HIMCO VIT American Funds Asset Allocation Fund HIMCO VIT American Funds Blue Chip Income and Growth Fund HIMCO VIT American Funds Bond Fund HIMCO VIT American Funds Global Bond Fund HIMCO VIT American Funds Global Growth Fund HIMCO VIT American Funds Global Growth and Income Fund HIMCO VIT American Funds Global Small Capitalization Fund HIMCO VIT American Funds Growth Fund HIMCO VIT American Funds Growth-Income Fund HIMCO VIT American Funds International Fund HIMCO VIT American Funds New World Fund Supplement to Statutory Prospectuses, Summary Prospectuses, and Statement of Additional Information, each dated April 30, 2017, as supplemented to date October 4, 2017 Notice of Liquidation & Substitution At a special meeting of shareholders held on October 3, 2017, shareholders of each of the Funds listed above (each, a Feeder Fund and, collectively, the Feeder Funds ) approved an Agreement and Plan of Substitution, which will, subject to the conditions of the Agreement and Plan of Substitution, replace investors interests in each Feeder Fund with interests in each Master Fund as shown in the table below (each such transaction, a Substitution ). The Substitutions are expected to occur on or about November 10, 2017 (the Liquidation Date ), resulting in complete liquidation of the Feeder Funds. The Agreement and Plan of Substitution provides for: Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company (collectively, the Insurance Companies ) redeeming shares of each Feeder Fund; The Insurance Companies then purchasing Class 4 shares of each Master Fund with the cash proceeds from the redemption; and Each Substitution will take place at relative net asset value with no change in the dollar amount of any contract holder s beneficial investment in the Feeder Fund. Name of Feeder Fund HIMCO VIT American Funds Asset Allocation Fund HIMCO VIT American Funds Blue Chip Income and Growth Fund HIMCO VIT American Funds Bond Fund HIMCO VIT American Funds Global Bond Fund Name of Master Fund American Funds Insurance Series Asset Allocation Fund American Funds Insurance Series Blue Chip Income and Growth Fund American Funds Insurance Series Bond Fund American Funds Insurance Series Global Bond Fund
Name of Feeder Fund HIMCO VIT American Funds Global Growth Fund HIMCO VIT American Funds Global Growth and Income Fund HIMCO VIT American Funds Global Small Capitalization Fund HIMCO VIT American Funds Growth Fund HIMCO VIT American Funds Growth-Income Fund HIMCO VIT American Funds International Fund HIMCO VIT American Funds New World Fund Name of Master Fund American Funds Insurance Series Global Growth Fund American Funds Insurance Series Global Growth and Income Fund American Funds Insurance Series Global Small Capitalization Fund American Funds Insurance Series Growth Fund American Funds Insurance Series Growth-Income Fund American Funds Insurance Series International Fund American Funds Insurance Series New World Fund On or after October 4, 2017, each Feeder Fund shall cease its business and may depart from its stated investment objective and policies as it prepares to liquidate and distribute its assets. During this time, each Feeder Fund may invest some or all of its assets in cash and cash equivalents in preparation for the Substitution. Transfer Rights. At any time prior to the Liquidation Date, contract holders may transfer their beneficial interests in a Feeder Fund to any of the other investment options offered under their respective contracts, subject to the terms of the relevant contract prospectuses and contracts, and no transfer fees or other charges will be imposed. Following a Substitution, contract holders who had any beneficial interest automatically transferred from investing in a Feeder Fund to investing in the corresponding Master Fund may transfer such interests among any of the investment options available under their respective contracts in accordance with the terms of the contracts, also free of any transfer fees or other charges. Any such transfer will not be counted as one of the free transfers permitted per calendar year under the contracts, provided that the transfer occurs prior to, or within 90 days after, the date of the Substitution. Please note, however, that if you have elected an optional living and/or death benefit rider in your contract, any transfers may be subject to investment restrictions. Please see your contract prospectus and your contract for more information about the investment options available for your optional living and/or death benefit rider, if applicable. In addition, contract holders transfer rights are subject to any market timing/short-term trading provisions described in their respective contract prospectuses or their contracts. This Supplement should be retained with your Summary Prospectus, Prospectus, and SAI for future reference. 2 October 2017
