MUTUAL OF AMERICA
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
JUNE 30, 2000
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, 2000
Dear Participant:
We are pleased to send you the 2000 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, 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 of American Century Variable Portfolios, Inc.
("American Century"); the Calvert Social Balanced Portfolio of Calvert Variable
Series, Inc. ("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 invested in 2000 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. The Fund
invests approximately 60% of its assets (the "Indexed Assets") to provide
investment results that correspond to the performance of the S&P 500 Index. The
remaining approximately 40% of its assets (the "Active Assets") 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 to provide 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 to provide 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
money market instruments. The average maturity of the Fund is between one and
three years.
1
<PAGE>
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. The average maturity of the
Fund is between three and seven years.
Investment Company Composite Fund: This Fund seeks to achieve, 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.
Investment Company Aggressive Equity Fund: This Fund's investment
objective is capital appreciation, by investing in companies believed to possess
above-average growth potential and 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 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. The Portfolio
may invest up to 20% of its assets in intermediate to longer-term debt
instruments depending on market and economic conditions.
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 return through an actively managed, non-diversified portfolio of stocks,
bonds and money market instruments that offer income and growth opportunity and
satisfy the social concern criteria established 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 over the long term by investing in securities of companies whose
value, the Portfolio's adviser believes, is not fully recognized by the public.
These securities may be issued by domestic or foreign companies and many may not
be well known. The Portfolio normally invests primarily in common stocks.
Fidelity VIP II Asset Manager Portfolio: This Portfolio seeks high total
return with reduced risk over the long term by allocating its assets among
domestic and foreign 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.
2
<PAGE>
For the six months ended June 30, 2000, the following total returns were
experienced in these seventeen Separate Account Funds:
Investment Company Money Market Fund(1).............. + 2.3%
Investment Company All America Fund.................. + 4.3%
Investment Company Equity Index Fund................. - 1.1%
Investment Company Mid-Cap Equity Index Fund......... + 7.4%
Investment Company Bond Fund......................... + 2.9%
Investment Company Short-Term Bond Fund.............. + 2.6%
Investment Company Mid-Term Bond Fund................ + 0.9%
Investment Company Composite Fund.................... - 0.5%
Investment Company Aggressive Equity Fund............ + 3.1%
Scudder Bond Fund.................................... + 2.5%
Scudder Capital Growth Fund.......................... + 2.7%
Scudder International Fund........................... - 11.5%
American Century VP Capital Appreciation Fund........ + 16.7%
Calvert Social Balanced Fund......................... + 2.0%
Fidelity VIP Equity-Income Fund...................... - 3.3%
Fidelity VIP II Contrafund........................... - 1.9%
Fidelity VIP II Asset Manager Fund................... - 1.3%
----------
(1) The seven-day net annualized effective yield as of 8/15/00 was 5.4%
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. 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 other 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, 2000 (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-- $51,076,720
All America Fund-- $359,120,626
Equity Index Fund-- $288,300,800
Mid-Cap Equity Index-- $14,556,096
Bond Fund-- $45,289,229)
(Notes 1 and 2) ................................. $51,782,133 $514,815,629 $379,554,103 $15,041,202 $42,685,127
Due From (To) Mutual of America
General Account ................................. (208,076) (3,644,528) (5,398) (1,759) 62,913
----------- ------------ ------------ ----------- -----------
NET ASSETS ......................................... $51,574,057 $511,171,101 $379,548,705 $15,039,443 $42,748,040
=========== ============ ============ =========== ===========
UNIT VALUE AT JUNE 30, 2000 (Note 5) ............... $ 2.16 $ 10.50 $ 3.38 $ 1.19 $ 3.17
