 18.85
Class B................................ -- (0.48) 3.30 24.77 17.92
Class C................................ -- (0.48) 3.34 24.86 18.07
Class Y................................ -- (0.48) 3.99 27.42 19.40
For the Year Ended October 31, 2004
Class A................................ -- -- 2.03 22.61 9.86
Class B................................ -- -- 1.79 21.47 9.10
Class C................................ -- -- 1.81 21.52 9.18
Class Y................................ -- -- 2.22 23.43 10.47
For the Year Ended October 31, 2003
Class A................................ -- -- 5.08 20.58 32.77
Class B................................ -- -- 4.75 19.68 31.82
Class C................................ -- -- 4.77 19.71 31.93
Class Y................................ -- -- 5.33 21.21 33.56
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (1.07) 15.50 (6.46)
Class B................................ -- -- (1.14) 14.93 (7.09)
Class C................................ -- -- (1.14) 14.94 (7.09)
Class Y................................ -- -- (1.01) 15.88 (5.98)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD MIDCAP FUND
For the Year Ended October 31, 2006
Class A................................ $1,837,361 1.27% 1.27% (0.13)% 84%
Class B................................ 449,488 2.04 2.04 (0.90) --
Class C................................ 499,039 1.96 1.96 (0.82) --
Class Y................................ 184,149 0.81 0.81 0.33 --
For the Year Ended October 31, 2005
Class A................................ 1,677,327 1.30 1.30 (0.20) 74
Class B................................ 464,175 2.08 2.08 (0.98) --
Class C................................ 499,502 1.99 1.99 (0.89) --
Class Y................................ 139,273 0.83 0.83 0.26 --
For the Year Ended October 31, 2004
Class A................................ 1,544,968 1.37 1.37 (0.41) 52
Class B................................ 438,658 2.11 2.11 (1.15) --
Class C................................ 484,268 2.02 2.02 (1.06) --
Class Y................................ 104,534 0.85 0.85 0.11 --
For the Year Ended October 31, 2003
Class A................................ 1,413,021 1.50 1.48 (0.58) 70
Class B................................ 424,959 2.23 2.20 (1.30) --
Class C................................ 477,891 2.10 2.10 (1.21) --
Class Y................................ 83,996 0.90 0.90 (0.01) --
For the Year Ended October 31, 2002(h)
Class A................................ 704,238 1.56 1.45 (0.65) 109
Class B................................ 266,650 2.24 2.15 (1.35) --
Class C................................ 275,305 2.12 2.12 (1.31) --
Class Y................................ 27,319 0.92 0.92 (0.08) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
354
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD MIDCAP GROWTH FUND
From July 31, 2006, (commencement
of operations) through October
31, 2006
Class A........................... $10.00 $(0.01) $ 0.64 $ 0.63 $ -- $ --
Class B........................... 10.00 (0.03) 0.64 0.61 -- --
Class C........................... 10.00 (0.02) 0.63 0.61 -- --
Class Y........................... 10.00 -- 0.64 0.64 -- --
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October 31,
2006
Class A........................... 13.29 0.01 2.59 2.60 -- (1.32)
Class B........................... 12.85 (0.10) 2.50 2.40 -- (1.32)
Class C........................... 12.85 (0.10) 2.50 2.40 -- (1.32)
Class Y........................... 13.59 0.08 2.65 2.73 -- (1.32)
For the Year Ended October 31,
2005
Class A........................... 12.89 (0.04) 1.41 1.37 -- (0.97)
Class B........................... 12.59 (0.14) 1.37 1.23 -- (0.97)
Class C........................... 12.59 (0.15) 1.38 1.23 -- (0.97)
Class Y........................... 13.11 0.01 1.44 1.45 -- (0.97)
For the Year Ended October 31,
2004
Class A........................... 11.32 (0.04) 1.61 1.57 -- --
Class B........................... 11.12 (0.13) 1.60 1.47 -- --
Class C........................... 11.13 (0.13) 1.59 1.46 -- --
Class Y........................... 11.46 (0.01) 1.66 1.65 -- --
For the Year Ended October 31,
2003(h)
Class A........................... 8.34 (0.03) 3.01 2.98 -- --
Class B........................... 8.25 (0.09) 2.96 2.87 -- --
Class C........................... 8.25 (0.09) 2.97 2.88 -- --
Class Y........................... 8.39 0.02 3.05 3.07 -- --
For the Year Ended October 31,
2002(h)
Class A........................... 8.48 (0.02) (0.12) (0.14) -- --
Class B........................... 8.46 (0.09) (0.12) (0.21) -- --
Class C........................... 8.46 (0.09) (0.12) (0.21) -- --
Class Y........................... 8.50 0.01 (0.12) (0.11) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD MIDCAP GROWTH FUND
From July 31, 2006, (commencement
of operations) through October
31, 2006
Class A........................... $ -- $ -- $ 0.63 $10.63 6.30%(f)
Class B........................... -- -- 0.61 10.61 6.10(f)
Class C........................... -- -- 0.61 10.61 6.10(f)
Class Y........................... -- -- 0.64 10.64 6.40(f)
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October 31,
2006
Class A........................... -- (1.32) 1.28 14.57 21.37
Class B........................... -- (1.32) 1.08 13.93 20.46
Class C........................... -- (1.32) 1.08 13.93 20.45
Class Y........................... -- (1.32) 1.41 15.00 21.90
For the Year Ended October 31,
2005
Class A........................... -- (0.97) 0.40 13.29 11.31
Class B........................... -- (0.97) 0.26 12.85 10.40
Class C........................... -- (0.97) 0.26 12.85 10.40
Class Y........................... -- (0.97) 0.48 13.59 11.76
For the Year Ended October 31,
2004
Class A........................... -- -- 1.57 12.89 13.87
Class B........................... -- -- 1.47 12.59 13.22
Class C........................... -- -- 1.46 12.59 13.12
Class Y........................... -- -- 1.65 13.11 14.40
For the Year Ended October 31,
2003(h)
Class A........................... -- -- 2.98 11.32 35.73
Class B........................... -- -- 2.87 11.12 34.79
Class C........................... -- -- 2.88 11.13 34.91
Class Y........................... -- -- 3.07 11.46 36.59
For the Year Ended October 31,
2002(h)
Class A........................... -- -- (0.14) 8.34 (1.65)
Class B........................... -- -- (0.21) 8.25 (2.48)
Class C........................... -- -- (0.21) 8.25 (2.48)
Class Y........................... -- -- (0.11) 8.39 (1.29)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD MIDCAP GROWTH FUND
From July 31, 2006, (commencement
of operations) through October
31, 2006
Class A........................... $ 10,334 1.66%(e) 1.20%(e) (0.29)%(e) 112%
Class B........................... 297 2.47(e) 2.05(e) (1.16)(e) --
Class C........................... 357 2.49(e) 2.07(e) (1.20)(e) --
Class Y........................... 106 1.41(e) 0.79(e) 0.12(e) --
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October 31,
2006
Class A........................... 305,002 1.45 1.40 0.06 40
Class B........................... 62,580 2.28 2.15 (0.69) --
Class C........................... 63,302 2.16 2.15 (0.69) --
Class Y........................... 31,100 0.94 0.94 0.48 --
For the Year Ended October 31,
2005
Class A........................... 280,662 1.49 1.40 (0.31) 49
Class B........................... 59,350 2.33 2.15 (1.06) --
Class C........................... 61,194 2.19 2.15 (1.06) --
Class Y........................... 39,965 0.96 0.96 0.13 --
For the Year Ended October 31,
2004
Class A........................... 280,173 1.56 1.45 (0.03) 46
Class B........................... 60,558 2.36 2.15 (1.04) --
Class C........................... 67,132 2.20 2.15 (1.04) --
Class Y........................... 2,474 0.90 0.90 (0.12) --
For the Year Ended October 31,
2003(h)
Class A........................... 155,614 1.60 1.45 (0.35) 56
Class B........................... 42,407 2.33 2.15 (1.05) --
Class C........................... 49,566 2.20 2.15 (1.05) --
Class Y........................... 29 1.03 1.00 0.16 --
For the Year Ended October 31,
2002(h)
Class A........................... 94,532 1.68 1.45 (0.23) 40
Class B........................... 26,556 2.38 2.15 (0.95) --
Class C........................... 32,274 2.27 2.15 (0.96) --
Class Y........................... 252 1.02 1.00 0.23 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
355
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD MONEY MARKET FUND
For the Year Ended October 31,
2006
Class A........................... $ 1.00 $ 0.04 $ -- $0.04 $ (0.04) $ --
Class B........................... 1.00 0.03 -- 0.03 (0.03) --
Class C........................... 1.00 0.03 -- 0.03 (0.03) --
Class Y........................... 1.00 0.04 -- 0.04 (0.04) --
For the Year Ended October 31,
2005
Class A........................... 1.00 0.02 -- 0.02 (0.02) --
Class B........................... 1.00 0.01 -- 0.01 (0.01) --
Class C........................... 1.00 0.01 -- 0.01 (0.01) --
Class Y........................... 1.00 0.02 -- 0.02 (0.02) --
For the Year Ended October 31,
2004
Class A........................... 1.00 0.003 -- 0.00 (0.003) --
Class B........................... 1.00 0.000 -- 0.00 (0.000) --
Class C........................... 1.00 0.000 -- 0.00 (0.000) --
Class Y........................... 1.00 0.007 -- 0.01 (0.007) --
For the Year Ended October 31,
2003
Class A........................... 1.00 0.003 -- 0.00 (0.003) --
Class B........................... 1.00 -- -- -- -- --
Class C........................... 1.00 -- -- -- -- --
Class Y........................... 1.00 0.008 -- 0.01 (0.008) --
For the Year Ended October 31,
2002(h)
Class A........................... 1.00 0.011 -- 0.01 (0.011) --
Class B........................... 1.00 0.004 -- 0.00 (0.004) --
Class C........................... 1.00 0.004 -- 0.00 (0.004) --
Class Y........................... 1.00 0.017 -- 0.02 (0.017) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD MONEY MARKET FUND
For the Year Ended October 31,
2006
Class A........................... $ -- $(0.04) $ -- $1.00 4.00%
Class B........................... -- (0.03) -- 1.00 3.22
Class C........................... -- (0.03) -- 1.00 3.22
Class Y........................... -- (0.04) -- 1.00 4.34
For the Year Ended October 31,
2005
Class A........................... -- (0.02) -- 1.00 1.99
Class B........................... -- (0.01) -- 1.00 1.23
Class C........................... -- (0.01) -- 1.00 1.23
Class Y........................... -- (0.02) -- 1.00 2.40
For the Year Ended October 31,
2004
Class A........................... -- (0.00) -- 1.00 0.28
Class B........................... -- (0.00) -- 1.00 0.01
Class C........................... -- (0.00) -- 1.00 0.01
Class Y........................... -- (0.01) -- 1.00 0.72
For the Year Ended October 31,
2003
Class A........................... -- (0.00) -- 1.00 0.32
Class B........................... -- -- -- 1.00 0.00
Class C........................... -- -- -- 1.00 0.00
Class Y........................... -- (0.01) -- 1.00 0.78
For the Year Ended October 31,
2002(h)
Class A........................... -- (0.01) -- 1.00 1.09
Class B........................... -- (0.00) -- 1.00 0.43
Class C........................... -- (0.00) -- 1.00 0.42
Class Y........................... -- (0.02) -- 1.00 1.72
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD MONEY MARKET FUND
For the Year Ended October 31,
2006
Class A........................... $207,592 1.14% 0.95% 3.95% N/A
Class B........................... 27,995 1.79 1.70 3.18 --
Class C........................... 16,997 1.76 1.70 3.20 --
Class Y........................... 13,628 0.61 0.55 4.29 --
For the Year Ended October 31,
2005
Class A........................... 182,308 1.22 0.95 1.96 N/A
Class B........................... 30,716 1.88 1.70 1.16 --
Class C........................... 18,790 1.80 1.70 1.19 --
Class Y........................... 16,114 0.61 0.55 2.47 --
For the Year Ended October 31,
2004
Class A........................... 205,442 1.22 1.00 0.27 N/A
Class B........................... 45,836 1.82 1.25 0.01 --
Class C........................... 26,626 1.77 1.27 0.01 --
Class Y........................... 9,698 0.56 0.55 0.96 --
For the Year Ended October 31,
2003
Class A........................... 246,199 1.28 1.00 0.33 N/A
Class B........................... 67,732 2.01 1.33(j) 0.01 --
Class C........................... 29,955 1.89 1.36(j) 0.01 --
Class Y........................... 1,162 0.68 0.55 0.84 --
For the Year Ended October 31,
2002(h)
Class A........................... 302,862 1.30 1.00 1.06 N/A
Class B........................... 99,048 1.96 1.70 0.37 --
Class C........................... 65,894 1.82 1.70 0.37 --
Class Y........................... 2,815 0.62 0.55 1.51 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
(j) Expense ratio includes a practical waiver of 12b-1 fees.
The accompanying notes are an integral part of these financial statements.
356
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD RETIREMENT INCOME
FUND(G)
For the Year Ended October 31,
2006
Class A........................... $ 9.87 $ 0.62 $(0.15) $ 0.47 $(0.75) $ --
Class B........................... 9.87 0.63 (0.24) 0.39 (0.67) --
Class C........................... 9.87 0.63 (0.22) 0.41 (0.67) --
Class Y........................... 9.86 0.71 (0.19) 0.52 (0.78) --
From September 30, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... 10.00 0.02 (0.14) (0.12) (0.01) --
Class B........................... 10.00 0.01 (0.14) (0.13) -- --
Class C........................... 10.00 0.01 (0.14) (0.13) -- --
Class Y........................... 10.00 0.01 (0.14) (0.13) (0.01) --
THE HARTFORD SELECT MIDCAP GROWTH
FUND
For the Year Ended October 31,
2006
Class A........................... 10.14 (0.08) 1.32 1.24 -- (0.10)
Class B........................... 10.08 (0.15) 1.31 1.16 -- (0.10)
Class C........................... 10.08 (0.15) 1.30 1.15 -- (0.10)
Class Y........................... 10.17 (0.04) 1.33 1.29 -- (0.10)
From January 1, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... 10.06 (0.06) 0.14 0.08 -- --
Class B........................... 10.06 (0.09) 0.11 0.02 -- --
Class C........................... 10.06 (0.09) 0.11 0.02 -- --
Class Y........................... 10.06 (0.05) 0.16 0.11 -- --
THE HARTFORD SELECT MIDCAP VALUE
FUND
For the Year Ended October 31,
2006
Class A........................... 10.79 -- 1.87 1.87 (0.01) (0.24)
Class B........................... 10.75 (0.10) 1.87 1.77 -- (0.24)
Class C........................... 10.75 (0.09) 1.86 1.77 -- (0.24)
Class Y........................... 10.81 0.07 1.81 1.88 (0.05) (0.24)
From April 29, 2005, (commencement
of operations) through October
31, 2005
Class A........................... 10.00 -- 0.79 0.79 -- --
Class B........................... 10.00 (0.03) 0.78 0.75 -- --
Class C........................... 10.00 (0.03) 0.78 0.75 -- --
Class Y........................... 10.00 0.02 0.79 0.81 -- --
THE HARTFORD SELECT SMALLCAP GROWTH
FUND
For the Year Ended October 31,
2006
Class A........................... 9.58 (0.09) 1.04 0.95 -- --
Class B........................... 9.57 (0.12) 1.01 0.89 -- --
Class C........................... 9.57 (0.13) 1.01 0.88 -- --
Class Y........................... 9.58 (0.01) 1.02 1.01 -- --
From September 30, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... 10.00 (0.01) (0.41) (0.42) -- --
Class B........................... 10.00 (0.01) (0.42) (0.43) -- --
Class C........................... 10.00 (0.01) (0.42) (0.43) -- --
Class Y........................... 10.00 -- (0.42) (0.42) -- --
THE HARTFORD SELECT SMALLCAP VALUE
FUND
From July 31, 2006, (commencement
of operations) through October
31, 2006(h)
Class A........................... 10.00 0.02 0.94 0.96 -- --
Class B........................... 10.00 -- 0.93 0.93 -- --
Class C........................... 10.00 -- 0.93 0.93 -- --
Class Y........................... 10.00 0.01 0.96 0.97 -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD RETIREMENT INCOME
FUND(G)
For the Year Ended October 31,
2006
Class A........................... $ -- $(0.75) $(0.28) $ 9.59 5.03%
Class B........................... -- (0.67) (0.28) 9.59 4.21
Class C........................... -- (0.67) (0.26) 9.61 4.42
Class Y........................... -- (0.78) (0.26) 9.60 5.55
From September 30, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... -- (0.01) (0.13) 9.87 (1.22)(f)
Class B........................... -- -- (0.13) 9.87 (1.29)(f)
Class C........................... -- -- (0.13) 9.87 (1.29)(f)
Class Y........................... -- (0.01) (0.14) 9.86 (1.30)(f)
THE HARTFORD SELECT MIDCAP GROWTH
FUND
For the Year Ended October 31,
2006
Class A........................... -- (0.10) 1.14 11.28 12.31
Class B........................... -- (0.10) 1.06 11.14 11.58
Class C........................... -- (0.10) 1.05 11.13 11.48
Class Y........................... -- (0.10) 1.19 11.36 12.77
From January 1, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... -- -- 0.08 10.14 0.80(f)
Class B........................... -- -- 0.02 10.08 0.20(f)
Class C........................... -- -- 0.02 10.08 0.20(f)
Class Y........................... -- -- 0.11 10.17 1.09(f)
THE HARTFORD SELECT MIDCAP VALUE
FUND
For the Year Ended October 31,
2006
Class A........................... -- (0.25) 1.62 12.41 17.66
Class B........................... -- (0.24) 1.53 12.28 16.79
Class C........................... -- (0.24) 1.53 12.28 16.79
Class Y........................... -- (0.29) 1.59 12.40 17.79
From April 29, 2005, (commencement
of operations) through October
31, 2005
Class A........................... -- -- 0.79 10.79 7.90(f)
Class B........................... -- -- 0.75 10.75 7.50(f)
Class C........................... -- -- 0.75 10.75 7.50(f)
Class Y........................... -- -- 0.81 10.81 8.10(f)
THE HARTFORD SELECT SMALLCAP GROWTH
FUND
For the Year Ended October 31,
2006
Class A........................... -- -- 0.95 10.53 9.92
Class B........................... -- -- 0.89 10.46 9.30
Class C........................... -- -- 0.88 10.45 9.20
Class Y........................... -- -- 1.01 10.59 10.54
From September 30, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... -- -- (0.42) 9.58 (4.20)(f)
Class B........................... -- -- (0.43) 9.57 (4.30)(f)
Class C........................... -- -- (0.43) 9.57 (4.30)(f)
Class Y........................... -- -- (0.42) 9.58 (4.20)(f)
THE HARTFORD SELECT SMALLCAP VALUE
FUND
From July 31, 2006, (commencement
of operations) through October
31, 2006(h)
Class A........................... -- -- 0.96 10.96 9.60(f)
Class B........................... -- -- 0.93 10.93 9.30(f)
Class C........................... -- -- 0.93 10.93 9.30(f)
Class Y........................... -- -- 0.97 10.97 9.70(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD RETIREMENT INCOME
FUND(G)
For the Year Ended October 31,
2006
Class A........................... $ 420 16.84% 0.54% 2.54% 37%
Class B........................... 173 17.64 1.30 1.89 --
Class C........................... 161 17.64 1.30 1.88 --
Class Y........................... 114 16.51 0.24 2.96 --
From September 30, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... 47 0.63(e) 0.53(e) 4.08(e) 83
Class B........................... 10 1.36(e) 1.26(e) 1.76(e) --
Class C........................... 10 1.36(e) 1.26(e) 1.76(e) --
Class Y........................... 10 0.28(e) 0.28(e) 2.75(e) --
THE HARTFORD SELECT MIDCAP GROWTH
FUND
For the Year Ended October 31,
2006
Class A........................... 23,542 1.69 1.50 (0.85) 99
Class B........................... 3,725 2.67 2.11 (1.46) --
Class C........................... 3,861 2.52 2.25 (1.60) --
Class Y........................... 28,868 1.13 1.10 (0.45) --
From January 1, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... 14,995 2.22(e) 1.50(e) (0.95)(e) 97
Class B........................... 2,354 3.35(e) 2.25(e) (1.70)(e) --
Class C........................... 1,741 3.26(e) 2.25(e) (1.70)(e)
Class Y........................... 210 1.66(e) 1.10(e) (0.55)(e) --
THE HARTFORD SELECT MIDCAP VALUE
FUND
For the Year Ended October 31,
2006
Class A........................... 47,937 1.69 1.55 (0.10) 63
Class B........................... 4,137 2.67 2.30 (0.84) --
Class C........................... 7,417 2.53 2.30 (0.84) --
Class Y........................... 20,025 1.33 1.15 0.26 --
From April 29, 2005, (commencement
of operations) through October
31, 2005
Class A........................... 22,423 1.67(e) 1.55(e) (0.08)(e) 30
Class B........................... 1,714 2.64(e) 2.30(e) (0.92)(e) --
Class C........................... 2,885 2.53(e) 2.30(e) (0.96)(e) --
Class Y........................... 541 1.36(e) 1.15(e) 0.37(e) --
THE HARTFORD SELECT SMALLCAP GROWTH
FUND
For the Year Ended October 31,
2006
Class A........................... 7,284 2.81 1.65 (0.99) 62
Class B........................... 526 3.88 2.40 (1.71) --
Class C........................... 672 3.75 2.40 (1.72) --
Class Y........................... 4,753 2.60 1.20 (0.44) --
From September 30, 2005,
(commencement of operations)
through October 31, 2005
Class A........................... 5,217 1.65(e) 1.65(e) (0.76)(e) 4
Class B........................... 199 2.40(e) 2.40(e) (1.51)(e) --
Class C........................... 204 2.39(e) 2.39(e) (1.52)(e)
Class Y........................... 192 1.20(e) 1.20(e) (0.31)(e) --
THE HARTFORD SELECT SMALLCAP VALUE
FUND
From July 31, 2006, (commencement
of operations) through October
31, 2006(h)
Class A........................... 15,872 1.73(e) 1.60(e) 0.78(e) 10
Class B........................... 308 2.53(e) 2.35(e) 0.03(e) --
Class C........................... 280 2.51(e) 2.35(e) 0.03(e) --
Class Y........................... 1,538 1.71(e) 1.20(e) 0.79(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
357
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD SHORT DURATION FUND
For the Year Ended October 31, 2006
Class A................................ $ 9.85 $ 0.35 $ 0.04 $ 0.39 $(0.35) $ --
Class B................................ 9.85 0.27 0.05 0.32 (0.27) --
Class C................................ 9.85 0.27 0.05 0.32 (0.27) --
Class Y................................ 9.84 0.37 0.04 0.41 (0.37) --
For the Year Ended October 31, 2005
Class A................................ 10.08 0.33 (0.24) 0.09 (0.32) --
Class B................................ 10.08 0.25 (0.23) 0.02 (0.25) --
Class C................................ 10.08 0.25 (0.23) 0.02 (0.25) --
Class Y................................ 10.07 0.35 (0.23) 0.12 (0.35) --
For the Year Ended October 31, 2004
Class A................................ 10.14 0.30 (0.06) 0.24 (0.30) --
Class B................................ 10.14 0.23 (0.06) 0.17 (0.23) --
Class C................................ 10.14 0.23 (0.06) 0.17 (0.23) --
From inception November 28, 2003,
through October 31, 2004
Class Y................................ 10.11 0.30 (0.04) 0.26 (0.30) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 10.00 0.30 0.14 0.44 (0.30) --
Class B................................ 10.00 0.23 0.14 0.37 (0.23) --
Class C................................ 10.00 0.23 0.14 0.37 (0.23) --
THE HARTFORD SMALL COMPANY FUND
For the Year Ended October 31, 2006
Class A................................ 18.45 (0.18) 3.31 3.13 -- --
Class B................................ 17.20 (0.36) 3.13 2.77 -- --
Class C................................ 17.22 (0.32) 3.10 2.78 -- --
Class Y................................ 19.33 (0.06) 3.46 3.40 -- --
From August 31, 2006 (commencement of
operations) through October 31, 2006
Class I................................ 20.70 (0.01) 0.90 0.89 -- --
For the Year Ended October 31, 2005
Class A................................ 15.09 (0.16) 3.52 3.36 -- --
Class B................................ 14.17 (0.29) 3.32 3.03 -- --
Class C................................ 14.19 (0.29) 3.32 3.03 -- --
Class Y................................ 15.74 (0.07) 3.66 3.59 -- --
For the Year Ended October 31, 2004
Class A................................ 14.28 (0.18) 0.99 0.81 -- --
Class B................................ 13.51 (0.27) 0.93 0.66 -- --
Class C................................ 13.52 (0.28) 0.95 0.67 -- --
Class Y................................ 14.83 (0.06) 0.97 0.91 -- --
For the Year Ended October 31, 2003
Class A................................ 9.93 (0.13) 4.48 4.35 -- --
Class B................................ 9.46 (0.20) 4.25 4.05 -- --
Class C................................ 9.47 (0.20) 4.25 4.05 -- --
Class Y................................ 10.27 (0.09) 4.65 4.56 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 12.00 (0.12) (1.95) (2.07) -- --
Class B................................ 11.52 (0.20) (1.86) (2.06) -- --
Class C................................ 11.53 (0.20) (1.86) (2.06) -- --
Class Y................................ 12.35 (0.06) (2.02) (2.08) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD SHORT DURATION FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.35) $ 0.04 $ 9.89 4.02%
Class B................................ -- (0.27) 0.05 9.90 3.33
Class C................................ -- (0.27) 0.05 9.90 3.33
Class Y................................ -- (0.37) 0.04 9.88 4.28
For the Year Ended October 31, 2005
Class A................................ -- (0.32) (0.23) 9.85 0.92
Class B................................ -- (0.25) (0.23) 9.85 0.17
Class C................................ -- (0.25) (0.23) 9.85 0.17
Class Y................................ -- (0.35) (0.23) 9.84 1.18
For the Year Ended October 31, 2004
Class A................................ -- (0.30) (0.06) 10.08 2.40
Class B................................ -- (0.23) (0.06) 10.08 1.68
Class C................................ -- (0.23) (0.06) 10.08 1.68
From inception November 28, 2003,
through October 31, 2004
Class Y................................ -- (0.30) (0.04) 10.07 2.62(f)
From inception October 31, 2002,
through October 31, 2003
Class A................................ -- (0.30) 0.14 10.14 4.48(f)
Class B................................ -- (0.23) 0.14 10.14 3.77(f)
Class C................................ -- (0.23) 0.14 10.14 3.77(f)
THE HARTFORD SMALL COMPANY FUND
For the Year Ended October 31, 2006
Class A................................ -- -- 3.13 21.58 16.96
Class B................................ -- -- 2.77 19.97 16.10
Class C................................ -- -- 2.78 20.00 16.14
Class Y................................ -- -- 3.40 22.73 17.59
From August 31, 2006 (commencement of
operations) through October 31, 2006
Class I................................ -- -- 0.89 21.59 4.30(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 3.36 18.45 22.27
Class B................................ -- -- 3.03 17.20 21.38
Class C................................ -- -- 3.03 17.22 21.35
Class Y................................ -- -- 3.59 19.33 22.81
For the Year Ended October 31, 2004
Class A................................ -- -- 0.81 15.09 5.67
Class B................................ -- -- 0.66 14.17 4.88
Class C................................ -- -- 0.67 14.19 4.96
Class Y................................ -- -- 0.91 15.74 6.14
For the Year Ended October 31, 2003
Class A................................ -- -- 4.35 14.28 43.81
Class B................................ -- -- 4.05 13.51 42.81
Class C................................ -- -- 4.05 13.52 42.77
Class Y................................ -- -- 4.56 14.83 44.40
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (2.07) 9.93 (17.25)
Class B................................ -- -- (2.06) 9.46 (17.88)
Class C................................ -- -- (2.06) 9.47 (17.87)
Class Y................................ -- -- (2.08) 10.27 (16.84)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD SHORT DURATION FUND
For the Year Ended October 31, 2006
Class A................................ $ 26,726 1.10% 0.90% 3.53% 119%
Class B................................ 6,760 1.92 1.65 2.77 --
Class C................................ 14,382 1.83 1.65 2.76 --
Class Y................................ 102,198 0.68 0.65 3.78 --
For the Year Ended October 31, 2005
Class A................................ 29,212 1.05 0.90 3.23 123
Class B................................ 8,814 1.89 1.65 2.47 --
Class C................................ 22,973 1.78 1.65 2.47 --
Class Y................................ 82,439 0.67 0.65 3.53 --
For the Year Ended October 31, 2004
Class A................................ 39,148 1.06 0.95 2.95 108
Class B................................ 12,267 1.84 1.65 2.26 --
Class C................................ 34,949 1.76 1.65 2.26 --
From inception November 28, 2003,
through October 31, 2004
Class Y................................ 31,429 0.61(e) 0.60(e) 3.03(e) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 32,753 1.34(e) 0.95(e) 3.14(e) 113
Class B................................ 10,206 2.09(e) 1.65(e) 2.46(e) --
Class C................................ 30,660 1.96(e) 1.65(e) 2.44(e) --
THE HARTFORD SMALL COMPANY FUND
For the Year Ended October 31, 2006
Class A................................ 194,656 1.48 1.40 (0.87) 170%
Class B................................ 52,036 2.32 2.15 (1.62) --
Class C................................ 47,744 2.23 2.15 (1.62) --
Class Y................................ 108,770 0.95 0.95 (0.39) --
From August 31, 2006 (commencement of
operations) through October 31, 2006
Class I................................ 69 1.38(e) 1.15(e) (0.58)(e) --
For the Year Ended October 31, 2005
Class A................................ 159,577 1.57 1.40 (0.88) 104
Class B................................ 56,664 2.39 2.15 (1.63) --
Class C................................ 44,564 2.30 2.15 (1.63) --
Class Y................................ 43,274 0.97 0.97 (0.43) --
For the Year Ended October 31, 2004
Class A................................ 156,278 1.62 1.45 (1.15) 142
Class B................................ 58,438 2.40 2.15 (1.85) --
Class C................................ 49,327 2.30 2.15 (1.85) --
Class Y................................ 15,731 0.99 0.99 (0.71) --
For the Year Ended October 31, 2003
Class A................................ 141,327 1.63 1.45 (1.19) 179
Class B................................ 58,286 2.36 2.15 (1.89) --
Class C................................ 52,010 2.23 2.15 (1.88) --
Class Y................................ 14,472 1.05 1.00 (0.73) --
For the Year Ended October 31, 2002(h)
Class A................................ 96,302 1.64 1.45 (0.97) 226
Class B................................ 41,439 2.31 2.15 (1.67) --
Class C................................ 38,938 2.20 2.15 (1.65) --
Class Y................................ 10,834 1.00 1.00 (0.53) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
358
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD SMALLCAP GROWTH FUND
For the Year Ended October 31, 2006