HIMCO VIT American Funds Asset Allocation Fund HIMCO VIT American Funds Blue Chip Income and Growth Fund HIMCO VIT American Funds Bond Fund HIMCO VIT American Funds Global Bond Fund HIMCO VIT American Funds Global Growth Fund HIMCO VIT American Funds Global Growth and Income Fund HIMCO VIT American Funds Global Small Capitalization Fund HIMCO VIT American Funds Growth Fund HIMCO VIT American Funds Growth-Income Fund HIMCO VIT American Funds International Fund HIMCO VIT American Funds New World Fund Supplement to Statutory Prospectuses, Summary Prospectuses, and Statement of Additional Information, each dated April 30, 2017 June 23, 2017 Notice of Liquidation At meetings held on June 1, 2017 and June 19, 2017, the Board of Trustees of HIMCO Variable Insurance Trust (the Board ) approved (i) a Plan of Liquidation for each of the Funds listed above (each, a Feeder Fund and, collectively, the Feeder Funds ) and (ii) submission of an Agreement and Plan of Substitution for each Feeder Fund by Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company (collectively, the Insurance Companies ), who sponsor the variable life insurance policies and variable annuity contracts (collectively, the Contracts ) for which the Feeder Funds serve as investment vehicles, to the holders of such Contracts (the Contract Holders ). The Board determined that each Feeder Fund should be liquidated and dissolved contingent upon receiving Contract Holder approval of the applicable Agreement and Plan of Substitution. Agreement and Plan of Substitution. If Contract Holders approve the Agreement and Plan of Substitution for a Feeder Fund, the Feeder Fund will be liquidated on or about the close of business on November 10, 2017 (the Liquidation Date ), pursuant to the Plan of Liquidation approved by the Board on behalf of the Feeder Fund. Each Feeder Fund invests in Class 1 shares of a corresponding fund of the American Funds Insurance Series (each, a Master Fund and, collectively, the Master Funds ). The Agreement and Plan of Substitution provides that on or about November 10, 2017, the Insurance Companies will redeem shares of the Feeder Fund in complete liquidation of the Feeder Fund. The Insurance Companies will then purchase Class 4 shares of each Master Fund with the cash proceeds from the redemption (each such transaction, a Substitution ). Each Substitution will take place at relative net asset value with no change in the dollar amount of any Contract Holder s beneficial investment in the Feeder Fund. The Master Funds are the same funds as those in which the Feeder Funds currently invest. Each Substitution is not expected to increase a Contract Holder s fees or charges paid under the Contracts. In addition, the net portfolio expense ratio of each Master Fund is expected to be lower than that of the corresponding Feeder Fund immediately following the Substitution. If the Agreement and Plan of Substitution is approved, each Contract Holder s beneficial interest in shares of each Feeder Fund would be replaced with shares of the corresponding Master Fund as indicated below:
Name of Feeder Fund HIMCO VIT American Funds Asset Allocation Fund HIMCO VIT American Funds Blue Chip Income and Growth Fund HIMCO VIT American Funds Bond Fund HIMCO VIT American Funds Global Bond Fund HIMCO VIT American Funds Global Growth Fund HIMCO VIT American Funds Global Growth and Income Fund HIMCO VIT American Funds Global Small Capitalization Fund HIMCO VIT American Funds Growth Fund HIMCO VIT American Funds Growth-Income Fund HIMCO VIT American Funds International Fund HIMCO VIT American Funds New World Fund Name of Master Fund American Funds Insurance Series Asset Allocation Fund American Funds Insurance Series Blue Chip Income and Growth Fund American Funds Insurance Series Bond Fund American Funds Insurance Series Global Bond Fund American Funds Insurance Series Global Growth Fund American Funds Insurance Series Global Growth and Income Fund American Funds Insurance Series Global Small Capitalization Fund American Funds Insurance Series Growth Fund American Funds Insurance Series Growth-Income Fund American Funds Insurance Series International Fund American Funds Insurance Series New World Fund More information about the Agreement and Plan of Substitution and the Master Funds will be provided in proxy materials that are expected to be mailed in August 2017. If Contract Holders do not approve the Agreement and Plan of Substitution for a Feeder Fund, the Feeder Fund will not be liquidated and the Board will consider what, if any, steps to take. Apart from the proxy materials, no further notification regarding the liquidation of the Feeder Funds will be sent, unless circumstances change from those described above. Transfer Rights. At any time prior to the Liquidation Date, Contract Holders may transfer their beneficial interests in a Feeder Fund to any of the other investment options offered under their respective Contracts, subject to the terms of the relevant Contract prospectuses and Contracts, and no transfer fees or other charges will be imposed. Following a Substitution, Contract Holders who had any beneficial interest automatically transferred from investing in a Feeder Fund to investing in the corresponding Master Fund may transfer such interests among any of the investment options available under their respective Contracts in accordance with the terms of the Contracts, also free of any transfer fees or other charges. Any such transfer will not be counted as one of the free transfers permitted per calendar year under the Contracts, provided that the transfer occurs prior to, or within 90 days after, the date of the Substitution. Please note, however, that if you have elected an optional living and/or death benefit rider in your Contract, any transfers may be subject to investment restrictions. Please see your Contract prospectus and your Contract for more information about the investment options available for your optional living and/or death benefit rider, if applicable. In addition, Contract Holders transfer rights are subject to any market timing/short-term trading provisions described in their respective Contract prospectuses or their Contracts. The Insurance Companies will issue supplements to the prospectuses for its affected Contracts advising Contract Holders of their rights to transfer under their respective Contracts. This Supplement should be retained with your Summary Prospectus, Prospectus, and SAI for future reference. 2