=========== ============ ============ =========== ===========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 2000 (Note 5) .......................... 23,894,257 48,699,854 112,320,796 12,627,883 13,501,077
=========== ============ ============ =========== ===========
</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-- $4,839,969
Mid-Term Bond Fund-- $7,718,609
Composite Fund-- $281,685,056
Aggressive Equity Fund-- $186,964,263)
(Notes 1 and 2) ............................................... $4,761,203 $7,359,172 $313,223,372 $234,871,161
Due From (To) Mutual of America General Account .................. 13,932 (127,509) 225,649 (5,779,325)
---------- ---------- ------------ ------------
NET ASSETS ....................................................... $4,775,135 $7,231,663 $313,449,021 $229,091,836
========== ========== ============ ============
UNIT VALUE AT JUNE 30, 2000 (Note 5) ............................. $ 1.32 $ 1.34 $ 5.58 $ 2.94
========== ========== ============ ============
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 2000 (Note 5) ............ 3,629,250 5,401,254 56,129,892 77,819,587
========== ========== ============ ============
</TABLE>
5
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
<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 at
market value
(Cost:
Scudder Bond Fund -- $20,560,375
Scudder Capital Growth Fund -- $399,337,223
Scudder International Fund-- $232,254,698
American Century VP Capital Appreciation
Fund-- $98,874,733)
(Notes 1 and 2) ............................................... $19,218,190 $580,892,227 $224,267,026 $120,330,217
Due From (To) Mutual of America General Account .................. (94,811) 304,068 (143,983) (1,479,355)
----------- ------------ ------------ ------------
NET ASSETS ....................................................... $19,123,379 $581,196,295 $224,123,043 $118,850,862
=========== ============ ============ ============
UNIT VALUE AT JUNE 30, 2000 (Note 5) ............................. $ 13.07 $ 49.52 $ 22.89 $ 20.33
=========== ============ ============ ============
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 2000 (Note 5) ............ 1,462,928 11,735,965 9,792,497 5,846,280
=========== ============ ============ ============
</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>
ASSETS:
Investments in Calvert Responsibility Invested
Portfolio and Fidelity Portfolios at market value
(Cost:
Calvert Responsibility Invested Portfolio -- $49,575,527
VIP Equity-Income Fund -- $109,882,338
VIP II Contra Fund -- $238,718,573
VIP II Asset Manager Fund -- $48,293,683)
(Notes 1 and 2)........................................... $57,693,853 $114,882,608 $276,153,616 $47,970,448
Due From (To) Mutual of America General Account.............. 26,206 60,394 124.463 (83,700)
---------- ----------- ----------- ----------
Net Assets................................................... $57,720,059 $114,943,002 $276,278,079 $47,886,748
========== =========== =========== ==========
Unit Value at June 30, 2000 (Note 5)......................... $ 3.44 $ 31.19 $ 31.55 $ 26.09
========== =========== =========== ==========
Number of Units Outstanding at June 30, 2000 (Note 5) 16,767,993 3,684,702 8,758,161 1,835,581
The accompanying notes are an integral part of these financial statements.
</TABLE>
6
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
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 (Notes 1 and 4):
Dividend Income.......................................... $ -- $ -- $ -- $ --
---------- ---------- ------------ -----------
Expenses (Note 3):
Fees and administrative expenses......................... 299,409 2,900,851 2,195,581 48,582
--------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS)................................ (299,409) (2,900,851) (2,195,581) (48,582)
---------- ---------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments.................. (50,440) 8,059,124 8,313,267 254,475
Net unrealized appreciation (depreciation) of investments 1,418,454 15,959,709 (10,111,515) 240,971
---------- ---------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 1,368,014 24,018,833 (1,798,248) 495,446
---------- ---------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................... $1,068,605 $21,117,982 $(3,993,829) $ 446,864
========= ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
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 (Notes 1 and 4):
Dividend Income...................................... $ -- $ -- $ -- $ -- $ --
---------- -------- --------- ----------- -----------
Expenses (Note 3):
Fees and administrative expenses..................... 275,394 32,547 50,485 1,859,495 1,235,838
---------- -------- --------- ---------- ----------
NET INVESTMENT INCOME (LOSS)............................ (275,394) (32,547) (50,485) (1,859,495) (1,235,838)