Class A................................ $28.30 $(0.06) $ 3.08 $ 3.02 $ -- $ --
Class B................................ 25.57 (0.26) 2.81 2.55 -- --
Class C................................ 25.56 (0.27) 2.78 2.51 -- --
Class H................................ 25.69 (0.25) 2.85 2.60 -- --
Class L................................ 28.36 (0.02) 3.11 3.09 -- --
Class M................................ 25.66 (0.25) 2.84 2.59 -- --
Class N................................ 25.69 (0.24) 2.83 2.59 -- --
Class Y................................ 28.74 0.04 3.17 3.21 -- --
From August 31, 2006 (commencement of
operations) through October 31, 2006
Class I................................ 28.90 (0.01) 2.44 2.43 -- --
For the Year Ended October 31, 2005
Class A................................ 24.60 (0.15) 3.85 3.70 -- --
Class B................................ 22.39 (0.32) 3.50 3.18 -- --
Class C................................ 22.39 (0.28) 3.45 3.17 -- --
Class H................................ 22.46 (0.34) 3.57 3.23 -- --
Class L................................ 24.60 (0.13) 3.89 3.76 -- --
Class M................................ 22.44 (0.33) 3.55 3.22 -- --
Class N................................ 22.46 (0.33) 3.56 3.23 -- --
Class Y................................ 24.88 (0.04) 3.90 3.86 -- --
For the Year Ended October 31, 2004
Class A................................ 22.91 (0.15) 1.84 1.69 -- --
Class B................................ 20.99 (0.28) 1.68 1.40 -- --
Class C................................ 20.99 (0.27) 1.67 1.40 -- --
Class H................................ 21.02 (0.34) 1.78 1.44 -- --
Class L................................ 22.90 (0.19) 1.89 1.70 -- --
Class M................................ 21.00 (0.32) 1.76 1.44 -- --
Class N................................ 21.02 (0.31) 1.75 1.44 -- --
Class Y................................ 23.06 (0.02) 1.84 1.82 -- --
For the Year Ended October 31, 2003
Class A................................ 15.57 (0.09) 7.43 7.34 -- --
Class B................................ 14.36 (0.15) 6.78 6.63 -- --
Class C................................ 14.35 (0.16) 6.80 6.64 -- --
Class H................................ 14.37 (0.25) 6.90 6.65 -- --
Class L................................ 15.56 (0.15) 7.49 7.34 -- --
Class M................................ 14.36 (0.24) 6.88 6.64 -- --
Class N................................ 14.37 (0.24) 6.89 6.65 -- --
Class Y................................ 15.61 (0.08) 7.53 7.45 -- --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 20.21 (0.06) (4.58) (4.64) -- --
Class B................................ 18.73 (0.08) (4.29) (4.37) -- --
Class C................................ 18.73 (0.09) (4.29) (4.38) -- --
Class Y................................ 20.21 (0.08) (4.52) (4.60) -- --
For the Year Ended October 31, 2002
Class H................................ 17.71 (0.36) (2.65) (3.01) -- (0.33)
Class L................................ 19.04 (0.20) (2.95) (3.15) -- (0.33)
Class M................................ 17.70 (0.33) (2.68) (3.01) -- (0.33)
Class N................................ 17.71 (0.34) (2.67) (3.01) -- (0.33)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD SMALLCAP GROWTH FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $ -- $ 3.02 $31.32 10.67%
Class B................................ -- -- 2.55 28.12 9.97
Class C................................ -- -- 2.51 28.07 9.82
Class H................................ -- -- 2.60 28.29 10.12
Class L................................ -- -- 3.09 31.45 10.90
Class M................................ -- -- 2.59 28.25 10.09
Class N................................ -- -- 2.59 28.28 10.08
Class Y................................ -- -- 3.21 31.95 11.17
From August 31, 2006 (commencement of
operations) through October 31, 2006
Class I................................ -- -- 2.43 31.33 8.41(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 3.70 28.30 15.04
Class B................................ -- -- 3.18 25.57 14.20
Class C................................ -- -- 3.17 25.56 14.16
Class H................................ -- -- 3.23 25.69 14.38
Class L................................ -- -- 3.76 28.36 15.28
Class M................................ -- -- 3.22 25.66 14.35
Class N................................ -- -- 3.23 25.69 14.38
Class Y................................ -- -- 3.86 28.74 15.52
For the Year Ended October 31, 2004
Class A................................ -- -- 1.69 24.60 7.38
Class B................................ -- -- 1.40 22.39 6.67
Class C................................ -- -- 1.40 22.39 6.67
Class H................................ -- -- 1.44 22.46 6.85
Class L................................ -- -- 1.70 24.60 7.42
Class M................................ -- -- 1.44 22.44 6.86
Class N................................ -- -- 1.44 22.46 6.85
Class Y................................ -- -- 1.82 24.88 7.89
For the Year Ended October 31, 2003
Class A................................ -- -- 7.34 22.91 47.14
Class B................................ -- -- 6.63 20.99 46.17
Class C................................ -- -- 6.64 20.99 46.27
Class H................................ -- -- 6.65 21.02 46.28
Class L................................ -- -- 7.34 22.90 47.17
Class M................................ -- -- 6.64 21.00 46.24
Class N................................ -- -- 6.65 21.02 46.28
Class Y................................ -- -- 7.45 23.06 47.72
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- -- (4.64) 15.57 (22.97)(f)
Class B................................ -- -- (4.37) 14.36 (23.31)(f)
Class C................................ -- -- (4.38) 14.35 (23.37)(f)
Class Y................................ -- -- (4.60) 15.61 (22.77)(f)
For the Year Ended October 31, 2002
Class H................................ -- (0.33) (3.34) 14.37 (17.41)
Class L................................ -- (0.33) (3.48) 15.56 (16.92)
Class M................................ -- (0.33) (3.34) 14.36 (17.42)
Class N................................ -- (0.33) (3.34) 14.37 (17.41)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD SMALLCAP GROWTH FUND
For the Year Ended October 31, 2006
Class A................................ $228,776 1.56% 1.36% (0.30)% 86%
Class B................................ 19,078 2.39 2.02 (0.95) --
Class C................................ 24,070 2.25 2.15 (1.08) --
Class H................................ 13,634 1.89 1.89 (0.82) --
Class L................................ 118,452 1.15 1.15 (0.08) --
Class M................................ 14,483 1.89 1.89 (0.82) --
Class N................................ 5,846 1.90 1.90 (0.82) --
Class Y................................ 107,906 0.92 0.92 0.15 --
From August 31, 2006 (commencement of
operations) through October 31, 2006
Class I................................ 239 1.28(e) 1.15(e) (0.43)(e) --
For the Year Ended October 31, 2005
Class A................................ 66,403 1.62 1.40 (0.65) 81
Class B................................ 16,230 2.51 2.15 (1.40) --
Class C................................ 15,668 2.33 2.15 (1.40) --
Class H................................ 15,245 1.96 1.96 (1.21) --
Class L................................ 119,114 1.21 1.21 (0.46) --
Class M................................ 15,461 1.96 1.96 (1.21) --
Class N................................ 5,969 1.96 1.96 (1.21) --
Class Y................................ 55,933 0.98 0.98 (0.23) --
For the Year Ended October 31, 2004
Class A................................ 42,962 1.77 1.45 (0.81) 102
Class B................................ 11,930 2.59 2.15 (1.51) --
Class C................................ 10,140 2.38 2.15 (1.51) --
Class H................................ 17,328 1.98 1.98 (1.34) --
Class L................................ 114,266 1.43 1.43 (0.79) --
Class M................................ 16,154 1.98 1.98 (1.34) --
Class N................................ 6,115 1.98 1.98 (1.34) --
Class Y................................ 5,788 1.03 1.03 (0.47) --
For the Year Ended October 31, 2003
Class A................................ 17,544 1.61 1.45 (0.83) 122
Class B................................ 6,571 2.31 2.15 (1.53) --
Class C................................ 5,076 2.22 2.15 (1.53) --
Class H................................ 20,767 2.05 2.05 (1.40) --
Class L................................ 112,621 1.50 1.45 (0.80) --
Class M................................ 17,992 2.05 2.05 (1.40) --
Class N................................ 6,110 2.05 2.05 (1.40) --
Class Y................................ 1 1.11 1.10 (0.46) --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 3,457 1.82(e) 1.45(e) (0.93)(e) 93
Class B................................ 1,756 2.52(e) 2.15(e) (1.60)(e) --
Class C................................ 1,432 2.38(e) 2.15(e) (1.60)(e) --
Class Y................................ 1 1.06(e) 1.00(e) (0.60)(e) --
For the Year Ended October 31, 2002
Class H................................ 16,675 2.05 2.05 (1.65) 93
Class L................................ 86,414 1.50 1.45 (1.06) --
Class M................................ 13,714 2.05 2.05 (1.65) --
Class N................................ 4,757 2.05 2.05 (1.65) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
359
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD STOCK FUND
For the Year Ended October 31, 2006(h)
Class A................................ $18.39 $ 0.11 $ 2.58 $ 2.69 $(0.04) $ --
Class B................................ 17.23 (0.05) 2.40 2.35 -- --
Class C................................ 17.35 (0.04) 2.42 2.38 -- --
Class Y................................ 19.18 0.21 2.70 2.91 (0.14) --
For the Year Ended October 31, 2005
Class A................................ 16.76 0.16 1.57 1.73 (0.10) --
Class B................................ 15.76 -- 1.47 1.47 -- --
Class C................................ 15.84 0.04 1.47 1.51 -- --
Class Y................................ 17.49 0.24 1.66 1.90 (0.21) --
For the Year Ended October 31, 2004
Class A................................ 16.21 0.03 0.52 0.55 -- --
Class B................................ 15.35 (0.10) 0.51 0.41 -- --
Class C................................ 15.41 (0.08) 0.51 0.43 -- --
Class Y................................ 16.81 0.10 0.58 0.68 -- --
For the Year Ended October 31, 2003
Class A................................ 13.73 0.04 2.44 2.48 -- --
Class B................................ 13.10 (0.07) 2.32 2.25 -- --
Class C................................ 13.13 (0.05) 2.33 2.28 -- --
Class Y................................ 14.15 0.12 2.54 2.66 -- --
For the Year Ended October 31, 2002(h)
Class A................................ 16.89 -- (3.16) (3.16) -- --
Class B................................ 16.24 (0.12) (3.02) (3.14) -- --
Class C................................ 16.23 (0.08) (3.02) (3.10) -- --
Class Y................................ 17.31 0.10 (3.26) (3.16) -- --
THE HARTFORD TARGET RETIREMENT 2010
FUND(G)
For the Year Ended October 31, 2006
Class A................................ 9.82 0.47 0.22 0.69 (0.50) --
Class B................................ 9.82 0.34 0.27 0.61 (0.42) --
Class C................................ 9.82 0.40 0.21 0.61 (0.43) --
Class Y................................ 9.83 0.50 0.21 0.71 (0.53) --
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ 10.00 0.02 (0.20) (0.18) -- --
Class B................................ 10.00 0.01 (0.19) (0.18) -- --
Class C................................ 10.00 0.01 (0.19) (0.18) -- --
Class Y................................ 10.00 0.02 (0.19) (0.17) -- --
THE HARTFORD TARGET RETIREMENT 2020
FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ 9.79 0.13 0.86 0.99 (0.35) --
Class B................................ 9.78 0.04 0.88 0.92 (0.28) --
Class C................................ 9.78 0.04 0.88 0.92 (0.28) --
Class Y................................ 9.79 0.27 0.75 1.02 (0.38) --
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ 10.00 0.01 (0.22) (0.21) -- --
Class B................................ 10.00 0.01 (0.23) (0.22) -- --
Class C................................ 10.00 0.01 (0.23) (0.22) -- --
Class Y................................ 10.00 0.01 (0.22) (0.21) -- --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD STOCK FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(0.04) $ 2.65 $21.04 14.65%
Class B................................ -- -- 2.35 19.58 13.64
Class C................................ -- -- 2.38 19.73 13.72
Class Y................................ -- (0.14) 2.77 21.95 15.21
For the Year Ended October 31, 2005
Class A................................ -- (0.10) 1.63 18.39 10.36
Class B................................ -- -- 1.47 17.23 9.33
Class C................................ -- -- 1.51 17.35 9.53
Class Y................................ -- (0.21) 1.69 19.18 10.91
For the Year Ended October 31, 2004
Class A................................ -- -- 0.55 16.76 3.39
Class B................................ -- -- 0.41 15.76 2.67
Class C................................ -- -- 0.43 15.84 2.79
Class Y................................ -- -- 0.68 17.49 4.04
For the Year Ended October 31, 2003
Class A................................ -- -- 2.48 16.21 18.06
Class B................................ -- -- 2.25 15.35 17.18
Class C................................ -- -- 2.28 15.41 17.36
Class Y................................ -- -- 2.66 16.81 18.80
For the Year Ended October 31, 2002(h)
Class A................................ -- -- (3.16) 13.73 (18.71)
Class B................................ -- -- (3.14) 13.10 (19.34)
Class C................................ -- -- (3.10) 13.13 (19.10)
Class Y................................ -- -- (3.16) 14.15 (18.26)
THE HARTFORD TARGET RETIREMENT 2010
FUND(G)
For the Year Ended October 31, 2006
Class A................................ (0.36) (0.86) (0.17) 9.65 7.43
Class B................................ (0.36) (0.78) (0.17) 9.65 6.58
Class C................................ (0.36) (0.79) (0.18) 9.64 6.53
Class Y................................ (0.36) (0.89) (0.18) 9.65 7.62
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ -- -- (0.18) 9.82 (1.80)(f)
Class B................................ -- -- (0.18) 9.82 (1.80)(f)
Class C................................ -- -- (0.18) 9.82 (1.80)(f)
Class Y................................ -- -- (0.17) 9.83 (1.70)(f)
THE HARTFORD TARGET RETIREMENT 2020
FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ -- (0.35) 0.64 10.43 10.37
Class B................................ -- (0.28) 0.64 10.42 9.56
Class C................................ -- (0.28) 0.64 10.42 9.58
Class Y................................ -- (0.38) 0.64 10.43 10.70
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ -- -- (0.21) 9.79 (2.10)(f)
Class B................................ -- -- (0.22) 9.78 (2.20)(f)
Class C................................ -- -- (0.22) 9.78 (2.20)(f)
Class Y................................ -- -- (0.21) 9.79 (2.10)(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD STOCK FUND
For the Year Ended October 31, 2006(h)
Class A................................ $684,726 1.41% 1.28% 0.53% 110%
Class B................................ 223,639 2.23 2.12 (0.30) --
Class C................................ 161,554 2.08 2.03 (0.21) --
Class Y................................ 131,759 0.83 0.78 1.03 --
For the Year Ended October 31, 2005
Class A................................ 727,492 1.42 1.33 0.89 62
Class B................................ 278,445 2.23 2.23 (0.02) --
Class C................................ 182,587 2.09 2.09 0.17 --
Class Y................................ 107,578 0.83 0.83 1.24 --
For the Year Ended October 31, 2004
Class A................................ 952,606 1.42 1.42 0.18 29
Class B................................ 343,148 2.18 2.18 (0.59) --
Class C................................ 256,271 2.03 2.03 (0.44) --
Class Y................................ 80,932 0.80 0.80 0.80 --
For the Year Ended October 31, 2003
Class A................................ 976,663 1.47 1.45 0.26 37
Class B................................ 376,437 2.20 2.18 (0.47) --
Class C................................ 311,874 2.07 2.07 (0.36) --
Class Y................................ 42,894 0.88 0.88 0.84 --
For the Year Ended October 31, 2002(h)
Class A................................ 880,371 1.47 1.42 (0.01) 48
Class B................................ 351,382 2.15 2.15 (0.74) --
Class C................................ 313,173 2.03 2.03 (0.62) --
Class Y................................ 34,116 0.85 0.85 0.58 --
THE HARTFORD TARGET RETIREMENT 2010
FUND(G)
For the Year Ended October 31, 2006
Class A................................ 1,618 8.32 0.54 2.01 10
Class B................................ 226 9.17 1.29 1.24 --
Class C................................ 475 9.13 1.30 1.63 --
Class Y................................ 135 8.02 0.23 2.31 --
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ 11 0.65(e) 0.49(e) 2.53(e) 12
Class B................................ 10 1.41(e) 1.26(e) 1.61(e) --
Class C................................ 10 1.41(e) 1.27(e) 1.60(e) --
Class Y................................ 10 0.32(e) 0.21(e) 2.65(e) --
THE HARTFORD TARGET RETIREMENT 2020
FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ 2,125 9.85 0.53 1.35 19
Class B................................ 291 10.69 1.29 0.39 --
Class C................................ 337 10.62 1.30 0.41 --
Class Y................................ 11 9.41 0.22 2.73 --
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ 144 0.66(e) 0.51(e) 2.77(e) 28
Class B................................ 10 1.37(e) 1.25(e) 0.86(e) --
Class C................................ 10 1.37(e) 1.26(e) 0.85(e) --
Class Y................................ 10 0.29(e) 0.20(e) 1.91(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
360
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD TARGET RETIREMENT 2030
FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ $ 9.75 $0.03 $ 0.87 $ 0.90 $(0.49) $ --
Class B................................ 9.74 (0.02) 0.86 0.84 (0.42) --
Class C................................ 9.74 -- 0.85 0.85 (0.42) --
Class Y................................ 9.75 0.10 0.84 0.94 (0.53) --
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ 10.00 0.01 (0.26) (0.25) -- --
Class B................................ 10.00 -- (0.26) (0.26) -- --
Class C................................ 10.00 -- (0.26) (0.26) -- --
Class Y................................ 10.00 0.01 (0.26) (0.25) -- --
THE HARTFORD TAX-FREE CALIFORNIA FUND
For the Year Ended October 31, 2006
Class A................................ 10.32 0.38 0.24 0.62 (0.38) (0.01)
Class B................................ 10.31 0.30 0.24 0.54 (0.30) (0.01)
Class C................................ 10.33 0.30 0.24 0.54 (0.30) (0.01)
For the Year Ended October 31, 2005
Class A................................ 10.32 0.38 -- 0.38 (0.38) --
Class B................................ 10.31 0.29 0.01 0.30 (0.30) --
Class C................................ 10.33 0.29 0.01 0.30 (0.30) --
For the Year Ended October 31, 2004
Class A................................ 9.93 0.38 0.41 0.79 (0.40) --
Class B................................ 9.92 0.34 0.38 0.72 (0.33) --
Class C................................ 9.93 0.32 0.41 0.73 (0.33) --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 10.00 0.37 (0.07) 0.30 (0.37) --
Class B................................ 10.00 0.30 (0.08) 0.22 (0.30) --
Class C................................ 10.00 0.30 (0.07) 0.23 (0.30) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD TARGET RETIREMENT 2030
FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ $(0.80) $(1.29) $(0.39) $ 9.36 10.00%
Class B................................ (0.80) (1.22) (0.38) 9.36 9.22
Class C................................ (0.80) (1.22) (0.37) 9.37 9.35
Class Y................................ (0.80) (1.33) (0.39) 9.36 10.40
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ -- -- (0.25) 9.75 (2.50)(f)
Class B................................ -- -- (0.26) 9.74 (2.60)(f)
Class C................................ -- -- (0.26) 9.74 (2.60)(f)
Class Y................................ -- -- (0.25) 9.75 (2.50)(f)
THE HARTFORD TAX-FREE CALIFORNIA FUND
For the Year Ended October 31, 2006
Class A................................ -- (0.39) 0.23 10.55 6.13
Class B................................ -- (0.31) 0.23 10.54 5.34
Class C................................ -- (0.31) 0.23 10.56 5.33
For the Year Ended October 31, 2005
Class A................................ -- (0.38) -- 10.32 3.69
Class B................................ -- (0.30) -- 10.31 2.92
Class C................................ -- (0.30) -- 10.33 2.91
For the Year Ended October 31, 2004
Class A................................ -- (0.40) 0.39 10.32 8.15
Class B................................ -- (0.33) 0.39 10.31 7.40
Class C................................ -- (0.33) 0.40 10.33 7.49
From inception October 31, 2002,
through October 31, 2003
Class A................................ -- (0.37) (0.07) 9.93 3.06(f)
Class B................................ -- (0.30) (0.08) 9.92 2.23(f)
Class C................................ -- (0.30) (0.07) 9.93 2.34(f)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD TARGET RETIREMENT 2030
FUND(G)
For the Year Ended October 31, 2006(h)
Class A................................ $ 1,857 14.20% 0.53% 0.37% 19%
Class B................................ 305 15.05 1.24 (0.28) --
Class C................................ 81 15.18 1.10 -- --
Class Y................................ 32 13.67 0.21 1.10 --
From September 30, 2005, (commencement
of operations) through October 31,
2005
Class A................................ 10 0.69(e) 0.48(e) 0.76(e) 14
Class B................................ 10 1.39(e) 1.24(e) --(e) --
Class C................................ 9 1.39(e) 1.24(e) --(e) --
Class Y................................ 10 0.34(e) 0.19(e) 1.05(e) --
THE HARTFORD TAX-FREE CALIFORNIA FUND
For the Year Ended October 31, 2006
Class A................................ 24,796 0.99 0.90 3.71 2
Class B................................ 1,571 1.77 1.65 2.96 --
Class C................................ 3,435 1.78 1.65 2.95 --
For the Year Ended October 31, 2005
Class A................................ 15,601 1.02 0.90 3.64 31
Class B................................ 1,305 1.80 1.65 2.90 --
Class C................................ 1,937 1.80 1.65 2.90 --
For the Year Ended October 31, 2004
Class A................................ 14,846 1.03 0.95 3.85 41
Class B................................ 1,017 1.84 1.65 3.12 --
Class C................................ 1,448 1.85 1.65 3.06 --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 10,799 1.57(e) 0.95(e) 3.73(e) 64
Class B................................ 1,827 2.32(e) 1.65(e) 3.07(e) --
Class C................................ 1,230 2.18(e) 1.65(e) 3.02(e) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(g) Expense ratios do not include expenses of the underlying funds.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
361
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD TAX-FREE MINNESOTA FUND
For the Year Ended October 31, 2006
Class A................................ $10.22 $0.41 $ 0.13 $0.54 $(0.41) $(0.02)
Class B................................ 10.23 0.33 0.14 0.47 (0.33) (0.02)
Class C................................ 10.25 0.33 0.14 0.47 (0.33) (0.02)
Class E................................ 10.28 0.41 0.13 0.54 (0.41) (0.02)
Class H................................ 10.28 0.33 0.14 0.47 (0.33) (0.02)
Class L................................ 10.25 0.40 0.14 0.54 (0.40) (0.02)
Class M................................ 10.27 0.33 0.14 0.47 (0.33) (0.02)
Class N................................ 10.27 0.33 0.14 0.47 (0.33) (0.02)
Class Y................................ 10.22 0.41 0.14 0.55 (0.41) (0.02)
For the Year Ended October 31, 2005(h)
Class A................................ 10.44 0.39 (0.22) 0.17 (0.39) --
Class B................................ 10.45 0.31 (0.21) 0.10 (0.32) --
Class C................................ 10.46 0.32 (0.21) 0.11 (0.32) --
Class E................................ 10.50 0.39 (0.21) 0.18 (0.40) --
Class H................................ 10.49 0.31 (0.20) 0.11 (0.32) --
Class L................................ 10.47 0.39 (0.22) 0.17 (0.39) --
Class M................................ 10.48 0.31 (0.20) 0.11 (0.32) --
Class N................................ 10.49 0.31 (0.21) 0.10 (0.32) --
Class Y................................ 10.44 0.40 (0.23) 0.17 (0.39) --
For the Year Ended October 31, 2004
Class A................................ 10.46 0.41 0.24 0.65 (0.40) (0.27)
Class B................................ 10.46 0.33 0.25 0.58 (0.32) (0.27)
Class C................................ 10.48 0.33 0.24 0.57 (0.32) (0.27)
Class E................................ 10.52 0.43 0.25 0.68 (0.43) (0.27)
Class H................................ 10.51 0.37 0.20 0.57 (0.32) (0.27)
Class L................................ 10.49 0.41 0.24 0.65 (0.40) (0.27)
Class M................................ 10.50 0.36 0.21 0.57 (0.32) (0.27)
Class N................................ 10.50 0.33 0.25 0.58 (0.32) (0.27)
Class Y................................ 10.47 0.43 0.24 0.67 (0.43) (0.27)
For the Year Ended October 31, 2003(h)
Class A................................ 10.46 0.38 0.05 0.43 (0.38) (0.05)
Class B................................ 10.47 0.31 0.04 0.35 (0.31) (0.05)
Class C................................ 10.48 0.31 0.05 0.36 (0.31) (0.05)
Class E................................ 10.53 0.41 0.05 0.46 (0.42) (0.05)
Class H................................ 10.52 0.30 0.06 0.36 (0.32) (0.05)
Class L................................ 10.49 0.39 0.05 0.44 (0.39) (0.05)
Class M................................ 10.49 0.31 0.07 0.38 (0.32) (0.05)
Class N................................ 10.51 0.31 0.05 0.36 (0.32) (0.05)
Class Y................................ 10.49 0.40 0.06 0.46 (0.43) (0.05)
For the Period February 19, 2002
through October 31, 2002
Class A................................ 10.29 0.26 0.16 0.42 (0.25) --
Class B................................ 10.27 0.20 0.20 0.40 (0.20) --
Class C................................ 10.27 0.20 0.21 0.41 (0.20) --
Class Y................................ 10.29 0.29 0.20 0.49 (0.29) --
For the Year Ended October 31, 2002
Class E................................ 10.45 0.40 0.07 0.47 (0.39) --
Class H................................ 10.44 0.29 0.07 0.36 (0.28) --
Class L................................ 10.42 0.37 0.06 0.43 (0.36) --
Class M................................ 10.42 0.29 0.06 0.35 (0.28) --
Class N................................ 10.44 0.29 0.06 0.35 (0.28) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD TAX-FREE MINNESOTA FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.43) $ 0.11 $10.33 5.35%
Class B................................ -- (0.35) 0.12 10.35 4.65
Class C................................ -- (0.35) 0.12 10.37 4.65
Class E................................ -- (0.43) 0.11 10.39 5.32
Class H................................ -- (0.35) 0.12 10.40 4.63
Class L................................ -- (0.42) 0.12 10.37 5.38
Class M................................ -- (0.35) 0.12 10.39 4.63
Class N................................ -- (0.35) 0.12 10.39 4.63
Class Y................................ -- (0.43) 0.12 10.34 5.44
For the Year Ended October 31, 2005(h)
Class A................................ -- (0.39) (0.22) 10.22 1.66
Class B................................ -- (0.32) (0.22) 10.23 0.91
Class C................................ -- (0.32) (0.21) 10.25 1.01
Class E................................ -- (0.40) (0.22) 10.28 1.68
Class H................................ -- (0.32) (0.21) 10.28 1.00
Class L................................ -- (0.39) (0.22) 10.25 1.62
Class M................................ -- (0.32) (0.21) 10.27 1.00
Class N................................ -- (0.32) (0.22) 10.27 0.91
Class Y................................ -- (0.39) (0.22) 10.22 1.66
For the Year Ended October 31, 2004
Class A................................ -- (0.67) (0.02) 10.44 6.37
Class B................................ -- (0.59) (0.01) 10.45 5.71
Class C................................ -- (0.59) (0.02) 10.46 5.60
Class E................................ -- (0.70) (0.02) 10.50 6.62
Class H................................ -- (0.59) (0.02) 10.49 5.61
Class L................................ -- (0.67) (0.02) 10.47 6.41
Class M................................ -- (0.59) (0.02) 10.48 5.61
Class N................................ -- (0.59) (0.01) 10.49 5.71
Class Y................................ -- (0.70) (0.03) 10.44 6.58
For the Year Ended October 31, 2003(h)
Class A................................ -- (0.43) -- 10.46 4.23
Class B................................ -- (0.36) (0.01) 10.46 3.42
Class C................................ -- (0.36) -- 10.48 3.51
Class E................................ -- (0.47) (0.01) 10.52 4.50
Class H................................ -- (0.37) (0.01) 10.51 3.46
Class L................................ -- (0.44) -- 10.49 4.34
Class M................................ -- (0.37) 0.01 10.50 3.67
Class N................................ -- (0.37) (0.01) 10.50 3.47
Class Y................................ -- (0.48) (0.02) 10.47 4.50
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- (0.25) 0.17 10.46 4.16(f)
Class B................................ -- (0.20) 0.20 10.47 3.93(f)
Class C................................ -- (0.20) 0.21 10.48 4.03(f)
Class Y................................ -- (0.29) 0.20 10.49 4.92(f)
For the Year Ended October 31, 2002
Class E................................ -- (0.39) 0.08 10.53 4.58
Class H................................ -- (0.28) 0.08 10.52 3.56
Class L................................ -- (0.36) 0.07 10.49 4.22
Class M................................ -- (0.28) 0.07 10.49 3.46
Class N................................ -- (0.28) 0.07 10.51 3.46
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD TAX-FREE MINNESOTA FUND
For the Year Ended October 31, 2006
Class A................................ $ 6,846 1.23% 0.85% 3.97% 16%
Class B................................ 804 1.98 1.57 3.25 --
Class C................................ 411 1.96 1.57 3.25 --
Class E................................ 23,819 0.86 0.83 3.99 --
Class H................................ 116 1.86 1.57 3.25 --
Class L................................ 2,648 1.11 0.87 3.95 --
Class M................................ 120 1.86 1.57 3.25 --
Class N................................ 195 1.86 1.57 3.25 --
Class Y................................ 11 0.88 0.83 3.99 --
For the Year Ended October 31, 2005(h)
Class A................................ 5,547 1.26 0.85 3.76 10
Class B................................ 814 2.02 1.60 3.01 --
Class C................................ 418 2.03 1.60 3.02 --
Class E................................ 25,770 0.87 0.87 3.72 --
Class H................................ 116 1.87 1.60 3.00 --
Class L................................ 2,890 1.12 0.90 3.70 --
Class M................................ 127 1.87 1.60 2.99 --
