MUTUAL OF AMERICA
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
JUNE 30, 1999
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, 1999
Dear Participant:
We are pleased to send you the 1999 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 seventeen distinct funds. Each invests in
shares of one of nine funds of Mutual of America Investment Corporation (the
"Investment Company"): the Money Market, All America, Equity Index, Mid-Cap
Equity Index (commenced operations on May 3, 1999), Bond, Short-Term Bond,
Mid-Term Bond, Composite and Aggressive Equity Fund; three portfolios of Scudder
Variable Life Investment Fund ("Scudder"): the Bond, Capital Growth and
International Portfolio; the VP Capital Appreciation Fund of American Century
Variable Portfolios, Inc. ("American Century"); the Calvert Social Balanced
Portfolio of Calvert Variable Series, Inc. (formerly, Acacia Capital
Corporation's Calvert Responsibly Invested Balanced Portfolios) ("Calvert"); the
Equity-Income Portfolio of Fidelity Investments Variable Insurance Products Fund
("Fidelity VIP"); and the Contrafund Portfolio and Asset Manager Portfolio 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 investment objectives and primary investments of the funds and
portfolios in which the Separate Account Funds invest are summarized as follows:
Investment Company Money Market Fund: This Fund seeks to realize 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.
Investment Company All America Fund: This Fund seeks to outperform the
Standard & Poor's Composite Index of 500 Stocks (the "S&P 500 Index") by
investing in a diversified portfolio of primarily common stocks, with
approximately 60% of its assets invested to provide investment results that
correspond to the performance of the S&P 500 Index and the remaining
approximately 40% of its assets invested to seek 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 primarily common stocks
with a broad exposure to the market. ("Standard & Poor's", "S&P"and "S&P 500"
are trademarks of The McGraw-Hill Companies, Inc.)
Investment Company Equity Index Fund: This Fund seeks to provide
investment results that correspond to the performance of the S&P 500 Index by
investing primarily in the common stocks that comprise the S&P 500 Index.
Investment Company Mid-Cap Equity Index Fund: This Fund seeks to provide
investment results that correspond to the performance of the S&P MidCap 400
Index by investing primarily in the common stocks that comprise the S&P MidCap
400 Index. ("S&P MidCap 400" is a trademark of The McGraw-Hill Companies, Inc.)
Investment Company Bond Fund: This Fund seeks as high a level of current
income over time as is believed consistent with prudent investment risk, with
preservation of capital a secondary objective, by investing primarily in
publicly-traded, investment grade debt securities.
Investment Company Short-Term Bond Fund: This Fund seeks as high a level
of current income over time as is believed consistent with prudent investment
risk, with preservation of capital a secondary objective, by investing primarily
in publicly-traded, investment grade debt securities and in money market
instruments with an average maturity of one to three years.
Investment Company Mid-Term Bond Fund: This Fund seeks as high a level of
current income over time as is believed consistent with prudent investment risk,
with preservation of capital a secondary objective, by investing primarily in
publicly-traded, investment grade debt securities with an average maturity of
three to seven years.
Investment Company Composite Fund: This Fund seeks as high a total rate of
return, through both appreciation of capital and current income, as is
consistent with prudent investment risk, by investing in a diversified portfolio
of publicly-traded common stocks, bonds and money market instruments.
1
<PAGE>
Investment Company Aggressive Equity Fund: This Fund's investment
objective is capital appreciation, by investing approximately half of its assets
in companies believed to possess above-average growth potential and the other
half of its assets in companies believed to possess valuable assets or whose
securities are believed to be undervalued in the marketplace.
Scudder Bond Portfolio: This Portfolio seeks a high level of income
consistent with a high quality portfolio of primarily investment grade debt
securities.
Scudder Capital Growth Portfolio: This Portfolio seeks to maximize
long-term capital growth through a broad and flexible investment program, by
investing in marketable securities, principally common stocks and, consistent
with its objective of long-term capital growth, preferred stocks.
Scudder International Portfolio: This Portfolio seeks long-term growth of
capital primarily through a diversified portfolio of foreign equity securities,
by investing primarily in established companies that do business principally
outside of the United States and that are listed on foreign exchanges.
American Century VP Capital Appreciation Fund: This Fund seeks capital
growth by investing primarily in common stocks that meet certain fundamental and
technical standards and are considered by the Fund's management to have
better-than-average prospects for appreciation.
Calvert Social Balanced Portfolio: This Portfolio seeks a competitive
total rate of return through an actively managed, non-diversified portfolio of
stocks, bonds and money market instruments that offer income and growth
opportunity and satisfy the investment and social criteria for the Portfolio.