---------- -------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments.............. (492,034) (18,707) (180,173) 1,652,431 9,415,659
Net unrealized appreciation (depreciation) of
investments ......................................... 1,966,087 169,724 304,142 (1,369,677) (3,428,900)
---------- -------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ......................................... 1,474,053 151,017 123,969 282,754 5,986,759
---------- -------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $1,198,659 $118,470 $ 73,484 $(1,576,741) $ 4,750,921
========== ======== ========= =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
Scudder American Century
----------------------------------------- ----------------
Capital VP Capital
Bond Growth International Appreciation
Fund Fund Fund Fund
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Notes 1 and 4):
Dividend Income.......................................... $ 991,893 $ 67,116,890 $ 25,284,109 $ 2,647,753
--------- ------------ ------------ -----------
Expenses (Note 3):
Fees and administrative expenses......................... 127,216 3,173,222 1,268,998 434,036
--------- ------------ ------------ -----------
NET INVESTMENT INCOME (LOSS)................................ 864,677 63,943,668 24,015,111 2,213,717
--------- ------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments.................. (126,938) 6,307,565 9,627,283 6,132,984
Net unrealized appreciation (depreciation) of
investments ............................................. (276,870) (54,518,247) (51,990,192) 4,602,981
--------- ------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ............................................. (403,808) (48,210,682) (42,362,909) 10,735,965
--------- ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. $ 460,869 $ 15,732,986 $(18,347,798) $12,949,682
========= ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Calvert Fidelity
--------- ---------------------------------------------
Social VIP VIP II VIP II
Balanced Equity-Income Contra Asset Manager
Fund Fund Fund Fund
------------ ------------- --------- -------------
<S> <C> $ $ $
INVESTMENT INCOME AND EXPENSES: _
Income (Notes 1 and 4):
Dividend Income.......................................... $ -- $ 10,039,056 $ 34,554,059 $ 4,844,520
----------- ------------ ----------- ------------
Expenses (Note 3):
Fees and administrative expenses......................... 346,747 692,153 1,444,762 277,656
-------------------------- ------------- ----------
NET INVESTMENT INCOME (LOSS)................................ (346,747) 9,346,903 33,109,297 4,566,864
----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON ~INVESTMENTS (Note 1):
Net realized gain (loss) on investments.................. 222,788 1,718,979 5,164,384 60,590
Net unrealized appreciation (depreciation) of
investments ............................................. 1,298,781 (15,582,478)$ (43,498,274) (5,252,716
----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ............................................. 1,521,569 (13,863,499) (38,333,890) $(5,192,126
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. $ 1,174,822 $ (4,516,596)$ (5,224,593 $ (625,262
=========== ============ ============ ============
</TABLE>
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, 2000 December 31, June 30, 2000 December31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ......... $ (299,409) $ 1,460,097 $ (2,900,851) $ 31,023,610 $ (2,195,581) $ 5,577,241
Net realized gain (loss) on
investments ........................ (50,440) 77,005 8,059,124 11,573,648 8,313,267 11,274,282
Net unrealized appreciation
(depreciation) of investments ...... 1,418,454 (127,237) 15,959,709 52,913,881 (10,111,515) 41,365,894
Net Increase (Decrease) in net
assets resulting~from operations ..... 1,068,605 1,409,865 21,117,982 95,511,139 (3,993,829) 58,217,417
----------- ----------- ------------ ------------ ------------ ------------
From Unit Transactions:
Contributions......................... 3,567,296 7,000,569 20,739,947 35,610,297 29,211,623 55,688,442
Withdrawals........................... (6,063,251) (7,125,494) (24,368,589) (33,534,302) (21,304,616) (30,127,569)
Net transfers Note 6.................. 9,222,719 3,639,051 11,071,577 (13,672,151) (8,983,288) 31,554,304
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) from unit
transactions 6,726,764 3,514,126 7,442,935 (11,596,156) (1,076,281) 57,115,177
----------- ----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS.... 7,795,369 4,923,991 28,560,917 83,914,983 (5,070,110) 115,332,594
NET ASSETS:
Beginning of Period/Year................. 43,778,688 38,854,697 482,610,184 398,695,201 384,618,815 269,286,221
----------- ----------- ------------ ------------ ------------ ------------