Class N................................ 197 1.87 1.60 3.00 --
Class Y................................ 10 0.90 0.90 3.83 --
For the Year Ended October 31, 2004
Class A................................ 4,286 1.27 0.98 3.87 13
Class B................................ 645 1.99 1.68 3.16 --
Class C................................ 321 1.98 1.69 3.15 --
Class E................................ 27,346 0.82 0.82 4.03 --
Class H................................ 116 1.82 1.68 3.16 --
Class L................................ 2,765 1.07 0.96 3.88 --
Class M................................ 206 1.82 1.70 3.14 --
Class N................................ 214 1.82 1.68 3.17 --
Class Y................................ 1 0.85 0.85 4.07 --
For the Year Ended October 31, 2003(h)
Class A................................ 3,242 1.50 1.15 3.58 17
Class B................................ 532 2.21 1.85 2.88 --
Class C................................ 414 2.09 1.85 2.88 --
Class E................................ 29,784 0.83 0.80 3.92 --
Class H................................ 155 1.81 1.78 2.89 --
Class L................................ 2,922 1.07 1.05 3.67 --
Class M................................ 454 1.82 1.80 2.92 --
Class N................................ 212 1.83 1.80 2.92 --
Class Y................................ 1 0.91 0.80 3.82 --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 2,073 1.37(e) 1.15(e) 3.57(e) 36
Class B................................ 238 2.09(e) 1.85(e) 2.73(e) --
Class C................................ 304 1.92(e) 1.85(e) 2.79(e) --
Class Y................................ 1 0.65(e) 0.65(e) 3.83(e) --
For the Year Ended October 31, 2002
Class E................................ 31,414 0.79 0.79 3.81 36
Class H................................ 577 1.81 1.81 2.81 --
Class L................................ 3,344 1.04 1.04 3.56 --
Class M................................ 562 1.79 1.79 2.81 --
Class N................................ 203 1.79 1.79 2.81 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
362
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD TAX-FREE NATIONAL FUND
For the Year Ended October 31, 2006
Class A................................ $11.13 $0.45 $ 0.29 $0.74 $(0.45) $(0.08)
Class B................................ 11.06 0.37 0.28 0.65 (0.37) (0.08)
Class C................................ 11.09 0.37 0.28 0.65 (0.37) (0.08)
Class E................................ 11.12 0.46 0.29 0.75 (0.46) (0.08)
Class H................................ 11.09 0.36 0.30 0.66 (0.37) (0.08)
Class L................................ 11.10 0.44 0.29 0.73 (0.44) (0.08)
Class M................................ 11.09 0.36 0.30 0.66 (0.37) (0.08)
Class N................................ 11.07 0.36 0.29 0.65 (0.37) (0.08)
Class Y................................ 11.11 0.46 0.29 0.75 (0.46) (0.08)
For the Year Ended October 31, 2005(h)
Class A................................ 11.22 0.43 (0.09) 0.34 (0.43) --
Class B................................ 11.15 0.35 (0.09) 0.26 (0.35) --
Class C................................ 11.18 0.35 (0.09) 0.26 (0.35) --
Class E................................ 11.21 0.45 (0.10) 0.35 (0.44) --
Class H................................ 11.18 0.35 (0.09) 0.26 (0.35) --
Class L................................ 11.19 0.43 (0.09) 0.34 (0.43) --
Class M................................ 11.18 0.35 (0.09) 0.26 (0.35) --
Class N................................ 11.16 0.35 (0.09) 0.26 (0.35) --
Class Y................................ 11.20 0.45 (0.10) 0.35 (0.44) --
For the Year Ended October 31, 2004
Class A................................ 11.07 0.45 0.32 0.77 (0.45) (0.17)
Class B................................ 11.00 0.37 0.32 0.69 (0.37) (0.17)
Class C................................ 11.02 0.37 0.33 0.70 (0.37) (0.17)
Class E................................ 11.05 0.47 0.33 0.80 (0.47) (0.17)
Class H................................ 11.03 0.46 0.23 0.69 (0.37) (0.17)
Class L................................ 11.04 0.44 0.33 0.77 (0.45) (0.17)
Class M................................ 11.03 0.36 0.33 0.69 (0.37) (0.17)
Class N................................ 11.01 0.37 0.32 0.69 (0.37) (0.17)
Class Y................................ 11.06 0.47 0.32 0.79 (0.48) (0.17)
For the Year Ended October 31, 2003
Class A................................ 11.28 0.41 0.04 0.45 (0.41) (0.25)
Class B................................ 11.21 0.33 0.04 0.37 (0.33) (0.25)
Class C................................ 11.23 0.33 0.04 0.37 (0.33) (0.25)
Class E................................ 11.27 0.45 0.03 0.48 (0.45) (0.25)
Class H................................ 11.24 0.36 0.02 0.38 (0.34) (0.25)
Class L................................ 11.25 0.42 0.04 0.46 (0.42) (0.25)
Class M................................ 11.24 0.34 0.04 0.38 (0.34) (0.25)
Class N................................ 11.22 0.33 0.05 0.38 (0.34) (0.25)
Class Y................................ 11.28 0.45 0.04 0.49 (0.46) (0.25)
For the Period February 19, 2002
through October 31, 2002
Class A................................ 10.99 0.26 0.30 0.56 (0.27) --
Class B................................ 10.97 0.20 0.25 0.45 (0.21) --
Class C................................ 10.97 0.20 0.27 0.47 (0.21) --
Class Y................................ 10.99 0.33 0.27 0.60 (0.31) --
For the Year Ended October 31, 2002
Class E................................ 11.18 0.41 0.12 0.53 (0.40) (0.04)
Class H................................ 11.15 0.32 0.11 0.43 (0.30) (0.04)
Class L................................ 11.16 0.39 0.12 0.51 (0.38) (0.04)
Class M................................ 11.15 0.31 0.12 0.43 (0.30) (0.04)
Class N................................ 11.13 0.31 0.12 0.43 (0.30) (0.04)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD TAX-FREE NATIONAL FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.53) $ 0.21 $11.34 6.82%
Class B................................ -- (0.45) 0.20 11.26 5.97
Class C................................ -- (0.45) 0.20 11.29 5.95
Class E................................ -- (0.54) 0.21 11.33 6.94
Class H................................ -- (0.45) 0.21 11.30 6.03
Class L................................ -- (0.52) 0.21 11.31 6.77
Class M................................ -- (0.45) 0.21 11.30 6.04
Class N................................ -- (0.45) 0.20 11.27 5.95
Class Y................................ -- (0.54) 0.21 11.32 6.91
For the Year Ended October 31, 2005(h)
Class A................................ -- (0.43) (0.09) 11.13 3.10
Class B................................ -- (0.35) (0.09) 11.06 2.36
Class C................................ -- (0.35) (0.09) 11.09 2.35
Class E................................ -- (0.44) (0.09) 11.12 3.20
Class H................................ -- (0.35) (0.09) 11.09 2.35
Class L................................ -- (0.43) (0.09) 11.10 3.06
Class M................................ -- (0.35) (0.09) 11.09 2.35
Class N................................ -- (0.35) (0.09) 11.07 2.36
Class Y................................ -- (0.44) (0.09) 11.11 3.20
For the Year Ended October 31, 2004
Class A................................ -- (0.62) 0.15 11.22 7.10
Class B................................ -- (0.54) 0.15 11.15 6.39
Class C................................ -- (0.54) 0.16 11.18 6.47
Class E................................ -- (0.64) 0.16 11.21 7.45
Class H................................ -- (0.54) 0.15 11.18 6.37
Class L................................ -- (0.62) 0.15 11.19 7.12
Class M................................ -- (0.54) 0.15 11.18 6.37
Class N................................ -- (0.54) 0.15 11.16 6.38
Class Y................................ -- (0.65) 0.14 11.20 7.36
For the Year Ended October 31, 2003
Class A................................ -- (0.66) (0.21) 11.07 4.18
Class B................................ -- (0.58) (0.21) 11.00 3.43
Class C................................ -- (0.58) (0.21) 11.02 3.42
Class E................................ -- (0.70) (0.22) 11.05 4.39
Class H................................ -- (0.59) (0.21) 11.03 3.47
Class L................................ -- (0.67) (0.21) 11.04 4.24
Class M................................ -- (0.59) (0.21) 11.03 3.47
Class N................................ -- (0.59) (0.21) 11.01 3.48
Class Y................................ -- (0.71) (0.22) 11.06 4.53
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- (0.27) 0.29 11.28 5.17(f)
Class B................................ -- (0.21) 0.24 11.21 4.18(f)
Class C................................ -- (0.21) 0.26 11.23 4.37(f)
Class Y................................ -- (0.31) 0.29 11.28 5.52(f)
For the Year Ended October 31, 2002
Class E................................ -- (0.44) 0.09 11.27 4.93
Class H................................ -- (0.34) 0.09 11.24 3.99
Class L................................ -- (0.42) 0.09 11.25 4.72
Class M................................ -- (0.34) 0.09 11.24 3.99
Class N................................ -- (0.34) 0.09 11.22 3.99
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD TAX-FREE NATIONAL FUND
For the Year Ended October 31, 2006
Class A................................ $71,876 1.22% 1.00% 4.06% 14%
Class B................................ 6,746 2.00 1.75 3.31 --
Class C................................ 12,889 1.97 1.75 3.31 --
Class E................................ 28,964 0.89 0.89 4.17 --
Class H................................ 189 1.89 1.75 3.30 --
Class L................................ 7,606 1.14 1.05 4.01 --
Class M................................ 1,258 1.89 1.75 3.31 --
Class N................................ 375 1.89 1.75 3.30 --
Class Y................................ 11 0.91 0.89 4.17 --
For the Year Ended October 31, 2005(h)
Class A................................ 46,163 1.26 1.00 3.88 22
Class B................................ 6,889 2.03 1.75 3.13 --
Class C................................ 8,496 1.99 1.75 3.13 --
Class E................................ 30,993 0.91 0.91 3.97 --
Class H................................ 290 1.91 1.75 3.14 --
Class L................................ 7,958 1.16 1.05 3.83 --
Class M................................ 1,294 1.91 1.75 3.13 --
Class N................................ 495 1.91 1.75 3.13 --
Class Y................................ 10 0.95 0.95 4.04 --
For the Year Ended October 31, 2004
Class A................................ 35,210 1.30 1.08 4.04 18
Class B................................ 6,236 2.01 1.78 3.32 --
Class C................................ 8,357 1.98 1.78 3.33 --
Class E................................ 32,101 0.89 0.89 4.21 --
Class H................................ 650 1.89 1.79 3.31 --
Class L................................ 7,687 1.15 1.08 4.02 --
Class M................................ 1,397 1.90 1.78 3.33 --
Class N................................ 547 1.90 1.78 3.32 --
Class Y................................ 1 0.91 0.91 4.23 --
For the Year Ended October 31, 2003
Class A................................ 21,457 1.61 1.15 3.75 35
Class B................................ 6,598 2.33 1.85 3.05 --
Class C................................ 7,588 2.21 1.85 3.06 --
Class E................................ 33,998 0.92 0.85 4.00 --
Class H................................ 1,747 1.92 1.84 2.99 --
Class L................................ 7,454 1.18 1.10 3.76 --
Class M................................ 1,235 1.92 1.84 3.01 --
Class N................................ 607 1.93 1.85 3.01 --
Class Y................................ 1 1.17 0.85 4.06 --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 12,192 1.63(e) 1.15(e) 3.31(e) 47
Class B................................ 3,764 2.33(e) 1.85(e) 2.54(e) --
Class C................................ 3,121 2.18(e) 1.85(e) 2.57(e) --
Class Y................................ 1 0.63(e) 0.63(e) 4.15(e) --
For the Year Ended October 31, 2002
Class E................................ 39,423 0.94 0.94 3.70 47
Class H................................ 2,895 1.95 1.85 2.83 --
Class L................................ 7,360 1.19 1.15 3.50 --
Class M................................ 1,552 1.95 1.85 2.80 --
Class N................................ 600 1.95 1.85 2.80 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
363
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD TAX-FREE NEW YORK FUND
For the Year Ended October 31, 2006
Class A................................ $10.32 $0.39 $ 0.23 $0.62 $(0.39) $(0.02)
Class B................................ 10.32 0.31 0.24 0.55 (0.32) (0.02)
Class C................................ 10.32 0.32 0.23 0.55 (0.32) (0.02)
For the Year Ended October 31, 2005
Class A................................ 10.42 0.36 (0.08) 0.28 (0.36) (0.02)
Class B................................ 10.42 0.28 (0.08) 0.20 (0.28) (0.02)
Class C................................ 10.42 0.28 (0.08) 0.20 (0.28) (0.02)
For the Year Ended October 31, 2004
Class A................................ 10.15 0.37 0.37 0.74 (0.39) (0.08)
Class B................................ 10.15 0.30 0.37 0.67 (0.32) (0.08)
Class C................................ 10.15 0.30 0.37 0.67 (0.32) (0.08)
From inception October 31, 2002,
through October 31, 2003
Class A................................ 10.00 0.34 0.16 0.50 (0.35) --
Class B................................ 10.00 0.27 0.16 0.43 (0.28) --
Class C................................ 10.00 0.27 0.16 0.43 (0.28) --
THE HARTFORD TOTAL RETURN BOND FUND
For the Year Ended October 31, 2006
Class A................................ 10.62 0.41 0.04 0.45 (0.42) (0.06)
Class B................................ 10.57 0.33 0.04 0.37 (0.34) (0.06)
Class C................................ 10.64 0.34 0.03 0.37 (0.34) (0.06)
Class Y................................ 10.73 0.47 0.04 0.51 (0.47) (0.06)
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 10.51 0.08 0.09 0.17 (0.08) --
For the Year Ended October 31, 2005
Class A................................ 10.95 0.35 (0.24) 0.11 (0.40) (0.04)
Class B................................ 10.90 0.27 (0.24) 0.03 (0.32) (0.04)
Class C................................ 10.97 0.29 (0.25) 0.04 (0.33) (0.04)
Class Y................................ 11.06 0.40 (0.24) 0.16 (0.45) (0.04)
For the Year Ended October 31, 2004
Class A................................ 11.14 0.32 0.21 0.53 (0.35) (0.37)
Class B................................ 11.09 0.24 0.22 0.46 (0.28) (0.37)
Class C................................ 11.12 0.27 0.23 0.50 (0.28) (0.37)
Class Y................................ 11.24 0.39 0.21 0.60 (0.41) (0.37)
For the Year Ended October 31, 2003
Class A................................ 10.78 0.49 0.48 0.97 (0.50) (0.11)
Class B................................ 10.73 0.42 0.47 0.89 (0.42) (0.11)
Class C................................ 10.77 0.42 0.46 0.88 (0.42) (0.11)
Class Y................................ 10.87 0.53 0.50 1.03 (0.55) (0.11)
For the Year Ended October 31, 2002(h)
Class A................................ 10.90 0.47 -- 0.47 (0.52) (0.07)
Class B................................ 10.85 0.40 -- 0.40 (0.45) (0.07)
Class C................................ 10.89 0.40 -- 0.40 (0.45) (0.07)
Class Y................................ 10.99 0.45 0.08 0.53 (0.58) (0.07)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD TAX-FREE NEW YORK FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.41) $ 0.21 $10.53 6.21%
Class B................................ -- (0.34) 0.21 10.53 5.41
Class C................................ -- (0.34) 0.21 10.53 5.41
For the Year Ended October 31, 2005
Class A................................ -- (0.38) (0.10) 10.32 2.66
Class B................................ -- (0.30) (0.10) 10.32 1.90
Class C................................ -- (0.30) (0.10) 10.32 1.90
For the Year Ended October 31, 2004
Class A................................ -- (0.47) 0.27 10.42 7.52
Class B................................ -- (0.40) 0.27 10.42 6.76
Class C................................ -- (0.40) 0.27 10.42 6.76
From inception October 31, 2002,
through October 31, 2003
Class A................................ -- (0.35) 0.15 10.15 5.03(f)
Class B................................ -- (0.28) 0.15 10.15 4.30(f)
Class C................................ -- (0.28) 0.15 10.15 4.30(f)
THE HARTFORD TOTAL RETURN BOND FUND
For the Year Ended October 31, 2006
Class A................................ -- (0.48) (0.03) 10.59 4.35
Class B................................ -- (0.40) (0.03) 10.54 3.56
Class C................................ -- (0.40) (0.03) 10.61 3.63
Class Y................................ -- (0.53) (0.02) 10.71 4.89
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ -- (0.08) 0.09 10.60 1.58(f)
For the Year Ended October 31, 2005
Class A................................ -- (0.44) (0.33) 10.62 1.00
Class B................................ -- (0.36) (0.33) 10.57 0.25
Class C................................ -- (0.37) (0.33) 10.64 0.34
Class Y................................ -- (0.49) (0.33) 10.73 1.45
For the Year Ended October 31, 2004
Class A................................ -- (0.72) (0.19) 10.95 5.10(i)
Class B................................ -- (0.65) (0.19) 10.90 4.37(i)
Class C................................ -- (0.65) (0.15) 10.97 4.76(i)
Class Y................................ -- (0.78) (0.18) 11.06 5.64
For the Year Ended October 31, 2003
Class A................................ -- (0.61) 0.36 11.14 9.16
Class B................................ -- (0.53) 0.36 11.09 8.44
Class C................................ -- (0.53) 0.35 11.12 8.31
Class Y................................ -- (0.66) 0.37 11.24 9.68
For the Year Ended October 31, 2002(h)
Class A................................ -- (0.59) (0.12) 10.78 4.50
Class B................................ -- (0.52) (0.12) 10.73 3.77
Class C................................ -- (0.52) (0.12) 10.77 3.80
Class Y................................ -- (0.65) (0.12) 10.87 5.01
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD TAX-FREE NEW YORK FUND
For the Year Ended October 31, 2006
Class A................................ $ 11,182 1.03% 0.85% 3.78% 25%
Class B................................ 1,808 1.79 1.60 3.03 --
Class C................................ 2,492 1.78 1.60 3.03 --
For the Year Ended October 31, 2005
Class A................................ 11,202 1.03 0.85 3.45 23
Class B................................ 1,794 1.80 1.60 2.70 --
Class C................................ 2,677 1.79 1.60 2.70 --
For the Year Ended October 31, 2004
Class A................................ 10,541 1.04 0.91 3.66 24
Class B................................ 1,568 1.74 1.61 2.96 --
Class C................................ 1,973 1.75 1.62 2.95 --
From inception October 31, 2002,
through October 31, 2003
Class A................................ 8,602 1.63(e) 0.95(e) 3.34(e) 54
Class B................................ 1,051 2.38(e) 1.65(e) 2.64(e) --
Class C................................ 1,393 2.26(e) 1.65(e) 2.67(e) --
THE HARTFORD TOTAL RETURN BOND FUND
For the Year Ended October 31, 2006
Class A................................ 432,703 1.20 1.20 3.98 347
Class B................................ 79,506 2.02 1.95 3.20 --
Class C................................ 75,194 1.87 1.87 3.29 --
Class Y................................ 285,255 0.70 0.70 4.48 --
From August 31, 2006, (commencement of
operations) through October 31, 2006
Class I................................ 38 1.01(e) 0.91(e) 4.78(e) --
For the Year Ended October 31, 2005
Class A................................ 311,557 1.24 1.20 3.24 195
Class B................................ 81,028 2.00 1.95 2.49 --
Class C................................ 74,039 1.87 1.87 2.56 --
Class Y................................ 188,156 0.73 0.73 3.73 --
For the Year Ended October 31, 2004
Class A................................ 298,903 1.27 1.25 2.98 171
Class B................................ 91,861 1.97 1.95 2.28 --
Class C................................ 89,504 1.86 1.86 2.37 --
Class Y................................ 101,360 0.74 0.74 3.48 --
For the Year Ended October 31, 2003
Class A................................ 268,655 1.40 1.25 3.39 199
Class B................................ 106,077 2.13 1.95 2.70 --
Class C................................ 110,214 2.01 1.95 2.71 --
Class Y................................ 60,125 0.81 0.80 3.82 --
For the Year Ended October 31, 2002(h)
Class A................................ 215,083 1.42 1.25 4.65 149
Class B................................ 98,028 2.10 1.95 3.92 --
Class C................................ 107,479 1.98 1.95 3.92 --
Class Y................................ 39,778 0.78 0.78 5.16 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
(i) Without the inclusion of the Payment from Affiliate, the total return would
have been 5.08%, 4.35% and 4.57% for Classes A, B and C, respectively. The
net asset impact of the Payment from Affiliate was less than $0.01 for
Classes A and B and $0.01 for Class C.
The accompanying notes are an integral part of these financial statements.
364
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD U.S. GOVERNMENT SECURITIES
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $9.22 $0.42 $(0.08) $ 0.34 $(0.43) $ --
Class B................................ 9.27 0.35 (0.08) 0.27 (0.36) --
Class C................................ 9.27 0.35 (0.08) 0.27 (0.36) --
Class E................................ 9.30 0.45 (0.08) 0.37 (0.46) --
Class H................................ 9.26 0.36 (0.08) 0.28 (0.37) --
Class L................................ 9.31 0.43 (0.08) 0.35 (0.44) --
Class M................................ 9.27 0.36 (0.08) 0.28 (0.37) --
Class N................................ 9.26 0.36 (0.08) 0.28 (0.37) --
Class Y................................ 9.32 0.41 (0.07) 0.34 (0.46) --
For the Year Ended October 31, 2005
Class A................................ 9.65 0.40 (0.32) 0.08 (0.41) --
Class B................................ 9.62 0.32 (0.34) (0.02) (0.33) --
Class C................................ 9.61 0.32 (0.33) (0.01) (0.33) --
Class E................................ 9.64 0.43 (0.33) 0.10 (0.44) --
Class H................................ 9.61 0.35 (0.35) -- (0.35) --
Class L................................ 9.65 0.41 (0.34) 0.07 (0.41) --
Class M................................ 9.61 0.34 (0.33) 0.01 (0.35) --
Class N................................ 9.60 0.33 (0.32) 0.01 (0.35) --
Class Y................................ 9.66 0.41 (0.31) 0.10 (0.44) --
For the Year Ended October 31, 2004
Class A................................ 9.67 0.40 (0.01) 0.39 (0.41) --
Class B................................ 9.64 0.32 -- 0.32 (0.34) --
Class C................................ 9.63 0.32 -- 0.32 (0.34) --
Class E................................ 9.66 0.44 (0.02) 0.42 (0.44) --
Class H................................ 9.63 0.35 (0.02) 0.33 (0.35) --
Class L................................ 9.67 0.41 (0.01) 0.40 (0.42) --
Class M................................ 9.63 0.34 (0.01) 0.33 (0.35) --
Class N................................ 9.63 0.34 (0.02) 0.32 (0.35) --
Class Y................................ 9.68 0.44 (0.02) 0.42 (0.44) --
For the Year Ended October 31, 2003
Class A................................ 9.88 0.41 (0.21) 0.20 (0.41) --
Class B................................ 9.84 0.33 (0.19) 0.14 (0.34) --
Class C................................ 9.84 0.33 (0.20) 0.13 (0.34) --
Class E................................ 9.87 0.45 (0.20) 0.25 (0.46) --
Class H................................ 9.83 0.35 (0.19) 0.16 (0.36) --
Class L................................ 9.87 0.42 (0.19) 0.23 (0.43) --
Class M................................ 9.84 0.35 (0.20) 0.15 (0.36) --
Class N................................ 9.84 0.35 (0.20) 0.15 (0.36) --
Class Y................................ 9.89 0.45 (0.20) 0.25 (0.46) --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 9.50 0.26 0.38 0.64 (0.26) --
Class B................................ 9.46 0.21 0.38 0.59 (0.21) --
Class C................................ 9.46 0.21 0.38 0.59 (0.21) --
Class Y................................ 9.50 0.32 0.36 0.68 (0.29) --
For the Year Ended October 31, 2002
Class E................................ 9.67 0.42 0.19 0.61 (0.41) --
Class H................................ 9.64 0.32 0.19 0.51 (0.32) --
Class L................................ 9.67 0.39 0.20 0.59 (0.39) --
Class M................................ 9.64 0.32 0.20 0.52 (0.32) --
Class N................................ 9.64 0.32 0.20 0.52 (0.32) --
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD U.S. GOVERNMENT SECURITIES
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(0.43) $(0.09) $9.23 3.77%
Class B................................ -- (0.36) (0.09) 9.18 3.01
Class C................................ -- (0.36) (0.09) 9.18 3.01
Class E................................ -- (0.46) (0.09) 9.21 4.12
Class H................................ -- (0.37) (0.09) 9.17 3.08
Class L................................ -- (0.44) (0.09) 9.22 3.86
Class M................................ -- (0.37) (0.09) 9.18 3.08
Class N................................ -- (0.37) (0.09) 9.17 3.09
Class Y................................ -- (0.46) (0.12) 9.20 3.75
For the Year Ended October 31, 2005
Class A................................ -- (0.41) (0.33) 9.32 0.79
Class B................................ -- (0.33) (0.35) 9.27 (0.17)
Class C................................ -- (0.33) (0.34) 9.27 (0.07)
Class E................................ -- (0.44) (0.34) 9.30 1.02
Class H................................ -- (0.35) (0.35) 9.26 (0.07)
Class L................................ -- (0.41) (0.34) 9.31 0.77
Class M................................ -- (0.35) (0.34) 9.27 0.04
Class N................................ -- (0.35) (0.34) 9.26 0.04
Class Y................................ -- (0.44) (0.34) 9.32 1.04
For the Year Ended October 31, 2004
Class A................................ -- (0.41) (0.02) 9.65 4.08
Class B................................ -- (0.34) (0.02) 9.62 3.37
Class C................................ -- (0.34) (0.02) 9.61 3.37
Class E................................ -- (0.44) (0.02) 9.64 4.50
Class H................................ -- (0.35) (0.02) 9.61 3.48
Class L................................ -- (0.42) (0.02) 9.65 4.24
Class M................................ -- (0.35) (0.02) 9.61 3.47
Class N................................ -- (0.35) (0.03) 9.60 3.37
Class Y................................ -- (0.44) (0.02) 9.66 4.48
For the Year Ended October 31, 2003
Class A................................ -- (0.41) (0.21) 9.67 2.06
Class B................................ -- (0.34) (0.20) 9.64 1.45
Class C................................ -- (0.34) (0.21) 9.63 1.34
Class E................................ -- (0.46) (0.21) 9.66 2.49
Class H................................ -- (0.36) (0.20) 9.63 1.57
Class L................................ -- (0.43) (0.20) 9.67 2.32
Class M................................ -- (0.36) (0.21) 9.63 1.47
Class N................................ -- (0.36) (0.21) 9.63 1.47
Class Y................................ -- (0.46) (0.21) 9.68 2.51
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- (0.26) 0.38 9.88 6.87(f)
Class B................................ -- (0.21) 0.38 9.84 6.36(f)
Class C................................ -- (0.21) 0.38 9.84 6.36(f)
Class Y................................ -- (0.29) 0.39 9.89 7.32(f)
For the Year Ended October 31, 2002
Class E................................ -- (0.41) 0.20 9.87 6.55
Class H................................ -- (0.32) 0.19 9.83 5.41
Class L................................ -- (0.39) 0.20 9.87 6.29
Class M................................ -- (0.32) 0.20 9.84 5.51
Class N................................ -- (0.32) 0.20 9.84 5.52
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD U.S. GOVERNMENT SECURITIES
FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ 45,851 1.39% 1.15% 4.60% 158%
Class B................................ 17,011 2.20 1.90 3.84 --
Class C................................ 9,698 2.08 1.90 3.86 --
Class E................................ 89,487 0.83 0.83 4.92 --
Class H................................ 1,922 1.83 1.83 3.91 --
Class L................................ 30,712 1.08 1.08 4.67 --
Class M................................ 2,099 1.83 1.83 3.91 --
Class N................................ 686 1.83 1.83 3.92 --
Class Y................................ 101 0.85 0.83 4.86 --
For the Year Ended October 31, 2005
Class A................................ 47,252 1.38 1.15 4.17 108
Class B................................ 21,268 2.17 1.90 3.41 --
Class C................................ 9,631 2.05 1.90 3.41 --
Class E................................ 105,381 0.83 0.83 4.49 --
Class H................................ 2,720 1.82 1.82 3.48 --
Class L................................ 34,880 1.08 1.08 4.24 --
Class M................................ 2,756 1.82 1.82 3.48 --
Class N................................ 844 1.82 1.82 3.49 --
Class Y................................ 9,244 0.86 0.86 4.52 --
For the Year Ended October 31, 2004
Class A................................ 53,401 1.38 1.20 4.09 110
Class B................................ 26,218 2.11 1.90 3.39 --
Class C................................ 13,926 2.00 1.90 3.38 --
Class E................................ 119,923 0.79 0.79 4.50 --
Class H................................ 3,914 1.79 1.79 3.49 --
Class L................................ 38,613 1.04 1.04 4.26 --
Class M................................ 3,697 1.79 1.79 3.50 --
Class N................................ 1,056 1.79 1.79 3.49 --
Class Y................................ 1 0.83 0.83 4.51 --
For the Year Ended October 31, 2003
Class A................................ 65,337 1.48 1.20 4.11 108
Class B................................ 38,210 2.21 1.90 3.41 --
Class C................................ 26,626 2.07 1.90 3.43 --
Class E................................ 135,954 0.81 0.81 4.49 --
Class H................................ 6,283 1.80 1.80 3.50 --
Class L................................ 43,202 1.06 1.06 4.24 --
Class M................................ 4,588 1.80 1.80 3.50 --
Class N................................ 1,388 1.80 1.80 3.49 --
Class Y................................ 1 0.87 0.80 4.50 --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 75,245 1.59(e) 1.20(e) 3.58(e) 218
Class B................................ 39,276 2.28(e) 1.90(e) 2.87(e) --
Class C................................ 40,708 2.11(e) 1.90(e) 2.86(e) --
Class Y................................ 1 0.74(e) 0.74(e) 4.36(e) --
For the Year Ended October 31, 2002
Class E................................ 156,085 0.81 0.81 4.45 218
Class H................................ 9,319 1.81 1.81 3.45 --
Class L................................ 49,048 1.06 1.06 4.20 --
Class M................................ 6,660 1.81 1.81 3.44 --
Class N................................ 1,717 1.81 1.81 3.47 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
The accompanying notes are an integral part of these financial statements.