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, and it also seeks to achieve
a yield that exceeds the composite yield on the securities comprising the S&P
500 Index.
Fidelity VIP II Contrafund Portfolio: This Portfolio seeks capital
appreciation by investing primarily in common stocks of companies whose value,
the Portfolio's adviser believes, is not fully recognized by the public.
Fidelity VIP II Asset Manager Portfolio: This Portfolio seeks high total
return with reduced risk over the long-term by allocating its assets among
stocks, bonds and short-term money market instruments, with an expected "neutral
mix" over the long-term of 10% in short-term/money-market instruments, 40% in
bonds and 50% in stocks.
For the six months ended June 30, 1999, the following total returns were
experienced in these seventeen Separate Account Funds:
Investment Company Money Market Fund(1) ................. + 1.6%
Investment Company All America Fund ..................... +11.5%
Investment Company Equity Index Fund .................... +11.4%
Investment Company Mid-Cap Equity Index Fund(2) ......... + 3.8%
Investment Company Bond Fund ............................ - 2.5%
Investment Company Short-Term Bond Fund ................. + 1.3%
Investment Company Mid-Term Bond Fund ................... - 0.5%
Investment Company Composite Fund ....................... + 4.8%
Investment Company Aggressive Equity Fund ............... + 6.1%
Scudder Bond Fund ....................................... - 2.0%
Scudder Capital Growth Fund ............................. +10.2%
Scudder International Fund .............................. + 9.2%
American Century VP Capital Appreciation Fund ........... +15.3%
Calvert Social Balanced Fund ............................ + 4.4%
Fidelity VIP Equity-Income Fund ......................... +11.9%
Fidelity VIP II Contrafund .............................. +10.5%
Fidelity VIP II Asset Manager Fund ...................... + 4.5%
- ----------
(1) The seven-day net annualized effective yield as of 8/10/99 was 3.62% and is
not necessarily indicative of future actual yields.
(2) Commenced operations May 3, 1999; total return is from that date.
2
<PAGE>
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.
This report includes financial statements for each fund of Separate
Account No. 2. Accompanying 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
Fidelity VIP II.
Total Return Separate Account Performance Notes for extended time periods
and additional services are available by calling 1-800-468-3785.
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
3
<PAGE>
CONTENTS
Page
----
Semi-Annual Report of Mutual of America Separate Account No. 2 ......... 1
Statement of Assets and Liabilities ................................. 5
Statement of Operations ............................................. 7
Statements of Changes in Net Assets ................................. 9
Notes to Financial Statements ....................................... 12
4
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Investment Company
------------------------------------------------------------------------
Mid-Cap
Money Market All America Equity Index Equity Index Bond
Fund Fund Fund Fund Fund
------------ ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Mutual of America
Investment Corporation
at market value
(Cost:
Money Market Fund-- $39,246,514
All America Fund-- $311,005,692
Equity Index Fund-- $257,276,941
Mid-Cap Equity Index-- $1,851,081
Bond Fund-- $48,833,751)
(Notes 1 and 2) ............................... $39,588,347 $440,740,555 $349,497,836 $1,897,047 $47,330,727
Due From (To) Mutual of America
General Account ............................... (24,508) (2,814,257) 6,387 1,840 (69,463)
----------- ------------ ------------ ---------- -----------
NET ASSETS ....................................... $39,563,839 $437,926,298 $349,504,223 $1,898,887 $47,261,264
=========== ============ ============ ========== ===========
UNIT VALUE AT JUNE 30, 1999 (Note 5) ............. $ 2.07 $ 9.03 $ 3.19 $ 1.04 $ 3.10
=========== ============ ============ ========== ===========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 1999 (Note 5) ........................ 19,140,771 48,497,563 109,411,471 1,828,143 15,260,386
=========== ============ ============ ========== ===========
</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-- $4,118,655
Mid-Term Bond Fund-- $8,100,131
Composite Fund-- $272,959,156
Aggressive Equity Fund-- $115,889,252)
(Notes 1 and 2) ............................................... $4,131,788 $7,805,934 $303,182,588 $124,206,306
Due From (To) Mutual of America General Account .................. (3,108) 432 (313,935) (4,563,129)
---------- ---------- ------------ ------------
NET ASSETS ....................................................... $4,128,680 $7,806,366 $302,868,653 $119,643,177
========== ========== ============ ============
UNIT VALUE AT JUNE 30, 1999 (Note 5) ............................. $ 1.26 $ 1.32 $ 5.17 $ 2.14
========== ========== ============ ============
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 1999 (Note 5) ............ 3,270,892 5,921,603 58,564,590 55,877,007