End of Period/Year....................... $51,574,057 $43,778,688 $511,171,101 $482,610,184 $379,548,705 $384,618,815
=========== =========== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Investment Company
-------------------------------------------------------------------------------------
Mid-Cap Equity
Index Fund Bond Fund Short-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, 2000 December 31, June 30, 2000 December31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).......... $ (48,582) $ 6,811 $ (275,394) $ 2,486,158 $ (32,547) $ 310,602
Net realized gain (loss) on
investments .......................... 254,475 (9,366) (492,034) (370,043) (18,707) 117
Net unrealized appreciation
(depreciation) of investment .......... 240,971 244,135 1,966,087 (3,710,131) 169,724 (174,534)
----------- ---------- ----------- ----------- ---------- ----------
Net Increase (Decrease) in net assets
resulting from operations............ 446,864 241,580 1,198,659 (1,594,016) 118,470 136,185
----------- ---------- ----------- ----------- ---------- ----------
From Unit Transactions:
Contributions......................... 868,350 353,431 2,948,043 7,241,958 493,009 1,048,219
Withdrawals........................... (467,616) (49,137) (2,977,493) (5,979,743) (308,514) (901,800)
Net transfers Note 6.................. 10,390,774 3,255,197 (2,322,244) (12,049,318) (144,763) 396,691
----------- ---------- ----------- ----------- ---------- ----------
Net Increase (Decrease) from unit
transactions 10,791,508 3,559,491 (2,351,694) (10,787,103) 39,732 543,110
NET INCREASE (DECREASE) IN NET ASSETS.... 11,238,372 3,801,071 (1,153,035) (12,381,119) 158,202 679,295
NET ASSETS:
Beginning of Period/Year................. 3,801,071 -- 43,901,075 56,282,194 4,616,933 3,937,638
----------- ---------- ----------- ----------- ---------- ----------
End of Period/Year....................... $15,039,443 $3,801,071 $42,748,040 $43,901,075 $4,775,135 $4,616,933
=========== ========== =========== =========== ========== ==========
</TABLE>
----------
* Commenced operations May 3, 1999.
9
<PAGE>
<TABLE>
<CAPTION>
Investment Company
-------------------------------------------------------------------------------------
Mid-Term Bond Fund Composite FundAggressive 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, 2000 December 31, June 30, 2000 December31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ----------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ (50,485) $ ~372,419 $ (1,859,495) $ 18,255,984 $ (1,235,838) $ (1,620,468)
Net realized gain (loss) on investments (180,173) (131,810) 1,652,431 2,253,148 9,415,659 291,748
Net unrealized appreciation
(depreciation) of investments ......... 304,142 (245,448) (1,369,677) 18,128,529 (3,428,900) 50,720,384
VNet Increase (Decrease) in net assets
resulting~from operations ............ 73,484 (4,839) (1,576,741) 38,637,661 4,750,921 49,391,664
---------- ---------- ------------ ------------ ------------ ------------
From Unit Transactions:
Contributions......................... 724,814 1,468,498 12,900,060 24,264,832 16,083,809 23,951,530
Withdrawals........................... (1,004,352) (1,830,214) (15,099,325) (26,391,103) (10,192,040) (15,330,684)
Net transfers (Note 6)................ (560,769) (1,329,517) 978,057 (15,156,928) 41,219,365 (8,152,611)
---------- ---------- ------------ ------------ ------------ ------------
Net Increase (Decrease) from unit
transactions ......................... (840,307) (1,691,233) (1,221,208) (17,283,199) 47,111,134 468,235
---------- ---------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS.... (766,823) (1,696,072) (2,797,949) 21,354,462 51,862,055 49,859,899
NET ASSETS:
Beginning of Period/Year................. 7,998,486 9,694,558 316,246,970 294,892,508 177,229,781 127,369,882
---------- ---------- ------------ ------------ ------------ ------------
End of Period/Year....................... $7,231,663 $7,998,486 $313,449,021 $316,246,970 $229,091,836 $177,229,781
========== ========== ============ ============ ============ ============
</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, 2000 December 31, June 30, 2000 December31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ----------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ ~864,677 $ ~750,940 $ 63,943,668 $ 38,502,767 $ 24,015,111 $ 12,301,717
Net realized gain (loss) on
investments .......................... (126,938) (169,851) 6,307,565 8,660,945 9,627,283 31,048,709
Net unrealized appreciation
(depreciation) of investments ......... (276,870) (1,081,398) (54,518,247) 92,663,054 (51,990,192) 31,048,001
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) in net assets
resulting from operations ............ 460,869 (500,309) 15,732,986 139,826,766 (18,347,798) 76,456,427