365
THE HARTFORD MUTUAL FUNDS, INC. AND THE 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 TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD VALUE FUND
For the Year Ended October 31, 2006
Class A................................ $10.79 $ 0.09 $ 2.11 $ 2.20 $(0.08) $ --
Class B................................ 10.62 0.01 2.08 2.09 -- --
Class C................................ 10.62 0.01 2.08 2.09 -- --
Class Y................................ 10.79 0.15 2.10 2.25 (0.13) --
For the Year Ended October 31, 2005
Class A................................ 9.71 0.08 1.04 1.12 (0.04) --
Class B................................ 9.60 -- 1.02 1.02 -- --
Class C................................ 9.60 -- 1.02 1.02 -- --
Class Y................................ 9.71 0.12 1.05 1.17 (0.09) --
For the Year Ended October 31, 2004(h)
Class A................................ 8.92 0.07 0.79 0.86 (0.07) --
Class B................................ 8.83 0.01 0.78 0.79 (0.02) --
Class C................................ 8.83 0.01 0.78 0.79 (0.02) --
Class Y................................ 8.95 0.10 0.77 0.87 (0.11) --
For the Year Ended October 31, 2003(h)
Class A................................ 7.59 0.08 1.31 1.39 (0.06) --
Class B................................ 7.51 0.03 1.29 1.32 -- --
Class C................................ 7.51 0.03 1.29 1.32 -- --
Class Y................................ 7.64 0.16 1.25 1.41 (0.10) --
For the Year Ended October 31, 2002(h)
Class A................................ 9.02 0.05 (1.43) (1.38) -- (0.05)
Class B................................ 8.99 (0.02) (1.41) (1.43) -- (0.05)
Class C................................ 8.99 (0.02) (1.41) (1.43) -- (0.05)
Class Y................................ 9.04 0.09 (1.44) (1.35) -- (0.05)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD VALUE FUND
For the Year Ended October 31, 2006
Class A................................ $ -- $(0.08) $ 2.12 $12.91 20.52%
Class B................................ -- -- 2.09 12.71 19.68
Class C................................ -- -- 2.09 12.71 19.68
Class Y................................ -- (0.13) 2.12 12.91 21.07
For the Year Ended October 31, 2005
Class A................................ -- (0.04) 1.08 10.79 11.50
Class B................................ -- -- 1.02 10.62 10.62
Class C................................ -- -- 1.02 10.62 10.62
Class Y................................ -- (0.09) 1.08 10.79 12.06
For the Year Ended October 31, 2004(h)
Class A................................ -- (0.07) 0.79 9.71 9.70
Class B................................ -- (0.02) 0.77 9.60 8.91
Class C................................ -- (0.02) 0.77 9.60 8.91
Class Y................................ -- (0.11) 0.76 9.71 9.76
For the Year Ended October 31, 2003(h)
Class A................................ -- (0.06) 1.33 8.92 18.43
Class B................................ -- -- 1.32 8.83 17.58
Class C................................ -- -- 1.32 8.83 17.58
Class Y................................ -- (0.10) 1.31 8.95 18.66
For the Year Ended October 31, 2002(h)
Class A................................ -- (0.05) (1.43) 7.59 (15.42)
Class B................................ -- (0.05) (1.48) 7.51 (16.03)
Class C................................ -- (0.05) (1.48) 7.51 (16.03)
Class Y................................ -- (0.05) (1.40) 7.64 (15.05)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD VALUE FUND
For the Year Ended October 31, 2006
Class A................................ $79,476 1.38% 1.38% 0.89% 50%
Class B................................ 11,957 2.29 2.13 0.15 --
Class C................................ 12,943 2.15 2.15 0.12 --
Class Y................................ 72,054 0.92 0.92 1.36 --
For the Year Ended October 31, 2005
Class A................................ 63,417 1.41 1.40 0.76 29
Class B................................ 10,091 2.34 2.15 0.01 --
Class C................................ 10,238 2.19 2.15 0.02 --
Class Y................................ 60,218 0.93 0.93 1.19 --
For the Year Ended October 31, 2004(h)
Class A................................ 56,845 1.46 1.45 0.76 34
Class B................................ 8,948 2.36 2.15 0.06 --
Class C................................ 10,838 2.17 2.15 0.06 --
Class Y................................ 21,373 0.91 0.91 1.32 --
For the Year Ended October 31, 2003(h)
Class A................................ 42,101 1.57 1.45 1.02 35
Class B................................ 7,305 2.30 2.15 0.32 --
Class C................................ 10,231 2.18 2.15 0.32 --
Class Y................................ 27 1.00 1.00 1.46 --
For the Year Ended October 31, 2002(h)
Class A................................ 30,010 1.63 1.45 0.69 35
Class B................................ 5,222 2.31 2.15 (0.02) --
Class C................................ 9,110 2.21 2.15 (0.04) --
Class Y................................ 230 0.98 0.98 1.09 --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
366
- --------------------------------------------------------------------------------
<Table>
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
-------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS
--------- ---------- ------------ ---------- ---------- -------------
THE HARTFORD VALUE OPPORTUNITIES FUND
For the Year Ended October 31, 2006(h)
Class A................................ $15.56 $ 0.09 $ 3.11 $ 3.20 $ -- $(0.50)
Class B................................ 14.56 (0.03) 2.89 2.86 -- (0.50)
Class C................................ 14.56 (0.04) 2.90 2.86 -- (0.50)
Class H................................ 14.58 (0.01) 2.90 2.89 -- (0.50)
Class L................................ 15.58 0.12 3.11 3.23 (0.02) (0.50)
Class M................................ 14.57 (0.01) 2.89 2.88 -- (0.50)
Class N................................ 14.58 (0.01) 2.90 2.89 -- (0.50)
Class Y................................ 15.74 0.15 3.15 3.30 (0.06) (0.50)
From August 31, 2006, (commencement of
operations) through October 31,
2006(h)
Class I................................ 17.12 0.01 1.14 1.15 -- --
For the Year Ended October 31, 2005
Class A................................ 14.06 0.03 1.47 1.50 -- --
Class B................................ 13.24 (0.05) 1.37 1.32 -- --
Class C................................ 13.25 (0.05) 1.36 1.31 -- --
Class H................................ 13.25 (0.05) 1.38 1.33 -- --
Class L................................ 14.06 0.07 1.45 1.52 -- --
Class M................................ 13.24 (0.05) 1.38 1.33 -- --
Class N................................ 13.26 (0.05) 1.37 1.32 -- --
Class Y................................ 14.17 0.05 1.52 1.57 -- --
For the Year Ended October 31, 2004
Class A................................ 12.15 0.01 1.90 1.91 -- --
Class B................................ 11.53 (0.06) 1.77 1.71 -- --
Class C................................ 11.53 (0.06) 1.78 1.72 -- --
Class H................................ 11.54 (0.10) 1.81 1.71 -- --
Class L................................ 12.15 -- 1.91 1.91 -- --
Class M................................ 11.53 (0.09) 1.80 1.71 -- --
Class N................................ 11.54 (0.09) 1.81 1.72 -- --
Class Y................................ 12.22 0.01 1.94 1.95 -- --
For the Year Ended October 31, 2003
Class A................................ 9.26 (0.01) 2.90 2.89 -- --
Class B................................ 8.84 (0.04) 2.73 2.69 -- --
Class C................................ 8.85 (0.04) 2.72 2.68 -- --
Class H................................ 8.85 (0.08) 2.77 2.69 -- --
Class L................................ 9.26 (0.01) 2.90 2.89 -- --
Class M................................ 8.85 (0.08) 2.76 2.68 -- --
Class N................................ 8.85 (0.08) 2.77 2.69 -- --
Class Y................................ 9.30 0.01 2.91 2.92 -- --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 11.73 -- (2.47) (2.47) -- --
Class B................................ 11.26 (0.02) (2.40) (2.42) -- --
Class C................................ 11.26 (0.02) (2.39) (2.41) -- --
Class Y................................ 11.73 0.05 (2.48) (2.43) -- --
For the Year Ended October 31, 2002
Class H................................ 11.58 (0.11) (1.81) (1.92) -- (0.81)
Class L................................ 11.99 -- (1.92) (1.92) -- (0.81)
Class M................................ 11.57 (0.08) (1.83) (1.91) -- (0.81)
Class N................................ 11.57 (0.13) (1.78) (1.91) -- (0.81)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
--------------------------------------------------------------------
NET
INCREASE NET ASSET
DISTRIBUTIONS (DECREASE) VALUE AT
FROM TOTAL IN NET ASSET END TOTAL
CAPITAL DISTRIBUTIONS VALUE OF PERIOD RETURN(B)
------------- ------------- ------------ --------- ---------
THE HARTFORD VALUE OPPORTUNITIES FUND
For the Year Ended October 31, 2006(h)
Class A................................ $ -- $(0.50) $ 2.70 $18.26 21.12%
Class B................................ -- (0.50) 2.36 16.92 20.21
Class C................................ -- (0.50) 2.36 16.92 20.20
Class H................................ -- (0.50) 2.39 16.97 20.39
Class L................................ -- (0.52) 2.71 18.29 21.31
Class M................................ -- (0.50) 2.38 16.95 20.33
Class N................................ -- (0.50) 2.39 16.97 20.39
Class Y................................ -- (0.56) 2.74 18.48 21.55
From August 31, 2006, (commencement of
operations) through October 31,
2006(h)
Class I................................ -- -- 1.15 18.27 6.72(f)
For the Year Ended October 31, 2005
Class A................................ -- -- 1.50 15.56 10.67
Class B................................ -- -- 1.32 14.56 9.97
Class C................................ -- -- 1.31 14.56 9.89
Class H................................ -- -- 1.33 14.58 10.04
Class L................................ -- -- 1.52 15.58 10.81
Class M................................ -- -- 1.33 14.57 10.05
Class N................................ -- -- 1.32 14.58 9.96
Class Y................................ -- -- 1.57 15.74 11.08
For the Year Ended October 31, 2004
Class A................................ -- -- 1.91 14.06 15.72
Class B................................ -- -- 1.71 13.24 14.83
Class C................................ -- -- 1.72 13.25 14.92
Class H................................ -- -- 1.71 13.25 14.82
Class L................................ -- -- 1.91 14.06 15.72
Class M................................ -- -- 1.71 13.24 14.83
Class N................................ -- -- 1.72 13.26 14.90
Class Y................................ -- -- 1.95 14.17 15.96
For the Year Ended October 31, 2003
Class A................................ -- -- 2.89 12.15 31.21
Class B................................ -- -- 2.69 11.53 30.43
Class C................................ -- -- 2.68 11.53 30.28
Class H................................ -- -- 2.69 11.54 30.40
Class L................................ -- -- 2.89 12.15 31.21
Class M................................ -- -- 2.68 11.53 30.28
Class N................................ -- -- 2.69 11.54 30.40
Class Y................................ -- -- 2.92 12.22 31.40
For the Period February 19, 2002
through October 31, 2002
Class A................................ -- -- (2.47) 9.26 (21.06)(f)
Class B................................ -- -- (2.42) 8.84 (21.45)(f)
Class C................................ -- -- (2.41) 8.85 (21.41)(f)
Class Y................................ -- -- (2.43) 9.30 (20.75)(f)
For the Year Ended October 31, 2002
Class H................................ -- (0.81) (2.73) 8.85 (17.99)
Class L................................ -- (0.81) (2.73) 9.26 (17.34)
Class M................................ -- (0.81) (2.72) 8.85 (17.92)
Class N................................ -- (0.81) (2.72) 8.85 (17.92)
<Caption>
-- SELECTED PER-SHARE DATA(A) -- RATIOS AND SUPPLEMENTAL DATA --
------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES EXPENSES RATIO OF
TO AVERAGE TO AVERAGE NET
NET ASSETS NET ASSETS NET ASSETS INVESTMENT
AT END OF BEFORE AFTER INCOME (LOSS) PORTFOLIO
PERIOD WAIVERS AND WAIVERS AND TO AVERAGE TURNOVER
(000'S) REIMBURSEMENTS(D) REIMBURSEMENTS(D) NET ASSETS RATE(C)
---------- ----------------- ----------------- ------------- ---------
THE HARTFORD VALUE OPPORTUNITIES FUND
For the Year Ended October 31, 2006(h)
Class A................................ $111,324 1.52% 1.40% 0.51% 57%
Class B................................ 18,271 2.38 2.12 (0.20) --
Class C................................ 22,466 2.22 2.15 (0.24) --
Class H................................ 3,634 1.97 1.97 (0.07) --
Class L................................ 32,983 1.23 1.23 0.68 --
Class M................................ 7,000 1.98 1.98 (0.07) --
Class N................................ 2,087 1.98 1.98 (0.07) --
Class Y................................ 102,915 1.00 1.00 0.90 --
From August 31, 2006, (commencement of
operations) through October 31,
2006(h)
Class I................................ 12 1.38(e) 1.15(e) 0.12(e) --
For the Year Ended October 31, 2005
Class A................................ 66,368 1.62 1.40 0.27 38
Class B................................ 13,560 2.51 2.15 (0.47) --
Class C................................ 13,258 2.33 2.15 (0.47) --
Class H................................ 4,645 2.06 2.06 (0.27) --
Class L................................ 27,674 1.30 1.30 0.45 --
Class M................................ 7,443 2.06 2.06 (0.28) --
Class N................................ 2,004 2.06 2.06 (0.29) --
Class Y................................ 95,974 1.07 1.07 0.55 --
For the Year Ended October 31, 2004
Class A................................ 24,601 1.82 1.45 0.08 52
Class B................................ 5,709 2.70 2.15 (0.64) --
Class C................................ 5,627 2.47 2.15 (0.64) --
Class H................................ 5,815 2.17 2.15 (0.71) --
Class L................................ 25,687 1.42 1.42 0.04 --
Class M................................ 8,139 2.17 2.15 (0.70) --
Class N................................ 2,143 2.17 2.15 (0.70) --
Class Y................................ 10,101 1.16 1.16 0.34 --
For the Year Ended October 31, 2003
Class A................................ 5,917 1.92 1.45 (0.10) 57
Class B................................ 1,932 2.63 2.15 (0.80) --
Class C................................ 1,613 2.51 2.15 (0.81) --
Class H................................ 6,526 2.26 2.15 (0.82) --
Class L................................ 22,701 1.51 1.45 (0.11) --
Class M................................ 8,015 2.26 2.15 (0.82) --
Class N................................ 1,989 2.26 2.15 (0.82) --
Class Y................................ 1 1.33 1.25 0.08 --
For the Period February 19, 2002
through October 31, 2002
Class A................................ 2,600 1.92(e) 1.45(e) 0.04(e) 70
Class B................................ 481 2.61(e) 2.15(e) (0.71)(e) --
Class C................................ 430 2.48(e) 2.15(e) (0.75)(e) --
Class Y................................ 1 1.13(e) 1.00(e) 0.49(e) --
For the Year Ended October 31, 2002
Class H................................ 5,634 2.17 2.15 (0.82) 70
Class L................................ 19,684 1.43 1.43 (0.11) --
Class M................................ 6,669 2.18 2.15 (0.82) --
Class N................................ 1,749 2.18 2.15 (0.83) --
</Table>
- ---------------
(a) Information presented relates to a share outstanding throughout the
indicated period.
(b) 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.
(c) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Ratios do not include fees paid indirectly. Please see Note 3(d).
(e) Annualized.
(f) Not annualized.
(h) Per share amounts have been calculated using average shares outstanding
method.
The accompanying notes are an integral part of these financial statements.
367
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
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 Mutual Funds, Inc. (comprising,
respectively, The Hartford Advisers Fund, The Hartford Aggressive Growth
Allocation Fund, The Hartford Balanced Allocation Fund, The Hartford Balanced
Income Fund, The Hartford Capital Appreciation Fund, The Hartford Capital
Appreciation II Fund, The Hartford Conservative Allocation Fund, The Hartford
Disciplined Equity Fund, The Hartford Dividend and Growth Fund, The Hartford
Equity Income Fund, The Hartford Floating Rate 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 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 Growth Fund, The Hartford MidCap Value Fund, The Hartford Money
Market Fund, The Hartford Retirement Income Fund, The Hartford Select MidCap
Growth Fund, The Hartford Select MidCap Value Fund, The Hartford Select SmallCap
Growth Fund, The Hartford Select SmallCap Value Fund, The Hartford Short
Duration Fund, The Hartford Small Company Fund, The Hartford Stock Fund, The
Hartford Target Retirement 2010 Fund, The Hartford Target Retirement 2020 Fund,
The Hartford Target Retirement 2030 Fund, The Hartford Tax-Free California Fund,
The Hartford Tax Free New York Fund, The Hartford Total Return Bond Fund, and
The Hartford Value Fund) and The Hartford Mutual Funds II, Inc. (comprising,
respectively, The Hartford Growth Fund, The Hartford Growth Opportunities Fund,
The Hartford SmallCap Growth Fund, The Hartford Tax-Free Minnesota Fund, The
Hartford Tax-Free National Fund, The Hartford U.S. Government Securities Fund,
and The Hartford Value Opportunities Fund) (collectively, the "Funds") as of
October 31, 2006, and the related statements of operations, statements of
changes in net assets, statement of cash flows of The Hartford Total Return Bond
Fund, and the financial highlights for each of the periods indicated therein.
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.
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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian,
agent banks or brokers or by other appropriate auditing procedures where replies
from agent banks or brokers were not received. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds listed above constituting The Hartford Mutual Funds, Inc. and The
Hartford Mutual Funds II, Inc. at October 31, 2006, the results of their
operations, cash flows of The Hartford Total Return Bond Fund, the changes in
their net assets, and their financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
Minneapolis, Minnesota
December 13, 2006
368
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTORS AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
The Board of Directors elects officers who are responsible for the day-to-day
operations of the Funds and who execute policies formulated by the Directors.
Each director serves until his or her death, resignation, or retirement or until
the next meeting of shareholders is held or until his or her successor is
elected and qualifies.
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 chart 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 88 funds. Mr. Znamierowski oversees
87 funds and serves as a director only for The Hartford Mutual Funds, Inc., The
Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS
Series Fund II, 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 Ms. Settimi may be sent to 500 Bielenberg
Drive, 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.
Information on the aggregate remuneration paid to the directors by each Fund can
be found in the Statement of Operations herein. The Funds do not pay salaries or
compensation to any of their officers or directors who are employed by The
Hartford.
NON-INTERESTED DIRECTORS
LYNN S. BIRDSONG (age 60) Director since 2003, Chairman of the Litigation
Committee; Co-Chairman of the Investment Committee
Since 1981, Mr. Birdsong has been a partner in Birdsong Company, an
advertising specialty firm. Since 2003, Mr. Birdsong has been an
independent director of The Japan Fund. From 2003 to March 2005, Mr.
Birdsong was an independent director of the Atlantic Whitehall Funds. From
1979 to 2002, Mr. Birdsong was a managing director of Zurich Scudder
Investments, an investment management firm. During his employment with
Scudder, Mr. Birdsong was an interested director of The Japan Fund.
ROBERT M. GAVIN (age 66) Director since 2002 (MF) and 1986(MF2), Chairman of the
Board since 2004
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.
DUANE E. HILL (age 61) Director since 2001 (MF) and 2002 (MF2), Chairman of the
Nominating Committee
Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment
company that invests primarily in minority-owned small businesses. Mr. Hill
is a former partner of TSG Capital Group, a private equity investment firm
that serves as sponsor and lead investor in leveraged buyouts of middle
market companies.
SANDRA S. JAFFEE* (age 65) Director since 2005
Ms. Jaffee is Chief Executive Officer of Fortent (formerly Searchspace
Group), a leading provider of compliance/regulatory technology to financial
institutions. Ms. Jaffee served as an Entrepreneur in Residence with
Warburg Pincus, a private equity firm, from August 2004 to August 2005.
From September 1995 to July 2004, Ms. Jaffee served as Executive Vice
President at Citigroup, where she was President and CEO of Citibank's
Global Securities Services.
* Ms. Jaffee is a consultant for a controlling shareholder of Institutional
Shareholder Services, Inc., an unaffiliated third party corporate
governance research service company ("ISS"), and serves as a director of
ISS and as a member of the Executive Committee of ISS' Board of
Directors. From time to time, ISS may provide in-depth analyses of
shareholder meeting agendas, vote recommendations, record-keeping or vote
disclosure services to certain of the sub-advisers.
WILLIAM P. JOHNSTON (age 62) Director since 2005, Chairman of the Compliance
Committee
In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle
Group, a global private equity investment firm. In May 2006, Mr. Johnston
was elected to the Supervisory Board of Fresenius Medical Care AG & Co.
KGaA, after its acquisition of Renal Care Group, Inc. in March 2006. Mr.
Johnston joined Renal Care Group in November 2002 as a member of the Board
of Directors and served as Chairman of the Board from March 2003 through
March 2006. From September 1987 to December 2002, Mr. Johnston was with
Equitable Securities Corporation (and its successors, SunTrust Equitable
Securities and SunTrust Robinson Humphrey) serving in various investment
banking and managerial positions, including Managing Director and Head of
Investment Banking, Chief Executive Officer and Vice Chairman.
PHILLIP O. PETERSON (age 62) Director since 2002 (MF) and 2000 (MF2), Chairman
of the Audit Committee
Mr. Peterson is a mutual fund industry consultant. From January 2004 to
April 2005, Mr. Peterson served as Independent President of the Strong
Mutual Funds.
LEMMA W. SENBET (age 60) Director since 2005
Since 1998, Dr. Senbet has been Chair of the Finance Department at the
University of Maryland, Robert H. Smith School of Business, where he has
been the William E. Mayer Chair Professor of Finance since 1990. Previously
he was a chair professor of finance at the University of Wisconsin-Madison.
In addition, Dr. Senbet previously served as an independent director of the
Fortis Funds from March 2000 until July 2002.
369
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTORS AND OFFICERS (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS
THOMAS M. MARRA (age 48) 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. 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 served as Chairman of the Board of Hartford Mutual
Funds from 2002 to 2004.
LOWNDES A. SMITH (age 67) Director since 2002, Co-Chairman of the Investment
Committee
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.
DAVID M. ZNAMIEROWSKI (age 46) Director since 1999 (MF) and 2005 (MF2),
President since 2001
Mr. Znamierowski currently serves as President of Hartford Investment
Management Company ("Hartford Investment Management"), Executive Vice
President and Chief Investment Officer for The Hartford, Hartford Life,
Inc., and Hartford Life Insurance Company. Mr. Znamierowski is also a
Managing Member, Executive Vice President and Chief Investment Officer of
HIFSCO and HL Advisors.
OTHER OFFICERS
ROBERT M. ARENA (age 38) Vice President since 2006(1)
Mr. Arena serves as Vice President of Hartford Life and heads its Retail
Product Management Group in the Investment Products Division. Prior to
joining The Hartford in 2004, he was Senior Vice President in charge of
Product Management for American Skandia/Prudential in the individual
annuities division. Mr. Arena had joined American Skandia in 1996.
Previously, he was with Paul Revere Insurance Group in its group insurance
division.
(1) Appointed February 1, 2006
TAMARA L. FAGELY (age 48) Vice President, Treasurer and Controller since 1993
Ms. Fagely has been Vice President of HASCO since 1998. Currently, Ms.
Fagely is a Vice President of Hartford Life. She served as Assistant Vice
President of Hartford Life from December 2001 through May 2005.
THOMAS D. JONES III (age 41) Vice President and Chief Compliance Officer since
2006(2)
Mr. Jones joined Hartford Life as Vice President and Director of Securities
Compliance in 2006 from SEI Investments, where he served as Chief
Compliance Officer for its mutual funds and investment advisers. Prior to
joining SEI, Mr. Jones was First Vice President and Compliance Director for
Merrill Lynch Investment Managers (Americas) ("MLIM"), where he worked from
1992-2004.
(2) Appointed February 13, 2006
EDWARD P. MACDONALD (age 39) Vice President, Secretary and Chief Legal Officer
since 2005
Mr. Macdonald serves as Assistant General Counsel of The Hartford. Prior to
joining The Hartford in 2005, Mr. Macdonald was Chief Counsel, Investment
Management, with Prudential Financial (formerly American Skandia Investment
Services, Inc.). He joined Prudential in April 1999.
VERN J. MEYER (age 42) Vice President since 2006(3)
Mr. Meyer serves as Vice President of Hartford Life and Director of its
Investment Advisory Group in the Investment Products Division. Prior to
joining The Hartford in 2004, Mr. Meyer served as Vice President and
managing director of MassMutual, which he joined in 1987.
(3) Appointed February 1, 2006
DENISE A. SETTIMI (age 46) Vice President since 2005
Ms. Settimi currently serves as Operations Officer of HASCO. Previously,
Ms. Settimi was with American Express Financial Advisors, where she was
Director of Retirement Plan Services from 1997 to 2003.
JOHN C. WALTERS (age 44) Vice President since 2001
Mr. Walters serves as Executive Vice President and Director of the
Investment Products Division of Hartford Life Insurance Company. Mr.
Walters is also a Managing Member and Executive Vice President of HIFSCO
and HL Advisors. Previously Mr. Walters was with First Union Securities.
HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES AND PROXY VOTING
RECORDS
HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES AND PROXY VOTING
RECORDS
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, 2006 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.
370
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 and where applicable this information constitutes designations
and notice required by the Internal Revenue Code. 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 2007. Shareholders may wish to consult a tax advisor on how to report
distributions for state and local purposes.
The income received from federal obligations is as follows:
<Table>
<Caption>
OTHER
DIRECT
FEDERAL OTHER
U.S. TREASURY* OBLIGATIONS* SECURITIES TOTAL DRD** QDI*** QII****
-------------- ------------ ---------- ------ -------- -------- --------
Advisers Fund..................... 16.98% 0.74% 82.28% 100.00% 62.86% 75.59% 61.65%
Aggressive Growth Allocation
Fund............................ 100.00% 100.00%
Balance Income Fund............... 58.84% 60.52% 100.00%
Balanced Allocation Fund.......... 7.41% 21.10% 72.52%
Capital Appreciation Fund......... 100.00% 100.00% 9.59%
Capital Appreciation II Fund...... 11.92% 19.90%
Conservative Allocation Fund...... 3.49% 10.20% 72.11%
Disciplined Equity Fund........... 33.50% 100.00% 6.19%
Dividend & Growth Fund............ 67.79% 82.83%
Equity Income Fund................ 88.12% 100.00%
Floating Rate Fund................ 100.00%
Focus Fund........................ 100.00%
Global Communications Fund........ 43.50% 97.07% 6.10%
Global Financial Services Fund.... 27.32% 100.00% 11.66%
Global Health Fund................ 11.40% 26.10%
Global Leaders Fund............... 100.00%
Growth Allocation Fund............ 22.33% 78.78% 47.67%
High Yield Fund................... 99.18%
Income Allocation Fund............ 94.85%
Income Fund....................... 6.07% 0.19% 93.74% 100.00% 98.85%
Inflation Plus Fund............... 94.91% 0.00% 5.09% 100.00% 100.00%
International Capital Appreciation
Fund............................ 100.00%
International Opportunities
Fund............................ 100.00% 34.74%
International Small Company
Fund............................ 19.39%
MidCap Fund....................... 35.51% 39.15%
MidCap Value Fund................. 27.56% 33.08%
Money Market Fund................. 100.00%
Retirement Income Fund............ 1.25% 64.28%
Select MidCap Growth Fund......... 22.58% 23.84%
Select MidCap Value Fund.......... 1.86% 43.27%
Short Duration Fund............... 14.91% 0.06% 85.03% 100.00% 98.50%
Stock Fund........................ 100.00% 33.10%
Target Retirement 2010 Fund....... 85.25%
Target Retirement 2020 Fund....... 1.95% 4.79% 58.64%
Target Retirement 2030 Fund....... 3.66% 4.67% 20.87%
Tax-Free California Fund.......... 100.00%
Tax-Free Minnesota Fund........... 100.00%
Tax-Free National Fund............ 100.00%
Tax-Free New York Fund............ 100.00%
Total Return Bond Fund............ 12.37% 0.45% 87.18% 100.00% 97.03%
U.S. Government Securities Fund... 11.72% 4.85% 83.43% 100.00% 100.00%
Value Fund........................ 31.50% 100.00% 8.43%
Value Opportunities Fund.......... 100.00%
<Caption>
QSTCG****
---------
Advisers Fund.....................
Aggressive Growth Allocation
Fund............................
Balance Income Fund...............
Balanced Allocation Fund.......... 100.00%
Capital Appreciation Fund......... 100.00%
Capital Appreciation II Fund...... 100.00%
Conservative Allocation Fund...... 100.00%
Disciplined Equity Fund...........
Dividend & Growth Fund............ 100.00%
Equity Income Fund................ 100.00%
Floating Rate Fund................
Focus Fund........................
Global Communications Fund........
Global Financial Services Fund....
Global Health Fund................ 100.00%
Global Leaders Fund...............
Growth Allocation Fund............ 100.00%
High Yield Fund...................
Income Allocation Fund............ 100.00%
Income Fund.......................
Inflation Plus Fund............... 100.00%
International Capital Appreciation
Fund............................ 100.00%
International Opportunities
Fund............................
International Small Company
Fund............................ 100.00%
MidCap Fund....................... 100.00%
MidCap Value Fund................. 100.00%
Money Market Fund.................
Retirement Income Fund............
Select MidCap Growth Fund......... 100.00%
Select MidCap Value Fund.......... 100.00%
Short Duration Fund...............
Stock Fund........................
Target Retirement 2010 Fund.......
Target Retirement 2020 Fund.......
Target Retirement 2030 Fund.......
Tax-Free California Fund..........
Tax-Free Minnesota Fund........... 100.00%
Tax-Free National Fund............ 100.00%
Tax-Free New York Fund............ 100.00%
Total Return Bond Fund............ 100.00%
U.S. Government Securities Fund...
Value Fund........................
Value Opportunities Fund.......... 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, 2006, 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 designate
the maximum eligible amount of ordinary distributions declared as taxed at
a maximum rate of 15%.
**** Applicable for non-resident foreign shareholders only. These are the
percentages of ordinary income distributions that are designated as
interest-related dividends under Internal Revenue Code Section 871(K)(1)(C)
(QII) and as short-term capital gain distributions under Internal Revenue
Code Section 871(K)(2)(C) (QSTCG).
371
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
Complete information will be computed and reported in conjunction with your 2006
Form 1099-DIV.
<Table>
<Caption>
FOREIGN TAX CREDIT PASS-THROUGH
- -------------------------------
The following Funds elect under the Internal Revenue Code Section 853
to pass-through foreign taxes paid by the Funds to their
shareholders as follows:
Global Communications Fund............................................ $ 53
International Capital Appreciation Fund............................... 440
International Opportunities Fund...................................... 478
International Small Company Fund...................................... 299
</Table>
Detailed below are the per share distributions made for the fiscal period ended
October 31, 2006.
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS E CLASS H CLASS I CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
ADVISERS FUND
Income.............. 0.294 0.168 0.182 0.369
----- ----- ----- -----
AGGRESSIVE GROWTH ALLOCATION FUND
Income.............. 0.089 0.016 0.016
Long-Term Capital
Gain.............. 0.006 0.006 0.006
----- ----- -----
Total Income
Distributions... 0.096 0.023 0.022
----- ----- -----
BALANCED ALLOCATION
FUND
Income.............. 0.215 0.133 0.135 0.049
Short-Term Capital
Gain.............. 0.015 0.015 0.015 0.000
Long-Term Capital
Gain.............. 0.007 0.007 0.007 0.000
----- ----- ----- -----
Total Income
Distributions... 0.237 0.155 0.157 0.049
----- ----- ----- -----
BALANCED INCOME FUND
Income.............. 0.057 0.043 0.045 0.062
----- ----- ----- -----
CAPITAL APPRECIATION
FUND
Short-Term Capital
Gain.............. 0.220 0.220 0.220 0.220
Long-Term Capital
Gain.............. 3.203 3.203 3.203 3.203
----- ----- ----- -----
Total Income
Distributions... 3.423 3.423 3.423 3.423
----- ----- ----- -----
CAPITAL APPRECIATION
II FUND
Short-Term Capital
Gain.............. 0.151 0.151 0.151 0.151
----- ----- ----- -----
CONSERVATIVE
ALLOCATION FUND
Income.............. 0.310 0.234 0.236 0.073
Short-Term Capital
Gain.............. 0.052 0.052 0.052 0.000
Long-Term Capital
Gain.............. 0.064 0.064 0.064 0.000
----- ----- ----- -----
Total Income
Distributions... 0.426 0.350 0.351 0.073
----- ----- ----- -----
DISCIPLINED EQUITY
FUND
Income.............. 0.018 0.000 0.000 0.080
----- ----- ----- -----
DIVIDEND AND GROWTH
FUND
Income.............. 0.262 0.099 0.123 0.081 0.346
Short-Term Capital
Gain.............. 0.104 0.104 0.104 0.000 0.104
Long-Term Capital
Gain.............. 0.658 0.658 0.658 0.000 0.658
----- ----- ----- ----- -----
Total Income
Distributions... 1.024 0.860 0.885 0.081 1.108
----- ----- ----- ----- -----
EQUITY INCOME FUND
Income.............. 0.281 0.175 0.191 0.075 0.334
Long-Term Capital
Gain.............. 0.035 0.035 0.035 0.000 0.035
----- ----- ----- ----- -----
Total Income
Distributions... 0.316 0.209 0.225 0.075 0.369
----- ----- ----- ----- -----
FLOATING RATE FUND
Income.............. 0.624 0.540 0.546 0.122 0.654
----- ----- ----- ----- -----
FOCUS FUND
Income.............. 0.066 0.000 0.000 0.111
----- ----- ----- -----
GLOBAL
COMMUNICATIONS
FUND
Income.............. 0.100 0.068 0.055 0.128
----- ----- ----- -----
</Table>
372
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS E CLASS H CLASS I CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
GLOBAL FINANCIAL
SERVICES FUND
Income.............. 0.112 0.043 0.034 0.158
----- ----- ----- -----
GLOBAL HEALTH FUND
Short-Term Capital
Gain.............. 0.458 0.458 0.458 0.458
Long-Term Capital
Gain.............. 0.545 0.545 0.545 0.545
----- ----- ----- -----
Total Income
Distributions... 1.003 1.003 1.003 1.003
----- ----- ----- -----
GLOBAL LEADERS FUND
Income.............. 0.016 0.000 0.000 0.103
Long-Term Capital
Gain.............. 0.191 0.191 0.191 0.191
----- ----- ----- -----
Total Income
Distributions... 0.208 0.191 0.191 0.294
----- ----- ----- -----
GROWTH ALLOCATION
FUND
Income.............. 0.127 0.055 0.055
Short-Term Capital
Gain.............. 0.004 0.004 0.004
Long-Term Capital
Gain.............. 0.006 0.006 0.006
----- ----- -----
Total Income
Distributions... 0.137 0.065 0.065
----- ----- -----
GROWTH OPPORTUNITIES
FUND
Long-Term Capital
Gain.............. 2.029 2.029 2.029 2.029 0.000 2.029 2.029 2.029 2.029 2.029
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
HIGH YIELD FUND
Income.............. 0.546 0.486 0.493 0.584
----- ----- ----- -----
INCOME ALLOCATION
FUND
Income.............. 0.431 0.362 0.361 0.065
Short-Term Capital
Gain.............. 0.015 0.015 0.015 0.000
----- ----- ----- -----
Total Income
Distributions... 0.446 0.377 0.377 0.065
----- ----- ----- -----
INCOME FUND
Income.............. 0.529 0.452 0.453 0.555
----- ----- ----- -----
INFLATION PLUS FUND
Income.............. 0.429 0.350 0.350 0.045 0.459
Long-Term Capital
Gain.............. 0.034 0.034 0.034 0.000 0.034
----- ----- ----- ----- -----
Total Income
Distributions... 0.463 0.384 0.384 0.045 0.493
----- ----- ----- ----- -----
INTERNATIONAL CAPITAL APPRECIATION FUND
Income.............. 0.049 0.000 0.000 0.104
Short-Term Capital
Gain.............. 0.044 0.044 0.044 0.044
Long-Term Capital
Gain.............. 0.094 0.094 0.094 0.094
----- ----- ----- -----
Total Income
Distributions... 0.187 0.138 0.138 0.241
----- ----- ----- -----
INTERNATIONAL
OPPORTUNITIES FUND
Income.............. 0.046 0.000 0.000 0.114
----- ----- ----- -----
INTERNATIONAL SMALL COMPANY FUND
Income.............. 0.249 0.165 0.150 0.304
Short-Term Capital
Gain.............. 0.926 0.926 0.926 0.926
Long-Term Capital
Gain.............. 0.604 0.604 0.604 0.604
----- ----- ----- -----
Total Income
Distributions... 1.779 1.695 1.680 1.834
----- ----- ----- -----
MIDCAP FUND
Short-Term Capital
Gain.............. 0.587 0.587 0.587 0.587
Long-Term Capital
Gain.............. 3.833 3.833 3.833 3.833
----- ----- ----- -----
Total Capital Gain
Distributions... 4.421 4.421 4.421 4.421
----- ----- ----- -----
MIDCAP VALUE FUND
Short-Term Capital
Gain.............. 0.416 0.416 0.416 0.416
Long-Term Capital
Gain.............. 0.904 0.904 0.904 0.904
----- ----- ----- -----
Total Capital Gain
Distributions... 1.320 1.320 1.320 1.320
----- ----- ----- -----
RETIREMENT INCOME
FUND
Income.............. 0.749 0.675 0.674 0.776
----- ----- ----- -----
</Table>
373
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS E CLASS H CLASS I CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
SELECT MIDCAP GROWTH
FUND
Short-Term Capital
Gain.............. 0.100 0.100 0.100 0.100
----- ----- ----- -----
SELECT MIDCAP VALUE
FUND
Income.............. 0.008 0.000 0.000 0.050
Short-Term Capital
Gain.............. 0.240 0.240 0.240 0.240
----- ----- ----- -----
Total Income
Distributions... 0.248 0.240 0.240 0.290
----- ----- ----- -----
SHORT DURATION FUND
Income.............. 0.348 0.273 0.273 0.373
----- ----- ----- -----
STOCK FUND
Income.............. 0.040 0.136
----- -----
TARGET RETIREMENT
2010 FUND
Income.............. 0.861 0.784 0.789 0.887
----- ----- ----- -----
TARGET RETIREMENT
2020 FUND
Income.............. 0.354 0.280 0.282 0.385
----- ----- ----- -----
TARGET RETIREMENT
2030 FUND
Income.............. 1.293 1.218 1.219 1.326
----- ----- ----- -----
TAX-FREE CALIFORNIA
FUND
Tax-Exempt Income... 0.382 0.304 0.304
Long-Term Capital
Gain.............. 0.007 0.007 0.007
----- ----- -----
Total Income
Distributions... 0.389 0.311 0.311
----- ----- -----
TAX-FREE MINNESOTA
FUND
Tax-Exempt Income... 0.407 0.330 0.330 0.407 0.330 0.402 0.330 0.330 0.406
Short-Term Capital
Gain.............. 0.016 0.016 0.016 0.016 0.016 0.016 0.016 0.016 0.016
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Income
Distributions... 0.424 0.346 0.346 0.423 0.346 0.418 0.346 0.346 0.422
----- ----- ----- ----- ----- ----- ----- ----- -----
TAX-FREE NATIONAL
FUND
Tax-Exempt Income... 0.451 0.367 0.367 0.462 0.366 0.444 0.367 0.366 0.459
Short-Term Capital
Gain.............. 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Income
Distributions... 0.526 0.442 0.442 0.538 0.441 0.520 0.442 0.442 0.535
----- ----- ----- ----- ----- ----- ----- ----- -----
TAX-FREE NEW YORK
FUND
Tax-Exempt Income... 0.394 0.316 0.316
Short-Term Capital
Gain.............. 0.004 0.004 0.004
Long-Term Capital
Gain.............. 0.017 0.017 0.017
----- ----- -----
Total Income
Distributions... 0.415 0.337 0.337
----- ----- -----
TOTAL RETURN BOND
FUND
Income.............. 0.417 0.336 0.345 0.075 0.467
Short-Term Capital
Gain.............. 0.038 0.038 0.038 0.000 0.038
Long-Term Capital
Gain.............. 0.021 0.021 0.021 0.000 0.021
----- ----- ----- ----- -----
Total Income
Distributions... 0.477 0.395 0.404 0.075 0.526
----- ----- ----- ----- -----
U.S. GOVERNMENT
SECURITIES FUND
Income.............. 0.430 0.361 0.361 0.460 0.367 0.437 0.367 0.367 0.458
----- ----- ----- ----- ----- ----- ----- ----- -----
VALUE FUND
Income.............. 0.081 0.132
----- -----
VALUE OPPORTUNITIES
FUND
Income.............. 0.022 0.057
Short-Term Capital
Gain.............. 0.135 0.135 0.135 0.135 0.135 0.135 0.135 0.135
Long-Term Capital
Gain.............. 0.362 0.362 0.362 0.362 0.362 0.362 0.362 0.362
----- ----- ----- ----- ----- ----- ----- -----
Total Income
Distributions... 0.497 0.497 0.497 0.497 0.519 0.497 0.497 0.554
----- ----- ----- ----- ----- ----- ----- -----
</Table>
374
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE
- --------------------------------------------------------------------------------
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, 2006 through October 31, 2006.
