<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 28, 1995
REGISTRATION NO. 33-6486
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
PRE-EFFECTIVE AMENDMENT NO. [_]
POST-EFFECTIVE AMENDMENT NO. 11 [X]
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
AMENDMENT NO. 14
---------------
MUTUAL OF AMERICA INVESTMENT CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
666 FIFTH AVENUE
NEW YORK, NEW YORK 10103
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE INCLUDING ZIP CODE)
DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE (212) 399-1600
DOLORES J. MORRISSEY
MUTUAL OF AMERICA INVESTMENT CORPORATION
666 FIFTH AVENUE
NEW YORK, NEW YORK 10103
(NAME AND ADDRESS OF AGENT FOR SERVICE)
COPIES TO:
STANLEY M. LENKOWICZ, ESQ. ROBERT S. SCHNEIDER, ESQ.
SENIOR VICE PRESIDENT & GRAHAM & JAMES
DEPUTY GENERAL COUNSEL 885 THIRD AVENUE
MUTUAL OF AMERICA LIFE INSURANCE NEW YORK, NEW YORK 10022
COMPANY
666 FIFTH AVENUE
NEW YORK, NEW YORK 10103
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: As soon as practicable after
the effective date of the Registration Statement.
---------------
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE
SPACE)
immediately upon filing pursuant to paragraph (b)
---
X on May 1, 1995 pursuant to paragraph (b)
---
60 days after filing pursuant to paragraph (a)
---
--- on (date) pursuant to paragraph (a) of Rule 485
THE REGISTRANT HAS REGISTERED AN INDEFINITE NUMBER OF SHARES UNDER THE
SECURITIES ACT OF 1933 PURSUANT TO RULE 24F-2 UNDER THE INVESTMENT COMPANY ACT
OF 1940. THE NOTICE REQUIRED BY SUCH RULE FOR THE REGISTRANT'S MOST RECENT
FISCAL YEAR WAS FILED ON FEBRUARY 28, 1995.
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- -------------------------------------------------------------------------------
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
Principal Office Located at:
666 Fifth Avenue, New York, New York 10103
Mutual of America Investment Corporation (the "Investment Company") is a
mutual fund, currently issuing eight series of common stock representing,
respectively, the Money Market Fund, the All America Fund, the Equity Index
Fund, the Bond Fund, the Short-Term Bond Fund, the Mid-Term Bond Fund, the
Composite Fund, and the Aggressive Equity Fund.
This Prospectus describes in detail the investment objectives and policies
of the eight Funds and concisely sets forth the information about the
Investment Company that you ought to know before investing in the Investment
Company. Investments in the Money Market Fund (and in the other Funds of the
Investment Company) are neither insured nor guaranteed by the U.S. Government.
A Statement of Additional Information dated May 1, 1995 has been filed with
the Securities and Exchange Commission. This Statement of Additional
Information is incorporated by reference into this Prospectus and is available
at no charge by writing Mutual of America Investment Corporation at the above
address.
- -------------------------------------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
- -------------------------------------------------------------------------------
This Prospectus should be read carefully and retained for further reference.
---------------
Prospectus dated May 1, 1995
---------------
<PAGE>
FINANCIAL HIGHLIGHTS
Income and capital changes per share for a Fund share outstanding
throughout each of the ten years during the period ended December 31, 1994 and
other supplementary data with respect to the Funds as if the Funds of the
Investment Company succeeded Mutual of America Life's Separate Account No. 2,
the Fund's predecessor, on or before January 1, 1985 are as follows. The
information with respect to the periods ended December 31, 1994, December 31,
1993 and December 31, 1992 has been audited by the Fund's independent
auditors, Arthur Andersen LLP. The financial statements of the Investment
Company, along with the report of Arthur Andersen LLP thereon, are set forth
in the Statement of Additional Information. Each of the seven prior years in
the period ended December 31, 1991 were audited by the Fund's previous
auditors, and per share information for these years is presented from the
perspective of the Separate Accounts, which are the holders of the shares of
the Investment Company. Effective 1992, the per share information is presented
from the perspective of the Funds. Information presented for periods less than
a full year has been annualized except where otherwise noted. INFORMATION FOR
THE ALL AMERICA FUND REFLECTS THE RESULTS OF THAT FUND PRIOR TO A CHANGE IN
ITS INVESTMENT OBJECTIVE AND POLICIES AND THE ADDITION OF SUBADVISERS. SUCH
CHANGES WERE EFFECTIVE ON MAY 1, 1994, AT WHICH DATE THE FUND WAS RENAMED THE
ALL AMERICA FUND. Further information about the performance of the Funds,
including management's discussion of performance, is contained in the
Investment Company's annual report to shareholders, which may be obtained
without charge by request to the Investment Company.
<TABLE>
<CAPTION>
MONEY MARKET FUND
--------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $1.17 $1.17 $1.18 $1.23 $1.23 $1.22 $1.25 $1.18 $1.12 $1.06
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Income From Investment
Operations
Net Investment Income.. .03 .04 .04 .12 .10 .12 .08 .07 .06 .08
Net Gains or Losses on
Securities (both
realized and
unrealized)........... .02 -- -- (.05) -- -- -- -- -- --
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total From Investment
Operations.......... .05 .04 .04 .07 .10 .12 .08 .07 .06 .08
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less Distributions
Dividends (from net
investment income).... (.03) (.04) (.05) (.12) (.10) (.11) (.11) -- -- --
Total Distributions.. (.03) (.04) (.05) (.12) (.10) (.11) (.11) -- -- --
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Adjustment(b).......... -- -- -- -- -- -- -- -- -- (.02)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF
PERIOD................. $1.19 $1.17 $1.17 $1.18 $1.23 $1.23 $1.22 $1.25 $1.18 $1.12
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total Return(d)......... 4.1% 2.9% 3.3% 4.4% 6.8% 2.6% 5.9% 5.7% 4.8% 6.2%
Net Assets, End of
Period ($ millions).... $ 81 $ 38 $ 39 $ 43 $ 89 $ 81 $ 6 $ 3 $ 2 $ 1
Ratio of Expenses to
Average Net Assets..... 0.25% 0.26% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40%
Ratio of Net Income to
Average Net Assets..... 4.15% 2.90% 3.33% 5.73% 7.79% 8.90% 6.85% 5.99% 5.90% 7.15%
Portfolio Turnover
Rate(a)................ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
</TABLE>
2
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALL AMERICA FUND
--------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $1.82 $ 1.67 $ 1.49 $ 1.05
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Income From Investment
Operations
Net Investment Income.. .04 .04 .04 .18 .08 .28 .06 .02 .01 .03
Net Gains or Losses on
Securities
(both realized and
unrealized)........... (.01) .18 .03 .23 (.11) .14 .10 .13 .17 .42
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Total From Investment
Operations.......... .03 .22 .07 .41 (.03) .42 .16 .15 .18 .45
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Less Distributions
Dividends (from net
investment income).... (.04) (.04) (.04) (.05) (.06) (.05) (.09) -- -- --
Distributions (from
capital gains)........ (.18) (.17) (.17) (.13) (.02) (.25) (.20) -- -- --
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Total Distributions.. (.22) (.21) (.21) (.18) (.08) (.30) (.29) -- -- --
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Adjustment(b)........... -- -- -- -- -- -- -- -- -- (.01)
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................. $ 1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.7 $ 1.81 $1.69 $ 1.82 $ 1.67 $ 1.49
====== ====== ====== ====== ====== ====== ===== ====== ====== ======
Total Return(d)......... 3.7%* 12.0% 3.2% 22.6% (3.8)% 24.1% 8.7% 8.3% 11.3% 40.7%
Net Assets, End of Pe-
riod ($ millions)...... $ 375 $ 424 $ 398 $ 434 $ 377 $ 437 $ 40 $ 43 $ 29 $ 6
Ratio of Expenses to
Average Net Assets..... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.51% 0.49%
Ratio of Net Income to
Average Net Assets..... 2.11% 1.92% 2.02% 2.49% 3.33% 2.54% 3.07% 1.97% 2.03% 2.92%
Portfolio Turnover
Rate(a)................ 129.80% 93.86% 129.40% 158.35% 108.75% 117.60% 56.94% 150.74% 141.40% 174.90%
- -------
*Total Return for 1994 reflects performance from May 2, 1994 and is not
annualized. The Total Return for calendar year 1994 was 5.6%.
<CAPTION>
BOND FUND
--------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $ 1.27 $1.40 $ 1.42 $ 1.28 $ 1.05
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Income From Investment
Operations
Net Investment Income.. .09 .09 .09 .13 .09 -- .09 .07 .06 .09
Net Gains or Losses on
Securities
(both realized and
unrealized)........... (.14) .09 .03 .08 (.02) .16 (.01) (.09) .08 .15
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Total From Investment
Operations.......... (.05) .18 .12 .21 .07 .16 .08 (.02) .14 .24
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Less Distributions
Dividends (from net
investment income).... (.09) (0.09) (0.09) (0.11) (0.11) (0.06) (0.21) -- -- --
Distributions (from
capital gains)........ -- (0.09) (0.03) (0.02) -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Total Distributions.. (.09) (0.18) (0.12) (0.13) (0.11) (0.06) (0.21) -- -- --
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
Adjustment(b)........... -- -- -- -- -- -- -- -- -- (0.01)
------ ------ ------ ------ ------ ------ ----- ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................. $ 1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $1.27 $ 1.40 $ 1.42 $ 1.28
====== ====== ====== ====== ====== ====== ===== ====== ====== ======
Total Return(d)......... (3.2%) 13.1% 8.6% 14.0% 3.5% 11.1% 6.2% (1.9)% 10.5% 20.7%
Net Assets, End of Pe-
riod ($ millions)...... $ 249 $ 263 $ 233 $ 187 $ 163 $ 107 $ 5 $ 4 $ 3 $ 1
Ratio of Expenses to
Average Net Assets..... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.51% 0.48%
Ratio of Net Income to
Average Net Assets..... 6.32% 6.30% 6.93% 7.59% 8.57% 8.55% 8.25% 7.97% 8.26% 9.26%
Portfolio Turnover
Rate(a)................ 51.14% 103.16% 112.40% 95.00% 129.02% 47.70% 75.61% 47.41% 63.36% 99.50%
</TABLE>
3
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX SHORT-TERM MID-TERM AGGRESSIVE
FUND BOND FUND BOND FUND EQUITY FUND
------------------------- ------------------------- ------------------------- ------------
YEAR
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1993* 1994 1993* 1994 1993* 1994**
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $1.04 $ 1.00 $1.02 $ 1.00 $ .99 $ 1.00 $ 1.00
----- ------ ----- ------ ----- ------ ------
Income From Investment
Operations
Net Investment Income.. .03 .02 .04 .02 .03 .04 .01
Net Gains or Losses on
Securities (both
realized and
unrealized)........... (.01) .04 (.02) .02 (.07) .04 .05
----- ------ ----- ------ ----- ------ ------
Total From Investment
Operations.......... .02 .06 .02 .04 (.04) .08 .06
----- ------ ----- ------ ----- ------ ------
Less Distributions
Dividends (from net
investment income).... (.03) (.02) (.04) (.02) (.04) (.04) (.01)
Distributions (from
capital gains)........ (.01) -- -- -- -- (.05) --
----- ------ ----- ------ ----- ------ ------
Total Distributions.. (.04) (.02) (.04) (.02) (.04) (.09) (.01)
----- ------ ----- ------ ----- ------ ------
NET ASSET VALUE, END OF
PERIOD................. $1.02 $ 1.04 $1.00 $ 1.02 $0.91 $ 0.99 $ 1.05
===== ====== ===== ====== ===== ====== ======
Total Return(d)......... 1.5% (c)6.2% 1.4% (c)4.6% (3.7)% (c)7.3% (c)6.0%
Net Assets, End of
Period ($ millions).... $ 26 $ 27 $ 2 $ 3 $ 24 $ 19 $ 27
Ratio of Expenses to
Average Net Assets..... 0.13% 0.11% 0.48% 0.45% 0.50% 0.45% 0.56%
Ratio of Net Income to
Average Net Assets..... 2.67% 2.43% 3.51% 3.09% 4.71% 4.13% 0.7%
Portfolio Turnover
Rate(a)................ 6.59% 1.44% 0.00% 122.37% 7.52% 162.03% 60.86%
</TABLE>
- -------
* The Fund commenced operations on February 5, 1993.
** The Fund commenced operations on May 2, 1994.
4
<PAGE>
<TABLE>
<CAPTION>
COMPOSITE FUND
---------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $1.46 $1.60 $ 1.51 $1.35 $ 1.05
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
Income From Investment
Operations
Net Investment Income.. .05 .05 .06 .19 .14 .11 .08 .05 .03 .07
Net Gains or Losses on
Securities (both re-
alized and
unrealized)........... (.10) .22 .03 .09 (.09) .17 .05 .04 .13 .24
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
Total From Investment
Operations.......... (.05) 0.27 0.09 0.28 0.05 0.28 0.13 0.09 0.16 0.31
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
Less Distributions
Dividends (from net
investment income).... (.07) (.05) (.06) (.07) (.10) (.08) (.17) -- -- --
Distributions (from
capital gains)........ (.02) (.10) (.05) (.13) (.05) (.03) (.10) -- -- --
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
Total Distributions.. (.09) (0.15) (0.11) (0.20) (0.15) (0.11) (0.27) -- -- --
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
Adjustment(b)........... -- -- -- -- -- -- -- -- -- (0.01)
------ ------ ------ ------ ------ ----- ----- ------ ----- ------
NET ASSET VALUE, END OF
PERIOD................. $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $1.63 $1.46 $ 1.60 $1.51 $ 1.35
====== ====== ====== ====== ====== ===== ===== ====== ===== ======
Total Return(d)......... 3.0% 16.9% 5.9% 16.4% 1.5% 17.2% 7.9% 5.2% 11.4% 27.4%
Net Assets, End of Pe-
riod ($ millions)...... $ 233 $ 228 $ 138 $ 111 $ 79 $ 67 $ 51 $ 45 $ 30 $ 6
Ratio of Expenses to
Average Net Assets..... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.51% 0.49%
Ratio of Net Income to
Average Net Assets..... 3.88% 3.48% 4.01% 4.75% 6.20% 5.48% 5.94% 5.10% 5.35% 6.60%
Portfolio Turnover
Rate(a)................ 113.86% 100.76% 107.69% 134.91% 105.06% 87.32% 50.88% 124.04% 98.74% 133.70%
</TABLE>
- --------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Per share amounts were calculated based on the actual per unit data of the
predecessor Separate Account No. 2. Each actual per unit amount, adjusted
to exclude administrative fees, distribution expense fees, mortality risk
fees and a monthly fund charge, was used to calculate the respective per
share amounts shown based on the actual Separate Account No. 2 net asset
values at December 31, 1985 as described in Note 1 to the Financial
Statements.
(c) Not annualized.
(d) Total Return information does not reflect separate account charges under
contracts that allocate premiums or contributions to the Funds. Inclusion
of separate account charges would reduce Total Return figures.
5
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Financial Highlights.................................................... 2
General Description of the Investment Company........................... 6
Money Market Fund Yield Information..................................... 6
Investment Objectives and Policies of the Funds......................... 7
Investment Advisory Arrangements........................................ 14
The Funds' Expenses..................................................... 17
Portfolio Transactions.................................................. 17
Purchase of Shares...................................................... 17
Redemption of Shares.................................................... 18
Dividends, Distributions and Taxes...................................... 18
Additional Information.................................................. 18
</TABLE>
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, IN CONNECTION WITH THE OFFER CONTAINED IN THIS PROSPECTUS, AND, IF
GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATION MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY THE INVESTMENT COMPANY OR MUTUAL OF AMERICA
CAPITAL MANAGEMENT CORPORATION. THIS PROSPECTUS DOES NOT CONSTITUTE AN
OFFERING IN ANY STATE IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE.
GENERAL DESCRIPTION OF THE INVESTMENT COMPANY
The Investment Company was formed as a Maryland corporation on February 21,
1986. It is a diversified, open-end management company as such terms are
defined in the Investment Company Act of 1940 (the "1940 Act"). Its investment
adviser is Mutual of America Capital Management Corporation (the "Adviser").
As a "series" type of mutual fund, the Investment Company issues separate
classes (or series) of stock, currently consisting of the Money Market Fund,
the All America Fund, the Equity Index Fund, the Bond Fund, the Short-Term
Bond Fund, the Mid-Term Bond Fund, the Composite Fund, and the Aggressive
Equity Fund. The Investment Company's assets and liabilities are split into
these Funds ("Funds"). Additional Funds may be established.
Shares of the Funds are presently sold only to separate accounts of Mutual
of America Life Insurance Company ("Mutual of America Life") and The American
Life Insurance Company of New York ("American Life"), an indirect, wholly-
owned subsidiary of Mutual of America Life, as a funding medium for variable
annuity contracts and variable life insurance contracts issued by the
companies. Mutual of America Life and American Life, together, hereinafter are
referred to as the "Insurance Companies" and each, an "Insurance Company". The
separate accounts of the Insurance Companies, together, hereinafter are
referred to as the "Separate Accounts" and each, a "Separate Account". The
variable annuity and variable life insurance contracts issued by the Insurance
Companies, together, hereinafter are referred to as the "Contracts" and each,
a "Contract". Each of the Insurance Companies has its principal offices at 666
Fifth Avenue, New York 10103.
The terms "shareholder" and "shareholders" in this Prospectus refer to the
Insurance Companies. Mutual of America Life and American Life, through the
Separate Accounts, own all of the Investment Company's shares.
MONEY MARKET FUND YIELD INFORMATION
Set forth below is the current yield information for the Money Market Fund
for the seven-day period ended December 31, 1994, computed to include and
exclude realized and unrealized gains and losses. Yields may fluctuate from
the amounts shown.
<TABLE>
<S> <C>
Annualized Yield:
Including gains and losses.................................... 5.67%
Excluding gains and losses.................................... 5.67%
Average maturity of portfolio at end of period.................. 21 days
</TABLE>
6
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS
INVESTMENT OBJECTIVES
Each Fund of the Investment Company has a different investment objective
which it pursues through separate investment policies as described below. The
differences in objectives and policies among the Funds can be expected to
affect the return of each Fund and the degree of market and financial risk to
which each Fund is subject. As used in the following discussion, "market risk"
refers to the volatility of the reaction of the price of the security to
changes in conditions in the securities markets in general and, with
particular reference to debt securities, changes in the overall level of
interest rates; "financial risk" refers to the ability of an issuer of a debt
security to pay principal and interest on that security and to the earning
stability and overall financial soundness of an issuer of an equity security;
and "current income volatility" refers to the degree and rapidity with which
changes in the overall level of interest rates become reflected in the level
of current income of a Fund. The investment objectives of each Fund may not be
changed without the approval of the holders of a majority of the outstanding
shares of each Fund affected. There can be no assurance that the objectives of
any of the Funds will be met. Investments in the Money Market Fund (and in the
other Funds of the Investment Company) are neither insured nor guaranteed by
the U.S. Government. The investment objectives and policies of each Fund are
discussed below.
