Hartford Mutual Funds

Transcription

1 Hartford Mutual Funds SIMPLIFIED PROSPECTUS MAY 14, 2010 Series A and Series B (and other series as indicated) HARTFORD PORTFOLIOS Hartford Growth Portfolio 1 Hartford Balanced Growth Portfolio 1 Hartford Balanced Portfolio 1 Hartford Conservative Portfolio 1 GLOBAL AND INTERNATIONAL EQUITY Hartford Capital Appreciation Fund 2, 3 Hartford Global Leaders Fund 2, 3 Hartford International Equity Fund 4 Hartford U.S. Dividend Growth Fund 2, 3 Hartford U.S. Stock Fund 5 CANADIAN AND GLOBAL BALANCED Hartford Canadian Balanced Fund 2, 3 Hartford Global Balanced Fund 2, 3 FIXED INCOME Hartford Canadian Bond Fund 3, 5 Hartford Global High Income Fund 6 MONEY MARKET Hartford Canadian Money Market Fund 3, 7 DOMESTIC EQUITY Hartford Canadian Dividend Fund 2, 3 Hartford Canadian Dividend Growth Fund 3, 5 Hartford Canadian Stock Fund 2, 3 Hartford Canadian Value Fund 2, 3 1 Series F, Series T(A) and Series T(B) also available. 2 Series D, Series F, Series I, Series T(A) and Series T(B) also available. 3 Series D and DCA Series D units closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008, and through automatically reinvested distributions. 4 Series F, Series I, Series T(A) and Series T(B) also available. 5 Series D, Series F and Series I also available. 6 Series F and Series I also available. 7 DCA Series A, DCA Series B, DCA Series D and DCA Series F issuable in versions (currently only Twelve Month Version 2 and Six Month Version 5 of each DCA Series available) and Series D also available. No securities regulatory authority has expressed an opinion about these units. It is an offence to claim otherwise. The Funds and the securities offered under this simplified prospectus are not registered with the United States Securities and Exchange Commission and can only be sold in the United States in reliance on exemptions from registration.

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3 TABLE OF CONTENTS PART A: General Information about Hartford Mutual Funds Introduction What is a Mutual Fund and What are the Risks of InvestinginaMutualFund?... 2 Organization and Management of Hartford Mutual Funds Purchases, Switches and Redemptions Optional Services and the DCA Program Fees and Expenses Dealer Compensation Dealer Compensation from Management Fees Income Tax Considerations for Investors What are Your Legal Rights? PART B: Specific Information about each of the MutualFundsDescribedinThisDocument Hartford Growth Portfolio Hartford Balanced Growth Portfolio Hartford Balanced Portfolio Hartford Conservative Portfolio Hartford Capital Appreciation Fund Hartford Global Leaders Fund Hartford International Equity Fund Hartford U.S. Dividend Growth Fund Hartford U.S. Stock Fund Hartford Canadian Dividend Fund Hartford Canadian Dividend Growth Fund Hartford Canadian Stock Fund Hartford Canadian Value Fund Hartford Canadian Balanced Fund Hartford Global Balanced Fund Hartford Canadian Bond Fund Hartford Global High Income Fund Hartford Canadian Money Market Fund i

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5 PART A: GENERAL INFORMATION ABOUT HARTFORD MUTUAL FUNDS INTRODUCTION In this document, we, us, our, the Manager, the Trustee, the Principal Portfolio Adviser, the Registrar and Hartford Investments refer to Hartford Investments Canada Corp. In this document, Hartford Mutual Funds or the Funds refer to all of the mutual funds managed by Hartford Investments listed on the cover page and Hartford Mutual Fund, the Fund or a Fund refer to any one of these mutual funds. Hartford Funds refers to all of the Funds other than Hartford Portfolios, and Hartford Fund, refers to any one of such mutual funds. Hartford Portfolios refers collectively to Hartford Growth Portfolio, Hartford Balanced Growth Portfolio, Hartford Balanced Portfolio and Hartford Conservative Portfolio and Hartford Portfolio refers to any one of Hartford Portfolios. Hartford Portfolios may invest in Hartford Funds. Collectively, Hartford Mutual Funds in which Hartford Portfolios invest are called the Underlying Funds. The Funds are open-ended mutual fund trusts established by declarations of trust under the laws of the Province of Ontario dated July 3, 2008 for Hartford Global High Income Fund, dated January 25, 2007 for Hartford Global Balanced Fund, dated June 9, 2006 for Hartford U.S. Dividend Growth Fund, dated August 25, 2004 for Hartford Canadian Value Fund, Hartford Canadian Dividend Growth Fund and Hartford Canadian Dividend Fund, dated April 18, 2000 for Hartford Capital Appreciation Fund, Hartford Global Leaders Fund, Hartford U.S. Stock Fund, Hartford Canadian Stock Fund, Hartford Canadian Balanced Fund, Hartford Canadian Bond Fund and Hartford Canadian Money Market Fund, dated September 22, 2008 for Hartford International Equity Fund and dated January 8, 2009 for Hartford Portfolios as (where applicable) amended and restated or as amended, consolidated and restated (collectively the Declarations of Trust and individually a Declaration of Trust ). This document contains selected important information to help you make an informed decision about investing in the Funds and to help you understand your rights as an investor. This document is divided into two parts. The first part, from pages 1 through 32 contains general information applicable to all of the Funds. The second part, from pages 33 through 86, contains specific information about each of the Funds. Additional information about each of the Funds is available in the Fund s Annual Information Form, the most recently filed annual financial statements and any interim financial statements of the Fund filed after the annual financial statements, the Fund s most recently filed annual management report of fund performance and any interim management report of fund performance for the Fund filed after that annual management report of fund performance. These documents are incorporated by reference into this document, which means that they legally form part of this document just as if they were printed as part of this document. You can get a copy of these documents, at your request, and at no cost, by calling us toll-free at or from your dealer. These documents are also available at or by writing to Hartford Investments, 121 King Street West, Suite 1810, P.O. Box 114, Toronto, Ontario M5H 3T9. These documents and other information are also available on the Internet site of SEDAR at 1

6 WHAT IS A MUTUAL FUND AND WHAT ARE THE RISKS OF INVESTING IN A MUTUAL FUND? What is a Mutual Fund? A mutual fund is a pool of money contributed by people with similar investment objectives. People who contribute money become unitholders of the mutual fund. A mutual fund is managed by investment professionals who select the securities which are held by the fund. Mutual fund security holders share the fund s income, expenses, and any gains and losses the fund makes on its investments in proportion to the units they own. The value of an investment in a mutual fund is realized by redeeming the units held. Each Fund offers an unlimited number of Series A units and an unlimited number of Series B units. Each Fund, other than Hartford Portfolios, Hartford International Equity Fund and Hartford Global High Income Fund, offers an unlimited number of Series D units. Each Fund, other than Hartford Canadian Money Market Fund, offers an unlimited number of Series F units. Each Fund, other than Hartford Portfolios and Hartford Canadian Money Market Fund, offers an unlimited number of Series I units. Each Fund, other than Hartford U.S. Stock Fund, Hartford Canadian Dividend Growth Fund, Hartford Global High Income Fund, Hartford Canadian Bond Fund, and Hartford Canadian Money Market Fund, offers an additional two series of units, namely the Series T(A) units and Series T(B) units. Hartford Canadian Money Market Fund also offers an unlimited number of units of an additional four series: DCA Series A units, DCA Series B units, DCA Series D units and DCA Series F units, issuable in an unlimited number of versions of each such series. When we refer to DCA units we mean DCA Series A units, DCA Series B units, DCA Series D units and DCA Series F units of Hartford Canadian Money Market Fund. Effective May 9, 2008, Series D units of all of the Funds and DCA Series D units of Hartford Canadian Money Market Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and through automatically reinvested distributions. The Manager may reopen these series of units to new subscriptions in the future. Each unit of any series or version of a series of a Fund is redeemable, entitles the holder of a whole unit of a series of the Fund to one vote per unit at any meeting of unitholders of the Fund (other than meetings at which holders of a series are entitled to vote separately as a series) and represents an equal undivided beneficial interest in the Fund s net assets attributable to that series. Units of the Funds are denominated in Canadian dollars. A version of a particular series of DCA units of Hartford Canadian Money Market Fund is only distinguishable from another version of the same series in respect of certain bonus yield obligations (and related duration periods) payable by the Manager (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program and Part B: Specific Information About Each of the Mutual Funds Described in this Document Hartford Canadian Money Market Fund Description of Securities DCA Units ). The assets of each Fund are managed as one pool of assets regardless of whether those assets arose from the sale of one series or version of a series of units or another. What are the General Risks of Investing in a Mutual Fund? Mutual funds are subject to the risk that your investment may not perform as hoped or expected over a certain period of time and that you may suffer monetary losses. There are various degrees and types of risks. Mutual funds own different kinds of investments stocks, bonds, cash, derivatives, income trusts depending on the fund s investment objectives. The value of these investments will change from day to day, reflecting changes in interest rates, economic conditions, and market and company news. As a result, the value of a mutual fund s units may go up and down, and the value of your investment in a mutual fund may be more or less when you redeem it than when you purchased it. For example, today you might pay $10 for a unit of a Fund, and tomorrow the price might be $10.05 or $9.95 for such unit, because the value of the Fund has changed. There will inevitably be periods where a Fund will experience a drop in the price of its units. If you sell your units in a Fund when the price is lower than you paid for them, you will lose money on your investment. Mutual funds are generally designed to be held as long-term investments. Although we manage the Funds to earn as high a return as possible consistent with preservation of capital, we cannot guarantee that the full amount of your original investment will be returned. Unlike bank accounts or GICs, mutual fund units are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. Under exceptional circumstances, a mutual fund may suspend redemptions. Please see Suspending your right to redeem units. What are the Specific Risks of Investing in a Mutual Fund? In addition to the general risks of mutual fund investing, each mutual fund carries specific risks depending on its particular investments and strategies described below. Each Hartford Portfolio invests primarily in a mix of Underlying Funds rather than directly in securities. For this reason each Hartford Portfolio is exposed to the risks associated with its Underlying Funds in proportion to the amount of its assets allocated to any one Underlying Fund. 2

7 Asset Backed and Mortgage Backed Securities Risk Asset backed securities are debt obligations that are backed by pools of consumer or business loans. Mortgage backed securities are debt obligations backed by pools of mortgages on commercial or residential real estate. Exposure to these securities can result in prepayment or extension risk. Prepayment risk is the risk that falling interest rates could cause faster than expected prepayments of the mortgages and loans underlying mortgage and asset backed securities. Reinvesting these prepayments at a time when interest rates are falling could result in a reduction in income. Extension risk is the risk that rising interest rates could cause mortgage and loan prepayments to slow, which could increase the interest rate sensitivity of mortgage and asset backed securities. There is also a risk that a borrower or mortgagor may default on its obligations or there may be a drop in the value of a property secured by the loan or mortgage. Such defaults and/or changes in value of the underlying property may have an adverse impact on the value of any related mortgage backed or asset backed securities. For example, an unexpectedly high rate of defaults on the mortgages held by a mortgage pool may limit substantially the pool s ability to make payments of principal or interest to the Fund as a holder of such subordinated securities, reducing the values of those securities or in some cases rendering them worthless. The risk of such defaults is generally higher in the case of mortgage pools that include so-called subprime mortgages or that include mortgages related to areas that have been subject to sharp declines in the value of the underlying property. Cash Deposit Risk To the extent that assets of the Funds are placed on deposit with a financial institution, the Funds are exposed to a risk that the financial institution may be unable to meet its obligations to the Funds. To reduce this risk, the Funds generally only place cash on deposit with the Funds Custodian or sub-custodians or with major financial institutions. Concentration Risk The Fund may invest a significant portion of its assets in a relatively small number of issuers. Such concentration will reduce the diversification of the Fund, which may have an impact on the Fund s returns. It may also increase the volatility in the Fund s unit price and, if there is a shortage of buyers willing to purchase those securities, the illiquidity of the Fund s portfolio. Credit Risk The issuer of a bond or other fixed income security may not be able to pay interest or repay principal when it is due. Many fixed income securities issued by companies and governments are rated by third party sources to help to describe the creditworthiness of an issuer. Credit risk is generally lowest among issuers that have a high credit rating from an independent agency. Securities with a low credit rating (high yield securities or junk bonds) have the potential to offer better returns and higher interest rates than securities with high ratings, but they also are more exposed to credit risk and have a greater potential for substantial loss. Exchange-Traded Fund Risk Most exchange-traded funds ( ETFs ) are mutual funds whose units are purchased and sold on a securities exchange. An ETF represents a portfolio of securities designed to track a particular market segment or index. To the extent that an ETF tracks a particular market segment, such as real estate, the value of the ETF will fluctuate as the value of the particular market segment it tracks fluctuates. An investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. In addition, an ETF may fail to accurately track the market segment or index that underlies its investment objective. ETFs in which a Fund invests may not be actively managed. Therefore, such ETFs would not necessarily sell a security because the security s issuer was in financial trouble, unless the security is removed from the applicable index being replicated. As a result, the performance of an ETF may be lower than the performance of an actively managed fund. The price of an ETF can fluctuate and a Fund could lose money investing in an ETF. In addition, as with traditional mutual funds, ETFs charge asset-based fees. Any Fund that invests in ETFs will indirectly pay a proportional share of the asset-based fees of such ETFs. Moreover, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of the ETF s units trade at a premium or a discount to their net asset value; (ii) an active trading market for an ETF s units may not develop or be maintained; and (iii) there is no assurance that the requirements of the exchange necessary to maintain the listing of an ETF will continue to be met or remain unchanged. Income Trust Risk Income trusts usually hold debt or equity securities in, or are entitled to receive royalties from, an underlying business. Generally, income trusts fall into one of four sectors: business trusts, utility trusts, resource trusts and real estate investment trusts. The risks associated with income trusts will vary depending on the sector and the underlying assets. Similar to other equity securities, income trusts are also subject to general risks associated with business cycles, commodity prices, interest rates and other economic factors. These securities face the same risks as set out in the Market Risk section below. Typically, income trusts are more volatile than fixed-income securities and preferred shares. In situations where an income trust is unable to meet distribution targets, its value 3

8 may decline significantly. Returns on income trusts are neither fixed nor guaranteed. In addition, where an income trust is not able to satisfy claims against the trust, investors in the income trust (which include a fund that invests in the income trust), could be held responsible for such obligations. Accordingly, certain jurisdictions have enacted legislation to protect investors from some of this liability. To the extent that any of the Funds use income trusts, such use will be limited to those jurisdictions which have enacted such legislation. Changes relating to the taxation of income of, and distributions by, certain publicly traded trusts (including income trusts) and partnerships (other than certain real estate investment trusts) have been enacted. Generally, the changes tax such trusts and partnerships on the amount of certain distributions or income allocations made by them. These distributions or allocations are treated as eligible dividends in the hands of investors. This new tax could affect the return on investment in respect of publicly traded income trusts or limited partnerships that may be held by a Fund. Interest Rate Sensitive Securities In the case of interest rate sensitive securities, including, but not limited to, all bonds and other fixed income instruments, the value of a security may change as the general level of interest rates fluctuates. When interest rates decline, the value of a portfolio of such securities can be expected to rise. Conversely, when interest rates rise, the value of a portfolio of such securities can be expected to decline. In addition, a Fund may be subject to income risk, which is the potential for a decline in a Fund s income due to falling interest rates. There is the potential risk that falling interest rates could cause a bond issuer to call or repay bonds held by the Fund before their maturity date. Reinvesting these repayments at a time when interest rates are falling could result in a reduction in income. The Funds may invest in interest rate sensitive securities. In addition, a Fund can lose money if any interest rate sensitive securities it owns are downgraded in credit rating or go into default. In general, lower-rated bonds have higher credit risks. International Investment Exposure Certain of the Funds, the performance of which is linked principally to foreign markets and those with more modest exposure to foreign markets, may involve certain considerations not typically associated with investing in securities issued by Canadian issuers or traded in Canadian dollars, including: Currency Risk the potential effect of changes in the rate of exchange between the Canadian dollar, the U.S. dollar and other currencies in which such investments are denominated. The Funds may invest in securities denominated or traded in currencies other than the Canadian dollar. Consequently, the Canadian dollar equivalent of a Fund s investment may be adversely affected by reductions in the value of the applicable foreign currencies relative to the Canadian dollar and may be positively affected by increases in the value of the applicable foreign currencies relative to the Canadian dollar. Foreign Security Risk the effect of local market conditions on the availability of public information, accounting and financial reporting standards, the volume of trading and the liquidity of securities, and transaction costs and administrative practices; securities of some companies in certain countries may be less liquid and more volatile than securities of comparable Canadian companies; in some countries, the possibility of expropriation, confiscatory taxation or nationalization of assets, and the establishment of foreign exchange controls exists; and the Funds might have greater difficulty taking appropriate legal action with respect to foreign investments in non-canadian courts than with respect to domestic issuers in Canadian courts. Investments in Emerging Countries Investments in companies of emerging countries may involve greater risks than investments in more established companies listed on stock exchanges in North America. Such investments may be considered speculative. For example, companies in emerging countries may have limited product lines, markets or financial and management resources and the securities of such companies may be less liquid and more volatile. In many emerging countries, there is less governmental supervision and regulation of business and industry practices, stock exchanges, brokers, custodians and listed companies than in Canada. There is an increased risk, therefore, of uninsured loss due to lost, stolen or counterfeit share certificates, share registration problems and fraud. In some countries, there is also a greater risk of political and social instability and corruption. Investments in Small and Mid-Sized Companies Investments in small and mid-sized companies on a global basis may involve greater risks than investments in larger, more established companies, and thus may be considered speculative. For example, some companies may have limited product lines, markets or financial and management resources. In addition, shares of many smaller companies trade less frequently and in smaller volume, and may be subject to more abrupt or erratic price movements than shares of large companies. The securities of small and midsized companies may also be more sensitive to market changes than the securities of large companies. 4

9 Market Risk Companies issue equities, or stocks, to help finance their operations and future growth. Mutual funds that purchase equities, like other investors, acquire ownership in these companies. The value of these equities varies according to how the market reacts to specific company developments, market activity or the economy in general. Risks of Investing in Bank Loans and Loan Participations Bank loans are subject to the credit risk of non-payment of principal or interest. Substantial increases in interest rates may cause an increase in loan defaults. Although the loans may be fully collateralized at the time of acquisition, the collateral may decline in value, be relatively illiquid, or lose all or substantially all of its value subsequent to investment. Investments may be in second lien loans (secured loans with a claim on collateral subordinate to a senior lender s claim on such collateral) and unsecured loans. Holders claims under unsecured loans are subordinated to claims of creditors holding secured indebtedness and possibly other series of creditors holding unsecured debt. Unsecured loans have a greater risk of default than secured loans, particularly during periods of deteriorating economic conditions. Since they do not afford the lender recourse to collateral, unsecured loans are subject to greater risk of non-payment in the event of default than secured loans. Many loans are relatively illiquid and may be difficult to value. In connection with purchasing loan participations, a Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which they have purchased the participation. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. In certain cases, the market for bank loans and loan participations is not highly liquid, and that in such cases, the lack of a highly liquid secondary market may have an adverse impact on the value of such securities. This will also have an adverse impact on the Fund s ability to dispose of particular bank loans or loan participations when necessary to meet the Fund s liquidity needs or when necessary in response to a specific economic event, such as deterioration in the creditworthiness of the borrower. The lack of a highly liquid secondary market for bank loans and loan participations also may make it more difficult for a Fund to value these securities for purposes of calculating its net asset value. Risks of Investments in Other Mutual Funds A mutual fund may pursue its investment objectives indirectly by investing in securities of other mutual funds, including index participation units (i.e., exchange-traded funds), in order to gain access to the strategies pursued by those Underlying Funds. There can be no assurance that any use of such multi-layered fund of fund structures will result in any gains for a Fund. If an Underlying Fund that is not traded on an exchange suspends redemptions, a Fund will be unable to value part of its portfolio and may be unable to redeem units. In addition, the portfolio manager could allocate a Fund s assets in a manner that results in that Fund underperforming its peers. Risks of Large Unitholders and of Unit Transactions Funds having unitholders that individually have significant holdings in the Fund are subject to the risk that if such large unitholder makes a request for a significant purchase or redemption of units of a Fund, the Fund may have to purchase or sell a large portion of its portfolio to accommodate such request. These circumstances may affect the Fund s net asset value because the Fund may have to sell some of its portfolio at an unfavourable time. Similarly, ongoing fluctuations in the relative levels of purchases and redemptions of units in a Fund over time including, in particular, systematic redemptions of DCA units of Hartford Canadian Money Market Fund pursuant to the DCA Program, can affect the portfolio investment management of the Fund which can impact the Fund s net asset value and/or its investment performance. Risks of Using Derivatives A derivative is a contract between two parties the value of which is based on, or derived from, an underlying asset, such as a stock, bond or currency, or a market index such as The Standard & Poor s/toronto Stock Exchange Composite Index. It is not a direct investment in the underlying asset. Derivatives may be used both for hedging purposes (i.e., to offset or reduce a risk associated with an investment or group of investments) and for the purpose of making a profit. Hedging strategies may be implemented through the purchase and sale of listed and over the counter forwards, futures, swaps, options and options on futures to hedge against changes in interest rates, currency exchange rates and security prices for positions held or intended to be held. In respect of implementing non-hedging strategies, derivatives may be used to adjust market and currency exposure and to equitize cash through the purchase and sale of listed and over the counter forwards, futures, swaps, options on futures and options on securities, indexes, interest rates and currencies. Similar instruments may be used to enhance returns. Derivatives are generally useful in: reducing transaction costs; providing a more effective exposure to foreign markets than direct investments; providing greater liquidity; achieving exposure to a security without directly investing in it; 5