----------- ----------- ------------ ------------ ------------ ------------
From Unit Transactions:
Contributions......................... 1,496,711 3,439,002 28,341,149 48,772,338 11,506,365 16,775,667
Withdrawls............................ (1,158,929) (2,836,834) (28,598,184) (38,675,885) (11,117,682) (15,785,700)
Net Transfers (Note 6)................ (1,521,114) (3,133,893) 7,752,342 (5,410,060) 22,915,698 6,239,113
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease) from unit
transactions ......................... (1,183,332) (2,531,725) 7,495,307 4,686,393 23,304,381 7,229,080
----------- ----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS.... (722,463) (3,032,034) 23,228,293 144,513,159 4,956,583 83,685,507
NET ASSETS:
Beginning of Period/Year................. 19,845,842 22,877,876 557,968,002 413,454,843 219,166,460 135,480,953
----------- ----------- ------------ ------------ ------------ ------------
End of Period/Year....................... $19,123,379 $19,845,842 $581,196,295 $557,968,002 $224,123,043 $219,166,460
=========== =========== ============ ============ ============ ============
</TABLE>
10
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT MO.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 Year Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income......................................... $ 2,213,717 $ (421,225) $ (346,747) $ 4,488,928
Net realized gain (loss) on investments....................... 6,132,984 3,487,749 222,788 487,674
Net unrealized appreciation (depreciation)
of investments..... .......................................... 4,602,981 19,279,250 1,298,781 57,735
------------ ----------- ----------- -----------
Net Increase (Decrease) in net assets resulting
from operations.. ............................................ 12,949,682 22,345,774 1,174,822 5,034,337
------------ ----------- ----------- -----------
From Unit Transactions:
Contributions................................................. 5,111,469 4,529,867 5,433,463 10,122,717
Withdrawals................................................... (4,439,216) (4,671,049) (2,583,388) (4,719,017)
Net transfers (Note 6)........................................ 46,188,212 1,541,880 (362,540) 269,526
------------ ----------- ----------- -----------
Net Increase (Decrease) from unit transactions................... 46,860,465 1,400,698 2,487,535 5,673,226
------------ ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............................ 59,810,147 23,746,472 3,662,357 10,707,563
NET ASSETS:
Beginning of Period/Year......................................... 59,040,715 35,294,243 54,057,702 43,350,139
------------ ----------- ----------- -----------
End of Period/Year............................................... $118,850,862 $59,040,715 $57,720,059 $54,057,702
============ =========== =========== ===========
</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, 2000 December 31, June 30, 2000 December31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
FROM OPERATIONS:
Net investment income................... $ 9,346,903 $ 4,140,020 $ 33,109,297 $ 4,913,774 $ 4,566,864 $ 2,203,501
Net realized gain (loss) on investments. 1,718,979 1,910,304 5,164,384 14,562,051 60,590 141,270
Net unrealized appreciation
(depreciation) of investments .......... (15,582,478) (455,188) (43,498,274) 27,752,872 (5,252,716) 1,530,660
------------ ------------ ------------ ------------ ----------- -----------
Net Increase (Decrease) in net asset
resulting~from operations ............. (4,516,596) 5,595,136 (5,224,593) 47,228,697 (625,262) 3,875,431
------------ ------------ ------------ ------------ ----------- -----------
From Unit Transactions:
Contributions........................... 10,414,246 23,738,000 20,717,499 38,205,139 5,152,653 10,251,230
Withdrawals............................. (7,762,027) (14,284,534) (15,217,096) (22,784,938) (2,742,206) (4,220,822)
Net Transfers (Note 6).................. (18,913,320) (2,481,069) 5,144,654 31,873,961 (18,050) 446,968
------------ ------------ ------------ ------------ ----------- -----------
Net Increase (Decrease) from unit
transactions (16,261,101) 6,972,397 10,645,057 47,294,162 2,392,397 6,477,376
------------ ------------ ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS..... (20,777,697) 12,567,533 5,420,464 94,522,859 1,767,135 10,352,807
NET ASSETS:
Beginning of Period/Year................... 135,720,699 123,153,166 270,857,615 176,334,756 46,119,613 35,766,806
------------ ------------ ------------ ------------ ----------- -----------
End of Period/Year........................ $114,943,002 $135,720,699 $276,278,079 $270,857,615 $47,886,748 $46,119,613
============ ============ ============ ============ =========== ===========
</TABLE>
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").