THE MONEY MARKET FUND
The investment objective of the Money Market Fund is the realization of high
current income to the extent consistent with the maintenance of liquidity,
investment quality and stability of capital. The Fund will invest only in
money market instruments and other short-term debt securities.
Specifically, the Money Market Fund will invest only in the following kinds
of money market instruments, payable in United States dollars: (1) securities
issued or guaranteed by the United States Government or one of its agencies or
instrumentalities ("government securities"); (2) negotiable certificates of
deposit, bank time deposits, bankers' acceptances and other short-term debt
obligations of domestic banks and foreign branches of domestic banks and U.S.
branches of foreign banks (see "Investment Objectives and Policies of the
Funds--Other Portfolio Strategies--Foreign Securities"), which at the time of
their most recent annual financial statements show assets in excess of $1
billion; (3) certificates of deposit, time deposits and other short-term debt
obligations of domestic savings and loan associations, which at the time of
their most recent annual financial statements show assets in excess of $1
billion; (4) repurchase agreements covering government securities,
certificates of deposit, commercial paper or bankers' acceptances; (5)
commercial paper; (6) variable amount floating rate notes; and (7) debt
securities issued by a corporation. These instruments are more fully described
in the Statement of Additional Information.
For purposes of the Money Market Fund's investment policy only, "money
market instruments and other short-term debt securities" shall mean securities
having a remaining maturity of up to 13 months (25 months in the case of
government securities). The dollar-weighted average maturity of the securities
held by the Money Market Fund will not exceed 90 days.
The Money Market Fund may also enter into transactions in options, futures
contracts and options on futures, contracts on United States Treasury
securities and Eurodollar deposits. Such transactions and instruments are more
fully described below and in the Statement of Additional Information.
All of the securities held by the Money Market Fund will have received (or
be of comparable quality to securities which have received), at the time of
the purchase, a rating in one of the two highest categories by any two
nationally recognized statistical rating agencies and at least 95% of the
securities held by the Money Market Fund will have received (or be of
comparable quality to securities which have received), at the time of
purchase, the highest rating by any two such rating agencies. (The Board of
Directors of the Investment Company must approve or ratify the purchase of any
security (other than any government security) which has received no rating or
which has been rated by only one rating agency.) Securities which are
subsequently downgraded below the two highest categories will be disposed of
as soon as practicable absent a finding by the Board of Directors that this
would not be in the best interests of the Fund.
The Money Market Fund will not invest more than 5% of its total assets in
securities of, or subject to puts from, any one issuer (other than government
securities and repurchase agreements fully collateralized by government
securities) provided that (x) the Fund may invest up to 10% of its total
assets in securities issued or guaranteed by a single issuer with respect to
which the Fund has an unconditional put and (y) with respect to 25% of its
total assets the Fund may, with respect to securities meeting the highest
investment criteria, exceed the 5% limit for up to three business days.
7
<PAGE>
The Money Market Fund should be subject to relatively little market or
financial risk but a relatively high level of current income volatility.
THE ALL AMERICA FUND
The investment objective for approximately 60% of the assets of the All
America Fund (the "Indexed Assets") is to provide investment results that to
the extent practical correspond to the price and yield performance of publicly
traded common stocks in the aggregate, as represented by the Standard & Poor's
Composite Index of 500 Stocks (the "S&P 500 Index"). The Indexed Assets will
be invested in the same manner as the Equity Index Fund. See "The Equity Index
Fund" below.
The investment objective for the remaining approximately 40% of the assets
(the "Active Assets") is to achieve a high level of total return, through both
appreciation of capital and, to a lesser extent, current income, by means of a
diversified portfolio of securities that may include common stocks, securities
convertible into common stocks, bonds and money market instruments. The Active
Assets will be invested by four subadvisers (each a "Subadviser", and together
the "Subadvisers"), under a subadvisory agreement (each a "Subadvisory
Agreement") between the Adviser and each of the Subadvisers. The Adviser will
allocate the Active Assets to maintain, to the extent practicable under
current market conditions, approximately equal amounts with the Subadvisers.
The Subadvisers are Palley-Needelman Asset Management, Inc. ("Palley-
Needelman"), James Dravo Oelschlager, doing business as Oak Associates ("Oak
Associates"), Fred Alger Management, Inc. ("Alger Management"), and Mitchell
Hutchins Institutional Investors Inc. ("Mitchell Hutchins"). See "Investment
Advisory Arrangements--The Subadvisers".
Palley-Needelman will invest its portion of Active Assets in stocks that
Palley-Needelman considers to be of high quality with lower than average price
volatility and low price/earning ratios. Companies generally will have below
market debt levels, earnings growth of 10% or more, current yield of 3% or
more and market capitalization of $500 million or more. No more than 10% of
the Palley-Needelman portion may be invested in any one industry and no more
than 20% may be invested in American Depositary Receipts ("ADRs"). Oak
Associates will invest in mid-sized capitalization stocks that have low
current income and the potential for significant growth. Oak Associates
monitors 400 stocks and will invest its portion of the Fund in approximately
25 common stocks without regard for market industry weighting. Alger
Management will invest in stocks with capitalization generally below $1
billion, which Alger Management considers to be fundamentally sound with the
potential for strong growth and for earnings in excess of market expectations.
Except during temporary defensive periods, at least 85% of the Alger
Management portion will be invested in equity securities. Mitchell Hutchins
will invest in stocks that it considers undervalued. Mitchell Hutchins'
approach is to identify companies with strong financials, substantial cash
flow, conservative accounting, low debt-to-equity ratios and average market
capitalization generally below $1 billion. Companies whose stocks are
purchased by Oak Associates or Mitchell Hutchins often have limited Wall
Street coverage and low institutional ownership.
Each of the Subadvisers will seek to achieve the investment objective of the
Active Assets by investing in such securities that, based on certain
fundamental and/or technical standards of selection, it determines offer
attractive opportunities for total return through capital appreciation and, to
a lesser degree, income. The Investment Company believes that the combination
of the Indexed Assets and the Active Assets will provide a reasonable
opportunity for the Fund to outperform the S&P 500 Index by providing a
diversified portfolio of Active Assets with diversified management and a broad
exposure to the market.
Assets in the All America Fund will be rebalanced periodically to retain the
approximate 60%/40% relationship between Indexed Assets and Active Assets. The
Adviser may manage cash allocated to the Active Assets prior to investment in
securities by the Subadvisers.
THE EQUITY INDEX FUND
The investment objective of the Equity Index Fund is to provide investment
results that to the extent practical correspond to the price and yield
performance of publicly traded common stocks in the aggregate, as represented
by the S&P 500 Index.
The Equity Index Fund will attempt to duplicate the investment results of
the S&P 500 Index, which is composed of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. Standard & Poor's Corporation
chooses the stocks to be included in the S&P 500 Index solely on a statistical
basis. The inclusion of a stock in the S&P 500 Index does not imply an opinion
by Standard & Poor's Corporation that the stock is an attractive investment.
An investment in the Fund involves risks similar to those of investing in
common stocks. The Fund will attempt to be fully invested at all times in the
stocks that comprise the S&P 500 Index and at least 80% of the Fund's net
assets will be so invested.
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The weightings of stocks in the S&P 500 Index are based on each stock's
relative total market capitalization; that is, its market price per share
times the number of shares outstanding. Stocks will be selected for the Fund's
portfolio in the order of their weightings in the S&P 500 Index beginning with
the heaviest weighted stocks. The percentage of the Fund's assets invested in
each of the selected stocks will be approximately the same as the percentage
the stock represents in the S&P 500 Index.
The Fund will be managed using a computer program to determine which stocks
are to be purchased or sold to replicate the S&P 500 Index to the extent
feasible. Initially the Fund contemplates executing all transactions through a
single broker. From time to time, administrative adjustments may be made in
the Fund's portfolio because of changes in the composition of the S&P 500
Index, but such changes should be infrequent.
The Fund believes that the indexing approach described above is an effective
method of substantially duplicating percentage changes in the S&P 500 Index.
It is a reasonable expectation that there will be a close correlation between
the Fund's performance and that of the S&P 500 Index in both rising and
falling markets. The Fund will attempt to achieve a correlation between the
performance of its portfolio and that of the S&P 500 Index of at least 0.95,
without taking into account expenses. A correlation of 1.00 would indicate
perfect correlation, which would be achieved when the Fund's net asset value,
including the value of its dividend and capital gains distributions, increases
or decreases in exact proportion to changes in the S&P 500 Index. The Fund
will invest in stock index futures contracts, options on stock indices,
options on stock index future contracts, puts and calls to the extent
necessary to attempt to achieve this correlation. The Fund's ability to
correlate its performance with the S&P 500 Index, however, may be affected by,
among other things, changes in securities markets, the manner in which the S&P
500 Index is calculated by Standard & Poor's Corporation and the timing of
purchases and redemptions. In the future, the Board of Directors, subject to
the approval of shareholders, may select another index if such a standard of
comparison is deemed to be more representative of the performance of common
stocks in general.
The Fund's ability to duplicate the performance of the S&P 500 Index also
depends to some extent on the size of the Fund's portfolio and the size of
cash flows into and out of the Fund. Investment changes to accommodate these
cash flows are made to maintain the similarity of the Fund's portfolio to the
S&P 500 Index to the maximum practicable extent. Mutual of America Life
invested $25 million in the Fund on February 5, 1993 and will endeavor to
maintain a minimum asset balance in the Fund (including its investments and
the investments of participants and contractholders) which is at least $25
million at any time, but does not guarantee to do so. As participants and
contractholders invest in the Fund through Separate Accounts, over time Mutual
of America Life reserves the right to reduce its investment in the Fund
consistent with the above Fund target minimum balance.
THE BOND FUND, THE SHORT-TERM BOND FUND AND THE MID-TERM BOND FUND
The three Bond Funds (the Bond Fund, the Short-Term Bond Fund and the Mid-
Term Bond Fund (sometimes collectively referred to as the "Bond Funds" or
singularly as "any" or "each" Bond Fund)) will have the same investment
objectives as described below, but will seek to achieve those objectives
through different policies representing the average maturity of the securities
held in their respective portfolios, as follows:
The Bond Fund will consist of debt securities with average maturities which
will vary according to market conditions and the stage of the interest rate
cycle.
The Short-Term Bond Fund will consist of debt securities which will produce
a portfolio with an average maturity of one to three years.
The Mid-Term Bond Fund will consist of debt securities which will produce a
portfolio with an average maturity of three to seven years.
When interest rates go up, the market value of outstanding debt securities
declines and vice versa. In recent years the volatility of the market for debt
securities has increased significantly and the market value of longer-term
obligations has been subject to wide fluctuations, particularly as contrasted
with short-term instruments. The Bond Funds may realize income to the extent
such realizations are considered advantageous in light of existing market
conditions. The annual rate of portfolio turnover of the Bond Funds is not
expected to average in excess of 200%. A high level of portfolio turnover will
result in an increase in transaction costs and may adversely affect the tax
status of the Investment Company. See "Dividends, Distributions and Taxes."
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The primary investment objective of the Bond Funds is to provide as high a
level of current income over time as is believed to be consistent with prudent
investment risk. A secondary objective is preservation of shareholders'
capital. The Bond Funds seek to realize these objectives through careful
selection and, when appropriate, active trading of bonds and other
investments. The assets of the Bond Funds will consist primarily of publicly
traded debt securities, such as bonds, notes, debentures and equipment trust
certificates. Such securities may carry certain equity features, such as
conversion of exchange rights, or warrants for the acquisition of stocks of
the same or different issuers, or participations based on revenues, sales or
profits.
It is contemplated that at least 80% of each Bond Fund's assets will consist
of (a) domestic debt securities that have at the time of purchase a rating of
at least Baa3 as determined by Moody's Investors Services, Inc. or BBB- as
determined by Standard & Poor's Corporation or equivalent ratings of a similar
nationally recognized rating service; (b) securities issued or guaranteed by
the United States Government or its agencies or instrumentalities; (c) cash or
cash equivalents; and (d) the types of money market instruments in which the
Money Market Fund may invest. These instruments should be subject to little
financial risk, to moderately high levels of market risk and to moderate
current income volatility. The remaining assets of the Bond Funds may be
invested in (1) other securities that are unrated or rated lower than Baa3 or
BBB-, which are sometimes referred to as high yield/high risk securities, (2)
Canadian and other foreign securities and (3) securities issued in foreign
markets by domestic issuers or their overseas subsidiaries if guaranteed by
the parent. Unrated securities or securities rated lower than Baa3 or BBB- may
be subject to greater market and financial risk than higher quality
securities, and it is not currently contemplated that more than 5% of any Bond
Fund's assets will consist of these securities. The instruments described in
this paragraph are more fully described in the Statement of Additional
Information.
The market value of fixed-income debt securities is affected by changes in
general market interest rates. If interest rates fall, the market value of
fixed-income securities tends to rise; however, if interest rates rise, the
value of fixed-income securities tends to fall. This market risk affects all
fixed income securities, but lower rated and unrated securities may be subject
to a greater market risk than higher rated (lower yield) securities.
Lower rated and unrated securities are also generally subject to greater
financial risk than higher rated securities. Since lower rated and unrated
securities are generally issued by corporations that are not as creditworthy
or financially secure as issuers of higher rated securities, there is a
greater risk that issuers of lower rated (higher yield) securities will not be
able to pay the principal and interest due on such securities, especially
during periods of adverse economic conditions. Risk factors related to
investments in lower rated and unrated securities are more fully described in
the Statement of Additional Information.
Each of the Bond Funds generally will not acquire securities of companies in
any one industry if, immediately after giving effect to any such acquisition,
more than 25% of the value of its total assets would be invested in such
industry. A Fund would, however, invest more than 25% (but not more than 75%)
of its assets in the electric, gas and/or telephone utility industries
whenever it is determined that the spread between the yields on such industry
securities and Treasury notes and/or bonds is historically high and that
obligations having comparable maturity, yield and quality of issuers in other
industries are not available; provided, however, that in no event will any
Bond Fund invest more than 75% of the value of its total assets in all those
industries. No one "aspect" of the electric, gas or telephone utility
industries will be emphasized.
Investment in companies in these industries involves the risk of unfavorable
action, from an investment viewpoint, by their regulatory authorities.
Concentration in any or all of such industries may increase the investment
risk as a result of adverse circumstances which could affect all companies in
a particular industry simultaneously. In addition, debt securities in
electric, gas and telephone industries tend to have longer maturities than
those of industrial issuers, and unlike industrial debt issues, do not
typically require partial repayment of the principal through a sinking fund
during the life of the securities. As a result, electric, gas and telephone
issues may show more price volatility in periods of changing interest rates
than would industrial issues of like quality. The electric, gas and telephone
utility industries are subject to extensive government regulation as to rates
and services.
The Bond Funds will not directly purchase common stocks. However, a Fund may
have up to 10% of the value of its total assets invested in stocks acquired
either by conversion of fixed-income securities or by the exercise of warrants
attached thereto.
The Bond Funds may also enter into transactions in exchange-traded options,
futures contracts and options on futures contracts on United States Treasury
securities and Government National Mortgage Association ("GNMA") Securities.
To be included in any of the Bond Funds, options and futures must be traded on
a domestic exchange.
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THE COMPOSITE FUND
The investment objective of the Composite Fund is 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 means of a diversified portfolio of
publicly traded common stocks, publicly traded debt securities and money
market instruments. The Fund will seek to achieve long-term growth of its
capital and increasing income by investments in common stocks and other
equity-type securities and a high level of current income through investments
in publicly traded debt securities and money market instruments. It is
anticipated that the portion of the assets invested in each type of security
will vary, at the Investment Company's discretion, in accordance with economic
conditions, the general level of common stock prices, interest rates and other
relevant consideration, including the risks associated with each investment
medium. No more than 75% of the value of the Fund's assets, however, may be
invested in either common stock and other equity-type securities, or in debt
securities with a remaining maturity of more than one year. Up to 100% of the
Fund's assets may be invested in money market instruments. The equity
securities invested in by the Fund will consist of the types of securities in
which the Stock Fund may invest. The publicly traded debt securities will
consist of the types of securities in which any Bond Fund may invest. The
money market instruments will consist of the types of securities in which the
Money Market Fund may invest. The Composite Fund may also engage in the same
type of transactions in options, futures contracts and options on futures
contracts as the Stock, Bond, Short-Term Bond, Mid-Term Bond and Money Market
Funds. The Composite Fund will be subject to varying levels of market and
financial risk and current income volatility, depending upon the "mix" of
instruments in which the Fund is from time to time invested. The Composite
Fund will not invest in debt securities rated below investment grade.
Securities which are subsequently downgraded may continue to be held and will
be sold only if, in the judgment of the Investment Adviser, it is advantageous
to do so.
THE AGGRESSIVE EQUITY FUND
The Aggressive Equity Fund will be divided by the Adviser into two segments
so as to utilize two investment styles.
The investment objective for approximately 50% of the assets of the Fund
(the "Aggressive Growth Portfolio") is to achieve capital appreciation by
investing in companies believed to possess above-average growth potential.
Growth can be in the areas of earnings or gross sales, measured in either
dollars or in unit volume. Growth potential is often sought in smaller, less
well-known companies in new and emerging areas of the economy, but may also be
found in larger companies in mature or declining industries that have been
revitalized and hold a strong industry or market position. The Aggressive
Growth Portfolio also may make investments based on prospective economic or
political changes and may invest in special situations such as corporate
restructurings. The Aggressive Growth Portfolio will invest in a relatively
small number of stocks, usually less than 25 at any time, issued by leading
companies in the strong sectors of the economy. The Adviser has entered into a
Subadvisory Agreement with C.J. Lawrence/Deutsche Bank Securities Corporation
("C.J. Lawrence") for the investment of the Aggressive Growth Portfolio. See
"Investment Advisory Arrangements--The Subadvisers."
The investment objective for the other approximately 50% of the assets of
the Fund (the "Aggressive Value Portfolio") is to achieve capital appreciation
by investing in companies believed to possess valuable assets or whose
securities are undervalued in the marketplace in relation to factors such as
the company's assets, earnings, or growth potential. Such companies will
generally have one or more of the following attributes: (1) valuable fixed
assets, such as complex plant and equipment that has a high replacement cost,
real estate with a current value substantially in excess of book value or
large reserves of exploitable natural resources; or (2) valuable consumer or
commercial franchises, such as well recognized trademarks or product names or
potentially valuable transportation routes. The Aggressive Value Portfolio
generally invests in small to medium capitalization securities which have low
prices in relation to cash flow, profits, sales, book value and real net asset
value.
The Fund invests primarily in stocks, but it also may purchase convertible
securities and debt obligations that may produce capital appreciation.
Securities that meet the Fund's criteria may not be popular during certain
market cycles. The Fund can also make substantial temporary investments in
investment-grade debt securities when it believes market conditions warrant.
