Hartford Small Cap Growth HLS Fund

 

  Schedule of Investments

  March 31, 2021 (Unaudited)

 

 

Shares or Principal Amount           Market Value  

Common Stocks - 98.8%

     
  

Automobiles & Components - 2.9%

     
101,730   

Fox Factory Holding Corp.*

      $ 12,925,814  
151,912   

Patrick Industries, Inc.

        12,912,520  
120,294   

Thor Industries, Inc.

        16,208,413  
        

 

 

 
           42,046,747  
        

 

 

 
  

Banks - 2.7%

     
690,448   

MGIC Investment Corp.

        9,562,705  
195,857   

Synovus Financial Corp.

        8,960,458  
163,040   

Triumph Bancorp, Inc.*

        12,617,665  
77,057   

Western Alliance Bancorp

        7,277,263  
        

 

 

 
           38,418,091  
        

 

 

 
  

Capital Goods - 10.0%

     
104,360   

Altra Industrial Motion Corp.

        5,773,195  
119,533   

Applied Industrial Technologies, Inc.

        10,897,824  
68,729   

Armstrong World Industries, Inc.

        6,191,796  
36,836   

Axon Enterprise, Inc.*

        5,246,183  
156,899   

Boise Cascade Co.

        9,387,267  
247,241   

Builders FirstSource, Inc.*

        11,464,565  
154,916   

BWX Technologies, Inc.

        10,215,161  
66,133   

Curtiss-Wright Corp.

        7,843,374  
68,583   

EnerSys

        6,227,336  
122,061   

ITT, Inc.

        11,096,566  
99,913   

John Bean Technologies Corp.

        13,322,399  
73,947   

Mercury Systems, Inc.*

        5,224,356  
156,882   

Plug Power, Inc.*

        5,622,651  
220,770   

Rexnord Corp.

        10,396,059  
150,336   

SPX Corp.*

        8,760,079  
154,933   

SPX FLOW, Inc.

        9,811,907  
78,895   

Trex Co., Inc.*

        7,222,048  
        

 

 

 
               144,702,766  
        

 

 

 
  

Commercial & Professional Services - 4.7%

     
141,904   

ASGN, Inc.*

        13,543,318  
47,664   

CACI International, Inc. Class A*

        11,756,802  
101,806   

Clean Harbors, Inc.*

        8,557,812  
108,463   

Exponent, Inc.

        10,569,719  
105,687   

Insperity, Inc.

        8,850,230  
103,179   

Tetra Tech, Inc.

        14,003,454  
        

 

 

 
           67,281,335  
        

 

 

 
  

Consumer Durables & Apparel - 5.5%

     
50,026   

Deckers Outdoor Corp.*

        16,529,591  
139,447   

PVH Corp.

        14,739,548  
92,063   

TopBuild Corp.*

        19,280,754  
593,105   

Under Armour, Inc. Class C*

        10,948,718  
107,336   

Wolverine World Wide, Inc.

        4,113,115  
179,103   

YETI Holdings, Inc.*

        12,933,028  
        

 

 

 
           78,544,754  
        

 

 

 
  

Consumer Services - 4.2%

     
161,176   

BJ’s Restaurants, Inc.*

        9,361,102  
64,969   

Churchill Downs, Inc.

        14,775,250  
352,785   

GAN Ltd.*(1)

        6,420,687  
162,999   

Penn National Gaming, Inc.*

        17,088,815  
100,593   

Wingstop, Inc.

        12,792,412  
        

 

 

 
           60,438,266  
        

 

 

 
  

Diversified Financials - 1.4%

     
182,850   

OneMain Holdings, Inc.

        9,822,702  
161,673   

Stifel Financial Corp.