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 became available as an investment alternative.
The Calvert Social Balanced Fund invests in a corresponding portfolio of Calvert
Variable Series, Inc. ("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 to Separate Account No. 2. The Fidelity
Equity-Income Portfolio invests in a corresponding portfolio of Fidelity
Variable Insurance Products Fund ("Fidelity VIP") and the Contrafund Portfolio
and Asset Manager Portfolio invest in corresponding portfolios of Fidelity
Variable Insurance Products Fund II ("Fidelity VIP II") (collectively,
"Fidelity").
On May 3, 1999 the Mid-Cap Equity Index Fund of the Investment Company
became the 17th investment alternative 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, 2000 are as
follows:
<TABLE>
<CAPTION>
Number of Net Asset
Shares Value
--------- --------
<S> <C> <C>
Investment Company Funds:
Money Market Fund..................................................... 42,384,547 $1.22
All America Fund...................................................... 145,562,645 3.54
Equity Index Fund..................................................... 132,268,726 2.87
Mid-Cap Equity Index Fund............................................. 12,552,861 1.20
Bond Fund............................................................. 31,758,113 1.34
Short-Term Bond Fund.................................................. 4,644,478 1.03
Mid-Term Bond Fund.................................................... 8,358,630 0.88
Composite Fund........................................................ 164,138,589 1.91
Aggressive Equity Fund 104,720,240 2.24
</TABLE>
12
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. INVESTMENTS (Continued)
<TABLE>
<CAPTION>
Number of Net Asset
Shares Value
--------- --------
<S> <C> <C>
Scudder Portfolios:
Bond Portfolio........................................................ 3,031,260 $ 6.34
Capital Growth Portfolio--Class "A".................................... 21,945,305 26.47
International Portfolio--Class "A"..................................... 13,818,055 16.23
American Century VP Capital Appreciation Fund............................ 7,082,414 16.99
Calvert Social Balanced Portfolio........................................ 25,894,907 2.23
Fidelity Portfolios:
Equity-Income--"Initial" Class......................................... 5,014,518 22.91
Contrafund--"Initial" Class............................................ 11,006,521 25.09
Asset Manager--"Initial" Class......................................... 2,900,269 16.55
</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 such expenses.
Mortality an 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. Effective May 1, 2000 the charge was reduced to an annual
rate of .15%.
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 2000. It is the Investment Company's practice to declare and
pay dividends at the end of the year.
On April 26, 2000, a dividend was paid by the Scudder Bond Portfolio. The
amount of the dividend was $991,893.
On April 26, 2000, a dividend was paid by the Scudder Capital Growth
Portfolio. The amount of the dividend was $67,116,890.
On April 26, 2000, a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $25,284,109.
On March 10, 2000, a dividend was paid by the American Century VP Capital
Appreciation Fund. The amount of the dividend was $2,647,753.
On February 4, 2000, a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $10,039,056.
On February 4, 2000, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $34,554,059.
On February 4, 2000, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $4,844,520.