HIMCO VIT American Funds International Fund Class IB: HVIRX Prospectus April 30, 2017 Mutual funds are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Because you could lose money by investing in the Fund, be sure to read all risk disclosures carefully before investing. As with all mutual funds, the Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.
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CONTENTS Summary Section...4 Master/Feeder Mutual Fund Structure...8 Additional Information Regarding Risks and Investment Strategies...9 Management of the Fund...12 Further Information on the Fund...14 Performance Notes...19 Financial Highlights...20 For More Information...22 3
HIMCO VIT AMERICAN FUNDS INTERNATIONAL FUND SUMMARY SECTION INVESTMENT GOAL. The HIMCO VIT American Funds International Fund seeks long-term growth of capital. 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 and would be higher if such fees and expenses were included. You should review your variable contract prospectus (or other disclosure document) for more information on those fees and expenses. Shareholder Fees (fees paid directly from your investment) Maximum sales charge (load) as a percentage of offering price Maximum deferred sales charge (load) Exchange fees Share Classes IB Not applicable Not applicable None Annual Fund Operating Expenses (expenses that are deducted from the fund s assets) IB Management fees ( 1),(2) 1.35% Distribution and service (12b-1) fees 0.25% Other expenses (3) 0.12% Total annual fund operating expenses 1.72% Fee waiver and/or expense reimbursement (2),(4) 0.63% Total annual fund operating expenses after fee waiver and/or expense reimbursement (3),(4) 1.09% (1) The amount shown under Management fees includes the management fee of the Master Fund. (2) Hartford Investment Management Company ( Hartford Investment Management ) has contractually agreed with HIMCO Variable Insurance Trust (the Trust ), on behalf of the Fund, to waive a portion of its management fee to the extent necessary to maintain its net management fee at 0.25% of average daily net assets per annum, for as long as the Fund is part of a masterfeeder fund structure. The Trust s Board of Trustees may change or eliminate this waiver if the fund structure changes. (3) The fee table and the example reflect the expenses of both the Fund and the Master Fund in which the Fund invests. (4) Hartford Investment Management 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 for the Class IB shares of the Fund at the annual rate of 1.09% of the Fund s average daily net assets. 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 example below is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that: Your investment has a 5% return each year The Fund s operating expenses remain the same (except that the example reflects the expense limitation arrangement 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 IB $ 111 $ 353 $ 614 $ 1,360 PORTFOLIO TURNOVER. The Master 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 Master Fund s portfolio turnover rate was 31% of the average value of its portfolio. 4
PRINCIPAL INVESTMENT STRATEGY. The Fund seeks to achieve its goal by investing all of its assets in Class 1 shares of the International Fund SM, a series of the American Funds Insurance Series ( Master Fund ). The Master Fund invests primarily in common stocks of companies domiciled outside the United States, including companies domiciled in developing countries, that the Master Fund s investment manager believes have the potential for growth. MAIN RISKS. The following are the primary risks of the Fund, which the Fund is exposed to through its investment in the Master Fund. Investors in the Fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. 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 or Master 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. Foreign Investments Risk Investments in foreign securities may be riskier than investments in U.S. securities. Differences between the U.S. and foreign regulatory regimes and securities markets, including the less stringent investor protection and disclosure standards of some foreign markets, as well as political and economic developments in foreign countries and regions, may affect the value of the Fund s investments in foreign securities. Changes in currency exchange rates may also adversely affect the Fund s foreign investments. Certain European countries in which the Fund may invest have recently experienced significant volatility in financial markets and may continue to do so in the future. The impact of the United Kingdom s intended departure from the European Union, commonly known as Brexit, and the potential departure of one or more other countries from the European Union may have significant political and financial consequences for global markets. This may adversely impact Fund performance. Emerging Markets Risk The risks related to investing in foreign securities are generally greater with respect to investments in companies that conduct their principal business activities in emerging markets or whose securities are traded principally on exchanges in emerging markets. The risks of investing in emerging markets include risks of illiquidity, increased price volatility, smaller market capitalizations, less government regulation, less extensive and less frequent accounting, financial and other reporting requirements, significant delays in settlement of trades, risk of loss resulting from problems in