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.
Expenses are equal to the Fund's annualized expense ratios multiplied by average
account value over the period, multiplied by 184/365 (to reflect the one-half
year period).
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD ADVISERS
FUND
Class A............ $1,000.00 $1,039.00 $ 5.83
Class B............ $1,000.00 $1,034.60 $ 9.89
Class C............ $1,000.00 $1,034.70 $ 9.42
Class Y............ $1,000.00 $1,041.10 $ 3.48
THE HARTFORD
AGGRESSIVE GROWTH
ALLOCATION FUND
Class A............ $1,000.00 $1,005.30 $ 3.70
Class B............ $1,000.00 $1,002.30 $ 6.97
Class C............ $1,000.00 $1,002.30 $ 6.97
Class I............ $1,000.00 $1,050.00 $ 0.82
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD ADVISERS
FUND
Class A............ $1,000.00 $1,019.48 $ 5.78 1.13% 184 365
Class B............ $1,000.00 $1,015.49 $ 9.80 1.93% 184 365
Class C............ $1,000.00 $1,015.94 $ 9.34 1.84% 184 365
Class Y............ $1,000.00 $1,021.79 $ 3.45 0.68% 184 365
THE HARTFORD
AGGRESSIVE GROWTH
ALLOCATION FUND
Class A............ $1,000.00 $1,021.52 $ 3.73 0.73% 184 365
Class B............ $1,000.00 $1,018.24 $ 7.03 1.38% 184 365
Class C............ $1,000.00 $1,018.24 $ 7.03 1.38% 184 365
Class I............ $1,000.00 $1,007.55 $ 0.81 0.48% 61 365
</Table>
375
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD BALANCED
ALLOCATION FUND
Class A............ $1,000.00 $1,017.30 $ 3.16
Class B............ $1,000.00 $1,013.70 $ 6.96
Class C............ $1,000.00 $1,013.80 $ 6.96
Class I............ $1,000.00 $1,033.50 $ 0.66
THE HARTFORD BALANCED
INCOME FUND
Class A............ $1,000.00 $1,047.80 $ 3.23
Class B............ $1,000.00 $1,045.40 $ 5.14
Class C............ $1,000.00 $1,045.60 $ 5.14
Class Y............ $1,000.00 $1,048.30 $ 2.31
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD BALANCED
ALLOCATION FUND
Class A............ $1,000.00 $1,022.07 $ 3.17 0.62% 184 365
Class B............ $1,000.00 $1,018.29 $ 6.98 1.37% 184 365
Class C............ $1,000.00 $1,018.29 $ 6.98 1.37% 184 365
Class I............ $1,000.00 $1,007.71 $ 0.65 0.39% 61 365
THE HARTFORD BALANCED
INCOME FUND
Class A............ $1,000.00 $1,009.45 $ 3.17 1.25% 92 365
Class B............ $1,000.00 $1,007.58 $ 5.04 1.99% 92 365
Class C............ $1,000.00 $1,007.58 $ 5.04 1.99% 92 365
Class Y............ $1,000.00 $1,010.35 $ 2.27 0.89% 92 365
</Table>
376
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD CAPITAL
APPRECIATION FUND
Class A............ $1,000.00 $1,023.70 $ 6.03
Class B............ $1,000.00 $1,019.40 $10.07
Class C............ $1,000.00 $1,019.60 $ 9.70
Class I............ $1,000.00 $1,057.60 $ 1.52
Class Y............ $1,000.00 $1,025.80 $ 3.84
THE HARTFORD CAPITAL
APPRECIATION II
FUND
Class A............ $1,000.00 $1,009.20 $ 8.13
Class B............ $1,000.00 $1,005.40 $11.98
Class C............ $1,000.00 $1,005.40 $11.70
Class I............ $1,000.00 $1,050.40 $ 1.95
Class Y............ $1,000.00 $1,009.90 $ 4.07
THE HARTFORD
CONSERVATIVE
ALLOCATION FUND
Class A............ $1,000.00 $1,027.00 $ 3.31
Class B............ $1,000.00 $1,023.30 $ 6.74
Class C............ $1,000.00 $1,023.40 $ 6.73
Class I............ $1,000.00 $1,026.90 $ 0.69
THE HARTFORD
DISCIPLINED EQUITY
FUND
Class A............ $1,000.00 $1,037.80 $ 7.21
Class B............ $1,000.00 $1,033.80 $10.70
Class C............ $1,000.00 $1,033.80 $10.77
Class Y............ $1,000.00 $1,039.80 $ 4.59
THE HARTFORD DIVIDEND
AND GROWTH FUND
Class A............ $1,000.00 $1,068.10 $ 5.93
Class B............ $1,000.00 $1,063.50 $10.35
Class C............ $1,000.00 $1,063.80 $ 9.74
Class I............ $1,000.00 $1,052.00 $ 1.23
Class Y............ $1,000.00 $1,070.00 $ 5.14
THE HARTFORD EQUITY
INCOME FUND
Class A............ $1,000.00 $1,068.10 $ 5.16
Class B............ $1,000.00 $1,063.90 $ 9.50
Class C............ $1,000.00 $1,065.20 $ 8.85
Class I............ $1,000.00 $1,040.50 $ 1.36
Class Y............ $1,000.00 $1,070.70 $ 3.01
THE HARTFORD FLOATING
RATE FUND
Class A............ $1,000.00 $1,028.90 $ 2.74
Class B............ $1,000.00 $1,025.50 $ 7.08
Class C............ $1,000.00 $1,025.90 $ 6.74
Class I............ $1,000.00 $1,012.10 $ 0.33
Class Y............ $1,000.00 $1,031.50 $ 2.22
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD CAPITAL
APPRECIATION FUND
Class A............ $1,000.00 $1,019.25 $ 6.02 1.18% 184 365
Class B............ $1,000.00 $1,015.24 $10.05 1.98% 184 365
Class C............ $1,000.00 $1,015.60 $ 9.68 1.90% 184 365
Class I............ $1,000.00 $1,006.88 $ 1.48 0.88% 61 365
Class Y............ $1,000.00 $1,021.42 $ 3.83 0.75% 184 365
THE HARTFORD CAPITAL
APPRECIATION II
FUND
Class A............ $1,000.00 $1,017.12 $ 8.16 1.60% 184 365
Class B............ $1,000.00 $1,013.26 $12.02 2.37% 184 365
Class C............ $1,000.00 $1,013.54 $11.74 2.31% 184 365
Class I............ $1,000.00 $1,006.45 $ 1.91 1.14% 61 365
Class Y............ $1,000.00 $1,021.16 $ 4.09 0.80% 184 365
THE HARTFORD
CONSERVATIVE
ALLOCATION FUND
Class A............ $1,000.00 $1,021.94 $ 3.30 0.65% 184 365
Class B............ $1,000.00 $1,018.54 $ 6.72 1.32% 184 365
Class C............ $1,000.00 $1,018.55 $ 6.72 1.32% 184 365
Class I............ $1,000.00 $1,007.67 $ 0.69 0.41% 61 365
THE HARTFORD
DISCIPLINED EQUITY
FUND
Class A............ $1,000.00 $1,018.13 $ 7.14 1.40% 184 365
Class B............ $1,000.00 $1,014.68 $10.60 2.09% 184 365
Class C............ $1,000.00 $1,014.62 $10.67 2.10% 184 365
Class Y............ $1,000.00 $1,020.71 $ 4.54 0.89% 184 365
THE HARTFORD DIVIDEND
AND GROWTH FUND
Class A............ $1,000.00 $1,019.47 $ 5.79 1.14% 184 365
Class B............ $1,000.00 $1,015.17 $10.11 1.99% 184 365
Class C............ $1,000.00 $1,015.76 $ 9.52 1.87% 184 365
Class I............ $1,000.00 $1,007.15 $ 1.21 0.72% 61 365
Class Y............ $1,000.00 $1,020.24 $ 5.01 0.98% 184 365
THE HARTFORD EQUITY
INCOME FUND
Class A............ $1,000.00 $1,020.21 $ 5.04 0.99% 184 365
Class B............ $1,000.00 $1,015.99 $ 9.28 1.83% 184 365
Class C............ $1,000.00 $1,016.63 $ 8.64 1.70% 184 365
Class I............ $1,000.00 $1,007.02 $ 1.34 0.80% 61 365
Class Y............ $1,000.00 $1,022.30 $ 2.94 0.58% 184 365
THE HARTFORD FLOATING
RATE FUND
Class A............ $1,000.00 $1,022.51 $ 2.73 0.54% 184 365
Class B............ $1,000.00 $1,018.21 $ 7.06 1.39% 184 365
Class C............ $1,000.00 $1,018.55 $ 6.71 1.32% 184 365
Class I............ $1,000.00 $1,008.03 $ 0.33 0.20% 61 365
Class Y............ $1,000.00 $1,023.02 $ 2.21 0.43% 184 365
</Table>
377
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD FOCUS
FUND
Class A............ $1,000.00 $1,006.40 $ 7.58
Class B............ $1,000.00 $1,002.80 $11.35
Class C............ $1,000.00 $1,002.80 $11.35
Class Y............ $1,000.00 $1,009.00 $ 5.47
THE HARTFORD GLOBAL
COMMUNICATIONS FUND
Class A............ $1,000.00 $1,006.30 $ 5.80
Class B............ $1,000.00 $1,003.90 $ 9.25
Class C............ $1,000.00 $1,002.60 $ 9.57
Class Y............ $1,000.00 $1,009.80 $ 3.79
THE HARTFORD GLOBAL
FINANCIAL SERVICES
FUND
Class A............ $1,000.00 $1,026.40 $ 5.87
Class B............ $1,000.00 $1,023.10 $ 9.03
Class C............ $1,000.00 $1,022.30 $ 9.76
Class Y............ $1,000.00 $1,028.30 $ 3.83
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD FOCUS
FUND
Class A............ $1,000.00 $1,017.65 $ 7.62 1.50% 184 365
Class B............ $1,000.00 $1,013.87 $11.41 2.25% 184 365
Class C............ $1,000.00 $1,013.87 $11.41 2.25% 184 365
Class Y............ $1,000.00 $1,019.76 $ 5.50 1.08% 184 365
THE HARTFORD GLOBAL
COMMUNICATIONS FUND
Class A............ $1,000.00 $1,019.42 $ 5.84 1.15% 184 365
Class B............ $1,000.00 $1,015.98 $ 9.30 1.83% 184 365
Class C............ $1,000.00 $1,015.65 $ 9.63 1.90% 184 365
Class Y............ $1,000.00 $1,021.44 $ 3.81 0.75% 184 365
THE HARTFORD GLOBAL
FINANCIAL SERVICES
FUND
Class A............ $1,000.00 $1,019.41 $ 5.85 1.15% 184 365
Class B............ $1,000.00 $1,016.28 $ 8.99 1.77% 184 365
Class C............ $1,000.00 $1,015.56 $ 9.72 1.91% 184 365
Class Y............ $1,000.00 $1,021.43 $ 3.82 0.75% 184 365
</Table>
378
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD GLOBAL
HEALTH FUND
Class A............ $1,000.00 $1,057.50 $ 8.40
Class B............ $1,000.00 $1,053.50 $12.32
Class C............ $1,000.00 $1,054.20 $11.93
Class I............ $1,000.00 $1,030.00 $ 1.95
Class Y............ $1,000.00 $1,060.50 $ 5.59
THE HARTFORD GLOBAL
LEADERS FUND
Class A............ $1,000.00 $ 982.20 $ 7.55
Class B............ $1,000.00 $ 979.10 $11.04
Class C............ $1,000.00 $ 978.60 $11.01
Class Y............ $1,000.00 $ 984.80 $ 4.68
THE HARTFORD GLOBAL
TECHNOLOGY FUND
Class A............ $1,000.00 $ 979.30 $ 6.95
Class B............ $1,000.00 $ 976.50 $10.03
Class C............ $1,000.00 $ 974.70 $11.38
Class Y............ $1,000.00 $ 979.80 $ 5.99
THE HARTFORD GROWTH
ALLOCATION FUND
Class A............ $1,000.00 $1,010.40 $ 3.41
Class B............ $1,000.00 $1,007.20 $ 6.70
Class C............ $1,000.00 $1,008.00 $ 6.70
Class I............ $1,000.00 $1,041.90 $ 0.72
THE HARTFORD GROWTH
FUND
Class A............ $1,000.00 $ 967.00 $ 6.66
Class B............ $1,000.00 $ 962.70 $10.55
Class C............ $1,000.00 $ 963.30 $10.16
Class H............ $1,000.00 $ 964.80 $ 9.09
Class I............ $1,000.00 $1,046.50 $ 1.64
Class L............ $1,000.00 $ 968.40 $ 5.39
Class M............ $1,000.00 $ 964.80 $ 9.09
Class N............ $1,000.00 $ 964.80 $ 9.09
Class Y............ $1,000.00 $ 969.70 $ 4.25
THE HARTFORD GROWTH
OPPORTUNITIES FUND
Class A............ $1,000.00 $ 970.90 $ 6.04
Class B............ $1,000.00 $ 966.30 $10.34
Class C............ $1,000.00 $ 966.70 $10.25
Class H............ $1,000.00 $ 967.50 $ 9.10
Class I............ $1,000.00 $1,049.70 $ 1.91
Class L............ $1,000.00 $ 971.30 $ 5.39
Class M............ $1,000.00 $ 967.80 $ 9.10
Class N............ $1,000.00 $ 967.40 $ 9.10
Class Y............ $1,000.00 $ 972.50 $ 4.13
Class Z............ $1,000.00 $ 972.60 $ 4.15
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD GLOBAL
HEALTH FUND
Class A............ $1,000.00 $1,017.04 $ 8.24 1.62% 184 365
Class B............ $1,000.00 $1,013.21 $12.07 2.38% 184 365
Class C............ $1,000.00 $1,013.59 $11.69 2.30% 184 365
Class I............ $1,000.00 $1,019.76 $ 1.93 1.15% 61 365
Class Y............ $1,000.00 $1,019.78 $ 5.48 1.08% 184 365
THE HARTFORD GLOBAL
LEADERS FUND
Class A............ $1,000.00 $1,017.59 $ 7.69 1.51% 184 365
Class B............ $1,000.00 $1,014.05 $11.24 2.21% 184 365
Class C............ $1,000.00 $1,014.07 $11.21 2.21% 184 365
Class Y............ $1,000.00 $1,020.49 $ 4.77 0.94% 184 365
THE HARTFORD GLOBAL
TECHNOLOGY FUND
Class A............ $1,000.00 $1,018.18 $ 7.09 1.39% 184 365
Class B............ $1,000.00 $1,015.06 $10.22 2.01% 184 365
Class C............ $1,000.00 $1,013.68 $11.61 2.29% 184 365
Class Y............ $1,000.00 $1,019.16 $ 6.11 1.20% 184 365
THE HARTFORD GROWTH
ALLOCATION FUND
Class A............ $1,000.00 $1,021.81 $ 3.43 0.67% 184 365
Class B............ $1,000.00 $1,018.53 $ 6.74 1.32% 184 365
Class C............ $1,000.00 $1,018.53 $ 6.74 1.32% 184 365
Class I............ $1,000.00 $1,007.65 $ 0.70 0.42% 61 365
THE HARTFORD GROWTH
FUND
Class A............ $1,000.00 $1,018.44 $ 6.83 1.34% 184 365
Class B............ $1,000.00 $1,014.45 $10.83 2.13% 184 365
Class C............ $1,000.00 $1,014.86 $10.42 2.05% 184 365
Class H............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365
Class I............ $1,000.00 $1,006.76 $ 1.60 0.96% 61 365
Class L............ $1,000.00 $1,019.73 $ 5.53 1.09% 184 365
Class M............ $1,000.00 $1,015.95 $ 9.33 1.84% 184 365
Class N............ $1,000.00 $1,015.95 $ 9.33 1.84% 184 365
Class Y............ $1,000.00 $1,020.89 $ 4.36 0.86% 184 365
THE HARTFORD GROWTH
OPPORTUNITIES FUND
Class A............ $1,000.00 $1,019.08 $ 6.19 1.22% 184 365
Class B............ $1,000.00 $1,014.69 $10.59 2.09% 184 365
Class C............ $1,000.00 $1,014.78 $10.51 2.07% 184 365
Class H............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365
Class I............ $1,000.00 $1,006.49 $ 1.87 1.12% 61 365
Class L............ $1,000.00 $1,019.74 $ 5.52 1.09% 184 365
Class M............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365
Class N............ $1,000.00 $1,015.96 $ 9.32 1.83% 184 365
Class Y............ $1,000.00 $1,021.01 $ 4.24 0.83% 184 365
Class Z............ $1,000.00 $1,021.00 $ 4.25 0.84% 184 365
</Table>
379
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD HIGH
YIELD FUND
Class A............ $1,000.00 $1,045.40 $ 6.19
Class B............ $1,000.00 $1,041.50 $10.03
Class C............ $1,000.00 $1,040.60 $ 9.78
Class Y............ $1,000.00 $1,048.00 $ 3.81
THE HARTFORD INCOME
ALLOCATION FUND
Class A............ $1,000.00 $1,033.80 $ 3.19
Class B............ $1,000.00 $1,029.20 $ 6.76
Class C............ $1,000.00 $1,029.10 $ 6.76
Class I............ $1,000.00 $1,011.70 $ 0.62
THE HARTFORD INCOME
FUND
Class A............ $1,000.00 $1,043.60 $ 4.89
Class B............ $1,000.00 $1,039.70 $ 8.74
Class C............ $1,000.00 $1,039.70 $ 8.74
Class Y............ $1,000.00 $1,045.00 $ 3.61
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD HIGH
YIELD FUND
Class A............ $1,000.00 $1,019.15 $ 6.11 1.20% 184 365
Class B............ $1,000.00 $1,015.38 $ 9.90 1.95% 184 365
Class C............ $1,000.00 $1,015.62 $ 9.66 1.90% 184 365
Class Y............ $1,000.00 $1,021.48 $ 3.76 0.74% 184 365
THE HARTFORD INCOME
ALLOCATION FUND
Class A............ $1,000.00 $1,022.07 $ 3.17 0.62% 184 365
Class B............ $1,000.00 $1,018.54 $ 6.73 1.32% 184 365
Class C............ $1,000.00 $1,018.55 $ 6.72 1.32% 184 365
Class I............ $1,000.00 $1,007.74 $ 0.62 0.37% 61 365
THE HARTFORD INCOME
FUND
Class A............ $1,000.00 $1,020.42 $ 4.84 0.95% 184 365
Class B............ $1,000.00 $1,016.63 $ 8.64 1.70% 184 365
Class C............ $1,000.00 $1,016.64 $ 8.64 1.70% 184 365
Class Y............ $1,000.00 $1,021.68 $ 3.57 0.70% 184 365
</Table>
380
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD
INFLATION PLUS FUND
Class A............ $1,000.00 $1,036.30 $ 4.87
Class B............ $1,000.00 $1,032.30 $ 8.70
Class C............ $1,000.00 $1,031.30 $ 8.70
Class I............ $1,000.00 $1,000.40 $ 1.17
Class Y............ $1,000.00 $1,036.70 $ 3.49
THE HARTFORD
INTERNATIONAL
CAPITAL
APPRECIATION FUND
Class A............ $1,000.00 $ 996.70 $ 8.04
Class B............ $1,000.00 $ 993.10 $11.62
Class C............ $1,000.00 $ 993.10 $11.79
Class I............ $1,000.00 $1,041.80 $ 2.32
Class Y............ $1,000.00 $ 998.70 $ 5.91
THE HARTFORD
INTERNATIONAL
OPPORTUNITIES FUND
Class A............ $1,000.00 $1,006.90 $ 8.14
Class B............ $1,000.00 $1,004.60 $11.02
Class C............ $1,000.00 $1,003.30 $11.69
Class Y............ $1,000.00 $1,010.30 $ 5.02
THE HARTFORD
INTERNATIONAL SMALL
COMPANY FUND
Class A............ $1,000.00 $1,013.10 $ 8.26
Class B............ $1,000.00 $1,009.60 $11.38
Class C............ $1,000.00 $1,009.10 $11.89
Class Y............ $1,000.00 $1,015.50 $ 6.10
THE HARTFORD MIDCAP
FUND
Class A............ $1,000.00 $ 974.60 $ 6.42
Class B............ $1,000.00 $ 970.90 $10.17
Class C............ $1,000.00 $ 971.40 $ 9.80
Class Y............ $1,000.00 $ 976.60 $ 4.12
THE HARTFORD MIDCAP
GROWTH FUND
Class A............ $1,000.00 $1,063.00 $ 3.10
Class B............ $1,000.00 $1,061.00 $ 5.32
Class C............ $1,000.00 $1,061.00 $ 5.35
Class Y............ $1,000.00 $1,064.00 $ 2.05
THE HARTFORD MIDCAP
VALUE FUND
Class A............ $1,000.00 $1,018.90 $ 7.12
Class B............ $1,000.00 $1,015.30 $10.99
Class C............ $1,000.00 $1,014.60 $10.92
Class Y............ $1,000.00 $1,021.10 $ 4.81
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD
INFLATION PLUS FUND
Class A............ $1,000.00 $1,020.42 $ 4.84 0.95% 184 365
Class B............ $1,000.00 $1,016.64 $ 8.64 1.70% 184 365
Class C............ $1,000.00 $1,016.64 $ 8.63 1.70% 184 365
Class I............ $1,000.00 $1,007.19 $ 1.17 0.70% 61 365
Class Y............ $1,000.00 $1,021.78 $ 3.46 0.68% 184 365
THE HARTFORD
INTERNATIONAL
CAPITAL
APPRECIATION FUND
Class A............ $1,000.00 $1,017.15 $ 8.12 1.60% 184 365
Class B............ $1,000.00 $1,013.55 $11.74 2.31% 184 365
Class C............ $1,000.00 $1,013.37 $11.91 2.35% 184 365
Class I............ $1,000.00 $1,006.08 $ 2.28 1.36% 61 365
Class Y............ $1,000.00 $1,019.29 $ 5.97 1.17% 184 365
THE HARTFORD
INTERNATIONAL
OPPORTUNITIES FUND
Class A............ $1,000.00 $1,017.10 $ 8.18 1.61% 184 365
Class B............ $1,000.00 $1,014.21 $11.07 2.18% 184 365
Class C............ $1,000.00 $1,013.54 $11.75 2.31% 184 365
Class Y............ $1,000.00 $1,020.21 $ 5.04 0.99% 184 365
THE HARTFORD
INTERNATIONAL SMALL
COMPANY FUND
Class A............ $1,000.00 $1,017.00 $ 8.27 1.63% 184 365
Class B............ $1,000.00 $1,013.88 $11.41 2.25% 184 365
Class C............ $1,000.00 $1,013.37 $11.91 2.35% 184 365
Class Y............ $1,000.00 $1,019.16 $ 6.11 1.20% 184 365
THE HARTFORD MIDCAP
FUND
Class A............ $1,000.00 $1,018.71 $ 6.56 1.29% 184 365
Class B............ $1,000.00 $1,014.88 $10.40 2.05% 184 365
Class C............ $1,000.00 $1,015.27 $10.01 1.97% 184 365
Class Y............ $1,000.00 $1,021.04 $ 4.21 0.83% 184 365
THE HARTFORD MIDCAP
GROWTH FUND
Class A............ $1,000.00 $1,009.60 $ 3.02 1.19% 92 365
Class B............ $1,000.00 $1,007.44 $ 5.18 2.05% 92 365
Class C............ $1,000.00 $1,007.41 $ 5.21 2.06% 92 365
Class Y............ $1,000.00 $1,010.62 $ 1.99 0.79% 92 365
THE HARTFORD MIDCAP
VALUE FUND
Class A............ $1,000.00 $1,018.15 $ 7.12 1.40% 184 365
Class B............ $1,000.00 $1,014.29 $10.99 2.16% 184 365
Class C............ $1,000.00 $1,014.37 $10.91 2.15% 184 365
Class Y............ $1,000.00 $1,020.44 $ 4.81 0.94% 184 365
</Table>
381
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD MONEY
MARKET FUND
Class A............ $1,000.00 $1,022.00 $ 4.81
Class B............ $1,000.00 $1,018.20 $ 8.63
Class C............ $1,000.00 $1,018.20 $ 8.64
Class Y............ $1,000.00 $1,023.30 $ 2.79
THE HARTFORD
RETIREMENT INCOME
FUND
Class A............ $1,000.00 $1,026.50 $ 2.79
Class B............ $1,000.00 $1,021.50 $ 6.60
Class C............ $1,000.00 $1,023.60 $ 6.61
Class Y............ $1,000.00 $1,028.10 $ 1.25
THE HARTFORD SELECT
MIDCAP GROWTH FUND
Class A............ $1,000.00 $ 969.10 $ 7.43
Class B............ $1,000.00 $ 965.30 $10.40
Class C............ $1,000.00 $ 964.50 $11.21
Class Y............ $1,000.00 $ 971.80 $ 5.91
THE HARTFORD SELECT
MIDCAP VALUE FUND
Class A............ $1,000.00 $1,039.40 $ 8.00
Class B............ $1,000.00 $1,035.40 $11.86
Class C............ $1,000.00 $1,034.50 $11.79
Class Y............ $1,000.00 $1,038.50 $ 5.89
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD MONEY
MARKET FUND
Class A............ $1,000.00 $1,020.44 $ 4.81 0.94% 184 365
Class B............ $1,000.00 $1,016.65 $ 8.63 1.70% 184 365
Class C............ $1,000.00 $1,016.64 $ 8.64 1.70% 184 365
Class Y............ $1,000.00 $1,022.45 $ 2.79 0.55% 184 365
THE HARTFORD
RETIREMENT INCOME
FUND
Class A............ $1,000.00 $1,022.45 $ 2.79 0.55% 184 365
Class B............ $1,000.00 $1,018.67 $ 6.59 1.30% 184 365
Class C............ $1,000.00 $1,018.67 $ 6.60 1.30% 184 365
Class Y............ $1,000.00 $1,023.97 $ 1.25 0.25% 184 365
THE HARTFORD SELECT
MIDCAP GROWTH FUND
Class A............ $1,000.00 $1,017.66 $ 7.61 1.50% 184 365
Class B............ $1,000.00 $1,014.62 $10.66 2.10% 184 365
Class C............ $1,000.00 $1,013.79 $11.49 2.26% 184 365
Class Y............ $1,000.00 $1,019.22 $ 6.05 1.19% 184 365
THE HARTFORD SELECT
MIDCAP VALUE FUND
Class A............ $1,000.00 $1,017.36 $ 7.92 1.56% 184 365
Class B............ $1,000.00 $1,013.55 $11.73 2.31% 184 365
Class C............ $1,000.00 $1,013.62 $11.67 2.30% 184 365
Class Y............ $1,000.00 $1,019.43 $ 5.84 1.15% 184 365
</Table>
382
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD SELECT
SMALLCAP GROWTH
FUND
Class A............ $1,000.00 $ 939.30 $ 8.29
Class B............ $1,000.00 $ 936.40 $11.80
Class C............ $1,000.00 $ 935.50 $11.79
Class Y............ $1,000.00 $ 942.20 $ 5.87
THE HARTFORD SELECT
SMALLCAP VALUE FUND
Class A............ $1,000.00 $1,096.00 $ 4.21
Class B............ $1,000.00 $1,093.00 $ 6.18
Class C............ $1,000.00 $1,093.00 $ 6.17
Class Y............ $1,000.00 $1,097.00 $ 3.17
THE HARTFORD SHORT
DURATION FUND
Class A............ $1,000.00 $1,024.80 $ 4.59
Class B............ $1,000.00 $1,021.90 $ 8.41
Class C............ $1,000.00 $1,021.90 $ 8.40
Class Y............ $1,000.00 $1,027.20 $ 3.33
THE HARTFORD SMALL
COMPANY FUND
Class A............ $1,000.00 $ 933.80 $ 6.85
Class B............ $1,000.00 $ 929.70 $10.76
Class C............ $1,000.00 $ 930.70 $10.46
Class I............ $1,000.00 $1,043.00 $ 1.96
Class Y............ $1,000.00 $ 936.20 $ 4.58
THE HARTFORD SMALLCAP
GROWTH FUND
Class A............ $1,000.00 $ 970.30 $ 6.89
Class B............ $1,000.00 $ 967.00 $10.01
Class C............ $1,000.00 $ 966.30 $10.67
Class H............ $1,000.00 $ 967.50 $ 9.45
Class I............ $1,000.00 $1,084.10 $ 2.02
Class L............ $1,000.00 $ 971.00 $ 5.75
Class M............ $1,000.00 $ 967.50 $ 9.46
Class N............ $1,000.00 $ 967.50 $ 9.46
Class Y............ $1,000.00 $ 972.00 $ 4.61
THE HARTFORD STOCK
FUND
Class A............ $1,000.00 $1,034.40 $ 6.70
Class B............ $1,000.00 $1,030.00 $11.06
Class C............ $1,000.00 $1,030.30 $10.48
Class Y............ $1,000.00 $1,037.30 $ 4.07
THE HARTFORD TARGET
RETIREMENT 2010
FUND
Class A............ $1,000.00 $1,019.20 $ 2.73
Class B............ $1,000.00 $1,015.80 $ 6.55
Class C............ $1,000.00 $1,015.00 $ 6.61
Class Y............ $1,000.00 $1,019.80 $ 1.20
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD SELECT
SMALLCAP GROWTH
FUND
Class A............ $1,000.00 $1,016.66 $ 8.62 1.70% 184 365
Class B............ $1,000.00 $1,013.01 $12.27 2.42% 184 365
Class C............ $1,000.00 $1,013.02 $12.27 2.42% 184 365
Class Y............ $1,000.00 $1,019.16 $ 6.10 1.20% 184 365
THE HARTFORD SELECT
SMALLCAP VALUE FUND
Class A............ $1,000.00 $1,008.59 $ 4.03 1.59% 92 365
Class B............ $1,000.00 $1,006.70 $ 5.93 2.34% 92 365
Class C............ $1,000.00 $1,006.70 $ 5.92 2.34% 92 365
Class Y............ $1,000.00 $1,009.58 $ 3.04 1.20% 92 365
THE HARTFORD SHORT
DURATION FUND
Class A............ $1,000.00 $1,020.67 $ 4.59 0.90% 184 365
Class B............ $1,000.00 $1,016.89 $ 8.38 1.65% 184 365
Class C............ $1,000.00 $1,016.89 $ 8.38 1.65% 184 365
Class Y............ $1,000.00 $1,021.92 $ 3.32 0.65% 184 365
THE HARTFORD SMALL
COMPANY FUND
Class A............ $1,000.00 $1,018.12 $ 7.15 1.41% 184 365
Class B............ $1,000.00 $1,014.05 $11.23 2.21% 184 365
Class C............ $1,000.00 $1,014.37 $10.92 2.15% 184 365
Class I............ $1,000.00 $1,006.43 $ 1.93 1.15% 61 365
Class Y............ $1,000.00 $1,020.47 $ 4.78 0.94% 184 365
THE HARTFORD SMALLCAP
GROWTH FUND
Class A............ $1,000.00 $1,018.21 $ 7.06 1.39% 184 365
Class B............ $1,000.00 $1,015.03 $10.25 2.02% 184 365
Class C............ $1,000.00 $1,014.35 $10.93 2.15% 184 365
Class H............ $1,000.00 $1,015.60 $ 9.68 1.91% 184 365
Class I............ $1,000.00 $1,006.42 $ 1.94 1.16% 61 365
Class L............ $1,000.00 $1,019.37 $ 5.89 1.16% 184 365
Class M............ $1,000.00 $1,015.59 $ 9.69 1.91% 184 365
Class N............ $1,000.00 $1,015.59 $ 9.69 1.91% 184 365
Class Y............ $1,000.00 $1,020.53 $ 4.72 0.93% 184 365
THE HARTFORD STOCK
FUND
Class A............ $1,000.00 $1,018.62 $ 6.65 1.31% 184 365
Class B............ $1,000.00 $1,014.31 $10.97 2.16% 184 365
Class C............ $1,000.00 $1,014.88 $10.40 2.05% 184 365
Class Y............ $1,000.00 $1,021.21 $ 4.04 0.79% 184 365
THE HARTFORD TARGET
RETIREMENT 2010
FUND
Class A............ $1,000.00 $1,022.50 $ 2.74 0.54% 184 365
Class B............ $1,000.00 $1,018.71 $ 6.56 1.29% 184 365
Class C............ $1,000.00 $1,018.64 $ 6.62 1.30% 184 365
Class Y............ $1,000.00 $1,024.02 $ 1.20 0.24% 184 365
</Table>
383
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD TARGET
RETIREMENT 2020
FUND
Class A............ $1,000.00 $1,017.90 $ 2.75
Class B............ $1,000.00 $1,013.90 $ 6.58
Class C............ $1,000.00 $1,014.10 $ 6.60
Class Y............ $1,000.00 $1,020.10 $ 1.20
THE HARTFORD TARGET
RETIREMENT 2030
FUND
Class A............ $1,000.00 $1,014.10 $ 2.69
Class B............ $1,000.00 $1,009.70 $ 6.27
Class C............ $1,000.00 $1,010.80 $ 5.27
Class Y............ $1,000.00 $1,015.20 $ 1.10
THE HARTFORD TAX-FREE
CALIFORNIA FUND
Class A............ $1,000.00 $1,044.70 $ 4.64
Class B............ $1,000.00 $1,040.80 $ 8.48
Class C............ $1,000.00 $1,040.70 $ 8.49
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD TARGET
RETIREMENT 2020
FUND
Class A............ $1,000.00 $1,022.48 $ 2.76 0.54% 184 365
Class B............ $1,000.00 $1,018.67 $ 6.60 1.30% 184 365
Class C............ $1,000.00 $1,018.65 $ 6.62 1.30% 184 365
Class Y............ $1,000.00 $1,024.02 $ 1.20 0.23% 184 365
THE HARTFORD TARGET
RETIREMENT 2030
FUND
Class A............ $1,000.00 $1,022.54 $ 2.70 0.53% 184 365
Class B............ $1,000.00 $1,018.97 $ 6.30 1.24% 184 365
Class C............ $1,000.00 $1,019.96 $ 5.30 1.04% 184 365
Class Y............ $1,000.00 $1,024.11 $ 1.11 0.22% 184 365
THE HARTFORD TAX-FREE
CALIFORNIA FUND
Class A............ $1,000.00 $1,020.67 $ 4.58 0.90% 184 365
Class B............ $1,000.00 $1,016.90 $ 8.38 1.65% 184 365
Class C............ $1,000.00 $1,016.89 $ 8.39 1.65% 184 365
</Table>
384
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD TAX-FREE
MINNESOTA FUND
Class A............ $1,000.00 $1,039.50 $ 4.37
Class B............ $1,000.00 $1,036.60 $ 7.92
Class C............ $1,000.00 $1,036.50 $ 7.91
Class E............ $1,000.00 $1,039.30 $ 4.12
Class H............ $1,000.00 $1,036.40 $ 7.91
Class L............ $1,000.00 $1,040.10 $ 4.32
Class M............ $1,000.00 $1,036.40 $ 7.91
Class N............ $1,000.00 $1,036.40 $ 7.91
Class Y............ $1,000.00 $1,040.50 $ 4.10
THE HARTFORD TAX-FREE
NATIONAL FUND
Class A............ $1,000.00 $1,048.20 $ 5.16
Class B............ $1,000.00 $1,043.60 $ 9.01
Class C............ $1,000.00 $1,043.50 $ 9.00
Class E............ $1,000.00 $1,048.80 $ 4.59
Class H............ $1,000.00 $1,044.30 $ 9.01
Class L............ $1,000.00 $1,047.10 $ 5.42
Class M............ $1,000.00 $1,044.40 $ 9.02
Class N............ $1,000.00 $1,043.50 $ 9.01
Class Y............ $1,000.00 $1,048.70 $ 4.59
THE HARTFORD TAX-FREE
NEW YORK FUND
Class A............ $1,000.00 $1,045.30 $ 4.38
Class B............ $1,000.00 $1,041.30 $ 8.23
Class C............ $1,000.00 $1,041.30 $ 8.23
THE HARTFORD TOTAL
RETURN BOND FUND
Class A............ $1,000.00 $1,039.00 $ 6.12
Class B............ $1,000.00 $1,035.10 $10.00
Class C............ $1,000.00 $1,036.30 $ 9.57
Class I............ $1,000.00 $1,015.80 $ 1.54
Class Y............ $1,000.00 $1,041.90 $ 3.59
THE HARTFORD U.S.