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, 2000 and each of the five years ended December 31,
1999, or, if not in existence a full year, the initial period ended December 31:
<TABLE>
<CAPTION>
Investment Company Money Market Fund
----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year................... $ 2.11 $ 2.03 $ 1.95 $ 1.87 $ 1.80 $ 1.72
====== ====== ====== ====== ====== ======
Unit value, end of period/year......................... $ 2.16 $ 2.11 $ 2.03 $ 1.95 $ 1.87 $ 1.80
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year..... 23,894 20,766 19,121 16,831 17,511 17,502
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company All America Fund
----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year................... $10.05 $ 8.09 $ 6.76 $ 5.39 $ 4.52 $ 3.35
====== ====== ====== ====== ====== ======
Unit value, end of period/year......................... $10.50 $10.05 $ 8.09 $ 6.76 $ 5.39 $ 4.52
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year..... 48,700 48,014 49,275 51,312 49,798 43,620
</TABLE>
<TABLE>
<CAPTION>
Investment Company Equity Index Fund
----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year.................. $ 3.41 $ 2.86 $ 2.26 $ 1.72 $ 1.42 $ 1.05
======= ======= ====== ====== ====== ======
Unit value, end of period/year........................ $ 3.38 $ 3.41 $ 2.86 $ 2.26 $ 1.72 $ 1.42
======= ======= ====== ====== ====== ======
Thousands of units outstanding, end of period/year.... 112,321 112,735 94,019 68,462 35,660 17,109
======= ======= ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
Mid-Cap Equity Index Fund
----------------------------------------------
2000 1999*
---- ----
<S> <C> <C>
Unit value, beginning of period/year.................. $ 1.11 $ 1.00
====== ======
Unit value, end of period/year........................ $ 1.19 $ 1.11
====== ======
Thousands of units outstanding, end of period/year.... 12,62 3,431
====== ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company Bond Fund
----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year.................. $ 3.07 $ 3.17 $ 3.00 $ 2.75 $ 2.69 $ 2.28
====== ====== ====== ====== ====== ======
Unit value, end of period/year........................ $ 3.17 $ 3.07 $ 3.17 $ 3.00 $ 2.75 $ 2.69
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year.... 13,501 14,287 17,746 12,671 12,548 12,083
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company Short-Term Bond Fund
----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year.................. $1.28 $1.24 $ 1.19 $ 1.14 $ 1.10 $ 1.03
===== ===== ===== ===== ===== =====
Unit value, end of period/year........................ $1.32 $1.28 $ 1.24 $ 1.19 $ 1.14 $ 1.10
===== ===== ===== ===== ===== =====
Thousands of units outstanding, end of period/year.... 3,629 3,604 3,164 2,355 2,129 1,447
===== ===== ===== ===== ===== =====
</TABLE>
----------
* Commenced operations May 3, 1999.
14
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Investment Company Mid-Term Bond Fund
---------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ............... $ 1.32 $ 1.32 $ 1.26 $ 1.19 $ 1.16 $ 1.01
===== ===== ===== ===== ===== =====
Unit value, end of period/year ..................... $ 1.34 $ 1.32 $ 1.32 $ 1.26 $ 1.19 $ 1.16
===== ===== ===== ===== ===== =====
Thousands of units outstanding, end of period/year . 5,401 6,037 7,325 4,478 3,828 2,848
===== ===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Investment Company Composite Fund
-----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $ 5.61 $ 4.9 $ 4.36 $ 3.75 $ 3.39 $ 2.82
====== ====== ====== ====== ====== ======
Unit value, end of period/year................. $ 5.58 $ 5.61 $ 4.93 $ 4.36 $ 3.75 $ 3.39
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year 56,130 56,404 59,833 61,359 66,715 70,558
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company Aggressive Equity Fund
-----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $ 2.85 $ 2.02 $ 2.15 $ 1.80 $ 1.43 $ 1.05
====== ====== ====== ====== ====== ======
Unit value, end of period/year................. $ 2.94 $ 2.85 $ 2.02 $ 2.15 $ 1.80 $ 1.43
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year 77,820 62,123 63,176 71,468 49,800 20,858
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Scudder Bond Fund
-----------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $12.73 $13.02 $12.37 $11.48 $11.30 $ 9.69
===== ===== ===== ===== ===== =====
Unit value, end of period/year................. $13.07 $12.73 $13.02 $12.37 $11.48 $11.30
