HIMCO VIT Index Fund HIMCO VIT Portfolio Diversifier Fund

Transcription

1 HIMCO VIT Index Fund HIMCO VIT Portfolio Diversifier Fund Supplement to Statutory Prospectuses, Summary Prospectuses, and Combined Statement of Additional Information, each dated April 30, 2017 December 8, 2017 Notice of Proposed Reorganizations At a meeting held on December 1, 2017, the Board of Trustees of HIMCO Variable Insurance Trust (the Board ) unanimously approved (i) an Agreement and Plan of Reorganization for each of the Funds listed above (each, a Target Fund and, collectively, the Target Funds ) that would reorganize each Target Fund into a corresponding series (each, an Acquiring Fund ) of BlackRock Variable Series Funds, Inc. as shown in the table below (each, a Reorganization ); and (ii) a submission to shareholders regarding the proposals to approve the applicable Agreement and Plan of Reorganization. Shareholders of record of each Target Fund at the close of business on January 12, 2018 will be asked to vote to approve an Agreement and Plan of Reorganization with respect to each Target Fund. Shares of each Target Fund are sold through variable insurance contracts ( Contracts ) issued by Hartford Life Insurance Company and its affiliates (collectively, Hartford Life ) and one or more unaffiliated insurance companies (together with Hartford Life, the Insurance Companies ). Each Insurance Company will vote its shares held in the applicable Target Fund in accordance with instructions received from the holders of its Contracts ( Contract Holders ). As a Contract Holder, you have the right to instruct your Insurance Company on how to vote the shares of the Target Funds that are attributable to your Contract. Name of Target Fund and Class of Shares HIMCO VIT Index Fund Class IA Shares Class IB Shares HIMCO VIT Portfolio Diversifier Fund Class IB Shares Name of Acquiring Fund and Class of Shares BlackRock S&P 500 Index V.I. Fund Class I Shares Class III Shares BlackRock Managed Volatility V.I. Fund Class III Shares Agreement and Plan of Reorganization. If approved by shareholders of each Target Fund, each Reorganization is expected to occur on or about April 23, The BlackRock S&P 500 Index V.I. Fund will issue Class I and Class III shares that have an aggregate net asset value ( NAV ) equal to the aggregate NAV of Class IA and Class IB shares, respectively, of the HIMCO VIT Index Fund outstanding immediately before the Reorganization. The BlackRock Managed Volatility V.I. Fund will issue Class III shares that have an aggregate NAV equal to the aggregate NAV of Class IB shares of the HIMCO VIT Portfolio Diversifier Fund outstanding immediately before the Reorganization. Accordingly, each Contract Holder s account value allocated to an Acquiring Fund immediately after the Reorganization will be equal to the Contract Holder s account value allocated to the corresponding Target Fund immediately before the Reorganization. The Reorganizations will not cause fees and charges currently being paid under the Contracts by the existing Contract Holders to be greater after the Reorganizations than before the Reorganizations, and the total net portfolio expense ratios of the corresponding share classes of each Acquiring Fund are expected to be lower than those of Class IA and Class IB shares of the corresponding Target Fund, as applicable, immediately following the Reorganizations. More information about the Agreement and Plan of Reorganization and the Acquiring Funds will be provided in a Combined Prospectus/Proxy Statement that is expected to be mailed in February If Contract Holders do not approve the Agreement and Plan of Reorganization for a Target Fund, the Target Fund will not be reorganized pursuant to the applicable Agreement and Plan of Reorganization, and the Board will consider what, if any, steps to take. Apart from the Combined Prospectus/Proxy Statement, no further notification regarding the Reorganizations of the Target Funds will be sent, unless circumstances change from those described above.

2 Transfer Rights. Neither the rights of Contract Holders nor the obligations of the Insurance Companies under the Contracts will be altered as a result of the Reorganizations; however, investment restrictions under certain Contracts, if applicable, may require Contract Holders to remain invested in HIMCO VIT Portfolio Diversifier Fund before the Reorganization and BlackRock Managed Volatility V.I. Fund after the Reorganization. In addition, the transfer of a Contract Holder s account value from a Subaccount investing in a Target Fund as a result of the Reorganization will not be counted against any limitation on the number of transfers that may be performed. Contract Holders who own an optional living and/or death benefit rider under their Contract may be required to comply with investment restrictions in order to maintain such rider. This means that Contract Holders may be restricted to allocating some or all of their account value to certain funds. In no event will a Contract Holder lose his or her rider as a result of the Reorganizations provided the Contract Holder does not make any transfers before or after the Reorganizations. In other words, if the Target Fund was permitted under a Contract rider s investment restrictions, the corresponding Acquiring Fund will also be permitted. Hartford Life will, and each other Insurance Company may, provide a supplement to its Contract prospectus, which would describe in more detail how the proposed Reorganization impacts the Contract, including changes to investment restrictions that may apply to Contract Holders. This Supplement should be retained with your Summary Prospectus, Prospectus, and SAI for future reference. 2 December 2017