INVESTMENT RESTRICTIONS
The Investment Company has adopted a number of restrictions and policies
relating to the investment of its assets and its activities which are
fundamental policies and may not be changed without the approval of the
holders of the Investment Company's outstanding voting securities (including a
majority of the shares of each Fund). None of the Funds will: (1) with respect
to at least 75% of the value of its total assets invest more than 5% of its
total assets in the securities of any one
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issuer (including repurchase agreements with any one bank), other than
securities issued or guaranteed by the United States Government or its
agencies or instrumentalities (see "The Money Market Fund" for more
restrictive policies relating to that fund); (2) with respect to at least 75%
of the value of its total assets, purchase more than 10% of the outstanding
voting securities of an issuer, except that such restriction shall not apply
to securities issued or guaranteed by the United States Government or its
agencies or instrumentalities; (3) make an investment in an industry if that
investment would make the Fund's holding in that industry exceed 25% of the
Fund's total assets except for each of the Bond Funds, which may invest up to
75% of its total assets in the electric, gas and/or telephone utilities
industries (other than investments by the Money Market Fund in obligations
issued or guaranteed by the United States Government, its agencies or
instrumentalities, certificates of deposit, or securities issued or guaranteed
by domestic branches of domestic banks and savings and loan associations); or
(4) invest more than 10% of its total assets in repurchase agreements or time
deposits maturing in more than seven days or in portfolio securities not
readily marketable. Investors are referred to the Statement of Additional
Information for a complete description of such restrictions and policies.
OTHER PORTFOLIO STRATEGIES
Lending of Securities
A Fund may lend its securities (but not in excess of 30% of its total
assets) to brokers, dealers and financial institutions and receive as
collateral cash, securities issued or guaranteed by the United States
Government or its agencies or instrumentalities, or letters of credit of
certain banks selected by the investment adviser, which at all times while the
loan is outstanding will be maintained in amounts equal to at least 100% of
the current market value of the loaned securities. The Fund will continue to
receive interest or dividends on the securities lent, and in addition will
receive a portion of the income generated by the short-term investment of cash
received as collateral, or, alternatively, where securities or a letter of
credit are used as collateral, a lending fee paid directly to the Fund by the
borrower of the securities. Such loans will be terminable by the Fund at any
time and will not be made to affiliates of the Fund. The Fund will have the
right to regain record ownership of loaned securities in order to exercise
beneficial rights, such as voting rights or subscription rights. The Fund may
pay reasonable fees to persons unaffiliated with the Fund for services or for
arranging such loans. Loans of securities will be made only to firms that the
Investment Adviser deems creditworthy. As with an extension of credit,
however, there are risks of delay in recovery and even loss of rights in the
collateral, should the borrower of securities default, become the subject of
bankruptcy proceedings or otherwise be unable to fulfill its obligations or
fail financially.
Repurchase Agreements
Repurchase Agreements are more fully described in the Statement of
Additional Information. If a seller of a repurchase agreement defaults and
does not repurchase the security subject to the agreement, the Fund would look
to the collateral security underlying the sellers' repurchase agreement,
including the securities subject to the repurchase agreement, for satisfaction
of the seller's obligation to the Fund; in such event the Fund might incur
disposition costs in liquidating the collateral and might suffer a loss if the
value of the collateral declines. In addition, there is a risk that, if the
issuer of the repurchase agreement becomes involved in bankruptcy proceedings,
the Fund might be delayed or prevented from liquidating the underlying
security or otherwise obtaining it for its own purposes.
Options and Futures
As noted, the Funds may enter into transactions in options, futures
contracts and options on futures contracts on the types of instruments
identified above. Such transactions will be used for hedging purposes only,
and not for speculation, and could include (1) the selling of call option
contracts on portfolio securities (covered calls), and the buying of call
option contracts on such securities to close out a position acquired through
the sale of such options; (2) the buying of put option contracts on securities
owned by a Fund, and the selling of put option contracts on securities owned
by a Fund to close out a position acquired through the purchase of such
options; (3) purchases and sales of futures contracts, and purchases of
options on futures contracts, on fixed-income securities; and (4) purchases
and sales of options on futures contracts, and purchases of options on futures
contracts, on indexes of securities. If a hedging transaction in any such
instrument is successful, a Fund's losses on portfolio securities, or the
increased cost of securities to be acquired, should be offset, in whole or
part, by corresponding gains on the hedging position. The Funds will only
enter into transactions in options, futures and options on futures which are
traded on securities or commodities exchanges located in the United States.
A risk in all such transactions is a possible lack of liquidity, which could
make it difficult or impossible to close out existing positions and realize
gains or limit losses. The liquidity of a secondary market in futures
contracts or options on futures contracts may be adversely affected by "daily
price fluctuation limits," established by the exchanges on which such
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instruments are traded, which limit the amount of fluctuation in the price of
a contract during a single trading day. Once the limit in a particular
contract has been reached, no further trading in such contract may occur
beyond such limit, thus preventing the liquidation of positions, and requiring
traders to make additional variation margin payments. Market liquidity in
options, futures contracts or options on futures contracts may also be
adversely affected by trading halts, suspensions, exchange or clearing house
equipment failures, government intervention, insolvency of a brokerage firm or
clearing house or other disruptions of normal trading activity.
The Funds are also subject to the risk of imperfect correlation between
securities held in their portfolios and the security or securities underlying
options, futures contracts or options on futures contracts traded. In the case
of options, futures contracts or options on futures based on an index of
securities, a Fund's portfolio will not duplicate the composition of the index
and, in the case of options, futures contracts and options on futures
contracts on fixed income securities, the portfolio securities being hedged
may not be the same as the securities underlying such instruments.
Consequently, the Funds bear the risk that the price of the portfolio
securities being hedged will not move in the same amount or direction as the
underlying index or obligation.
A Fund may sell futures contracts on fixed-income securities in anticipation
of a rise in interest rates, which would cause a decline in the value of
fixed-income securities held in the Fund's portfolio. Similarly, a Fund may
sell stock index futures contracts in anticipation of a general market wide
decline which would reduce the value of its portfolio of stocks. In either
case, if the expected decrease in the value of portfolio securities occurs,
the reduction in net asset value may be offset, in whole or in part, by
corresponding gains on the futures position. Conversely, where a Fund projects
an increase in the cost of fixed-income securities or stocks to be acquired in
the future, the Fund may purchase futures contracts on fixed-income securities
or stock indexes. If the hedging transaction is successful, the increased cost
of securities subsequently acquired should be offset, in whole or in part, by
gains on the futures position.
A Fund may also, instead of purchasing or selling futures contracts,
purchase call or put options on futures contracts in order to protect against
declines in the value of portfolio securities or against increases in the cost
of securities to be acquired. Purchases of options on futures contracts may
present less risk in hedging a portfolio than the purchase and sale of the
underlying futures contracts, since the potential loss is limited to the
amount of the premium paid for the option, plus related transaction costs. As
in the case of purchases and sales of futures contracts, a Fund may be able to
offset declines in the value of portfolio securities, or increases in the cost
of securities acquired, through gains realized on its purchases of options on
futures.
The Funds may also purchase put options on securities or stock indexes for
the same types of hedging purposes. The purchase of a put option on a security
or stock index permits a Fund to protect against declines in the value of the
underlying security or securities in a manner similar to the sale of futures
contracts. The maximum risk assumed by a Fund in purchasing an option is the
amount of the premium plus related transaction costs, although this entire
amount may be lost.
In addition, the Funds may write call options on portfolio securities or on
stock indexes for the purpose of increasing their returns and/or to protect
the value of their portfolios. In particular, where a Fund writes an option
which expires unexercised or is closed out by the Fund at a profit, it will
retain the premium paid for the option, less related transaction costs, which
will increase its gross income and will offset in part the reduced value of a
portfolio security in connection with which the option may have been written.
In contrast, however, if the price of the security underlying the option moves
adversely to the Fund's position, the option may be exercised and the Fund
will be required to sell the security at a disadvantageous price, resulting in
losses which may be only partially offset by the amount of the premium. A call
option on a security written by a Fund will be covered through ownership of
the security underlying the option or through ownership of an absolute and
immediate right to acquire such security upon conversion or exchange of other
securities held in its portfolio.
The Funds' hedging transactions and options on futures present certain other
risk factors which are described in the Statement of Additional Information.
Foreign Securities and ADRs
In addition to investing in domestic securities, the Funds may also invest
in securities of foreign issuers (including such securities traded outside the
U.S.). None of the Funds will, however, trade in foreign exchange or invest in
securities of foreign issuers, if at the time of acquisition more than 20% of
its total assets, taken at market value at the time of investment, would be
invested in such securities. Because investments in foreign securities,
particularly those of non-governmental issuers, involve considerations which
are not ordinarily associated with investing in domestic issuers, the
Investment
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Company will consider these special factors before investing in foreign
securities. These considerations include changes in currency rates, currency
exchange control regulations, the possibility of expropriation, the
unavailability of financial information or the difficulty of interpreting
financial information prepared under foreign accounting standards, less
liquidity and more volatility in foreign securities markets, the impact of
political, social or diplomatic developments and the difficulty of assessing
economic trends in foreign countries. If it should become necessary, the Funds
could encounter greater difficulties in involving legal processes abroad than
would be encountered in the United States. In addition, transaction costs in
foreign securities may be higher. The Investment Company will not invest in
foreign securities unless, in its opinion, such investments will meet the
standard and objectives of a particular Fund. No Fund may concentrate its
investments in any particular foreign country except Canada. Foreign issues
guaranteed by domestic corporations are considered to be domestic securities.
ADRs are dollar-denominated receipts issued generally by domestic banks and
representing the deposit with the bank of a security of a foreign issuer. ADRs
are publicly traded on exchanges or over-the-counter in the United States.
ADRs are not subject to the percentage limitations contained in the preceding
paragraph.
Mortgage-Backed Securities
The Bond Funds may invest in mortgage-backed securities, some of which are
also considered to be U.S. Government securities. These securities represent
interests in, or are secured by, pools of mortgage loans and provide holders
with payments consisting of both interest and principal as the mortgages in
the underlying mortgage pools are paid off.
Mortgage-backed securities include securities guaranteed by the Government
National Mortgage Association ("Ginnie Maes"), securities issued by the
Federal National Mortgage Association ("Fannie Maes"), participation
certificates issued by the Federal Home Life Mortgage Corporation ("Freddie
Macs") and collateralized mortgage obligations issued by a Government
instrumentality or agency ("CMOs"). The timely payment of principal and
interest is backed by the full faith and credit of the U.S. Government in the
case of Ginnie Maes but not for Fannie Maes, Freddie Macs or CMOs.
Unscheduled or early payments on the underlying mortgages may shorten the
effective maturities and impact the yield and price of mortgage-backed
securities. A decline in interest rates may lead to increased prepayment of
the underlying mortgages, and the Funds may have to reinvest proceeds received
at lower rates of return. Characteristics of underlying mortgage pools will
vary, and it is not possible to predict completely accurately the realized
yield or average life of a particular mortgage-backed security because of the
principal prepayment feature.
Convertible Securities
Certain Funds may invest in convertible securities, which normally provide a
higher yield than the underlying stock but a lower yield than a fixed-income
security without the convertibility feature. The price of the convertible
security normally will vary to some degree with changes in the price of the
underlying stock, although the higher yield tends to make the convertible
security less volatile than the underlying common stock. The price of the
convertible security also will vary to some degree inversely with interest
rates.
INSURANCE LAW RESTRICTIONS
In order for shares of the Investment Company's Funds to remain eligible
investments for the Separate Accounts, it may be necessary, from time to time,
for a Fund to limit its investments in certain types of securities in
accordance with the insurance laws or regulations of the various states in
which the Contracts are sold. Such laws and restrictions as are currently in
effect may limit the Funds' investments in foreign securities and in debt or
equity securities of certain issuers.
INVESTMENT ADVISORY ARRANGEMENTS
THE ADVISER
Subject to the direction and control of the Board of Directors of the
Investment Company, Mutual of America Capital Management Corporation, 666
Fifth Avenue, New York, New York 10103 (the "Adviser"), an indirect wholly-
owned subsidiary of Mutual of America Life, manages the investment and
reinvestment of the assets of each Fund pursuant to the Investment Advisory
Agreement (the "Agreement") between the Investment Company and the Adviser.
Prior to November 3, 1993, Mutual of America Life was the investment adviser
to the Investment Company; Mutual of America Life's obligations under the
Agreement were assumed by the Adviser on that date. The Adviser had total
assets under management of approximately $7.3 billion at December 31, 1994.
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The Adviser's duties as investment adviser also include research, making
recommendations to the Board of Directors of the Investment Company and
placing orders for the purchase and sale of securities (see "The Funds'
Expenses"). The Adviser is obligated to provide all of the office space,
facilities, equipment, material and personnel necessary to perform its duties
under the Agreement. Under the Subadvisory Agreements, the Adviser has
delegated its investment advisory responsibilities to the Subadvisers and is
responsible for providing management services to the respective Funds. See
"The Subadvisers" below.
As compensation for its investment advisory services to each of the Funds of
the Investment Company, the Adviser will receive a fee calculated as a daily
charge at the annual rates of .125% of the value of the net assets in the
Equity Index Fund; .25% of the value of the net assets in the Money Market
Fund; .50% of the value of the net assets in the All America, Bond, Short-Term
Bond, Mid-Term Bond and Composite Funds; and .85% of the value of the net
assets in the Aggressive Equity Fund. The Adviser pays the Subadvisers for
their investment advisory services. See "The Subadvisers" below. During 1994,
the Adviser paid all of the expenses of the Funds other than investment
advisory fees, brokerage commissions and portfolio transaction costs. See "The
Funds' Expenses."
THE SUBADVISERS
PALLEY-NEEDELMAN, 800 Newport Center Drive, Suite 450, Newport Beach,
California 92660, serves as Subadviser for approximately 10% of the assets
allocated to the All America Fund. Palley-Needelman is jointly owned by Roger
B. Palley and Chet J. Needelman, both of whom have extensive experience in
investment management. It provides investment management services to
institutional, corporate and individual clients and other registered
investment companies. At December 31, 1994, Palley-Needelman managed
approximately $2.7 billion in assets.
OAK ASSOCIATES, 3875 Embassy Parkway, Suite 250, Akron, Ohio 44333, serves
as Subadviser for approximately 10% of the assets allocated to the All-America
Fund. Oak Associates is a sole proprietorship of James Dravo Oelschlager. Oak
Associates provides investment management services for individual and
corporate clients, primarily in connection with retirement plans. At December
31, 1994, Oak Associates had assets under management of approximately $1.7
billion.
ALGER MANAGEMENT, 75 Maiden Lane, New York, New York 10038, serves as
Subadviser for approximately 10% of the assets allocated to the All America
Fund. Alger Management is a wholly-owned subsidiary of Fred Alger & Company,
Incorporated, which is owned by Alger Associates, Inc. Fred M. Alger III and
David D. Alger are the majority shareholders of Alger Associates, Inc. and may
be deemed to control that company and its subsidiaries. Alger Management
provides investment management services to institutional, corporate and
individual clients, including other registered management investment
companies. At December 31, 1994, Alger Management had approximately $2.9
billion in assets under management.
MITCHELL HUTCHINS, 1285 Avenue of the Americas, New York, New York 10019,
serves as Subadviser for approximately 10% of the assets allocated to the All
America Fund. It is a wholly owned subsidiary of Mitchell Hutchins Asset
Management Inc. ("MHAM"). MHAM is a wholly-owned subsidiary of PaineWebber
Incorporated, which in turn is a wholly-owned subsidiary of Paine Webber Group
Inc., a publicly-owned financial services holding company. Mitchell Hutchins
provides investment management services to institutional and corporate
clients. As of December 31, 1994, total assets under Mitchell Hutchins's
management were approximately $9 billion.
C.J. LAWRENCE, 1290 Avenue of the Americas, New York, New York 10104, serves
as Subadviser of the Aggressive Growth Portfolio of the Aggressive Equity
Fund. C.J. Lawrence Inc., the predecessor to C.J. Lawrence, was established in
1864. C.J. Lawrence is an indirect wholly owned subsidiary of Deutsche Bank
AG. At December 31, 1994, C.J. Lawrence Inc. had more than $3.8 billion in
assets under management.
Under the Subadvisory Agreements, each Subadviser, at its own expense and
subject to the supervision of the Adviser and the Board of Directors of the
Investment Company, renders investment advisory services and assumes the
Adviser's duties including research, making recommendations and regular
reports to the Adviser and the Board of Directors of the Investment Company
and maintenance of certain records. The Subadvisers are also obligated to
provide all of the office space, facilities, equipment, material and personnel
necessary to perform their duties under the Subadvisory Agreements. The
Adviser, and not the Funds, will pay to the Subadvisers an amount calculated
daily at the following annual rates: Palley-Needelman, .30%; Oak Associates,
.30%; Alger Management, .45%; Mitchell Hutchins, .50%; and C.J. Lawrence, .50%
of the first $15 million and .30% thereafter; of the value of the net assets
for which the Subadviser is providing investment advisory services.
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<PAGE>
PORTFOLIO MANAGERS
Set forth below is information about the person or persons employed by the
Adviser or Subadvisers who are primarily responsible for the day-to-day
management of the Funds' investments. No information is given for the Money
Market Fund, the Equity Index Fund or the Indexed Assets portion of the All
America Fund based on the nature of the investments made by those Funds.
ALL AMERICA FUND. The Active Assets of the All America Fund are managed by
four Subadvisers.
Chet J. Needelman, Chief Executive Officer and Senior Investment Officer of
Palley-Needelman, is responsible for the day-to-day management of the Palley-
Needelman portion of the Fund. Mr. Needelman has over 27 years of investment
experience as a security analyst, research director and portfolio manager. He
has managed funds for foundations, corporations, endowments and mutual funds.
He is the co-founder of Palley-Needelman Asset Management and its predecessor
company, where he held various positions during the last 20 years. All
investment decisions for Palley-Needelman Asset Management are made by an
investment committee which includes Mr. Needelman, Mr. Palley and three other
senior investment professionals.
James D. Oelschlager is the portfolio manager of the Oak Associates portion
of the Fund. Since establishing Oak Associates in 1985, Mr. Oelschlager has
served as its portfolio manager. Previously, he served as the Assistant
Treasurer of Firestone Tire & Rubber Company, where he was directly
responsible for the management of the company's pension assets. Mr.
Oelschlager is assisted with portfolio management responsibilities by Donna
Barton, trading, Margaret Ballinger, new accounts, and Doug MacKay, equity
research. These individuals have combined experience of over sixty years in
the investment business and play a key role in the day-to-day management of
the firm's portfolios.
David D. Alger, President of Alger Management, is primarily responsible for
the day-to-day management of the Alger Management portion of the Fund. He has
been employed by Alger Management as Executive Vice President and Director of
Research since 1971 and as President since 1995, and he serves as portfolio
manager for other mutual funds and investment accounts managed by Alger
Management.
A team approach is used to manage the Mitchell Hutchins portion of the Fund.