========== ========== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
American
Scudder Century
--------------------------------------------- ------------
Capital VP Capital
Bond Growth International Appreciation
Fund Fund Fund Fund
----------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in Scudder Portfolios and American Century VP
Capital Appreciation Fund at market value
(Cost:
Scudder Bond Fund -- $21,615,479
Scudder Capital Growth Fund -- $318,863,630
Scudder International Fund -- $149,440,229
American Century VP Capital
Appreciation Fund -- $36,130,762)
(Notes 1 and 2) ............................................ $20,401,810 $459,787,441 $153,453,715 $39,139,734
Due From (To) Mutual of America General Account ............... (7,919) 143,913 (75,309) (36,796)
----------- ------------ ------------ -----------
NET ASSETS .................................................... $20,393,891 $459,931,354 $153,378,406 $39,102,938
=========== ============ ============ ===========
UNIT VALUE AT JUNE 30, 1999 (Note 5) .......................... $ 12.78 $ 39.81 $ 18.50 $ 12.34
=========== ============ ============ ===========
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 1999
(Note 5) ................................................... 1,596,372 11,553,532 8,289,322 3,168,977
=========== ============ ============ ===========
Calvert Fidelity
------------ -------------------------------------------
Social VIP VIP II VIP II
Balanced Equity-Income Contra Asset Manager
Fund Fund Fund Fund
------------ ------------ ------------ -------------
ASSETS:
Investments in Calvert Responsibly Invested Portfolio
and Fidelity Portfolios at market value
(Cost:
Calvert Responsibly Invested Portfolio -- $40,385,630
VIP Equity-Income Fund -- $107,709,832
VIP II Contra Fund -- $176,785,284
VIP II Asset Manager Fund -- $38,190,620)
(Notes 1 and 2) ............................................ $49,286,493 $136,806,203 $237,339,454 $40,756,083
Due From (To) Mutual of America General Account ............... 572 20,279 458,481 (161,774)
----------- ------------ ------------ -----------
NET ASSETS .................................................... $49,287,065 $136,826,482 $237,797,935 $40,594,309
=========== ============ ============ ===========
UNIT VALUE AT JUNE 30, 1999 (Note 5) .......................... $ 3.18 $ 34.34 $ 28.93 $ 25.16
=========== ============ ============ ===========
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 1999
(Note 5) ................................................... 15,512,111 3,984,124 8,218,530 1,613,264
=========== ============ ============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
For the Period
May 3, 1999
(Commencement
of Operatons) to
June 30, 1999
For The Six Months Ended June 30, 1999(Unaudited) (Unaudited)
------------------------------------------------ ----------------
Investment Company
------------------------------------------------------------------
Money All Equity Mid-Cap
Market America Index Equity Index
Fund Fund Fund Fund
--------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income ..................................... $ -- $ -- $ -- $ --
--------- ----------- ----------- ----------
Expenses (Note 3):
Fees ................................................ 239,728 2,569,768 1,917,733 2,309
Administrative Expenses ............................. 39,622 95,078 84,907 20
--------- ----------- ----------- ----------
Total Expenses ......................................... 279,350 2,664,846 2,002,640 2,329
--------- ----------- ----------- ----------
NET INVESTMENT INCOME (LOSS) ........................... (279,350) (2,664,846) (2,002,640) (2,329)
--------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 1):
Net realized gain (loss) on investments ............. (27,208) 5,815,199 3,622,711 8,284
Net unrealized appreciation (depreciation) of
investments ....................................... 927,637 42,913,450 32,221,970 45,966
--------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ......................................... 900,429 48,728,649 35,844,681 54,250
--------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .......................................... $621,079 $46,063,803 $33,842,041 $ 51,921
========= =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1999 (Unaudited)
------------------------------------------------------------------
Investment Company
---------------------------------------------------------------
Aggressive
Bond Short-Term Mid-Term Composite Equity
Fund Bond Fund Bond Fund Fund Fund
------------ ---------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income ..................................... $ -- $ -- $ -- $ -- $ --
----------- ------- -------- ----------- ----------
Expenses (Note 3):
Fees ................................................ 310,538 24,437 53,027 1,838,500 725,272
Administrative Expenses ............................. 39,606 5,342 7,268 105,404 25,682
----------- ------- -------- ----------- ----------
Total Expenses ......................................... 350,144 29,779 60,295 1,943,904 750,954
----------- ------- -------- ----------- ----------
