<PAGE>
Mutual of America
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
&
SEMI-ANNUAL REPORTS OF
MUTUAL OF AMERICA INVESTMENT CORPORATION
SCUDDER VARIABLE LIFE INVESTMENT FUND
AMERICAN CENTURY VP CAPITAL APPRECIATION FUND
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND II:
CONTRAFUND AND ASSET MANAGER PORTFOLIOS
JUNE 30, 1997
This report is not to be construed as an offering for sale of any Variable
Product. No offering is made except in conjunction with a prospectus which must
precede or accompany this report.
<PAGE>
MUTUAL OF AMERICA
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
JUNE 30, 1997
Dear Participant:
We are pleased to send you the 1997 Semi-Annual Report of Mutual of
America's Separate Account No. 2. This Account is an investment vehicle for
participants in our Tax-Deferred Annuity, Voluntary Employee Contributions,
and Individual Retirement Annuity programs, Thrift and Section 457 Deferred
Compensation Plans, as well as for Flexible Premium Annuity policyholders.
Separate Account No. 2 consists of sixteen distinct funds. Each invests in
shares of one of eight funds of Mutual of America Investment Corporation (the
"Investment Company"): the Money Market, All America, Equity Index, Bond,
Short-Term Bond, Mid-Term Bond, Composite and Aggressive Equity Funds; three
portfolios of Scudder Variable Life Investment Fund ("Scudder"): the Bond,
Capital Growth and International Portfolios; the VP Capital Appreciation Fund
(formerly TCI Growth) of American Century Variable Portfolios, Inc. ("American
Century"); the Balanced Portfolio of Acacia Capital Corporation's Calvert
Responsibly Invested Portfolios ("Calvert"); the Equity-Income Portfolio of
Fidelity Investments Variable Insurance Products Fund ("Fidelity VIP"); and
the Contrafund and Asset Manager Portfolios of Fidelity Investments Variable
Insurance Products Fund II ("Fidelity VIP II").
Each of the funds of Separate Account No. 2 owns shares in a similarly named
fund of the Investment Company, portfolio of Scudder, fund of American
Century, portfolio of Calvert, portfolio of Fidelity VIP and portfolio of
Fidelity VIP II. The investment results of each of the funds of Separate
Account No. 2 are based on the performance of the corresponding funds or
portfolios of the Investment Company, Scudder, American Century, Calvert,
Fidelity VIP and Fidelity VIP II.
The Separate Account funds invest in funds and portfolios which have the
following investment objectives:
THE INVESTMENT COMPANY MONEY MARKET FUND: This Fund seeks to obtain high
current income to the extent consistent with the maintenance of liquidity,
investment quality and stability of capital through investments in money
market instruments and other short-term debt securities.
THE INVESTMENT COMPANY ALL AMERICA FUND: The investment objective for
approximately 60% of the assets of this Fund (the "Indexed Assets") is to
provide investment results that, to the extent practical, correspond to the
performance of the Standard & Poor's Composite Index of 500 Stocks (the
"S&P 500"). The Indexed Assets are invested in the same manner as the
Equity Index Fund described below. The investment objective for the
remaining approximately 40% of the assets (the "Active Assets") is to
achieve a high level of total return, through both appreciation of capital
and, to a lesser extent, current income, by means of a diversified
portfolio of securities that may include common stocks, securities
convertible into common stocks, bonds and money market instruments.
THE INVESTMENT COMPANY EQUITY INDEX FUND: This Fund seeks to duplicate,
as closely as possible, the investment performance of the S&P 500 by
investing in approximately 500 publicly traded stocks that comprise the S&P
500 ("Standard & Poor's 500", "S&P" and "S&P 500" are trademarks of
Standard & Poor's Corporation).
THE INVESTMENT COMPANY BOND FUND: This Fund seeks a high level of current
income, together with preservation of capital, through investments in such
securities as U.S. Government, corporate and other notes and bonds.
THE INVESTMENT COMPANY SHORT-TERM BOND FUND: This Fund seeks a high level
of current income, together with preservation of capital, through
investments in such securities as U.S. Government, corporate and other
notes and bonds with an average maturity of one to three years.
THE INVESTMENT COMPANY MID-TERM BOND FUND: This Fund seeks a high level
of current income, together with preservation of capital, through
investments in such securities as U.S. Government, corporate and other
notes and bonds with an average maturity of three to seven years.
THE INVESTMENT COMPANY COMPOSITE FUND: This Fund seeks a high total rate
of return on investments, through both appreciation of capital and current
income, through investments in a diversified portfolio of common stocks,
bonds and money market instruments.
THE INVESTMENT COMPANY AGGRESSIVE EQUITY FUND: The investment objective
for approximately half of the assets of the Fund is to achieve capital
appreciation by investing in companies believed to possess above-average
growth potential. Growth can be in the areas of earnings or gross sales
which can be measured in either dollars or in unit volume. The investment
objective for the other half of the assets of the Fund is to achieve
capital appreciation by investing in companies believed to possess valuable
assets or whose securities are undervalued in the marketplace in relation
to factors such as a company's assets, earnings or growth potential.
I
<PAGE>
THE SCUDDER BOND PORTFOLIO: This Portfolio seeks a high level of income
consistent with a high quality portfolio of debt securities.
THE SCUDDER CAPITAL GROWTH PORTFOLIO: This Portfolio seeks to maximize
long-term capital growth through a broad and flexible investment program.