10 hedging against changes in currency exchange rates, fluctuations and interest rates and dropping prices on stock markets; and increasing flexibility and speed in making portfolio changes. There can be no assurance that any use of derivatives by the Funds will result in any gains for the Funds and there is no guarantee that hedging will be effective. Additional risks include the fact that: in the case of over-the-counter options and forward contracts, there is no guarantee that a market will exist for these investments when the Fund wishes to close out its position; in the case of exchange-traded options and futures contracts, there may be a lack of liquidity when the Fund wishes to close out its position; futures exchanges may impose daily trading limits on certain derivatives, which could prevent the Fund from closing out positions; if the other party to the derivative in the case of over-thecounter transactions is unable to fulfil its obligations, the Fund could experience a loss; derivative investments in some foreign markets are less secure; and if a derivative is based on a stock market index and trading is halted on a substantial number of stocks in the index or there is a change in the composition of the index, it could have an adverse effect on the derivative. Furthermore, there can be no assurance that a particular derivatives strategy, including hedging strategies, will be available to a Fund due to registration limitations, the cost of implementing such a strategy or otherwise. Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements One or more of the Funds may enter into repurchase agreements, reverse repurchase agreements and securities lending agreements to the extent permitted by the Canadian securities regulators. Investors will be given 60 days prior written notice before a Fund commences using repurchase, reverse repurchase or securities lending agreements. A repurchase agreement is an agreement whereby the Fund agrees to sell portfolio securities to a counterparty for cash and simultaneously commits to buy back the same securities from the counterparty on a predetermined date at a pre-negotiated price using the cash received by the Fund from the counterparty. While the Fund retains its exposure to changes in the value of portfolio securities, it also earns fees for participating in the repurchase transaction. A reverse repurchase agreement is an agreement whereby the Fund agrees to buy portfolio securities from a counterparty and simultaneously commits to sell the same securities back to the counterparty on a predetermined date at a pre-negotiated price. The difference between the Fund s purchase price for the securities and the resale price provides the Fund with additional income. A securities lending agreement is an agreement whereby the Fund loans portfolio securities to a counterparty for a fee and the counterparty simultaneously commits to return the securities on demand. While the securities are on loan, the counterparty provides the Fund with collateral consisting of a combination of cash and/or securities. The use of these types of agreements may be subject to certain risks, including the fact that the other party may default under the agreement or go bankrupt. In a reverse repurchase agreement, the Fund may not be able to sell the security in the market at the same price it paid to the counterparty for the security if the market value of the security purchased by the Fund decreases relative to the value of the collateral held by the Fund. In a repurchase or securities lending agreement, the Fund could incur a loss if the value of the security sold or loaned increased such that it is more than the original amount of cash paid or the collateral held by the Fund. To minimize these risks: The Funds require that the other party to the transaction establish collateral, valued as at least 102% of the market value of the securities sold or loaned, or 102% of the cash paid for the securities, as applicable; The collateral held by the Fund may consist only of cash, qualified securities or securities that can be immediately converted into identical securities to those that are on loan. The collateral is marked to market daily; A Fund cannot enter into a repurchase or securities lending agreement if the market value of the securities loaned by the Fund and not yet returned, or sold by the Fund and not yet repurchased would exceed 50% of the total value of its assets; and The Fund s total exposure to any one counterparty is limited to 10% of the total value of the Fund s assets. Risks of Yield Fluctuations One or more Funds may be subject to the risk that the yield on a Fund s units will fluctuate. The yields of certain Funds will fluctuate on a daily basis. Therefore, yields for past periods of these Funds are not an indication or representation of future yields. A Fund s yield is affected by changes in interest rates, average portfolio maturity, the types and quality of portfolio securities held and operating expenses. Under certain market conditions and depending on the Fund s investments, a Fund s yield may be less than the management expense ratio for one or more series of units of the Fund. In such circumstances, the Manager may voluntarily choose to absorb some or all of the expenses of the Fund or may choose to waive its right to receive all or a portion of its management fee charged to the Fund. Series Risk All of the Funds offer more than one series of units. Each series of units of the Funds has its own fees and expenses allocated to it and paid out of the investments and other 6

11 assets attributable to that series. Each Fund as a whole is responsible for the financial obligations of all of its series and if there are not enough assets attributable to a series of units of a Fund to pay its expenses, the other series of the Fund are responsible for making up the shortfall. In such a case, the value of the units of the other series will decline by the proportionate amount of any shortfall paid. 7

12 ORGANIZATION AND MANAGEMENT OF HARTFORD MUTUAL FUNDS The table below provides you with information about Hartford Investments and Hartford Mutual Funds. Manager Hartford Investments Canada Corp. 121 King Street West, Suite 1810 P.O. Box 114 Toronto, Ontario M5H 3T (416) Trustee Hartford Investments Canada Corp. Toronto, Ontario Principal Portfolio Adviser Hartford Investments Canada Corp. Toronto, Ontario Portfolio Sub-Advisers The portfolio sub-advisers vary between Funds. Hartford Investment Management Company, an affiliate of the Manager based in Hartford, Connecticut, is the portfolio sub-adviser of Hartford Global High Income Fund, Hartford Canadian Bond Fund, Hartford Canadian Money Market Fund, Hartford Portfolios and the fixed-income component of Hartford Global Balanced Fund. Wellington Management Company, LLP, based in Boston, Massachusetts is the portfolio sub-adviser of Hartford Capital Appreciation Fund and Hartford U.S. Stock Fund. Wellington Management Company, LLP is not an affiliate of the Manager. Black Creek Investment Management Inc. based in Toronto, Ontario is the portfolio subadviser of Hartford Global Leaders Fund, Hartford International Equity Fund and the equity component of Hartford Global Balanced Fund. Black Creek Investment Management Inc. is not an affiliate of the Manager. Greystone Managed Investments Inc. based in Regina, Saskatchewan is the portfolio subadviser of Hartford U.S. Dividend Growth Fund, Hartford Canadian Stock Fund, Hartford Canadian Dividend Growth Fund and Hartford Canadian Balanced Fund. Greystone Managed Investments Inc. is not an affiliate of the Manager. Beutel, Goodman & Company Ltd. based in Toronto, Ontario is the portfolio sub-adviser of Hartford Canadian Value Fund and Hartford Canadian Dividend Fund. Beutel, Goodman & Company Ltd. is not an affiliate of the Manager. As Manager, we are responsible for managing the overall business and dayto-day operations of the Funds and we provide or arrange for the provision of all general management and administrative services. We may and do engage third parties to perform certain services on our behalf. As Trustee, we hold title to each Fund s investments in trust for unitholders under the terms described in a declaration of trust. As Principal Portfolio Adviser we are responsible for the management of the investment portfolio of the Funds and we provide or arrange for the provision of all investment advice and portfolio management services. We may and do engage third party portfolio sub-advisers to perform certain services on our behalf. We are responsible for the investment advice and portfolio management services provided by our portfolio sub-advisers. The portfolio sub-advisers are third party companies retained by us to help manage the investment portfolio of the Funds. The portfolio sub-advisers provide day-to-day analysis, investment advice and portfolio management relating to the investment of the Funds assets. It may be difficult to enforce any legal rights against Hartford Investment Management Company and Wellington Management Company, LLP because they are foreign companies and their assets are located outside Canada. 8

13 Custodian State Street Trust Company Canada Toronto, Ontario Registrar Hartford Investments Canada Corp. Toronto, Ontario Auditors PricewaterhouseCoopers LLP Toronto, Ontario Independent Review Committee The custodian (or its sub-custodians) holds the investments of the Funds and keeps them safe to ensure that they are used only for the benefit of investors. The custodian is independent of Hartford Investments. As Registrar, we are responsible for maintaining or arranging for the maintenance of a record of the names of all unitholders of the Funds and a record of the number of units held. We may and do engage third parties to assist us in providing these services. The auditors are an independent chartered accounting firm. The firm examines the Funds financial statements and provides an opinion as to whether they fairly present the Funds financial position and results of operations in accordance with Canadian generally accepted accounting principles. In accordance with National Instrument Independent Review Committee for Investment Funds ( NI ), we have established an independent review committee ( IRC ) for the Funds. The IRC provides independent oversight and impartial judgment on conflicts of interest involving the Funds. It carries out the mandate prescribed in NI or otherwise required under applicable securities legislation. The IRC considers conflict of interest matters referred to it by the Manager and makes recommendations to the Manager on whether or not the proposed action achieves a fair and reasonable result for the Funds. The IRC is composed of five members, each of whom is independent within the meaning of NI The IRC prepares, at least annually, a report of its activities for unitholders of the Funds which will be available to any unitholders, at no cost, through SEDAR at or by writing to us at Hartford Investments Canada Corp., 121 King Street West, Suite 1810, Toronto, Ontario M5H 3T9 or by visiting our website at Additional information about the IRC, including the names of the members, is available in the Funds Annual Information Form. In certain circumstances, your approval may not be required under securities legislation to effect a merger of Funds or a change in the auditor of a Fund. Where the IRC is permitted under securities legislation to approve a merger of Funds in place of unitholders, you will receive at least 60 days written notice before the date of the merger. For a change in the auditor of a Fund, your approval will not be obtained, but you will receive at least 60 days written notice before the change takes effect. The Manager The Manager is an indirect, wholly-owned subsidiary of The Hartford Financial Services Group, Inc. ( The Hartford ) of Hartford, Connecticut. The Hartford and its subsidiaries, headquartered in Connecticut, are among the largest providers of both property and casualty insurance and life insurance products in the United States. Through its life insurance subsidiaries in the United States, The Hartford carries on life insurance business including the offering of investment products such as fixed and individual variable annuities, retail mutual funds, retirement plan services and investment management services. Portfolio Sub-Advisers Wellington Management Company, LLP ( Wellington Management ), is a Massachusetts limited liability partnership with principal offices based in Boston, Massachusetts. Wellington Management is a professional investment counselling firm which provides investment services to investment companies, employee benefit plans, endowments, foundations, and other institutions (including affiliates of the Manager). Wellington Management and its predecessor organizations have provided investment advisory services for over 70 years. As of December 31, 2009, Wellington Management had investment management authority with respect to approximately U.S. $537 billion in assets under management. Hartford Investment Management Company ( Hartford Investment Management ) is a professional money management firm based in Hartford, Connecticut, that provides services to investment companies, employee benefit plans, insurance companies and institutional accounts (including affiliates of the Manager). Hartford Investment Management is a wholly owned subsidiary of The Hartford. As of December 31, 2009, Hartford Investment Management had investment management authority with respect to approximately U.S. $144 billion 9

14 of assets under management for various clients. Hartford Investment Management is an affiliate of and connected with the Manager. Greystone Managed Investments Inc. ( Greystone ) is an investment management firm based in Regina, Saskatchewan, that provides services to corporate and public pension funds, investment funds, educational institutions, foundations, trusts and charities, religious orders, trade unions, hospitals and cultural organizations. As of December 31, 2009, Greystone had investment management authority with respect to approximately CDN $32 billion of assets under management for various clients. Beutel, Goodman & Company Ltd. ( Beutel Goodman ), a privately owned company based in Toronto, Ontario, is a professional investment counselling firm that provides services to pension funds, investment funds, other institutions and high net worth clients. Beutel Goodman has provided investment advisory services since As of December 31, 2009, Beutel Goodman had investment management authority with respect to approximately CDN $20 billion in assets under management. Black Creek Investment Management Inc. ( Black Creek ) is an investment management firm based in Toronto, Ontario that manages international equity portfolios for its clients. As of December 31, 2009, Black Creek had investment management authority with respect to approximately CDN $372 million in assets under management for various clients. The Manager has agreed to be responsible to the Funds for all advice and services provided to the Manager and each of the Funds by the respective portfolio sub-advisers. This responsibility cannot be waived. It may be difficult to enforce legal rights against Wellington Management and Hartford Investment Management because they are resident outside Canada and all or substantially all of their assets are located outside Canada. The Manager is responsible for the fees of the sub-advisers. Investments in Other Mutual Funds Managed by the Manager The Funds are permitted to invest in securities of other mutual funds, including those that may be managed by the Manager or an affiliate or associate of the Manager. If a Fund invests in securities of a mutual fund managed by the Manager or an affiliate or associate of the Manager, it will not vote those securities. Instead, the Manager may arrange for such securities to be voted by the beneficial unitholders of the applicable Fund. 10

15 PURCHASES, SWITCHES AND REDEMPTIONS The following pages tell you how to invest in the Funds, how much it will cost and other important details. Series of Units All of the Funds are organized as mutual fund trusts. Each of the Funds currently offers at least two series of units, namely Series A and Series B units, which are available to all investors. In addition, each Fund other than Hartford Canadian Money Market Fund offers an unlimited number of Series F units, which are typically only available to investors who participate in dealer fee-based programs. Each Fund, other than Hartford Portfolios and Hartford Canadian Money Market Fund, offers an unlimited number of Series I units, which are available to institutional investors and each Fund, other than Hartford Portfolios and Hartford Global High Income Fund, offers an unlimited number of Series D units, which are available to all investors. Each Fund, other than Hartford U.S. Stock Fund, Hartford Canadian Dividend Growth Fund, Hartford Global High Income Fund, Hartford Canadian Bond Fund, and Hartford Canadian Money Market Fund, offers an additional two series of units, namely the Series T(A) units and Series T(B) units. Series T(A) units and Series T(B) units are available to all investors, subject to certain minimum investment requirements and are designed for investors seeking regular monthly cash flows from a Fund. Hartford Canadian Money Market Fund also offers an unlimited number of units of an additional four series: DCA Series A units, DCA Series B units, DCA Series D units, DCA Series F units, issuable in an unlimited number of versions of each such series. DCA units are available to all investors who participate in a Hartford Dollar Cost Averaging Advantage Program (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). Series Closures Effective May 9, 2008, Series D units of all of the Funds and DCA Series D units of Hartford Canadian Money Market Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plan established prior to May 9, 2008 and automatically reinvested distributions. Purchase Price Your choice of series of units will require you to pay different fees and expenses, will affect the amount of compensation paid to your Dealer (see Purchase Options, Fees and Expenses and Dealer Compensation below) and will affect the purchase price you pay for your units. When you buy units in a Fund, you buy them at the net asset value ( NAV ) of the unit, calculated as of the day of your purchase, as long as we receive your purchase request in good order prior to 4 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day. If we receive your order after that time, we will process your order as of the next business day. The NAV per unit is the basis for all purchases, redemptions and transfers (also sometimes referred to as switches) of units and for the reinvestment of distributions. We calculate a separate NAV for each series of units of a Fund. Generally speaking, the NAV per unit of each series is calculated by: taking the proportionate share of the assets of the Fund allocated to that series; subtracting the expenses of that series and the proportionate share of the common expenses of the Fund allocated to that series; and dividing the resulting number by the total number of units in that series held by investors. Purchase of Units Units of the Funds are offered for sale on a continuous basis in all of the provinces and territories of Canada through registered dealers at a price equal to their NAV in the manner and at the time described above (we are not licensed to sell units of the Funds directly to you). We reserve the right, from time to time, to close each Fund or series to new investors or new purchases. A Fund or series that has been closed may be reopened for investment at our discretion. Any closing of a Fund or series will not impact redemption rights of unitholders. The units of the Funds have not been qualified for sale in any jurisdiction outside Canada. Purchases of units outside Canada or by or on behalf of persons located outside Canada are not permitted where the purchase would violate the laws of the jurisdiction in which the registered or beneficial purchaser is located. Only those series of DCA units of Hartford Canadian Money Market Fund specified from time to time in this simplified prospectus (as it may be amended) are available for purchase. The Fund may, at any time, cease accepting subscriptions for a particular series of DCA units. See Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program and Part B - Specific Information About Each of the Mutual Funds Described in this Document Hartford Canadian Money Market Fund Description of Securities Offered DCA Units. Hartford Canadian Money Market Fund may redeem DCA units purchased by an investor (with no redemption or sales charges) at their then net asset value if Hartford Canadian Money Market Fund has not received the applicable DCA Program instructions within five (5) business days of the initial issuance of such units (see Optional Services and the DCA Program ). 11

16 Minimum Investments Except as described below, the minimum initial investment in units of a Fund is $500 and the minimum amount of each subsequent purchase of units of a Fund is $50. The minimum investment in units of a Fund under a systematic investment program is $50 per purchase. Under a systematic investment program, the minimum initial investment may be waived. The minimum initial investment in Series T(A) units and Series T(B) units of any applicable Fund is $10,000 and the minimum initial investment in any series of units of any Hartford Portfolio is $25,000. The minimum initial investment and minimum subsequent investment in DCA units of Hartford Canadian Money Market Fund is $5,000. For illustration purposes, the minimum initial investment and subsequent investment requirements are set forth in the following table: Minimum Initial Investment Minimum Subsequent Investment Hartford Portfolios $25,000 $ 50 DCA units of Hartford Canadian Money Market Fund $ 5,000 $5,000 Series T(A) and Series T(B) units of the Funds (excluding Hartford Portfolios) $10,000 $ 50 Series A, Series B, Series D and Series F units of the Funds (excluding Hartford Portfolios) $ 500 $ 50 We may waive these minimum investment thresholds at any time in our sole discretion. Purchase Options The sales charges you pay depend on the series of units purchased and are described below: SeriesAandDCASeriesA A commission negotiated between you and your dealer not exceeding 5% (2% for Series A units of Hartford Canadian Money Market Fund) of the total amount (including commissions) paid by you. This is equivalent to a maximum of 5.26% of the net amount invested by you (2.04% for Series A units of Hartford Canadian Money Market Fund). Any DCA Series A units redeemed (including units of other Funds issued as a result of the transfers of DCA units) within twelve (12) months of the termination of the applicable DCA Program are subject to a DCA early redemption charge (see Fees and Expenses Payable Directly by You DCA Early Redemption Charge ). Any such commission will be returned to an investor whose DCA units are redeemed for failure to provide the applicable DCA Program instructions (see Optional Services and the DCA Program - Hartford Dollar Cost Averaging Advantage Program ). SeriesBandDCASeriesB You have three different options when purchasing Series B units and DCA Series B units: DSC Option: A contingent deferred sales charge at the time of redemption if redeemed within six years from the date of investment (the DSC Option ); or Low Load L3 Option: A contingent deferred sales charge at the time of redemption if redeemed within three years from the date of investment (the Low Load L3 Option ); or Low Load L1 Option: A contingent deferred sales charge at the time of redemption if redeemed within two years from the date of investment (the Low Load L1 Option ). Under these purchase options, the entire amount of your purchase order is invested in units at a price equal to their NAV. The sales commission is paid by us to the dealer without being deducted from your purchase order. However, units purchased on such a basis are subject to redemption charges paid to us, if redeemed within the applicable six, three or two years from the date of investment, in the amounts shown in the table under the heading Fees and Expenses Payable Directly by You Redemption Fees below. The management fee charged in respect of Series B units and DCA Series B units is higher than that charged in respect of the Series A units and DCA Series A units to compensate the Manager for funding such up front sales commissions. Series F: This series of units is typically only available to investors who participate in fee-based programs through their dealer. Participants in these programs are subject to periodic asset-based fees by their dealer rather than commissions on each transaction. Hartford Investments may also make these units available, generally through dealers, to any other investor for whom Hartford Investments does not incur distribution costs. If an investor chooses to withdraw from a fee-based program, the Series F units held by an investor may be either redeemed or switched to an equivalent value of Series A units or Series B units of a Fund subject to applicable sales or redemption fees or charges (see How to Transfer Units Between Funds and How to Transfer Units Between Series of the Same Fund ) or minimum investment requirements (see Purchases, Switches and Redemptions Minimum Investments ). Series I: This series of units is a special purpose series not sold to the general public. Series I units are generally for institutional investors who meet a certain minimum investment threshold and who have entered into a Series I Subscription Agreement with Hartford Investments. The minimum investment threshold could vary for institutional accounts that are expected to grow their investment significantly within a period of time acceptable to Hartford Investments. No management 12