GOVERNMENT
SECURITIES FUND
Class A............ $1,000.00 $1,037.60 $ 5.91
Class B............ $1,000.00 $1,032.80 $ 9.82
Class C............ $1,000.00 $1,032.80 $ 9.75
Class E............ $1,000.00 $1,039.40 $ 4.26
Class H............ $1,000.00 $1,033.10 $ 9.37
Class L............ $1,000.00 $1,038.10 $ 5.54
Class M............ $1,000.00 $1,034.30 $ 9.38
Class N............ $1,000.00 $1,034.30 $ 9.38
Class Y............ $1,000.00 $1,031.40 $ 3.79
THE HARTFORD VALUE
FUND
Class A............ $1,000.00 $1,069.60 $ 7.15
Class B............ $1,000.00 $1,066.30 $11.18
Class C............ $1,000.00 $1,066.30 $11.19
Class Y............ $1,000.00 $1,072.30 $ 4.83
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD TAX-FREE
MINNESOTA FUND
Class A............ $1,000.00 $1,020.92 $ 4.33 0.85% 184 365
Class B............ $1,000.00 $1,017.43 $ 7.84 1.54% 184 365
Class C............ $1,000.00 $1,017.44 $ 7.84 1.54% 184 365
Class E............ $1,000.00 $1,021.17 $ 4.08 0.80% 184 365
Class H............ $1,000.00 $1,017.43 $ 7.84 1.54% 184 365
Class L............ $1,000.00 $1,020.97 $ 4.28 0.84% 184 365
Class M............ $1,000.00 $1,017.44 $ 7.83 1.54% 184 365
Class N............ $1,000.00 $1,017.44 $ 7.83 1.54% 184 365
Class Y............ $1,000.00 $1,021.18 $ 4.06 0.80% 184 365
THE HARTFORD TAX-FREE
NATIONAL FUND
Class A............ $1,000.00 $1,020.17 $ 5.09 1.00% 184 365
Class B............ $1,000.00 $1,016.38 $ 8.89 1.75% 184 365
Class C............ $1,000.00 $1,016.39 $ 8.89 1.75% 184 365
Class E............ $1,000.00 $1,020.72 $ 4.53 0.89% 184 365
Class H............ $1,000.00 $1,016.39 $ 8.89 1.75% 184 365
Class L............ $1,000.00 $1,019.91 $ 5.34 1.05% 184 365
Class M............ $1,000.00 $1,016.38 $ 8.90 1.75% 184 365
Class N............ $1,000.00 $1,016.39 $ 8.89 1.75% 184 365
Class Y............ $1,000.00 $1,020.72 $ 4.53 0.89% 184 365
THE HARTFORD TAX-FREE
NEW YORK FUND
Class A............ $1,000.00 $1,020.92 $ 4.33 0.85% 184 365
Class B............ $1,000.00 $1,017.14 $ 8.14 1.60% 184 365
Class C............ $1,000.00 $1,017.14 $ 8.13 1.60% 184 365
THE HARTFORD TOTAL
RETURN BOND FUND
Class A............ $1,000.00 $1,019.20 $ 6.06 1.19% 184 365
Class B............ $1,000.00 $1,015.37 $ 9.91 1.95% 184 365
Class C............ $1,000.00 $1,015.81 $ 9.47 1.86% 184 365
Class I............ $1,000.00 $1,006.83 $ 1.53 0.91% 61 365
Class Y............ $1,000.00 $1,021.69 $ 3.55 0.70% 184 365
THE HARTFORD U.S.
GOVERNMENT
SECURITIES FUND
Class A............ $1,000.00 $1,019.40 $ 5.86 1.15% 184 365
Class B............ $1,000.00 $1,015.54 $ 9.74 1.92% 184 365
Class C............ $1,000.00 $1,015.62 $ 9.66 1.90% 184 365
Class E............ $1,000.00 $1,021.03 $ 4.22 0.83% 184 365
Class H............ $1,000.00 $1,015.99 $ 9.29 1.83% 184 365
Class L............ $1,000.00 $1,019.77 $ 5.49 1.08% 184 365
Class M............ $1,000.00 $1,015.99 $ 9.29 1.83% 184 365
Class N............ $1,000.00 $1,015.99 $ 9.29 1.83% 184 365
Class Y............ $1,000.00 $1,021.48 $ 3.77 0.74% 184 365
THE HARTFORD VALUE
FUND
Class A............ $1,000.00 $1,018.30 $ 6.97 1.37% 184 365
Class B............ $1,000.00 $1,014.39 $10.90 2.15% 184 365
Class C............ $1,000.00 $1,014.37 $10.91 2.15% 184 365
Class Y............ $1,000.00 $1,020.54 $ 4.71 0.93% 184 365
</Table>
385
HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
EXPENSE EXAMPLE -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ACTUAL RETURN
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD
ACCOUNT ACCOUNT APRIL 30, 2006
VALUE VALUE THROUGH
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006
-------------- ---------------- -----------------
THE HARTFORD VALUE
OPPORTUNITIES FUND
Class A............ $1,000.00 $1,037.50 $ 7.18
Class B............ $1,000.00 $1,033.60 $10.93
Class C............ $1,000.00 $1,033.60 $11.01
Class H............ $1,000.00 $1,034.10 $10.18
Class I............ $1,000.00 $1,067.20 $ 1.99
Class L............ $1,000.00 $1,038.00 $ 6.36
Class M............ $1,000.00 $1,034.20 $10.18
Class N............ $1,000.00 $1,034.10 $10.18
Class Y............ $1,000.00 $1,039.40 $ 5.19
<Caption>
HYPOTHETICAL (5% RETURN BEFORE EXPENSES)
-----------------------------------------------------
EXPENSES PAID
BEGINNING ENDING DURING THE PERIOD DAYS
ACCOUNT ACCOUNT APRIL 30, 2006 ANNUALIZED IN THE DAYS
VALUE VALUE THROUGH EXPENSE CURRENT IN THE
APRIL 30, 2006 OCTOBER 31, 2006 OCTOBER 31, 2006 RATIO 1/2 YEAR FULL YEAR
-------------- ---------------- ----------------- ---------- -------- ---------
THE HARTFORD VALUE
OPPORTUNITIES FUND
Class A............ $1,000.00 $1,018.16 $ 7.11 1.40% 184 365
Class B............ $1,000.00 $1,014.46 $10.82 2.13% 184 365
Class C............ $1,000.00 $1,014.38 $10.91 2.15% 184 365
Class H............ $1,000.00 $1,015.20 $10.08 1.99% 184 365
Class I............ $1,000.00 $1,006.43 $ 1.94 1.15% 61 365
Class L............ $1,000.00 $1,018.97 $ 6.30 1.24% 184 365
Class M............ $1,000.00 $1,015.19 $10.09 1.99% 184 365
Class N............ $1,000.00 $1,015.19 $10.09 1.99% 184 365
Class Y............ $1,000.00 $1,020.12 $ 5.14 1.01% 184 365
</Table>
386
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
SHAREHOLDER MEETING RESULTS (UNAUDITED)
- --------------------------------------------------------------------------------
THE FOLLOWING PROPOSAL WAS ADDRESSED AND APPROVED AT A SPECIAL MEETING OF
SHAREHOLDERS HELD ON OCTOBER 24, 2006.
1. PROPOSAL TO APPROVE A SUB-ADVISORY AGREEMENT BETWEEN HARTFORD INVESTMENT
FINANCIAL SERVICES, LLC ("HIFSCO"), THE FUND'S INVESTMENT MANAGER, AND
HARTFORD INVESTMENT MANAGEMENT COMPANY ("HARTFORD INVESTMENT MANAGEMENT"),
AN AFFILIATE OF HIFSCO, PURSUANT TO WHICH HARTFORD INVESTMENT MANAGEMENT
WILL SERVE AS AN ADDITIONAL SUB-ADVISER OF THE FUND AND MANAGE A PORTION OF
THE FUND'S ASSETS.
<Table>
<Caption>
FOR AGAINST ABSTAIN
------------- ----------- -----------
Hartford SmallCap Growth Fund............................... 7,185,605.809 226,775.117 442,548.933
</Table>
THE FOLLOWING PROPOSAL WAS ADDRESSED AND APPROVED AT A SPECIAL MEETING OF
SHAREHOLDERS HELD ON NOVEMBER 16, 2006.
1. PROPOSAL TO APPROVE A SUB-ADVISORY AGREEMENT BETWEEN HIFSCO, THE FUNDS'
INVESTMENT MANAGER, AND HARTFORD INVESTMENT MANAGEMENT, AN AFFILIATE OF
HIFSCO, PURSUANT TO WHICH HARTFORD INVESTMENT MANAGEMENT WILL SERVE AS
SUB-ADVISER OF THE FUNDS AND MANAGE THE FUNDS' ASSETS.
<Table>
<Caption>
FOR AGAINST ABSTAIN
------------- ----------- -----------
Hartford Select MidCap Growth Fund.......................... 3,271,898.335 66,894.204 175,685.393
Hartford Select MidCap Value Fund........................... 3,340,187.995 124,137.279 151,903.620
</Table>
At the meeting held on August 1-2, 2006, the Board of Directors of The Hartford
Mutual Funds II, Inc. unanimously approved a proposal to reclassify several
classes of shares of each of the Funds. Under the proposal, shares of Classes E
and Z of each Fund would be reclassified as Class Y shares of equal net asset
value and shares of Classes M, N, and H of each Fund would be reclassified as
Class L shares of equal net asset value (collectively, the "Reclassifications").
The proposed Reclassification of each share class of each Fund must be approved
by shareholders of that class in order to be effected. If approved by
shareholders, the Board expects that each Reclassification would occur in the
first calendar quarter of 2007 on or before March 1, 2007.
A special meeting of shareholders of each of the affected share classes of each
Fund will be held on or about December 19, 2006, for the purpose of seeking the
approval of the proposed Reclassification of that class.
381
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED)
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), requires that each mutual fund's board of directors, including a majority
of those directors who are not "interested persons" of the mutual fund, as
defined in the 1940 Act ("Independent Directors"), annually review and consider
the continuation of the mutual fund's investment management and sub-advisory
agreements, after an initial two year period.
At a meeting held on August 1-2, 2006, the Board of Directors of the Funds,
including each of the Independent Directors, unanimously voted to approve the
investment management agreement for each Fund with an agreement up for renewal
with Hartford Investment Financial Services, LLC ("HIFSCO") and the investment
sub-advisory agreements between HIFSCO and each Fund's respective sub-adviser(s)
("sub-advisers," and together with HIFSCO, "advisers") -- Hartford Investment
Management Company ("Hartford Investment Management"), Wellington Management
Company, LLP ("Wellington"), Chartwell Investment Partners, L.P. ("Chartwell"),
Goldman Sachs Asset Management, L.P. ("GSAM"), Northern Capital Management, LLC
("Northern Capital"), Artisan Partners Limited Partnership ("Artisan"), Cramer
Rosenthal McGlynn, LLC ("CRM"), Sterling Capital Management LLC ("Sterling"),
Jennison Associates LLC ("Jennison") and Oberweis Asset Management, Inc.
("Oberweis") (collectively, the "agreements"). In the months preceding this
meeting, the Board requested, received, and reviewed written responses from the
advisers to questions posed to them on behalf of the Independent Directors and
supporting materials relating to those questions and responses. In addition, the
Board received in-person presentations about each Fund and the related
agreements by Fund officers and representatives of HIFSCO at the Board's
meetings on June 20-21, 2006 and August 1-2, 2006. In considering the approval
of the agreements, the Board also took into account information provided to the
Board at its meetings throughout the year, including reports on Fund
performance, compliance, shareholder services, and the other services provided
to the Funds by the advisers and their affiliates.
The Independent Directors, advised by independent legal counsel, engaged two
service providers to assist them with evaluating the agreements with respect to
each Fund. Lipper, Inc. ("Lipper"), an independent provider of investment
company data, was retained to provide the Board with reports on how each Fund's
management and sub-advisory fees, overall expense ratios, and investment
performance compared to those of mutual funds with similar investment objectives
in various peer groups ("peer funds"). The Independent Directors also engaged an
independent financial services consulting firm (the "Consultant") to assist them
in evaluating each Fund's management and sub-advisory fees, overall expense
ratios and investment performance.
The Board considered the agreements for each Fund at the June and August
meetings. In connection with these deliberations, HIFSCO agreed to reduce fees
and shareholder expenses for a number of the Funds. In determining to continue
the agreements for each Fund, the Board determined that the proposed management
fee structure for each Fund, taking into account these reductions, was fair and
reasonable and that continuation of the agreements was in the best interests of
each Fund and its shareholders. In determining to re-approve the agreements, the
Board considered the following categories of material factors, among others,
relating to the agreements.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board requested and considered information concerning the nature, extent,
and quality of the services provided to the Funds by the advisers. The Board
considered, among other things, the terms of the agreements, the range of
services provided, and the advisers' organizational structure, systems and
personnel. The Board received information on the experience of senior management
and relevant investment and other personnel of the advisers, and the adequacy of
the time and attention devoted by them to the Funds. The Board considered each
adviser's reputation and overall financial strength, as well as its willingness
to consider and implement organizational and operational changes, including
hiring additional personnel, designed to improve services to the Funds, and its
investments in infrastructure in light of increased regulatory requirements and
other developments. The Board considered the progress that Hartford Investment
Management has made in developing an equity management capability. In addition,
the Board considered the quality of each adviser's communications with the
Board, and responsiveness to Board inquiries.
The Board also requested and evaluated information concerning each adviser's
regulatory and compliance environment. In this regard, the Board requested and
reviewed information on each adviser's compliance policies and procedures, their
compliance history, and a report from the Funds' Chief Compliance Officer on
each adviser's compliance with applicable laws and regulations, including their
responses to regulatory developments and compliance issues raised by regulators.
The Board also noted the advisers' support of the Funds' compliance control
structure, particularly the resources devoted by the advisers in support of the
Funds' obligations pursuant to Rule 38a-1 under the 1940 Act.
With respect to HIFSCO, the Board noted that under the agreements, HIFSCO is
responsible for the management of each Fund, including overseeing fund
operations and service providers, and provides administrative services to the
Funds as well as investment advisory services in connection with selecting,
monitoring and supervising sub-advisers. With respect to the Asset Allocation
Funds, the Board noted that HIFSCO is also responsible for administering the
asset allocation programs for the Funds. The Board considered its experiences
with HIFSCO with respect to each of these services. The Board considered that
HIFSCO or its affiliates are responsible for providing the Funds' officers and
paying their salaries and expenses. In addition, the Board considered the nature
and quality of the services provided to the Funds and their shareholders by
HIFSCO's affiliates.
With respect to the sub-advisers, who provide day-to-day portfolio management
services, the Board considered the quality of each sub-adviser's investment
personnel, their ability to attract and retain qualified investment
professionals, their investment philosophy and process, investment research
capabilities and resources, performance record, trade execution capabilities and
experience.
Based on these considerations, the Board concluded that it was satisfied with
the nature, extent and quality of the services provided to the Funds by HIFSCO
and each of the sub-advisers.
PERFORMANCE OF THE FUNDS, HIFSCO, AND THE SUB-ADVISERS
The Board considered the investment performance of each Fund. In this regard,
the Board considered information and materials provided to the Board from HIFSCO
and Lipper comparing each Fund's short-term and long-term and recent investment
performance over various periods of time with appropriate benchmark indices, and
with a performance universe of funds selected by Lipper. This information
included performance reports (provided by Lipper, HIFSCO and the sub-advisers)
and discussions with portfolio managers and other representatives of the
sub-advisers at board meetings throughout the year, as well as the information
provided especially for the annual contract review. The Board also considered
the analysis provided by the Consultant relating to each Fund's performance
track record.
382
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
The Board considered HIFSCO's cooperation with the Investment Committee, which
assists the Board in evaluating the performance of the Funds at periodic
meetings throughout the year. The Board reviewed the performance of each Fund
over the different time periods presented in the materials and evaluated each
adviser's analysis of the Funds' performance for these time periods, with
specific attention to information indicating underperformance of certain Funds
for specific time periods relative to a peer group or benchmark, and the causes
for such underperformance. In evaluating the performance of each Fund, the Board
also considered whether the Fund had been in operation for a sufficient time
period to establish a meaningful performance track record.
Based on these considerations, the Board concluded with respect to each Fund
that the Fund's performance over time has been satisfactory, and that it had
continued confidence in HIFSCO's and the sub-advisers' overall capabilities to
manage each Fund.
COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISERS
The Board reviewed information regarding HIFSCO's cost to provide investment
management and related services to the Funds and HIFSCO's profitability, both
overall and for each Fund, on a pre-tax basis without regard to distribution
expenses. In this regard, the Board noted that HIFSCO had worked with
PriceWaterhouseCoopers to refine its methodology for calculating profitability.
The Board considered the fact that HIFSCO has subsidized certain of the Funds'
fees and total operating expenses through expense limitations and voluntary fee
waivers, including expense limitations and voluntary fee waivers negotiated by
the Board in connection with the renewal of the agreements. The Board also
requested and reviewed information about the profitability to HIFSCO and its
affiliates from all services provided to the Funds and all aspects of their
relationship with the Funds.
With respect to those Funds which are sub-advised by Hartford Investment
Management, an affiliate of HIFSCO, the Board considered the costs and
profitability information for HIFSCO and Hartford Investment Management in the
aggregate. The Board also requested and received information relating to the
operations and profitability of the other sub-advisers. In evaluating such
sub-advisers' profitability with respect to the Funds, the Board considered
primarily HIFSCO's and the sub-advisers' representations that HIFSCO had
negotiated the sub-advisory fees at arm's length, and the sub-advisers'
representations that the fees charged to HIFSCO were comparable to fees charged
by the sub-advisers' to similar clients.
Based on these considerations, the Board concluded that the profits anticipated
to be realized by the advisers and their affiliates from their relationships
with the Funds would not be excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISERS
The Board considered comparative information with respect to the investment
management fees to be paid by the Funds to HIFSCO, the investment sub-advisory
fees to be paid by HIFSCO to the sub-advisers, and the total expense ratios of
the Funds. In this regard, the Board requested and reviewed information from
HIFSCO and each sub-adviser relating to the management and sub-advisory fees,
and total operating expenses, for each Fund. The Board also reviewed written
materials from Lipper providing comparative information about each Fund's
management and sub-advisory fees, total expense ratios and the components
thereof, relative to those of peer groups. While the Board recognized that
comparisons between the Funds and peer funds are imprecise, given the differing
service levels and characteristics of mutual funds, and the different business
models and cost structures of advisers, the comparative information provided by
Lipper assisted the Board in evaluating the reasonableness of each Fund. In
addition, the Board considered the analysis and recommendations of the
Consultant relating to each Fund's management and sub-advisory fees and total
operating expenses.
The Board particularly considered HIFSCO's agreement to lower certain Funds'
fees and expenses in connection with the contract renewal process. In its
deliberations, the Board gave significant weight to each Fund's overall expense
ratio, net of these reductions. The following reductions were agreed to at the
meeting, each effective November 1, 2006:
Management Fee Waivers or Reductions: 5 basis points ("bps") -- Advisers Fund,
Stock Fund, Aggressive Growth Allocation Fund, Growth Allocation Fund, Balanced
Allocation Fund, Conservative Allocation Fund, Income Allocation Fund,
Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund
and Target Retirement 2030 Fund; 8 bps -- Total Return Bond Fund; 10
bps -- Equity Income Fund, Focus Fund, Global Communications Fund, Global
Financial Services Fund, Global Health Fund, Global Technology Fund, Inflation
Plus Fund, International Capital Appreciation Fund and International Small
Company Fund; 15 bps -- Tax-Free Minnesota Fund and Tax-Free National Fund; 16
bps -- U.S. Government Securities Fund; 20 bps -- High Yield Fund.
Permanent Total Operating Expense Caps for Class A Shares of 100 bps: Floating
Rate Fund, Income Fund, Inflation Plus Fund, Money Market Fund, Short Duration
Fund, Tax-Free California Fund, Tax-Free Minnesota Fund, Tax-Free National Fund,
Tax-Free New York Fund, Total Return Bond Fund and U.S. Government Securities
Fund.
Voluntary Total Operating Expense Caps: HIFSCO agreed to voluntary total
operating expense caps in varying amounts for the following Funds: Advisers
Fund, Capital Appreciation Fund, Capital Appreciation II Fund, Disciplined
Equity Fund, Dividend and Growth Fund, Equity Income Fund, Focus Fund, Global
Communications Fund, Global Financial Services Fund, Global Health Fund, Global
Leaders Fund, Global Technology Fund, Growth Fund, Growth Opportunities Fund,
High Yield Fund, Income Fund, Inflation Plus Fund, International Capital
Appreciation Fund, International Opportunities Fund, International Small Company
Fund, MidCap Fund, MidCap Value Fund, Money Market Fund, Select MidCap Growth
Fund, Select MidCap Value Fund, Select SmallCap Growth Fund, Short Duration
Fund, Small Company Fund, SmallCap Growth Fund, Stock Fund, Tax-Free California
Fund, Tax-Free Minnesota Fund, Tax-Free National Fund, Tax-Free New York Fund,
Value Fund, Value Opportunities Fund, Total Return Bond Fund, U.S. Government
Securities Fund, Aggressive Growth Allocation Fund, Growth Allocation Fund,
Balanced Allocation Fund, Conservative Allocation Fund, Income Allocation Fund,
Retirement Income Fund, Target Retirement 2010 Fund, Target Retirement 2020 Fund
and Target Retirement 2030 Fund.
Based on these considerations, the Board concluded that each Fund's fees and
total operating expenses are within a range that is competitive with fees and
total operating expenses charged by peer funds, and, in conjunction with the
information about quality of services, profitability, economies of scale, and
other matters discussed, are reasonable.
383
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
ECONOMIES OF SCALE
The Board requested and considered information regarding the advisers'
realization of economies of scale with respect to the Funds, and whether the fee
levels reflect these economies of scale for the benefit of each Fund's
investors. With respect to HIFSCO, the Board considered representations from
HIFSCO that it is difficult to anticipate whether and the extent to which
economies may be realized by HIFSCO as assets grow over time. The Board reviewed
the breakpoints in the advisory fee schedule for each Fund, which reduce fees as
Fund assets grow over time. The Board recognized that Funds with assets beyond
the last breakpoint level continue to benefit from economies of scale, because
additional assets are charged the lowest breakpoint fee, resulting in lower
overall effective management fee rates. The Board considered that certain Funds
may achieve some economies as certain fixed expenses are spread over a larger
asset base, noting that there is no precise way to measure such economies, and
that certain expenses do not necessarily decrease as assets increase. The Board
also considered that expense limitations and fee waivers that reduce Fund
expenses at all asset levels can have the same effect as breakpoints in sharing
economies of scale with shareholders, and that a schedule that reaches a lower
breakpoint quickly provides shareholders with the benefit of anticipated or
potential economies of scale.
The Board reviewed and evaluated materials from Lipper showing how the fee
schedules of peer funds reflect economies of scale for the benefit of investors
as a peer fund's assets hypothetically increase over time. Based on information
provided by HIFSCO, Lipper, and the Consultant, the Board recognized that there
is no uniform methodology for establishing breakpoints, or uniform pattern in
asset levels that trigger breakpoints or the amounts of breakpoints triggered.
After considering all of the information available to it, the Board concluded
that it was satisfied with the extent to which economies of scale would be
shared for the benefit of each Fund's investors, based on currently available
information and the effective advisory fees and expense ratios for the Funds at
their current and reasonably anticipated asset levels. The Board noted, however,
that it would continue to monitor future growth in Fund assets and the
appropriateness of additional breakpoints.
OTHER BENEFITS
The Board considered other benefits to the advisers and their affiliates from
their relationships with the Funds.
The Board reviewed information noting that Hartford Life Insurance Company, Inc.
("Hartford Life"), an affiliate of HIFSCO, receives fees for fund accounting and
related services from the Funds, and the Board considered information on
expected profits to Hartford Life or its affiliates for such services. The Board
also reviewed the fact that Hartford Administrative Services Company ("HASCO"),
the Funds' transfer agent and an affiliate of HIFSCO, receives transfer agency
compensation from the Funds, and the Board reviewed information on the expected
profitability of the Funds' transfer agency function to HASCO. The Board noted,
in this regard, that HASCO is a recognized leader in providing high quality
services to Fund shareholders. The Board considered information provided by
HASCO indicating that the per-account fees charged by HASCO to the Funds are
reasonable and in line with industry standards. The Board additionally
considered that HASCO had proposed changes to the transfer agency fee structure
and reductions in the fees charged to certain types of accounts that would
result in estimated shareholder savings of approximately $2.5 million per year.