NET INVESTMENT INCOME (LOSS) ........................... (350,144) (29,779) (60,295) (1,943,904) (750,954)
----------- ------- -------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ............. (216,658) (7,553) (99,730) 739,552 (561,766)
Net unrealized appreciation (depreciation) of
investments ....................................... (642,966) 87,089 123,935 15,443,969 7,701,629
----------- ------- -------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ......................................... (859,624) 79,536 24,205 16,183,521 7,139,863
----------- ------- -------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $(1,209,768) $49,757 $(36,090) $14,239,617 $6,388,909
=========== ======= ======== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
American
Scudder Century
-------------------------------------------- ------------
Capital VP Capital
Bond Growth International Appreciation
Fund Fund Fund Fund
------------ ----------- ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income ..................................... $1,050,427 $44,257,354 $14,242,990 $ --
---------- ----------- ----------- ---------
Expenses (Note 3):
Fees ................................................ 133,730 2,658,688 858,708 186,153
Administrative Expenses ............................. 20,574 48,152 7,934 3,172
---------- ----------- ----------- ---------
Total Expenses ......................................... 154,304 2,706,840 866,642 189,325
---------- ----------- ----------- ---------
NET INVESTMENT INCOME (LOSS) ........................... 896,123 41,550,514 13,376,348 (189,325
---------- ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ............. (82,776) 3,999,892 8,991,193 (15,163
Net unrealized appreciation (depreciation) of
investments ....................................... (1,229,752) (2,486,387) (8,941,033) 5,435,719
---------- ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ......................................... (1,312,528) 1,513,505 50,160 5,420,556
---------- ----------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .......................................... $ (416,405) $43,064,019 $13,426,508 $5,231,231
========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Calvert Fidelity
---------- ---------------------------------------------
Social VIP VIP II VIP II
Balanced Equity-Income Contra Asset Manager
Fund Fund Fund Fund
---------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income ..................................... $ -- $ 5,815,790 $ 7,578,736 $2,737,257
---------- ----------- ----------- ----------
Expenses (Note 3):
Fees ................................................ 285,761 725,107 1,184,035 217,539
Administrative Expenses ............................. 35,395 81,846 42,804 35,366
---------- ----------- ----------- ----------
Total Expenses ......................................... 321,156 806,953 1,226,839 252,905
--------- ----------- ----------- ---------
NET INVESTMENT INCOME (LOSS) ........................... (321,156) 5,008,837 6,351,897 2,484,352
---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ............. 159,810 1,459,218 6,855,281 87,272
Net unrealized appreciation (depreciation) of
investments ....................................... 2,139,052 8,058,435 7,373,725 (833,358)
---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ......................................... 2,298,862 9,517,653 14,229,006 (746,086)
---------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .......................................... $1,977,706 $14,526,490 $20,580,903 $1,738,266
========== =========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<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, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ -------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) .............. $ (279,350) $ 1,241,369 $ (2,664,846) $ 42,592,167 $ (2,002,640) $ 17,958,857
Net realized gain (loss) on investments ... (27,208) 94,044 5,815,199 10,190,529 3,622,711 3,546,239
Net unrealized appreciation (depreciation)
of investments .......................... 927,637 (8,215) 42,913,450 12,779,143 32,221,970 26,951,145
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) in net assets
resulting from operations ................. 621,079 1,327,198 46,063,803 65,561,839 33,842,041 48,456,241
----------- ----------- ------------ ------------ ------------ ------------
From Unit Transactions:
Contributions ............................. 3,391,258 7,176,418 17,338,097 33,052,837 25,497,919 38,144,487
Withdrawals ............................... (3,716,118) (4,295,360) (17,836,749) (27,468,692) (15,094,881) (16,569,868)
Net Transfers ............................. 412,923 1,797,850 (6,334,054) (19,139,304) 35,972,923 44,795,692
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) from unit transactions. 88,063 4,678,908 (6,832,706) (13,555,159) 46,375,961 66,370,311
----------- ----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ........ 709,142 6,006,106 39,231,097 52,006,680 80,218,002 114,826,552
NET ASSETS:
Beginning of Period/Year ..................... 38,854,697 32,848,591 398,695,201 346,688,521 269,286,221 154,459,669