share registration and custody and substantial economic and political disruptions. Growth Orientation Risk The price of a growth company s stock may decrease, or it may not increase to the level that the Master Fund s investment manager had anticipated. In addition, growth stocks may be more volatile than other stocks because they are more sensitive to investors perceptions of the issuing company s growth potential. Also, the growth investing style may over time go in and out of favor. At times when the investing style used by the Master Fund is out of favor, the Master Fund may underperform other equity funds that use different investing styles. Investment Strategy Risk The investment strategy of the Master Fund s investment manager will influence performance significantly. If the investment strategy of the Master Fund s investment manager does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee that the Master Fund s investment objective will be achieved. Master-Feeder Structure Risk Because it invests in the Master Fund, the Fund is also subject to risks related to the master-feeder structure. Other feeder funds may also invest in a Master Fund. As shareholders of a Master Fund, feeder funds, including the Fund, vote on matters pertaining to their respective Master Fund. Feeder funds with a greater pro rata ownership in a Master Fund could have effective voting control of the operations of the Master Fund. Also, a large-scale redemption by another feeder fund may increase the proportionate share of the costs of a Master Fund borne by the remaining feeder fund shareholders, including the applicable fund. 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. 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 American Funds International HLS Fund (the Predecessor Fund ) as a result of the reorganization of the Predecessor Fund into the Fund on October 20, 2014. Accordingly, 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. 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: Show the performance of the Class 1 shares of the Master Fund for periods prior to May 1, 2008, the date the Fund commenced operations, adjusted to reflect the fees and expenses of the Fund in effect on May 1, 2008 Assume reinvestment of all dividends and distributions 5
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 variable annuity or variable life insurance contract level were included. The bar chart: Shows how the Fund s total return has varied from year to year Total returns by calendar year 50% 40% 42.75% 30% 20% 10% 19.66% 6.92% 17.58% 21.23% 3.27% 0% -10% -2.88% -4.83% -20% -14.23% -30% -40% -50% -42.33% 2007 2008 2009 2010 2011 2012 Highest/Lowest quarterly results during the periods shown in the bar chart were: Highest 24.36% (2nd quarter, 2009) Lowest -21.91% (3rd quarter, 2011) 2013 2014 2015 2016 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 this prospectus. Average annual total returns for periods ending 12/31/2016 1 Year 5 Years 10 Years Class IB 3.27% 6.35% 2.08% MSCI All Country World ex USA Index (reflects no deduction for fees, expenses or taxes) 5.01% 5.48% 1.42% MANAGEMENT. The Fund s investment manager is Hartford Investment Management. The Master Fund s investment manager is Capital Research and Management Company SM ( CRMC ). Portfolio Manager for the Experience in the Master Fund/Title (if applicable) Primary Title with CRMC (or Affiliate) Master Fund Sung Lee (Vice President) Partner Capital Research Global Investors 11 years L. Alfonso Barroso Partner Capital Research Global Investors 8 years Jesper Lyckeus Partner Capital Research Global Investors 10 years Christopher Thomsen Partner Capital Research Global Investors 11 years 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 ). You may invest indirectly in the Fund through your purchase of a variable annuity contract or variable life insurance contract issued by a separate account. Any minimum or subsequent investment requirements and redemption procedures are governed by the applicable separate account through which you invest. TAX INFORMATION. Under current law, 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 variable annuity contract or variable life insurance contract. For 6
information concerning the federal tax consequences to the purchasers of variable annuity and variable life insurance contracts, see the prospectus or other disclosure document for such investment. 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. 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 broker-dealers 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. 7
MASTER/FEEDER MUTUAL FUND STRUCTURE The Fund described in this prospectus operates as a feeder fund, which means it invests all of its assets in another mutual fund (the Master Fund ). The Master Fund is a series of American Funds Insurance Series ( American Funds ). The Fund has the same investment objective and limitations as the Master Fund in which it invests. The Fund does not buy investment securities directly. The Master Fund, on the other hand, invests directly in portfolio securities. Under the master/feeder structure, the Fund may withdraw its investment in the Master Fund if the Fund s Board of Trustees determines that it is in the best interests of the Fund and its shareholders to do so. Any such withdrawal could result in an inkind distribution of portfolio securities to the Fund (as opposed to a cash distribution from the Master Fund). The Fund could incur brokerage fees or other transaction costs in converting such securities to cash. In addition, a distribution in kind could result in a less