17 fees are charged to the Funds with respect to Series I units and instead, each Series I investor negotiates a separate fee that is paid directly to Hartford Investments. There are no sales commissions payable to dealers on the sales of these Series I units. Series T(A): A commission negotiated between you and your investment professional not exceeding 5% of the total amount (including commissions) paid by you. This is equivalent to a maximum of 5.26% of the net amount invested by such unitholder. Series T(A) units are available to all investors, subject to certain minimum investment requirements. Series T(A) units are designed for investors seeking regular monthly cash flows from a Fund. Monthly distributions for each Fund are expected to consist of return of capital, which can be paid in cash or reinvested in additional units at the option of the unitholder. Series T(A) units are not generally recommended for use in registered plans. If you hold Series T(A) units in a registered plan, any distributions may be reinvested in additional units. Series T(B): You have three different options when purchasing Series T(B) units: DSC Option: A contingent deferred sales charge at the time of redemption if redeemed within six years from the date of investment (the DSC Option ); or Low Load L3 Option: A contingent deferred sales charge at the time of redemption if redeemed within three years from the date of investment (the Low Load L3 Option ); or Low Load L1 Option: A contingent deferred sales charge at the time of redemption if redeemed within two years from the date of investment (the Low Load L1 Option ). Under these purchase options of Series T(B) units, the entire amount of your purchase order is invested in units at a price equal to their NAV. The sales commission is paid by us to the dealer without being deducted from your purchase order. However, units purchased on such a basis are subject to redemption charges paid to us, if redeemed within the applicable six, three or two years from the date of investment, in the amounts shown in the table under the heading Fees and Expenses Payable Directly by You Redemption Fees below. The management fee charged in respect of Series T(B) units is higher than that charged in respect of the Series T(A) units to compensate the Manager for funding such up front sales commissions. Series T(B) units are available to all investors, subject to certain minimum investment requirements. Series T(B) units are designed for investors seeking regular monthly cash flows from a Fund. Monthly distributions for each Fund are expected to consist of return of capital, which can be paid in cash or reinvested in additional units at the option of the unitholder. Series T(B) units are not generally recommended for use in registered plans. If you hold Series T(B) units in a registered plan, any distributions may be reinvested in additional units. Placing Purchase Orders Units of a Fund may be purchased by submitting a purchase order to a registered dealer. Purchase orders for units of any series of DCA units of Hartford Canadian Money Market Fund must be subsequently followed by DCA Program instructions (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). Execution of Purchase Orders Detailed procedures for processing purchase orders are contained in the Funds Annual Information Form. Please see page 1 for information about how you can obtain the Fund s Annual Information Form. Purchase orders are priced when the Fund has received the order, subject to settlement. Purchase orders received by a Fund prior to 4:00 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day are priced using the net asset value per unit determined on that day. Purchase orders received by a Fund after 4:00 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day or at any time on a non-business day are priced using the net asset value per unit determined on the next business day. Each Fund reserves the right to reject any order for the purchase of units within one business day of receipt of the order. Any monies received with that order will be immediately refunded. DCA units purchased by an investor (with no redemption or sales charges) are redeemed at their then net asset value if we have not received the applicable DCA Program instructions within five (5) business days of the initial issuance of such units (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). The Funds do not issue a certificate when units of a Fund are purchased. A confirmation of each purchase of units is sent to a unitholder shortly after the applicable settlement date. Unitholders will be provided with a regular statement showing how many units are owned by the unitholder and their value. How to Transfer Between the Funds/Series In certain circumstances, you can redeem units in one Fund and use the proceeds to buy units in another Fund (or, in certain circumstances, units of another series of the same Fund). This is called transferring or switching (or redesignating). There may be applicable sales, transfer and/or redemption fees or charges (see Fees and Expenses Payable Directly by You ) or minimum investment requirements (see Purchases, Switches and Redemptions Minimum Investments ). Your dealer may request that you transfer or redesignate units that are 13

18 subject to redemption fees or charges into units that are subject to sales charges. It is the Manager s expectation that a dealer making such a request will act in accordance with regulations of the Mutual Fund Dealers Association of Canada or Investment Industry Regulatory Organization of Canada, as appropriate, including obtaining your prior consent to such transfers. Certain transfers may result in an increased service fee or trailing commission paid to qualified dealers (see Dealer Compensation Service Fees ). How to Transfer Units Between Funds Through your dealer you may, in certain circumstances, transfer all or part of your units of a series of a Fund into units of a series of another Fund at their respective net asset values per unit (subject to applicable fees or charges and minimum investment requirements). The transfer of units between Funds may result in you realizing a capital gain or loss for tax purposes. See Income Tax Considerations for Investors. Subject to the terms of the series closures noted on the cover page, the following transfers of all or part of your units of a Fund into units of another Fund are the only permitted transfers. We may change these transfer rules at any time. For any of these permitted transfers there may be applicable transfer fees (see Fees and Expenses Payable Directly by You Transfer Fees ) and minimum investment requirements (see Purchases, Switches and Redemptions Minimum Investments ) and, as specified below, there may be sales or redemption fees or charges when transferring Series B units, Series F units or Series T(B) units. Transferring Series A Units Between Funds You can transfer Series A units of a Fund into Series A units, Series F units or Series T(A) units of another Fund at their respective net asset values per unit. For any transfer into Series F units of another Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Transferring Series B Units Between Funds Although you can transfer Series B units of a Fund into Series A units, Series B units, Series F units, Series T(A) units or Series T(B) units of another Fund at their respective net asset values per unit, in order to avoid unnecessary redemption fees, Series B units of a Fund should only be transferred into Series B units or Series T(B) units of another Fund. Series B units or Series T(B) units of a Fund issued on such transfer will continue to be subject to the redemption charges that applied to the original units, including upon the occurrence of a change in the fundamental investment objective or the termination of the Fund. If you transfer Series B units of a Fund into Series A units, Series F units or Series T(A) units of another Fund, you will have to pay a redemption fee (see Fees and Expenses Payable Directly by You ) except if you have held your Series B units for at least the six, three or two years applicable to the redemption charges that applied to the original units or if you use your free annual withdrawal amount applicable to the transfer of Series B units (see Purchases, Switches and Redemptions 10% Free Redemption Entitlement ). For any transfer into Series F units of another Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Transferring Series D Units Between Funds You can transfer Series D units of a Fund into Series A units, Series F units or Series T(A) units of another Fund at their respective net asset values per unit. For any transfer into Series F units of another Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Transferring DCA Units Between Funds DCA Series A units can be transferred into Series A units or Series T(A) units of another Fund at their respective net asset values per unit (see Optional Services and the DCA Program ) in accordance with the DCA Program. Similarly, DCA Series B units can be transferred into Series B units or Series T(B) units of another Fund and DCA Series F units can be transferred into Series F units of another Fund, each at their respective net asset values per unit, in accordance with the DCA Program. Units of a Fund issued on a transfer of DCA units (including pursuant to the DCA Program) will continue to be subject to the redemption charges that applied to the original units, including upon the occurrence of a change in fundamental investment objectives or termination of the Fund. Transferring Series F Units Between Funds You can transfer Series F units of a Fund into Series A units, Series B units, Series F units, Series T(A) units or Series T(B) units of another Fund at their respective net asset values per unit. A transfer of Series F units of a Fund into Series A units, Series B units, Series F units, Series T(A) units or Series T(B) units of another Fund will be treated on the same basis as an initial purchase of such latter units such that sales charges or redemption fees will be applicable but no transfer fees will be charged (see Fees and Expenses Payable Directly by You ). Transferring Series I Units Between Funds You can transfer Series I units of a Fund into Series I units of another Fund at their respective net asset values per unit. Transferring Series T(A) Units Between Funds You can transfer Series T(A) units of a Fund into Series A units, Series F units or Series T(A) units of another Fund at their respective net asset values per unit. For any transfer into Series F units of another Fund you will be required to 14

19 meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Transferring Series T(B) Units Between Funds Although you can transfer Series T(B) units of a Fund into Series A units, Series B units, Series F units or Series T(A) units of another Fund at their respective net asset values per unit, in order to avoid unnecessary redemption fees, Series T(B) units of a Fund should only be transferred into Series T(B) units or Series B units of another Fund. Series T(B) units or Series B units of a Fund issued on such transfer of units will continue to be subject to the redemption charges that applied to the original units, including upon the occurrence of a change in the fundamental investment objective or the termination of the Fund. If you transfer Series T(B) units of a Fund into either Series A units, Series F units or Series T(A) units of another Fund at their respective net asset values per unit, as noted above, you will have to pay a redemption fee (see Fees and Expenses Payable Directly by You ) except if you have held your Series T(B) units for at least the six, three or two years applicable to the redemption charges that applied to the original units or if you use your free annual withdrawal amount applicable to the transfer of Series T(B) units (see Purchases, Switches and Redemptions 10% Free Redemption Entitlement ). For any transfer into Series F units of another Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). How to Transfer Units Between Series of the Same Fund Transfers of units between series of the same Fund are effected as redesignations. In certain circumstances, you may redesignate through your dealer units of one series into units of another series of the same Fund. A redesignation of units between series of the same Fund does not necessarily result in the unitholder receiving an equal number of units of the newly held series compared to the number of units originally held, since different series of the same Fund have different NAVs. However, you will receive units of the new series in an equal dollar value to the value of your original units. A redesignation of units between series of the same Fund does not result in a capital gain or capital loss. See Income Tax Considerations for Investors. Subject to the series closures noted on the cover page, the following redesignations of all or part of your units of one series of a Fund into units of another series of the same Fund are the only permitted redesignations. We may change these redesignation rules at any time. For any of these permitted redesignations, no transfer fee will apply but there may be applicable minimum investment requirements (see Purchases, Switches and Redemptions Minimum Investments ) and a sales charge or redemption fee may be applicable when redesignating Series B units, Series F units or Series T(B) units. Redesignating Series A Units Between Series of the Same Fund You can redesignate Series A units of a Fund into Series F units or Series T(A) units of the same Fund at their respective net asset values per unit. For any redesignation into Series F units of the same Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Redesignating Series B Units Between Series of the Same Fund You can redesignate Series B units of a Fund into Series T(B) units of the same Fund at their respective net asset values per unit. Accordingly, the redemption charges that applied to the original Series B units would continue to apply to the Series T(B) units. You can also redesignate Series B units of a Fund into either Series A units, Series F units or Series T(A) units of the same Fund at their respective net asset values per unit provided no redemption fees would be applicable on a redemption of such Series B units at the time of the redesignation (see Fees and Expenses Payable Directly by You ). Accordingly, only if you have held your Series B units for at least the six, three or two years applicable to the redemption charges that applied to the original units or if the free annual withdrawal amount is then applicable to the Series B units to be redesignated (see Purchases, Switches and Redemptions 10% Free Redemption Entitlement ) can you redesignate Series B units of a Fund into either Series A units, Series F units or Series T(A) units of the same Fund at their respective net asset values per unit. For any redesignation into Series F units of the same Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Redesignating Series D Units Between Series of the Same Fund You can redesignate Series D units of a Fund into Series A units, Series T(A) units or Series F units of the same Fund at their respective net asset values per unit. For any redesignation into Series F units of the same Fund you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Redesignating Series F Units Between Series of the Same Fund You can redesignate Series F units of a Fund into Series A units, Series B units, Series T(A) units or Series T(B) units of the same Fund at their respective net asset values per unit. A redesignation of Series F units of a Fund into Series A units, Series B units, Series T(A) units or Series T(B) units of the same Fund will be treated on the same basis as an initial purchase of such units and thus sales charges or redemption fees will be applicable (see Fees and Expenses Payable Directly by You ). 15

20 Redesignating Series T(A) Units Between Series of the Same Fund You can redesignate Series T(A) units of a Fund into either Series A units or Series F units of the same Fund at their respective net asset values per unit. For any redesignation into Series F units of the same Fund, you will be required to meet the fee-based program requirements established by your dealer (see Purchase Options Series F units ). Redesignating Series T(B) Units Between Series of the Same Fund You can redesignate Series T(B) units of a Fund into Series B units of the same Fund at their respective net asset values per unit. Accordingly, the redemption charges that applied to the original Series T(B) units would continue to apply to the Series B units. You can also redesignate Series T(B) units of a Fund into either Series A units, Series F units or Series T(A) units of the same Fund at their respective net asset values per unit, provided no redemption fees would be applicable on a redemption of such Series T(B) units at the time of the transfer (see Fees and Expenses Payable Directly by You ). Accordingly, only if you have held your Series T(B) units for at least the six, three or two years applicable to the redemption charges that applied to the original units or if the free annual withdrawal amount is then applicable to the Series T(B) units to be redesignated (see Purchases, Switches and Redemptions 10% Free Redemption Entitlement ) can you redesignate Series T(B) units of a Fund into either Series A units, Series F units or Series T(A) units of the same Fund at their respective net asset values per unit. For any redesignation into Series F units of the same Fund you will be required to meet the feebased program requirements established by your dealer (see Purchase Options Series F units ). Transfer Procedures The following procedures apply to the processing of transfer and redesignation orders. You or your authorized representatives may place an order through a registered dealer. Units of the Fund are transferred into units of the other Fund (or redesignated into units of another series of the same Fund) based on the applicable respective net asset values of such units. Orders received prior to 4:00 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day will be priced using the net asset value per unit determined on that day. Orders received after 4:00 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day or at any time on a non-business day will be priced using the net asset value per unit determined on the next business day. Excessive Trading (Short-term Trading) Each Fund is intended to be a long-term investment vehicle and is not designed to provide investors with a means of speculating on short-term market movements or fluctuations. Investors who engage in excessive transfer or redemption activity in and out of a Fund (commonly referred to as market timing ) generate additional costs which are borne by all of the Fund s unitholders. As well, such activities can interfere with a Fund s orderly investment management as the Fund may be required to sell portfolio assets to fund redemptions arising from market timing. Such sales may be at unfavourable times and/or impede the use of long-term investment strategies which may harm investment performance. In order to address these concerns, the Manager has established policies and procedures designed to monitor, detect, and deter excessive trading. The Manager reserves the right to reject any transfer or purchase request that is reasonably determined to be disruptive to efficient portfolio management, either because of market timing of the investment or previous excessive trading by the unitholder. See the Funds Annual Information Form for more information. How to Redeem the Funds Except as described below, and subject to a minimum partial redemption amount of $50, a unitholder or his authorized representatives may request that a Fund redeem all or any part of the unitholder s units at any time by delivering a written order to do so to the Fund or to a registered dealer for delivery to the Fund. DCA units, may be redeemed pursuant to transfers/switches under the DCA Program. In all other cases, if you redeem (partially or in full) your DCA units prior to the end of your six month or twelve month DCA Program or within 12 months following the end of your DCA Program, you will be deemed to have terminated your DCA Program early and will be subject to a DCA early redemption charge. The termination of the DCA Program as a result of a partial redemption will result in the full redemption of DCA units which will be subject to a DCA early redemption charge. The original redemption request must be signed by all authorized accountholders. The Fund may require the signature(s) on any redemption order to be guaranteed by a Canadian chartered bank or trust company or by any member firm of a recognized stock exchange in Canada or by another guarantor acceptable to the Fund. The Fund may also require evidence that the person signing a redemption request has the authority to do so. There may be redemption fees payable upon a redemption of units (see Fees and Expenses Payable Directly by You ), unless the redemption is made pursuant to the 10% free redemption entitlement noted below. 10% Free Redemption Entitlement Unitholders of Series B units, Series T(B) units or DCA Series B units that would otherwise be subject to applicable redemption fees are entitled to a free annual withdrawal equal to 10% of the sum of: (i) the number of units held by the unitholder in a particular Fund as of December 31 in the 16

21 preceding year; and (ii) the number of units of that particular Fund acquired by the unitholder during the current calendar year. The portion eligible for the waiver of the deferred sales charge is reduced by the aggregate of the number of all units redeemed during each calendar year. Any unused portion is not carried forward to the next calendar year. For Series T(B) units, the Manager will deduct the amount of any cash distributions received by the unitholder from the unitholder s free redemption entitlement. Redemption charges continue to apply upon the occurrence of a change in the fundamental investment objective of a Fund or the termination of the Fund. Units of a target Fund issued pursuant to a DCA Program and any additional DCA units issued on account of Bonus Amounts payable by the Manager will be subject to the same deferred sales charge as initially applicable to the DCA units in respect of which such units are issued (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). The redemption charge will be deducted from the aggregate net asset value of the units being redeemed and will be paid to the Manager. Execution of Redemption Orders Detailed procedures for processing redemption orders are contained in the Funds Annual Information Form. Please see page 1 for information about how you can obtain the Fund s Annual Information Form. Redemption orders are priced when the Fund has received the order, subject to settlement. Redemption orders received by a Fund prior to 4:00 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day are priced using the net asset value per unit determined on that day. Redemption orders received by a Fund after 4:00 p.m. (Toronto time) (or such other time the Toronto Stock Exchange closes) on a business day or at any time on a non-business day are priced using the net asset value per unit determined on the next business day. Redemption by a Fund Each Fund reserves the right to redeem the units of such Fund in a unitholder s account at their net asset value if at any time the aggregate net asset value of the units (with the exception of units purchased under a systematic investment program) is less than $500. Unitholders will be notified that the value of the units in their account for a particular Fund is less than $500 and allowed 30 days to make an additional investment to increase the aggregate net asset value of the units for that Fund in their account to not less than $500 before the redemption is processed. Each Fund also reserves the right to redeem units in a unitholder s account at their net asset value if the Fund at any time becomes aware that the original purchase of the units was made by or on behalf of a person located outside the jurisdictions in which the sale of units of the Funds is qualified by this simplified prospectus in violation of the laws of the jurisdiction in which the registered or beneficial purchaser was then located. Hartford Canadian Money Market Fund may redeem DCA units (with no redemption or sales charges) at their then net asset value if the Fund has not received the appropriate DCA Program instructions within five (5) days of the initial issuance of such units (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). Suspending Your Right to Redeem Units On rare occasions, we may temporarily suspend your right to redeem your Fund units and postpone paying your sale proceeds. We can only do this without regulatory approval if normal trading is suspended on any exchange on which securities or derivatives that make up more than half of a Fund s total assets by value are traded and these securities or derivatives aren t traded on any other exchange that is a reasonable alternative for the Fund. If we receive your order to redeem on a day when we ve suspended the calculation of net asset value per unit, you can withdraw your order before the end of the suspension period. Alternatively, you can redeem your units based on the net asset value per unit calculated on the first day after the suspension ends. 17

22 OPTIONAL SERVICES AND THE DCA PROGRAM The following plans are available to make it easier to buy and redeem units of the Funds. Any investor who purchases DCA units of Hartford Canadian Money Market Fund must participate in the Dollar Cost Averaging Advantage Program described below. To participate in a plan or program, contact your investment professional. Registered Tax Plans Registered plans receive special treatment under the Income Tax Act (Canada) (the Tax Act ). A key benefit is that you generally don t pay tax on the money you earn in these plans until you withdraw it (withdrawals from tax-free savings accounts are not taxable). In addition, contributions to a registered retirement savings plan are deductible from your taxable earnings up to your allowable limit. The following Hartford Investments registered tax plans are available: Registered Retirement Savings Plans (RRSPs) Registered Retirement Income Funds (RRIFs) Tax-Free Savings Accounts (TFSAs) Investors may establish a Hartford Investments RRSP, RRIF or TFSA (with a trust company appointed as trustee from time to time by the Manager) for the purpose of purchasing units of the Funds. Alternatively, units of the Funds may be purchased by the investor s own self-administered registered plan. Units of the Funds are qualified investments under the Tax Act for RRSPs, RRIFs, TFSAs and all other registered plans, as further described below under Income Tax Considerations for Investors. Investors are encouraged to consult their tax advisors for full details of the tax implications of establishing, contributing to, amending and terminating registered plans. Systematic Investment Program Purchasers may make systematic purchases of units of a Fund (other than DCA units of Hartford Canadian Money Market Fund) through pre-authorized payments made from his or her bank account on a monthly, bi-monthly, quarterly, semi-annual or annual basis at the net asset value per unit on the specified date of each such pre-authorized payment. The amount and frequency of each regular investment may be selected by the purchaser, subject to a minimum of $50 per purchase. There are no service charges associated with establishing a systematic investment program. The program may be terminated at any time upon notice to the Fund. All other fees and procedures in respect of purchases of units are applicable to investments under this program. Only a systematic investment program established prior to May 9, 2008 may continue to allow unitholders to make systematic purchases of Series D units and DCA Series D units of each applicable Fund. Systematic Withdrawal Program Unitholders may choose to establish a systematic withdrawal program to provide monthly, bi-monthly, quarterly, semiannual or annual cash payments through the automatic redemption of units (other than DCA units of Hartford Canadian Money Market Fund) subject to a minimum $50 per withdrawal. There are no charges under the systematic withdrawal program other than applicable redemption charges on Series B units and Series T(B) units (see Fees and Expenses Payable Directly by You Deferred Sales Charge ) and DCA early redemption charges, if applicable (see Fees and Expenses Payable Directly by You DCA Early Redemption Charge ). Unitholders may terminate the program at any time upon notice to the Fund. Units will be redeemed at their net asset value per unit on the specified date of each withdrawal under this program. If withdrawals are in excess of net income and net capital appreciation of the Fund attributable to such unitholder s units, such withdrawals will reduce or possibly exhaust such unitholder s original capital. Systematic Transfer Plan Unitholders may transfer a minimum of $50 worth of units to another Fund (other than from or to DCA units of Hartford Canadian Money Market Fund) on a monthly, bi-monthly, quarterly, semi-annual or annual basis. Unitholders may make changes to the target Fund, the frequency of the transfer and the amount to be transferred on three business days written notice to the Manager. Under the systematic transfer plan, the $25 fee for transfers in excess of four (4) per calendar year will not be charged. All other fees, restrictions and procedures are applicable to such transfers. Only a systematic transfer plan established prior to May 9, 2008 may continue to allow unitholders to transfer a minimum of $50 worth of units to Series D units of each applicable Fund (other than DCA Series D units of Hartford Canadian Money Market Fund). Hartford Dollar Cost Averaging Advantage Program Introduction What is dollar cost averaging? Dollar cost averaging is a widely recognized investment method of investing predetermined amounts of money on a regular basis over a period of time. By investing a fixed amount at regular set intervals over a period of time, the average cost paid per unit may potentially be reduced although the average cost paid per unit may also potentially be increased. This method of attempting to average down one s cost may be achieved by potentially purchasing more units at a lower price than the original investment. 18