The Portfolio invests in marketable securities, principally common stocks,
and consistent with its objective, may invest in preferred stocks and
short-term debt instruments.
THE SCUDDER INTERNATIONAL PORTFOLIO: This Portfolio seeks long-term
capital growth through investing primarily in diversified holdings of
marketable foreign equity investments in companies, wherever organized,
which do business primarily outside the United States and which are listed
on foreign exchanges.
VP CAPITAL APPRECIATION FUND: This Fund seeks capital growth over time by
investing primarily in common stocks (including securities convertible into
common stocks and, at times, well-established foreign stocks) of growth
companies across all capitalization ranges that are considered by
management to have better-than-average prospects for appreciation. Prior to
May 1, 1997, this Fund was known as TCI Growth Fund.
THE CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO: This Portfolio seeks
a total return above the rate of inflation through an actively managed
portfolio of stocks, bonds and money market instruments selected with a
concern for the social impact of each investment.
THE FIDELITY VIP EQUITY-INCOME PORTFOLIO: This Portfolio seeks reasonable
income by investing primarily in income-producing equity securities while
considering the potential for capital appreciation. Secondarily, the
Portfolio's goal is to achieve a yield that exceeds the composite yield on
the securities comprising the S&P 500.
THE FIDELITY VIP II CONTRAFUND PORTFOLIO: This Portfolio seeks long-term
capital appreciation by investing primarily in a broad variety of common
stocks using both growth-oriented and contrarian disciplines.
THE FIDELITY VIP II ASSET MANAGER PORTFOLIO: This Portfolio seeks high
long-term return with reduced risk by using a broadly diversified mix of
stocks, bonds and short-term fixed-income investments.
For the six months ended June 30, 1997, the following total returns were
experienced in these sixteen Separate Account funds:
<TABLE>
<S> <C>
Investment Company Money Market Fund(1)............................. + 1.9%
Investment Company All America Fund................................. +16.1%
Investment Company Equity Index Fund................................ +19.6%
Investment Company Bond Fund........................................ + 2.1%
Investment Company Short-Term Bond Fund............................. + 2.0%
Investment Company Mid-Term Bond Fund............................... + 2.0%
Investment Company Composite Fund................................... + 6.4%
Investment Company Aggressive Equity Fund........................... +12.4%
Scudder Bond Fund................................................... + 2.3%
Scudder Capital Growth Fund......................................... +23.1%
Scudder International Fund.......................................... +13.2%
American Century VP Capital Appreciation Fund....................... - 4.1%
Calvert Responsibly Invested Balanced Fund.......................... + 9.6%
Fidelity VIP Equity-Income Fund..................................... +15.6%
Fidelity VIP II Contrafund.......................................... +10.8%
Fidelity VIP II Asset Manager Fund.................................. +10.4%
</TABLE>
- -------
(1) The current seven-day net annualized yield as of 8/19/97 was 3.95% and is
not necessarily indicative of future actual yields.
Total return is equal to the changes in the value of a unit of participation
in a fund from the beginning to the end of the specified period. It reflects
investment income earned and reinvested plus the changes in the market value
(whether realized or unrealized) of the securities in the respective fund or
portfolio of the Investment Company, Scudder, American Century, Calvert or
Fidelity during the indicated period. Results are net of all charges,
including a monthly service charge (assessed against an average account
balance for all individually allocated contracts) based upon a hypothetical
$1,000 invested at the beginning of the period. These returns are not
guaranteed and are not necessarily indicative of the future investment
performance of the particular fund. Withdrawals and contributions made within
a period would experience different rates of return based on the respective
unit values on the dates of such transactions.
II
<PAGE>
This report includes financial statements for each fund of Separate Account
No. 2. Following this report are the financial statements for each similarly
named fund of the Investment Company, portfolio of Scudder, fund of American
Century, portfolio of Calvert and portfolios of Fidelity VIP and VIP II.
I hope you will find this report helpful and informative.
Sincerely,
/s/ Manfred Altstadt
Manfred Altstadt
Senior Executive Vice President
and Chief Financial Officer,
Mutual of America Life Insurance Company
III
<PAGE>
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
SEMI-ANNUAL REPORT OF MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2........... I
Statement of Assets and Liabilities..................................... VI
Statement of Operations................................................. VIII
Statements of Changes in Net Assets..................................... X
Notes to Financial Statements........................................... XIII
SEMI-ANNUAL REPORT OF MUTUAL OF AMERICA INVESTMENT CORPORATION........... 1
President's Message..................................................... 1
Portfolio Management Discussions........................................ 2
Portfolio of Investments in Securities:
Money Market Fund..................................................... 9
All America Fund...................................................... 10
Equity Index Fund..................................................... 19
Bond Fund............................................................. 25
Short-Term Bond Fund.................................................. 28
Mid-Term Bond Fund.................................................... 30
Composite Fund........................................................ 32
Aggressive Equity Fund................................................ 37
Statement of Assets and Liabilities..................................... 44
Statement of Operations................................................. 45
Statements of Changes in Net Assets..................................... 46
Financial Highlights.................................................... 48
Notes to Financial Statements........................................... 54
SEMI-ANNUAL REPORT OF SCUDDER VARIABLE LIFE INVESTMENT FUND
SEMI-ANNUAL REPORT OF VP CAPITAL APPRECIATION FUND OF AMERICAN CENTURY
VARIABLE PORTFOLIOS, INC.
