Hartford Small Cap Growth HLS Fund

 

 

  Schedule of Investments

  September 30, 2020 (Unaudited)

 

Shares or Principal Amount

    Market Value  

Common Stocks - 99.2%

   
     

Automobiles & Components - 1.4%

 

     102,207     

Fox Factory Holding Corp.*

    $ 7,597,046  
     87,616     

Thor Industries, Inc.

      8,346,300  
         

 

 

 
            15,943,346  
         

 

 

 
     

Banks - 2.5%

 

     181,554     

First Hawaiian, Inc.

      2,627,086  
     740,358     

MGIC Investment Corp.

      6,559,572  
     413,390     

Sterling Bancorp

      4,348,863  
     196,986     

Synovus Financial Corp.

      4,170,194  
     227,109     

Triumph Bancorp, Inc.*

      7,072,174  
     117,600     

Western Alliance Bancorp

      3,718,512  
         

 

 

 
            28,496,401  
         

 

 

 
     

Capital Goods - 10.1%

 

     187,683     

Aerojet Rocketdyne Holdings, Inc.*

      7,486,675  
     126,478     

Altra Industrial Motion Corp.

      4,675,892  
     144,455     

Applied Industrial Technologies, Inc.

      7,959,471  
     62,532     

Armstrong World Industries, Inc.

      4,302,827  
     54,679     

Axon Enterprise, Inc.*

      4,959,385  
     155,610     

BWX Technologies, Inc.

      8,762,399  
     58,448     

Curtiss-Wright Corp.

      5,450,861  
     90,710     

EnerSys

      6,088,455  
     129,409     

ITT, Inc.

      7,641,601  
     111,745     

John Bean Technologies Corp.

      10,268,248  
     78,541     

Mercury Systems, Inc.*

      6,083,786  
     173,866     

Patrick Industries, Inc.

      10,000,772  
     253,492     

Rexnord Corp.

      7,564,201  
     206,622     

SPX Corp.*

      9,583,128  
     160,777     

SPX FLOW, Inc.*

      6,884,471  
     84,916     

Trex Co., Inc.*

      6,079,986  
         

 

 

 
                113,792,158  
         

 

 

 
     

Commercial & Professional Services - 3.7%

 

     135,920     

ASGN, Inc.*

      8,639,075  
     105,485     

Clean Harbors, Inc.*

      5,910,325  
     133,029     

Exponent, Inc.

      9,582,079  
     101,251     

Insperity, Inc.

      6,630,928  
     118,802     

Tetra Tech, Inc.

      11,345,591  
         

 

 

 
            42,107,998  
         

 

 

 
     

Consumer Durables & Apparel - 6.7%

 

     71,110     

American Outdoor Brands, Inc.*

      926,563  
     64,602     

Carter’s, Inc.

      5,593,241  
     56,294     

Deckers Outdoor Corp.*

      12,385,243  
     154,221     

PVH Corp.

      9,197,741  
     372,389     

Smith & Wesson Brands, Inc.

      5,779,477  
     103,414     

TopBuild Corp.*

      17,651,736  
     673,345     

Under Armour, Inc. Class C*

      6,625,715  
     295,399     

Wolverine World Wide, Inc.

      7,633,110  
     216,206     

YETI Holdings, Inc.*

      9,798,456  
         

 

 

 
            75,591,282  
         

 

 

 
     

Consumer Services - 4.0%

 

     75,119     

Churchill Downs, Inc.

      12,305,994  
     89,255     

Dunkin’ Brands Group, Inc.

      7,310,877  
     225,857     

Penn National Gaming, Inc.*

      16,419,804  
     66,901     

Wingstop, Inc.

      9,142,022  
         

 

 

 
            45,178,697  
         

 

 

 
     

Diversified Financials - 1.9%

 

     189,937     

OneMain Holdings, Inc.

      5,935,531  
     774,826     

SLM Corp.

      6,268,342  
     116,700     

StepStone Group, Inc. Class A*

      3,105,387  

 

  Hartford Small Cap Growth HLS Fund

 

 

  Schedule of Investments – (continued)

  September 30, 2020 (Unaudited)

 

Shares or Principal Amount

    Market Value  
     116,569     

Stifel Financial Corp.