3 April 30, 2017 HIMCO VIT Index Fund Summary Prospectus Class IA: HVIAX Class IB: HVIIX Before you invest, you may want to review the Fund s Prospectus, which contains more information about the Fund and its risks. You can find the Fund s Prospectus and other information about the Fund online at You can also get this information at no cost by calling or by sending an to hvitfunds@himco.com. The Fund s Prospectus and Statement of Additional Information, both dated April 30, 2017, along with the financial statements included in the Fund s most recent annual report dated December 31, 2016 are incorporated by reference into this Summary Prospectus. The Fund s Statement of Additional Information and annual report may be obtained, free of charge, in the same manner as the Fund s Prospectus.

4 HIMCO VIT INDEX FUND SUMMARY INVESTMENT GOAL. The Fund seeks to provide investment results which approximate the price and yield performance of publicly traded common stocks in the aggregate. YOUR EXPENSES. The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Please note that fees and expenses in this table and the examples below do not include fees and expenses that will be applied at the variable annuity or variable life insurance contract level or by a qualified employee benefit plan and would be higher if such fees and expenses were included. You should review your variable contract prospectus (or other disclosure document) or plan documents for more information on those fees and expenses. Shareholder Fees (fees paid directly from your investment) Share Classes IA IB Maximum sales charge (load) as a percentage of offering price Not applicable Not applicable Maximum deferred sales charge (load) Not applicable Not applicable Exchange fees None None Annual Fund Operating Expenses (expenses that are deducted from the fund s assets) IA IB Management fees 0.30% 0.30% Distribution and service (12b-1) fees None 0.25% Other expenses 0.08% 0.08% Total annual fund operating expenses 0.38% 0.63% Fee waiver and/or expense reimbursement (1) 0.05% 0.05% Total annual fund operating expenses after fee waiver and/or expense reimbursement 0.33% 0.58% (1) Hartford Investment Management Company has contractually agreed to reimburse expenses (exclusive of taxes, interest expense, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to the extent necessary to maintain total annual operating expenses as follows: 0.33% (Class IA) and 0.58% (Class IB). This contractual arrangement will remain in effect until April 30, 2018, and shall renew automatically for one-year terms unless the investment manager provides written notice of termination prior to the start of the next term or upon approval of the Board of Trustees of the Fund. EXAMPLE. The examples below are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that: Your investment has a 5% return each year The Fund s operating expenses remain the same (except that the examples reflect the expense limitation arrangements for only the first year) You reinvest all dividends and distributions. Your actual costs may be higher or lower. Based on these assumptions, for every $10,000 invested, you would pay the following expenses if you sell all of your shares at the end of each time period indicated: Expenses (with or without redemption) Year 1 Year 3 Year 5 Year 10 IA $ 34 $ 117 $ 208 $ 476 IB $ 59 $ 197 $ 346 $ 782 PORTFOLIO TURNOVER. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual Fund operating expenses or in the examples, affect the Fund s performance. During the most recent fiscal year, the Fund s portfolio turnover rate was 12% of the average value of its portfolio. PRINCIPAL INVESTMENT STRATEGY. The Fund uses the Standard & Poor s 500 Index (the Index ) as its standard performance comparison because it represents a significant proportion of the total market value of all common stocks, is well known to investors and, in the opinion of the Fund s investment manager, Hartford Investment Management Company ( Hartford Investment Management ), is representative of the performance of publicly-traded common stocks. Therefore, the Fund attempts to approximate the capital performance and dividend income of the Index. The Index is comprised of 500 selected 2