        10,356,772  
        

 

 

 
           20,179,474  
        

 

 

 
  

Food & Staples Retailing - 1.0%

     
258,613   

Performance Food Group Co.*

        14,898,695  
        

 

 

 


 

  Hartford Small Cap Growth HLS Fund

 

  Schedule of Investments – (continued)

  March 31, 2021 (Unaudited)

 

 

Shares or Principal Amount           Market Value  
  

Food, Beverage & Tobacco - 2.1%

     
93,244   

Freshpet, Inc.*

      $ 14,808,080  
464,179   

Hostess Brands, Inc.*

        6,656,327  
264,087   

Simply Good Foods Co.*

        8,033,526  
        

 

 

 
           29,497,933  
        

 

 

 
  

Health Care Equipment & Services - 11.5%

     
256,691   

AdaptHealth Corp.*

        9,435,961  
79,200   

Addus HomeCare Corp.*

        8,283,528  
27,045   

Amedisys, Inc.*

        7,161,246  
135,275   

AtriCure, Inc.*

        8,863,218  
145,330   

Cardiovascular Systems, Inc.*

        5,571,952  
90,715   

Glaukos Corp.*

        7,613,710  
159,202   

Globus Medical, Inc. Class A*

        9,817,987  
196,764   

Health Catalyst, Inc.*

        9,202,652  
127,224   

Integer Holdings Corp.*

        11,717,330  
187,273   

Integra LifeSciences Holdings Corp.*

        12,938,692  
18,792   

iRhythm Technologies, Inc.*

        2,609,457  
63,006   

LHC Group, Inc.*

        12,047,377  
91,520   

ModivCare, Inc.*

        13,555,943  
148,173   

Omnicell, Inc.*

        19,243,228  
286,812   

OraSure Technologies, Inc.*

        3,347,096  
677,178   

R1 RCM, Inc.*

        16,712,753  
91,481   

Tandem Diabetes Care, Inc.*

        8,073,198  
        

 

 

 
               166,195,328  
        

 

 

 
  

Household & Personal Products - 0.4%

     
253,161   

BellRing Brands, Inc. Class A*

        5,977,131  
        

 

 

 
  

Insurance - 1.0%

     
169,450   

James River Group Holdings Ltd.

        7,730,309  
89,323   

Kemper Corp.

        7,120,830  
        

 

 

 
           14,851,139  
        

 

 

 
  

Materials - 2.1%

     
284,635   

Axalta Coating Systems Ltd.*

        8,419,503  
99,499   

Ingevity Corp.*

        7,515,159  
263,743   

Louisiana-Pacific Corp.

        14,627,187  
        

 

 

 
           30,561,849  
        

 

 

 
  

Media & Entertainment - 1.1%

     
116,272   

Cardlytics, Inc.*

        12,755,039  
140,046   

Cargurus, Inc.*

        3,337,296  
        

 

 

 
           16,092,335  
        

 

 

 
  

Pharmaceuticals, Biotechnology & Life Sciences - 19.0%

     
398,595   

Adverum Biotechnologies, Inc.*

        3,930,147  
71,202   

Allakos, Inc.*

        8,172,566  
90,739   

ALX Oncology Holdings, Inc.*

        6,691,094  
181,127   

Apellis Pharmaceuticals, Inc.*

        7,772,160  
84,456   

Arena Pharmaceuticals, Inc.*

        5,860,402  
95,671   

Arrowhead Pharmaceuticals, Inc.*

        6,343,944  
77,104   

Arvinas, Inc.*

        5,096,574  
104,084   

Biohaven Pharmaceutical Holding Co., Ltd.*

        7,114,141  
228,065   

Celldex Therapeutics, Inc.*

        4,698,139  
135,536   

ChemoCentryx, Inc.*

        6,944,865  
181,557   

Constellation Pharmaceuticals, Inc.*

        4,246,618  
46,300   

Design Therapeutics, Inc.*

        1,384,370  
268,780   

Dicerna Pharmaceuticals, Inc.*

        6,872,705  
284,472   

Dyne Therapeutics, Inc.*

        4,417,850  
47,738   

Fate Therapeutics, Inc.*

        3,935,998  
385,915   

Heron Therapeutics, Inc.*

        6,255,682  
433,450   

Homology Medicines, Inc.*

        4,078,764  
746,977   

ImmunoGen, Inc.*

        6,050,514  
90,100   

Instil Bio, Inc.*

        2,259,708  
117,886   

KalVista Pharmaceuticals, Inc.*

        3,028,491  
23,444   

Karuna Therapeutics, Inc.*

        2,818,672  


 