    $ 5,893,729  
         

 

 

 
            21,202,989  
         

 

 

 
     

Food & Staples Retailing - 0.8%

 

     277,735     

Performance Food Group Co.*

      9,615,186  
         

 

 

 
     

Food, Beverage & Tobacco - 2.3%

 

     107,830     

Freshpet, Inc.*

      12,039,220  
     565,349     

Hostess Brands, Inc.*

      6,970,753  
     300,840     

Simply Good Foods Co.*

      6,633,522  
         

 

 

 
            25,643,495  
         

 

 

 
     

Health Care Equipment & Services - 12.7%

 

     64,997     

Addus HomeCare Corp.*

      6,142,867  
     29,547     

Amedisys, Inc.*

      6,985,797  
     150,243     

AtriCure, Inc.*

      5,994,696  
     137,536     

Cardiovascular Systems, Inc.*

      5,412,042  
     183,700     

Globus Medical, Inc. Class A*

      9,096,824  
     194,288     

Health Catalyst, Inc.*

      7,110,941  
     260,435     

HMS Holdings Corp.*

      6,237,418  
     16,845     

ICU Medical, Inc.*

      3,078,592  
     125,631     

Integer Holdings Corp.*

      7,413,485  
     141,399     

Integra LifeSciences Holdings Corp.*

      6,676,861  
     41,657     

iRhythm Technologies, Inc.*

      9,918,948  
     61,256     

LHC Group, Inc.*

      13,020,575  
     105,940     

NuVasive, Inc.*

      5,145,506  
     193,943     

Omnicell, Inc.*

      14,479,784  
     311,622     

OraSure Technologies, Inc.*

      3,792,440  
     93,967     

Providence Service Corp.*

      8,730,474  
     712,172     

R1 RCM, Inc.*

      12,213,750  
     103,118     

Tandem Diabetes Care, Inc.*

      11,703,893  
         

 

 

 
                143,154,893  
         

 

 

 
     

Household & Personal Products - 0.6%

 

     319,369     

BellRing Brands, Inc. Class A*

      6,623,713  
         

 

 

 
     

Insurance - 1.3%

 

     187,251     

James River Group Holdings Ltd.

      8,338,287  
     96,986     

Kemper Corp.

      6,481,574  
         

 

 

 
            14,819,861  
         

 

 

 
     

Materials - 3.0%

 

     271,330     

Axalta Coating Systems Ltd.*

      6,015,386  
     174,913     

Boise Cascade Co.

      6,982,527  
     466,710     

Graphic Packaging Holding Co.

      6,575,944  
     107,632     

Ingevity Corp.*

      5,321,326  
     290,869     

Louisiana-Pacific Corp.

      8,583,544  
         

 

 

 
            33,478,727  
         

 

 

 
     

Media & Entertainment - 1.2%

 

     150,192     

Cardlytics, Inc.*

      10,599,049  
     149,170     

Cargurus, Inc.*

      3,226,547  
         

 

 

 
            13,825,596  
         

 

 

 
     

Pharmaceuticals, Biotechnology & Life Sciences - 19.8%

 

     439,389     

Adverum Biotechnologies, Inc.*

      4,525,707  
     619,417     

Akebia Therapeutics, Inc.*

      1,554,737  
     19,802     

Akero Therapeutics, Inc.*

      609,704  
     85,613     

Allakos, Inc.*(1)

      6,973,179  
     535,666     

Amicus Therapeutics, Inc.*

      7,563,604  
     226,367     

Apellis Pharmaceuticals, Inc.*

      6,829,492  
     47,807     

Arena Pharmaceuticals, Inc.*

      3,575,485  
     71,583     

Arrowhead Pharmaceuticals, Inc.*

      3,082,364  
     113,885     

Biohaven Pharmaceutical Holding Co., Ltd.*

      7,403,664  
     131,208     

ChemoCentryx, Inc.*

      7,190,198  
     163,748     

Constellation Pharmaceuticals, Inc.*

      3,317,534  
     241,997     

Cytokinetics, Inc.*

      5,239,235  
     339,528     

Dicerna Pharmaceuticals, Inc.*

      6,108,109  
     89,600     

Dyne Therapeutics, Inc.*

      1,809,024  

 

  Hartford Small Cap Growth HLS Fund

 

 

  Schedule of Investments – (continued)

  September 30, 2020 (Unaudited)

 

Shares or Principal Amount

    Market Value  
     87,138     

Emergent BioSolutions, Inc.*

    $ 9,003,969  
     326,139     

Heron Therapeutics, Inc.*(1)

      4,833,380  
     231,219     

Homology Medicines, Inc.*

      2,474,043  
     807,051     

ImmunoGen, Inc.*

      2,905,384  
     318,641     

Karyopharm Therapeutics, Inc.*

      4,652,159  
     101,137     

Kodiak Sciences, Inc.*

      5,988,322  
     80,587     

Kymera Therapeutics, Inc.*

      2,603,766  
     39,349     

Madrigal Pharmaceuticals, Inc.*

      4,671,907  
     233,415     

Mersana Therapeutics, Inc.*

      4,346,187  
     77,896     

Mirati Therapeutics, Inc.*

      12,934,631  
     94,399     

MyoKardia, Inc.*

      12,869,416  
     166,066     

NanoString Technologies, Inc.*

      7,423,150  
     34,000     

Novavax, Inc.*

      3,683,900  
     102,404     

Pacira BioSciences, Inc.*

      6,156,528  
     154,335     

PTC Therapeutics, Inc.*

      7,215,161  
     262,929     

Radius Health, Inc.*

      2,981,615  
     155,564     

RAPT Therapeutics, Inc.*(1)