----------- ----------- ------------ ------------ ------------ ------------
End of Period/Year ........................... $39,563,839 $38,854,697 $437,926,298 $398,695,201 $349,504,223 $269,286,221
=========== =========== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------------------
Mid-Cap Equity
Index Fund Bond Fund Short-Term Bond Fund
---------------- --------------------------- ---------------------------
For The Period
May 3, 1999
(Commencement of For the Six For the For the Six For the
Operations) to Months Ended Year Ended Months Ended Year Ended
June 30, 1999 June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) (Unaudited) 1998 (Unaudited) 1998
--------------- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ............... $ (2,329) $ (350,144) $ 3,203,532 $ (29,779) $ 129,166
Net realized gain (loss) on investments .... 8,284 (216,658) 196,930 (7,553) 3,822
Net unrealized appreciation (depreciation)
of investment ............................ 45,966 (642,966) (981,434) 87,089 (6,616)
---------- ----------- ----------- ---------- ----------
Net Increase (Decrease) in net assets
resulting from operations .................. 51,921 (1,209,768) 2,419,028 49,757 126,372
---------- ----------- ----------- ---------- ----------
From Unit Transactions:
Contributions .............................. 9,624 3,779,416 7,033,074 442,457 734,187
Withdrawals ................................ -- (3,493,443) (4,982,221) (454,693) (427,168)
Net Transfers .............................. 1,837,342 (8,097,135) 13,841,212 153,521 696,139
---------- ----------- ----------- ---------- ----------
Net Increase (Decrease) from unit transactions 1,846,966 (7,811,162) 15,892,065 141,285 1,003,158
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS ......... 1,898,887 (9,020,930) 18,311,093 191,042 1,129,530
NET ASSETS:
Beginning of Period/Year ...................... -- 56,282,194 37,971,101 3,937,638 2,808,108
---------- ----------- ----------- ---------- ----------
End of Period/Year ............................ $1,898,887 $47,261,264 $56,282,194 $4,128,680 $3,937,638
========== =========== =========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Investment Company
-------------------------------------------------------------------------------------
Mid-Term Bond Fund Composite Fund Aggressive Equity 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, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ -------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) .............. $ (60,295) $ 404,186 $ (1,943,904) $ 8,561,297 $ (750,954) $ (616,621)
Net realized gain (loss) on investments ... (99,730) (28,267) 739,552 554,735 (561,766) (632,431)
Net unrealized appreciation (depreciation)
of investments .......................... 123,935 (46,309) 15,443,969 24,996,236 7,701,629 (8,050,244)
----------- ---------- ------------ ----------- ---------- ----------
Net Increase (Decrease) in net assets
resulting from operations ................. (36,090) 329,610 14,239,617 34,112,268 6,388,909 (9,299,296)
----------- ---------- ------------ ----------- ---------- ----------
From Unit Transactions:
Contributions ............................. 751,258 1,120,290 12,654,127 25,635,215 11,973,483 28,696,822
Withdrawals ............................... (1,303,483) (627,755) (13,725,980) (23,076,061) (9,137,854) (12,588,115)
Net transfers ............................. (1,299,877) 3,231,316 (5,191,619) (9,295,063) (16,951,243) (33,256,371)
----------- ---------- ------------ ----------- ---------- ----------
Net Increase (Decrease) from unit transactions (1,852,102) 3,723,851 (6,263,472) (6,735,909) (14,115,614) (17,147,664)
----------- ---------- ------------ ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS ........ (1,888,192) 4,053,461 7,976,145 27,376,359 (7,726,705) (26,446,960)
NET ASSETS:
Beginning of Period/Year ..................... 9,694,558 5,641,097 294,892,508 267,516,149 127,369,882 153,816,842
----------- ---------- ------------ ----------- ---------- ----------
End of Period/Year ........................... $ 7,806,366 $ 9,694,558 $302,868,653 $294,892,508 $119,643,177 $127,369,882
=========== =========== ============ ============ ============ ============
</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, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ............. $ 896,123 $ 933,704 $ 41,550,514 $ 16,281,461 $ 13,376,348 $ 14,005,911
Net realized gain (loss) on investments .. (82,776) (12,188) 3,999,892 7,179,053 8,991,193 7,712,372
Net unrealized appreciation
(depreciation) of investments .......... (1,229,752) 56,186 (2,486,387) 46,681,634 (8,941,033) (2,792,240)
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) in net assets
resulting from operations .............. (416,405) 977,702 43,064,019 70,142,148 13,426,508 18,926,043
----------- ----------- ------------ ------------ ------------ ------------
From Unit Transactions:
Contributions ............................ 1,768,478 3,111,360 23,819,211 45,075,165 8,187,930 15,352,696
Withdrawals .............................. (1,921,839) (1,812,991) (20,973,062) (27,386,892) (8,339,423) (11,406,891)