  Hartford Small Cap Growth HLS Fund

 

  Schedule of Investments – (continued)

  March 31, 2021 (Unaudited)

 

 

Shares or Principal Amount           Market Value  
380,158   

Karyopharm Therapeutics, Inc.*

      $ 3,999,262  
68,715   

Kodiak Sciences, Inc.*

        7,791,594  
245,172   

Kura Oncology, Inc.*

        6,931,012  
74,695   

Kymera Therapeutics, Inc.*(1)

        2,902,648  
56,473   

Madrigal Pharmaceuticals, Inc.*

        6,605,647  
398,526   

Mersana Therapeutics, Inc.*

        6,448,151  
46,138   

Mirati Therapeutics, Inc.*

        7,903,439  
132,796   

NanoString Technologies, Inc.*

        8,726,025  
75,734   

Natera, Inc.*

        7,690,030  
182,234   

NeoGenomics, Inc.*

        8,789,146  
69,088   

Nkarta, Inc.*

        2,272,995  
41,112   

Novavax, Inc.*

        7,454,017  
145,701   

PTC Therapeutics, Inc.*

        6,898,942  
274,758   

Radius Health, Inc.*

        5,731,452  
140,398   

RAPT Therapeutics, Inc.*

        3,116,836  
41,525   

Reata Pharmaceuticals, Inc. Class A*

        4,140,042  
238,150   

Revance Therapeutics, Inc.*

        6,656,292  
96,676   

Revolution Medicines, Inc.*

        4,435,495  
135,275   

Rocket Pharmaceuticals, Inc.*

        6,002,152  
254,365   

Syndax Pharmaceuticals, Inc.*

        5,687,601  
197,323   

TCR2 Therapeutics, Inc.*

        4,356,892  
127,038   

TG Therapeutics, Inc.*

        6,123,232  
310,661   

Theravance Biopharma, Inc.*

        6,340,591  
79,780   

Turning Point Therapeutics, Inc.*

        7,546,390  
69,486   

Ultragenyx Pharmaceutical, Inc.*

        7,911,676  
158,001   

Veracyte, Inc.*

        8,492,554  
178,654   

Y-mAbs Therapeutics, Inc.*

        5,402,497  
        

 

 

 
               274,330,014  
        

 

 

 
  

Real Estate - 3.9%

     
392,282   

Essential Properties Realty Trust, Inc. REIT

        8,955,798  
540,226   

Independence Realty Trust, Inc. REIT

        8,211,435  
211,696   

JBG SMITH Properties REIT

        6,729,816  
79,390   

PS Business Parks, Inc. REIT

        12,272,107  
185,983   

Rexford Industrial Realty, Inc. REIT

        9,373,543  
129,220   

Ryman Hospitality Properties, Inc. REIT

        10,015,842  
        

 

 

 
           55,558,541  
        

 

 

 
  

Retailing - 2.9%

     
118,879   

Floor & Decor Holdings, Inc. Class A*

        11,350,567  
207,522   

Foot Locker, Inc.

        11,673,112  
29,371   

Lithia Motors, Inc. Class A

        11,457,333  
89,388   

Shutterstock, Inc.

        7,959,108  
        

 

 

 
           42,440,120  
        

 

 

 
  

Semiconductors & Semiconductor Equipment - 4.9%

     
237,460   

Axcelis Technologies, Inc.*

        9,757,231  
99,396   

Cirrus Logic, Inc.*

        8,427,787  
224,615   

FormFactor, Inc.*

        10,132,383  
320,894   

Lattice Semiconductor Corp.*

        14,446,648  
172,254   

Power Integrations, Inc.

        14,035,256  
103,143   

Synaptics, Inc.*

        13,967,625  
        

 

 

 
           70,766,930  
        

 

 

 
  

Software & Services - 14.5%

     
125,173   

Alarm.com Holdings, Inc.*

        10,812,444  
112,791   

Blackbaud, Inc.