5 companies, most of which are listed on the New York Stock Exchange. The portfolio managers generally invest in no fewer than 495 companies included in the Index. Hartford Investment Management selects stocks for the Fund s portfolio after taking into account their individual weights in the Index. Hartford Investment Management does not attempt to manage the Fund s portfolio in the traditional sense, using economic, financial and market analysis, nor does the adverse financial situation of a company directly result in its elimination from the Fund s portfolio unless, of course, the company is removed from the Index. MAIN RISKS. The primary risks of investing in the Fund are described below. When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money as a result of your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. As with any fund, there is no guarantee that the Fund will achieve its goal. For more information regarding risks and investment matters please see Additional Information Regarding Risks and Investment Strategies in this prospectus. Equity Securities Risk The risk that the price of equity or equity-related securities may decline due to changes in a company s financial condition and overall market and economic conditions. Market Risk Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Securities may decline in value due to the activities and financial prospects of individual companies or to general market and economic movements and trends, including adverse changes to credit markets. Index Strategy Risk The Fund is not actively managed, but instead is designed to match the Index. Therefore, the adverse performance of a particular stock ordinarily will not result in the elimination of the stock from the Fund s portfolio. The Fund will remain invested in stocks even when stock prices are generally falling. Large Cap Stock Risk Larger companies may not be able to respond as quickly to competitive challenges or to changes in technology, product or other market conditions. They also may not be able to maintain high growth rates compared to smaller well-managed companies, particularly during extended periods of economic expansion. Tracking Error Risk The Fund s performance may not match or correlate to that of its reference Index, either on a daily or aggregate basis. Factors such as cash flows, Fund expenses, imperfect correlation between the Fund s portfolio and the component securities of the Index, rounding of share prices, asset valuation, timing variances, changes to the composition of the Index and regulatory requirements may cause the Fund s performance to diverge from the performance of the Index. Tracking error risk may cause the Fund s performance to be less than expected. The Fund is subject to certain other risks, which are described elsewhere in the Fund s statutory prospectus. PAST PERFORMANCE. The performance information below provides an indication of the risks of investing in the Fund. The Fund is the successor to the investment performance of the Hartford Index HLS Fund (the Predecessor Fund ) as a result of the reorganization of the Predecessor Fund into the Fund on October 20, Therefore, the performance information shown below for periods prior to October 20, 2014 is that of the Predecessor Fund. Hartford Funds Management Company, LLC served as the investment manager to the Predecessor Fund and Hartford Investment Management, the Fund s investment manager, served as the sub-adviser to the Predecessor Fund. The Predecessor Fund had the same investment objective and strategies as the Fund. Keep in mind that past performance does not indicate future results. The returns: Assume reinvestment of all dividends and distributions Would be lower if the Fund s operating expenses had not been limited Would be lower if the effect of sales charges or other fees that may be applied at the contract or plan level were included. The bar chart: Shows how the Fund s total return has varied from year to year Shows the returns of the Fund s Class IA shares. Because all of the Fund s shares are invested in the same portfolio of securities, returns for the Fund s Class IB shares differ only to the extent that the classes do not have the same expenses. 3

6 Total returns by calendar year 40% 30% 26.15% 31.95% 20% 14.73% 15.63% 13.33% 11.59% 10% 0% 5.20% 1.81% 1.06% -10% -20% -30% -40% % -50% Highest/Lowest quarterly results during the periods shown in the bar chart were: Highest 15.80% (2nd quarter, 2009) Lowest % (4th quarter, 2008) AVERAGE ANNUAL TOTAL RETURNS. The table below shows returns for the Fund over time compared to those of a broad-based market index. For more information regarding returns see the Performance Notes section in the Fund s statutory prospectus. Average annual total returns for periods ending 12/31/16 Share Classes 1 Year 5 Years 10 Years Class IA 11.59% 14.29% 6.63% Class IB 11.34% 14.00% 6.37% S&P 500 Index (reflects no deduction for fees, expenses or taxes) 11.96% 14.66% 6.95% MANAGEMENT. The Fund s investment manager is Hartford Investment Management. Portfolio Managers Title Involved with Fund Since Edward Caputo, CFA Senior Vice President 2014 Paul Bukowski, CFA Executive Vice President and Head of Quantitative Equities and Asset Allocation 2014 PURCHASE AND SALE OF FUND SHARES. The Fund sells its shares at net asset value ( NAV ) directly to variable annuity and variable life insurance separate accounts of Hartford Life Insurance Company and its affiliates (collectively Hartford Life ) and one or more unaffiliated insurance companies (each, an Insurance Company and collectively, the Insurance Companies ), and to certain qualified employee benefit plans. You may invest indirectly in the Fund through your purchase of a variable annuity or variable life insurance contract issued by a separate account or through a qualified employee benefit plan. Any minimum or subsequent investment requirements and redemption procedures are governed by the applicable separate account or plan through which you invest. TAX INFORMATION. Under current law, qualified employee benefit plan participants and owners of variable annuity and variable life insurance contracts that have invested in the Fund are not subject to federal income tax on Fund earnings and distributions or on gains realized upon the sale or redemption of Fund shares until such amounts are withdrawn from the employee benefit plan or variable contract. For information concerning the federal tax consequences to the purchasers of a variable annuity or variable life insurance contract, see the prospectus or other disclosure document for such variable contract. PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES. The Fund is only available as an underlying investment for certain variable annuity and variable life insurance contracts and qualified employee benefit plans. The Fund and its related companies may make payments to the sponsoring insurance company (or its affiliates) and to broker-dealers and other financial intermediaries for distribution and/or other services. These payments may be a factor that the insurance company considers in including the Fund as an underlying investment option in the variable contract. Payments to brokerdealers and other financial intermediaries may create a conflict of interest by influencing the broker-dealer or other financial intermediary to recommend a variable product and/or the Fund over another investment. Ask your financial adviser or visit the website of the insurance company or the financial intermediary for more information. The disclosure document for your variable contract may contain additional information about these payments. SEC File Number: HIMCO Variable Insurance Trust HVIT SUMPRO IX April 30, 2017