Net Transfers ............................ (1,914,219) 2,253,912 566,343 (3,209,197) 4,622,438 (6,070,868)
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) from unit
transactions .............................. (2,067,580) 3,552,281 3,412,492 14,479,076 4,470,945 (2,125,063)
----------- ----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ....... (2,483,985) 4,529,983 46,476,511 84,621,224 17,897,453 16,800,980
NET ASSETS:
Beginning of Period/Year .................... 22,877,876 18,347,893 413,454,843 328,833,619 135,480,953 118,679,973
----------- ----------- ------------ ------------ ------------ ------------
End of Period/Year .......................... $20,393,891 $22,877,876 $459,931,354 $413,454,843 $153,378,406 $135,480,953
=========== =========== ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
American Century Calvert
---------------------------- ----------------------------
VP Capital Appreciation Fund Social Balanced Fund
---------------------------- ----------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Years Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income (loss) ..................... $ (189,325) $ 1,754,036 $ (321,156) $ 2,596,096
Net realized gain (loss) on investments .......... (15,163) (1,068,586) 159,810 276,019
Net unrealized appreciation (depreciation)
of investments ................................. 5,435,719 (2,044,118) 2,139,052 2,332,229
----------- ----------- ----------- -----------
Net Increase (Decrease) in net assets
resulting from operations ...................... 5,231,231 (1,358,668) 1,977,706 5,204,344
----------- ----------- ----------- -----------
From Unit Transactions:
Contributions .................................... 2,177,123 5,340,709 4,667,257 7,547,920
Withdrawals ...................................... (2,168,199) (4,483,088) (2,197,124) (2,809,892)
Net Transfers .................................... (1,431,460) (13,981,957) 1,489,087 365,285
----------- ----------- ----------- -----------
Net Increase (Decrease) from unit transactions ...... (1,422,536) (13,124,336) 3,959,220 5,103,313
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ............... 3,808,695 (14,483,004) 5,936,926 10,307,657
NET ASSETS:
Beginning of Period/Year ............................ 35,294,243 49,777,247 43,350,139 33,042,482
----------- ----------- ----------- -----------
End of Period/Year .................................. $39,102,938 $35,294,243 $49,287,065 $43,350,139
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Fidelity
--------------------------------------------------------------------------------
VIP VIP II VIP II
Equity-Income Contra Asset Manager
Fund Fund Fund
-------------------------- -------------------------- -------------------------
For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income (loss) ..............$ 5,008,837 $ 5,005,961 $ 6,351,897 $ 5,083,661 $ 2,484,352 $ 2,902,330
Net realized gain (loss) on investments. .. 1,459,218 853,854 6,855,281 2,644,396 87,272 (12,448)
Net unrealized appreciation (depreciation)
of investments .......................... 8,058,435 4,356,202 7,373,725 27,595,754 (833,358) 895,986
----------- ----------- ----------- ----------- ----------- ------------
Net Increase (Decrease) in net assets
resulting from operations ............... 14,526,490 10,216,017 20,580,903 35,323,811 1,738,266 3,785,868
----------- ----------- ----------- ----------- ----------- -----------
From Unit Transactions:
Contributions ............................. 11,440,874 22,499,025 17,911,107 25,700,149 4,842,128 8,419,597
Withdrawals ............................... (8,647,708) (9,180,957) (12,278,485) (11,133,735) (2,251,469) (2,785,815)
Net Transfers ............................. (3,646,340) 2,658,613 35,249,744 11,315,492 768,578 2,047,842
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) from unit
transactions .............................. (853,174) 15,976,681 40,882,276 25,881,906 3,089,237 7,681,624
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ........ 13,673,316 26,192,698 61,463,179 61,205,717 4,827,503 11,467,492
NET ASSETS:
Beginning of Period/Year .....................123,153,166 96,960,468 176,334,756 115,129,039 35,766,806 24,299,314
----------- ----------- ----------- ----------- ----------- -----------
End of Period/Year ......................... $136,826,482 $123,153,166 $ 237,767,935 $ 176,334,756 $40,594,309 $35,766,806
============ ============ ============= ============= =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<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 alternatives: Scudder Bond, Scudder Capital Growth,
Scudder International and VP Capital Appreciation. 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 Social Balanced Fund (formerly, Calvert Responsibly Invested
Balanced Portfolio) became available as an investment alternative. The Calvert
Social Balanced Fund invests in a corresponding fund of Calvert Social Balanced
Portfolio of Calvert Variable Series, Inc. (formerly, the Calvert Responsibly
Invested Balanced Portfolio of Acacia Capital Corporation) ("Calvert").