23 What is the investment rationale of dollar cost averaging? Under dollar cost averaging, a fixed dollar amount is invested in units of a mutual fund at regular intervals (e.g. monthly) regardless of market conditions. If the price per unit rises, fewer units are purchased per period. Conversely, if the price per unit declines more units will be purchased per period. This method of investing is designed to benefit the investor over the long-term, although there is no guarantee that it will. Its value lies in the fact that it eliminates the investor s timing dilemma of deciding when to buy units. How does Hartford DCA Advantage Program work? Hartford Dollar Cost Averaging Advantage Program (which we refer to as the DCA Program or the DCA Advantage Program ) involves a systematic dollar cost averaging plan which offers an option of six or twelve month durations. As part of the DCA Program, the Manager has agreed to pay certain bonus yield amounts to DCA unitholders (see Bonus Amount Payments below). On a monthly basis, over the respective program period, substantially equal amounts (based on original investment amount in DCA units) will be transferred by redeeming DCA units of Hartford Canadian Money Market Fund (plus any earnings on such units and bonus amounts owing by the Manager) and, subject to the series closures noted on the cover page, purchasing units of one or more Funds (excluding Hartford Canadian Money Market Fund) (the Target Fund(s) ). The essence of the DCA Advantage Program is the utilization of DCA units for periodic funding of dollar cost averaging. The DCA Advantage Program is only available to purchasers of DCA units of Hartford Canadian Money Market Fund and each program is associated with a particular purchase of DCA units (i.e., once a DCA Advantage Program commences for an investor, additional investments in DCA units will not form part of the original program a new DCA Advantage Program is required for each investment in DCA units). What are versions of DCA units and their specified Advantage Yield Rate? Subject to the series closures noted on the cover page, DCA units of Hartford Canadian Money Market Fund are available in four series DCA Series A units, DCA Series B units, DCA Series D units and DCA Series F units. DCA units of each series are issued by versions of units, of which each version has attached a specified Advantage Yield Rate and a duration period (six month or twelve month). These rates reflect a stated yield above that expected to be generated by the units of Hartford Canadian Money Market Fund and the Manager has agreed to pay investors the difference between the yield generated by the DCA units and the specified Advantage Yield Rate. The Advantage Yield Rate may be changed at the sole discretion of the Manager, by ceasing to offer any additional units of the particular version of DCA units and by offering a new version of DCA units with a different specified Advantage Yield Rate by way of an amendment to this prospectus. DCA Program Systematic Transfers Series of Units Depending on the series of unit selected, and subject to the series closures noted on the cover page, systematic transfers under the DCA Program will take place from DCA Series A units of Hartford Canadian Money Market Fund to Series A units of the Target Fund(s) selected by an investor, or from DCA Series B units of Hartford Canadian Money Market Fund to Series B units of the Target Fund(s) selected by an investor, or from DCA Series D units of Hartford Canadian Money Market Fund to Series D units of the Target Fund(s) selected by an investor, or from DCA Series F units of Hartford Canadian Money Market Fund to Series F units of the Target Fund(s) selected by an investor. All such transfers must be to the corresponding series of units of the Target Fund(s). Series B units of a Fund issued on such transfer will continue to be subject to the redemption charges that applied to the original DCA Series B units. General The DCA Program is only applicable to investors who purchase DCA units. An investor who purchases DCA units must participate in the DCA Program by providing instructions (through the investor s investment professional) to the Manager to periodically switch or transfer on a monthly basis (for six or twelve months depending on the version) the DCA units of Hartford Canadian Money Market Fund so purchased into corresponding Series A, Series B, Series D or Series F units of one or more Target Fund(s) specified by the investor. DCA Program instructions may be provided pursuant to DCA Program forms or in such other manner as may be acceptable to the Manager. The DCA Program is intended to be a form of systematic transfer plan with the provision that unitholders can terminate the program at any time by redeeming their DCA units (subject to redemption charges). As well, a unitholder is permitted (through an investment professional) to alter the instructions as to the allocations with respect to the Target Fund(s) to which the subject DCA units are to be transferred/switched (provided that there can be no transfers/switches to units of Hartford Canadian Money Market Fund). DCA Program Conditions The DCA Program operates on either a six-month or twelvemonth basis depending on the corresponding version of DCA units purchased by the investor. Certain redemption charges apply for a period of twelve (12) months following the termination of the purchaser s applicable DCA Program (see Fees and Expenses Payable Directly by You ). Any purchaser of DCA units must provide instructions to the Manager within five (5) business days of the initial issuance of the applicable DCA units, failing which such units may be redeemed (with no redemption or sales charges) at their then net asset value. A separate DCA Program will apply to 19

24 each investment in DCA units such that subsequent investments will require the application of a new DCA Program. DCA Program Transfers The DCA Program is based on instructions provided by a purchaser of DCA units authorizing the Fund to effect prorated (based on the original investment amount) systematic monthly transfers/switches of the applicable DCA units (including any DCA units issued on an automatic reinvestment of distributions/payments in respect of such DCA units) to the corresponding series of units of the Target Fund(s) specified by the investor over the applicable DCA Program period (i.e., six or twelve months). The monthly transfers/switches shall be completed, at the then applicable net asset values per unit, on the last day of each month commencing in the month in which the applicable DCA Program instructions are received (except where DCA Program instructions are received after the third last business day of a month in which case the transfers/switches will commence in the following month). Where the last day of a particular month is not a business day, the applicable transfers/switches will occur on the next business day after month end. An investor may change the DCA Program at any time to change the identity or identities of the Target Fund(s) into which the DCA units are to be transferred/ switched and/or the allocation of such transfers/switches. On each such transfer/switch date under the investor s DCA Program, all amounts payable by the Fund on account of distributions in respect of the DCA units then held plus all amounts payable by the Manager under its DCA bonus yield obligations (see Bonus Amount Payments below) shall also be allocated to the purchase of units of the Target Fund(s) in the same proportions applicable to the scheduled transfer/switch of the applicable DCA units. An investor s DCA Program may be accelerated (and, as a result, terminated) at any time by transferring all of the applicable DCA units to units of the corresponding series of one or more of the other Funds, provided that no partial accelerated transfers/switches under a DCA Program may be made. An investor may also terminate a DCA Program at any time, in which case the remaining applicable DCA units will be redeemed and a DCA early redemption charge will be applied and for DCA Series B units, a deferred sales charge will also be applicable (see Fees and Expenses Payable Directly by You ). Bonus Amount Payments Each version of a DCA unit has an associated annualized Advantage Yield Rate (as specified in Part B: Specific Information About Each of the Mutual Funds Described in this Document Hartford Canadian Money Market Fund Description of Securities Offered DCA Units for Six Month Version 5 and Twelve Month Version 2 of each DCA series and as shall be included in a prospectus amendment for each future version of DCA units). These rates reflect a yield rate that may vary from that expected to be generated by the applicable version of DCA units of Hartford Canadian Money Market Fund. The Manager shall effect a daily calculation of the actual yield generated by the applicable DCA units (the Underlying Yield Rate ) as well as a daily calculation of the yield that would have been generated on such DCA units at the applicable Advantage Yield Rate (where the calculation of such latter yield will represent the daily yield, which if annualized, reflects the stated Advantage Yield Rate for a particular version of DCA units). The Manager will calculate the difference between the applicable Advantage Yield Rate and Underlying Yield Rate daily (the Rate Difference ) for each version of DCA units and, for each unithholder, will calculate daily an amount equal to: the product of the number of DCA units of the applicable series and version held (if any) by a unitholder, multiplied by the applicable Rate Difference (the Bonus Amount ). The Manager will maintain the Bonus Amount in respect of each DCA unitholder daily and will pay such amounts monthly, in arrears, by way of causing the issuance of units of the appropriate Target Fund(s) under the applicable DCA Program. The Bonus Amounts are for the benefit of individual DCA unitholders and are not payable to or for the benefit of the Target Fund. Such Bonus Amounts will be maintained and recorded outside of the Target Fund and therefore are not included as assets of the Target Fund and do not affect the Target Fund s NAVs. No Bonus Amounts will be paid in respect of DCA units redeemed by a Fund for failure by an investor to provide DCA Program instructions, save and except that at any month end, any accruals on account of Bonus Amounts in respect of DCA units that have not been so redeemed and that are not subject to a month end transfer/switch under a DCA Program, will be applied to the purchase/issuance of additional DCA units of the same version for the account of the investor. Any Bonus Amounts accrued for the benefit of a DCA unitholder but not yet applied to the purchase/issuance of units of the Target Fund(s) under the DCA Program shall be payable by the Manager at the time the unitholder s DCA Program is terminated. Units of a Target Fund issued pursuant to a DCA Program and any additional DCA Series B units issued on account of Bonus Amounts will be subject to the same deferred sales charge as initially applicable to the DCA Series B units in respect of which such units are issued (see Fees and Expenses Payable Directly by You ). Under the Declaration of Trust of Hartford Canadian Money Market Fund, the Manager has agreed to pay, and the Trustee has the right and obligation (on behalf of unitholders) to enforce payment of all such Bonus Amounts directly to the applicable unitholder. All such amounts will be applied, on behalf of an applicable unitholder, under the unitholder s DCA Program. Continuous or periodic investment plans such as the DCA Program neither assure a profit nor protect against loss in 20

25 declining markets. Because dollar cost averaging involves continuous investing regardless of fluctuating price levels you should carefully consider your financial ability to continue investing through periods of fluctuating prices. You should note that your investment in a DCA unit is not guaranteed, as the Advantage Yield Rate does not affect, or in any way guarantee, the value of a DCA unit. Receipt by unitholders of the Advantage Yield Rate applicable to one or more versions of a series of DCA units is contingent at all times on the Manager s ability to make such advantage yield payments. There can be no guarantee that the Manager will at all times be able to make such payments. The Advantage Yield Rate refers to the net income generated in respect of a DCA unit and not the value of such a unit. As a result, the maximum payable daily by the Manager under its Advantage Yield Rate obligations in respect of a particular DCA unit is the applicable daily rate multiplied by the prior day s NAVof such unit. Under the DCA Program, the Advantage Yield Rate is earned only on the DCA units outstanding from time to time and therefore is not earned on the entire original amount invested under the DCA Program due to regular transfers to the Target Fund(s) that will affect the daily accrual, lowering the program yield. 21

26 FEES AND EXPENSES The following table shows the fees and expenses you may have to pay if you invest in the Funds. You may have to pay some of these fees and expenses directly. The Funds may have to pay some of these fees and expenses, which will reduce the value of your investment in the Fund. Fees and Expenses Payable by the Funds Management Fees Each of the Series A units, Series B units, Series D units, Series F units, Series T(A) units and Series T(B) units have a different management fee and the management fees differ depending on the type of Fund. The DCA units of Hartford Canadian Money Market Fund have the same management fee except for DCA Series F units which have a different management fee. Management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). The following table shows the management fee as a percentage of average daily net asset value (per annum): (1) FUND MANAGEMENT FEE FOR: Series A Units Series B Units Series D Units Series F Units Series T(A) Units Series T(B) Units DCA Units other than DCA Series F Units DCA Series F Units Hartford Conservative Portfolio 1.75% 1.95% N/A 0.95% 1.75% 1.95% N/A N/A Hartford Balanced Portfolio 2.00% 2.20% N/A 1.00% 2.00% 2.20% N/A N/A Hartford Balanced Growth Portfolio 2.00% 2.20% N/A 1.00% 2.00% 2.20% N/A N/A Hartford Growth Portfolio 2.00% 2.20% N/A 1.00% 2.00% 2.20% N/A N/A Hartford U.S. Stock Fund 2.00% 2.20% 1.65% 1.00% N/A N/A N/A N/A Hartford Canadian Dividend Growth Fund 2.00% 2.20% 1.65% 1.00% N/A N/A N/A N/A Hartford Global High Income Fund 1.50% 1.65% N/A 0.95% N/A N/A N/A N/A Hartford Canadian Bond Fund 0.95% 1.45% 0.95% 0.75% N/A N/A N/A N/A Hartford Canadian Money Market Fund 0.75% 0.90% 0.75% N/A N/A N/A 0.75% 0.65% Hartford International Equity Fund 2.00% 2.20% N/A 1.00% 2.00% 2.20% N/A N/A All other Funds 2.00% 2.20% 1.65% 1.00% 2.00% 2.20% N/A N/A Operating Expenses Operating expenses of the Funds include and are not limited to: legal, audit, custodial, transfer agency, registration, regulatory filing and bank fees and expenses and costs relating to the IRC; (2) the costs of unitholder reports, proxies and prospectuses; administrative expenses, including salaries, rent and insurance costs; brokerage commissions and fees on portfolio transactions, income taxes (including withholding taxes), goods and services and sales taxes and capital taxes; 22

27 the costs of furnishing research data, clerical help, record keeping, unit pricing and the internal accounting services required by the Fund in the ordinary course of its operations; and the costs of processing, co-ordinating and supervising all other services required by the Fund. (3) Other than in respect of brokerage commissions and fees on portfolio transactions, and income and capital taxes, all operating expenses otherwise attributable to Series I units will be the responsibility of Hartford Investments. Notes: (1) Each Fund pays as an expense an aggregate annual management fee to Hartford Investments that is allocated among the series in accordance with their respective specified rates and net asset values. The fee is calculated and accrued daily and paid monthly. From this fee, the Manager is responsible for all investment management fees (including those of the portfolio subadvisers) as well as all fees and costs associated with dealer compensation programs pertaining to the offering and sale of units of the Funds and any advertising, marketing, sponsorship and promotional costs and expenses. The higher management fees charged in respect of the Series B units and Series T(B) units compensate the Manager for funding the up front sales commissions payable to registered dealers on the sale of Series B units and Series T(B) units. The management fees charged in respect of Series A units are higher than the management fees charged in respect of Series D units and Series F units to compensate the Manager for the higher service fees or trailer commissions payable to dealers in respect of Series A units (see Dealer Compensation Service Fees ). In some cases, we may waive our right to receive a portion of the management fees. We may reduce the management fee to selected unitholders (generally institutional investors or investors which meet predetermined asset levels within a series of a Fund) who are expected to make, over the long term, significant investments in units of the Funds. In effect, these investors receive a rebate for the management fees that apply to their units. We do this by reducing or rebating the management fee charged to the Fund and having the Fund pay out the amount of the reduction or rebate to these investors as a distribution. These are called management fee distributions. Management fee distributions (where applicable) will be calculated and credited daily and distributed semi-annually or on such other basis as the Manager may determine. Reduced management fees are determined by us in our sole discretion and may be changed at any time. (2) The expenses of the Funds IRC include the compensation payable to the members of the committee and, if applicable, the expenses incurred by the IRC in the course of its affairs, including insurance and the cost of outside advisors. The members of the committee are paid an annual retainer of $15,000 ($25,000 for the chair) and $1,500 for each meeting of the IRC that the member attends in excess of five meetings per year. The IRC acts in respect of all the Funds and the amount of their expenses are allocated to each Fund by the Manager on a proportionate basis. (3) In addition to the management fees payable to the Manager, the operating expenses incurred by or on behalf of a Fund with respect to all matters, other than as described in (1) above, are the direct responsibility of that Fund and will be paid, as applicable, to the Manager or other parties. Expenses that are only attributable to a particular series of units of a Fund will only be charged against such series. The Funds expect that all expenses of each Fund will be common to all series of units of each Fund, other than the management fees (inclusive of taxes thereon) and other expenses which the Manager determines are attributable only to one or more series, including, but not limited to, the expenses of holding meetings of the holders of only one series of units of a Fund and, in respect of Hartford Canadian Money Market Fund, incremental costs of administering the DCA Program. Each Fund is required to pay sales tax including federal goods and services tax ( GST ) on the fees that it pays to the Manager as well as on most other fees and expenses which it incurs, at the current rate of 5% of the amount of the fees and expenses. Effective July 1, 2010, each Fund will instead be required to pay federal harmonized sales tax ( HST ) on its fees and expenses. Other than in respect of brokerage commissions and fees on portfolio transactions, and income and capital taxes, all operating expenses otherwise attributable to Series I units will be the responsibility of the Manager. Fees in Respect of Investments in Other Mutual Funds Each of the Funds is permitted to invest some or all of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager, provided such investment is consistent with the Fund s investment objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. Where a Fund invests in securities of another mutual fund, there are fees and expenses payable by the other mutual fund in addition to the fees and expenses payable by the Fund. The following rules apply in respect of any investment by a Fund in another mutual fund: (a) no management fees or incentive fees are payable by the Fund that, to a reasonable person, would duplicate a fee payable by the other mutual fund for the same service; (b) no sales fees or redemption fees are payable by the Fund in relation to its purchase or redemptions of the securities of the other mutual fund if the other mutual fund is managed by the Manager or an affiliate or associate of the Manager; and (c) no sales fees or redemption fees are payable by the Fund in relation to its purchase or redemptions of securities of the other mutual fund that, to a reasonable person, would duplicate a fee payable by an investor in the Fund. 23

28 Maximum Aggregate Annual Management Fees and Expenses The maximum aggregate annual management fees and expenses attributable to Series B units, Series D units and DCA units of certain Funds (exclusive of brokerage commissions and fees on portfolio transactions, income taxes (including withholding taxes) and capital taxes) shall not exceed the percentages of the average daily net asset value of the particular series specified below. These fees and expenses cannot be increased without the prior approval of unitholders of the particular series. There are no maximums maintained on expenses with respect to any other series of units of any other Fund. The Manager is responsible for the expenses of Series I units of all the Funds (other than in respect of brokerage commissions and fees on portfolio transactions and income and capital taxes). In some cases, the Manager may waive its rights to receive a management fee and/or may voluntarily absorb a portion of the expenses attributable to a series of units of a Fund. Maximum Aggregate Annual Management Fees and Expenses* that may be charged without unitholder approval (expressed as a percentage of the average daily net asset value Name of Fund and Series of the particular series of units of a Fund) Hartford Canadian Bond Fund: Series A Not Applicable Series B 1.75% Series D 1.25% Series F Not Applicable Series I Not Applicable Hartford Canadian Money Market Fund: Series A Not Applicable Series B 1.15% Series D and all DCA Series 1.00% Hartford U.S. Dividend Growth Fund, Hartford Canadian Value Fund, Hartford Canadian Dividend Fund, Hartford Global Balanced Fund and Hartford International Equity Fund: Series A Series B Series D Series F Series I Series T(A) Series T(B) Hartford Canadian Dividend Growth Fund: Series A Series B Series D Series F Series I Hartford Global High Income Fund: Series A Series B Series F Series I Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Hartford U.S. Stock Fund: Series A Not Applicable Series B 2.60% Series D 2.00% Series F Not Applicable Series I Not Applicable 24

29 Maximum Aggregate Annual Management Fees and Expenses* that may be charged without unitholder approval (expressed as a percentage of the average daily net asset value Name of Fund and Series of the particular series of units of a Fund) Hartford Capital Appreciation Fund, Hartford Global Leaders Fund, Hartford Canadian Stock Fund, Hartford Canadian Balanced Fund: Series A Not Applicable Series B 2.60% Series D 2.00% Series F Not Applicable Series I Not Applicable Series T(A) Not Applicable Series T(B) Not Applicable Hartford Portfolios: Series A Series B Series F Series T(A) Series T(B) Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Notes: * Plus brokerage commissions and fees on portfolio transactions, income taxes (including withholding taxes) and capital taxes. 25

30 Changes in Expenses of the Funds Except as described below, unitholder approval is required before the basis of the calculation of the fees or other expenses that are charged to a Fund (or the Manager on behalf of the Fund) or directly to its unitholders is changed in a way that could result in an increase in charges to a Fund (or the Manager on behalf of the Fund) or its unitholders. Such approval is required to be obtained at a meeting of unitholders convened for such purpose. Unitholder approval is not required before the basis of the calculation of the fees or expenses that are charged to a Fund (or the Manager on behalf of the Fund) or its unitholders is changed in a way that could result in an increase in charges to a Fund (or the Manager on behalf of the Fund) or its unitholders if the Fund is at arm s length to the person or company charging the fees or expenses, provided unitholders are given notice of at least sixty days prior to the effective date of any such change in the basis of the calculation of any fees or expenses which could result in an increase in charges to a Fund (or the Manager on behalf of the Fund) or its unitholders. Fees and Expenses Payable Directly by You Sales Charges Series A and DCA Series A The sales charge can be from 0% to 2% on Series A units of Hartford Canadian Money Market Fund (0% to 5% on DCA Series A units of Hartford Canadian Money Market Fund) and 0% to 5% on all other Funds. (1) There may be redemption charges for DCA units (see Redemption Fees ). Series B and DCA Series B There are no sales charges if you choose to buy Series B units (including DCA Series B units of Hartford Canadian Money Market Fund). There may be redemption charges (see Redemption Fees ). Series D and DCA Series D The sales charge can be from 0% to 2% on Series D units of Hartford Canadian Money Market Fund (0% to 5% on DCA Series D units of Hartford Canadian Money Market Fund) and 0% to 5% on all other Funds. (1) There may be redemption charges for DCA units (see Redemption Fees ). Series F and DCA Series F There are no sales charges if you choose to buy Series F units and DCA Series F units. If you choose to buy Series F units and DCA Series F units through a dealer fee-based program, you will pay to your dealer periodic asset-based fees rather than commissions on each transaction. Series I There are no sales charges if you choose to buy Series I units. Series T(A) The sales charge can be from 0% to 5% on Series T(A) units. (1) Series T(B) Transfer Fees Redemption Fees Deferred Sales Charge (2) There are no sales charges if you choose to buy Series T(B) units. There may be redemption charges (see Redemption Fees ). A negotiable amount not exceeding 2% of the net asset value of the units being transferred from one Fund into units of another Fund is payable by you to your dealer, save and except for permitted transfers of DCA units of Hartford Canadian Money Market Fund and save and except for permitted transfers of Series F units into Series A units, Series B units, Series D units, Series T(A) units or Series T(B) units of another Fund, which transfers are treated on the same basis as an initial purchase of units of the series being transferred to such that sales charges or redemption fees will be applicable. In the case of permitted transfers of other units of Hartford Canadian Money Market Fund to Series A or Series D units of other Funds, a sales charge negotiated between you and your investment professional not exceeding 5% of the net asset value of the units being transferred is payable by you to your dealer in lieu of a transfer fee. (For transfers of units of Hartford Canadian Money Market Fund which were issued on the transfer of units of other Funds, the 2% maximum transfer fee will apply.) Each transfer (other than transfers of DCA units of Hartford Canadian Money Market Fund) in excess of four (4) per calendar year may incur an additional $25.00 charge at the discretion of the Fund, except if transferred under a systematic transfer plan. You ll pay a deferred sales charge if you choose to buy Series B units, Series T(B) units or DCA Series B units ( DSC units ) and you redeem your DSC units (including units of other Funds issued as a result of the transfer of such units) within six years of buying the original DSC units under the DSC Option, within two years of buying the original DSC units under the Low Load L1 Option or within three years of buying the original DSC units under the Low Load L3 Option. The charge is based on the original cost of your units and how long you held them. We deduct the charge from the value of units you redeem. The charge is paid to us. The table below shows the deferred sales charge schedule applicable to DSC units. 26