Members of the investment management staff participate in the decision-making
process, and Dorik Rozanski makes all final investment decisions. Dorik
Rozanski is a Managing Director of Mitchell Hutchins and portfolio manager
specializing in the management of small to medium capitalization stock
portfolios. He began developing this strategy in the late 1950's and early
1960's, culminating in the creation of portfolios for Mitchell Hutchins in
October 1980. Mr. Rozanski joined Manufacturers Hanover Trust Company in 1977
as a research analyst/portfolio manager specializing in specialty equity
management. His prior experience was as an institutional research analyst at
such firms as Wagenseller & Durst and Portfolio Management Corporation. He was
also employed as a senior systems and market research analyst at several
divisions of the North American Rockwell Corporation and the Atomic Energy
division of the Babcock & Wilcox Company. Mr. Rozanski received an A.B. degree
from the City College of New York and an M.P.A. degree from Princeton
University. Morris Ajzenman is a Senior Vice President of Mitchell Hutchins
and portfolio manager specializing in the management of small to medium
capitalization stock portfolios. He rejoined the firm in 1988 after being with
Bear Stearns Asset Management for four years. Mr. Ajzenman was Director of
Research where the emphasis was on undervalued and overlooked companies. From
1982 to 1985, Mr. Ajzenman was with Manufacturers Hanover Investment
Corporation where he was the securities analyst responsible for Manufacturers
Hanover Trust Company's core holdings. He also worked in conjunction with
another portfolio manager on one of the firm's specialty equity funds. Mr.
Ajzenman also had five years of securities analyst experience with the
National Securities & Research Corporation. Mr. Ajzenman received a B.A.
degree from Brooklyn College and an M.B.A. degree from Pace University. He is
a Chartered Financial Analyst and a member of the New York Society of Security
Analysts and the Financial Analysts Federation.
BOND FUND, SHORT-TERM BOND FUND AND MID-TERM BOND FUND. For each of the Bond
Funds, Andrew L. Heiskell, Executive Vice President of the Adviser, has
responsibility for setting the fixed income investment strategy and overseeing
the Fund's day-to-day operations. He has been the portfolio manager for the
Bond Fund since February 1991 and of the Mid-Term and Short-Term Bond Funds
since their inception. Mr. Heiskell has over 25 years of investment experience
and joined Mutual of America Life in February of 1991, where he was Senior
Vice President until January 1, 1994. Prior to joining Mutual of America Life,
Mr Heiskell was employed by M. D. Sass, Inc.
COMPOSITE FUND. I. Charles Rinaldi, Vice President of the Adviser, is
responsible for the day-to-day operations of the equity portion of the Fund,
and Andrew L. Heiskell, Executive Vice President of the Adviser, is
responsible for the day-to-day operations of the fixed-income portion of the
Fund. Mr. Rinaldi joined Mutual of America Life in November of 1989,
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<PAGE>
and Mr. Heiskell joined in February of 1991, where they were Vice President
and Senior Vice President, respectively, until January 1, 1994. Prior to
joining Mutual of America Life, Mr. Heiskell was employed by M. D. Sass, Inc.
and Mr Rinaldi was employed by Glickenhaus & Co.
AGGRESSIVE EQUITY FUND. Suydam Van Zandt Schreiber, a Managing Director of
C.J. Lawrence, is responsible for the day-to-day management of the Aggressive
Growth Portfolio of the Fund. Mr. Schreiber began his career with C.J.
Lawrence in 1965 as an equity research analyst, covering technology and
machinery companies. He was put in charge of the firm's Institutional
Marketing in 1968, and became a partner of the firm in 1969. He served as
Executive Vice President and a member of the Executive Committee and Board of
Directors in 1976. In 1980, Mr. Schreiber became a member of the investment
policy committee. Presently, he is a Managing Director and Senior Growth
Portfolio Manager at CJL/DBSC. Mr. Schreiber received his MBA from New York
University and his undergraduate degree from Williams College. He has been,
and continues to be, involved in numerous local businesses and charitable
activities.
I. Charles Rinaldi, Vice President of the Adviser, has responsibility for
setting the investment strategy and overseeing the day-to-day operations of
the Aggressive Value Portfolio of the Aggressive Equity Fund. Mr. Rinaldi
joined Mutual of America Life in November of 1989, where he was Vice President
until January 1, 1994. Prior to joining Mutual of America Life, Mr. Rinaldi
was employed by Glickenhaus & Co.
THE FUNDS' EXPENSES
Each Fund is charged with brokers' commissions, transfer taxes and other
fees relating to that Fund's portfolio transactions, pursuant to the
Investment Advisory Agreement between the Investment Company and the Adviser.
In addition, the Fund is responsible for a number of expenses relating to its
operations, including: directors' fees and expenses; the fees and expenses of
its independent certified public accountants and of its legal counsel;
printing and mailing costs of semi-annual reports to shareholders, Proxy
Statements, Prospectuses, Prospectus Supplements and Statements of Additional
Information; printing of registration statements; bank transaction charges and
custodian's fees; proxy solicitors' fees and expenses, SEC filing fees; any
federal, state or local income or other taxes; any membership fees of the
Investment Company Institute and similar organizations; fidelity bond and
directors' liability insurance premiums; and any extraordinary expenses, such
as indemnification payments or damages awarded in litigation or settlements
made. The Adviser voluntarily limits the expenses of each Fund, other than for
brokers' commissions, transfer taxes and other fees relating to portfolio
transactions, to the amount of the investment advisory fee paid by the Fund to
the Adviser. The Adviser may discontinue making such reimbursements or
payments at any time.
PORTFOLIO TRANSACTIONS
The Adviser is responsible for decisions to buy and sell securities for the
Investment Company as well as for selecting brokers and, where applicable,
negotiating the amount of the commission rate paid. In placing orders, it is
the policy of the Investment Company to obtain the best price and execution
for its contracts.
The Adviser and Subadvisers place orders in connection with the purchase and
sale of approved investments with various brokers, including their affiliates.
As a general matter, the Adviser and each Subadviser select broker-dealers
which, in its best judgment, provide prompt and reliable execution at
favorable security prices and reasonable commission rates. They may select
broker-dealers which provide them with research services and may cause a Fund
to pay such broker-dealers commissions which exceed those other broker-dealers
may have charged, if in their view the commissions are reasonable in relation
to the value of the brokerage and/or research services provided by the broker-
dealer. Brokerage arrangements with affiliates of the Adviser or the Sub-
Advisers will be in accordance with the 1940 Act and the rules and regulations
promulgated thereunder. No transactions may be effected by a Fund with an
affiliate of the Adviser or a Sub-Adviser acting as principal for its own
account. When purchasing or selling securities trading on the over-the-counter
market, the Adviser and Subadvisers will generally execute the transaction
with a broker engaged in making a market for such securities.
PURCHASE OF SHARES
The Investment Company is offering shares in the Funds, without sales
charge, at present only for purchase by the Insurance Companies for allocation
to the Separate Accounts to fund benefits under the Contracts. The Investment
Company continuously offers shares at prices equal to the respective per share
net asset value of the Funds. Net asset value is determined in the manner set
forth below under "Additional Information--Determination of Net Asset Value."
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<PAGE>
REDEMPTION OF SHARES
The Investment Company is required to redeem all full and fractional shares
of the Funds for cash. The redemption price is the net asset value per share
next determined after the initial receipt of proper notice of redemption.
Payment upon redemption of Fund shares is normally made within seven days of
receipt of such request (unless redemption is suspended or payment is delayed
as permitted in accordance with SEC regulations).
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Investment Company has in the past elected the special tax treatment
afforded a "regulated investment company" under certain provisions of the
Internal Revenue Code (the "Code"). The Investment Company believes it has
qualified for such treatment and intends to continue to qualify therefor. If
it so qualifies, the Investment Company will not be subject to Federal income
tax on that part of its ordinary income and net realized capital gains which
it distributes to shareholders, thereby avoiding any Federal income tax
liability. Such dividend distributions will be declared and reinvested in
additional full and fractional shares of the Fund to which they relate,
annually, both in the case of net investment income and in the case of net
realized short- or long-term capital gains.
For dividend purposes, the net investment income of each Fund will consist
of dividends received and interest accrued by such Fund, plus or minus any
amortized discount or premium, less the estimated expenses of such Fund. To
qualify for treatment as a regulated investment company, the Investment
Company must, among other things, derive in each taxable year at least 90% of
its gross income from dividends, interest, gains from the sale or other
disposition of stock or securities, including foreign securities, and other
income derived with respect to the business of investing in stock or
securities. In addition, the Investment Company must derive less than 30% of
its gross income in each taxable year from the disposition of options, futures
and forward contracts or financial investments and foreign currencies, as well
as stocks and securities, in each case held for less than three months. For
purposes of these tests, gross income is determined without regard to losses
from the sale or other disposition of stock or securities. Since the
Investment Company has more than one Fund, each Fund will be treated as a
separate corporation for Federal income tax purposes. Therefore, the
investments and results of each Fund must satisfy the foregoing requirements
independently.
Although the Investment Company intends to operate so that it will have no
Federal income tax liability, if any such liability is nevertheless incurred,
the investment performance of the Investment Company will be adversely
affected.
The Investment Company intends to distribute all net realized long- or
short-term capital gains, if any, to the shareholders of the Fund or Funds to
which such gains are attributable. Realized capital gains and losses of each
Fund are computed separately for the purpose of determining capital gain
distributions. The net capital gain of one Fund will not be reduced by any net
capital losses incurred by the other Funds. Each Fund which has a net capital
gain will be entitled to distribute the full amount of that capital gain as a
capital gain distribution. Each Fund which has a net capital loss will be
entitled to a carryover of that loss which it can apply against its capital
gains in future years.
The tax treatment of the Insurance Companies and the Separate Accounts and
the tax implications of an investment in any Contract are described in the
prospectus or brochure for the Contract.
ADDITIONAL INFORMATION
DETERMINATION OF NET ASSET VALUE
The net asset value of the shares of each Fund (i.e., the sum of the value
of the securities held by that Fund plus any cash or other assets including
interest and dividends accrued minus all liabilities including accrued
expenses) is determined once daily by the Adviser immediately after the
declaration of dividends, if any, and is determined as of the time of the
close of trading on the New York Stock Exchange on each day during which such
Exchange is open for trading, with the exception of the Friday following
Thanksgiving ("Valuation Day"). The net asset value per share of each Fund for
any Valuation Period (i.e., the period beginning on the close of business on
the preceding Valuation Day and ending on the close of business on the next
Valuation Day) is the amount obtained by multiplying the net asset value per
share as of the preceding Valuation Period by that Fund's Change Factor
(described below) for the period beginning on the close of business on the
preceding Valuation Day and ending on the close of business on the next
Valuation Day ("Valuation Period").
The Change Factor for each Fund for any Valuation Period is determined as:
(a) the ratio of (i) the net asset value of the Fund at the end of the
current Valuation Period, before any amounts are allocated to or withdrawn
from the Fund with respect to that Valuation Period, to (ii) the net asset
value of the Fund
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at the end of the preceding Valuation Period, after all allocations and
withdrawals were made for that period, divided by
(b) 1.00000 plus the component of the annual rate of the Investment
Adviser's fee against a Fund's assets for the number of days from the end
of the preceding Valuation Period to the end of the current Valuation
Period (see "Investment Advisory Arrangements").
The value of the assets held in the Investment Company will be determined in
the following manner. Investments for which market quotations are readily
available are valued at the market value of such investments (except that, as
discussed below, money market securities with a remaining maturity of 60 days
or less may be valued at amortized cost). An equity security will be valued at
the last sale price for such security on the principal exchange on which such
security is traded, or at the last bid price on the principal exchange on
which such security is traded if such bid price is of a more recent day than
the last sales price. For any equity security not traded on an exchange but
traded in the over-the-counter market, the value will be the last bid price
available except that securities for which quotations are furnished through
the National Association of Securities Dealers Automated Quotation ("NASDAQ")
system will be valued at the closing best bid price so furnished on the date
of valuation. Debt securities will be valued at a composite fair market value,
"evaluated bid," which may be the last sale price, by a valuation service
selected by the Adviser. Portfolio securities or assets for which market
quotations are not readily available will be valued at fair value as
determined in good faith by the Investment Adviser under the direction of the
Board of Directors of the Investment Company.
Money market securities held by the Investment Company with a remaining
maturity of 60 days or less will be valued on an amortized cost basis, which
approximates market value; provided, however, that if the value determined
under the amortized cost method is materially different from the actual market
value, then even such short-term money market securities will be valued at
market value. Under the amortized cost method of valuation, the security is
initially valued at cost on the date of purchase (or in the case of securities
initially purchased with more than 60 days remaining to maturity, the market
value on the 61st day prior to maturity), and thereafter the Investment
Company assumes a constant proportionate amortization in value until maturity
of any discount or premium. For purposes of this method of valuation, the
maturity of a variable rate certificate of deposit is deemed to be the next
coupon date on which the interest rate is to be adjusted.
Portfolio investments underlying options are valued as described above.
Stock options written by a Fund are valued at the last sale price or, if there
has been no sale that day, at the mean of the last bid and asked price on the
principal exchange where the option is traded, as of the close of trading on
that exchange. The Fund's net value will be increased or decreased by the
difference between the premiums received on writing options and the costs of
liquidating such positions measured by the closing price of the option on the
exchange where traded.
When a Fund writes a call option, the amount of the premium is included in
the Fund's assets and an amount is included in its liabilities. The liability
thereafter is adjusted to the current market value of the call. For example,
if the current market value of the call exceeds the premium received, the
excess would be unrealized depreciation; conversely, if the premium exceeds
the current market value, such excess would be unrealized appreciation. If a
call expires or if the Fund enters into a closing purchase transaction, it
realizes a gain (or a loss if the cost of the transaction exceeds the premium
received when the call was written) without regard to any unrealized
appreciation or depreciation in the underlying securities, and the liability
related to such call is extinguished. If a call is exercised, the Fund
realizes a gain or loss from the sale of the underlying securities and the
proceeds of the sale increased by the premium originally received.
A premium paid on the purchase of a put will be deducted from a Fund's
assets and an equal amount will be included as an investment and subsequently
adjusted to the current market value of the put. For example, if the current
market value of the put exceeds the premium paid, the excess would be
unrealized appreciation; conversely, if the premium exceeds the current market
value, such excess would be unrealized depreciation.
Futures contracts, and options thereon, which are traded on commodities
exchanges, are valued at their official settlement price as of the close of
such commodities exchanges.
DESCRIPTION OF THE INVESTMENT COMPANY'S SHARES
The authorized capital stock of the Investment Company consists of one
billion shares of common stock, $.01 par value. The shares of common stock are
divided into eight classes of common stock: Money Market Fund, All America
Fund, Equity Index Fund, Bond Fund, Short-Term Bond Fund, Mid-Term Bond Fund,
Composite Fund and Aggressive Equity Fund. The Investment Company may
establish additional Funds and may allocate its shares either to such new
classes or to one or more of the eight existing classes.
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All shares of common stock, of whatever class, are entitled to one vote, and
the votes of all classes are cast on an aggregate basis, except on matters
where the interests of the Funds differ. In such a case, the voting is on a
Fund-by-Fund basis. Approval or disapproval by the shareholders of one Fund on
such a matter would not generally be a prerequisite of approval or disapproval
in another Fund. Shareholders in a Fund not affected by a matter generally
would not be entitled to vote on that matter. Examples of matters which would
require a Fund-by-Fund vote are changes in the fundamental investment policy of
a particular Fund and approval of the Investment Advisory Agreement or a
Subadvisory Agreement for the Fund.
The shares of each Fund, when issued, will be fully paid and nonassessable
and will have no preference, preemptive, conversion, exchange or similar
rights. Shares do not have cumulative voting rights.
Each issued and outstanding share in a Fund is entitled to participate
equally in dividends and distributions declared by such Fund and in the net
assets of such Fund upon liquidation or dissolution remaining after
satisfaction of outstanding liabilities. Accrued liabilities which are not
allocable to one or more Funds will generally be allocated among the Funds in
proportion to their relative net assets. In the unlikely event that any Fund
incurred liabilities in excess of its assets, the other Funds could be liable
for such excess.
INDEPENDENT AUDITORS
Arthur Andersen LLP, Certified Public Accountants, have been selected as the
independent auditors of the Investment Company for its fiscal year ending
December 31, 1995. Arthur Andersen LLP also acts as the independent auditors of
the Insurance Companies.
CUSTODIAN
Morgan Guaranty Trust Company of New York, New York, New York ("Morgan
Guaranty"), acts as Custodian of the Investment Company's assets for the Funds,
other than the All America Fund for which CoreStates Bank N.A., Philadelphia,
Pennsylvania, acts as Custodian. On or about June 15, 1995, Morgan Guaranty
will become the Custodian of the assets of the All America Fund.
LEGAL COUNSEL
Graham & James, New York, New York, is counsel for the Investment Company.
Graham & James is also counsel for Mutual of America Life with respect to its
Separate Accounts No.1 and No.2.
REPORTS TO SHAREHOLDERS
The fiscal year of the Investment Company ends on December 31 of each year.
The Investment Company will send to its shareholders at least semiannually
reports showing the Funds' portfolio securities and other information. An
annual report containing financial statements, audited by independent certified
public accountants, will be sent to shareholders each year.
INQUIRIES
All inquiries pertaining to the Investment Company's shares should be made in
writing to Mutual of America Investment Corporation, 666 Fifth Avenue, New
York, New York 10103.
ADDITIONAL INFORMATION AVAILABLE
This Prospectus does not contain all the information included in the
Registration Statement filed with the Securities and Exchange Commission under
the Securities Act of 1933 and the Investment Company Act of 1940, with respect
to the securities offered hereby, certain portions of which have been omitted
pursuant to the rules and regulations of the Securities and Exchange
Commission.
The Statement of Additional Information, dated May 1, 1995, which forms a
part of the Registration Statement, is incorporated by reference into this
Prospectus. The Statement of Additional Information may be obtained without
charge as provided on the cover page of this Prospectus. The Registration
Statement, including the exhibits filed therewith, may be examined at the
office of the Securities and Exchange Commission in Washington, D.C.
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S & P 500 INDEX
The Equity Index Fund and the Indexed Assets of the All America Fund
(together, the "Indexed Portfolios") are not sponsored, endorsed, sold or
promoted by Standard & Poor's Corporation ("S&P"). S&P makes no representation
or warranty, express or implied, to the owners of the Indexed Portfolios or
any member of the public regarding the advisability of investing in securities
generally or in the Indexed Portfolios particularly or the ability of the S&P
500 Index to track general stock market performance. S&P's only relationship
to the Investment Company is the licensing of certain trademarks and trade
names of S&P and of the S&P 500 Index which is determined, composed and
calculated by S&P without regard to the Indexed. S&P has no obligation to take
the needs of the Indexed Portfolios or the owners of the Indexed Portfolios
into consideration in determining, composing or calculating the S&P 500 Index.
S&P is not responsible for and has not participated in the calculation of the
net asset values of the Indexed Portfolios, nor is S&P a distributor of the
Indexed Portfolios. S&P has no obligation or liability in connection with the
administration, marketing or trading of the Indexed Portfolios.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500
INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED,
AS TO RESULTS TO BE OBTAINED BY THE INDEXED PORTFOLIOS, OWNERS OF THE INDEXED
PORTFOLIOS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR
ANY DATA INCLUDED THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX OR ANY DATA
INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P
HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL
DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH
DAMAGES.