diversified portfolio of investments or adversely affect the liquidity of the Fund. Upon any such withdrawal the Board would consider what action might be taken, including the investment of all of the assets of the Fund in another pooled investment entity, having Hartford Investment Management manage the Fund s assets either directly or with a sub-adviser, or taking other appropriate action. Investment of the Fund s assets in the Master Fund is not a fundamental investment policy of the Fund and a shareholder vote is not required for the Fund to withdraw its investment from the Master Fund. Because the Fund invests all of its assets in the Master Fund, the Fund and its shareholders will bear the fees and expenses of the Fund and the Master Fund, with the result that the Fund s expenses may be higher than those of other mutual funds that invest directly in securities. This structure is different from that of many other investment companies, which directly acquire and manage their own portfolio of securities. The Master Fund has other shareholders, each of whom will pay their proportionate share of the Master Fund s expenses. However, other investors in the Master Fund may bear different expenses and sales charges than the Fund, which would result in differences in returns received by those investors. As shareholders of the Master Fund, feeder funds, including the Fund, vote on matters pertaining to the Master Fund. Feeder funds with a greater pro rata ownership in the Master Fund could have effective voting control of the operations of the Master Fund. Also, a largescale redemption by another feeder fund may increase the proportionate share of the costs of the Master Fund borne by the remaining feeder fund shareholders, including the Fund. CRMC serves as investment manager to the Master Fund. CRMC is a wholly owned subsidiary of The Capital Group Companies, Inc. Information about the American Funds and CRMC is provided with their permission and based on information provided by CRMC or derived from the Master Fund s prospectus. The prospectus for the Master Fund is delivered together with this prospectus. 8
ADDITIONAL INFORMATION REGARDING RISKS AND INVESTMENT STRATEGIES INVESTMENT GOAL. The HIMCO VIT American Funds International Fund seeks long-term growth of capital. PRINCIPAL INVESTMENT STRATEGY. The Fund seeks to achieve its goal by investing all of its assets in Class 1 shares of the International Fund, a series of the American Funds Insurance Series ( Master Fund ). The Master Fund invests primarily in common stocks of companies domiciled outside the United States, including companies domiciled in developing countries, that the Master Fund s investment manager believes have the potential for growth. MAIN RISKS. The following are the primary risks of the Fund, which the Fund is exposed to through its investment in the Master Fund. Investors in the Fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. 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 or Master 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. Foreign Investments Risk Investments in foreign securities may be riskier than investments in U.S. securities and may also be less liquid and more difficult to value than securities of U.S. issuers. Foreign investments may be affected by the following: Currency Risk Securities and other instruments in which the Fund invests may be denominated or quoted in currencies other than the U.S. dollar. For this reason, changes in foreign currency exchange rates can affect the value of the Fund s portfolio. Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in that currency gains value because the currency is worth more U.S. dollars. changes in foreign or U.S. law or restrictions applicable to such investments and in exchange control regulations increased volatility substantially less volume on foreign stock markets and other securities markets higher commissions and dealer mark-ups inefficiencies in certain foreign clearance and settlement procedures that could result in an inability to execute transactions or delays in settlement less uniform accounting, auditing and financial reporting standards less publicly available information about a foreign issuer or borrower less government regulation unfavorable foreign tax laws political, social, economic or diplomatic developments in a foreign country or region differences in individual foreign economies. Governments in many emerging market countries participate to a significant degree in their economies and securities markets, which may impair investment and economic growth. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibility that conditions in one country or region might adversely impact issuers in a different country or region. Certain European countries in which the Master Fund may invest have recently experienced significant volatility in financial markets and may continue to do so in the future. The impact of the United Kingdom s intended departure from the European Union, commonly known as Brexit, and the potential departure of one or more other countries from the European Union may have significant political and financial consequences for global markets. These consequences include greater market volatility and illiquidity, currency fluctuations, deterioration in economic activity, a decrease in business confidence and an increased likelihood of a recession in such markets. Uncertainty relating to the withdrawal procedures and timeline may have adverse effects on asset valuations and the renegotiation of current trade agreements, as well as an increase in financial regulation in such markets. This may adversely impact Master Fund performance. Emerging Markets Risk The risks of foreign investments are usually greater for emerging markets. Investments in emerging markets may be considered speculative. Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. They are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging markets have far lower trading volumes and less liquidity than developed markets. Since these markets are often small, they may be more likely to suffer sharp and frequent price changes or long-term price depression because of adverse publicity, investor perceptions or the 9