31 Fees and Expenses Payable Directly by You (continued) If redeemed during the following period after issue Redemption charge as % of cost of purchase of Series B Units, Series T(B) Units or DCA Series B Units under: DSC Option Low Load L1 Option Low Load L3 Option During the 1st year 6.0% 2.0% 4.0% During the 2nd year 5.0% 1.5% 3.0% During the 3rd year 4.0% Nil 2.0% During the 4th year 3.0% Nil Nil During the 5th year 2.0% Nil Nil During the 6th year 1.0% Nil Nil Thereafter Nil Nil Nil DCA Early Redemption Charge Hartford Registered Tax Plan Fees Systematic Investment Program NSF Chequing Fee Systematic Withdrawal Program Systematic Transfer Plan Courier/Wire Charges If you purchase any series of DCA units of Hartford Canadian Money Market Fund and redeem your units (including units of the Target Funds issued as a result of the transfer of DCA units) within twelve (12) months of the termination of the applicable DCA Program, you will pay a DCA early redemption charge of 1.5% (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ) of the aggregate of the original cost of your DCA units plus any distributions received from Hartford Canadian Money Market Fund on such units and any Bonus Amounts that were credited to you by the Manager in respect of such DCA units (see Part B: Specific Information About Each of the Mutual Funds Described in this Document Hartford Canadian Money Market Fund Description of Securities Offered DCA Units ). For purposes of this charge, we do not treat successive transfers to other Funds (excluding Hartford Canadian Money Market Fund) as redemptions. We deduct this charge from the value of units you redeem. The charge is paid to us. No annual administration fee. No annual administration fee. Charges levied by a bank or other financial institution for cheques returned to a Fund as NSF. No annual administration fee. Redemption fees may apply. Under the systematic transfer plan and the DCA Program, the $25 fee for transfers in excess of four (4) per calendar year will not be charged. All other fees and procedures are applicable to such transfers. If you request courier delivery or wire order of your redemption proceeds, we may charge for such services. Notes: (1) You may have to pay a sales charge if you choose to buy Series A or Series T(A) units. You and your investment professional negotiate the amount you pay. We deduct the sales charge from the amount you invest and pay it to your dealer as a commission. (2) Notwithstanding the foregoing, unitholders are entitled to a 10% free annual withdrawal (see Purchases, Switches and Redemptions 10% Free Redemption Entitlement ). 27

32 Impact of Sales Charges The table below shows the fees you would have to pay if you bought units of one of the Funds under our different purchase options. It assumes that: You invested $1,000 in units of the Fund and redeemed all of your units immediately before the end of one, three, five or ten years. The sales charge under the Series A and Series T(A) option is 5%. The deferred sales charge under the Series B and Series T(B) option applies only if you redeem your Series B units or Series T(B) units within six years of buying them under the DSC Option, within two years of buying them under the Low Load L1 Option or within three years of buying them under the Low Load L3 Option. See Fees and Expenses for the deferred sales charge schedule. When You Buy Your Unit 1 Year 3 Years 5 Years 10 Years Initial sales charge option (2) (Series A and Series T(A)) DSC Option (2) (Series B and Series T(B)) Low Load L1 Option (2) (Series B and Series T(B)) Low Load L3 Option (2) (Series B and Series T(B)) $50 (1) $60 (1) $40 $20 $20 (1) $40 (1) $20 Notes: (1) DCA units of Hartford Canadian Money Market Fund (including units of other Funds issued as a result of the transfer of such units) redeemed within twelve (12) months of the termination of the applicable DCA Program will also be subject to a DCA early redemption charge of $15 per $1,000 of initial investment plus 1.5% of any distributions received from Hartford Canadian Money Market Fund on such units and any Bonus Amounts credited by the Manager to the unitholder in respect of such DCA units (see Part B: Specific Information About Each of the Mutual Funds Described in this Document Hartford Canadian Money Market Fund Description of Securities Offered DCA Units and Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). For purposes of this charge, we do not treat successive transfers to other Funds (excluding Hartford Canadian Money Market Fund) as redemptions. (2) No sales charges or redemption fees apply to Series F units or Series I units. References to Series A and Series B units, respectively, include references to DCA Series A and DCA Series B units, respectively. Series D units and DCA Series D units are not referred to in this section as they are subject to the series closures noted on the cover page. 28

33 DEALER COMPENSATION How Your Investment Professional and Dealer are Paid Your investment professional usually is the person from whom you buy your Funds. Your investment professional could be a broker, financial planner or other person who s registered to sell mutual funds. Your dealer is the firm your investment professional works for. Commissions Your investment professional usually receives a commission when you invest in units of the Funds. The commission depends on how you invest in the Funds. Initial Sales Charge Option You and your investment professional decide on the percentage you ll be charged when you buy Series A (or DCA Series A units of Hartford Canadian Money Market Fund) or Series T(A) units under the initial sales charge option. The percentage ranges from 0% to 5% (0% to 2% for Series A units of Hartford Canadian Money Market Fund). The sales charge is deducted from the amount you invest and is paid to your dealer as a commission. See Fees and Expenses for details. Deferred Sales Charge Option When you choose the DSC Option to buy Series B units (or DCA Series B units of Hartford Canadian Money Market Fund) or Series T(B) units, we pay your dealer a commission of 5% of the amount you invest. You won t pay a charge unless you redeem your units within six years of buying them. See Fees and Expenses for details. When you choose the Low Load L1 Option to buy Series B units (or DCA Series B units of Hartford Canadian Money Market Fund) or Series T(B) units, we pay your dealer a commission of 1% of the amount you invest. You won t pay a charge unless you redeem your units within two years of buying them. See Fees and Expenses for details. When you choose the Low Load L3 Option to buy Series B units (or DCA Series B units of Hartford Canadian Money Market Fund) or Series T(B) units, we pay your dealer a commission of 3% of the amount you invest. You won t pay a charge unless you redeem your units within three years of buying them. See Fees and Expenses for details. Transfer Charge When you transfer from one Fund to another Fund (other than pursuant to the DCA Program), you may have to pay your dealer a transfer charge. You negotiate the charge with your investment professional. The charge is paid by redeeming units of the Fund out of which you re transferring. See Fees and Expenses for details. Service Fees We may pay service fees or trailing commissions to qualified dealers. Generally, the trailing commission is calculated based on the average daily net asset value of units of a Fund held by your dealer s customers and is paid to your dealer at least quarterly in arrears. The trailing commission is determined by us in our sole discretion and may be changed at any time. It is expected that dealers will pay a portion of the trailing commissions to sales representatives for providing ongoing services to customers. The following table shows the maximum service fee rates: Maximum Annual Service Fee Rate (1) Series A Units (2) Series B Units (3) Series D Units (4) Series T(A) Units Series T(B) Units Hartford Canadian Bond Fund (5) 0.25% 0.25% 0.25% 0.25% 0.25% Hartford Canadian Money Market Fund (6) 0.10% 0.10% 0.10% 0.10% 0.10% Hartford Global High Income Fund (7) 0.50% Hartford International Equity Fund (9) 1.00% Hartford Portfolios (9) 1.00% All other Funds (9) 1.00% 0.25% 0.50% (8) N/A N/A N/A 0.50% 1.00% (10) N/A 1.00% 0.50% 1.00% (10) N/A 1.00% 0.50% 1.00% (10) 0.50% 1.00% Notes: (1) Service fees are not paid to dealers on Series F units, DCA Series F units or Series I units. 0.50% 1.00% (10) 0.50% 1.00% (10) 0.50% 1.00% (10) 29

34 (2) Includes DCA Series A units. (3) Includes DCA Series B units. (4) Includes DCA Series D units. (5) A permitted transfer of Series A units, Series B units or Series D units of Hartford Canadian Bond Fund to Series A units, Series B units or Series D units (or Series T(A) units or Series T(B) units if applicable) of all other Funds with the exception of Hartford Canadian Money Market Fund may result in a higher service fee rate. (6) A permitted transfer of Series A units, Series B units or Series D units of Hartford Canadian Money Market Fund to Series A units, Series B units or Series D units (or Series T(A) units or Series T(B) units if applicable) of all other Funds may result in a higher service fee rate. (7) A permitted transfer of Series B units of Hartford Global High Income Fund to Series A units or Series B units (or Series T(A) units or Series T(B) units if applicable) of all other Funds with the exception of Hartford Canadian Bond Fund or Hartford Canadian Money Market Fund may result in a higher service fee rate. (8) The service fee rate in respect of a Series B unit of Hartford Global High Income Fund is a maximum of 0.25% during the first 6 years following an investor s purchase of such unit under the DSC Option and a maximum of 0.25% during the first 3 years following an investor s purchase of such unit under the Low Load L3 Option. For units of this series purchased under the DSC Option or Low Load L3 Option on or after January 25, 2007, upon the expiry of the applicable redemption fee schedule, the service fee rate will increase to a maximum of 0.50%. The service fee rate is a maximum of 0.50% in respect of a Series B unit of Hartford Global High Income Fund purchased under the Low Load L1 Option. (9) A permitted transfer of Series B units or Series T(B) units of a Fund to Series A units or Series B units (or Series T(A) units or Series T(B) units if applicable) of another Fund with the exception of Hartford Canadian Bond Fund or Hartford Canadian Money Market Fund may result in a higher service fee rate. (10) The service fee rate in respect of a Series B unit or Series T(B) unit is a maximum of 0.50% during the first 6 years following an investor s purchase of such unit under the DSC Option and a maximum of 0.50% during the first 3 years following an investor s purchase of such unit under the Low Load L3 Option. For units of these series purchased under the DSC Option or Low Load L3 Option on or after January 25, 2007, upon the expiry of the applicable redemption fee schedule, the service fee rate will increase to a maximum of 1.00%. The service fee rate is a maximum of 1.00% in respect of a Series B unit or Series T(B) unit purchased under the Low Load L1 Option. Marketing Support Program We may engage in cooperative marketing and education programs with dealers and sales representatives by subsidizing such portion of the cost as permitted by applicable laws, rules and regulations and may also engage in other marketing and education programs that comply with applicable laws, rules and regulations. Marketing and education programs typically involve advertising seminars and conferences by the dealer or sales representatives through which sales of units of Funds are promoted. Marketing and education programs do not involve any direct or indirect costs to the Funds except for those borne by the Manager which may be paid out of management fees as described under Dealer Compensation From Management Fees. DEALER COMPENSATION FROM MANAGEMENT FEES We paid dealers compensation of approximately 67% of the total management fees we received from all Hartford Mutual Funds we managed in respect of our financial period ended December 31, This includes amounts INCOME TAX CONSIDERATIONS FOR INVESTORS This section is a summary of how taxes affect your investment in the Funds. The following is based on the assumption that each of the Funds will qualify effective at all material times as a mutual fund trust under the Tax Act. It s written for individual unitholders (other than trusts) who are residents of Canada and who hold their units as capital property. We ve tried to make this section as helpful and accurate as possible. However, tax laws may change between the time we paid to dealers for sales commissions, service fees and marketing support programs. The amounts we paid to dealers for sales commissions are netted against amounts received from deferred sales charges. this summary is prepared and the time you read this summary. Also, this summary is not complete and the tax considerations of purchasing, owning and disposing of units of a Fund may vary according to your situation and the province or territory where you reside. Please consult your tax advisor about your own circumstances. How the Funds Aim to Make Money A Fund can make money two ways. First, it can earn income. Examples are interest paid on bonds, dividends paid on 30

35 stocks, or income from Underlying Funds. A Fund can also have capital gains if the value of its holdings goes up. If the Fund sells an investment at a gain, the gain is realized. If the Fund continues to hold the investment, the gain is unrealized. Each year, the Funds pay out a sufficient amount of their income (after deducting expenses) and realized capital gains so that the Funds don t have to pay income tax. This is known as a distribution. How Your Fund Investment is Taxed The tax you pay on your Fund investment depends on whether you hold your units in a registered plan or in a non-registered account. Funds You Hold in a Registered Plan If you hold your units in a registered plan, you don t have to pay any taxes on distributions your plan receives from the Fund or on any capital gains your plan realizes from redeeming or transferring units. Any payments received from a registered plan other than a TFSA will generally be subject to tax; however special rules apply to registered education savings plans and registered disability savings plans. Funds You Hold in a Non-Registered Account If you hold your units in a non-registered account, we ll send you a tax slip within 90 days of the year end of the Fund each year. It shows your share of the Fund s distributions of income, net capital gains and returns of capital for the previous year (which may include management fee distributions), as well as any allowable tax credits. Income may include dividend income from taxable Canadian corporations, foreign income and other income. Dividends paid by Canadian companies will be taxed subject to the applicable gross-up and dividend tax credit. If the Fund has earned foreign income, it may have paid foreign withholding tax. Some or all of this tax may be credited against the Canadian income tax you pay. Other income is fully taxable. Capital gains distributed by the Funds will be treated as if you realized them directly. You must include the income shown on the tax slip as part of your annual income. This applies whether your distributions were reinvested in additional units of the Fund or were paid to you in cash. If you receive more in distributions in a year than your share of the Fund s income and capital gains for the year, you ll have a return of capital (such as may be the case for holders of Series T(A) units or Series T(B) units). You don t pay tax immediately on a return of capital. Instead, it reduces the adjusted cost base of your units of the Fund. If the adjusted cost base of your units is reduced to less than zero, you will realize a capital gain, to the extent of the negative amount of the adjusted cost base and the adjusted cost base of your units will be increased by the amount of such gain. Distributions on Series T(A) units and Series T(B) units are expected to consist primarily of a return of capital. Management fees paid to Hartford Investments by Series I unitholders will not be deductible for tax purposes. Capital Gains and Losses When You Redeem Your Units You ll have a capital gain if the money you make from redeeming a unit is more than the adjusted cost base of the unit, after deducting any costs of redeeming the unit. You ll have a capital loss if the money you receive from a redemption is less than the adjusted cost base, after deducting any costs of redeeming your units. One-half of a capital gain is generally included in calculating your income. If you ve bought units at various times, you will likely have paid various prices. The adjusted cost base of a unit is the average of the cost of all the units you hold in the Fund. That includes units you received through reinvestments of distributions. In certain cases, individuals may also have to pay alternative minimum tax on the capital gains or dividends they earn. Transferring Units A transfer of units of one Fund to units of another Fund is considered for tax purposes to be a redemption of units and a reinvestment which will give rise to the tax consequences described immediately above. A redesignation to a different series of units within the same Fund does not result in a capital gain or loss and the aggregate adjusted cost base of your units remains the same. As long as no withdrawal is made from your registered plan, you may transfer units of a Fund for units of another Fund within your registered plan without paying any tax on the transfer. Buying Units Late in the Year The unit price of a Fund may include income and/or capital gains that the Fund has earned, but not yet realized and/or distributed. If you buy units, particularly if it s late in the year, you may end up paying tax on income and capital gains the Fund earned before you bought your units. This can happen when the Fund makes a distribution in December of its net income and net realized gains for the whole year. You should consider how this tax cost might affect you when you buy units. How to Calculate Adjusted Cost Base Adjusted cost base is determined separately for each series of units owned by an investor. Here s how adjusted cost base is generally calculated: start with your initial investment, including any sales charges you paid add any additional investments including sales charges you paid 31

36 add any distributions you reinvested subtract any distributions that were a return of capital subtract the adjusted cost base of any previous redemptions. To calculate adjusted cost base, you ll need to keep detailed records of the price you paid for your investments and the distributions you received on those units. It is expected that the monthly distributions on Series T(A) and Series T(B) units will frequently include a return of capital, which will affect the adjusted cost base of your units. We will provide you with information regarding any distributions that are a return of capital. For more information, contact your tax advisor. DCA Program Consequences Amounts credited or paid to a holder of DCA units of Hartford Canadian Money Market Fund by the Manager on account of the Manager s bonus yield obligations described under Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program and Part B: Specific Information About Each of the Mutual Funds Described in this Document Hartford Canadian Money Market Fund Description of Securities Offered DCA Units will be treated as income received by such unitholder and will be fully taxable (unless the unitholder holds same through a registered retirement plan). Such amounts applied to the purchase/issuance of units of the Funds under the unitholder s DCA Program will be added to the unitholder s adjusted cost base of such units (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). Portfolio Turnover Rate A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher the portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year and the greater the chance of an investor receiving taxable distributions in the year. There is not necessarily a relationship between a high turnover rate and the performance of a mutual fund. WHAT ARE YOUR LEGAL RIGHTS? Securities law in several provinces gives you the right to withdraw from an agreement to buy mutual fund securities within two business days after you receive a Simplified Prospectus or to cancel your purchase within 48 hours after you receive confirmation of your purchase. If you buy mutual fund securities under a contractual plan, the time period for your right to withdraw from the purchase may be longer. In several provinces and territories, securities law also gives you the right to cancel an agreement to buy mutual fund securities and get your money back or, in some jurisdictions, claim damages if the Simplified Prospectus or Annual Information Form or financial statements misrepresent any facts about the Fund. You must act within the time limit set by the securities legislation in your province or territory. You can find out more by referring to the securities legislation in your province or territory or by consulting a legal adviser. 32

37 PART B: SPECIFIC INFORMATION ABOUT EACH OF THE MUTUAL FUNDS DESCRIBED IN THIS DOCUMENT GENERAL INFORMATION Information about each Fund is summarized on the following pages. Here is an explanation of what you will find under each heading. Fund Details In each Fund summary you will find a chart that looks like this one. It contains the information described below. Type of Fund This tells you how the Fund is classified, whether money market, equity, bond, related to a geographical region, or some other type. Start Date This is the date that the Fund started offering units to the public. Securities Offered This tells you the nature of the units offered. Eligible for Registered Plans This tells you whether units of the Fund are qualified investments for registered plans. Portfolio Sub-Adviser This tells you the name of the portfolio sub-adviser of the Fund. What Does the Fund invest in? This section is divided into two parts: Investment Objective The investment objective of each Fund is described, and the kinds of securities it uses to achieve this objective. Investment Strategy This explains how a Fund through the applicable portfolio sub-adviser plans to achieve its investment objective. The investment activities of each Fund are subject to the investment restrictions determined from time to time by the Manager. Each Fund shall at all times conduct its activities so as to qualify as a mutual fund trust as that phrase is defined for purposes of the Tax Act. In addition to the specific investment restrictions and practices described herein, the Funds have adopted the standard investment restrictions and practices set forth in National Instrument Mutual Funds, a copy of which may be obtained from the Funds upon request, or any rule or national instrument reformulating or replacing same. Investors are encouraged to consult the Annual Information Form of the Funds for further information concerning the restrictions on investments and on investment policies and practices of the Fund in pursuing its objectives. What are the Risks of Investing in this Fund? This is where the specific risks of the Fund are set out. For details about the meaning of each risk, see pages 2 to 7 of this document. Large Unitholders These are the unitholders of the Fund which, as of April 16, 2010 beneficially hold more than 10% of the units of the Fund. Who Should Invest in this Fund? Information is provided under this heading to help you decide whether investing in a particular Fund is right for you. Distribution Policy This section tells you how and when distributions or dividends are paid by the Fund. Fund Expenses Indirectly Borne by Investors The information in this table provides an example of the share of the expenses of each series of units of each Fund indirectly borne by investors. Each series of units of a Fund is responsible for its own expenses and its proportionate share of common Fund expenses. While you don t pay these costs directly, they reduce the Fund s return. You ll find more information about the costs of investing in the Funds in Fees and Expenses. 33

38 HARTFORD GROWTH PORTFOLIO Fund Details Type of Fund Start Date Securities Offered Eligible for Registered Plans Portfolio Sub-Adviser Asset Allocation Portfolio January 16, 2009 for Series A, Series B, Series F, Series T(A) and Series T(B) units Five series of units of a mutual fund trust, namely Series A units, Series B units, Series F units, Series T(A) units and Series T(B) units Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Hartford Investment Management Company, Hartford, Connecticut (1) Notes: (1) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against Hartford Investment Management Company because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Growth Portfolio is to seek long term capital appreciation by investing primarily in a portfolio of equity and fixed income mutual funds, managed by the manager or an affiliate or associate of the manager and, to a lesser extent, exchange-traded funds (ETFs). The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy To fulfill this objective, the portfolio sub-adviser will follow a strategic asset allocation strategy whereby all or substantially all of the Fund s assets will be invested in a combination of other Hartford Mutual Funds, and to a lesser degree, ETFs. The Fund will invest in a combination of domestic and international equity and fixed income funds. The Underlying Funds and ETFs may invest in a variety of domestic, global and emerging market equity and fixed income securities. Equity investments may include small, medium and large capitalization securities, while fixed income investments may include high quality as well as high yield or other lower-quality debt securities. The portfolio sub-adviser may change the Underlying Funds and ETFs in which the Fund is invested, or the percentage of the Fund s assets invested in a particular Underlying Fund or ETF at any time in its sole discretion. Under normal market conditions, approximately 80% of the Fund s assets are expected to be invested in equity funds and approximately 20% of the Fund s assets are expected to be invested in fixed income funds. These percentages may vary from time to time depending on the portfolio subadviser s view of market conditions. The portfolio subadviser will monitor and periodically rebalance the Fund s assets back to the target asset allocation. The portfolio subadviser will also regularly review and adjust the target asset allocations, including by buying and selling units of the Underlying Funds, and may purchase or sell ETFs in order to increase or decrease the Fund s exposure to specific sectors of the market. The portfolio sub-adviser selects for the Fund the appropriate Underlying Funds. In making this selection, the portfolio sub-adviser considers the investment objectives and strategies of each Underlying Fund as well as its investment style and performance record. The portfolio sub-adviser selects for the Fund the appropriate ETFs. In making this selection, the portfolio sub-adviser considers the index that each ETF is designed to replicate or represent. Subject to compliance with applicable registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Fund in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. At present, the Fund intends to use derivatives only for currency hedging purposes. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse 34