      5,009,161  
     29,482     

Reata Pharmaceuticals, Inc. Class A*

      2,872,136  
     35,503     

Repligen Corp.*

      5,238,113  
     223,262     

Revance Therapeutics, Inc.*

      5,612,807  
     207,428     

Rhythm Pharmaceuticals, Inc.*

      4,494,965  
     280,626     

TG Therapeutics, Inc.*

      7,509,552  
     329,021     

Theravance Biopharma, Inc.*

      4,864,575  
     184,258     

Tricida, Inc.*

      1,669,377  
     93,125     

Turning Point Therapeutics, Inc.*

      8,135,400  
     74,684     

Ultragenyx Pharmaceutical, Inc.*

      6,138,278  
     207,998     

Veracyte, Inc.*

      6,757,855  
     147,979     

Y-mAbs Therapeutics, Inc.*

      5,680,914  
         

 

 

 
                224,508,687  
         

 

 

 
     

Real Estate - 2.9%

 

     325,538     

Columbia Property Trust, Inc. REIT

      3,551,620  
     53,023     

Coresite Realty Corp. REIT

      6,303,374  
     204,801     

Corporate Office Properties Trust REIT

      4,857,880  
     331,820     

Essential Properties Realty Trust, Inc. REIT

      6,078,942  
     559,749     

Independence Realty Trust, Inc. REIT

      6,487,491  
     49,920     

PS Business Parks, Inc. REIT

      6,109,709  
         

 

 

 
            33,389,016  
         

 

 

 
     

Retailing - 2.2%

 

     137,490     

Floor & Decor Holdings, Inc. Class A*

      10,284,252  
     240,676     

Foot Locker, Inc.

      7,949,528  
     92,611     

Shutterstock, Inc.

      4,819,477  
     9,800     

Stamps.com, Inc.*

      2,361,310  
         

 

 

 
            25,414,567  
         

 

 

 
     

Semiconductors & Semiconductor Equipment - 4.3%

 

     273,877     

Axcelis Technologies, Inc.*

      6,025,294  
     105,150     

Cirrus Logic, Inc.*

      7,092,368  
     286,104     

Cohu, Inc.

      4,915,267  
     97,404     

First Solar, Inc.*

      6,448,145  
     282,470     

FormFactor, Inc.*

      7,041,977  
     154,221     

Power Integrations, Inc.

      8,543,843  
     102,025     

Synaptics, Inc.*

      8,204,850  
         

 

 

 
            48,271,744  
         

 

 

 
     

Software & Services - 15.0%

 

     130,161     

Alarm.com Holdings, Inc.*

      7,191,395  
     11,800     

Bentley Systems, Inc. Class B*

      370,520  
     108,851     

Blackbaud, Inc.

      6,077,151  
     43,364     

CACI International, Inc. Class A*

      9,243,470  
     70,293     

Everbridge, Inc.*

      8,837,939  
     112,581     

ExlService Holdings, Inc.*

      7,426,969  
     80,263     

Five9, Inc.*

      10,408,506  
     157,021     

LiveRamp Holdings, Inc.*

      8,128,977  
     69,633     

Manhattan Associates, Inc.*

      6,649,255  
     257,225     

Medallia, Inc.*

      7,053,110  

 

  Hartford Small Cap Growth HLS Fund

 

 

  Schedule of Investments – (continued)

  September 30, 2020 (Unaudited)

 

Shares or Principal Amount

               Market Value  
     219,941     

Mimecast Ltd.*

       $ 10,319,632  
     37,241     

Paylocity Holding Corp.*

         6,011,442  
     54,531     

Pegasystems, Inc.

         6,600,432  
     238,400     

Perficient, Inc.*

         10,189,216  
     118,301     

Q2 Holdings, Inc.*

         10,796,149  
     191,075     

Rapid7, Inc.*

         11,701,433  
     117,791     

Repay Holdings Corp.*

         2,768,089  
     99,931     

Science Applications International Corp.

         7,836,589  
     186,090     

Sprout Social, Inc. Class A*

         7,164,465  
     433,800     

SVMK, Inc.*

         9,591,318  
     69,610     

Varonis Systems, Inc.*

         8,034,386  
     772,654     

Verra Mobility Corp.*

         7,463,838  
            

 

 

 
               169,864,281  
            

 

 

 
     

Technology Hardware & Equipment - 1.9%

      
     240,764     

CTS Corp.