On February 5, 1993 the Investment Company Equity Index, Short-Term Bond
and Mid-Term Bond Funds became available to Separate Account No. 2 as investment
alternatives. On May 2, 1994 the Aggressive Equity Fund of the Investment
Company became available. 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. The Fidelity Equity-Income Portfolio
invests in a corresponding portfolio of Fidelity Variable Insurance Products
Fund and the Contrafund Portfolio and Asset Manager Portfolio invest in
corresponding portfolios of Fidelity Variable Insurance Products Fund II
(collectively, "Fidelity").
On May 3, 1999 the Mid-Cap Equity Index Fund of the Investment Company
became available to Separate Account No. 2.
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 will be treated as a part of
the Company and will not be taxed separately as a "regulated investment company"
under existing law. The Company is taxed as a life insurance company under the
life insurance tax provisions of the Internal Revenue Code of 1986. No provision
for income taxes is required in the accompanying financial statements.
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, 1999 are as
follows:
Number of Net Asset
Shares Value
--------- ---------
Investment Company Funds:
Money Market Fund ............................ 32,657,725 $1.21
All America Fund ............................. 135,528,201 3.25
Equity Index Fund ............................ 127,033,290 2.75
Mid-Cap Equity Index Fund .................... 1,822,531 1.04
Bond Fund .................................... 33,814,788 1.40
Short-Term Bond Fund ......................... 3,933,156 1.05
Mid-Term Bond Fund ........................... 8,556,391 0.91
Composite Fund ............................... 161,431,524 1.88
Aggressive Equity Fund ....................... 77,048,478 1.61
12
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Number of Net Asset
Shares Value
---------- ---------
Scudder Portfolios:
Bond Portfolio .................................. 3,153,294 $ 6.47
Capital Growth Portfolio--Class "A" ............. 19,221,883 23.92
International Portfolio--Class "A" .............. 10,597,632 14.48
American Century VP Capital Appreciation Fund ...... 3,738,275 10.47
Calvert Social Balanced Portfolio .................. 21,934,354 2.25
Fidelity Portfolios:
Equity-Income--"Initial" Class .................. 5,020,411 27.26
Contrafund--"Initial" Class ..................... 9,093,466 26.10
Asset Manager--"Initial" Class .................. 2,303,905 17.69
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 such 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 1999. It is the Investment Company's practice to declare and
pay dividends at the end of the year.
On January 27, 1999 and April 28, 1999, dividends were paid by the Scudder
Bond Portfolio. The combined amount of the dividends was $1,050,427.
On January 27, 1999, and April 28, 1999, dividends were paid by the Scudder
Capital Growth Portfolio. The combined amount of the dividends was $44,257,354.
On April 28, 1999, a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $14,242,990.
On February 5, 1999, a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $5,815,790.
On February 5, 1999, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $7,578,736.
On February 5, 1999, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $2,737,257.
13
<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, 1999 and each of the five years ended December 31,
1998, or, if not in existence a full year, the initial period ended December 31:
<TABLE>
<CAPTION>
Investment Company Money Market Fund
-------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ................................. $ 2.03 $ 1.95 $ 1.87 $ 1.80 $ 1.72 $ 1.68
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 2.07 $ 2.03 $ 1.95 $ 1.87 $ 1.80 $ 1.72
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 19,141 19,121 16,831 17,511 17,502 17,653
====== ====== ====== ====== ====== ======
Investment Company All America Fund
-------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $ 8.09 $ 6.76 $ 5.39 $ 4.52 $ 3.35 $ 3.36
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 9.03 $ 8.09 $ 6.76 $ 5.39 $ 4.52 $ 3.35
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 48,498 49,275 51,312 49,798 43,620 38,669
====== ====== ====== ====== ====== ======
Investment Company Mid-Cap Equity Index Fund
-------------------------------------------------
1999*
-----
Unit value, beginning of period/year ................................. $ 1.00
======
Unit value, end of period/year ....................................... $ 1.04
======
Thousands of units outstanding, end of period/year ................... 1,828
======
Investment Company Equity Index Fund
-------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $ 2.86 $ 2.26 $ 1.72 $ 1.42 $ 1.05 $ 1.05
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 3.19 $ 2.86 $ 2.26 $ 1.72 $ 1.42 $ 1.05
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 109,411 94,019 68,462 35,660 17,109 4,644
====== ====== ====== ====== ====== ======
Investment Company Bond Fund
-------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $ 3.17 $ 3.00 $ 2.75 $ 2.69 $ 2.28 $ 2.39
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 3.10 $ 3.17 $ 3.00 $ 2.75 $ 2.69 $ 2.28
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 15,260 17,746 12,671 12,548 12,083 10,601
====== ====== ====== ====== ====== ======
Investment Company Short-Term Bond Fund
-------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $1.24 $ 1.19 $ 1.14 $ 1.10 $ 1.03 $ 1.03
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $1.26 $ 1.24 $ 1.19 $ 1.14 $ 1.10 $ 1.03
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 3,271 3,164 2,355 2,129 1,447 1,132
====== ====== ====== ====== ====== ======
</TABLE>
- ----------
* Commenced operations May 3, 1999.