39 repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time, as part of its principal investment strategy, each Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent a Fund is in a defensive position, the Fund may lose the benefit of market upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The Fund uses strategic asset allocation in order to invest in a mix of different Underlying Funds and ETFs. This strategy helps to reduce the Fund s volatility but also makes the Fund s performance dependent on the performance of the Underlying Funds and ETFs in which it invests. The Fund s ability to achieve its overall investment objective is directly related to the Underlying Funds and ETFs ability to achieve their individual investment objectives. See Risks of Investments in Other Mutual Funds. The Fund is subject to its own risks and to risks relating to the Underlying Funds and ETFs it holds. The investment risks of the Fund and Underlying Funds and ETFs held by the Fund may include: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Credit Risk; Exchange-Traded Fund Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Investments in Small and Mid-Sized Companies; Market Risk; Risks of Investing in Bank Loans and Loan Participations; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. In accordance with its investment objectives, the Fund held up to 20.39% of its net assets in units of Hartford International Equity Fund, up to 19.68% of its net assets in units of Hartford Canadian Value Fund, up to 16.09% of its net assets in units of Hartford Canadian Dividend Fund, up to 14.06% of its net assets in units of Hartford Capital Appreciation Fund, up to 11.69% of its net assets in units of Hartford Global High Income Fund, and up to 10.78% of its net assets in units of Hartford Canadian Stock Fund during the last year. We do not believe that these investments resulted in any additional risk to the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking long-term capital growth with reduced volatility through a diversified portfolio of equity and fixed income funds. This Fund may be suitable if you are investing for the long term and are willing to accept a moderate degree of risk. Distribution Policy The Fund has a taxation year end of December 31. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31 of the previous year. This 35

40 distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions are included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. December 31, Please also see Fees and Expenses Payable Directly by You. Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $ Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain for each series as that incurred in respect of the Fund s financial year ended 36

41 HARTFORD BALANCED GROWTH PORTFOLIO Fund Details Type of Fund Start Date Securities Offered Eligible for Registered Plans Portfolio Sub-Adviser Asset Allocation Portfolio January 16, 2009 for Series A, Series B, Series F, Series T(A) and Series T(B) units Five series of units of a mutual fund trust, namely Series A units, Series B units, Series F units, Series T(A) units and Series T(B) units Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Hartford Investment Management Company, Hartford, Connecticut (1) Notes: (1) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against Hartford Investment Management Company because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest In? Investment Objective The fundamental investment objective of Hartford Balanced Growth Portfolio is to seek long term capital appreciation and some income by investing primarily in a portfolio of equity and fixed income mutual funds, managed by the manager or an affiliate or associate of the manager and, to a lesser extent, exchange-traded funds (ETFs). The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy To fulfill this objective, the portfolio sub-adviser will follow a strategic asset allocation strategy whereby all or substantially all of the Fund s asset will be invested in a combination of other Hartford Mutual Funds, and to a lesser degree, ETFs. The Fund will invest in a combination of domestic and international equity and fixed income funds. The Underlying Funds and ETFs may invest in a variety of domestic, global and emerging market equity and fixed income securities. Equity investments may include small, medium and large capitalization securities, while fixed income investments may include high quality as well as high yield or other lower-quality debt securities. The portfolio sub-adviser may change the Underlying Funds and ETFs in which the Fund is invested, or the percentage of the Fund s assets invested in a particular Underlying Fund or ETF at any time in its sole discretion. Under normal market conditions, approximately 65% of the Fund s assets are expected to be invested in equity funds and approximately 35% of assets are expected to be invested in fixed income funds. These percentages may vary from time to time depending on the portfolio sub-adviser s view of market conditions. The portfolio sub-adviser will monitor and periodically rebalance the Fund s assets back to the target asset allocation. The portfolio sub-adviser will also regularly review and adjust the target asset allocations, including by buying and selling units of the Underlying Funds, and may purchase or sell ETFs in order to increase or decrease the Fund s exposure to specific sectors of the market. The portfolio sub-adviser selects for the Fund the appropriate Underlying Funds. In making this selection, the portfolio sub-adviser considers the investment objectives and strategies of each Underlying Fund as well as its investment style and performance record. The portfolio sub-adviser selects for the Fund the appropriate ETFs. In making this selection, the portfolio sub-adviser considers the index that each ETF is designed to replicate or represent. Subject to compliance with applicable registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Fund in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. At present, the Fund intends to use derivatives only for currency hedging purposes. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund 37

42 does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time, as part of its principal investment strategy, each Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent a Fund is in a defensive position, the Fund may lose the benefit of market upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The Fund uses strategic asset allocation in order to invest in a mix of different Underlying Funds and ETFs. This strategy helps to reduce the Fund s volatility but also makes the Fund s performance dependent on the performance of the Underlying Funds and ETFs in which it invests. The Fund s ability to achieve its overall investment objective is directly related to the Underlying Funds and ETFs ability to achieve their individual investment objectives. See Risks of Investments in Other Mutual Funds. The Fund is subject its own risks and to risks relating to the Underlying Funds and ETFs it holds. The investment risks of the Fund and Underlying Funds and ETFs held by the Fund may include: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Credit Risk; Exchange-Traded Fund Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Investments in Small and Mid-Sized Companies; Market Risk; Risks of Investing in Bank Loans and Loan Participations; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. In accordance with its investment objectives, the Fund held up to 20.03% of its net assets in units of Hartford Global High Income Fund, up to 19.15% of its net assets in units of Hartford International Equity Fund, up to 16.89% of its net assets in units of Hartford Canadian Bond Fund, up to 15.69% of its net assets in units of Hartford Canadian Value Fund, up to 13.44% of its net assets in units of Hartford Canadian Dividend Fund, and up to 10.92% of its net assets in units of Hartford Capital Appreciation Fund during the last year. We do not believe that these investments resulted in any additional risk to the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking long-term capital growth with reduced volatility through a diversified portfolio of equity and fixed income funds. This Fund may be suitable if you are investing for the long term and are willing to accept a low to moderate degree of risk. Distribution Policy The Fund has a taxation year end of December 31. The Fund intends to make such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the 38

43 series as at December 31 of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions are included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain for each series as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

44 HARTFORD BALANCED PORTFOLIO Fund Details Type of Fund Start Date Securities Offered Eligible for Registered Plans Portfolio Sub-Adviser Asset Allocation Portfolio January 16, 2009 for Series A, Series B, Series F, Series T(A) and Series T(B) units Five series of units of a mutual fund trust, namely Series A units, Series B units, Series F units, Series T(A) units and Series T(B) units Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Hartford Investment Management Company, Hartford, Connecticut (1) Notes: (1) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against Hartford Investment Management Company because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest In? Investment Objective The fundamental investment objective of Hartford Balanced Portfolio is to seek a balance of long term capital appreciation and income by investing primarily in a portfolio of equity and fixed income mutual funds, managed by the manager or an affiliate or associate of the manager and, to a lesser extent, exchange-traded funds (ETFs). The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy To fulfill this objective, the portfolio sub-adviser will follow a strategic asset allocation strategy whereby all or substantially all of the Fund s assets will be invested in a combination of other Hartford Mutual Funds, and to a lesser degree, ETFs. The Fund will invest in a combination of domestic and international equity and fixed income funds. The Underlying Funds and ETFs may invest in a variety of domestic, global and emerging market equity and fixed income securities. Equity investments may include small, medium and large capitalization securities, while fixed income investments may include high quality as well as high yield or other lower-quality debt securities. The portfolio sub-adviser may change the Underlying Funds and ETFs in which the Fund is invested, or the percentage of the Fund s assets invested in a particular Underlying Fund or ETF at any time in its sole discretion. Under normal market conditions, approximately 50% of the Fund s assets are expected to be invested in equity funds and approximately 50% of assets are expected to be invested in fixed income funds. These percentages may vary from time to time depending on the portfolio sub-adviser s view of market conditions. The portfolio sub-adviser will monitor and periodically rebalance the Fund s assets back to the target asset allocation. The portfolio sub-adviser will also regularly review and adjust the target asset allocations, including by buying and selling units of the Underlying Funds, and may purchase or sell ETFs in order to increase or decrease the Fund s exposure to specific sectors of the market. The portfolio sub-adviser selects for the Fund the appropriate Underlying Funds. In making this selection, the portfolio sub-adviser considers the investment objectives and strategies of each Underlying Fund as well as its investment style and performance record. The portfolio sub-adviser selects for the Fund the appropriate ETFs. In making this selection, the portfolio sub-adviser considers the index that each ETF is designed to replicate or represent. Subject to compliance with applicable registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Fund in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. At present, the Fund intends to use derivatives only for currency hedging purposes. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund 40

45 does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time, as part of its principal investment strategy, each Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent a Fund is in a defensive position, the Fund may lose the benefit of market upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The Fund uses strategic asset allocation in order to invest in a mix of different Underlying Funds and ETFs. This strategy helps to reduce the Fund s volatility but also makes the Fund s performance dependent on the performance of the Underlying Funds and ETFs in which it invests. The Fund s ability to achieve its overall investment objective is directly related to the Underlying Funds and ETFs ability to achieve their individual investment objectives. See Risks of Investments in Other Mutual Funds. The Fund is subject its own risks and to risks relating to the Underlying Funds and ETFs it holds. The investment risks of the Fund and Underlying Funds and ETFs held by the Fund may include: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Credit Risk; Exchange-Traded Fund Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Investments in Small and Mid-Sized Companies; Market Risk; Risks of Investing in Bank Loans and Loan Participations; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. In accordance with its investment objectives, the Fund held up to 28.08% of its net assets in units of Hartford Canadian Bond Fund, up to 23.62% of its net assets in units of Hartford Global High Income Fund, up to 16.92% of its net assets in units of Hartford International Equity Fund, and up to 13.01% of its net assets in units of Hartford Canadian Value Fund during the last year. We do not believe that these investments resulted in any additional risk to the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking long-term capital growth with reduced volatility through a diversified portfolio of equity and fixed income funds. This Fund may be suitable if you are investing for the long term and are willing to accept a low to moderate degree of risk. Distribution Policy The Fund has a taxation year end of December 31. The Fund intends to make such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31 of the previous year. This distribution amount for any series of units may be changed, 41

46 depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions are included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain for each series as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

47 HARTFORD CONSERVATIVE PORTFOLIO Fund Details Type of Fund Start Date Securities Offered Eligible for Registered Plans Portfolio Sub-Adviser Asset Allocation Portfolio January 16, 2009 for Series A, Series B, Series F, Series T(A) and Series T(B) units Five series of units of a mutual fund trust, namely Series A units, Series B units, Series F units, Series T(A) units and Series T(B) units Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Hartford Investment Management Company, Hartford, Connecticut (1) Notes: (1) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against Hartford Investment Management Company because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Conservative Portfolio is to seek a combination of current income with the potential for long term capital appreciation by investing primarily in a portfolio of equity and fixed income mutual funds, managed by the manager or an affiliate or associate of the manager and, to a lesser extent, exchange-traded funds (ETFs). The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy To fulfill this objective, the portfolio sub-adviser will follow a strategic asset allocation strategy whereby all or substantially all of the Fund s assets will be invested in a combination of other Hartford Mutual Funds, and to a lesser degree, ETFs. The Fund will invest in a combination of domestic and international equity and fixed income funds. The Underlying Funds and ETFs may invest in a variety of domestic, global and emerging market equity and fixed income securities. Equity investments may include small, medium and large capitalization securities, while fixed income investments may include high quality as well as high yield or other lower-quality debt securities. The portfolio sub-adviser may change the Underlying Funds and ETFs in which the Fund is invested, or the percentage of the Fund s assets invested in a particular Underlying Fund or ETF at any time in its sole discretion. Under normal market conditions, approximately 35% of the Fund s assets are expected to be invested in equity funds and approximately 65% of assets are expected to be invested in fixed income funds. These percentages may vary from time to time depending on the portfolio sub-adviser s view of market conditions. The portfolio sub-adviser will monitor and periodically rebalance the Fund s assets back to the target asset allocation. The portfolio sub-adviser will also regularly review and adjust the target asset allocations, including by buying and selling units of the Underlying Funds, and may purchase or sell ETFs in order to increase or decrease the Fund s exposure to specific sectors of the market. The portfolio sub-adviser selects for the Fund the appropriate Underlying Funds. In making this selection, the portfolio sub-adviser considers the investment objectives and strategies of each Underlying Fund as well as its investment style and performance record. The portfolio sub-adviser selects for the Fund the appropriate ETFs. In making this selection, the portfolio sub-adviser considers the index that each ETF is designed to replicate or represent. Subject to compliance with applicable registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Fund in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. At present, the Fund intends to use derivatives only for currency hedging purposes. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for 43

48 temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time, as part of its principal investment strategy, each Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent a Fund is in a defensive position, the Fund may lose the benefit of market upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The Fund uses strategic asset allocation in order to invest in a mix of different Underlying Funds and ETFs. This strategy helps to reduce the Fund s volatility but also makes the Fund s performance dependent on the performance of the Underlying Funds and ETFs in which it invests. The Fund s ability to achieve its overall investment objective is directly related to the Underlying Funds and ETFs ability to achieve their individual investment objectives. See Risks of Investments in Other Mutual Funds. The Fund is subject its own risks and to risks relating to the Underlying Funds and ETFs it holds. The investment risks of the Fund and Underlying Funds and ETFs held by the Fund may include: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Credit Risk; Exchange-Traded Fund Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Investments in Small and Mid-Sized Companies; Market Risk; Risks of Investing in Bank Loans and Loan Participations; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. In accordance with its investment objectives, the Fund held up to 38.95% of its net assets in units of Hartford Canadian Bond Fund, up to 24.50% of its net assets in units of Hartford Global High Income Fund, and up to 13.27% of its net assets in units of Hartford International Equity Fund during the last year. We do not believe that these investments resulted in any additional risk to the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking long-term capital growth with reduced volatility through a diversified portfolio of equity and fixed income funds. This Fund may be suitable if you are investing for the long term and are willing to accept a low to moderate degree of risk. Distribution Policy The fund has a taxation year end of December 31. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31 of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. 44

49 Details of distributions are included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain for each series as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 Year For 3 Years For 5 Years For 10 Years Series A units $20.50 $64.63 $ $ Series B units $23.06 $72.70 $ $ Series F units $12.81 $40.39 $ $ Series T(A) units $20.50 $64.63 $ $ Series T(B) units $23.06 $72.70 $ $

50 HARTFORD CAPITAL APPRECIATION FUND Fund Details Type of Fund U.S. Equity Start Date May 1, 2000 (February 1, 2005 for Series A units, June 13, 2006 for Series F units and Series I units and July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Wellington Management Company, LLP, Boston Massachusetts (2) Notes: (1) Effective May 9, 2008, Series D units of the Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against this portfolio sub-adviser because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Capital Appreciation Fund is to seek growth of capital by investing primarily in United States stocks selected on the basis of potential for capital appreciation. To fulfil this objective, the investment policy of the Fund is to invest a majority of its total assets in common stocks of medium and large U.S. companies. The Fund may invest up to 35% of its total assets in the securities of non-u.s. companies. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy Through fundamental analysis, the sub-adviser identifies companies that it believes have substantial near-term capital appreciation potential regardless of company size or industry sector. This strategy is sometimes referred to as a stock picking approach. Companies are selected primarily on the basis of dynamic earnings growth potential and/or the expectation of a significant event that the sub-adviser believes will trigger an increase in stock price. Although not limited, the Fund generally will not invest in securities of companies having market capitalizations less than U.S.$2 billion. In analyzing a prospective investment, the sub-adviser looks at a number of factors, such as business environment, management quality, balance sheet, income statement, anticipated earnings, revenues, dividends and other related measures or indicators of value. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. The only derivatives used by the Fund to date are forward currency contracts. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund is permitted to enter into repurchase agreements and, subject to providing 60 days advance written notice to investors, the Fund may enter into reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into reverse repurchase agreements or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities 46

51 lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. The Fund s portfolio turnover rate is expected to be higher than 70%. The higher a Fund s portfolio turnover rate: the greater the chance you may receive taxable capital gains; and the greater the trading costs of the Fund. These costs are an expense of the Fund and are paid out of Fund assets, which may reduce your returns. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth of capital associated with an aggressive stock picking approach. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate to high degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you 47

52 because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain, in respect of Series B units and Series D units, as set out on page 22 and, in respect of Series A units, Series F units, Series T(A) units and Series T(B) units as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $24.09 $75.94 $ $ Series B units $26.65 $84.01 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $24.09 $75.94 $ $ Series T(B) units $26.65 $84.01 $ $

53 HARTFORD GLOBAL LEADERS FUND Fund Details Type of Fund Global Equity Start Date May 1, 2000 (February 1, 2005 for Series A units, June 13, 2006 for Series F units and Series I units and July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Black Creek Investment Management Inc., Toronto, Ontario (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Global Leaders Fund is to seek growth of capital by investing primarily in stocks issued by companies worldwide. Under normal market and economic conditions, the Fund will invest a majority of its total assets in common stocks of high quality growth companies worldwide. These companies will be those identified by the Fund as leaders in their respective industries as indicated by an established market presence and strong global, regional or country competitive positions. The Fund will invest primarily in a diversified portfolio of common stocks covering a broad range of countries, industries and companies. Securities in which the Fund may invest are denominated in many currencies and may trade in markets around the world. Under normal market and economic conditions, the Fund will diversify its investments in securities of companies among a number of different countries throughout the world, which may include Canada. There are no limits on the amount of the Fund s assets that may be invested in each country. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The approach of the sub-adviser is to invest in globally competitive companies within growing sectors. The subadviser takes a long-term view of the world and strives to understand the economics and characteristics of different businesses and industries. The sub-adviser analyzes historical financial performance, trends and technological changes in the business, sensitivities to economic factors, and other factors which may affect the future economics of the business. The sub-adviser strives to select companies with industry leadership, strong management, growing profits and potential for capital appreciation. The Fund may invest in a broad range of market capitalizations but tends to focus on mid to large capitalization companies. Although diversified by country, industry and company, the Fund s portfolio is focused and concentrated. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified 49

54 derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund is permitted to enter into repurchase agreements and, subject to providing 60 days advance written notice to investors, the Fund may enter into reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into reverse repurchase agreements or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth of capital associated with quality growth companies worldwide. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty 50

55 until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain, in respect of Series B units and Series D units, as set out on page 22 and, in respect of Series A units, Series F units, Series T(A) units and Series T(B) units, as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $24.09 $75.94 $ $ Series B units $26.65 $84.01 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $24.09 $75.94 $ $ Series T(B) units $26.65 $84.01 $ $

56 HARTFORD INTERNATIONAL EQUITY FUND Fund Details Type of Fund International Equity Start Date Series A, Series B, Series F, Series I, Series T(A) and Series T(B) September 25, 2008 Securities Offered Six series of units of a mutual fund trust, namely Series A units, Series B units, Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Black Creek Investment Management Inc., Toronto, Ontario (1) Notes: (1) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford International Equity Fund is to seek long-term capital growth by investing primarily in equity securities of companies located outside of Canada and the United States. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy To fulfill this objective, the Fund will primarily invest in a portfolio of equity securities of companies domiciled in countries outside of Canada and the United States, including companies located in emerging markets. It may invest in small, medium and large companies, and may hold cash and cash-equivalent securities. Although diversified by country, industry and company, the Fund s portfolio may hold larger positions in a smaller number of securities. When selecting securities for the Fund, the sub-adviser evaluates the merits of each company in terms of its leadership position within its industry, the strength of management, profit growth and the potential for capital appreciation. In order to develop a proprietary view of the company, the sub-adviser also considers overall macroeconomic conditions, historical financial performance of the company, trends and technological changes in the business, sensitivity to economic factors as well as other factors which may affect the future economics of the business. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Fund in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. At present, the Fund intends to use derivatives only for currency hedging purposes. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investments are permitted by Canadian securities laws. The sub-adviser will select such investments based on the Fund s investment objective. See Risks of Investments in Other Mutual Funds. At present, the Fund does not invest in securities of other mutual funds. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent 52

57 the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Concentration Risk; International Investment Exposure; Investments in Emerging Countries; Investments in Small and Mid-Sized Companies Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking capital growth associated with quality companies located primarily outside of Canada and the United States. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series A units). 53

58 Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $24.09 $75.94 $ $ Series B units $26.65 $84.01 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $24.09 $75.94 $ $ Series T(B) units $26.65 $84.01 $ $