actions of a few large investors. In addition, traditional measures of investment value used in the United States, such as price to earnings ratios, may not apply to certain small markets. Also, there may be less publicly available information about issuers in emerging markets than would be available about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. Many emerging markets have histories of political instability and abrupt changes in policies. As a result, their governments are more likely to take actions that are hostile or detrimental to private enterprise or foreign investment than those of more developed countries, including expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments. In such an event, it is possible that the Fund could lose the entire value of its investments in the affected market. Some countries have pervasive corruption and crime that may hinder investments. Certain emerging markets may also face other significant internal or external risks, including the risk of war, and ethnic, religious and racial conflicts. In addition, governments in many emerging market countries participate to a significant degree in their economies and securities markets, which may impair investment and economic growth. Emerging markets may also have differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments. Settlements of trades in emerging markets may be subject to significant delays. The inability to make intended purchases of securities due to settlement problems could cause missed investment opportunities. Losses could also be caused by an inability to dispose of portfolio securities due to settlement problems. Emerging markets may lack or be in the relatively early development of legal structures governing private and foreign investments and private property. In addition to withholding taxes on investment income, some countries with emerging markets may impose differential capital gains taxes on foreign investors. Growth Orientation Risk The price of a growth company s stock may decrease, or it may not increase to the level that the Master Fund s investment manager had anticipated. In addition, growth stocks may be more volatile than other stocks because they are more sensitive to investors perceptions of the issuing company s growth potential. Also, the growth investing style may over time go in and out of favor. At times when the investing style used by the Master Fund is out of favor, the Master Fund may underperform other equity funds that use different investing styles. Investment Strategy Risk The investment strategy of the Master Fund s investment manager will influence performance significantly. If the investment strategy of the Master Fund s investment manager does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee that the Master Fund s investment objective will be achieved. Master-Feeder Structure Risk Because it invests in the Master Fund, the Fund is also subject to risks related to the master-feeder structure. Other feeder funds may also invest in a Master Fund. As shareholders of a Master Fund, feeder funds, including the Fund, vote on matters pertaining to their respective Master Fund. Feeder funds with a greater pro rata ownership in a Master Fund could have effective voting control of the operations of the Master Fund. Also, a large-scale redemption by another feeder fund may increase the proportionate share of the costs of a Master Fund borne by the remaining feeder fund shareholders, including the applicable fund. 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. The Fund through its investment in the Master Fund is subject to certain additional risks, which are discussed below. Additional Risks and Investment Information. Many factors affect the Fund s performance. There is no assurance that the Fund will achieve its investment goal, and you should not consider any one fund alone to be a complete investment program. The different types of securities, investments, and investment techniques used by the Master Fund have attendant risks of varying degrees. The Statement of Additional Information ( SAI ) contains more detailed information about the Master Fund s investment policies and risks. Illiquid Investments Risk Illiquid investments are investments that the Master Fund cannot sell within seven days at approximately current value. Securities and other investments purchased by the Master Fund that are liquid at the time of purchase may subsequently become illiquid due to events relating to the issuer of the securities, market events, rising interest rates, economic conditions or investor perceptions. Securities with reduced liquidity or that become illiquid involve greater risk than securities with more liquid markets. Market quotations for illiquid securities may be volatile and/or subject to large spreads between bid and ask prices. If the Master Fund holds illiquid investments it may be unable to quickly sell them or may be able to sell them only at a price below current value. If one or more of the Master Fund s investments becomes illiquid, the Master Fund may exceed its limit on such investments. In this case, the Master Fund will consider appropriate steps to bring the Master Fund s holdings back under the limit. In October 2016, the Securities and Exchange Commission ( SEC ) adopted new regulations that may limit the Master Fund s ability to invest in illiquid and less liquid investments. These limitations may 10