The Board also considered that, as principal underwriter of the Funds, HIFSCO
receives 12b-1 fees from the Funds and receives all or a portion of the sales
charges on sales or redemptions of certain classes of shares. The Board also
noted that certain affiliates of HIFSCO distribute shares of the Funds and
receive compensation in that connection.
The Board considered benefits to the sub-advisers from their proposed use of the
Funds' brokerage commissions to obtain soft dollar research, and representations
from HIFSCO and the sub-advisers that the sub-advisers would not be making any
revenue-sharing payments or any other type of distribution payments to HIFSCO or
its affiliates.
The Board also considered the fact that Hartford Life had agreed, effective
January 1, 2007, to no longer charge the Funds for legal services provided to
the Funds by personnel of Hartford Life. Based upon expense information for the
prior calendar year, this change will result in savings to the Funds of
approximately $340,000 per year.
The Board considered the benefits to shareholders of being part of the Hartford
family of funds, including the right to exchange investments between the same
class of funds without a sales charge, the ability to reinvest Fund dividends
into other funds in the family and to combine holdings in other Funds to obtain
a reduced sales charge. The Board considered HIFSCO's efforts to provide
investors in the family with a broad range of investment styles and asset
classes, and its entrepreneurial risk in initiating new funds to expand these
opportunities for shareholders.
* * * *
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Funds and their shareholders
for the Board to approve the agreements for an additional year. In reaching this
decision, the Board did not assign relative weights to the factors discussed
above or deem any one or group of them to be controlling in and of themselves.
In connection with their deliberations, the Independent Directors and the full
Board met separately in executive session on several occasions, with independent
legal counsel, to review the relevant materials and consider their
responsibilities under relevant laws and regulations.
384
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
THE HARTFORD SELECT SMALL CAP VALUE FUND
(FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD
SELECT SMALL CAP VALUE FUND)
At a meeting held on February 8, 2006, the Board of Directors unanimously voted
to approve The Hartford Select SmallCap Value Fund's (the "Fund") investment
management agreement with HIFSCO and the investment sub-advisory agreements
between HIFSCO and each of the Fund's sub-advisers ("Sub-Advisers"), Kayne
Anderson Rudnick Investment Management, LLC ("KAR"), Metropolitan West Capital
Management ("MetWest Capital") and SSgA Funds Management, Inc. ("SSgA")
(collectively, the "Agreements"'). In this regard, the Board reviewed written
responses from HIFSCO and the proposed sub-advisers to questions posed to them
on behalf of the Independent Directors and supporting materials relating to
those questions and responses (the "Adviser Materials"). In addition, the Board
received in-person presentations about the proposed sub-advisers by Fund
officers and representatives of HIFSCO. The Board's Investment Committee had
also met in person with representatives of the proposed sub-advisers and
received presentations regarding the capabilities of the proposed sub-advisers
and their portfolio management teams and the associated benefits to the Fund and
its shareholders.
In determining to approve the Agreements, the Board determined that the
Agreements, including the appointment of the Sub-Advisers, were fair and
reasonable and in the best interests of the Fund and its shareholders. The Board
considered the following categories of material factors, among others, relating
to the Agreements.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered the nature, extent, and quality of the services to be
provided to the Fund by HIFSCO and the Sub-Advisers. The Board considered, among
other things, HIFSCO's and each Sub-Adviser's organizational structure,
personnel who would provide services to the Fund, capacity, investment process
and regulatory/compliance history. In addition, the Board considered each
Sub-Adviser's investment philosophy, performance record, trade execution
capabilities, and concluded that the Fund had merit as an addition to the
Hartford family of funds. The Board further considered its past experiences with
HIFSCO with respect to the services it has provided to other Hartford-sponsored
funds, including HIFSCO's management and monitoring of the funds' sub-advisers,
the quality of HIFSCO's communications with the Board, the compliance structure
and systems established by HIFSCO and HIFSCO's responsiveness to Board
inquiries.
The Board considered the resources committed by each Sub-Advisor to the Fund and
considered that the Investment Committee of the Board had previously met with
representatives from each Sub-Adviser, and that the Investment Committee was
satisfied with the quality of the presentations. The Board concluded that it was
satisfied with the nature, extent and quality of the services to be provided to
the Fund by HIFSCO and each of the Sub-Advisers.
PERFORMANCE OF HIFSCO AND THE SUB-ADVISERS
The Board considered the investment performance of the Sub-Advisers or their
portfolio management teams in managing funds and accounts which follow
investment strategies similar to the Fund (i.e., focusing on small-cap
investments). In this regard, the Board considered each Sub-Adviser's prior
performance in managing assets in the small-cap value and other asset categories
with respect to both benchmark and various peer-group comparisons. In addition,
the Board considered hypothetical combined performance data relating to the
three Sub-Advisers. The Board concluded that, while there could be no guarantee
of future results, the Board was satisfied that HIFSCO and each Sub-Adviser have
the capability of providing satisfactory investment performance for the Fund.
COST OF SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISERS
The Board reviewed information regarding HIFSCO's and the Sub-Advisers' cost to
provide investment management and related services to the Fund and the
profitability to them from managing the Fund. The Board considered that
initially HIFSCO and the Sub-Advisers will provide substantial subsidies to the
Fund in the form of caps on operating expenses of the Fund. The Board also
considered representations by HIFSCO that it did not recommend the Sub-Advisers
with a view to increase profitability as investment manager to the Fund. The
Board concluded that the profits anticipated to be realized by HIFSCO and the
Sub-Advisers from their relationships with the Fund would not be excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISERS
The Board considered both the investment management fees to be paid by the Fund
to HIFSCO and the sub-advisory fees to be paid by HIFSCO to the Sub-Advisers
under the Agreements. The Board considered HIFSCO's representation that it had
negotiated the Sub-Advisers' fees at arm's length, and that the fees that HIFSCO
would pay to the Sub-Advisers were comparable to fees charged by the
Sub-Advisers to other institutional clients. The Board also considered
information provided by HIFSCO indicating that the proposed management fee for
the Fund is in-line with the average and median management fee of the Fund's
peer group at all asset levels. Based on these considerations, the Board
concluded that the Fund's management fee and sub-advisory fees, in conjunction
with the information about quality of services, profitability, and other matters
discussed, supports the conclusion that these fees are reasonable.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized as
the Fund grows and whether fee levels reflect these economies of scale for the
benefit of the Fund's investors. The Board reviewed the breakpoints in HIFSCO's
management fee schedule. With respect to economies of scale, the Board
considered the breakpoints in the Fund's sub-advisory fee schedules and how any
benefits from economies of scale would be realized by the various parties. The
Board reviewed relevant information included in the Adviser Materials providing
comparative breakpoint information for other fund groups. The Board concluded
that it was satisfied with the extent to which economies of scale would be
shared for the benefit of the Fund's investors.
385
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
OTHER BENEFITS
The Board considered other benefits to HIFSCO, the Sub-Advisers and their
affiliates from their relationships with the Fund. In addition, the Board
considered benefits to KAR from its proposed use of the Fund's brokerage
commissions to obtain research that could be used for KAR's clients other than
the Fund, and representations from HIFSCO and the Sub-Advisers that the
Sub-Advisers would not be making any revenue-sharing payments or any other type
of distribution payments to HIFSCO or its affiliates. The Board also considered
representations by SSgA that it does not plan to use the Fund's brokerage
commissions to obtain soft dollar benefits.
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Fund and its shareholders for
the Board to approve the Agreements. In reaching this decision, the Board did
not assign relative weights to the factors discussed above or deem any one or
group of them to be controlling in and of themselves.
THE HARTFORD MIDCAP GROWTH FUND
(FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD
MIDCAP GROWTH FUND)
At a meeting held on February 8, 2006, the Board of Directors unanimously voted
to approve the investment management agreement between The Hartford MidCap
Growth Fund (the "Fund") and HIFSCO, and the investment sub-advisory agreement
between HIFSCO and the Fund's sub-adviser, Hartford Investment Management
Company ("Hartford Investment Management") (collectively, the "Agreements"),
relating to the Fund. In advance of the February meeting, the Board reviewed
written responses from HIFSCO and Hartford Investment Management to questions
posed to them on behalf of the Independent Directors and supporting materials
relating to those questions and responses (the "Adviser Materials"). In
addition, the Board received in-person presentations about the Fund and the
Agreements by representatives of HIFSCO and Hartford Investment Management at
the Board's meeting on February 1, 2006.
In determining to approve the Agreements, the Board determined that the
Agreements, including the appointment of Hartford Investment Management as
sub-adviser, were fair and reasonable and in the best interests of the Fund and
its shareholders. The Board considered the following categories of material
factors, among others, relating to the Agreements.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information and data concerning the nature, extent, and
quality of the services to be provided to the Fund by HIFSCO and Hartford
Investment Management. The Board considered, among other things, the terms of
the Agreements, the range of services to be provided, and HIFSCO's and Hartford
Investment Management's organizational structure, systems and personnel. The
Board considered HIFSCO's and Hartford Investment Management's reputation and
overall financial strength, noting that Hartford Investment Management's current
reputation and the Board's past experience with Hartford Investment Management
was predominantly based on Hartford Investment Management's performance as a
fixed income manager.
With respect to the day-to-day portfolio management services to be provided by
Hartford Investment Management, the Board met with Mark Waterhouse, the proposed
portfolio manager for the Fund, and members of his management team and
considered the quality of Hartford Investment Management's investment personnel
(including its ability to attract and retain qualified investment
professionals); its investment philosophy and process (and adherence to that
philosophy and process); and its investment research capabilities and resources,
performance record, and trade execution capabilities and experience. The Board
recognized that HIFSCO is responsible for the overall management of the Fund and
providing investment advisory services in connection with selecting, monitoring
and supervising the Fund's sub-adviser and had recommended to the Board that
Hartford Investment Management be appointed as a sub-adviser to the Fund. Based
on these considerations, the Board concluded that it was satisfied with the
nature, extent and quality of the services to be provided to the Fund by HIFSCO
and Hartford Investment Management.
PERFORMANCE OF HIFSCO AND THE SUB-ADVISER
The Board considered the investment performance of Hartford Investment
Management and its portfolio management team. As Hartford Investment Management
did not have a performance track record for active equity management, HIFSCO
presented information regarding the performance record of Mr. Waterhouse. This
information included the performance record for another Hartford-sponsored fund
during the period from June 30, 1997 through December 31, 1999, when Mr.
Waterhouse, as an employee of Wellington Management, was a portfolio manager for
the fund, and the performance record for another mutual fund for which Mr.
Waterhouse had served as portfolio manager prior to his experience at Wellington
Management. HIFSCO and Hartford Investment Management provided additional
information about the broad range of Mr. Waterhouse's and his team's recent
investment experience and about their investment philosophy and process. Based
on these considerations, the Board concluded that, while there could be no
guarantee of future results, the Board was satisfied that HIFSCO and Hartford
Investment Management have the capability of providing satisfactory investment
performance for the Fund.
COST OF SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISER
The Board reviewed information regarding HIFSCO's and Hartford Investment
Management's cost to provide investment management and related services to the
Fund and the profitability to them from managing the Fund. The Board considered
information related to both HIFSCO and Hartford Investment Management, because
it was proposed that Hartford Investment Management be reimbursed for its costs
rather than receive a set fee, with the result that any profitability from
managing the Fund would be realized only with respect to HIFSCO. The Board
considered information about the profitability to HIFSCO and its affiliates from
all services to be provided to the Fund and all aspects of its relationships
with the Fund. In evaluating HIFSCO's profitability, the Board considered that
initially HIFSCO will provide subsidies to the Fund in the form of caps on
operating expenses of the Fund, and that future profitability to HIFSCO would
depend on the growth of equity assets under management. The Board also
considered representations by HIFSCO that it did not recommend Hartford
Investment Management with a view to increase profitability as investment
manager to
386
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
the Fund. The Board concluded that the profits anticipated to be realized by
HIFSCO, Hartford Investment Management and their affiliates from their
relationships with the Fund would not be excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISER
The Board considered comparative information with respect to the investment
management fees to be paid by the Fund to HIFSCO and its affiliates. In this
regard, the Board received information from HIFSCO and Hartford Investment
Management relating to the management fees, sub-advisory fees, and total
operating expenses for the Fund. HIFSCO also referenced information comparing
the Fund's management fees and total operating expenses relative to those of a
peer universe of funds identified by Lipper Inc., an independent provider of
investment company data ("Lipper"), as being in the mid-capitalization growth
category. In considering the reasonableness of the Fund's fees and total expense
ratios, the Board particularly considered that according to the information
provided by Lipper, the proposed management fee for the Fund would be below the
average and median management fee of its peer group at all asset levels. Based
on these considerations, the Board concluded that the Fund's management fee and
sub-advisory fees, in conjunction with the information about quality of
services, profitability, and other matters discussed, supports the conclusion
that these fees are reasonable.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized as
the Fund grows and whether fee levels reflect these economies of scale for the
benefit of the Fund's investors. The Board reviewed the breakpoints in HIFSCO's
management fee schedule. With respect to economies of scale, the Board reviewed
relevant information included in the Adviser Materials providing comparative
breakpoint information for other funds in the Fund's peer groups. The Board also
considered representations from HIFSCO that the initial start-up costs Hartford
Investment Management would incur in building its equity management capability
would be high relative to the amount of assets under management. However, the
Board acknowledged that HIFSCO and Hartford Investment Management were likely to
realize economies of scale over time as Hartford Investment Management's equity
assets under management increased. The Board concluded that it was satisfied
with the extent to which economies of scale would be shared for the benefit of
the Fund's investors.
OTHER BENEFITS
The Board considered other benefits to HIFSCO, Hartford Investment Management
and their affiliates from their relationships with the Fund.
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Fund and its shareholders for
the Board to approve the Agreements. In reaching this decision, the Board did
not assign relative weights to the factors discussed above or deem any one or
group of them to be controlling in and of themselves.
THE HARTFORD BALANCED INCOME FUND
(FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD
BALANCED INCOME FUND)
At a meeting held on May 9-10, 2006, the Board of Directors unanimously voted to
approve the investment management agreement between The Hartford Balanced Income
Fund (the "Fund") and HIFSCO, and the investment sub-advisory agreement between
HIFSCO and the Fund's sub-adviser, Wellington Management Company LLP
("Wellington Management") (collectively, the "Agreements"), relating to the
Fund. In advance of the May meeting, the Board reviewed written responses from
HIFSCO and Wellington Management to questions posed to them on behalf of the
Independent Directors and supporting materials relating to those questions and
responses (the "Adviser Materials"). In addition, the Board's Investment
Committee received in-person presentations about the Fund and the Agreements by
representatives of HIFSCO and Wellington Management at the Committee's meeting
on May 9, 2006.
In determining to approve the Agreements, the Board determined that the
Agreements, including the appointment of Wellington Management as sub-adviser,
were fair and reasonable and in the best interests of the Fund and its
shareholders. The Board considered the following categories of material factors,
among others, relating to the Agreements.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information and data concerning the nature, extent, and
quality of the services to be provided to the Fund by HIFSCO and Wellington
Management. The Board considered, among other things, the terms of the
Agreements, the range of services to be provided, and HIFSCO's and Wellington
Management's organizational structure, systems and personnel. In particular, the
Board considered that the Fund's proposed strategy of providing current income
with growth of capital requires the Fund to allocate assets between a fixed
income sleeve and an equity sleeve, and that Wellington Management has the
personnel and resources to manage both sleeves. The Board considered HIFSCO's
and Wellington Management's reputation and overall financial strength, noting
Wellington Management's current reputation and the Board's past experience with
Wellington Management as sub-adviser for other Hartford-sponsored mutual funds.
The Board considered HIFSCO's and Wellington Management's willingness to hire
additional personnel designed to improve services to the Fund and their
investments in infrastructure in light of increased regulatory requirements and
other developments.
With respect to the day-to-day portfolio management services to be provided by
Wellington Management, the Investment Committee met with Jack Ryan, the proposed
portfolio manager for the Fund's equity sleeve, and with Lucius Hill, the
proposed portfolio manager for the Fund's fixed income sleeve, and with members
of their management team. The Board considered Wellington Management's
investment philosophy and process (and adherence to that philosophy and
process); and its investment research capabilities and resources, performance
record, and trade execution capabilities and experience. The Board recognized
that HIFSCO is responsible for the overall management of the Fund and providing
investment advisory services in connection with selecting, monitoring and
supervising the Fund's sub-adviser, and that HIFSCO had recommended to the Board
that Wellington Management be appointed as a sub-adviser to the Fund. Based on
these considerations, the Board concluded that it was satisfied with the nature,
extent and quality of the services to be provided to the Fund by HIFSCO and
Wellington Management.
387
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
PERFORMANCE OF HIFSCO AND THE SUB-ADVISER
The Board considered the investment performance Wellington Management and its
portfolio management team. HIFSCO and Wellington Management presented
information regarding the performance record of Mr. Ryan and Mr. Hill and their
experience as portfolio managers for other balanced portfolios sub-advised by
Wellington Management. This information included reports from HIFSCO and
Wellington Management showing the hypothetical three year performance of a model
portfolio and a model portfolio's benchmark reflecting the Fund's proposed
investment strategy and investment process. The Board acknowledged the
difficulty in evaluating performance because there is currently no ideal
benchmark for the proposed allocation of Fund assets. Based on these
considerations, the Board concluded that, while there could be no guarantee of
future results, the Board was satisfied that HIFSCO and Wellington Management
have the capability of providing satisfactory investment performance for the
Fund.
COST OF SERVICES AND PROFITABILITY OF HIFSCO AND THE SUB-ADVISER
The Board reviewed information regarding HIFSCO's and Wellington Management's
costs to provide investment management and related services to the Fund and the
profitability to them from managing the Fund. The Board considered the proposed
Advisory and Sub-Advisory fee schedules and considered information about the
profitability to HIFSCO and its affiliates from all services to be provided to
the Fund and all aspects of their relationships with the Fund. In evaluating
HIFSCO's profitability, the Board considered that initially HIFSCO will provide
subsidies to the Fund in the form of caps on operating expenses of the Fund, and
that future profitability to HIFSCO and Wellington Management would depend on
the growth of assets under management. The Board also considered representations
by HIFSCO that it did not recommend Wellington Management with a view to
increase profitability as investment manager to the Fund. The Board concluded
that the profits anticipated to be realized by HIFSCO, it's affiliates and
Wellington Management from their relationships with the Fund would not be
excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND THE SUB-ADVISER
The Board considered comparative information with respect to the investment
management fees to be paid by the Fund to HIFSCO and the sub-advisory fee that
HIFSCO will pay Wellington Management. In this regard, the Board received
information from HIFSCO and Wellington Management relating to the management
fees, sub-advisory fees, and total operating expenses for the Fund. HIFSCO also
referenced information comparing the Fund's management fees and total operating
expenses relative to those of a peer universe of funds identified by Lipper as
pursuing a balanced allocation strategy. In considering the reasonableness of
the Fund's fees and total expense ratios, the Board particularly considered that
according to the information provided by Lipper, the proposed management fee for
the Fund would be below the average management fee of its peer group at all
asset levels. Based on these considerations, the Board concluded that the Fund's
management fee and sub-advisory fees, in conjunction with the information about
quality of services, profitability, and other matters discussed, supports the
conclusion that these fees are reasonable.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized as
the Fund grows and whether fee levels reflect these economies of scale for the
benefit of Fund's investors. The Board reviewed the breakpoints in HIFSCO's
management fee schedule. The Board considered HIFSCO's representations that the
Fund could be expected to achieve some economies, and that certain costs
incurred will decline as assets in the Fund grow. With respect to economies of
scale, the Board considered the breakpoints in the Fund's sub-advisory fee
schedules and how any benefits from economies of scale would be realized by the
various parties. The Board reviewed relevant information included in the Adviser
Materials providing comparative breakpoint information for other funds in the
Fund's peer group. Based on these considerations, the Board concluded that it
was satisfied with the extent to which economies of scale would be shared for
the benefit of the Fund's investors.
OTHER BENEFITS
The Board considered other benefits to HIFSCO and Wellington Management from
their relationships with the Fund. The Board also considered information in the
Adviser Materials about HIFSCO affiliates that will provide services to the Fund
and their anticipated benefits from their relationships with the Fund. In
addition, the Board considered Wellington Management's statements that
Wellington Management conducts its own research.
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Fund and its shareholders for
the Board to approve the Agreements. In reaching this decision, the Board did
not assign relative weights to the factors discussed above or deem any one or
group of them to be controlling in and of themselves.
THE HARTFORD SMALLCAP GROWTH FUND
(FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD
SMALLCAP GROWTH FUND)
At a meeting held on June 20 and 21, 2006, the Board of Directors of the Fund
unanimously voted to approve the investment sub-advisory agreement between
HIFSCO and Hartford Investment Management (the "Agreement") with respect to the
Fund.
In advance of the June meeting, the Board reviewed written responses from HIFSCO
and Hartford Investment Management to questions posed to them on behalf of the
Independent Directors and supporting materials relating to those questions and
responses. The Board also received in-person presentations from management and
the proposed portfolio manager for the Fund, Hugh Whelan, regarding the
capabilities of Hartford Investment Management's multi-discipline equity
management team and the associated benefits to the Fund and its shareholders.
The Board's Investment Committee also received an in-person presentation from
the portfolio manager about the team's capabilities and the associated benefits
to shareholders at its meeting on May 9, 2006. In addition, the Board had
previously received information with respect to the Fund and Hartford Investment
Management when Hartford Investment Management was re-approved as a sub-adviser
to certain of the Company's other funds on August 3, 2005, and when Hartford
Investment Management was approved as an additional sub-adviser to one of the
Company's equity funds on February 8, 2006.
388
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
In determining to approve the Agreement, the Board determined that the
Agreement, including the appointment of Hartford Investment Management as
sub-adviser, was fair and reasonable and in the best interests of the Fund and
its shareholders. The Board considered the following categories of material
factors, among others, relating to the Agreement.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information and data concerning the nature, extent, and
quality of the services to be provided to the Fund by Hartford Investment
Management. The Board considered, among other things, the terms of the
Agreement, the range of services to be provided, and Hartford Investment
Management's organizational structure, systems and personnel. The Board received
information on the background and experience of senior management and relevant
investment and other personnel at Hartford Investment Management, and the
adequacy of the time and attention that they would devote to the Fund. The Board
considered Hartford Investment Management's reputation and overall financial
strength, noting that Hartford Investment Management's current reputation and
the Board's past experience with Hartford Investment Management was
predominantly based on Hartford Investment Management's performance as a fixed
income manager. The Board also considered the experience and reputation of
equity personnel hired by Hartford Investment Management to service the Fund and
the level of support provided by the organization as a whole. The Board and the
Investment Committee met with Hugh Whelan, the proposed portfolio manager for
the Fund. The Board considered HIFSCO's and Hartford Investment Management's
investments in infrastructure in light of increased regulatory requirements and
the needs of Hartford Investment Management's proposed active equity management
function.
The Board also requested and evaluated information concerning Hartford
Investment Management's regulatory and compliance environment. Taking note that
such material was recently reviewed in August 2005 in connection with the
renewal of Hartford Investment Management's agreements with respect to certain
of the Company's other funds, the Board focused on regulatory and compliance
matters particular to the management of equity securities as opposed to fixed
income securities. In this regard, the Board requested and reviewed information
on Hartford Investment Management's compliance policies and procedures,
compliance history, and reports from the Fund's Chief Compliance Officer on
Hartford Investment Management's compliance with applicable laws and
regulations, including its responses to regulatory developments and compliance
issues raised by regulators. The Board also noted HIFSCO's and Hartford
Investment Management's support of the Company's compliance control structure,
particularly the resources devoted by HIFSCO and Hartford Investment Management
in support of the Company's obligations pursuant to Rule 38a-1 under the 1940
Act.
With respect to the day-to-day portfolio management services to be provided by
Hartford Investment Management, the Board considered the quality of Hartford
Investment Management's investment personnel (including its ability to attract
and retain qualified investment professionals); its investment philosophy and
process (and adherence to that philosophy and process); and its investment
research capabilities and resources, performance record, and trade execution
capabilities and experience. The Board noted the quality of the presentations to
and communications with the Board, and responsiveness to Board inquiries, of
Hartford Investment Management, including in particular Mr. Whelan and his team
and senior management of Hartford Investment Management in their in-person
discussions with the Board and their discussions with the Investment Committee.
The Board recognized that HIFSCO is responsible for the overall management of
the Fund, provides investment advisory services in connection with selecting,
monitoring and supervising the Fund's sub-advisers, and that HIFSCO had
recommended to the Board that Hartford Investment Management be appointed as a
sub-adviser to the Fund.
In considering this information, the Board evaluated not only the information
presented to the Board and the Investment Committee in connection with its
consideration of the Agreement, but also the Board's experience through past
interactions with HIFSCO and Hartford Investment Management. Based on these
considerations, the Board concluded that it was satisfied with the nature,
extent and quality of the services to be provided to the Fund by HIFSCO and
Hartford Investment Management.
PERFORMANCE
The Board considered the investment performance of the Fund as managed by
Wellington Management. In this regard, the Board considered information and
materials provided to the Board from HIFSCO comparing the Fund's investment
performance over various periods of time with appropriate benchmark indices, and
with a performance universe of funds selected by Lipper, which demonstrated that
the Fund had generally performed well under Wellington Management's management.
As Hartford Investment Management does not have a performance track record for
active equity management, HIFSCO and Hartford Investment Management presented
information regarding the performance record of funds managed by Mr. Whelan for
his previous employer. This information included the performance record for
other equity funds for which Mr. Whelan served as portfolio manager between
April 2000 and November 2005. The Board reviewed materials that compared the
performance of funds previously managed by Mr. Whelan and his team to the
performance of appropriate benchmarks and other matrices as well as to a
universe of funds selected by Lipper. HIFSCO and Hartford Investment Management
provided additional information about the broad range of Mr. Whelan's and his
team's recent investment experience and about their investment philosophy and
process. The Board considered HIFSCO's representations and judgment that
although Mr. Whelan's team has not previously managed a small cap growth fund
using the proposed quantitative strategy, the team has demonstrated its ability
to do so by successfully managing small cap assets in another strategy and
successfully using a similar quantitative strategy in different asset classes.
Based on these considerations, the Board concluded that, while there could be no
guarantee of future results, the Board was satisfied that Hartford Investment
Management has the capability of providing satisfactory investment performance
for the Fund.
COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND HARTFORD INVESTMENT
MANAGEMENT
The Board reviewed information regarding HIFSCO's and Hartford Investment
Management's costs to provide investment management and related services to the
Fund and the profitability to them from managing the Fund. The Board considered
information related to both HIFSCO and Hartford Investment Management because it
was proposed that Hartford Investment Management be reimbursed for its costs
rather than receive a set fee, with the result that any profitability from
managing the Fund would be realized only with respect to HIFSCO. The Board also
had information about the profitability to HIFSCO and its affiliates from all
services provided to the Fund and all aspects of its relationships with the
Fund. In evaluating
389
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
HIFSCO's profitability, the Board considered that initially HIFSCO did not
anticipate making a profit on the portion of the Fund's assets allocated to
Hartford Investment Management, and that future profitability to HIFSCO would
depend on the growth of Hartford Investment Management's equity assets under
management. The Board considered statements by HIFSCO that HIFSCO's
profitability from the Fund is not expected to increase over the course of the
next year.
The Board reviewed with HIFSCO the assumptions and allocation methods used in
preparing the cost and profitability data provided to the Board. The Board
recognized that allocation methods are inherently subjective, and different
methods may be reasonable although they lead to different results. The Board
noted the difficulty in obtaining reliable comparative data about adviser
profitability, since such information is not generally publicly available and is
impacted by numerous factors, including the structure of an adviser's
organization, the types of funds it manages, and the adviser's capital structure
and costs of capital. The Board considered the profitability of HIFSCO's
relationship with the Fund on a pre-tax basis without regard to distribution
expenses.
Based on these considerations, the Board concluded that the profits anticipated
to be realized by HIFSCO, Hartford Investment Management and their affiliates
from their relationships with the Fund would not be excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND HARTFORD INVESTMENT
MANAGEMENT
The Board considered comparative information with respect to the investment
management fees to be paid by the Fund to HIFSCO and its affiliates. In this
regard, the Board received information from HIFSCO and Hartford Investment
Management relating to the management fees, sub-advisory fees, and total
operating expenses for the Fund. HIFSCO also referenced information comparing
the Fund's management fees and total expense ratio relative to those of a peer
group of funds identified by Lipper as being in the small capitalization growth
category. The Board considered that according to the information provided by
Lipper, the proposed management fee is below the median and average fee for the
Fund's peer group at asset levels over $100 million. While the Board recognized
that comparisons between the Fund and peer funds are imprecise, given the
differing service levels and characteristics of mutual funds, and the different
business models and cost structures of advisers, the comparative information
assisted the Board in evaluating the reasonableness of the Fund's management
advisory and sub-advisory fees.
In considering the reasonableness of the Fund's fees and total expense ratios,
the Board considered that the overall management fee for the Fund could
potentially be lower under the Proposal as a result of HIFSCO's agreement to an
additional breakpoint in the Fund's management fees.
Based on these considerations, and after taking into account the fee breakpoints
described above, the Board concluded that the comparative information reviewed
indicates that the Fund's management fee and sub-advisory fee and total
operating expenses are within a range that is competitive and, in conjunction
with the information about quality of services, profitability, economies of
scale, and other matters discussed, supports the conclusion that these fees and
expenses are reasonable.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized as
the Fund grows and whether the fee levels reflect these economies of scale for
the benefit of the Fund's investors.
The Board reviewed the breakpoints in the management fee schedule, including the
additional breakpoint agreed to as described above, which reduce fees as Fund
assets grow over time. These breakpoints provide economies of scale to the Fund
and its shareholders in that, as the Fund grows, its effective management fee
rate declines. The Board recognized that the Fund would continue to benefit from
economies of scale with assets beyond the last breakpoint, because additional
assets are charged the lowest breakpoint fee, resulting in a lower overall
effective management fee rate. The Board considered that the Fund may achieve
some economies as certain fixed expenses are spread over a larger asset base,
noting that there is no precise way to measure such economies, and that certain
expenses do not necessarily decrease as assets increase. The Board noted that
increasing asset capacity and keeping the Fund open to new investments increased
the likelihood that asset growth in the Fund would enable shareholders to
benefit from the breakpoints in the management fee schedule.
The Board received information regarding HIFSCO's and Hartford Investment
Management's realization of economies of scale with respect to the Fund. The
Board considered representations from HIFSCO that the initial start-up costs
Hartford Investment Management would incur in building its equity management
capability relating to the Fund would be high relative to the small amount of
assets under management. However, the Board considered that HIFSCO and Hartford
Investment Management were likely to realize some economies of scale over time
as Hartford Investment Management's equity assets under management increased,
which the Board would consider in determining whether to renew the agreement on
an annual basis.
After considering all of the information available to it, the Board concluded
that it was satisfied with the extent to which economies of scale would be
shared for the benefit of the Fund's investors, based on currently available
information and the effective advisory fees and expense ratios for the Fund at
its current and reasonably anticipated asset levels. The Board noted, however,
that it would continue to monitor future growth in Fund assets and the
appropriateness of additional breakpoints.
OTHER BENEFITS
The Board considered information regarding other benefits to HIFSCO, Hartford
Investment Management and their affiliates from their relationships with the
Fund. The Board considered Hartford Investment Management's statements that
Hartford Investment Management was undertaking a review of its soft dollar
practices in light of the recent addition of equity management capability, but
that it had determined that at present Hartford Investment Management will
utilize soft dollars to obtain only: (i) brokerage services; (ii) research
created and provided by a broker-dealer involved in effecting a trade (i.e.,
research provided by a full service broker-dealer, or provided by a
broker-dealer to which a portion of a trade is directed for the purpose of
obtaining access to the research, in either case on a bundled basis); and (iii)
access to management personnel. The Board considered Hartford Investment
Management's representations that Hartford Investment Management will not at
present utilize soft dollars to obtain research from parties who have no role in
effecting a trade, although Hartford Investment Management's practices could
change in the future. The Board considered that these soft dollar practices
would benefit Hartford Investment Management by providing it with research that
could be utilized with its other active equity
390
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
clients. The Board also considered that the following companies, which are
affiliates of Hartford Investment Management, provide services to the Fund and
receive compensation from the Fund:
- HIFSCO serves as the Fund's principal underwriter and receives 12b-1 fees
from the Fund.