        8,017,184  
82,512   

Concentrix Corp.*

        12,353,697  
175,552   

Digital Turbine, Inc.*

        14,107,359  
61,391   

Everbridge, Inc.*

        7,439,361  
145,961   

ExlService Holdings, Inc.*

        13,159,844  
54,238   

Five9, Inc.*

        8,479,026  
76,330   

j2 Global, Inc.*

        9,148,914  
128,169   

LiveRamp Holdings, Inc.*

        6,649,408  
79,666   

Manhattan Associates, Inc.*

        9,351,195  
253,021   

Medallia, Inc.*

        7,056,756  


 

  Hartford Small Cap Growth HLS Fund

 

  Schedule of Investments – (continued)

  March 31, 2021 (Unaudited)

 

 

Shares or Principal Amount          Market Value  
159,199   

Mimecast Ltd.*

     $ 6,401,392  
9,400   

Olo, Inc. Class A*

       248,066  
32,386   

Paylocity Holding Corp.*

       5,823,974  
224,340   

Perficient, Inc.*

       13,173,245  
99,296   

Q2 Holdings, Inc.*

       9,949,459  
160,264   

Rapid7, Inc.*

       11,957,297  
385,745   

Repay Holdings Corp.*

       9,057,293  
96,446   

Science Applications International Corp.

       8,061,921  
168,091   

Sprout Social, Inc. Class A*

       9,708,936  
278,741   

SVMK, Inc.*

       5,106,535  
216,876   

Varonis Systems, Inc.*

       11,134,414  
923,604   

Verra Mobility Corp.*

       12,500,980  
       

 

 

 
          209,698,700  
       

 

 

 
  

Technology Hardware & Equipment - 2.3%

    
166,404   

II-VI, Inc.*

       11,377,042  
114,022   

Insight Enterprises, Inc.*

       10,879,979  
112,237   

Lumentum Holdings, Inc.*

       10,252,850  
       

 

 

 
          32,509,871  
       

 

 

 
  

Telecommunication Services - 0.4%

    
115,760   

ArcLight Clean Transition Corp. Class A*(1)

       2,069,789  
25,274   

Bandwidth, Inc. Class A*

       3,203,227  
       

 

 

 
          5,273,016  
       

 

 

 
  

Transportation - 0.3%

    
257,326   

Marten Transport Ltd.

       4,366,822  
       

 

 

 
  

Total Common Stocks
(cost $946,926,554)

     $     1,424,629,857  
       

 

 

 

Short-Term Investments - 0.9%

    
  

Repurchase Agreements - 0.3%

    
4,989,504   

Fixed Income Clearing Corp. Repurchase Agreement dated 03/31/2021 at 0.001%, due on 04/01/2021 with a maturity value of $4,989,504; collateralized by U.S. Treasury Note at 0.375%, maturing 04/30/2025, with a market value of $5,089,307

       4,989,504  
       

 

 

 
  

Securities Lending Collateral - 0.6%

    
674,306   

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(2)

       674,306  
7,476,924   

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.04%(2)

       7,476,924  
       

 

 

 
          8,151,230  
       

 

 

 
  

Total Short-Term Investments
(cost $13,140,734)

     $ 13,140,734  
       

 

 

 
  

Total Investments
(cost $960,067,288)

     99.7   $ 1,437,770,591  
  

Other Assets and Liabilities

     0.3     4,399,715  
     

 

 

   

 

 

 
  

Total Net Assets

     100.0   $ 1,442,170,306  
     

 

 

   

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

*

Non-income producing.

(1)

Represents entire or partial securities on loan. See Note 2 in the accompanying Notes to the Schedule of Investments for securities lending information.

(2)

Current yield as of period end.


 

  Hartford Small Cap Growth HLS Fund

 

  Schedule of Investments – (continued)

  March 31, 2021 (Unaudited)

 

 

For information regarding the Fund’s significant accounting policies, please refer to the Fund’s most recent shareholder report.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)   

        

Other Abbreviations:   
REIT   Real Estate Investment Trust   


 

  Hartford Small Cap Growth HLS Fund

 

  Schedule of Investments – (continued)

  March 31, 2021 (Unaudited)

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of March 31, 2021 in valuing the Fund’s investments.