===== ===== ===== ===== ===== =====
Thousands of units outstanding, end of period/year 1,463 1,558 1,757 1,484 1,362 1,269
===== ===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Scudder Capital Growth Fund
------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $ 48.17 $36.07 $29.64 $22.11 $18.64 $14.67
======= ====== ====== ====== ===== =====
Unit value, end of period/year................. $ 49.52 $48.17 $36.07 $29.64 $22.11 $18.64
======= ====== ====== ====== ===== =====
Thousands of units outstanding, end of period/year $11,736 11,582 11,462 11,094 9,266 8,556
======= ====== ====== ====== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Scudder International Fund
------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $25.8 $16.93 $14.46 $13.43 $11.85 $10.80
===== ===== ===== ===== ===== =====
Unit value, end of period/year................. $22.89 $25.83 $16.93 $14.46 $13.43 $11.85
===== ===== ===== ===== ===== =====
Thousands of units outstanding, end of period/year 9,792 8,486 8,004 8,205 7,688 7,269
===== ===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
American Century
------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $17.40 $10.69 $11.04 $11.53 $12.18 $ 9.39
===== ===== ===== ===== ===== =====
Unit value, end of period/year................. $20.33 $17.40 $10.69 $11.04 $11.53 $12.18
===== ===== ===== ===== ===== =====
Thousands of units outstanding, end of period/year 5,846 3,394 3,303 4,510 7,264 8,061
===== ===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Calvert Social Balanced Fund
------------------------------------------------
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year........... $ 3.37 $ 3.04 $ 2.65 $ 2.23 $ 2.01 $ 1.57
====== ====== ====== ====== ====== =====
Unit value, end of period/year................. $ 3.44 $ 3.37 $ 3.04 $ 2.65 $ 2.23 $ 2.01
====== ====== ====== ====== ====== =====
Thousands of units outstanding, end of period/year 16,768 16,041 14,257 12,479 10,713 7,849
====== ====== ====== ====== ====== =====
</TABLE>
15
<PAGE>
MUTUAL OF AMERICA SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Fidelity
-------------------------------------------------------------------------------------------------
VIP Equity-Income Fund VIP II Contra Fund
-------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995* 2000 1999 1998 1997 1996 1995*
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year $32.21 $30.65 $27.77 $21.93 $19.43 $16.30 $32.13 $26.16 $20.36 $16.59 $13.85 $11.43
===== ===== ===== ===== ===== === ===== ===== ===== ===== ===== =====
Unit value, end of
period/year $31.91 $32.21 $30.65 $27.77 $21.93 $19.43 $31.55 $32.13 $26.16 $20.36 $16.59 $13.85
===== ===== ===== ===== ===== === ===== ===== ===== ===== ===== =====
Thousands of units
outstanding, end
of period/year 3,685 4,213 4,018 3,491 2,342 728 8,758 8,430 6,742 5,656 3,880 1,792
===== ===== ===== ===== ===== === ===== ===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Fidelity
------------------------------------------------
VIP II Asset Manager Fund
------------------------------------------------
2000 1999 1998 1997 1996 1995*
---- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year $26.40 $24.04 $21.14 $17.72 $15.66 $14.04
====== ====== ====== ====== ====== ======
Unit value, end of period/year $26.09 $26.40 $24.04 $21.14 $17.72 $15.66
====== ====== ====== ====== ====== ======
Thousands of units outstanding, end of period/year 1,836 1,747 1,488 1,150 613 184
====== ====== ====== ====== ====== ======
</TABLE>
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* Commenced operations May 1, 1995.
6. ASSUMPTION OF BUSINESS BY AN AFFILIATED ENTITY
In September 1999, Mutual of America Life Insurance Company ("the
Company"), submitted to the New York Insurance Department a Plan of
Reorganization whereby the Company would prepare for the sale of its wholly
owned subsidiary, The American Life Insurance Company of New York ("American
Life"). In preparation for such sale, the Company would assume (via an
assumption reinsurance agreement) virtually all of the American Life's in force
business.
On April 3, 2000, upon obtaining approval from a substantial number of
American Life's policyowners, the Company assumed these contracts and all of the
related assets and obligations, and replaced American Life as the issuer. Total
transfers related to these contracts amounted to $66.9 million and are included
in Net Transfers on the Statements of Changes in Net Assets for each fund.