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MUTUAL OF AMERICA INVESTMENT CORPORATION
666 FIFTH AVENUE, NEW YORK, NEW YORK 10103
(212) 399-1600
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1995
This Statement of Additional Information is not a prospectus. It should be
read in conjunction with the Mutual of America Investment Corporation
Prospectus dated May 1, 1995 and retained for future reference.
A copy of the prospectus to which this Statement of Additional Information
relates is available at no charge by writing the Mutual of America Investment
Corporation at the above address or by calling the telephone number listed
above.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
GENERAL INFORMATION AND HISTORY............................................ 1
INVESTMENT POLICIES AND LIMITATIONS........................................ 1
INVESTMENT RESTRICTIONS.................................................... 6
MANAGEMENT OF THE INVESTMENT COMPANY....................................... 7
INVESTMENT ADVISORY ARRANGEMENTS........................................... 8
PORTFOLIO TRANSACTIONS AND BROKERAGE....................................... 10
PURCHASE AND PRICING OF SECURITIES......................................... 11
YIELD AND PERFORMANCE INFORMATION.......................................... 12
DESCRIPTION OF CORPORATE BOND RATINGS...................................... 14
INDEPENDENT AUDITORS....................................................... 15
LEGAL MATTERS.............................................................. 15
CUSTODIAN.................................................................. 16
DISTRIBUTION ARRANGEMENTS.................................................. 16
FINANCIAL STATEMENTS....................................................... 17
</TABLE>
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GENERAL INFORMATION AND HISTORY
THE INVESTMENT COMPANY
Mutual of America Investment Corporation (the "Investment Company") is a
diversified, open-end management investment company -- a type of company
commonly known as a "mutual fund". It is registered as such under the
Investment Company Act of 1940 (the "Investment Company Act"). The Investment
Company was formed on February 21, 1986 as a Maryland corporation and offers
its shares exclusively to separate accounts of Mutual of America Life
Insurance Company ("Mutual of America Life") and Mutual of America Life's
indirect wholly-owned subsidiary, The American Life Insurance Company of New
York ("American Life"). Mutual of America Life and American Life, together,
hereinafter are sometimes referred to as the "Insurance Companies" and each,
an "Insurance Company". The separate accounts of the Insurance Companies,
together, hereinafter are sometimes referred to as the "Separate Accounts" and
each, a "Separate Account".
As a "series" type of mutual fund, the Investment Company issues separate
classes (or series) of stock, each of which represents a separate Fund of
investments. There are currently eight Funds: the Money Market Fund, the All
America Fund, the Equity Index Fund, the Bond Fund, the Short-Term Bond Fund,
the Mid-Term Bond Fund, the Composite Fund, and the Aggressive Equity Fund. As
stated in the Investment Company's Prospectus, the Investment Company is a
successor to Separate Account No. 2 of Mutual of America Life.
The Investment Company's shares are sold only to the Insurance Companies for
allocation to the Separate Accounts; thus the Insurance Companies are the only
holders of Investment Company shares and control the Investment Company.
INVESTMENT POLICIES AND LIMITATIONS
The following supplements the information contained in the Investment
Company's Prospectus concerning the investment policies and limitations of its
Funds. For information relating to the Funds' investment objectives, see
"Investment Objectives and Policies of the Funds", and for information about
the Adviser and the Subadvisers, see "Investment Advisory Arrangements" in the
Prospectus and in this Statement of Additional Information.
Fixed-income securities which are rated in the lower rating categories of
the nationally recognized rating services (Ba or lower by Moody's and BB or
lower by Standard & Poor's), or unrated securities of comparable quality, in
which the Bond Funds may to a limited extent invest, are commonly known as
"junk bonds." Junk bonds are regarded as being predominantly speculative as to
the issuer's ability to make payments of principal and interest. Investment in
such securities involves substantial risk. Junk bonds may be issued by less
creditworthy companies or by larger, highly leveraged companies, and are
frequently issued in corporate restructurings such as mergers and leveraged
buy-outs. Such securities are particularly vulnerable to adverse changes in
the issuer's industry and in general economic conditions. Junk bonds
frequently are junior obligations of their issuers, so that in the event of
the issuer's bankruptcy, claims of the holders of junk bonds will be satisfied
only after satisfaction of the claims of senior security holders. While the
junk bonds in which the Bond Funds may invest normally would not include
securities which, at the time of investment, are in default or the issuers of
which are in bankruptcy, there can be no assurance that such events would not
occur after the Bond Funds purchase a particular security, in which case the
Bond Funds may experience losses and incur costs.
Junk bonds tend to be more volatile than higher-rated fixed-income
securities, so that adverse economic events may have a greater impact on the
prices of junk bonds than on higher-rated fixed-income securities. Like
higher-rated fixed-income securities, junk bonds generally are purchased and
sold through dealers who make a market in such securities for their own
accounts. However, there are fewer dealers in the junk bond market, which may
be less liquid than the market for higher-rated fixed-income securities, even
under normal economic conditions. Also, there may be significant disparities
in the prices quoted for junk bonds by various dealers. Adverse economic
conditions or investor perceptions (whether or not based on economic
fundamentals) may impair the liquidity of this market, and may cause the
prices the Bond Funds may receive for any junk bonds to be reduced, or might
cause the Bond Funds to experience difficulty in liquidating a portion of its
portfolios. Under such conditions, judgment may play a greater role in valuing
certain of the Bond Funds' securities than in the case of securities trading
in a more liquid market.
While the Funds other than the Bond Funds do not purchase junk bonds, the
fixed-income securities they purchase may become junk bonds as a result of
impairments of the issuer's credit. In such instances, the Fund holding a junk
bond will consider disposing of it if, in management's judgment, it is in the
Fund's best interest to do so.
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Reference is made to "Investment Objectives and Policies of the Funds" in
the Prospectus for a more complete discussion of the investment objectives and
policies of the Investment Company. The following is a description of the
money market securities the Money Market Fund may invest in as referred to in
the "Investment Objectives and Policies of the Funds" section of the
Prospectus.
U.S. Government Obligations. Securities issued or guaranteed as to principal
and interest by the United States Government include a variety of Treasury
securities, which differ only in their interest rates, maturities and times of
issuance. Treasury bills have a maturity of one year or less. Treasury notes
have maturities of one to seven years and Treasury bonds generally have a
maturity of greater than five years.
Agencies of the United States Government which issue or guarantee
obligations include, among others, Export-Import Bank of the United States,
Farmers Home Administration, Federal Housing Administration, Government
National Mortgage Association, Student Loan Marketing Association, Maritime
Administration, Small Business Administration and the Tennessee Valley
Authority. Obligations of instrumentalities of the United States Government
include securities issued or guaranteed by, among others, Federal Farm Credit
Banks, Federal National Mortgage Association, Federal Home Loan Banks, Federal
Home Loan Mortgage Corporation, Federal Intermediate Credit Banks, Federal
Land Banks and Banks for Cooperatives. Some of these securities are supported
by the full faith and credit of the U.S. Treasury; others are supported by the
right of the issuer to borrow from the Treasury, while still others are
supported only by the credit of the instrumentality.
Shares of the Investment Company are not themselves insured or guaranteed by
the United States Government or any agency thereof.
Certificates of Deposit. Certificates of deposit are generally short term,
interest-bearing negotiable certificates issued by banks or savings and loan
associations against funds deposited in the issuing institution.
Time Deposits. Time deposits are deposits in a bank or other financial
institution for a specified period of time at fixed interest rate of which a
negotiable certificate is not received.
Bankers' Acceptance. A bankers' acceptance is a draft drawn on a commercial
bank by a borrower usually in connection with an international commercial
transaction (to finance the import, export, transfer or storage of goods). The
borrower is liable for payment as well as the bank, which unconditionally
guarantees to pay the draft at its face amount on the maturity date. Most
acceptances have maturities of six months or less and are traded in secondary
markets prior to maturity.
Commercial Paper. Commercial paper refers to short-term, unsecured
promissory notes issued by corporations to finance short-term credit needs.
Commercial paper is usually sold on a discount basis and has a maturity at the
time of issuance not exceeding nine months.
Variable Amount Floating Rate Notes. Variable floating rate notes are short-
term, unsecured promissory notes issued by corporations to finance short-term
credit needs. These are interest-bearing notes on which the interest rate
generally fluctuates on a weekly basis.
Corporate Debt Securities. Corporate debt securities with a remaining
maturity of less than one year tend to become extremely liquid and are traded
as money market securities. Such issues with between one and two years
remaining to maturity tend to have greater liquidity and considerably less
market value fluctuations than longer term issues.
REPURCHASE AGREEMENTS
Under a repurchase agreement, underlying debt instruments are acquired for a
relatively short period (usually not more than one week and never more than
one year) subject to an obligation of the seller to repurchase (and the
appropriate Fund to resell) the instrument at a fixed price and time, thereby
determining the yield during the Fund's holding period. This results in a
fixed rate of return insulated from market fluctuation during such period.
Accrued interest on the underlying security will not be included for purposes
of valuing a Fund's assets.
Repurchase agreements have the characteristics of loans by a Fund, and will
be fully collateralized (either with physical securities or evidence of book
entry transfer to the account of the custodian bank) at all times. During the
term of the repurchase agreement the Fund retains the security subject to the
repurchase agreement as collateral securing the seller's repurchase
obligation, continually monitors the market value of the security subject to
the agreement and requires the Fund's
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<PAGE>
seller to deposit with the Fund additional collateral equal to any amount by
which the market value of the security subject to the repurchase agreement
falls below the resale amount provided under the repurchase agreement. The
Funds enter into repurchase agreements only with member banks of the Federal
Reserve System, and with primary dealers in U.S. Government securities whose
creditworthiness has been reviewed and found satisfactory by the management of
the Investment Company, and who have, therefore, been determined to present
minimal credit risk.
Securities underlying repurchase agreements will be limited to certificates
of deposit, commercial paper, bankers' acceptances, or obligations issued or
guaranteed by the United States Government or its agencies or
instrumentalities, in which the Funds may otherwise invest.
If a seller of a repurchase agreement defaults and does not repurchase the
security subject to the agreement, the Fund would look to the collateral
security underlying the seller's repurchase agreement, including the
securities subject to the repurchase agreement, for satisfaction of the
seller's obligation to the Fund; in such event the Fund might incur
disposition costs in liquidating the collateral and might suffer a loss if the
value of the collateral declines. In addition, there is a risk that, if the
issuer of the repurchase agreement becomes involved in bankruptcy proceedings,
the Fund might be delayed or prevented from liquidating the underlying
security or otherwise obtaining it for its own purposes.
OPTIONS AND FUTURES
As described in the Prospectus, the Funds may enter into transactions in
options, futures contracts and options on futures contracts on securities and
indexes of securities for hedging purposes only. With respect to options and
futures, the Funds may engage in strategies which include buying and selling
covered calls and puts and buying and selling call options on groups of
securities and on the futures of groups of securities.
A call option is a short-term contract (generally having a duration of nine
months or less) which gives the purchaser of the option the right to purchase
the underlying security at a fixed exercise price at any time prior to the
expiration of the option regardless of the market price of the security during
the option period. As consideration for the call option, the purchaser pays a
Fund (the seller) a premium, which the Fund retains whether or not the option
is exercised. The seller of the call option has the obligation, upon the
exercise of the option by the purchaser, to sell the underlying security at
the exercise price at any time during the option period. The selling of a call
option will benefit a Fund if, over the option period, the underlying security
declines in value or does not appreciate above the aggregate of the exercise
price and the premium. However, the Fund risks an "opportunity loss" of
profits if the underlying security appreciates above the aggregate value of
the exercise price and the premium.
A Fund may close out a position acquired through selling a call option by
buying a call option on the same security with the same exercise price and
expiration date as the call option which it had previously sold on that
security. Depending on the premium for the call option purchased by the Fund,
the Fund will realize a profit or loss on the transaction.
A put option is a similar short-term contract that gives the purchaser of
the option the right to sell the underlying security at a fixed exercise price
at any time prior to the expiration of the option regardless of the market
price of the security during the option period. As consideration for the put
option a Fund (the purchaser) pays the seller a premium, which the seller
retains whether or not the option is exercised. The seller of the put option
has the obligation, upon the exercise of the option by the purchaser, to
purchase the underlying security at the exercise price at any time during the
option period. The buying of a covered put contract limits the downside
exposure for the investment in the underlying security to the combination of
the exercise price less the premium paid. The risk of purchasing a put is that
the market price of the underlying stock prevailing on the expiration date may
be above the option's exercise price. In that case the option would expire
worthless and the entire premium would be lost.
A Fund may close out a position acquired through buying a put option by
selling a put option on the same security with the same exercise price and
expiration date as the put option which it had previously bought on the
security. Depending on the premium of the put option sold by the Fund, the
Fund will realize a profit or loss on the transaction.
In addition to options (both calls and puts) on individual securities, the
Funds may purchase and sell options on indexes of securities such as the
Standard & Poor's 100 Index, the Standard & Poor's 500 Stock Index and the New
York Stock Exchange Composite Index. Options on stock indexes, like options on
individuals securities, are traded on national securities exchanges, regulated
by the Securities and Exchange Commission such as the Chicago Board Options
Exchange, the American Stock Exchange and the New York Stock Exchange. The
Funds may sell futures contracts, and purchase options on futures contracts,
on the same types of stock indexes. Options, futures contracts and options on
futures contracts can be
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<PAGE>
used in anticipation of or in a general market or market sector decline that
may adversely affect the market value of a Fund's portfolio of securities. To
the extent that a Fund's portfolio of securities changes in value in
correlation with a given stock index, hedging transactions in options, futures
contracts or options on futures contracts could reduce the risk to the
portfolio of a market decline, and, by so doing, provide an alternative to the
liquidation of securities' positions in the portfolio with resultant
transactions costs. The stock index underlying an option or futures contract
assigns weighted values to the stocks involved in the index, and the value of
the index fluctuates with changes in the market values of the stocks so
included.
A futures contract on fixed income securities requires the seller to
deliver, and the purchaser to accept delivery of, a stated quantity of a given
type of fixed income security for a fixed price at a specified time in the
future. A futures contract or option on a stock index provides for the making
and acceptance of a cash settlement equal to the change in value of a
hypothetical portfolio of stocks between the time the contract is entered into
and the time it is liquidated, times a fixed multiplier. Futures contracts may
be traded domestically only on exchanges which have been designated as
"contract markets" by the Commodity Futures Trading Commission ("CFTC"), such
as the Chicago Board of Trade. All transactions are settled through the
clearing house of the contract market, which acts as the guarantor of the
performance of each party to all futures contracts cleared.
An option on a futures contract provides the purchaser with the right, but
not the obligation, to enter into a "long" position in the underlying futures
contract (in the case of a call option on a futures contract), or a "short"
position in the underlying futures contract (in the case of a put option on a
futures contract), at a fixed price up to a stated expiration date. Upon
exercise of the option by the holder, the contract market clearing house
establishes a corresponding short position for the writer of the option, in
the case of a call option, or a corresponding long position in the case of a
put option. In the event that an option is exercised, the parties are subject
to all of the risks associated with the trading of futures contracts, such as
payment of margin deposits.
Options on futures contracts are traded on the same contract markets as the
underlying futures contracts, subject to the performance guarantee of the
contract market clearing house. A futures contract or an option on a futures
contract may be closed out prior to maturity or expiration by entering into a
liquidating transaction in the same instrument on the contract market on which
the original position was established.
Unlike a Fund purchasing or selling a security, no price is paid or received
by a Fund upon the purchase or sale of a futures contract. Initially, a Fund
will be required to deposit with the Fund's custodian in the broker's name an
amount of cash or U.S. Treasury bills equal to approximately 5% of the
contract amount. This amount is known as "initial margin." The nature of
initial margin in futures transactions is different from that of margin in
security transactions in that futures contract margin does not involve the
borrowing of funds by the customer to finance the transactions. Rather, the
initial margin is in the nature of a performance bond or good faith deposit on
the contract which is returned to a Fund upon termination of the futures
contract assuming all contractual obligations have been satisfied. Subsequent
payments, called maintenance margin, to and from the broker, will be made on a
daily or intraday basis as the price of the underlying instrument or stock
index fluctuates making the long and short positions in the futures contract
more or less valuable, a process known as mark to market. For example, when a
Fund has purchased a stock index futures contract and the price of the
underlying stock index has risen, that position will have increased in value
and the Fund will receive from the broker a variation margin payment equal to
that increase in value. Conversely, where a Fund has purchased a stock index
futures contract and the price of the underlying stock index has declined, the
position would be less valuable and the Fund would be required to make a
variation margin payment to the broker. At any time prior to expiration of the
futures contract, a Fund may elect to close the position by taking an opposite
position which will operate to terminate the Fund's position in the futures
contract. A final determination of margin is then made, additional cash is
required to be paid by or released to the Fund, and the Fund realizes a loss
or a gain.
Transactions in options, futures contracts and options on futures contracts
may increase a Fund's transaction costs and portfolio turnover rate and will
be initiated only when consistent with a Fund's investment objectives.
The trading of options, futures contracts and options on futures contracts
also involves risks, in addition to those set forth in the Prospectus. For
example, the trading of options on futures contracts entails the risk that
changes in the value of the underlying futures contract will not be fully
reflected in the value of the option. Further, the ability to profit from the
purchase of an option and liquidate the underlying futures contract, is
subject to the risks of margin payments and the availability of a liquid
market. With respect to options and options on futures contracts, the Funds
are subject to the risk of market movements between the time that the option
is exercised and the time of performance thereunder. In writing a covered call
option on a security or a stock index, the Funds also incur the risk that
changes in the value of the instruments used to cover the position will not
correlate precisely with changes in the value of the option or underlying the
index or instrument.
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<PAGE>
The exchanges on which options, futures contracts and options on futures
contracts are traded may impose limitations governing the maximum number of
positions on the same side of the market and involving the same underlying
instrument which may be held by a single investor, whether acting alone or in
concert with others (regardless of whether such contracts are held on the same
or different exchanges or held or written in one or more accounts or through
one or more brokers).
The opening of a futures position and the writing of an option are
transactions which involve substantial leverage. As a result, relatively small
movements in the price of the contract can result in substantial unrealized
gains or losses. Because the Funds will engage in transactions in options,
futures contracts and options on futures contracts on securities and indexes
of securities for hedging purposes only, any losses incurred in connection
with these transactions should, if the hedging strategy is successful, be
offset by increases in the value of securities or other assets held by the
Funds or decreases in the prices of securities or other assets the Fund
intends to acquire. Were a Fund to write options on securities or options on
stock indexes for other than hedging purposes, the margin requirements
associated with such transactions could expose the Fund to greater risk.
Regulations of the CFTC require that a Fund enter into transactions in
futures contracts and options on futures contracts for hedging purposes only
or otherwise to limit its initial futures margins and related option premiums
paid to an amount not to exceed 5% of the value of the Fund's assets, in order
to assure that the Fund is not deemed to be a "commodity pool" and the
Investment Company is not a "commodity pool operator" as defined in CFTC
regulations.