SEMI-ANNUAL REPORT OF CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO OF
ACACIA CAPITAL CORPORATION
SEMI-ANNUAL REPORT OF FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND: EQUITY-INCOME PORTFOLIO
SEMI-ANNUAL REPORT OF FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II: CONTRA FUND PORTFOLIO
SEMI-ANNUAL REPORT OF FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II: ASSET MANAGER PORTFOLIO
</TABLE>
IV
<PAGE>
[This page intentionally left blank]
V
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Assets:
Investments in Mutual of
America Investment
Corporation at market
value
(Cost:
Money Market Fund --
$32,621,199
All America Fund --
$221,631,045
Equity Index Fund --
$83,418,495
Bond Fund -- $33,245,465)
(Notes 1 and 2).......... $33,321,722 $315,414,696 $107,737,376 $33,480,718
Due From (To) Mutual of
America General Account.. (134,039) 1,018,782 2,589,407 374,710
----------- ------------ ------------ -----------
Net Assets................ $33,187,683 $316,433,478 $110,326,783 $33,855,428
=========== ============ ============ ===========
Unit Value at June 30,
1997 (Note 5)............ $ 1.91 $ 6.27 $ 2.06 $ 2.81
====== ====== ====== ======
Number of Units
Outstanding at June 30,
1997
(Note 5)................. 17,364,186 50,464,616 53,659,843 12,052,192
=========== ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------
AGGRESSIVE
SHORT-TERM MID-TERM COMPOSITE EQUITY
BOND FUND BOND FUND FUND FUND
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Assets:
Investments in Mutual of
America Investment
Corporation at market value
(Cost:
Short-Term Bond Fund --
$2,467,881
Mid-Term Bond Fund --
$5,119,980
Composite Fund --
$229,877,381
Aggressive Equity Fund --
$109,562,522)
(Notes 1 and 2)............ $2,512,512 $4,854,536 $256,850,126 $126,600,283
Due From (To) Mutual of
America General Account.... 35,766 22,832 (226,781) (803,445)
---------- ---------- ------------ ------------
Net Assets.................. $2,548,278 $4,877,368 $256,623,345 $125,796,838
========== ========== ============ ============
Unit Value at June 30, 1997
(Note 5)................... $ 1.16 $ 1.21 $ 4.00 $ 2.02
====== ====== ====== ======
Number of Units Outstanding
at June 30, 1997 (Note 5).. 2,189,910 4,016,811 64,192,908 62,180,422
========== ========== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
VI
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN
SCUDDER CENTURY CALVERT
-------------------------------------- ------------ -----------
CAPITAL VP CAPITAL RESPONSIBLY
BOND GROWTH INTERNATIONAL APPRECIATION INVESTED
FUND FUND FUND FUND FUND
----------- ------------ ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in Scudder
Portfolios, American
Century VP
Capital Appreciation
Fund and Calvert
Responsibly
Invested Portfolio at
market value
(Cost:
Scudder Bond Fund --
$15,692,674
Scudder Capital Growth
Fund -- $191,436,431
Scudder International
Fund -- $97,130,407
American Century VP
Capital
Appreciation Fund --
$56,468,070
Calvert Responsibly
Invested Portfolio --
$23,916,173)
(Notes 1 and 2)........ $15,183,678 $266,143,190 $125,767,478 $56,283,794 $28,290,936
Due From (To) Mutual of
America General
Account................ 84,984 871,025 (1,468,511) 85,455 114,057
----------- ------------ ------------ ----------- -----------
Net Assets.............. $15,268,662 $267,014,215 $124,298,967 $56,369,249 $28,404,993
=========== ============ ============ =========== ===========
Unit Value at June 30,
1997 (Note 5).......... $ 11.76 $ 27.25 $ 15.23 $ 11.07 $ 2.45
======= ======= ======= ======= ======
Number of Units
Outstanding at June 30,
1997 (Note 5).......... 1,298,373 9,799,126 8,163,208 5,090,903 11,585,505
=========== ============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
----------------------------------------
VIP VIP II VIP II
EQUITY-INCOME CONTRA ASSET MANAGER
FUND FUND FUND
------------- ----------- -------------
<S> <C> <C> <C>
Assets:
Investments in Fidelity Portfolios at
market value
(Cost:
VIP Equity-Income Fund --
$65,180,772
VIP II Contra Fund -- $77,395,540
VIP II Asset Manager Fund--
$15,596,241)
(Notes 1 and 2)..................... $74,053,145 $93,203,651 $16,508,563
Due From (To) Mutual of America
General Account..................... (777,588) (1,261,338) 347,024
----------- ----------- -----------
Net Assets........................... $73,275,557 $91,942,313 $16,855,587
=========== =========== ===========
Unit Value at June 30, 1997 (Note
5).................................. $ 25.38 $ 18.41 $ 19.60
======= ======= =======
Number of Units Outstanding at June
30, 1997 (Note 5)................... 2,887,108 4,993,912 860,100
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VII
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and 4):
Dividends.............. $ -- $ -- $ -- $ --
--------- ----------- ----------- -----------
Total income............ -- -- -- --
--------- ----------- ----------- -----------
Expenses (Note 3):
Fees................... 201,192 1,755,952 515,359 204,905
Administrative
expenses.............. 40,565 93,064 30,981 31,921
--------- ----------- ----------- -----------
Total Expenses.......... 241,757 1,849,016 546,340 236,826
--------- ----------- ----------- -----------
Net Investment Income
(Loss)................. (241,757) (1,849,016) (546,340) (236,826)
--------- ----------- ----------- -----------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note
1):
Net realized gain
(loss) on
investments........... 16,732 2,834,157 319,284 (67,395)
Net unrealized
appreciation
(depreciation) of
investments........... 831,649 42,411,078 15,813,314 1,003,756
--------- ----------- ----------- -----------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 848,381 45,245,235 16,132,598 936,361