         5,304,031  
     140,313     

Insight Enterprises, Inc.*

         7,938,910  
     114,932     

Lumentum Holdings, Inc.*

         8,634,841  
            

 

 

 
               21,877,782  
            

 

 

 
     

Telecommunication Services - 0.4%

      
     25,420     

Bandwidth, Inc. Class A*

         4,437,569  
            

 

 

 
     

Transportation - 0.5%

      
     322,108     

Marten Transport Ltd.

         5,256,802  
            

 

 

 
     

Total Common Stocks
(cost $907,449,224)

       $ 1,122,494,790  
            

 

 

 

Short-Term Investments - 0.7%

      
     

Repurchase Agreements - 0.6%

      
     6,312,257     

Fixed Income Clearing Corp. Repurchase Agreement dated
09/30/2020 at 0.040%, due on 10/01/2020 with a maturity value of $6,312,264;
collateralized by U.S. Treasury Inflation Index Note at 0.125%, maturing 07/15/2030,
with a market value of $6,438,602

         6,312,257  
            

 

 

 
     

Securities Lending Collateral - 0.1%

      
     1,443,451     

Fidelity Investments Money Market Funds, Government Portfolio,
Institutional Class, 0.03%(2)

         1,443,451  
     14,016     

Goldman Sachs Financial Square Funds, Government Fund,
Institutional Class, 0.03%(2)

         14,016  
            

 

 

 
               1,457,467  
            

 

 

 
     

Total Short-Term Investments
(cost $7,769,724)

       $ 7,769,724  
            

 

 

 
     

Total Investments
(cost $915,218,948)

     99.9%       $ 1,130,264,514  
     

Other Assets and Liabilities

         0.1%         933,126  
        

 

 

     

 

 

 
     

Total Net Assets

     100.0%       $     1,131,197,640  
        

 

 

     

 

 

 

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)

  September 30, 2020 (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)

  September 30, 2020 (Unaudited)

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of September 30, 2020 in valuing the Fund’s investments.

 

Description    Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Automobiles & Components

   $ 15,943,346      $ 15,943,346      $ —        $ —    

Banks

     28,496,401        28,496,401        —          —    

Capital Goods

     113,792,158        113,792,158        —          —    

Commercial & Professional Services

     42,107,998        42,107,998        —          —    

Consumer Durables & Apparel

     75,591,282        75,591,282        —          —    

Consumer Services

     45,178,697        45,178,697        —          —    

Diversified Financials

     21,202,989        21,202,989        —          —    

Food & Staples Retailing

     9,615,186        9,615,186        —          —    

Food, Beverage & Tobacco

     25,643,495        25,643,495        —          —    

Health Care Equipment & Services

     143,154,893        143,154,893        —          —    

Household & Personal Products

     6,623,713        6,623,713        —          —    

Insurance

     14,819,861        14,819,861        —          —    

Materials

     33,478,727        33,478,727        —          —    

Media & Entertainment

     13,825,596        13,825,596        —          —    

Pharmaceuticals, Biotechnology & Life Sciences

     224,508,687        224,508,687        —          —    

Real Estate

     33,389,016        33,389,016        —          —    

Retailing

     25,414,567        25,414,567        —          —    

Semiconductors & Semiconductor Equipment

     48,271,744        48,271,744        —          —    

Software & Services

     169,864,281        169,864,281        —          —    

Technology Hardware & Equipment

     21,877,782        21,877,782        —          —    

Telecommunication Services

     4,437,569        4,437,569        —          —    

Transportation

     5,256,802        5,256,802        —          —    

Short-Term Investments

     7,769,724        1,457,467        6,312,257        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,130,264,514      $     1,123,952,257      $         6,312,257      $                 —    
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) For the period ended September 30, 2020, 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 per share (“NAV”) of each class of 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 currency 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. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of 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 such 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 Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follows the Fund’s Schedule of Investments.

For information regarding a 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 Fund could lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral; (iv) the risk that the borrower may use the loaned securities to cover a short sale, which may in turn place downward pressure on the market prices of the loaned securities; (v) the risk that return of loaned securities could be delayed and interfere with portfolio management decisions; and (vi) the risk that any efforts to restrict or recall the securities for purposes of voting may not be effective. These events could also trigger adverse tax consequences for the Fund.

The 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 September 30, 2020.

 

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

Hartford Small Cap Growth HLS Fund

   $1,485,444    $(1,485,444)   $—              
  (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

   $1,534,176    $—              

3. Secured Borrowings:

The following tables reflect a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of September 30, 2020.

Certain Transfers Accounted For As Secured Borrowings

 

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

Securities Lending Transactions(1)

 

Common Stocks

   $ 1,534,176      $ —        $ —        $ —        $ 1,534,176  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 1,534,176      $ —        $ —        $ —        $ 1,534,176  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 1,534,176  
              

 

 

 

(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.