INVESTMENT RESTRICTIONS
The following investment restrictions are fundamental policies and may not
be changed without the approval of a majority of the outstanding voting shares
of the affected Fund. None of the Funds will:
1. purchase or sell options or futures except those listed on a domestic
exchange;
2. trade in foreign exchange, or invest in securities of foreign issuers
if at the time of acquisition more than 20% of its total assets, taken at
market value at the time of the investment, would be invested in such
securities (see "Foreign Securities");
3. make an investment in order to exercise control of management over a
company (either singly or together with other Funds);
4. underwrite the securities of other companies, including purchasing
securities that are restricted under the Securities Act of 1933 ("1933
Act") or rules or regulations issued under the 1933 Act (restricted
securities cannot be sold publicly until they are registered under the 1933
Act);
5. make short sales, except when the Fund has, by reason of ownership of
other securities, the right to obtain securities of equivalent kind and
amount that will be held so long as they are in a short position,
6. purchase commodities or commodity contracts;
7. with respect to at least 75% of the value of its total assets, invest
more than 5% of its total assets in the securities of any one issuer
(including repurchase agreements with any one bank), other than securities
issued or guaranteed by the United States Government or its agencies or
instrumentalities (see the caption entitled "The Money Market Fund" in the
Prospectus for more restrictive policies relating to that fund);
8. with respect to at least 75% of the value of its total assets,
purchase more than 10% of the outstanding voting securities of an issuer,
except that such restriction shall not apply to securities issued or
guaranteed by the United States Government or its agencies or
instrumentalities;
9. issue senior securities except that each Fund may borrow as described
in restriction 13 below (the issuance and sale of options and futures not
being considered the issuance of senior securities);
10. make an investment in an industry if that investment would make the
Fund's holding in that industry exceed 25% of the Fund's total assets,
except for the Bond Fund, the Short-Term Bond Fund and the Mid-Term Bond
Fund, each of which may invest up to 75% of its total assets in the
electric, gas and/or telephone utilities industries, as described under the
caption "Investment Objectives and Policies of the Funds--The Bond Fund,
the Short-Term Bond Fund and the Mid-Term Bond Fund" in the Prospectus;
11. purchase real estate or mortgages directly. The All America and
Aggressive Equity Funds may, however, buy shares of real estate investment
trusts listed on stock exchanges or reported on the National Association of
Securities Dealers Automated Quotations ("NASDAQ") system, and the Bond
Fund, the Short-Term Bond Fund and the Mid-Term Bond Fund may each buy
mortgage-backed debt issues;
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12. invest more than 5% of its total assets in the securities of any one
registered investment company. A Fund may not own more than 3% of an
investment company's outstanding voting securities, and total holdings of
investment company securities may not exceed 10% of the value of a Fund's
total assets;
13. purchase any security on margin or borrow money, except from banks
for temporary purposes, or pledge its assets unless to secure such
borrowing. The Funds may borrow money from or pledge their assets to banks
in order to transfer funds for various purposes, as required, without
interfering with the orderly liquidation of securities in their portfolios,
but not for leveraging purposes. Such borrowings may not exceed 5% of the
value of a fund's total assets at market value;
14. make loans, except loans of portfolio securities (not exceeding 30%
of the value of its total assets at market value), or loans through entry
into repurchase agreements (the purchase of publicly traded debt
obligations not being considered the making of a loan);
15. invest more than 10% of its total assets in repurchase agreements or
time deposits maturing in more than seven days or in portfolio securities
not readily marketable; or
16. purchase oil and gas interests, except that the Funds may purchase
securities of issuers that invest in oil or gas interests. The Money Market
Fund will not purchase equity securities, voting securities, local or state
government securities, or corporate debt or other than those types of
securities specifically mentioned in its investment objectives.
If a percentage restriction is adhered to at the time of investment, a later
increase or decrease in percentage beyond the specified limit resulting from a
change in values of portfolio securities or amount of net assets will not be
considered a violation.
MANAGEMENT OF THE INVESTMENT COMPANY
DIRECTORS AND OFFICERS
The Directors of the Investment Company consist of six individuals, four of
whom are not "interested persons" of the Investment Company as defined in the
Investment Company Act of 1940. The Directors of the Investment Company are
responsible for the overall supervision of the operations of the Investment
Company and perform the various duties imposed on the directors of investment
companies by the Investment Company Act of 1940. The Board of directors elects
officers of the Investment Company annually.
The Directors and Officers of the Investment Company and their principal
employment are as follows:
<TABLE>
<CAPTION>
POSITION HELD WITH PRINCIPAL OCCUPATIONS
NAME AND ADDRESS THE INVESTMENT COMPANY DURING PAST 5 YEARS
---------------- ---------------------- ------------------------------------------
<S> <C> <C>
Dolores J. Morrissey* Chairman of the Board, President and Chief Executive Officer of
666 Fifth Avenue President and Director the Adviser since June, 1994; Executive
New York, NY 10103 Vice President of the Adviser from
September 1993 until June, 1994. Executive
Vice President of Mutual of America Life
until January 1994.
Manfred Altstadt* Senior Executive Vice Senior Executive Vice President and Chief
666 Fifth Avenue President, Chief Financial Financial Officer since September 1993 and
New York, NY 10103 Officer, Treasurer and Director Director since May 1993 of the Adviser.
Senior Executive Vice President and Chief
Financial Officer of Mutual of America
Life and American Life since February
1992. Executive Vice President and Chief
Financial Officer of Mutual of America
Life from January 1991 to February 1992;
formerly Executive Vice President and
Treasurer of Mutual of America Life.
Peter J. Flanagan Director President of The Life Insurance Council of
551 Fifth Avenue New York.
New York, NY 10176
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
POSITION HELD WITH PRINCIPAL OCCUPATIONS
NAME AND ADDRESS THE INVESTMENT COMPANY DURING PAST 5 YEARS
---------------- ---------------------- ------------------------------------------
<S> <C> <C>
George J. Mertz Director Retired; formerly President of National
Wayne, NJ 07474 Industries for the Blind.
James J. Needham Director Business Consultant to corporations on
Bridgehampton, NY financial, planning and regulatory matters
during the past five years. Formerly
United States Ambassador to Japan,
Chairman of the New York Stock Exchange
and Commissioner of the Securities and
Exchange Commission.
Howard J. Nolan Director President and C.P.O., United Way of San
P.O. Box 898 Antonio and Bexar County.
San Antonio, TX 78293
Stephanie J. Kopp Executive Vice President and Executive Vice President and Corporate
666 Fifth Avenue Secretary Secretary since September 1993 of the
New York, NY 10103 Adviser. Executive Vice President and
Secretary of Mutual of America Life and
American Life.
Patrick A. Burns Senior Executive Vice President Senior Executive Vice President and
666 Fifth Avenue and General Counsel General Counsel since September 1993 of
New York, NY 10103 the Adviser. Senior Executive Vice
President and General Counsel of Mutual of
America Life and American Life since
February 1994. Prior thereto, Executive
Vice President and General Counsel of
Mutual of America Life and American Life.
</TABLE>
- -------
* Mr. Altstadt and Ms. Morrissey are "interested persons" within the
meaning of the 1940 Act.
The officers and directors of the Investment Company own none of its
outstanding shares. The Investment Company has no Audit Committee.
Pursuant to the terms of the Investment Advisory Agreement described under
the caption "Investment Advisory Arrangements", Mutual of America Capital
Management Corporation (the "Adviser"), as investment adviser, pays all
compensation of officers and employees of the Investment Company as well as
the fees of all directors of the Investment Company who are affiliated persons
of the Adviser or its affiliates. The fees payable by the Investment Company
to non-interested directors are $5,000 per year plus $750 per Board meeting
attended. During 1994, the non-interested directors of the Corporation
received the following compensation: Mr. Flanagan, $7,250; Mr. Mertz, $8,000;
Mr. Needham, $8,000; and Mr. Nolan, $8,000. Prior to November 3, 1993, Mutual
of America Life served as investment adviser to the Investment Company. The
obligations of Mutual of America Life were assumed by the Adviser on that date
(see "Investment Advisory Arrangements--Investment Adviser").
INVESTMENT ADVISORY ARRANGEMENTS
Investment Adviser. The Investment Company's investment adviser is Mutual of
America Capital Management Corporation (the "Adviser"), an indirect wholly-
owned subsidiary of Mutual of America Life. Prior to November 3, 1993, Mutual
of America Life was the investment adviser to the Investment Company, pursuant
to an investment advisory agreement between the Investment Company and Mutual
of America Life, as investment adviser.
Subject at all times to the supervision and approval of the Investment
Company's Board of Directors and except as discussed below under
"Subadvisers", the Adviser renders investment advisory services with respect
to the Money Market, All America, Equity Index, Bond, Short-Term Bond, Mid-
Term Bond, Composite and Aggressive Equity Funds in a manner consistent with
their stated investment policies, objectives and restrictions. In connection
therewith, the Adviser advises the
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<PAGE>
Investment Company as to what investments should be purchased and sold and
places orders for all such purchases and sales on behalf of the Investment
Company. The Adviser is a registered investment adviser.
Advisory Fees. As compensation for its investment advisory services to each
of the Funds of the Investment Company, the Adviser will receive a fee
calculated as a daily charge at the annual rates of .125% of the value of the
net assets in the Equity Index Fund; .25% of the value of the net assets in
the Money Market Fund; and .50% of the value of the net assets in the All
America, Bond, Short-Term Bond, Mid-Term Bond and Composite Funds; and .85% of
the value of the net assets in the Aggressive Equity Fund. The total amount of
Investment Advisory fees paid in 1993 by the Investment Company to Mutual of
America Life was $3,784,529, of which $165,185 was paid by the Money Market
Fund; $1,979,057 was paid by the All America Fund; $1,029,534 was paid by the
Bond Fund; and $610,753 was paid by the Composite Fund. The total amount of
Investment Advisory fees paid by the Investment Company in 1993 to Mutual of
America Life and the Adviser together (Mutual of America Life until November
3, 1993 and the Adviser thereafter) was $4,404,134, of which $103,003 was paid
by the Money Market Fund; $2,063,113 was paid by the All America Fund; $29,155
was paid by the Equity Index Fund; $1,208,012 was paid by the Bond Fund;
$7,009 was paid by the Short-Term Bond Fund; $75,860 was paid by the Mid-Term
Bond Fund; and $917,982 was paid by the Composite Fund. The total amount of
Investment Advisory fees paid in 1994 by the Investment Company to the Adviser
was $4,810,484, of which $119,452 was paid by the Money Market Fund;
$1,933,632 was paid by the All America Fund; $33,192 was paid by the Equity
Index Fund; $1,324,071 was paid by the Bond Fund; $11,466 was paid by the
Short-Term Bond Fund; $100,231 was paid by the Mid-Term Bond Fund; $1,140,308
was paid by the Composite Fund; and $148,132 was paid by the Aggressive Equity
Fund.
Advisory Agreement. The Investment Advisory Agreement (the "Advisory
Agreement") was last approved by a majority of the non-interested members of
the Investment Company's Board of Directors (the "non-interested directors")
on February 23, 1993, and by a majority vote of each Fund's shareholders on
April 13, 1993. Pursuant to an assumption agreement dated November 3, 1993,
the Adviser assumed the rights and duties of Mutual of America Life under the
investment advisory agreement. Supplements to the Advisory Agreement to permit
the Adviser to enter into subadvisory agreements for the All America Fund and
Aggressive Equity Fund were approved by a majority of the non-interested
directors on November 16, 1993. The supplement relating to the All America
Fund was approved by a majority vote of the Fund's shareholders on April 14,
1994, and the supplement relating to the Aggressive Equity Fund was approved
by a vote of the Fund's shareholders on May 1, 1995.
The Advisory Agreement terminates automatically in the event of its
assignment or, with respect to any Fund, upon 60 days' notice given by the
Investment Company's Board of Directors, by the Adviser or by majority vote
(as defined in the Investment Company Act of 1940 and the rules thereunder) of
the Fund's shares. Otherwise, the Advisory Agreement will continue in force
with respect to any Fund so long as its continuance is approved at least
annually by (i) a majority of the members of the Investment Company's Board of
Directors, or (ii) a majority vote (as defined in the Investment Company Act
of 1940 and the rules thereunder) of the Fund's Shareholders; provided that in
either event such continuance will also be approved by the vote of a majority
of directors who are not interested persons (as defined in the Investment
Company Act of 1940).
Under the Advisory Agreement, the Adviser agrees to provide investment
management services to the Investment Company. Such services include
performing investment research and evaluating pertinent economic, statistical
and financial data; consultation with the Investment Company's Board of
Directors and furnishing to the Investment Company's Board of Directors
recommendations with respect to the overall investment plan; implementation of
the overall investment plan, including carrying out decisions to acquire or
dispose of investments; management of investments; reporting to the Investment
Company's Board of Directors on a regular basis on the implementation of the
investment plan and the management of investments; maintaining all required
records; making arrangements for the safekeeping of assets; and providing
office space facilities, equipment, material and personnel necessary to
fulfill its obligations.
The Adviser is responsible for all expenses incurred in performing the
investment advisory services, including compensation of officers and payment
of office expenses, trading investment and investment management.
Each Fund will pay all other expenses incurred in its operation, including
brokers' commissions, transfer taxes and other fees relating to the Fund's
portfolio transactions, directors' fees and expenses, fees and expenses of its
independent certified public accountants and of its legal counsel, the cost of
the printing and mailing of semi-annual reports to shareholders, Proxy
Statements, Prospectuses, Prospectus Supplements and Statements of Additional
Information, the printing of registration statements, bank transaction charges
and custodian's fees, any proxy solicitors' fees and expenses, SEC filing
fees, any federal, state or local income or other taxes, any membership fees
of the Investment Company Institute and similar
9
<PAGE>
organizations, fidelity bond and directors' liability insurance premiums, as
well as any extraordinary expenses, such as indemnification payments or
damages awarded in litigation or settlements made. The Adviser voluntarily
reimburses or pays all of the expenses of the Funds other than advisory fees,
brokers' commissions, transfer taxes and other fees relating to the Funds'
portfolio transactions and paid all such expenses in 1994. For each of 1993,
and 1992, Mutual of America Life, the former adviser for the Funds, reimbursed
or paid all such expenses. The payment of expenses results in an increase to
each Fund's yield or total return. The Adviser may discontinue or modify its
policy of paying expenses of the Funds at any time.
The Subadvisers. With respect to the management of approximately 40% of the
assets allocated to the All America Fund (the "Active Assets"), the Adviser
engages subadvisory services of four subadvisers--Palley-Needelman Asset
Management, Inc. ("Palley-Needelman"), James Dravo Oelschlager, doing business
as Oak Associates ("Oak Associates"), Fred Alger Management, Inc. ("Alger
Management"), and Mitchell Hutchins Institutional Investors Inc. ("Mitchell
Hutchins"); and with respect to the management of the assets of the Aggressive
Growth Portfolio of the Aggressive Equity Fund, the Adviser engages
subadvisory services of C.J. Lawrence/Deutsche Bank Securities Corporation
("C.J. Lawrence") (each a "Subadviser", and together the "Subadvisers"). Each
Subadviser is registered as an investment adviser under the Investment
Advisers Act of 1940.
Each of the Subadvisers, with respect to the assets for which it acts as
subadviser, shall, subject to the supervision of the Adviser and the Board of
Directors of the Investment Company, render investment advisory services and
assume the obligations including research, making recommendations and regular
reports to the Board of Directors of the Investment Company, maintenance of
records, and providing all the office space, facilities, equipment, material
and personnel necessary to fulfill its obligations under the Subadvisory
Agreement.
Subadvisory Fees. Each of the Subadvisory Agreements provides that the
Adviser will pay to the Subadviser an amount calculated daily at the following
annual rates: Palley-Needelman, .30%; Oak Associates, .30%; Alger Management,
.45%; Mitchell Hutchins, .50%; and C.J. Lawrence, .50% of the first $15
million and .30% thereafter; of the value of the net assets for which the
Subadviser is providing investment advisory services.
The fees paid to the Subadvisers during 1994 were as follows: Palley-
Needelman, $43,165; Oak Associates, $38,206; Alger Management, $105,887;
Mitchell Hutchins, $61,950; and C.J. Lawrence, $38,537.
Subadvisory Agreements. The Subadvisory Agreements were approved by a
majority of the non-interested directors on February 22, 1994. The Subadvisory
Agreements with the Subadvisers for the All America Fund were approved by a
majority vote of the Fund's shareholders on April 14, 1994 and by a majority
vote of the Aggressive Equity Fund's shareholders on May 1, 1994.
Each agreement terminates automatically in the event of its assignment or
upon 60 days' notice given by the Investment Company's Board of Directors, by
the Adviser or by a majority vote (as defined in the Investment Company Act of
1940 and the rules thereunder) of the related Fund's shares. Otherwise, each
Subadvisory Agreement will continue in force so long as its continuance is
approved at least annually by (i) a majority of the members of the Investment
Company's Board of Directors, or (ii) a majority vote (as defined in the
Investment Company Act of 1940 and the rules thereunder) of the All America
Fund's shareholders; provided that in either event such continuance will also
be approved by the vote of a majority of directors who are not interested
persons (as defined in the Investment Company Act of 1940).
PORTFOLIO TRANSACTIONS AND BROKERAGE
The Adviser and each Subadviser are responsible for decisions to buy and
sell securities for the Funds of the Investment Company for which they provide
services as well as for selecting brokers and, where applicable, negotiating
the amount of the commission rate paid. As a general matter, the Adviser and
Subadvisers select broker-dealers which, in their best judgment, provide
prompt and reliable execution at favorable security prices and reasonable
commission rates. The Adviser and Subadvisers may place certain orders with
their affiliates, subject to the requirements of the 1940 Act.
During 1994, Mutual of America Securities Corporation, an affiliate of the
Adviser, acted as an introducing broker for certain securities transactions.
In connection with such activities, Mutual of America Securities Corporation
received $258,600, which represented approximately 15% of the total brokerage
commissions paid by the Investment Company and approximately 16% of the
aggregate dollars of transactions effected by the Investment Company. In
addition, C.J. Lawrence/Deutsche Bank Securities Corporation and Fred Alger &
Co., each an affiliate of a Subadviser, received brokerage commissions during
1994. C.J. Lawrence/Deutsche Bank Securities Corporation received $41,450 and
Alger & Co. received $54,590, which represented approximately 2.4% and 3.16%,
respectively, of the total brokerage commissions paid by the
10
<PAGE>
Investment Company and approximately 1.9% and 1.62%, respectively, of the
aggregate dollars of transactions effected by the Investment Company. When
purchasing or selling securities trading on the over-the-counter market, the
Adviser, and each Subadviser, will generally execute the transaction with a
broker engaged in making a market for such securities.
Brokerage commissions are negotiated, as there are no standard rates. All
brokerage firms provide the service of execution of the order made; some
brokerage firms also provide research and statistical data, and research
reports on particular companies and industries are customarily provided by
brokerage firms to large investors. In negotiating commissions, consideration
is given by the Adviser, and each Subadviser, to the use and value of the data
and to the quality of execution provided. The valuation of such data may be
judged with reference to a particular order or, alternatively, may be judged in
terms of its value to the overall management of the Investment Company.