--------- ----------- ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ 606,624 $43,396,219 $15,586,258 $ 699,535
========= =========== =========== ===========
<CAPTION>
INVESTMENT COMPANY
---------------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY
BOND FUND BOND FUND FUND FUND
------------ ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and 4):
Dividends.............. $ -- $ -- $ -- $ --
--------- ----------- ----------- -----------
Total income............ -- -- -- --
--------- ----------- ----------- -----------
Expenses (Note 3):
Fees................... 15,636 27,848 1,533,563 678,335
Administrative
expenses.............. 3,663 4,930 125,351 31,775
--------- ----------- ----------- -----------
Total Expenses.......... 19,299 32,778 1,658,914 710,110
--------- ----------- ----------- -----------
Net Investment Income
(Loss)................. (19,299) (32,778) (1,658,914) (710,110)
--------- ----------- ----------- -----------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note
1):
Net realized gain
(loss) on
investments........... 470 (80,705) 721,216 124,475
Net unrealized
appreciation
(depreciation) of
investments........... 71,149 208,078 16,748,019 13,693,139
--------- ----------- ----------- -----------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 71,619 127,373 17,469,235 13,817,614
--------- ----------- ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ 52,320 $ 94,595 $15,810,321 $13,107,504
========= =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VIII
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN
SCUDDER CENTURY CALVERT
----------------------------------- ------------ -----------
CAPITAL VP CAPITAL RESPONSIBLY
BOND GROWTH INTERNATIONAL APPRECIATION INVESTED
FUND FUND FUND FUND FUND
-------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and 4):
Dividends.............. $537,114 $17,058,211 $ 2,549,505 $ 1,349,408 $ --
-------- ----------- ----------- ----------- ----------
Total income............ 537,114 17,058,211 2,549,505 1,349,408 --
-------- ----------- ----------- ----------- ----------
Expenses (Note 3):
Fees................... 92,399 1,414,886 682,550 327,347 157,975
Administrative
expenses.............. 19,446 49,826 11,855 8,664 24,249
-------- ----------- ----------- ----------- ----------
Total Expenses.......... 111,845 1,464,712 694,405 336,011 182,224
-------- ----------- ----------- ----------- ----------
Net Investment Income
(Loss)................. 425,269 15,593,499 1,855,100 1,013,397 (182,224)
-------- ----------- ----------- ----------- ----------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note
1):
Net realized gain
(loss) on
investments........... (63,060) 1,706,265 3,066,666 195,682 81,775
Net unrealized
appreciation
(depreciation) of
investments........... (20,980) 31,697,667 9,742,836 (4,029,157) 2,545,888
-------- ----------- ----------- ----------- ----------
Net Realized and
Unrealized Gain (Loss)
on Investments......... (84,040) 33,403,932 12,809,502 (3,833,475) 2,627,663
-------- ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations............. $341,229 $48,997,431 $14,664,602 $(2,820,078) $2,445,439
======== =========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
--------------------------------------
VIP VIP II VIP II
EQUITY-INCOME CONTRA ASSET MANAGER
FUND FUND FUND
------------- ---------- -------------
<S> <C> <C> <C>
Investment Income and Expenses:
Income (Notes 1 and 4):
Dividends............................. $5,695,825 $2,303,885 $1,433,986
---------- ---------- ----------
Total income........................... 5,695,825 2,303,885 1,433,986
---------- ---------- ----------
Expenses (Note 3):
Fees.................................. 376,042 486,517 82,122
Administrative expenses............... 48,646 30,735 14,903
---------- ---------- ----------
Total Expenses......................... 424,688 517,252 97,025
---------- ---------- ----------
Net Investment Income (Loss)........... 5,271,137 1,786,633 1,336,961
---------- ---------- ----------
Net Realized and Unrealized Gain (Loss)
on Investments (Note 1):
Net realized gain (loss) on
investments.......................... 44,603 174,017 (22)
Net unrealized appreciation
(depreciation) of investments........ 3,996,898 6,556,841 46,854
---------- ---------- ----------
Net Realized and Unrealized Gain (Loss)
on Investments........................ 4,041,501 6,730,858 46,832
---------- ---------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations............. $9,312,638 $8,517,491 $1,383,793
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
IX
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------------------------------------------
MONEY MARKET FUND ALL AMERICA FUND EQUITY INDEX FUND
-------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (241,757) $ 849,780 $ (1,849,016) $ 10,418,234 $ (546,340) $ 1,456,309
Net realized gain
(loss) on
investments........... 16,732 73,658 2,834,157 2,431,185 319,284 476,262
Net unrealized
appreciation
(depreciation) of
investments........... 831,649 278,840 42,411,078 28,344,476 15,813,314 6,045,598
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease)
in net assets resulting
from operations........ 606,624 1,202,278 43,396,219 41,193,895 15,586,258 7,978,169
----------- ----------- ------------ ------------ ------------ -----------
From Unit Transactions:
Contributions.......... 2,872,813 6,015,021 16,125,871 30,608,222 9,821,732 11,517,471
Withdrawals............ (2,285,258) (4,077,160) (11,278,837) (15,824,928) (2,747,770) (6,193,918)
Net transfers.......... (819,280) (1,853,101) (447,729) 15,311,478 26,450,042 23,679,496