adversely affect the Master Fund s performance and ability to pursue its investment objective when the regulations are expected to take effect on December 1, 2018. Restricted Securities Risk Restricted securities are securities that cannot be offered for public resale unless registered under the applicable securities laws or that have a contractual restriction that prohibits or limits their resale. They may include private placement securities that have not been registered under the applicable securities laws. Restricted securities may not be listed on an exchange and may have no active trading market. Restricted securities may be illiquid. The Master Fund may be unable to sell them on short notice or may be able to sell them only at a price below current value. Also, the Master Fund may get only limited information about the issuer of a restricted security, so it may be less able to predict a loss. In addition, if the Master Fund s management receives material nonpublic information about the issuer, the Master Fund may as a result be unable to sell the securities. Certain restricted securities may involve a high degree of business and financial risk and may result in substantial losses. Other Investment Companies Restrictions on Investments: Investments in securities of other investment companies are generally subject to limitations prescribed by the Investment Company Act of 1940, as amended (the 1940 Act ) and its rules, and applicable Securities and Exchange Commission (the SEC ) staff interpretations or applicable exemptive relief granted by the SEC. Because the Fund invests all of its assets in the Master Fund, the Fund and its shareholders will bear the fees and expenses of the Fund and the Master Fund, with the result that the Fund s expenses may be higher than those of other mutual funds that invest directly in securities. Use of Cash or Money Market Investments for Temporary Defensive Purposes The Master Fund may invest some or all of its assets in cash or high quality money market securities (including money market funds) to maintain sufficient liquidity or for temporary defensive purposes in response to adverse market, economic or political conditions. To the extent the Master Fund is in a defensive position, it may lose the benefit of market upswings and limit its ability to meet its investment goal. About The Fund s Investment Goal The Fund s investment goal may be changed by the Fund s Board of Trustees without approval of the shareholders of the Fund. The Fund s prospectus will be updated prior to any change in the Fund s investment goal. Consequences of Portfolio Trading Practices The Master Fund may, at times, engage in short-term trading. Short-term trading and higher rates of portfolio turnover could produce higher brokerage expenses and transaction costs for the Master Fund, and therefore could adversely affect the Master Fund s and the Fund s performance. The Master Fund is not managed to achieve a particular tax result for shareholders. Additional Investment Strategies and Risks The Master Fund may invest in various securities and engage in various investment techniques that are not the principal focus of the Master Fund and, therefore, are not described in this prospectus. These securities and techniques, together with their risks, are discussed in the Fund s Combined SAI, which may be obtained free of charge by contacting the Fund (see back cover for address, phone number and website address). When you request a copy of the Fund s Combined SAI, you will also receive a copy of the Master Fund s SAI. Disclosure of Portfolio Holdings A description of the Fund s policies and procedures regarding the release of portfolio holdings information is available in the Fund s SAI. However, under the master-feeder structure, the Fund s sole portfolio holding is shares in the Master Fund. A description of the Master Fund s policies and procedures with respect to the disclosure of the Master Fund s portfolio securities is available in the Master Fund s SAI. 11
MANAGEMENT OF THE FUND The Investment Manager to the Fund Hartford Investment Management is the investment manager to the Fund. Hartford Investment Management is a professional money management firm that provides services to investment companies, employee benefit plans, its affiliated insurance companies and other institutional accounts. Because the Fund invests all of its assets in the Master Fund, portfolio management services are currently provided at the Master Fund level by CRMC. Therefore, as investment manager, Hartford Investment Management will provide those services for the Fund that are normally provided by a fund s investment manager with the exception of portfolio management. These services include, but are not limited to, (i) recommending that the Board of Trustees invest the assets of the Fund in shares of the Master Fund; (ii) providing information to the Board of Trustees to enable it to make all necessary decisions regarding whether to invest the assets of the Fund in shares of the Master Fund; (iii) monitoring the ongoing investment performance of the Master Fund; (iv) monitoring the Fund s other service