The Adviser, and each Subadviser, will place orders with brokers providing
useful research and statistical data services if reasonable commissions can be
negotiated for the total services furnished even though lower commissions may
be available from brokers not providing such services. The Adviser, and each
Subadviser, uses these services in connection with all of its investment
activities, and some of the data or services obtained in connection with the
execution of transactions for the Investment Company may be used in managing
other investment accounts. Conversely, data or services obtained in connection
with transactions in other accounts may be used by the Adviser, and each
Subadviser, in providing investment advice to the Investment Company. To the
extent that the Adviser, and each Subadviser, uses research and statistical
data services so obtained, its expenses may be reduced and such data has
therefore been and is one of the factors considered by the Adviser, and each
Subadviser, in determining its fee for investment advisory services.
At times, transactions for the Investment Company may be executed together
with purchases or sales of the same security for other accounts of the Adviser
or a Subadviser. When making concurrent transactions for several accounts, an
effort is made to allocate executions fairly among them. Transactions of this
type are executed only when the Adviser, or a Subadviser, believes it to be in
the best interests of the affected Fund(s), as well as any other accounts
involved. However, the possibility exists that concurrent executions may work
out to the disadvantage of the Fund(s) involved.
PORTFOLIO TURNOVER
Each Fund has a different expected rate of portfolio turnover; however, rate
of portfolio turnover will not be a limiting factor when management of the
Investment Company deems it appropriate to purchase or sell securities for a
Fund.
The Money Market Fund will seek maximum return on its assets by trading to
take advantage of short-term market variations. For this reason, and because of
the short-term nature of the money market instruments that will be purchased by
the Fund, the Money Market Fund will probably have a high annual rate of
portfolio turnover that cannot be predicted (although the Money Market Fund may
be deemed not to have a calculable turnover rate for reporting purposes because
all or most of its portfolio securities are excluded under the method of
calculation of turnover rate prescribed by the Securities and Exchange
Commission).
Neither the Aggressive Equity Fund nor the Active Assets of the All America
Fund will hold all of its investments for an extended period so that the annual
rate of portfolio turnover of each is expected to average about 70%.
Since the Equity Index Fund and the Indexed Assets of the All America Fund
will each attempt to duplicate the investment results of the S&P 500 Index,
each is expected to have an annual portfolio turnover rate that is generally
lower than 50%.
The Bond Funds may realize short-term gains to the extent such realizations
are considered advantageous in light of existing market conditions. The annual
rate of portfolio turnover of the Bond Funds is not expected to average in
excess of 200%.
Since the types and proportions of the Composite Fund's assets are expected
to change frequently to reflect prevailing market conditions, no annual rate of
portfolio turnover can be predicted for the Fund. Within the Fund, it would be
expected that the annual rate of portfolio turnover for the equity securities
invested in the Fund would be similar to the annual rate of portfolio turnover
of the Aggressive Equity Fund and the Active Assets of the All America Fund,
and the annual rate of portfolio turnover for the publicly traded debt
securities invested in by the Fund would be similar to the annual rate of
portfolio turnover of the Bond Funds.
PURCHASE AND PRICING OF SECURITIES
As stated in the Prospectus, the Investment Company will offer and sell its
shares at each Fund's per share net asset value, which will be determined in
the manner set forth below.
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<PAGE>
The net asset value of the shares of each Fund (i.e., the sum of the value
of the securities held by that Fund plus any cash or other assets including
accrued expenses) is determined once daily by the Investment Adviser
immediately after the declaration of dividends, if any, and is determined as
of the time of the close of trading on the New York Stock Exchange on each day
during which such Exchange is open for trading, with the exception of the
Friday after Thanksgiving ("Valuation Day"). The net asset value per share of
each Fund for any Valuation Period (i.e., the period beginning on the close of
business on the preceding Valuation Day and ending on the close of business on
the next Valuation Day), is the amount obtained by multiplying the net asset
value per share as of the preceding Valuation Period by that Fund's Change
Factor (described below) for the period beginning on the close of business on
the preceding Valuation Day and ending on the close of business on the next
Valuation Day ("Valuation Period").
The Change Factor for each Fund for any Valuation Period is determined as:
(a) the ratio of (i) the net asset value of the Fund at the end of the
current Valuation Period, before any amounts are allocated to or withdrawn
from the Fund with respect to that Valuation Period, to (ii) the net asset
value of the Fund at the end of the preceding Valuation Period, after all
allocations and withdrawals were made for that period, divided by
(b) 1.00000 plus the component of the annual rate of the Investment
Adviser's fee against a Fund's assets for the number of days from the end
of the preceding Valuation Period to the end of the current Valuation
Period (see "Investment Advisory Arrangements").
The methods used to value the assets of each Fund are set forth in the
Prospectus.
YIELD AND PERFORMANCE INFORMATION
Performance information is computed separately for each Fund in accordance
with the formulas described below. At any time in the future, total return and
yields may be higher or lower than in the past and there can be no assurance
that any historical results will continue.
Yield of the Money Market Fund. The Money Market Fund calculates a seven-day
"current yield" (eight days when the seventh prior day has no net asset value
because the Investment Company is closed on that day) based on a hypothetical
shareholder account containing one share at the beginning of the seven-day
period. The return is calculated for the period by determining the net change
in the hypothetical account's value for the period, excluding capital changes.
The net change is divided by the share value at the beginning of the period to
give the base period return. This base period return is then multiplied by
365/7 to annualize the yield figure, which is carried to the nearest one-
hundredth of one percent.
Realized capital gains or losses and unrealized appreciation or depreciation
of the assets of the Money Market Fund are included in the hypothetical
account for the beginning of the period but changes during the period are not
included in the value for the end of the period. Values also reflect asset
charges (for advisory fees) as well as brokerage fees and other expenses.
Current yields will fluctuate daily. Accordingly, yields for any given
seven-day period do not necessarily represent future results. It should be
remembered that yield depends on the type, quality, maturities and rates of
return of the Money Market Fund's investments, among other factors. The Money
Market Fund yield does not reflect the cost of insurance and other insurance
company separate account charges. It also should not be compared to the yield
of money market funds made available to the general public because they may
use a different method to calculate yield. In addition, their yields are
usually calculated on the basis of a constant one dollar price per share and
they pay out earnings and dividends which accrue on a daily basis.
The following is an example of the calculation of the Money Market Fund's
yield for the eight-day period ended December 31, 1994. Yields may fluctuate
substantially from the example shown.
1. Value for December 31, 1994
2. Value for December 31, 1994 (exclusive of capital changes)
3. Net change equals Line 1 subtracted from Line 2
4. Base period return equals Line 3 divided by Line 1
5. Current yield equals Line 4 annualized (multiplied by 365/8)
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<PAGE>
Calculation of Total Return and Average Annual Total Return. Total Return
with respect to the shares of a Fund is a measure of the change in value of an
investment in a Fund over the period covered, which assumes that any dividends
or capital gains distributions are reinvested in that Fund's shares
immediately rather than paid to the investor in cash. The formula for Total
Return with respect to a Fund's shares used herein includes four steps: (1)
adding to the total number of shares purchased by a hypothetical $1,000
investment the number of shares which would have been purchased if all
dividends and distributions paid or distributed during the period had been
immediately reinvested; (2) calculating the value of the hypothetical initial
investment of $1,000 as of the end of the period by multiplying the total
number of shares on the last trading day of the period by the net asset value
per share on the last trading day of the period; (3) assuming redemption at
the end of the period; and (4) dividing this account value for the
hypothetical investor by the initial $1,000 investment. Average Annual Total
Return is measured by annualizing Total Return over the period.
Yield of the Bond Funds. Yield of the shares of the Bond Funds will be
computed by annualizing net investment income, as determined by the
Commission's formula, calculated on a per share basis, for a recent one-month
or 30-day period and dividing that amount by the net asset value per share of
the Fund on the last trading day of that period. Net investment income will
reflect amortization of any market value premium or discount of fixed income
securities (except for obligations backed by mortgages or other assets) over
such period and may include recognition of a pro rata portion of the stated
dividend rate of dividend paying portfolio securities. The Yield of the Fund
will vary from time to time depending upon market conditions, the composition
of the portfolio and operating expenses allocated to the Fund.
Performance Comparisons. Each Fund may from time to time include the Total
Return, the Average Annual Total Return and Yield of its shares in
advertisements or in information furnished to shareholders. The Money Market
Fund may also from time to time include the Yield and Effective Yield of its
shares in information furnished to shareholders. Any statements of a Fund's
performance will also disclose the performance of the respective separate
account issuing the Contracts.
Each Fund may from time to time also include the ranking of its performance
figures relative to such figures for groups of mutual funds categorized by
Lipper Analytical Services ("Lipper") as having the same or similar investment
objectives or by similar services that monitor the performance of mutual
funds. Each Fund may also from time to time compare its performance to average
mutual fund performance figures compiled by Lipper in Lipper Performance
Analysis. Advertisements or information furnished to present shareholders or
prospective investors may also include evaluations of a Fund published by
nationally recognized ranking services and by financial publications that are
nationally recognized such as Barron's, Business Week, CDA Technologies, Inc.,
Changing Times, Dow Jones Industrial Average, Financial Planning, Financial
World, Forbes, Fortune, Hulbert's Financial Digest, Institutional Investor,
Investors Daily, Money, Morningstar Mutual Funds, The New York Times,
Stanger's Investment Adviser, Value Line, The Wall Street Journal,
Wiesenberger Investment Company Service and USA Today.
The performance figures described above may also be used to compare the
performance of a Fund's shares against certain widely recognized standards or
indices for stock and bond market performance.
The Standard & Poor's Composite Index of 500 Stocks (the "S&P 500 Index") is
a market value-weighted and unmanaged index showing the changes in the
aggregate market value of 500 stocks relative to the base period 1941-43. The
S&P 500 Index is composed almost entirely of common stocks of companies listed
on the NYSE, although the common stocks of a few companies listed on the
American Stock Exchange or traded OTC are included. The 500 companies
represented include 400 industrial, 60 transportation and 50 financial
services concerns. The S&P 500 Index represents about 80% of the market value
of all issues traded on the NYSE.
The Lehman Brothers Government/Corporate Bond Index (the "Lehman
Government/Corporate Index") is a measure of the market value of approximately
5,300 bonds with a face value currently in excess of $1 million, which have at
least one year to maturity and are rated "Baa" or higher ("investment grade")
by a nationally recognized statistical rating agency.
The Salomon Brothers 1-3 Year Bond Index and Salomon Brothers 3-7 Year Bond
Index are comprised of the portion of the Salomon Brothers Broad Investment-
Grade Bond Index ("BIG Index") with the maturity indicated. The BIG Index
includes Treasury, Agency, mortgage and corporate securities. It is market-
capitalization weighted and includes all fixed-rate bonds with a maturity of
one year or longer and a minimum of $50 million amount outstanding at entry
which remain in the index until their amount falls below $25 million ($200
million for mortgage securities).
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<PAGE>
The Russell 2500 Index comprises the bottom 500 stocks in the Russell 1000
Index and all the stocks in the Russell 2000 Index and represents
approximately 11% of the total U.S. equity market capitalization. The largest
security in the index has a market value of roughly $1.3 billion.
The Wilshire Small Company Growth Index is composed of 1750 securities and
extends down to approximately the $100 million market capitalization level.
In reports or other communications to shareholders, the Investment Company
may also describe general economic and market conditions affecting the Funds
and may compare the performance of the Funds with (1) that of mutual funds
included in the rankings prepared by Lipper or similar investment services
that monitor the performance of insurance company separate accounts or mutual
funds, (2) IBC/Donoghue's Money Fund Report, (3) other appropriate indices of
investment securities and averages for peer universe of funds which are
described in this Statement of Additional Information, or (4) data developed
by the Adviser or any of the Subadvisers derived from such indices or
averages.
DESCRIPTION OF CORPORATE BOND RATINGS
Description of Corporate bond ratings of Moody's Investors Services, Inc.:
Aaa--Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt-edge". Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such
issues.
Aa--Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high-grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risks appear somewhat
larger than in Aaa securities.
A--Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements may
be present which suggest a susceptibility to impairment sometime in the
future.
Baa--Bonds which are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present
but certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics as
well.
Ba--Bonds which are rated Ba are judged to have speculative elements;
their future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.
B--Bonds which are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may
be small.
Caa--Bonds which are rated Caa are of poor standing. Such issues may be
in default or there may be present elements of danger with respect to
principal or interest.
Ca--Bonds which are rated Ca represent obligations which are speculative
in a high degree. Such issues are often in default or have other marked
shortcomings.
C--Bonds which are rated C are the lowest rated class of bonds and issues
so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the
modifier 3 indicates that the issue ranks in the lower end of its generic
rating category.
Description of corporate bond ratings of Standard & Poor's Corporation:
AAA--Debt rated AAA has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is very strong.
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<PAGE>
AA--Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in small degree.
A--Debt rated A has a strong capacity to pay interest and repay
principal, although it is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than debt in higher
rated categories.
BBB--Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher-rated
categories.
BB--B--CCC--CC--Debt rated BB, B, CCC and CC is regarded, on balance, as
predominantly speculative with respect to the issuer's capacity to pay
interest and repay principal in accordance with the terms of the
obligation. BB indicates the lowest degree of speculation and CC the
highest degree of speculation. While such debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions.
C--The rating C is reserved for income bonds on which no interest is
being paid.
D--Debt rated D is in default, and payment of interest and/or repayment
of principal is in arrears.
Plus (+) or Minus (-): The ratings from "AA" to "BB" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
INDEPENDENT AUDITORS
The financial statements included in this Statement of Additional
Information have been audited by Arthur Andersen LLP, independent public
accountants, as indicated in their report with respect thereto, and are
included herein in reliance upon the authority of said firm as experts in
giving said report.
LEGAL MATTERS
The legal validity of the shares described in the Prospectus has been passed
on by Patrick A. Burns, Esq., Senior Executive Vice President and General
Counsel of the Investment Company.
15
<PAGE>
CUSTODIAN
The Custodian of the Investment Company's Fund securities and other assets
is Morgan Guaranty Trust Company of New York, New York, New York 10006, except
that until on or about June 15, 1995, CoreStates Bank N.A., Philadelphia,
Pennsylvania, serves as Custodian of the securities and other assets of the
All America Fund.
DISTRIBUTION ARRANGEMENTS
The Investment Company sells its shares on a continuous basis only to the
Separate Accounts of the Insurance Companies. Such shares are sold at their
respective net asset values and without the imposition of a sales charge.
16
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
Economic expansion in 1994 was stronger than had been anticipated. The
Federal Reserve Board backed away from its accommodative stance and increased
short term interest rates six times in 1994 with five of these increases
occurring in the second half of the year. Long Treasury yields which had been
at 6.25% at the beginning of 1994 increased 150 basis points (1.50%) and the
spread between the two and thirty year issue narrowed to around 30 basis
points (.30%) by year end. Wage inflation was relatively low and unemployment
fell to under 6%. Fixed income markets were hard hit and the majority of
stocks listed on the exchanges declined.
The fixed income market is expected to show improvement in 1995 but the
equity market may continue to be volatile. If the U.S. dollar improves as
anticipated, that would encourage foreign investors to purchase U.S.
securities. There is potential for an improving bond market which coupled with
a possible capital gains tax decrease should benefit market performance.
We are pleased to provide you with the Annual Report of the Mutual of
America Investment Corporation for the year ended December 31, 1994. Shown
below are the total return figures for each of the Funds of the Mutual of
America Investment Corporation.
TWELVE MONTHS TO DECEMBER 31, 1994
<TABLE>
<S> <C>
Money Market Fund................................................... +4.1%
All America Fund(1)................................................. +3.7%
Equity Index Fund................................................... +1.5%
Bond Fund........................................................... -3.2%
Short-Term Bond Fund................................................ +1.4%
Mid-Term Bond Fund.................................................. -3.7%
Composite Fund...................................................... -3.0%
Aggressive Equity Fund(2)........................................... +6.0%
</TABLE>
- -------
(1) Prior to May 2, 1994 this Fund was known as the Stock Fund and had
different investment objectives. The total return figure reflects the
performance of this Fund from May 2, 1994 and is not annualized.
(2) The Fund commenced operations on May 2, 1994; total return figure shown is
not annualized.
The respective portfolios of each Fund, including financial statements are
presented in the pages which follow.
Your participation in these Funds is appreciated.
Sincerely,
/s/ Dolores J. Morrissey
Dolores J. Morrissey
Chairman of the Board and President,
Mutual of America Investment Corporation
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<PAGE>
THE MONEY MARKET FUND
The investment objective of the Money Market Fund is the realization of high
current income to the extent consistent with the maintenance of liquidity,
investment quality and stability of capital. The Fund will invest only in
money market instruments and other short-term debt securities. The Money
Market outperformed the Donoghue Money Market Average for 1994, as its
holdings were slightly shorter in a rising interest rate environment.
THE ALL AMERICA FUND
Effective May 2, 1994, the Stock Fund changed its name to the All America
Fund and changed its investment objectives. Approximately 60% of the fund
assets are invested in such a manner as to attempt to replicate the
performance of the S&P 500 Index, the "passive portion" of the Fund. The
remaining 40% is invested equally with four separate and distinctly different
subadvisors, the "active portion" of the portfolio. Assets are rebalanced on a
regular basis to retain the approximate 60/40 percent relationship between the
active and passive portions of the portfolio and equal allocation among the
four subadvisors.
The Fund's average annual total return has been 5.6% since its inception to
year-end which compares favorably to the Blended Index' average annual total
return of 4.4%.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
ALL AMERICA S&P 500/
FUND BLENDED INDEX
----------- -------------
<S> <C> <C>
01/85 10,000 10,000
12/85 14,286 13,157
12/86 16,012 15,553
12/87 17,450 16,357
12/88 18,984 19,056
12/89 23,702 25,045
12/90 23,309 24,246
12/91 26,930 31,653
12/92 29,979 34,084
12/93 33,659 37,499
5/94 32,917 36,722
12/94 34,190 38,601
</TABLE>
18
<PAGE>
THE EQUITY INDEX FUND
The investment objective of the Equity Index Fund is to provide investment
results which, to the extent practical, correspond to the price and yield
performance of publicly traded common stocks in the aggregate as represented by
the S&P 500 Index.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
EQUITY INDEX
FUND S&P 500
------------ -------
<S> <C> <C>
02/93 10,000 10,000
12/93 10,652 10,618
12/94 10,780 10,788
</TABLE>
19
<PAGE>
THE BOND FUND
This fund seeks a high level of total return consistent with preservation of
capital through investment in publicly traded debt securities. The Fund seeks
to realize its investment objectives through careful issue selection and, when
appropriate, active bond trading. The guidelines of this Fund require that at
least 80% of its assets be invested in bonds carrying one of the four highest
quality ratings of a recognized rating agency. At no time has the average
quality of the portfolio fallen below an "A" rating. The Fund invests across a
wide spectrum of bond maturities (i.e., l to 30 years) with the average
maturity of the portfolio usually ranging between 3 and 15 years. The Bond
Fund outperformed the Lehman Index by emphasizing yield and having maturities
close to that of the Index.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEAR HERE]
<TABLE>
<CAPTION>
BOND LEHMAN BROS. GOV'T
FUND CORP. BOND INDEX
------ ------------------
<S> <C> <C>
01/85 10,000 10,000
12/85 12,286 12,130
12/86 13,629 14,025
12/87 13,438 14,340
12/88 14,205 15,433
12/89 15,995 17,631
12/90 16,812 19,091
12/91 19,467 22,170
12/92 21,124 23,851
12/93 23,778 26,481
12/94 23,009 25,555
</TABLE>
20
<PAGE>
THE SHORT-TERM BOND FUND
The Short-Term Bond Fund maintains an average maturity between one and three
years. Its objectives are to achieve a high total return within this maturity
constraint, and to maintain principal value. Like the Bond Fund, at least 80%
of its assets must be investment grade. However, at no time during the period
did its average quality fall below AAA. The Fund may diversify its portfolio
across a broad spectrum of industries, but emphasized U.S. Government
securities in l994. The Short-Term Bond Fund with a net total return of l.4%
for the year outperformed the Salomon Brothers 1-3 Year Bond Index because the
average investment was slightly shorter than its index in a period of rising
rates.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEAR HERE]
<TABLE>
<CAPTION>
SHORT-TERM SALOMON BROTHERS
BOND FUND 1-3 YR BOND INDEX
---------- ------------------
<S> <C> <C>
02/93 10,000 10,000
12/93 10,449 10,563
12/94 10,600 10,627
</TABLE>
21
<PAGE>
THE MID-TERM BOND FUND
The average maturity of this Fund is between three and seven years.