 

Description    Total      Level 1      Level 2      Level 3(1)  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 42,046,747      $ 42,046,747      $      $                     —  

Banks

     38,418,091        38,418,091                

Capital Goods

     144,702,766        144,702,766                

Commercial & Professional Services

     67,281,335        67,281,335                

Consumer Durables & Apparel

     78,544,754        78,544,754                

Consumer Services

     60,438,266        60,438,266                

Diversified Financials

     20,179,474        20,179,474                

Food & Staples Retailing

     14,898,695        14,898,695                

Food, Beverage & Tobacco

     29,497,933        29,497,933                

Health Care Equipment & Services

     166,195,328        166,195,328                

Household & Personal Products

     5,977,131        5,977,131                

Insurance

     14,851,139        14,851,139                

Materials

     30,561,849        30,561,849                

Media & Entertainment

     16,092,335        16,092,335                

Pharmaceuticals, Biotechnology & Life Sciences

     274,330,014        274,330,014                

Real Estate

     55,558,541        55,558,541                

Retailing

     42,440,120        42,440,120                

Semiconductors & Semiconductor Equipment

     70,766,930        70,766,930                

Software & Services

     209,698,700        209,698,700                

Technology Hardware & Equipment

     32,509,871        32,509,871                

Telecommunication Services

     5,273,016        5,273,016                

Transportation

     4,366,822        4,366,822                

Short-Term Investments

     13,140,734        8,151,230        4,989,504         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $   1,437,770,591      $   1,432,781,087      $         4,989,504      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) For the period ended March 31, 2021, there were no transfers in and out of Level 3.


Hartford HLS Series Fund II, Inc. (the “Company”)

Notes to the Schedules of Investments

1. Investment Valuation and Fair Value Measurements:

For purposes of calculating the net asset value (“NAV”) of each class of Hartford Small Cap Growth HLS Fund (the “Fund”), portfolio securities and other assets held in the Fund’s portfolio for which market prices are readily available are valued at market value. Market value is generally determined on the basis of official close price or last reported trade price. If no trades were reported, market value is based on prices obtained from a quotation reporting system, established market makers (including evaluated prices), or independent pricing services. Pricing vendors may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, general market conditions, news, and other factors and assumptions.

If market prices are not readily available or are deemed unreliable, the Fund will use the fair value of the security or other instrument as determined in good faith under policies and procedures established by and under the supervision of the Board of Directors of the Company (the “Board of Directors”) (“Valuation Procedures”). Market prices are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Fund’s portfolio holdings or assets. In addition, market prices are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities or other instruments trade do not open for trading for the entire day and no other market prices are available. Fair value pricing is subjective in nature and the use of fair value pricing by the Fund may cause the NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio holding is primarily traded. There can be no assurance that the Fund could obtain the fair value assigned to an investment if the Fund were to sell the investment at approximately the time at which the Fund determines its NAV.

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Securities and other instruments that are primarily traded on foreign markets may trade on days that are not business days of the Fund. The value of the foreign securities or other instruments in which the Fund invests may change on days when a shareholder will not be able to purchase or redeem shares of the Fund.

Fixed income investments (other than short-term obligations) held by the Fund are normally valued at prices supplied by independent pricing services in accordance with the Valuation Procedures. Short-term investments maturing in 60 days or less are generally valued at amortized cost.

Exchange-traded derivatives, such as options, futures and options on futures, are valued at the last sale price determined by the exchange where such instruments principally trade as of the close of such exchange (“Exchange Close”). If a last sale price is not available, the value will be the mean of the most recently quoted bid and ask prices as of the Exchange Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the most recently quoted bid price as of the Exchange Close. Over-the-counter derivatives are normally valued based on prices supplied by independent pricing services in accordance with the Valuation Procedures.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using the prevailing spot exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities or other instruments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Exchange is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of the Fund.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Investments in open-end mutual funds, if any, are valued at the respective NAV of each open-end mutual fund on the Valuation Date. Shares of investment companies listed and traded on an exchange are valued in the same manner as any exchange-listed equity security. Such open-end mutual funds and listed investment companies may use fair value pricing as disclosed in their prospectuses.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with the Valuation Procedures.