59 HARTFORD U.S. DIVIDEND GROWTH FUND Fund Details Type of Fund U.S. Dividend Start Date June 13, 2006 (July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Greystone Managed Investments Inc., Regina, Saskatchewan (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford U.S. Dividend Growth Fund is to provide modest long-term capital appreciation and dividend income by investing in an actively managed portfolio of primarily U.S. equities. To fulfill its objective, the investment policy of the Fund is to invest a majority of the Fund s assets in a diversified portfolio of U.S. equities and, to a lesser extent, U.S. equity equivalents, focusing primarily on larger capitalization companies with high dividend yields and predictable levels of profitability. Emphasis is also placed on earnings quality and financial strength all of which facilitate dividend growth. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The Fund s sub-adviser follows a focused investment strategy by normally causing the Fund to hold a diversified portfolio of approximately 25 selected equities. Typically, the sub-adviser attempts to produce a modest long-term capital appreciation and dividend income by selecting a base of mature companies with predictable levels of profitability. The sub-adviser favours U.S. companies that show financial strength, balanced by a desire for the Fund s portfolio to show above-average growth rates. The sub-adviser s disciplined approach uses both quantitative and qualitative tools to build an incomeoriented portfolio. The portfolio management process focuses on mature companies with high dividend yields and predictable levels of profitability, which will facilitate dividend growth into the future. Emphasis is also placed on earnings quality and financial strength. Analysis is undertaken in the context of the overall market and accordingly growth characteristics are assessed on a relative basis. The sub-adviser s quantitative tools automatically identify those companies worthy of personal attention. The subadviser supplements quantitative information with an indepth knowledge of the companies in each industry and its economic requirements. An equity security is more likely to be included in the Fund s portfolio if its profitability is greater than the market and if realized results meet or exceed market expectations. The Fund s portfolio is built from the bottom-up as new companies replace holdings whose growth in the opinion of the sub-adviser show deterioration. Income on equities in the Fund comes from selecting a base of companies that exhibit predictable levels of profitability. More specifically, the sub-adviser looks for companies with earnings growth, because rising earnings mean a current income stream that could be used to fund dividends and often the capital appreciation of higher stock prices. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Fund in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in non-u.s. equities. 55

60 The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Large Unitholders As at April 16, 2010, the only unitholder of the Fund which, to the knowledge of the Manager, beneficially held more than 10% of the units of the Fund was Hartford Life & Accident Insurance Company, which held 10.50% of the outstanding units of the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking capital preservation and modest capital appreciation through investments in high quality U.S. equities. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and 56

61 otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units, as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

62 HARTFORD U.S. STOCK FUND Fund Details Type of Fund U.S. Equity Start Date May 1, 2000 (February 1, 2005 for Series A units and June 13, 2006 for Series F units and Series I units) Securities Offered Five series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units and Series I units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Wellington Management Company, LLP, Boston, Massachusetts (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against this portfolio sub-adviser because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford U.S. Stock Fund is to seek long-term growth of capital, with income as a secondary consideration, by investing primarily in United States equity securities. To fulfil its objective, the investment policy of the Fund is to invest primarily in equities of high-quality U.S. companies. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The Fund will normally invest at least 80% of the Fund s assets in the common stock of high quality United States companies. The Fund s diversified portfolio of primarily United States equity securities are evaluated using what is sometimes referred to as a bottom-up approach, which is the use of fundamental analysis to identify specific securities for purchase or sale. Fundamental analysis of a company involves the assessment of such factors as its business environment, management quality, balance sheet, income statement, anticipated earnings, revenues and dividends and other related measures or indicators of value. The key characteristics of companies favoured by the subadviser include a leadership position within an industry, a strong balance sheet, an acceleration in growth rates, a high return on equity, a strong management team and a globally competitive position. The Fund may also invest in companies that the sub-adviser believes have been excessively devalued by the market, provided there is a catalyst that could lead to an improvement in stock price. The Fund may invest up to 20% of its total assets in non-u.s. equity securities. The Fund may invest in a broad range of market capitalizations but tends to focus on large capitalization companies. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund is permitted to enter into repurchase agreements and, subject to providing 60 days advance written notice to investors, the Fund may enter into reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into reverse repurchase agreements or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities 58

63 lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. The Fund s portfolio turnover rate may be higher than 70%. The higher a Fund s portfolio turnover rate: the greater the chance you may receive taxable capital gains; and the greater the trading costs of the Fund. These costs are an expense of the Fund and are paid out of Fund assets, which may reduce your returns. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth of capital associated primarily with large capitalization U.S. equities. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on or about the last day of the Fund s taxation year to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by a Fund on units are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain, in respect of Series B units and Series D units, as set out on page 22 and, in respect of Series A units and Series F units as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $24.09 $75.94 $ $ Series B units $26.65 $84.01 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $

64 HARTFORD CANADIAN DIVIDEND FUND Fund Details Type of Fund Canadian Dividend Start Date September 1, 2004 (February 1, 2005 for Series A units, June 13, 2006 for Series F units and Series I units and July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Beutel, Goodman & Company Ltd., Toronto, Ontario (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Dividend Fund is to achieve a balance between high dividend income and capital growth by investing mainly in a diversified portfolio of Canadian common stocks that are paying a dividend or are expected to pay a dividend and, to a lesser extent, in high-yield preferred shares and interest bearing securities. To fulfill its objective, the investment policy of the Fund is to invest a majority of the Fund s total assets in a diversified portfolio primarily composed of shares of free cash flow generating Canadian companies providing a stable income stream and trading at a significant discount to their intrinsic value. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The sub-adviser focuses on the Fund investing in securities with strong fundamentals, a record of dividend payments, potential for dividend increases or an expectation of dividend payments within 6 to 12 months. The sub-adviser directs research efforts to identify free cash flow generating companies trading at a sufficient discount to their intrinsic value. The sub-adviser uses quantitative and qualitative methods in the stock selection process. The sub-adviser chooses the investments by seeking out reputable stocks that are undervalued on the market compared to their true worth, focusing on small, mid and large capitalization Canadian corporations in a variety of industries while favouring equity securities, including preferred stock, that provide a stable income. The sub-adviser employs a bottomup investment approach in constructing the investment portfolio of the Fund. From time-to-time, the Fund may also purchase Canadian debt securities, both governmental and corporate. The Fund may also purchase equity securities of foreign corporations and debt securities of foreign corporations and governmental entities provided that the Fund may only invest a maximum of 30% of its assets (book value) in foreign securities. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. 60

65 Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Income Trust Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking current income balanced by the prospect of capital growth through investments in dividend paying Canadian equity securities. This Fund may be suitable if you are investing for a medium to longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) 61

66 units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

67 HARTFORD CANADIAN DIVIDEND GROWTH FUND Fund Details Type of Fund Canadian Dividend Start Date September 1, 2004 (February 1, 2005 for Series A units and June 13, 2006 for Series F units and Series I units) Securities Offered (1) Five series of units of a mutual fund trust namely Series A units, Series B units, Series D units, Series F units and Series I units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Greystone Managed Investments Inc., Regina, Saskatchewan (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Dividend Growth Fund is to provide primarily a predictable stream of income and, secondarily, modest long-term capital appreciation, by investing in an actively managed portfolio of primarily Canadian stocks. To fulfill its objective, the investment policy of the Fund is to invest a majority of the Fund s total assets in a diversified portfolio of primarily Canadian stocks and equivalent securities with high dividend yields that have predictable levels of profitability and earnings which facilitate dividend growth. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The Fund s sub-adviser follows a focused investment strategy by normally causing the Fund to hold a diversified portfolio of approximately 25 selected stocks. Typically, the sub-adviser attempts to produce superior dividend income and modest long-term capital appreciation by selecting a base of mature companies with predictable and growing levels of profitability. The sub-adviser favours Canadian companies that show financial strength, balanced by a desire for the Fund s portfolio to show above-average growth rates. The sub-adviser s disciplined approach uses both quantitative and qualitative tools to build an incomeoriented portfolio. By using carefully selected factors, the sub-adviser screens the entire Canadian market every day to isolate possible opportunities. The sub-adviser s quantitative tools automatically identify those companies worthy of personal attention. The subadviser supplements quantitative information with an indepth knowledge of the companies in each industry and its economic requirements. A security is more likely to be included in the Fund s portfolio if its profitability is growing faster than the market rate and if realized results meet or exceed market expectations. The Fund s portfolio is built from the bottom-up as new companies replace holdings whose growth in the opinion of the sub-adviser shows deterioration. Reliable income on equities in the Fund comes from selecting a base of companies that exhibit predictable and growing levels of profitability. More specifically, the sub-adviser looks for stocks with earnings growth, because rising earnings mean a current income stream that could be used to fund dividends and often the capital appreciation of higher stock prices. The Fund may invest a maximum of 30% of its assets (book value) in foreign securities. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, 63

68 provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Income Trust Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking income and the potential for modest capital appreciation through investments in Canadian equity securities. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund at the end of March, June and September of each year. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by a Fund on units are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by 64

69 the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $

70 HARTFORD CANADIAN STOCK FUND Fund Details Type of Fund Canadian Equity Start Date May 1, 2000 (February 1, 2005 for Series A units, June 13, 2006 for Series F units and Series I units and July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Greystone Managed Investments Inc., Regina, Saskatchewan (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Stock Fund is to seek long-term growth of capital and current income by investing primarily in Canadian equity securities. To fulfil its objective, the investment policy of the Fund is to invest a majority of the Fund s total assets in a diversified portfolio of primarily Canadian stocks and equivalent securities, and Canadian securities convertible into stocks. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The sub-adviser uses both quantitative and qualitative methods to evaluate a security for purchase or sale by the Fund. An internally developed quantitative process of the sub-adviser is utilized to screen the market on an ongoing basis to isolate possible opportunities for the Fund. The quantitative process considers various factors for screening securities, including earnings-per-share momentum, earnings surprise and quarterly earnings revisions related to a particular issuer. The quantitative process provides the sub-adviser potential targets for further review and ultimate consideration for inclusion in the Fund s portfolio. The sub-adviser then supplements quantitative information with its in-depth knowledge of the companies in each industry and its economic requirements in deciding to add or remove a security from the Fund s portfolio. The primary consideration when adding a stock is confidence in a company s ability to grow its earnings and therefore a growing ability to pay income. In addition, a large emphasis is placed on quality and sustainability of earnings growth. Consideration is also made to the market environment, therefore allowing earnings growth to be measured on a relative basis. The emphasis on a company s quality of earnings and its ability to grow earnings is expected to result in a portfolio of securities that will generate dividend income. The Fund s portfolio is broadly diversified by industry and company. The Fund may invest a maximum of 30% of its assets (book value) in foreign securities. Once securities are acquired for the Fund, they are continuously monitored for changes in performance outlook. This means tracking and ranking daily the latest valuations, sales, cash flow, earnings surprises, etc. In the event of a holding falling below a threshold, the investment is formally reviewed. Similar to buy decisions, decisions to sell portfolio securities of the Fund are made after qualitative assessment. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s 66

71 objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund is permitted to enter into repurchase agreements and, subject to providing 60 days advance written notice to investors, the Fund may enter into reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into reverse repurchase agreements and securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Income Trust Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth of capital associated with Canadian equity securities. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series 67

72 to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain, in respect of Series B units and Series D units, as set out on page 22 and, in respect of Series A units, Series F units, Series T(A) units and Series T(B) units, as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

73 HARTFORD CANADIAN VALUE FUND Fund Details Type of Fund Canadian Equity Start Date September 1, 2004 (February 1, 2005 for Series A units, June 13, 2006 for Series F units and Series I units and July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Beutel, Goodman & Company Ltd., Toronto, Ontario (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Value Fund is to seek long-term capital appreciation by primarily investing in common shares of established Canadian issuers that are undervalued relative to their intrinsic value. To fulfill its objective, the investment policy of the Fund is to invest a majority of the Fund s total assets in a diversified portfolio primarily composed of shares of free cash flow generating Canadian companies trading at a significant discount to their intrinsic value. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The sub-adviser employs a bottom-up investment approach in constructing the investment portfolio of the Fund. The sub-adviser directs research to identify free cash flow generating companies trading at a sufficient discount to their intrinsic value. The sub-adviser uses quantitative and qualitative methods in the stock selection process and attempts to buy the best economic value in the market regardless of what sector the issuer operates in. Research efforts are directed to identify stocks that are undervalued in relation to the asset or business value of the issuer. If short-term results fall short of expectations, the intrinsic value of the underlying assets of the issuer should provide important downside protection. The Fund may invest a maximum of 30% of its assets (book value) in foreign securities. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for 69

74 temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Income Trust Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Large Unitholders As at April 16, 2010, the only unitholder of the Fund which, to the knowledge of the Manager, beneficially held more than 10% of the units of the Fund was Hartford Life & Accident Insurance Company, which held 11.88% of the units of the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth of capital associated with Canadian equity securities perceived to be under-valued by the broader market. This Fund may be suitable if you are investing for the longer term and are willing to accept a moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you 70

75 because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

76 HARTFORD CANADIAN BALANCED FUND Fund Details Type of Fund Canadian Equity Start Date May 1, 2000 (February 1, 2005 for Series A units, June 13, 2006 for Series F units and Series I units and July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Greystone Managed Investments Inc., Regina, Saskatchewan (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Balanced Fund is to seek the growth of long-term total return by investing primarily in Canadian stocks, bonds and other debt securities and money market instruments. The equity securities in which the Fund will invest are a diversified portfolio of primarily Canadian stocks and equivalent securities, and Canadian securities convertible into stocks. The debt securities in which the Fund will invest are a diversified portfolio of primarily Canadian fixed income securities, including Canadian federal, provincial or municipal government bonds, corporate bonds, assetbacked mortgage securities and short-term money market instruments. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The sub-adviser uses both quantitative and qualitative methods to evaluate equity securities for purchase or sale in the same manner employed by Hartford Canadian Stock Fund. The fixed income decision making process involves topdown and bottom-up strategies that are based upon fundamentally-oriented qualitative and quantitative analysis. Risk will be monitored throughout the process and managed at the portfolio level. The following active management techniques are employed by the sub-adviser: (1) interest rate anticipation; (2) yield curve positioning; (3) sector rotation; (4) credit quality strategies; and (5) individual security selection. The Fund is not restricted to any specific maturity term. The Fund may invest a maximum of 30% of its assets (book value) in foreign securities. Asset allocation decisions are based on the sub-adviser s judgment of the proposed investment environment for financial assets, relative fundamental values, the attractiveness of each asset category and expected future returns of each asset category. The sub-adviser does not attempt to engage in short-term market timing among asset categories, and asset allocation is at the sub-adviser s discretion. As a result, shifts in asset allocation are expected to be gradual and continuous and the Fund will normally have some portion of its assets invested in each asset category. There is no limit on the amount of fund assets that may be allocated to each asset category and the allocation is in the discretion of the Manager and the sub-adviser. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. The only derivatives used by the Fund to date are index participation units (i.e., exchangetraded funds). The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of 72

77 the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund is permitted to enter into repurchase agreements and, subject to providing 60 days advance written notice to investors, the Fund may enter into reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into reverse repurchase agreements or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. The Fund s portfolio turnover rate may be higher than 70%. The higher a Fund s portfolio turnover rate: the greater the chance you may receive taxable capital gains; and the greater the trading costs of the Fund. These costs are an expense of the Fund and are paid out of Fund assets, which may reduce your returns. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Income Trust Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth and income with reduced volatility through diversified exposure to both equity and fixed income securities. This Fund may be suitable if you are investing for a medium to longer term and are willing to accept a low to moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is 73

78 entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain, in respect of Series B units, Series D units, as set out on page 22 and, in respect of Series A units, Series F units, Series T(A) units and Series T(B) units, as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $23.06 $72.70 $ $ Series B units $25.63 $80.78 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $23.06 $72.70 $ $ Series T(B) units $25.63 $80.78 $ $

79 HARTFORD GLOBAL BALANCED FUND Fund Details Type of Fund Global Balanced Start Date January 31, 2007 (July 7, 2008 for Series T(A) units and Series T(B) units) Securities Offered Seven series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units, Series I units, Series T(A) units and Series T(B) units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Black Creek Investment Management Inc., Toronto, Ontario and Hartford Investment Management Company, Hartford, Connecticut (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadvisers. There may be difficulty enforcing any legal rights against Hartford Investment Management Company because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Global Balanced Fund is to seek the growth of long-term total return by investing primarily in a balanced portfolio of equities, convertible and fixed income securities issued by governments, supra-national agencies or corporations anywhere in the world. To achieve its objective, the investment policy of the Fund is to invest a majority of the Fund s assets in a portfolio consisting of equities, convertible and fixed income investments issued globally. The global equity securities in which the Fund will invest are a diversified portfolio of primarily globally competitive companies within growing sectors. The debt securities in which the Fund will invest are a diversified portfolio of primarily convertible and fixed income investments issued by governments, corporations and supra-national organizations throughout the world. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The global equities component of the Fund s portfolio will be invested by Black Creek Investment Management Inc. ( Black Creek ). Black Creek as sub-adviser takes a longterm view of the world and strives to understand the economics and characteristics of different businesses and industries. Black Creek as sub-adviser analyzes historical financial performance, trends and technological changes in the business, sensitivities to economic factors, and other factors which may affect the future economics of the business. Black Creek as sub-adviser strives to select companies with industry leadership, strong management, growing profits and potential for capital appreciation. The fixed income component of the Fund s portfolio will be invested by Hartford Investment Management Company ( Hartford Investment Management ). This fixed income component of the Fund will primarily be invested in global debt securities such as high quality government, nongovernment and corporate bonds. To a lesser extent, this component of the Fund may also invest in higher yielding, lower quality fixed income securities as well as other asset classes including, but not limited to, bank loans or loan participation interests in secured, second lien or unsecured variable, fixed or floating rate loans, convertible securities and preferred stock. Higher yielding, lower quality fixed income securities may include non-investment grade debt securities that are rated below BBB by Standard & Poors (or the equivalent rating from another rating agency), as well as debt obligations of issuers located in emerging markets. Hartford Investment Management will endeavour to ensure that at all times, the average credit quality of the fixed income component of the portfolio remains investment grade. In choosing investments, Hartford Investment Management as sub-adviser uses quantitative and qualitative factors, including credit analysis, security selection, adjustment of foreign exchange exposure and the Fund s average maturity. The investment team uses top-down analysis to determine which securities may benefit or be harmed from changes in the economy. The investment team then selects individual securities to buy or sell, which from a total return perspective, appear either attractive or unattractive. Asset allocation decisions are based on the judgment of both sub-advisers of the Fund in respect of the proposed investment environment for financial assets, relative fundamental values, the attractiveness of each asset category and expected future returns of each asset category. The sub-advisers do not attempt to engage in short-term market timing among asset categories. There is no limit on the amount of Fund assets that may be allocated to each asset category and the allocation is in the discretion of the 75

80 Manager and the sub-advisers. As a result, shifts in asset allocation are expected to be gradual and continuous and the Fund will normally have some portion of its assets invested in each asset category. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. The only derivatives used by the Fund to date are index participation units (i.e., exchangetraded funds). The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreement for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk Credit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investing in Bank Loans and Loan Participations; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking growth and income with reduced volatility through diversified exposure to both global equity and fixed income securities versus global equity securities alone. This Fund may be suitable if you are investing for a medium to longer term and are willing to accept a low to moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by the Fund on units (other than Series T(A) units or Series T(B) units) are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. For Series T(A) units and Series T(B) units, the Fund expects to make monthly distributions of return of capital, which can be paid in cash or reinvested in additional units of the Fund at the option of the unitholder. Any additional income and capital gains distributed by the Fund must be reinvested in additional units of the Fund. If the cash distributions to you are greater than the net increase in 76

81 value of your investment, the distributions will erode the value of your investment. At the beginning of each year, we will determine an annual distribution rate for Series T(A) units and Series T(B) units, which will be expressed as a fixed amount per unit. The current intention is to distribute approximately 6% of the net asset value per unit of the Series T(A) and Series T(B) units each year, based on the net asset value per unit of the series as at December 31st of the previous year. This distribution amount for any series of units may be changed, depending upon market conditions and the impact of the distribution on the Fund. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions on account of income and capital gains among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time on one or more series of units. The character, for Canadian tax purposes, of monthly distributions made on Series T(A) units and Series T(B) units during the year will not be determined with certainty until after the end of the Fund s taxation year. Distributions on Series T(A) units and Series T(B) units are not guaranteed to occur on a specific date and the Fund is not responsible for any fees or charges incurred by you because the Fund did not effect a distribution on a particular day. Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $24.09 $75.94 $ $ Series B units $26.65 $84.01 $ $ Series D units $20.50 $64.63 $ $ Series F units $15.38 $48.47 $ $ Series T(A) units $24.09 $75.94 $ $ Series T(B) units $26.65 $84.01 $ $ Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratio during the periods indicated remain the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses 77

82 HARTFORD CANADIAN BOND FUND Fund Details Type of Fund Canadian Bond Start Date May 1, 2000 (February 1, 2005 for Series A units and June 13, 2006 for Series F units) Securities Offered Five series of units of a mutual fund trust namely Series A units, Series B units, Series D units (1), Series F units and Series I units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Hartford Investment Management Company, Hartford, Connecticut (2) Notes: (1) Effective May 9, 2008, Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open Series D units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against this portfolio sub-adviser because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Bond Fund is to seek a high level of current income consistent with prudent risk by investing primarily in high quality Canadian bonds. To fulfil its fundamental investment objective, the investment policy of the Fund is to invest in a wide variety of Canadian bond issues including Canadian federal, provincial or municipal government bonds, corporate bonds and asset-backed mortgage securities and to invest in money market instruments. Although there is no minimum or maximum average term to maturity, the Fund focuses on intermediate to long term bonds. The investments are primarily denominated in Canadian dollars. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy In analyzing a prospective investment, the sub-adviser uses quantitative and qualitative factors, including credit analysis, security selection and adjustment of the Fund s average maturity. The Fund may invest a maximum of 30% of its assets (book value) in foreign securities. The sub-adviser intends to meet the Fund s investment objective by using top-down analysis to determine which industries may benefit from current and future changes in the economy. The investment process includes an investment strategy about the economic environment using such indicators as global monetary and fiscal policies, current economic data, market sentiment and technical conditions. The sub-adviser then selects individual securities that appear comparatively undervalued within selected industries by using fundamental analysis to identify specific sectors and securities to fulfil the objective of the Fund. The sub-adviser assesses such factors as a company s business environment, balance sheet, income statement, anticipated earnings and management team. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative that may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. The only derivatives used by the Fund to date are forward currency contracts. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund is permitted to enter into repurchase agreements and, subject to providing 60 days advance written notice to investors, the Fund may enter into reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into reverse repurchase agreements or securities lending agreements. See Risks of Using 78