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease)
from unit
transactions........... (231,725) 84,760 4,399,305 30,094,772 33,524,004 29,003,049
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets.......... 374,899 1,287,038 47,795,524 71,288,667 49,110,262 36,981,218
Net Assets:
Beginning of
Period/Year............ 32,812,784 31,525,746 268,637,954 197,349,287 61,216,521 24,235,303
----------- ----------- ------------ ------------ ------------ -----------
End of Period/Year...... $33,187,683 $32,812,784 $316,433,478 $268,637,954 $110,326,783 $61,216,521
=========== =========== ============ ============ ============ ===========
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------------------------------------------
BOND FUND SHORT-TERM BOND FUND MID-TERM BOND FUND
-------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (236,826) $ 1,790,689 $ (19,299) $ 63,539 $ (32,778) $ 558,997
Net realized gain
(loss) on
investments........... (67,395) 68,629 470 7,065 (80,705) (2,132)
Net unrealized
appreciation
(depreciation) of
investments........... 1,003,756 (1,221,188) 71,149 (1,966) 208,078 (455,047)
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease)
in net assets resulting
from operations........ 699,535 638,130 52,320 68,638 94,595 101,818
----------- ----------- ------------ ------------ ------------ -----------
From Unit Transactions:
Contributions.......... 2,429,836 5,112,307 315,051 650,490 350,153 953,690
Withdrawals............ (1,742,047) (3,323,187) (476,988) (229,391) (405,189) (231,712)
Net transfers.......... (2,010,850) (435,017) 233,221 344,727 289,230 424,626
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease)
from unit
transactions........... (1,323,061) 1,354,103 71,284 765,826 234,194 1,146,604
----------- ----------- ------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets.......... (623,526) 1,992,233 123,604 834,464 328,789 1,248,422
Net Assets:
Beginning of
Period/Year............ 34,478,954 32,486,721 2,424,674 1,590,210 4,548,579 3,300,157
----------- ----------- ------------ ------------ ------------ -----------
End of Period/Year...... $33,855,428 $34,478,954 $ 2,548,278 $ 2,424,674 $ 4,877,368 $ 4,548,579
=========== =========== ============ ============ ============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
X
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT COMPANY
--------------------------------------------------------
COMPOSITE FUND AGGRESSIVE EQUITY FUND
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (1,658,914) $ 28,222,090 $ (710,110) $11,952,409
Net realized gain
(loss) on
investments........... 721,216 2,739,162 124,475 201,936
Net unrealized
appreciation
(depreciation) of
investments........... 16,748,019 (6,525,946) 13,693,139 547,221
------------ ------------ ------------ -----------
Net Increase (Decrease)
in net assets resulting
from operations........ 15,810,321 24,435,306 13,107,504 12,701,566
------------ ------------ ------------ -----------
From Unit Transactions:
Contributions.......... 12,281,787 28,326,960 14,251,827 16,800,622
Withdrawals............ (12,834,799) (22,088,981) (4,426,754) 506,734
Net transfers.......... (8,878,278) (19,948,521) 13,321,912 29,646,189
------------ ------------ ------------ -----------
Net Increase (Decrease)
from unit
transactions........... (9,431,290) (13,710,542) 23,146,985 46,953,545
------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets.......... 6,379,031 10,724,764 36,254,489 59,655,111
Net Assets:
Beginning of
Period/Year............ 250,244,314 239,519,550 89,542,349 29,887,238
------------ ------------ ------------ -----------
End of Period/Year...... $256,623,345 $250,244,314 $125,796,838 $89,542,349
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
SCUDDER
------------------------------------------------------------------------------------
BOND FUND CAPITAL GROWTH FUND INTERNATIONAL FUND
-------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 425,269 $ 1,097,001 $ 15,593,499 $ 13,273,666 $ 1,855,100 $ 850,382
Net realized gain
(loss) on
investments........... (63,060) (110,077) 1,706,265 1,971,672 3,066,666 3,882,634
Net unrealized
appreciation
(depreciation) of
investments........... (20,980) (788,323) 31,697,667 15,612,266 9,742,836 7,289,627
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease)
in net assets resulting
from operations........ 341,229 198,601 48,997,431 30,857,604 14,664,602 12,022,643
----------- ----------- ------------ ------------ ------------ ------------
From Unit Transactions:
Contributions.......... 1,222,020 2,640,943 15,564,272 27,988,093 7,779,318 14,517,884
Withdrawals............ (845,369) (1,287,365) (10,000,135) (13,712,456) (5,118,296) (8,408,505)
Net transfers.......... (1,086,494) (259,197) 7,598,660 262,723 3,737,016 (1,008,537)
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease)
from unit
transactions........... (709,843) 1,094,381 13,162,797 14,538,360 6,398,038 5,100,842
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets.......... (368,614) 1,292,982 62,160,228 45,395,964 21,062,640 17,123,485
Net Assets:
Beginning of
Period/Year............ 15,637,276 14,344,294 204,853,987 159,458,023 103,236,327 86,112,842
----------- ----------- ------------ ------------ ------------ ------------
End of Period/Year...... $15,268,662 $15,637,276 $267,014,215 $204,853,987 $124,298,967 $103,236,327
=========== =========== ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
XI
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AMERICAN CENTURY CALVERT
--------------------------- --------------------------
VP CAPITAL
APPRECIATION FUND RESPONSIBLY INVESTED FUND