- Hartford Life Insurance Company provides fund accounting services to the
Fund and receives fund accounting fees from the Fund.
- The Fund currently pays the cost of certain legal services in support of
the Fund provided by personnel of Hartford Life Insurance Company, but it
is expected that such cost will be absorbed by Hartford Life Insurance
Company as of January 1, 2007.
- Hartford Administrative Services Company, the Fund's transfer agent,
receives transfer agency compensation from the Fund.
The Board considered that, because HIFSCO intends to allocate to Hartford
Investment Management new inflows of assets into the Fund, HIFSCO and Hartford
Investment Management would benefit from the Fund's existing performance record.
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Fund and its shareholders to
approve the Agreement with Hartford Investment Management. In reaching this
decision, the Board did not assign relative weights to the factors discussed
above or deem any one or group of them to be controlling in and of themselves.
THE HARTFORD SELECT MIDCAP GROWTH FUND
(FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD
SELECT MIDCAP GROWTH FUND)
At a board meeting held on August 1-2, 2006, the Board of Directors of the Fund
unanimously voted to approve an investment sub-advisory agreement between HIFSCO
and Hartford Investment Management (the "Agreement").
In advance of the August meeting, the Board reviewed written responses from
HIFSCO and Hartford Investment Management to questions posed to them on behalf
of the Independent Directors and supporting materials relating to those
questions and responses. The Board also received in-person presentations from
management and the proposed portfolio manager for the Fund, Hugh Whelan,
regarding the capabilities of Hartford Investment Management's multi-discipline
equity management team and the associated benefits to the Fund and its
shareholders. The Board's Investment Committee also received an in-person
presentation from the portfolio manager about the team's capabilities and the
associated benefits to shareholders at its meeting on August 1, 2006. In
addition, the Board received information with respect to Hartford Investment
Management in connection with the Board's consideration of Hartford Investment
Management's re-approval as a sub-adviser to certain of the Company's fixed
income and asset allocation funds on August 1-2, 2006, and, with respect to the
proposed portfolio management team for the Fund, when Hartford Investment
Management was approved as an additional sub-adviser to one of the Company's
equity funds on June 20-21, 2006.
In determining to approve the Agreement, the Board determined that the
Agreement, including the appointment of Hartford Investment Management as
sub-adviser, was fair and reasonable and in the best interests of the Fund and
its shareholders. The Board considered the following categories of material
factors, among others, relating to the Agreement.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information and data concerning the nature, extent, and
quality of the services to be provided to the Fund by Hartford Investment
Management. The Board considered, among other things, the terms of the
Agreement, the range of services to be provided, and Hartford Investment
Management's organizational structure, systems and personnel. The Board received
information on the background and experience of senior management and relevant
investment and other personnel at Hartford Investment Management, and the
adequacy of the time and attention that they would devote to the Fund. The Board
considered Hartford Investment Management's reputation and overall financial
strength, noting that Hartford Investment Management's current reputation and
the Board's past experience with Hartford Investment Management was
predominantly based on Hartford Investment Management's performance as a fixed
income manager. The Board also noted that although Hartford Investment
Management is primarily a fixed income manager, it also engages in passive
equity index management and asset allocation for certain Hartford-sponsored
mutual funds, and in June 2006 commenced active equity management of a portion
of two Hartford-sponsored mutual funds. The Board also considered Hartford
Investment Management's efforts and progress in building its active management
capability.
The Board also considered the experience and reputation of equity personnel
hired by Hartford Investment Management to service the Fund, and the level of
support provided by the organization as a whole. The Board and the Investment
Committee met with Hugh Whelan, the proposed portfolio manager for the Fund. The
Board considered HIFSCO's representations and judgment that, although Mr.
Whelan's team has not previously managed a mid cap growth fund using the
proposed quantitative strategy, Mr. Whelan's prior experience with various
institutional products, success in managing mid cap assets in another strategy,
and success in implementing a quantitative investment approach demonstrate his
ability to manage assets in the mid cap growth mandate. The Board also
considered HIFSCO's and Hartford Investment Management's investments in
infrastructure in light of increased regulatory requirements and the needs of
Hartford Investment Management's proposed active equity management function.
The Board also requested and evaluated information concerning Hartford
Investment Management's regulatory and compliance environment. The Board focused
on regulatory and compliance matters particular to the management of equity
securities as opposed to fixed income securities. In this regard, the Board
requested and reviewed information on Hartford Investment Management's
compliance policies and procedures, compliance history, and reports from the
Fund's Chief Compliance Officer on Hartford Investment Management's compliance
with applicable laws and regulations, including its responses to regulatory
developments and compliance issues raised by regulators. The Board also noted
HIFSCO's and Hartford Investment Management's support of the Company's
compliance control structure, particularly the resources devoted by HIFSCO and
Hartford Investment Management in support of the Company's obligations pursuant
to Rule 38a-1 under the 1940 Act.
With respect to the day-to-day portfolio management services to be provided by
Hartford Investment Management, the Board considered the quality of Hartford
Investment Management's investment personnel (including its ability to attract
and retain qualified investment professionals); its investment
391
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
philosophy and process (and adherence to that philosophy and process); and its
investment research capabilities and resources, performance record, and trade
execution capabilities and experience. The Board noted the quality of the
presentations to and communications with the Board, and responsiveness to Board
inquiries, of Hartford Investment Management, including in particular Mr. Whelan
and senior management of Hartford Investment Management in their in-person
discussions with the Board and their discussions with the Investment Committee.
The Board recognized that HIFSCO is responsible for the overall management of
the Fund, provides investment advisory services in connection with selecting,
monitoring and supervising the Fund's sub-advisers, and had recommended to the
Board that Hartford Investment Management be appointed as a sub-adviser to the
Fund.
In considering this information, the Board evaluated not only the information
presented to the Board and the Investment Committee in connection with its
consideration of the Agreement, but also the Board's experience through past
interactions with HIFSCO and Hartford Investment Management. Based on these
considerations, the Board concluded that it was satisfied with the nature,
extent and quality of the services to be provided to the Fund by HIFSCO and
Hartford Investment Management.
PERFORMANCE
The Board considered the investment performance of the Fund as managed by
Chartwell, GSAM and Northern Capital. In this regard, the Board considered
information and materials provided to the Board comparing the Fund's investment
performance since its inception on January 1, 2005 with appropriate benchmark
indices, and with a performance universe of funds selected by Lipper. The Board
noted that the comparative data demonstrated that the Fund had ranked in the
64th percentile, or in the bottom half, for its one-year performance as compared
to its peer funds. The Board also noted that its one-year and since-inception
date returns under Chartwell, GSAM and Northern Capital were below its
benchmarks.
As Hartford Investment Management does not have a performance track record for
active equity management, HIFSCO and Hartford Investment Management presented
information regarding the performance record of funds managed by Mr. Whelan for
his previous employer between 2000 and 2005. Mr. Whelan was a member of the
investment management responsible for these funds since 1999, and served in a
leadership capacity on the team from 2003 to 2005. The Board reviewed materials
that compared the performance of funds previously managed by Mr. Whelan and his
team to the performance of appropriate benchmarks and other matrices as well as
to a universe of funds selected by Lipper. HIFSCO and Hartford Investment
Management provided additional information about the broad range of Mr. Whelan's
and his team's recent investment experience and about their investment
philosophy and process. The Board considered HIFSCO's representations and
judgment that although Mr. Whelan's team has not previously managed a mid cap
growth fund using the proposed quantitative strategy, the team has demonstrated
its ability to do so by successfully managing mid cap assets in another strategy
and successfully using a similar quantitative strategy in different asset
classes. The Board and the Investment Committee also had extensive in person
discussions with Mr. Whelan about his investment philosophy, process and
experience.
Based on these considerations, the Board concluded that, while there could be no
guarantee of future results, the Board was satisfied that Hartford Investment
Management has the capability of providing satisfactory investment performance
for the Fund.
COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND HARTFORD INVESTMENT
MANAGEMENT
The Board reviewed information regarding HIFSCO's and Hartford Investment
Management's costs to provide investment management and related services to the
Fund and the profitability to them from managing the Fund. The Board considered
information related to both HIFSCO and Hartford Investment Management because it
was proposed that Hartford Investment Management be reimbursed for its costs
rather than receive a set fee, with the result that any profitability from
managing the Fund would be realized only with respect to HIFSCO. The Board also
had information about the profitability to HIFSCO and its affiliates from all
services provided to the Fund and all aspects of its relationships with the
Fund. In evaluating HIFSCO's profitability, the Board considered that initially
HIFSCO did not anticipate making a profit, and that future profitability to
HIFSCO would depend on the growth of Hartford Investment Management's equity
assets under management. The Board considered statements by HIFSCO that HIFSCO's
profitability from the Fund is not expected to increase over the course of the
next year.
The Board reviewed with HIFSCO the assumptions and allocation methods used in
preparing the cost and profitability data provided to the Board. The Board
recognized that allocation methods are inherently subjective, and different
methods may be reasonable although they lead to different results. The Board
noted the difficulty in obtaining reliable comparative data about adviser
profitability, since such information is not generally publicly available and is
impacted by numerous factors, including the structure of an adviser's
organization, the types of funds it manages, and the adviser's capital structure
and costs of capital. The Board considered HIFSCO's profitability from managing
the Fund as compared to HIFSCO's profitability from managing other Funds. In
addition, the Board considered the profitability of HIFSCO's relationship with
the Fund on a pre-tax basis without regard to distribution expenses.
Based on these considerations, the Board concluded that the profits anticipated
to be realized by HIFSCO, Hartford Investment Management and their affiliates
from their relationships with the Fund would not be excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND HARTFORD INVESTMENT
MANAGEMENT
The Board considered comparative information with respect to the investment
management fees to be paid by the Fund to HIFSCO and its affiliates. In this
regard, the Board received information from HIFSCO and Hartford Investment
Management relating to the management fees, sub-advisory fees, and total
operating expenses for the Fund. HIFSCO also referenced information comparing
the Fund's management fees and total expense ratio relative to those of a peer
group of funds identified by Lipper as being in the mid capitalization growth
category. The Board considered that according to the information provided by
Lipper, the proposed management fee is below the average and median fee for the
Fund's peer group at all asset levels. While the Board recognized that
comparisons between the Fund and peer funds are imprecise, given the differing
service levels and characteristics of mutual funds, and the different business
models and cost structures of advisers, the comparative information assisted the
Board in evaluating the reasonableness of the Fund's management advisory and
sub-advisory fees.
In considering the reasonableness of the Fund's fees and total expense ratios,
the Board considered that the overall management fee for the Fund would be lower
under the Proposal as a result of HIFSCO's agreement to reduce the Fund's
management fees at all asset levels. The Board also considered
392
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
HIFSCO's representation that it would be able to reduce the Fund's management
fee at all asset levels because it would realize cost savings as a result of
having one affiliated sub-adviser, Hartford Investment Management, serve as
sub-adviser for all of the Fund's assets.
Based on these considerations, and after taking into account the fee reductions
noted above, the Board concluded that the comparative information reviewed
indicates that the Fund's management fee and sub-advisory fee and total
operating expenses are within a range that is competitive and, in conjunction
with the information about quality of services, profitability, economies of
scale, and other matters discussed, supports the conclusion that these fees and
expenses are reasonable.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized as
the Fund grows and whether the fee levels reflect these economies of scale for
the benefit of the Fund's investors.
The Board reviewed the breakpoints in the management fee schedule, which reduce
management fees, sub-advisory fees and operating expenses as Fund assets grow
over time. These breakpoints provide economies of scale to the Fund and its
shareholders in that, as the Fund grows, its effective management and
sub-advisory fee rates decline. The Board recognized that the Fund would
continue to benefit from economies of scale with assets beyond the last
breakpoint, because additional assets are charged the lowest breakpoint fee,
resulting in a lower overall effective management fee rate. The Board considered
that the Fund may achieve some economies as certain fixed expenses are spread
over a larger asset base, noting that there is no precise way to measure such
economies, and that certain expenses do not necessarily decrease as assets
increase. The Board considered management's representation that the replacement
of the Current Sub-Advisers with Hartford Investment Management would enable the
Fund to gain greater acceptance among potential investors, resulting in
increased opportunities for growth. The Board noted that increasing assets would
increase the likelihood that shareholders would benefit from the breakpoints in
the management fee schedule.
The Board received information regarding HIFSCO's and Hartford Investment
Management's realization of economies of scale with respect to the Fund. The
Board considered representations from HIFSCO that the initial start-up costs
Hartford Investment Management would incur in building its equity management
capability relating to the Fund would be high relative to the small amount of
assets under management. However, the Board considered that HIFSCO and Hartford
Investment Management were likely to realize some economies of scale over time
as Hartford Investment Management's equity assets under management increased,
which the Board would consider in determining whether to renew the agreement on
an annual basis.
After considering all of the information available to it, the Board concluded
that it was satisfied with the extent to which economies of scale would be
shared for the benefit of the Fund's investors, based on currently available
information and the effective advisory fees and expense ratios for the Fund at
its current and reasonably anticipated asset levels. The Board noted, however,
that it would continue to monitor future growth in Fund assets and the
appropriateness of additional breakpoints.
OTHER BENEFITS
The Board considered information regarding other benefits to HIFSCO, Hartford
Investment Management and their affiliates from their relationships with the
Fund. The Board considered Hartford Investment Management's statements that
Hartford Investment Management was undertaking a review of its soft dollar
practices in light of the recent addition of equity management capability, but
that it had determined that at present Hartford Investment Management will
utilize soft dollars to obtain only: (i) brokerage services; (ii) research
created and provided by a broker-dealer involved in effecting a trade (i.e.,
research provided by a full service broker-dealer, or provided by a
broker-dealer to which a portion of a trade is directed for the purpose of
obtaining access to the research, in either case on a bundled basis); and (iii)
access to management personnel. The Board considered Hartford Investment
Management's representations that Hartford Investment Management will not at
present utilize soft dollars to obtain research from parties who have no role in
effecting a trade, although Hartford Investment Management's practices could
change in the future. The Board considered that these soft dollar practices
would benefit Hartford Investment Management by providing it with research that
could be utilized with its other active equity clients. The Board also
considered that the following companies, which are affiliates of Hartford
Investment Management, provide services to the Fund and receive compensation
from the Fund:
- HIFSCO serves as the Fund's principal underwriter and receives 12b-1 fees
from the Fund.
- Hartford Life Insurance Company provides fund accounting services to the
Fund and receives fund accounting fees from the Fund.
- The Fund currently pays the cost of certain legal services in support of
the Fund provided by personnel of Hartford Life Insurance Company, but
such cost will be absorbed by Hartford Life Insurance Company as of
January 1, 2007.
- Hartford Administrative Services Company, the Fund's transfer agent,
receives transfer agency compensation from the Fund.
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Fund and its shareholders to
approve the Agreement with Hartford Investment Management. In reaching this
decision, the Board did not assign relative weights to the factors discussed
above or deem any one or group of them to be controlling in and of themselves.
THE HARTFORD SELECT MIDCAP VALUE FUND
(FOR PURPOSES OF THIS SECTION, THE TERM "FUND" SHALL REFER ONLY TO THE HARTFORD
SELECT MIDCAP VALUE FUND)
At a board meeting held on August 1-2, 2006, the Board of Directors of the Fund
unanimously voted to approve an investment sub-advisory agreement between HIFSCO
and Hartford Investment Management (the "Agreement").
In advance of the August meeting, the Board reviewed written responses from
HIFSCO and Hartford Investment Management to questions posed to them on behalf
of the Independent Directors and supporting materials relating to those
questions and responses. The Board also received in-person presentations from
management and the proposed portfolio manager for the Fund, Hugh Whelan,
regarding the capabilities of Hartford Investment Management's multi-discipline
equity management team and the associated benefits to the Fund and its
shareholders. The Board's Investment
393
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
Committee also received an in-person presentation from the portfolio manager
about the team's capabilities and the associated benefits to shareholders at its
meeting on August 1, 2006. In addition, the Board received information with
respect to Hartford Investment Management in connection with the Board's
consideration of Hartford Investment Management's re-approval as a sub-adviser
to certain of the Company's fixed income and asset allocation funds on August
1-2, 2006, and, with respect to the proposed portfolio management team for the
Fund, when Hartford Investment Management was approved as an additional
sub-adviser to one of the Company's equity funds on June 20-21, 2006.
In determining to approve the Agreement, the Board determined that the
Agreement, including the appointment of Hartford Investment Management as
sub-adviser, was fair and reasonable and in the best interests of the Fund and
its shareholders. The Board considered the following categories of material
factors, among others, relating to the Agreement.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information and data concerning the nature, extent, and
quality of the services to be provided to the Fund by Hartford Investment
Management. The Board considered, among other things, the terms of the
Agreement, the range of services to be provided, and Hartford Investment
Management's organizational structure, systems and personnel. The Board received
information on the background and experience of senior management and relevant
investment and other personnel at Hartford Investment Management, and the
adequacy of the time and attention that they would devote to the Fund. The Board
considered Hartford Investment Management's reputation and overall financial
strength, noting that Hartford Investment Management's current reputation and
the Board's past experience with Hartford Investment Management was
predominantly based on Hartford Investment Management's performance as a fixed
income manager. The Board also noted that although Hartford Investment
Management is primarily a fixed income manager, it also engages in passive
equity index management and asset allocation for certain Hartford-sponsored
mutual funds, and in June 2006 commenced active equity management of a portion
of two Hartford-sponsored mutual funds. The Board also considered Hartford
Investment Management's efforts and progress in building its active management
capability.
The Board also considered the experience and reputation of equity personnel
hired by Hartford Investment Management to service the Fund, and the level of
support provided by the organization as a whole. The Board and the Investment
Committee met with Hugh Whelan, the proposed portfolio manager for the Fund. The
Board considered HIFSCO's representations and judgment that, although Mr.
Whelan's team has not previously managed a mid cap value fund using the proposed
quantitative strategy, Mr. Whelan's prior experience with various institutional
products, success in managing mid cap assets in another strategy, and success in
implementing a quantitative investment approach demonstrate his ability to
manage assets in the mid cap value mandate. The Board also considered HIFSCO's
and Hartford Investment Management's investments in infrastructure in light of
increased regulatory requirements and the needs of Hartford Investment
Management's proposed active equity management function.
The Board also requested and evaluated information concerning Hartford
Investment Management's regulatory and compliance environment. The Board focused
on regulatory and compliance matters particular to the management of equity
securities as opposed to fixed income securities. In this regard, the Board
requested and reviewed information on Hartford Investment Management's
compliance policies and procedures, compliance history, and reports from the
Fund's Chief Compliance Officer on Hartford Investment Management's compliance
with applicable laws and regulations, including its responses to regulatory
developments and compliance issues raised by regulators. The Board also noted
HIFSCO's and Hartford Investment Management's support of the Company's
compliance control structure, particularly the resources devoted by HIFSCO and
Hartford Investment Management in support of the Company's obligations pursuant
to Rule 38a-1 under the 1940 Act.
With respect to the day-to-day portfolio management services to be provided by
Hartford Investment Management, the Board considered the quality of Hartford
Investment Management's investment personnel (including its ability to attract
and retain qualified investment professionals); its investment philosophy and
process (and adherence to that philosophy and process); and its investment
research capabilities and resources, performance record, and trade execution
capabilities and experience. The Board noted the quality of the presentations to
and communications with the Board, and responsiveness to Board inquiries, of
Hartford Investment Management, including in particular Mr. Whelan and senior
management of Hartford Investment Management in their in-person discussions with
the Board and their discussions with the Investment Committee. The Board
recognized that HIFSCO is responsible for the overall management of the Fund,
provides investment advisory services in connection with selecting, monitoring
and supervising the Fund's sub-advisers, and had recommended to the Board that
Hartford Investment Management be appointed as a sub-adviser to the Fund.
In considering this information, the Board evaluated not only the information
presented to the Board and the Investment Committee in connection with its
consideration of the Agreement, but also the Board's experience through past
interactions with HIFSCO and Hartford Investment Management. Based on these
considerations, the Board concluded that it was satisfied with the nature,
extent and quality of the services to be provided to the Fund by HIFSCO and
Hartford Investment Management.
PERFORMANCE
The Board considered the investment performance of the Fund as managed by
Artisan, CRM and Sterling. In this regard, the Board considered information and
materials provided to the Board from HIFSCO comparing the Fund's investment
performance since its inception on April 29, 2005 with appropriate benchmark
indices, and with a performance universe of funds selected by Lipper. The Board
noted that the comparative data demonstrated that the Fund had ranked in the
60th percentile, or in the bottom half, for its one-year performance as compared
to its peer funds. The Board also noted that its one-year and since-inception
date returns under Artisan, CRM and Sterling were below its benchmarks.
As Hartford Investment Management does not have a performance track record for
active equity management, HIFSCO and Hartford Investment Management presented
information regarding the performance record of funds managed by Mr. Whelan for
his previous employer between 2000 and 2005. Mr. Whelan was a member of the
investment management responsible for these funds since 1999, and served in a
leadership capacity on the team from 2003 to 2005. The Board reviewed materials
that compared the performance of funds previously managed by Mr. Whelan and his
team to the performance of appropriate benchmarks and other matrices as well as
to a universe of funds selected by Lipper. HIFSCO and Hartford Investment
Management provided additional information about the broad range of Mr. Whelan's
and his team's recent investment experience and about their investment
philosophy and process. The Board considered HIFSCO's representations and
judgment that although Mr. Whelan's team has not previously managed a mid cap
value fund using the proposed quantitative strategy, the team has demonstrated
its ability to do so by successfully managing mid cap
394
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
assets in another strategy and successfully using a similar quantitative
strategy in different asset classes. The Board and the Investment Committee also
had extensive in person discussions with Mr. Whelan about his investment
philosophy, process and experience.
Based on these considerations, the Board concluded that, while there could be no
guarantee of future results, the Board was satisfied that Hartford Investment
Management has the capability of providing satisfactory investment performance
for the Fund.
COSTS OF THE SERVICES AND PROFITABILITY OF HIFSCO AND HARTFORD INVESTMENT
MANAGEMENT
The Board reviewed information regarding HIFSCO's and Hartford Investment
Management's costs to provide investment management and related services to the
Fund and the profitability to them from managing the Fund. The Board considered
information related to both HIFSCO and Hartford Investment Management because it
was proposed that Hartford Investment Management be reimbursed for its costs
rather than receive a set fee, with the result that any profitability from
managing the Fund would be realized only with respect to HIFSCO. The Board also
had information about the profitability to HIFSCO and its affiliates from all
services provided to the Fund and all aspects of its relationships with the
Fund. In evaluating HIFSCO's profitability, the Board considered that initially
HIFSCO did not anticipate making a profit, and that future profitability to
HIFSCO would depend on the growth of Hartford Investment Management's equity
assets under management. The Board considered statements by HIFSCO that HIFSCO's
profitability from the Fund is not expected to increase over the course of the
next year.
The Board reviewed with HIFSCO the assumptions and allocation methods used in
preparing the cost and profitability data provided to the Board. The Board
recognized that allocation methods are inherently subjective, and different
methods may be reasonable although they lead to different results. The Board
noted the difficulty in obtaining reliable comparative data about adviser
profitability, since such information is not generally publicly available and is
impacted by numerous factors, including the structure of an adviser's
organization, the types of funds it manages, and the adviser's capital structure
and costs of capital. The Board considered HIFSCO's profitability from managing
the Fund as compared to HIFSCO's profitability from managing other Funds. In
addition, the Board considered the profitability of HIFSCO's relationship with
the Fund on a pre-tax basis without regard to distribution expenses.
Based on these considerations, the Board concluded that the profits anticipated
to be realized by HIFSCO, Hartford Investment Management and their affiliates
from their relationships with the Fund would not be excessive.
COMPARISON OF FEES AND SERVICES PROVIDED BY HIFSCO AND HARTFORD INVESTMENT
MANAGEMENT
The Board considered comparative information with respect to the investment
management fees to be paid by the Fund to HIFSCO and its affiliates. In this
regard, the Board received information from HIFSCO and Hartford Investment
Management relating to the management fees, sub-advisory fees, and total
operating expenses for the Fund. HIFSCO also referenced information comparing
the Fund's management fees and total expense ratio relative to those of a peer
group of funds identified by Lipper as being in the mid capitalization core
category. The Board considered that according to the information provided by
Lipper, the proposed management fee is below the average and median fee for the
Fund's peer group at all asset levels. While the Board recognized that
comparisons between the Fund and peer funds are imprecise, given the differing
service levels and characteristics of mutual funds, and the different business
models and cost structures of advisers, the comparative information assisted the
Board in evaluating the reasonableness of the Fund's management advisory and
sub-advisory fees.
In considering the reasonableness of the Fund's fees and total expense ratios,
the Board considered that the overall management fee for the Fund would be lower
under the Proposal as a result of HIFSCO's agreement to reduce the Fund's
management fees at all asset levels. The Board also considered HIFSCO's
representation that it would be able to reduce the Fund's management fee at all
asset levels because it would realize cost savings as a result of having one
affiliated sub-adviser, Hartford Investment Management, serve as sub-adviser for
all of the Fund's assets.
Based on these considerations, and after taking into account the fee reductions
noted above, the Board concluded that the comparative information reviewed
indicates that the Fund's management fee and sub-advisory fee and total
operating expenses are within a range that is competitive and, in conjunction
with the information about quality of services, profitability, economies of
scale, and other matters discussed, supports the conclusion that these fees and
expenses are reasonable.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized as
the Fund grows and whether the fee levels reflect these economies of scale for
the benefit of the Fund's investors.
The Board reviewed the breakpoints in the management fee schedule, which reduce
management fees, sub-advisory fees and operating expenses as Fund assets grow
over time. These breakpoints provide economies of scale to the Fund and its
shareholders in that, as the Fund grows, its effective management and
sub-advisory fee rates decline. The Board recognized that the Fund would
continue to benefit from economies of scale with assets beyond the last
breakpoint, because additional assets are charged the lowest breakpoint fee,
resulting in a lower overall effective management fee rate. The Board considered
that the Fund may achieve some economies as certain fixed expenses are spread
over a larger asset base, noting that there is no precise way to measure such
economies, and that certain expenses do not necessarily decrease as assets
increase. The Board considered management's representation that the replacement
of the Current Sub-Advisers with Hartford Investment Management would enable the
Fund to gain greater acceptance among potential investors, resulting in
increased opportunities for growth. The Board noted that increasing assets would
increase the likelihood that shareholders would benefit from the breakpoints in
the management fee schedule.
The Board received information regarding HIFSCO's and Hartford Investment
Management's realization of economies of scale with respect to the Fund. The
Board considered representations from HIFSCO that the initial start-up costs
Hartford Investment Management would incur in building its equity management
capability relating to the Fund would be high relative to the small amount of
assets under management. However, the Board considered that HIFSCO and Hartford
Investment Management were likely to realize some economies of scale over time
as Hartford Investment Management's equity assets under management increased,
which the Board would consider in determining whether to renew the agreement on
an annual basis.
395
APPROVAL OF INVESTMENT MANAGEMENT AND INVESTMENT SUB-ADVISORY AGREEMENTS
(UNAUDITED) - (CONTINUED)
After considering all of the information available to it, the Board concluded
that it was satisfied with the extent to which economies of scale would be
shared for the benefit of the Fund's investors, based on currently available
information and the effective advisory fees and expense ratios for the Fund at
its current and reasonably anticipated asset levels. The Board noted, however,
that it would continue to monitor future growth in Fund assets and the
appropriateness of additional breakpoints.
OTHER BENEFITS
The Board considered information regarding other benefits to HIFSCO, Hartford
Investment Management and their affiliates from their relationships with the
Fund. The Board considered Hartford Investment Management's statements that
Hartford Investment Management was undertaking a review of its soft dollar
practices in light of the recent addition of equity management capability, but
that it had determined that at present Hartford Investment Management will
utilize soft dollars to obtain only: (i) brokerage services; (ii) research
created and provided by a broker-dealer involved in effecting a trade (i.e.,
research provided by a full service broker-dealer, or provided by a
broker-dealer to which a portion of a trade is directed for the purpose of
obtaining access to the research, in either case on a bundled basis); and (iii)
access to management personnel. The Board considered Hartford Investment
Management's representations that Hartford Investment Management will not at
present utilize soft dollars to obtain research from parties who have no role in
effecting a trade, although Hartford Investment Management's practices could
change in the future. The Board considered that these soft dollar practices
would benefit Hartford Investment Management by providing it with research that
could be utilized with its other active equity clients. The Board also
considered that the following companies, which are affiliates of Hartford
Investment Management, provide services to the Fund and receive compensation
from the Fund:
- HIFSCO serves as the Fund's principal underwriter and receives 12b-1 fees
from the Fund.
- Hartford Life Insurance Company provides fund accounting services to the
Fund and receives fund accounting fees from the Fund.
- The Fund currently pays the cost of certain legal services in support of
the Fund provided by personnel of Hartford Life Insurance Company, but
such cost will be absorbed by Hartford Life Insurance Company as of
January 1, 2007.
- Hartford Administrative Services Company, the Fund's transfer agent,
receives transfer agency compensation from the Fund.
Based upon its review of these various factors, among others, the Board
concluded that it is in the best interests of the Fund and its shareholders to
approve the Agreement with Hartford Investment Management. In reaching this
decision, the Board did not assign relative weights to the factors discussed
above or deem any one or group of them to be controlling in and of themselves.
* * * * *
In connection with the Board's deliberations described above, regarding the
approval of the investment management and investment sub-advisory agreements for
each Fund, the Independent Directors met with independent legal counsel to
review the relevant materials and consider their responsibilities under relevant
laws and regulations.
396
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: $779,875 for the fiscal year ended October 31, 2006 and
$671,800 for the fiscal year ended October 31, 2005, including fees
associated with the annual audit and filings of the Fund's Form N-1A and
Form N-SAR.
(b) Audit-Related Fees: $24,722 for the fiscal year ended October 31, 2006
and $0 for the fiscal year ended October 31, 2005. Audit-related services
principally include accounting consultations in connection with new
accounting standards and non-routine filings.
(c) Tax Fees: $147,400 for tax compliance services for the fiscal year
ended October 31, 2006 and $142,229 for the fiscal year ended October 31,
2005.
(d) All Other Fees: $0 for the fiscal year ended October 31, 2006 and $0
for the fiscal year ended October 31, 2005.
(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,
2006, were attributed to work performed by persons other than the principal
accountant's full-time permanent employees.
(g) Non-Audit Fees: $701,085 for the fiscal year ended October 31, 2006 and
$700,000 for the fiscal year ended October 31, 2005. The audit committee
has considered the compatibility of the non-audit services that were not
subject to pre-approval with the auditor's independence.
(h) N/A
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Registrant has a separately designated standing Audit Committee comprised
of the independent directors listed below:
Robert M. Gavin
Sandra S. Jaffee
William P. Johnston
Phillip O. Peterson
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
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors since registrant last
provided disclosure in response to this requirement.
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.
11(a) (2) Section 302 certifications of the principal executive officer
and principal financial officer of Registrant.
(b) Section 906 certification.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE HARTFORD MUTUAL FUNDS, INC.
Date: December 14, 2006 By: /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, 2006 By: /s/ David M. Znamierowski
------------------------------------
David M. Znamierowski
Its: President
Date: December 14, 2006 By: /s/ Tamara L. Fagely
------------------------------------
Tamara L. Fagely
Its: Vice President, Controller and
Treasurer
EXHIBIT LIST
12(a)(1) Code of Ethics
99.CERT 11(a)(2) Certifications
(i) Section 302 certification of principal executive officer
(ii) Section 302 certification of principal financial officer
99.906CERT 11(b) Section 906 certification of principal executive officer and
principal financial officer