14
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
Investment Company Mid-Term Bond Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ................................. $ 1.32 $ 1.26 $ 1.19 $ 1.16 $ 1.01 $ 1.06
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 1.32 $ 1.32 $ 1.26 $ 1.19 $ 1.16 $ 1.01
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 5,922 7,325 4,478 3,828 2,848 1,444
====== ====== ====== ====== ====== ======
Investment Company Composite Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $ 4.93 $ 4.36 $ 3.75 $ 3.39 $ 2.82 $ 2.95
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 5.17 $ 4.93 $ 4.36 $ 3.75 $ 3.39 $ 2.82
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 58,565 59,833 61,359 66,715 70,558 73,239
====== ====== ====== ====== ====== ======
Investment Company Aggressive Equity Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $ 2.02 $ 2.15 $ 1.80 $ 1.43 $ 1.05 $ 1.00
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 2.14 $ 2.02 $ 2.15 $ 1.80 $ 1.43 $ 1.05
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 55,877 63,176 71,468 49,800 20,858 9,145
====== ====== ====== ====== ====== ======
Scudder Bond Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $13.02 $12.37 $11.48 $11.30 $ 9.69 $10.32
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $12.78 $13.02 $12.37 $11.48 $11.30 $ 9.69
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 1,596 1,757 1,484 1,362 1,269 1,169
====== ====== ====== ====== ====== ======
Scudder Capital Growth Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $36.07 $29.64 $22.11 $18.64 $14.67 $16.46
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $39.81 $36.07 $29.64 $22.11 $18.64 $14.67
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 11,554 11,462 11,094 9,266 8,556 8,121
====== ====== ====== ====== ====== ======
Scudder International Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $16.93 $14.46 $13.43 $11.85 $10.80 $11.06
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $18.50 $16.93 $14.46 $13.43 $11.85 $10.80
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 8,289 8,004 8,205 7,688 7,269 8,610
====== ====== ====== ====== ====== ======
American Century
------------------------------------------------
VP Capital Appreciation Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $10.69 $11.04 $11.53 $12.18 $ 9.39 $ 9.61
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $12.34 $10.69 $11.04 $11.53 $12.18 $ 9.39
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 3,169 3,303 4,510 7,264 8,061 6,361
====== ====== ====== ====== ====== ======
Calvert
------------------------------------------------
Social Balanced Fund
------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
Unit value, beginning of period/year ................................. $ 3.04 $ 2.65 $ 2.23 $ 2.01 $ 1.57 $ 1.64
====== ====== ====== ====== ====== ======
Unit value, end of period/year ....................................... $ 3.18 $ 3.04 $ 2.65 $ 2.23 $ 2.01 $ 1.57
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year ................... 15,512 14,257 12,479 10,713 7,849 5,986
====== ====== ====== ====== ====== ======
</TABLE>
15
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
Fidelity
---------------------------------------------------------------------------------
VIP Equity-Income Fund VIP II Contra Fund
----------------------------------------- --------------------------------------
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ....................... $30.65 $27.77 $21.93 $19.43 $16.30 $26.16 $20.36 $16.59 $13.85 $11.43
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of
period/year .......................... $34.34 $30.65 $27.77 $21.93 $19.43 $28.93 $26.16 $20.36 $16.59 $13.85
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Thousands of units outstanding,
end of period/year ................... 3,984 4,018 3,491 2,34 728 8,219 6,742 5,656 3,880 1,792
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Fidelity
--------------------------------------
VIP II Asset Manager Fund
--------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year $24.04 $21.14 $17.72 $15.66 $14.04
====== ====== ====== ====== ======
Unit value, end of period/year $25.16 $24.04 $21.14 $17.72 $15.66
====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year 1,613 1,488 1,150 613 184
====== ====== ====== ====== ======
</TABLE>
16
<PAGE>
MUTUAL OF AMERICA LIFE INSURANCE COMPANY
320 Park Avenue
New York, NY 10022-6839
212-224-1600
www.mutualofamerica.com