providers; (v) facilitating the distribution of Master Fund shareholder materials to Fund shareholders; and (vi) providing such other services as are necessary or appropriate to the efficient operation of the Fund with respect to its investment in the Master Fund. Hartford Investment Management is a wholly owned subsidiary of The Hartford Financial Services Group, Inc., a Connecticut financial services company. Hartford Investment Management had approximately $98.3 billion in assets under management as of December 31, 2016. Hartford Investment Management is principally located at One Hartford Plaza, Hartford, Connecticut 06155. The Fund s management fee as a percentage of the Fund s average daily net assets is 0.85%. A discussion regarding the basis for the Fund s Board of Trustees approval of the investment management agreement is available in the Fund s annual report to shareholders covering the period ending December 31, 2016. The Investment Manager to the Master Fund CRMC, an experienced investment management organization founded in 1931, serves as investment manager to the Master Fund and to other mutual funds. CRMC is a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California, 90071. CRMC manages the investment portfolios and business affairs of the Master Fund. CRMC manages equity assets through three equity investment divisions and fixed-income assets through its fixed-income investment division, Capital Fixed Income Investors. The three equity investment divisions Capital World Investors, Capital Research Global Investors and Capital International Investors make investment decisions independently of one another. As of December 31, 2016, CRMC managed more than $1.46 trillion in assets. The equity investment divisions may, in the future, be incorporated as wholly owned subsidiaries of CRMC. In that event, CRMC would continue to be the investment manager, and day-to-day investment management of equity assets would continue to be carried out through one or more of these subsidiaries. Although not currently contemplated, CRMC could incorporate its fixedincome division in the future and engage it to provide day-to-day investment management of fixed-income assets. CRMC and each of the funds it advises have received an exemptive order from the SEC that allows CRMC to use, upon approval of the Master Fund s board, its management subsidiaries and affiliates to provide day-to-day investment management services to the Master Fund, including making changes to the management subsidiaries and affiliates providing such services. The Master Fund s shareholders approved this arrangement; however, there is no assurance that CRMC will incorporate its investment divisions or exercise any authority granted to it under the exemptive order. In addition, shareholders of the Master Fund approved a proposal to reorganize the American Funds Insurance Series into a Delaware statutory trust. However, the American Funds Insurance Series reserves the right to delay implementing the reorganization. The annual management fee paid to CRMC for the year ended December 31, 2016, expressed as a percentage of the Master Fund s average daily net assets and not taking into account any applicable waivers, is 0.50%. The management fee payable by the Master Fund is calculated in accordance with a breakpoint schedule for the Master Fund. The Master Fund s breakpoint schedule is discussed in the Fund s SAI. A discussion regarding the basis for the Master Fund s Board of Trustees approval of the investment management agreements is available in the Master Fund s annual report to shareholders covering the period ending December 31, 2016. Portfolio Managers. The Fund s SAI provides additional information about the portfolio managers compensation, other accounts managed by the portfolio managers and the portfolio managers ownership of securities in the Master Fund. CRMC uses a system of multiple portfolio managers in managing mutual fund assets. Under this approach, the portfolio of the Master Fund is divided into segments managed by individual portfolio managers. Portfolio managers decide how their respective segments will be invested. In addition, CRMC s investment analysts may make investment decisions with respect to 12
a portion of the Master Fund s portfolio. Investment decisions are subject to the Master Fund s objective(s), policies and restrictions and the oversight of the appropriate investment-related committees of CRMC and its investment divisions. The primary individual portfolio managers for the Master Fund are: Portfolio Manager for the Master Portfolio Manager s Portfolio Manager s Role in Fund/Title Experience in the Primary Title with CRMC (or Affiliate) and Management of the (if applicable) Master Fund Investment Experience During Past Five Years Master Fund Sung Lee 11 years Partner Capital Research Global Investors. Serves as an equity portfolio (Vice President) Investment professional for 23 years, all with manager. CRMC or an affiliate. L. Alfonso Barroso 8 years Partner Capital Research Global Investors. Serves as an equity portfolio Investment professional for 23 years, all with manager. CRMC or an affiliate. Jesper Lyckeus 10 years (plus 8 years Partner Capital Research Global Investors. Serves as an equity portfolio of prior experience as Investment professional for 22 years in total; manager. an investment analyst 21 years with CRMC or an affiliate. for the Master Fund) Christopher Thomsen 11 years Partner Capital Research Global Investors. Serves as an equity portfolio Investment professional for 20 years, all with manager. CRMC or an affiliate. 13