U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of the Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable.


These levels are:

• Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange-traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

• Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange-traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

• Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors has delegated the day-to-day responsibility for implementing the Valuation Procedures to the Valuation Committee. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of the Fund’s sub-advisers, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Board of Directors.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Value Summary and the Level 3 roll-forward reconciliation, if applicable, which follows the Fund’s Schedule of Investments.

For information regarding the Fund’s other significant accounting policies, please refer to the Fund’s most recent Semiannual or Annual Report.

2. Securities Lending:

The Company has entered into a securities lending agency agreement (“lending agreement”) with Citibank, N.A. (“Citibank”). The Fund may lend portfolio securities to certain borrowers in U.S. and non-U.S. markets in an amount not to exceed one-third (33 1/3%) of the value of its total assets. If a security of the Fund is on loan, under the lending agreement, the borrower is required to deposit cash or liquid securities as collateral at least equal to 100% of the market value of the loaned securities; and cash collateral is invested for the benefit of the Fund by the Fund’s lending agent pursuant to collateral investment guidelines. The collateral is marked to market daily, in an amount at least equal to the current market value of the securities loaned.

The Fund is subject to certain risks while its securities are on loan, including the following: (i) the risk that the borrower defaults on the loan and the collateral is inadequate to cover the Fund’s loss; (ii) the risk that the earnings on the collateral invested are not sufficient to pay fees incurred in connection with the loan; (iii) the risk that the principal value of the collateral invested may decline; (iv) the risk that the borrower may use the loaned securities to cover a short sale, which may in turn place downward pressure on the market prices of the loaned securities; (v) the risk that return of loaned securities could be delayed and interfere with portfolio management decisions; and (vi) the risk that any efforts to restrict or recall the securities for purposes of voting may not be effective. These events could also trigger adverse tax consequences for the Fund.

The Fund retains loan fees and the interest on cash collateral investments but are required to pay the borrower a rebate for the use of cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Fund). Upon termination of a loan, the Fund is required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers.

The following table presents the market value of the Fund’s securities on loan, net of amounts available for offset under the master netting arrangements and any related collateral received by the Fund as of March 31, 2021.

 

Fund    Investment
Securities on
Loan, at market
value (1)
     Collateral
Posted
by
Borrower(2)
    Net Amount(3)  

Hartford Small Cap Growth HLS Fund

   $ 8,913,992      $ (8,913,992   $                     —  


(1)

It is the Fund’s policy to obtain additional collateral from, or return excess collateral to, the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than that required under the lending contract.

 
(2)

Collateral received in excess of the market value of securities on loan is not presented in this table.

 
(3)

Net amount represents the net amount receivable due from the counterparty in the event of default.

 

The total cash and non-cash collateral received by the Fund in connection with securities lending transactions is presented below:

 

Fund    Cash
Collateral
     Non-Cash
Collateral
 

Hartford Small Cap Growth HLS Fund

   $ 8,580,242      $  

3. Secured Borrowings:

The following table reflect a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of March 31, 2021.

Certain Transfers Accounted For As Secured Borrowings

Remaining Contractual Maturity of the Agreements

 

Hartford Small Cap Growth HLS Fund    Overnight and
Continuous
     <30 days      Between
30 & 90 days
     >90 days      Total  

Securities Lending Transactions(1)

 

Common Stocks

   $ 8,580,242          $                 —          $                 —          $                 —            8,580,242      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $     8,580,242          $ —          $ —          $ —          $ 8,580,242      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $     8,580,242      
              

 

 

 

 

(1) 

Amount represents the payable for cash collateral received on securities on loan. This will generally be in the “Overnight and Continuous” column as the securities are typically callable on demand.