--------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment
income(loss).......... $ 1,013,397 $ 9,827,488 $ (182,224) $ 1,505,706
Net realized gain
(loss) on
investments........... 195,682 3,898,097 81,775 72,424
Net unrealized
appreciation
(depreciation) of
investments........... (4,029,157) (18,669,322) 2,545,888 439,874
------------ ------------ ----------- -----------
Net Increase (Decrease)
in net assets resulting
from operations........ (2,820,078) (4,943,737) 2,445,439 2,018,004
------------ ------------ ----------- -----------
From Unit Transactions:
Contributions.......... 4,955,835 16,360,753 3,046,379 4,807,906
Withdrawals............ (4,024,088) (7,283,773) (1,196,001) (1,198,222)
Net transfers.......... (25,494,950) (18,548,118) 187,419 2,535,811
------------ ------------ ----------- -----------
Net Increase (Decrease)
from unit
transactions........... (24,563,203) (9,471,138) 2,037,797 6,145,495
------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets.......... (27,383,281) (14,414,875) 4,483,236 8,163,499
Net Assets:
Beginning of
Period/Year............ 83,752,530 98,167,405 23,921,757 15,758,258
------------ ------------ ----------- -----------
End of Period/Year...... $ 56,369,249 $ 83,752,530 $28,404,993 $23,921,757
============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
----------------------------------------------------------------------------------
VIP VIP II VIP II
EQUITY-INCOME CONTRA ASSET MANAGER
FUND FUND FUND
-------------------------- -------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 5,271,137 $ 465,381 $ 1,786,633 $ (316,979) $ 1,336,961 $ 147,067
Net realized gain
(loss) on
investments........... 44,603 36,749 174,017 106,747 (22) 17,488
Net unrealized
appreciation
(depreciation) of
investments........... 3,996,898 4,033,446 6,556,841 8,757,016 46,854 726,606
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease)
in net assets
resulting from
operations............. 9,312,638 4,535,576 8,517,491 8,546,784 1,383,793 891,161
----------- ----------- ----------- ----------- ----------- -----------
From Unit Transactions:
Contributions.......... 7,454,058 11,293,855 9,892,093 13,486,367 2,303,729 2,540,371
Withdrawals............ (2,442,022) (154,620) (2,846,818) 89,022 (635,942) (659,754)
Net transfers.......... 7,592,205 21,543,664 12,024,298 17,419,557 2,942,028 5,212,637
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease)
from unit
transactions........... 12,604,241 32,682,899 19,069,573 30,994,946 4,609,815 7,093,254
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease)
in Net Assets.......... 21,916,879 37,218,475 27,587,064 39,541,730 5,993,608 7,984,415
Net Assets:
Beginning of
Period/Year............ 51,358,678 14,140,203 64,355,249 24,813,519 10,861,979 2,877,564
----------- ----------- ----------- ----------- ----------- -----------
End of Period/Year...... $73,275,557 $51,358,678 $91,942,313 $64,355,249 $16,855,587 $10,861,979
=========== =========== =========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
XII
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1.SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Separate Account No. 2 of Mutual of America Life Insurance Company ("the
Company") was established in conformity with New York Insurance Law and
commenced operations on June 4, 1984. On October 31, 1986, Separate Account
No. 2 was reorganized into a unit investment trust consisting of four Funds:
the Money Market Fund, the All America Fund, the Bond Fund and the Composite
Fund. These Funds invest in corresponding funds of Mutual of America
Investment Corporation ("Investment Company"). Prior to May 2, 1994, the All
America Fund was known as the Stock Fund and had different investment
objectives and no sub-advisors.
On January 3, 1989, the following Funds became available to Separate Account
No. 2 as investment options: Scudder Bond, Scudder Capital Growth, Scudder
International and VP Capital Appreciation Fund (formerly TCI Growth). The
Scudder Funds invest in corresponding portfolios of Scudder Variable Life
Investment Fund ("Scudder"). The VP Capital Appreciation Fund invests in a
corresponding fund of American Century Variable Portfolios Inc. ("American
Century"). Effective May 13, 1991, the Calvert Responsibly Invested Balanced
Portfolio became available as an investment option. The Calvert Responsibly
Invested Fund invests in a corresponding fund of the Calvert Responsibly
Invested Balanced Portfolio of Acacia Capital Corporation ("Calvert").
On February 5, 1993 the Mutual of America Equity Index, Short-Term Bond and
Mid-Term Bond Funds became available to Separate Account No. 2 as investment
options. On May 2, 1994 the Mutual of America Aggressive Equity Fund became
available as an investment option. These Funds invest in corresponding funds
of the Investment Company.
On May 1, 1995, Fidelity Investments' Equity-Income, Contrafund and Asset
Manager Portfolios became available to Separate Account No. 2 as investment
options. The Fidelity Equity-Income Portfolio invests in a corresponding
portfolio of Fidelity Variable Insurance Products Fund and the Contrafund and
Asset Manager Portfolios invest in corresponding portfolios of Fidelity
Variable Insurance Products Fund II (collectively "Fidelity").
Separate Account No. 2 was formed by the Company to support the operations
of the Company's group and individual variable accumulation annuity contracts
("Contracts"). The assets of Separate Account No. 2 are the property of the
Company. The portion of Separate Account No. 2's assets applicable to the
Contracts will not be charged with liabilities arising out of any other
business the Company may conduct.