83 Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Credit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Who Should Invest In This Fund? This Fund is intended for those investors seeking a high current income from investments primarily in mid to longterm bonds. This Fund may be suitable if you are investing for a medium term and are willing to accept a low degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund monthly on or about the last day of the month. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by a Fund on units are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain, in respect of Series B units and Series D units, as set out on page 22 and, in respect of Series A units and Series F units, the same as that incurred in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series D units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $12.81 $40.39 $70.80 $ Series B units $17.94 $56.55 $99.12 $ Series D units $12.81 $40.39 $70.80 $ Series F units $10.25 $32.31 $56.64 $

84 HARTFORD GLOBAL HIGH INCOME FUND Fund Details Type of Fund Global Bond Start Date July 7, 2008 Securities Offered Four series of units of a mutual fund trust namely Series A units, Series B units, Series F units and Series I units Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs and TFSAs Portfolio Sub-Adviser Hartford Investment Management Company, Hartford, Connecticut (1) Notes: (1) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadvisers. There may be difficulty enforcing any legal rights against Hartford Investment Management Company because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Global High Income Fund is to provide a high level of current income with the potential for capital appreciation. To fulfill its objective the investment policy of the Fund is to invest primarily in global debt securities. This may include high quality government, non-government and corporate bonds as well as higher yielding, lower quality fixed income securities including debt obligations of issuers located in emerging markets. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The Fund seeks to achieve its goal by investing primarily in global debt securities. The Fund focuses its investments, under normal circumstances, in highly rated securities as well as non-investment grade debt securities and foreign debt securities. Non-investment grade debt securities are those securities rated below BBB by Standard & Poor s (or the equivalent rating from another rating agency), or securities, which if unrated are determined by the Fund s sub-adviser, Hartford Investment Management Company ( Hartford Investment Management ), to be of comparable quality. Non investment grade debt securities are commonly referred to as high yield or junk bonds. Foreign securities are securities issued by foreign governments or corporations, including issuers located in emerging markets. Highly rated securities include, but are not limited to securities issued by sovereign governments, asset backed securities and commercial mortgage backed securities, in each case rated AA or higher by Standard & Poor s (or the equivalent rating from another rating agency). In the case of split-rated securities (i.e., securities assigned nonequivalent credit quality ratings, such as Baa by Moody s but BB by Standard & Poor s but B by Fitch) Hartford Investment Management will determine whether a particular security is considered investment grade or below-investment grade as follows: (a) if all three credit rating agencies have rated a security the median credit rating is used for this determination and (b) if only two credit rating agencies have rated a security, the lower (i.e., most conservative) credit rating is used. The Fund may also invest in other asset classes of Canadian or foreign issuers, including but not limited to bank loans or loan participation interests in secured, second lien or unsecured variable, fixed or floating rate loans, convertible securities, and preferred stock. The Fund may invest in debt securities of any maturity. The Fund will generally hold a diversified portfolio of investments in various sectors, although the Fund is not required to invest in all sectors at all times and may invest 100% of assets in one sector if conditions warrant providing that the overall portfolio maintains an investment grade average investment quality rating, defined as BBB or above by Standard & Poor s or the equivalent rating from another rating agency. The overall investment approach of the sub-adviser s team emphasizes security selection and maturity management. In choosing investments, Hartford Investment Management as sub-adviser uses quantitative and qualitative factors, including credit analysis, security selection, adjustment of foreign exchange exposure and the Fund s average maturity. The investment team uses top-down analysis to determine which securities may benefit or be harmed from current and future changes in the economy. The investment team then selects individual securities to buy or sell which, from a yield perspective, appear either attractive or unattractive. Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative which may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cash- 80

85 equivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. The Fund may use derivatives to minimize exposure to currency fluctuations between global currencies and the Canadian dollar. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. Subject to providing 60 days advance written notice to investors, the Fund may enter into repurchase, reverse repurchase and securities lending agreements. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements for a description of the nature of each type of agreement which may be used. The Fund may from time to time use repurchase, reverse repurchase and securities lending agreements to maximize returns and for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. Investing in and using repurchase, reverse repurchase and securities lending agreements are subject to certain risks. See Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements. The Fund will limit these transactions to parties that have, in the opinion of the Manager and its portfolio sub-advisers, adequate resources and financial strength. From time to time the Fund may invest some or all of its assets in cash or high quality money market securities for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Fund is in a defensive position, the Fund may lose the benefit of upswings and limit its ability to meet its investment objective. What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Asset Backed and Mortgage Backed Securities Risk; Cash Deposit Risk; Credit Risk; Concentration Risk; Interest Rate Sensitive Securities; International Investment Exposure; Investments in Emerging Countries; Market Risk; Risks of Investing in Bank Loans and Loan Participations; Risks of Investments in Other Mutual Funds; Risks of Large Unitholders and of Unit Transactions; Risks of Using Derivatives; Risks of Using Repurchase, Reverse Repurchase and Securities Lending Agreements; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. During the last year, the Fund held up to 11.03% of its net assets in Federal Republic of Germany Bonds. See Concentration Risk for a discussion of the potential risks associated with the Fund holding more than 10% of its net assets in any one issuer. Large Unitholders As at April 16, 2010, the only unitholders of the Fund which, to the knowledge of the Manager, beneficially held more than 10% of the units of the Fund were Hartford Life & Accident Insurance Company, Hartford Balanced Growth Portfolio and Hartford Balanced Portfolio, which held 38.55%, 10.89% and 11.06% respectively of the units of the Fund. Who Should Invest In This Fund? This Fund is intended for those investors seeking a high level of income with the potential for some capital gains through exposure to a diversified portfolio of fixed income securities. This Fund may be suitable if you are investing for a medium to long term and are willing to accept a low to moderate degree of risk. Distribution Policy Income tax legislation allows a qualifying mutual fund to elect to have a taxation year end of December 15 instead of December 31. The Fund has made such an election. The Fund distributes the income earned by the Fund and the net capital gains made by the Fund at least annually on a day between December 15 and December 31 to ensure there is no income tax payable by the Fund under the Tax Act. In addition, the Fund intends to distribute income earned by the Fund monthly on or about the last day of the month. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by a Fund on units are automatically reinvested in whole or fractional units of the Fund unless the unitholder makes a written request for payments in cash. No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is 81

86 entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary between series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratio during the periods indicated remain, as that incurred (on an annualized basis) in respect of the Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. No information is provided in respect of Series I units as management fees for Series I units are negotiated and paid directly by the investor, not by the Fund (which fees will not exceed the management fees applicable to the Series A units). Although your costs may be higher or lower, based on these assumptions your costs would be: For 1 year For 3 years For 5 years For 10 years Series A units $18.45 $58.16 $ $ Series B units $19.99 $63.01 $ $ Series F units $12.81 $40.39 $ $

87 HARTFORD CANADIAN MONEY MARKET FUND Fund Details Type of Fund Canadian Money Market Start Date May 1, 2000 (June 16, 2003 for DCA Series B units and DCA Series D units, February 1, 2005 for Series A units and DCA Series A units and July 7, 2008 for DCA Series F units) Securities Offered Seven series of units of a mutual fund trust namely: (i) Series A units; (ii) Series B units; (iii) Series D units (1) ; (iv) DCA Series A units, issuable in versions; (v) DCA Series B units, issuable in versions; (vi) DCA Series D units (1), issuable in versions; and (vii) DCA Series F units, issuable in versions. Eligible for Registered Plans Yes, units are qualified investments for RRSPs, RRIFs, DPSPs, RESPs, RDSPs, and TFSAs Portfolio Sub-Adviser Hartford Investment Management Company, Hartford, Connecticut (2) Notes: (1) Effective May 9, 2008, Series D and DCA Series D units of this Fund were closed to new subscriptions other than purchases through systematic investment programs or systematic transfer plans established prior to May 9, 2008 and automatically reinvested distributions. The Manager may re-open any of these series of units of this Fund to new subscriptions in the future. (2) The Manager is responsible for the investment advice and portfolio management services provided by the portfolio subadviser. There may be difficulty enforcing any legal rights against this portfolio sub-adviser because it is a foreign company and its assets are located outside Canada. What Does the Fund Invest in? Investment Objective The fundamental investment objective of Hartford Canadian Money Market Fund is to seek current income while preserving invested capital by investing primarily in short term Canadian money market instruments. To fulfil its fundamental investment objective, the investment policy of the Fund is to invest in Canadian money market instruments including, but not limited to, short-term government securities, commercial paper, bankers acceptances and other short-term instruments. The fundamental investment objective of the Fund is contained and/or incorporated by reference in its Declaration of Trust. It may be changed by the Manager only with the sanction of a resolution passed by a majority of the votes cast at a meeting of the unitholders of the Fund duly convened for that purpose and held in accordance with the applicable provisions of its Declaration of Trust. Investment Strategy The Fund attempts to preserve invested capital, produce a steady income stream and maintain a stable net asset value, although this cannot be guaranteed. In order to qualify as a money market fund within the meaning of National Instrument ( NI ), Hartford Canadian Money Market Fund has adopted the standard restrictions related to investments of money market funds set out in NI Subject to compliance with applicable regulatory notice and registration and proficiency requirements, the Fund is permitted, but not required, to use derivatives like options, futures, forward contracts, swaps, index participation units and other similar instruments for hedging and non-hedging purposes and for the purpose of making a profit provided the use of derivatives is consistent with the Fund s objectives and is permitted by Canadian securities laws. The Fund may implement hedging strategies. See Risks of Using Derivatives for a description of the nature of each type of derivative that may be used. The Fund may from time to time use these instruments to, among other reasons, gain exposure to the underlying securities, indexes or currencies without investing in them directly, manage risks and implement investment strategies more efficiently. Derivatives can only be used if sufficient cash or cashequivalent securities are held by the Funds in order that a leveraged portfolio cannot be created. Investing in and using derivative instruments are subject to certain risks. See Risks of Using Derivatives. No derivatives have been used by the Fund to date. The Fund is permitted to invest some of its assets in securities of other mutual funds, including other mutual funds managed by the Manager or an affiliate or associate of the Manager or securities of a foreign mutual fund, provided such investment is consistent with the Fund s objective and is permitted by Canadian securities laws. See Risks of Investments in Other Mutual Funds. With the exception of index participation units, the Fund does not intend to purchase securities of, or enter into specified derivative transactions for which the underlying interest is based on the securities of, other mutual funds. The Fund does not currently intend to enter into repurchase, reverse repurchase or securities lending agreements. The Fund purchases securities that the sub-adviser believes offer attractive returns relative to the risks undertaken. In addition, the average maturity of the portfolio will be adjusted in anticipation of interest rate changes. 83

88 What Are The Risks Of Investing In This Fund? The risks of investing in this Fund are: Cash Deposit Risk; Interest Rate Sensitive Securities; International Investment Exposure; Risks of Large Unitholders and of Unit Transactions; Risk of Using Derivatives; Risks of Yield Fluctuations; and Series Risk. You will find an explanation of each risk starting on page 2 of this document. Although the Fund intends to maintain a constant price for its units, there is no guarantee that the price will not go up and down. Description Of Securities Offered DCA Units Subject to the series closures noted on the cover page, the units offered by the Fund consist of seven (7) series of mutual fund units. The DCA Series A units have similar rights and privileges as the Series A units save and except that holders of the DCA Series A units are entitled to certain bonus yield payments from the Manager that may vary by version. Similarly, the DCA Series B units have similar rights and privileges as Series B units save and except that the holders of the DCA Series B units are entitled to certain bonus yield payments from the Manager that may vary by version. Similarly, the DCA Series D units have similar rights and privileges as the Series D units save and except that holders of the DCA Series D units are entitled to certain bonus yield payments from the Manager that may vary by version. Similarly, the DCA Series F units have similar rights and privileges as Series F units save and except that the holders of the DCA Series F units are entitled to certain bonus yield payments from the Manager that may vary by version. A purchaser of DCA units must participate in the DCA Program (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). Each version of a series of DCA units is and/or will be distinguishable from other versions of that series by the specified rate of annualized bonus yield (the Advantage Yield Rate ) and/or by the duration of the related DCA Program (i.e., six month or twelve month). The Fund currently offers Six Month Version 5 and Twelve Month Version 2 of each series of DCA units (other than DCA Series D units which were closed to new subscriptions effective May 9, 2008). The Advantage Yield Rates for Six Month Version 5 and Twelve Month Version 2 of each series of the DCA units offered is as follows: Version and Series of DCA unit Advantage Yield Rate* DCA Series A Six Month Version % DCA Series A Twelve Month Version % DCA Series B Six Month Version % DCA Series B Twelve Month Version % DCA Series F Six Month Version % DCA Series F Twelve Month Version % * Under the DCA Program, the Advantage Yield Rate is earned only on the DCA units outstanding from time to time and therefore is not earned on the entire original amount invested under the DCA Program due to regular transfers to the Target Fund(s) that will affect the daily accrual lowering the program yield. The program yield is calculated as the actual amounts to be earned at the applicable Advantage Yield Rate on an investor s total initial deposit under a DCA Program after the completion of the applicable DCA Program term. The program yield for the DCA Series A/Series B/Series F Six Month Version 5 would be 0.86% and for the DCA Series A/Series B/Series F Twelve Month Version 2 would be 1.07%. Pursuant to the Declaration of Trust, the Manager has agreed to credit daily to the account of each holder of a DCA unit an amount equal to the difference between the actual yield on your DCA units and the applicable Advantage Yield Rate for your DCA units. The accrued amount payable to you will be applied to the next scheduled transfer under the DCA Program and will be credited to the purchase/issuance of additional units of the applicable Fund(s) at that time at the then net asset value(s) per unit (see Optional Services and the DCA Program ). Any amounts so accrued at any month end in respect of outstanding DCA units that are not subject to a month end transfer/switch under a DCA Program will be applied to the purchase/issuance of additional DCA units of the same series for the account of the investor. The Advantage Yield Rate may vary between series of DCA units and may vary between versions of units of a particular DCA series. The Manager may, at any time, cease offering a particular version of units of a DCA series and may commence the offering of a new version of units of that DCA series with a new Advantage Yield Rate by amending this Prospectus, although such actions will not affect the Advantage Yield Rate of the versions of DCA units that are no longer to be offered for sale or the obligations of the Manager relating thereto. Reference should be made to the heading Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program Bonus Amount Payments for details as to the calculation of Bonus Amounts. Continuous or periodic investment plans such as the DCA Program neither assure a profit nor protect against a loss in declining markets. Because dollar cost averaging involves continuous investing regardless of fluctuating price levels, you should carefully consider your financial ability to continue investing through periods of fluctuating prices. 84

89 You should note that your investment in a DCA unit is not guaranteed as the Advantage Yield Rate does not affect or in any way guarantee the value of a DCA unit. Receipt by unitholders of the Advantage Yield Rate applicable to one or more versions of a series of DCA units is contingent at all times on the Manager s ability to make such advantage yield payments. There can be no guarantee that the Manager will at all times be able to make such payments. The Advantage Yield Rate refers to the net income generated in respect of a DCA unit and not the value of such a unit. As a result, the maximum payable daily by the Manager under its Advantage Yield Rate obligations in respect of a particular DCA unit is the applicable daily rate multiplied by the prior day s NAV of such unit. Under the DCA Program, the Advantage Yield Rate is earned only on the DCA units outstanding from time to time and therefore is not earned on the entire original amount invested under the DCA Program due to regular transfers to the Target Fund(s) that will affect the daily accrual, lowering the program yield. Who Should Invest In This Fund? This Fund is intended for those investors seeking a steady source of income with stability of capital as well as for those investors wishing to diversify an investment or retirement account with a conservative and liquid investment with minimal risk of a fluctuation in the Fund s net asset value. This Fund may be suitable if you are investing for a shorter term and are willing to accept a very low degree of risk. DCA units DCA units are suitable for investors who have predetermined the appropriateness of investing in one or more of the existing Funds (excluding Hartford Canadian Money Market Fund). The DCA units are for those investors seeking a short-term steady stream of income with stability of capital to fund systematic transferring of assets into equity or bond type mutual funds over a period of time. Distribution Policy The Fund distributes sufficient net taxable income and net taxable capital gains (if any) to its unitholders in the year earned to ensure there is no income tax payable by the Fund under the Tax Act. Where a unitholder has redeemed all his units of a particular series or series distributions in respect of such units shall be paid to the unitholder in cash at the time of the redemption payment. Distributions of income are expected to be made monthly on or about the last day of the month. For the Fund, income is accrued and credited as a distribution daily, but paid monthly to ensure there is no income tax payable by the Fund under the Tax Act. The timing of such distributions is within the discretion of the Manager. Additional distributions may be made at the Manager s discretion. Distributions paid by a Fund on units are automatically reinvested in whole or fractional units of the Fund of the same series or series as the units in respect of which such distribution is made unless the unitholder makes a written request for payments in cash. Holders of DCA units who are subject to a DCA Program will, pursuant to their DCA Program, have such distributions invested in units of one or other of the Funds (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ). No sales charge is payable upon automatic reinvestment of distributions. Distributions are only made to those unitholders who are unitholders of record at the time the amounts of such distributions are determined. Management fee distributions (where applicable) will be calculated and credited daily and distributed quarterly or on such other basis as the Manager may determine. Management fee distributions will generally be paid first out of net income and/or net capital gains of the Fund and otherwise as a return of capital. Where a unitholder who is entitled to management fee distributions redeems all of the applicable units, any unpaid management fee distributions shall be paid in cash at the time of the redemption rather than being reinvested in units. Details of distributions will be included in the Fund s financial statements and/or management reports of fund performance. Allocations of distributions among series of units are generally made based upon the income and capital gains of the Fund attributable to each series of units. These allocations vary among series to reflect different net asset values, management fees and other special expenses, if any. The Fund may distribute capital at any time. Fund Expenses Indirectly Borne by Investors The Fund pays for some expenses out of Fund assets. The following table is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The information presented in the table assumes that you invest $1,000 in units of the Fund for the time periods indicated and then sell all of your units at the end of those periods; your investment has an annual return of 5%; and the Fund s management expense ratios during the periods indicated remain: (i) as set out on page 22 for all series of DCA units of Hartford Canadian Money Market Fund and for Series B units and Series D units of Hartford Canadian Bond Fund, Hartford U.S. Stock Fund, Hartford Capital Appreciation Fund, Hartford Global Leaders Fund, Hartford Canadian Stock Fund and Hartford Canadian Balanced Fund; and (ii) in respect of all other series of units of the Funds, the same as incurred in respect of each Fund s financial year ended December 31, Please also see Fees and Expenses Payable Directly by You. Although your costs may be higher or lower, based on these assumptions your costs of investing in units of Hartford Canadian Money Market Fund that are not DCA units would be: For 1 year For 3 years For 5 years For 10 years Series A units $5.74 $18.10 $31.72 $72.20 Series B units $6.05 $19.06 $33.42 $76.06 Series D units $6.15 $19.39 $33.98 $77.35 Although your costs may be higher or lower, based on these assumptions and assuming that DCA units of Hartford Canadian Money Market Fund are switched into the Target 85

90 Fund with the highest management expense ratio during each period, your costs of investing in DCA Series A units, DCA Series B units, DCA Series D units and DCA Series F units that are transferred/switched under a DCA Program (see Optional Services and the DCA Program Hartford Dollar Cost Averaging Advantage Program ) to the corresponding series of units of a Target Fund would be: For 1 year For 3 years For 5 years For 10 years DCA Series A Six Month Version $21.20 $73.05 $ $ DCA Series A Twelve Month Version $17.75 $69.59 $ $ DCA Series B Six Month Version $23.23 $80.60 $ $ DCA Series B Twelve Month Version $19.13 $76.50 $ $ DCA Series D Six Month Version $17.83 $61.96 $ $ DCA Series D Twelve Month Version $13.03 $57.15 $ $ DCA Series F Six Month Version $14.31 $47.40 $ $ DCA Series F Twelve Month Version $13.03 $46.12 $ $

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92 Hartford Mutual Funds SIMPLIFIED PROSPECTUS DATED MAY 14, 2010 MANAGER, REGISTRAR AND TRANSFER AGENT Hartford Investments Canada Corp. 121 King Street West, Suite 1810 P.O. Box 114, Toronto, Ontario M5H 3T9 Telephone toll-free number AUDITORS PricewaterhouseCoopers LLP Royal Trust Tower, TD Centre, Suite 3000 Toronto, Ontario M5K 1G8 CUSTODIAN State Street Trust Company Canada 30 Adelaide Street East, Suite 1100 Toronto, Ontario M5C 3G6 Additional information about the Funds is available in each Fund s Annual Information Form, management report of fund performance and financial statements. These documents are incorporated by reference into this Simplified Prospectus, which means that they legally form part of this document just as if they were printed as part of this document. You can get a copy of these documents at your request, and at no cost, by calling toll-free at or, from your dealer, or by at Investor.Information@hartfordinvestments.ca or by writing to the Manager at the address above. These documents and other information about the Funds, such as information circulars and material contracts, are also available at Hartford Growth Portfolio Hartford Balanced Growth Portfolio Hartford Balanced Portfolio Hartford Conservative Portfolio Hartford Capital Appreciation Fund Hartford Global Leaders Fund Hartford International Equity Fund Hartford U.S. Dividend Growth Fund Hartford U.S. Stock Fund Hartford Canadian Dividend Fund Hartford Canadian Dividend Growth Fund Hartford Canadian Stock Fund Hartford Canadian Value Fund Hartford Canadian Balanced Fund Hartford Global Balanced Fund Hartford Canadian Bond Fund Hartford Global High Income Fund Hartford Canadian Money Market Fund