The significant accounting policies of Separate Account No. 2 are as
follows:
Investment Valuation -- Investments are made in shares of the Investment
Company, Scudder, American Century, Calvert and Fidelity and are valued at the
reported net asset values of the respective Funds or Portfolios.
Investment Transactions -- Investment transactions are recorded on the trade
date. Realized gains and losses on sales of investments are determined based
on the average cost of the investment sold.
Federal Income Taxes -- Separate Account No. 2 and its operations are
treated as part of the Company which is exempt from federal income taxes under
Section 501(c)(4) of the Internal Revenue Code through 1997.
2.INVESTMENTS
The number of shares owned by Separate Account No. 2 and their respective
net asset values (rounded to the nearest cent) per share at June 30, 1997 are
as follows:
<TABLE>
<CAPTION>
NUMBER OF NET ASSET
SHARES VALUE
----------- ---------
<S> <C> <C>
Investment Company Funds:
Money Market Fund................................. 27,283,479 $1.22
All America Fund.................................. 110,687,358 2.85
Equity Index Fund................................. 56,049,285 1.92
Bond Fund......................................... 23,564,512 1.42
Short-Term Bond Fund.............................. 2,378,088 1.06
Mid-Term Bond Fund................................ 5,264,837 0.92
Composite Fund.................................... 135,329,862 1.90
Aggressive Equity Fund............................ 75,953,547 1.67
</TABLE>
XIII
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
NUMBER OF NET ASSET
SHARES VALUE
---------- ---------
<S> <C> <C>
Scudder Portfolios:
Bond Portfolio--Class "A"............................ 2,269,608 $ 6.69
Capital Growth Portfolio--Class "A".................. 14,059,334 18.93
International Portfolio--Class "A"................... 8,520,832 14.76
American Century VP Capital Appreciation Fund......... 5,826,480 9.66
Calvert Responsibly Invested Portfolio................ 14,434,151 1.96
Fidelity Portfolios:
Equity-Income........................................ 3,356,897 22.06
Contrafund........................................... 5,198,196 17.93
Asset Manager........................................ 994,492 16.60
</TABLE>
3.EXPENSES
Administrative Charges -- In connection with its administrative functions,
the Company deducts daily, at an annual rate of .40%, an amount from the value
of the net assets of all funds except the American Century VP Capital
Appreciation Fund for which the annual rate is .20% and each Fidelity fund for
which the annual rate is .30%.
In addition, a deduction of up to $2.00 may be made at the end of each month
from a participant's account, except that such charge shall not exceed 1/12 of
1% of the balance in such account in any month.
Distribution Expense Charge -- As principal underwriter, the Company
performs all distribution and sales functions and bears all distribution and
sales expenses relative to the Contracts. For providing these services, the
Company deducts daily, at an annual rate of .35%, an amount from the value of
the net assets of each fund to cover distribution expenses.
Mortality and Expense Risk Charge -- The Company assumes the risk to make
annuity payments in accordance with annuity tables provided in the Contracts
regardless of how long a participant lives and also assumes certain expense
risks associated with such annuity payments. For assuming this risk, the
Company deducts daily, at an annual rate of .50%, an amount from the value of
the net assets of each fund.
4.DIVIDENDS
All dividend distributions are reinvested in additional shares of the
respective Funds or Portfolios at net asset value. No dividend distributions
have been declared and none have been paid by the Investment Company during
the first six months of 1997. It is the Investment Company's practice to
declare and pay dividends at the end of the year.
On January 29, 1997, February 26, 1997 and April 28, 1997, dividends were
paid by the Scudder Bond Portfolio. The combined amount of the dividends was
$537,114.
On January 29, 1997, February 26, 1997 and April 28, 1997, dividends were
paid by the Scudder Capital Growth Portfolio. The combined amount of the
dividends was $17,058,211.
On February 26, 1997 a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $2,549,505.
On March 29, 1997 a dividend was paid by the American Century VP Capital
Appreciation Fund. The amount of the dividend was $1,349,408.
On February 7, 1997 a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $5,695,825.
On February 7, 1997, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $2,303,885.
On February 7, 1997, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $1,433,986.
XIV
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5.FINANCIAL HIGHLIGHTS
Shown below are financial highlights for a Unit outstanding throughout the
six months ended June 30, 1997 and each of the previous years or, if not in
existence a full year, the initial period ended December 31:
<TABLE>
<CAPTION>
MUTUAL OF AMERICA MONEY MARKET FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $1.87 $1.80 $1.72 $1.68 $1.65 $1.62
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $1.91 $1.87 $1.80 $1.72 $1.68 $1.65
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 17,364 17,511 17,502 17,653 15,815 16,545
====== ====== ====== ====== ====== ======
<CAPTION>
MUTUAL OF AMERICA ALL AMERICA FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $ 5.39 $ 4.52 $ 3.35 $ 3.36 $ 3.03 $ 2.97
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $ 6.27 $ 5.39 $ 4.52 $ 3.35 $ 3.36 $ 3.03
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 50,465 49,798 43,620 38,669 36,510 32,352
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
MUTUAL OF AMERICA EQUITY INDEX FUND
--------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- --------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year.... $1.72 $1.42 $1.05 $1.05 $1.00
======= ======= ======= ====== ======
Unit value, end of period/year.......... $2.06 $1.72 $1.42 $1.05 $1.05
======= ======= ======= ====== ======
Thousands of units outstanding, end of
period/year............................ 53,660 35,660 17,109 4,644 2,135
======= ======= ======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
MUTUAL OF AMERICA BOND FUND
----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year......................... $2.75 $2.69 $2.28 $2.39 $2.13 $1.99
====== ====== ====== ====== ====== =====
Unit value, end of period/year....... $2.81 $2.75 $2.69 $2.28 $2.39 $2.13
====== ====== ====== ====== ====== =====
Thousands of units outstanding, end
of period/year...................... 12,052 12,548 12,083 10,601 12,244 9,203
====== ====== ====== ====== ====== =====
</TABLE>
<TABLE>
<CAPTION>
MUTUAL OF AMERICA SHORT-
TERM BOND FUND
-----------------------------
1997 1996 1995 1994 1993
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year............ $1.14 $1.10 $1.03 $1.03 $1.00
===== ===== ===== ===== =====
Unit value, end of period/year.................. $1.16 $1.14 $1.10 $1.03 $1.03
===== ===== ===== ===== =====
Thousands of units outstanding, end of
period/year.................................... 2,190 2,129 1,447 1,132 747
===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
MUTUAL OF AMERICA MID-
TERM BOND FUND
-----------------------------
1997 1996 1995 1994 1993
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year............ $1.19 $1.16 $1.01 $1.06 $1.00
===== ===== ===== ===== =====
Unit value, end of period/year.................. $1.21 $1.19 $1.16 $1.01 $1.06
===== ===== ===== ===== =====
Thousands of units outstanding, end of
period/year.................................... 4,017 3,828 2,848 1,444 1,411
===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
MUTUAL OF AMERICA COMPOSITE FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $3.75 $3.39 $2.82 $2.95 $2.55 $2.43
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $4.00 $3.75 $3.39 $2.82 $2.95 $2.55
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 64,193 66,715 70,558 73,239 71,215 50,944
====== ====== ====== ====== ====== ======
</TABLE>
XV
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
MUTUAL OF AMERICA
AGGRESSIVE EQUITY FUND
--------------------------
1997 1996 1995 1994
------ ------ ------ -----
<S> <C> <C> <C> <C>
Unit value, beginning of
period/year............ $1.80 $1.43 $1.05 $1.00
====== ====== ====== =====
Unit value, end of
period/year............ $2.02 $1.80 $1.43 $1.05
====== ====== ====== =====
Thousands of units
outstanding, end of
period/year............ 62,180 49,800 20,858 9,145
====== ====== ====== =====
</TABLE>
<TABLE>
<CAPTION>
SCUDDER BOND FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $11.48 $11.30 $ 9.69 $10.32 $ 9.30 $8.78
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $11.76 $11.48 $11.30 $ 9.69 $10.32 $9.30
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 1,298 1,362 1,269 1,169 1,277 1,053
====== ====== ====== ====== ====== ======
<CAPTION>
SCUDDER CAPITAL GROWTH FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $22.11 $18.64 $14.67 $16.46 $13.80 $13.09
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $27.25 $22.11 $18.64 $14.67 $16.46 $13.80
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 9,799 9,266 8,556 8,121 6,582 3,698
====== ====== ====== ====== ====== ======
<CAPTION>
SCUDDER INTERNATIONAL FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $13.43 $11.85 $10.80 $11.06 $ 8.13 $8.48
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $15.23 $13.43 $11.85 $10.80 $11.06 $8.13
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 8,163 7,688 7,269 8,610 5,400 2,262
====== ====== ====== ====== ====== ======
<CAPTION>
AMERICAN CENTURY
-----------------------------------------
VP CAPITAL APPRECIATION FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $11.53 $12.18 $ 9.39 $9.61 $8.81 $9.01
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $11.07 $11.53 $12.18 $9.39 $9.61 $8.81
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 5,091 7,264 8,061 6,361 5,946 5,280
====== ====== ====== ====== ====== ======
<CAPTION>
CALVERT
-----------------------------------------
RESPONSIBLY INVESTED FUND
-----------------------------------------
1997 1996 1995 1994 1993 1992
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $2.23 $2.01 $1.57 $1.64 $1.54 $1.44
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $2.45 $2.23 $2.01 $1.57 $1.64 $1.54
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 11,586 10,713 7,849 5,986 5,151 2,742
====== ====== ====== ====== ====== ======
<CAPTION>
FIDELITY
-----------------------------------------
EQUITY-INCOME FUND CONTRA FUND
-------------------- --------------------
1997 1996 1995 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year........................ $21.93 $19.43 $16.30 $16.59 $13.85 $11.43
====== ====== ====== ====== ====== ======
Unit value, end of period/year...... $25.38 $21.93 $19.43 $18.41 $16.59 $13.85
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end
of period/year..................... 2,887 2,342 728 4,994 3,880 1,792
====== ====== ====== ====== ====== ======
</TABLE>
XVI
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
FIDELITY
--------------------
ASSET MANAGER FUND
--------------------
1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
Unit value, beginning of period/year...................... $17.72 $15.66 $14.04
====== ====== ======
Unit value, end of period/year............................ $19.60 $17.72 $15.66
====== ====== ======
Thousands of units outstanding, end of period/year........ 860 613 184
====== ====== ======
</TABLE>
XVII
<PAGE>
MUTUAL OF AMERICA LIFE INSURANCE COMPANY
320 Park Avenue New York, New York 10022-6839 212-224-1600