Investment grade securities must be purchased with 80% of its assets and broad
industry diversification is permitted. The Mid-Term Bond Fund emphasized
Treasury securities during a period when corporate spreads were tightening.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEAR HERE]
<TABLE>
<CAPTION>
MID-TERM SALOMON BROTHERS
BOND FUND 3-7 YEAR BOND INDEX
--------- -------------------
<S> <C> <C>
02/93 10,000 10,000
12/93 10,800 10,983
12/94 10,401 10,690
</TABLE>
22
<PAGE>
COMPOSITE FUND
This is a balanced Fund which seeks to achieve a high level of total return
through appreciation of capital and current income. Long-term growth of
capital and increasing income is sought through investments in common stocks
and other equity-type securities. A high level of current income is sought
through investments in fixed income securities and money market instruments.
The proportion of assets invested in each type of security varies depending on
market conditions and outlook.
The return on the Composite Fund was impacted by the escalation in interest
rates during 1994 as well as by the relatively unfavorable equity market which
had a moderating impact on the equity portion's performance.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEAR HERE]
<TABLE>
<CAPTION>
50% S&P 500 INDEX/
COMPOSITE 50% LEHMAN BROS. GOV'T/
FUND CORP. BOND INDEX
--------- -----------------------
<S> <C> <C>
01/85 10,000 10,000
12/85 12,952 12,644
12/86 14,487 14,789
12/87 15,351 15,351
12/88 16,598 17,245
12/89 19,781 21,338
12/90 20,388 21,669
12/91 24,119 26,912
12/92 25,468 28,968
12/93 29,792 31,990
12/94 28,900 31,636
</TABLE>
23
<PAGE>
THE AGGRESSIVE EQUITY FUND
Effective May 2, 1994, the Aggressive Equity Fund commenced operations. The
goal of the Fund is to aggressively manage an equity portfolio which over time
will outperform the broad market averages. It is expected that the performance
of the Fund will be volatile, and over short periods of time, the market price
of the individual securities purchased by the Fund may fluctuate widely. The
Fund will attempt to moderate this volatility by investing 50% of the Fund
assets in an aggressive growth manner and 50% in an aggressive value manner.
Assets will be rebalanced on a regular basis to retain the approximate 50/50
percent relationship between the aggressive growth and aggressive value
portions of the Fund. As a result of the Fund's aggressive investment
objectives, the Fund's annualized total return since its inception to the end
of 1994 of 9.0% far exceeded the S&P's annualized return of 5.2%for the same
period.
GROWTH OF A $10,000 INVESTMENT
[GRAPH APPEAR HERE]
<TABLE>
<CAPTION>
AGGRESSIVE
EQUITY FUND S&P 500
----------- -------
<S> <C> <C>
05/94 10,000 10,000
12/94 10,597 10,344
</TABLE>
24
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets:
Investments at market value
(Cost:
Money Market Fund --
$81,355,715
All America Fund --
$365,569,985
Equity Index Fund --
$25,466,715
Bond Fund -- $261,410,088)
(Notes 1 and 3)........... $81,355,715 $376,972,112 $25,935,025 $244,521,038
Cash....................... 11,345 628,214 44,655 3,094
Interest and dividends
receivable................ 432 907,344 68,716 4,137,200
Receivable for securities
sold...................... -- 1,015,000 4,089 --
----------- ------------ ----------- ------------
Total Assets............... 81,367,492 379,522,670 26,052,485 248,661,332
Payable for securities
purchased................. -- 4,493,878 -- 8,150
----------- ------------ ----------- ------------
Net Assets................. $81,367,492 $375,028,792 $26,052,485 $248,653,182
=========== ============ =========== ============
Number of Shares
Outstanding (Note 4)...... 68,329,703 233,228,250 25,562,679 195,418,032
=========== ============ =========== ============
Net Asset Values, offering
and redemption price per
share..................... $1.19 $1.61 $1.02 $1.27
===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY
BOND FUND BOND FUND FUND FUND
---------- ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Assets:
Investments at market
value
(Cost:
Short-Term Bond Fund --
$2,359,274
Mid-Term Bond Fund --
$25,119,387
Composite Fund --
$241,623,186
Aggressive Equity
Fund -- $25,675,738)
(Notes 1 and 3)......... $2,318,004 $23,066,756 $230,801,162 $27,243,088
Cash..................... 80,425 85,190 -- 149,547
Interest and dividends
receivable.............. 28,443 576,474 2,054,710 20,303
Receivable for securities
sold.................... -- -- 3,809,294 463,218
---------- ----------- ------------ -----------
Total Assets............. 2,426,872 23,728,420 236,665,166 27,876,156
Payable for securities
purchased............... -- -- 1,877,464 1,097,114
Call options written, at
market value
(Premium received:
Composite Fund--
$1,899,996
Aggressive Equity Fund--
$166,289)............... -- -- 2,249,375 216,750
---------- ----------- ------------ -----------
Net Assets............... $2,426,872 $23,728,420 $232,538,327 $26,562,292
========== =========== ============ ===========
Number of Shares
Outstanding (Note 4).... 2,426,385 25,982,915 148,023,063 25,246,183
========== =========== ============ ===========
Net Asset Values,
offering and redemption
price per share......... $1.00 $0.91 $1.57 $1.05
===== ===== ===== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATING* RATE MATURITY AMOUNT COST
------- -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (100.0%):
AT&T Capital Corp............ A1/P1 5.67% 01/13/95 $1,830,000 $ 1,826,516
AT&T Capital Corp............ A1/P1 5.70 01/04/95 980,000 979,532
AT&T Credit Corp............. A1/P1 6.00 02/13/95 1,080,000 1,072,248
American Express Credit
Corp........................ A1/P1 5.85 01/30/95 3,000,000 2,985,858
Ameritech Corp............... A1+/P1 5.92 02/14/95 2,300,000 2,283,334
Canadian Wheat Board......... A1+/P1 5.95 01/03/95 3,000,000 2,999,003
Chevron Oil Finance.......... A1+/P1 6.00 02/27/95 3,350,000 3,318,159
Ciba-Geigy CP................ A1+/P1 5.75 01/03/95 2,170,000 2,169,303
Coca-Cola Co. ............... A1+/P1 5.75 01/09/95 3,800,000 3,795,137
Emerson Electric............. A1+/P1 5.75 01/06/95 3,550,000 3,547,154
Exxon Corp................... A1+/P1 5.55 01/03/95 3,000,000 2,999,069
Federal National Mortgage
Assn........................ Aaa 5.88 01/04/95 7,910,000 7,906,105
General Electric Capital
Corp........................ A1+/P1 5.98 02/02/95 2,490,000 2,476,707
GTE Florida Corp............. A1+/P1 5.85 01/17/95 3,635,000 3,625,546
GTE North Corp............... A1+/P1 5.85 01/27/95 3,000,000 2,987,321
Heinz (H.J.) Co.............. A1+/P1 5.90 01/23/95 2,330,000 2,321,556
Iowa Electric Light & Power
Co.......................... A1/P1 6.07 02/09/95 1,000,000 993,419
Kimberly Clark Corp. ........ A1+/P1 5.88 01/25/95 3,100,000 3,087,786
Minnesota Mining & Mfg. Co... A1+/P1 6.00 02/03/95 2,850,000 2,834,275
Motorola Credit Corp......... A1+/P1 5.93 01/12/95 1,080,000 1,078,034
Northern States Power........ A1+/P1 5.88 01/18/95 3,100,000 3,091,349
Pepsico, Inc................. A1/P1 5.80 01/19/95 3,640,000 3,629,425
PHH Corp. ................... A1/P1 6.00 01/18/95 2,290,000 2,283,494
Pitney Bowes Credit Corp..... A1+/P1 5.97 01/23/95 3,000,000 2,989,006
Pitney Bowes Credit Corp..... A1+/P1 5.95 02/13/95 735,000 729,772
Proctor & Gamble Co.......... A1+/P1 6.00 01/27/95 3,440,000 3,425,048
Smithkline Beecham Finance... A1+/P1 5.80 01/31/95 3,600,000 3,582,569
U S Leasing Capital Corp. ... A1/P1 5.95 01/05/95 3,000,000 2,998,007
Warner Lambert Co. .......... A1+/P1 5.85 01/23/95 1,530,000 1,524,502
Warner Lambert Co. .......... A1+/P1 5.90 02/15/95 1,830,000 1,816,481
-----------
TOTAL SHORT-TERM DEBT
SECURITIES
(Cost: $81,355,715) 100%..... $81,355,715
===========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investors
Service, Inc.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION:
COMMON STOCKS:
Abbott Laboratories..................................... 55,800 $ 1,820,475
Advanced Micro Devices, Inc. ........................... 7,600 189,050
Aetna Life & Casualty Co. .............................. 7,800 367,575
Ahmanson (H.F.) & Co. .................................. 8,100 130,613
Air Products & Chemicals Corp. ......................... 7,900 352,538
Airtouch Communications................................. 34,300 998,988
Alberto Culver Co. Class B.............................. 2,000 54,500
Albertson's, Inc. ...................................... 17,700 513,300
Alcan Aluminum.......................................... 15,600 395,850
Alco Standard Corp. .................................... 3,800 238,450
Alexander & Alexander Svcs., Inc. ...................... 3,000 55,500
Allergan, Inc. ......................................... 4,400 124,300
Allied Signal, Inc. .................................... 19,700 669,800
Alltel Corp. ........................................... 13,000 391,625
Aluminum Co. of America ................................ 6,200 537,075
Alza Corp. ............................................. 5,700 102,600
Amdahl Corp. ........................................... 8,000 88,000
Amerada Hess Corp. ..................................... 6,500 296,563
American Brands, Inc. .................................. 14,000 525,000
American Electric Power Co. ............................ 12,900 424,088
American Express Co. ................................... 35,500 1,047,250
American General Corp. ................................. 14,600 412,450
American Greetings Class A ............................. 5,200 140,400
American Home Products Corp. ........................... 21,300 1,336,575
American Intl Group, Inc. .............................. 22,000 2,156,000
American Stores Co. .................................... 9,900 266,063
Ameritech Corp. ........................................ 38,300 1,546,363
Amgen, Inc. ............................................ 9,300 548,700
Amoco Corp. ............................................ 34,600 2,045,725
Amp, Inc. .............................................. 7,300 531,075
AMR Corp. .............................................. 5,300 282,225
Andrew Corp. ........................................... 1,800 94,050
Anheuser Busch Cos., Inc. .............................. 18,400 936,100
Apple Computer, Inc. ................................... 8,200 319,800
Archer Daniels Midland Co. ............................. 35,850 739,406
Armco, Inc. ............................................ 7,300 48,363
Armstrong World Inds., Inc. ............................ 2,600 100,100
Asarco, Inc. ........................................... 2,900 82,650
Ashland, Inc. .......................................... 4,200 144,900
AT&T Corp. ............................................. 108,400 5,447,100
Atlantic Richfield Co. ................................. 11,200 1,139,600
Autodesk, Inc. ......................................... 3,200 126,800
Automatic Data Processing............................... 9,800 573,300
Avery Dennison Corp. ................................... 3,900 138,450
Avon Products, Inc. .................................... 4,900 292,775
Baker Hughes, Inc. ..................................... 9,800 178,850
Ball Corp. ............................................. 2,100 66,150
Bally Entertainment Corp. .............................. 3,300 20,213
Baltimore Gas & Electric Co. ........................... 10,300 227,888
Banc One Corp. ......................................... 28,400 720,650
Bank of Boston Corp. ................................... 7,400 191,475
BankAmerica Corp. ...................................... 25,900 1,023,050
Bankers Trust New York Corp. ........................... 5,500 304,563
Bard (C.R.), Inc. ...................................... 3,600 97,200
Barnett Banks, Inc. .................................... 6,800 260,950
Barrick Gold Corp. ..................................... 24,400 542,900
Bassett Furniture Inds. ................................ 1,000 28,500
Bausch & Lomb, Inc. .................................... 4,100 138,888
Baxter International, Inc. ............................. 19,700 556,525
Becton Dickinson & Co. ................................. 5,000 240,000
Bell Atlantic Corp. .................................... 30,400 1,512,400
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
BellSouth Corp. ........................................ 34,600 $ 1,872,725
Bemis Company........................................... 3,600 86,400
Beneficial Corp. ....................................... 3,600 140,400
Bethlehem Steel Corp. .................................. 8,600 154,800
Beverly Enterprises, Inc. .............................. 5,800 83,375
Biomet, Inc. ........................................... 8,000 112,000
Black & Decker Corp. ................................... 5,800 137,750
Block H & R, Inc. ...................................... 7,400 274,725
Boatmen's Bancshares, Inc. ............................. 7,300 198,013
Boeing Co. ............................................. 23,700 1,107,975
Boise Cascade Corp. .................................... 2,700 72,225
Briggs & Stratton Corp. ................................ 2,000 65,500
Bristol-Myers Squibb Co. ............................... 35,500 2,054,563
Brown Group, Inc. ...................................... 1,200 38,400
Brown-Forman Corp. ..................................... 4,800 146,400
Browning Ferris Inds., Inc. ............................ 13,600 385,900
Brunos, Inc. ........................................... 5,400 45,225
Brunswick Corp. ........................................ 6,600 124,575
Burlington Northern Corp. .............................. 6,200 298,375
Burlington Resources, Inc. ............................. 9,000 315,000
Campbell Soup Co. ...................................... 17,400 767,775
Capital Cities/ABC, Inc. ............................... 10,700 912,175
Carolina Power & Light Co. ............................. 11,200 298,200
Caterpillar, Inc. ...................................... 14,200 782,775
CBS, Inc. .............................................. 4,500 249,188
Centex Corp. ........................................... 2,200 50,050
Central & South West Corp. ............................. 13,200 298,650
Ceridian Corp. ......................................... 3,100 83,313
Champion International Corp. ........................... 6,500 237,250
Charming Shoppes, Inc. ................................. 7,200 47,700
Chase Manhattan Corp. .................................. 11,900 409,063
Chemical Banking Corp. ................................. 17,700 634,988
Chevron Corp. .......................................... 45,400 2,025,975
Chrysler Corp. ......................................... 24,700 1,210,300
Chubb Corp. ............................................ 6,100 471,988
CIGNA Corp. ............................................ 5,000 316,250
Cincinnati Milacron, Inc. .............................. 2,300 54,338
Cinergy Corp. .......................................... 9,692 226,551
Circuit City Stores, Inc. .............................. 6,700 149,075
Cisco Systems, Inc. .................................... 18,200 639,275
Citicorp................................................ 27,100 1,121,263
Clark Equipment Co. .................................... 1,200 65,100
Clorox Co. ............................................. 3,700 217,838
Coastal Corp. .......................................... 7,300 187,975
Coca-Cola Co. .......................................... 88,800 4,573,200
Colgate-Palmolive Co. .................................. 10,200 646,425
Columbia Gas System, Inc. .............................. 3,500 82,250
Columbia HCA Healthcare Corp. .......................... 25,000 912,500
Comcast Corp. Class A................................... 15,700 246,294
Community Psychiatric Centers........................... 3,000 33,000
Compaq Computer Corp. .................................. 18,000 711,000
Computer Assoc. Intl., Inc. ............................ 11,300 548,050
Computer Sciences Corp. ................................ 3,500 178,500
Conagra, Inc. .......................................... 17,300 540,625
Conrail, Inc. .......................................... 5,500 277,750
Consolidated Edison Co NY, Inc. ........................ 16,400 422,300
Consolidated Freightways, Inc. ......................... 2,500 55,938
Consolidated Natural Gas Co. ........................... 6,500 230,750
Continental Corp. ...................................... 3,900 74,100
Cooper Industries....................................... 8,000 273,000
Cooper Tire & Rubber Co. ............................... 5,800 137,025
Coors (Adolph) Class B.................................. 2,700 45,225
Corestates Financial Corp. ............................. 10,000 260,000
Corning, Inc. .......................................... 16,400 489,950
CPC International, Inc. ................................ 10,300 548,475
</TABLE>
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION (CONT'D)
Crane Co. .............................................. 2,100 $ 56,438
Cray Research, Inc. .................................... 1,800 28,350
Crown Cork & Seal Co., Inc. ............................ 6,200 234,050
CSX Corp. .............................................. 7,300 508,263
Cummins Engine, Inc. ................................... 2,900 131,225
Cyprus Amax Minerals Co. ............................... 6,400 167,200
Dana Corp. ............................................. 6,900 161,288
Data General Corp. ..................................... 2,500 25,000
Dayton Hudson Corp. .................................... 5,000 353,750
Dean Witter Discover & Co. ............................. 11,900 403,113
Deere & Co. ............................................ 6,000 397,500
Delta Air Lines, Inc. .................................. 3,500 176,750
Deluxe Corp. ........................................... 5,700 151,050
Detroit Edison Co. ..................................... 10,200 266,475
Dial Corp. ............................................. 6,400 136,000
Digital Equipment Corp. ................................ 10,600 352,450
Dillard Dept. Stores, Inc. ............................. 7,900 211,325
Dominion Resources, Inc. ............................... 11,800 421,850
Donnelley (R.R.) & Sons Co. ............................ 9,800 289,100
Dover Corp. ............................................ 4,000 206,500
Dow Chemical ........................................... 19,200 1,291,200
Dow Jones & Co., Inc. .................................. 6,900 213,900
Dresser Industries, Inc. ............................... 12,800 241,600
DSC Communications Corp. ............................... 7,800 279,825
Du Pont (E.I.) De Nemours............................... 47,400 2,666,250
Duke Power Co. ......................................... 14,300 545,188
Dun & Bradstreet Corp. ................................. 11,800 649,000
E-Systems, Inc. ........................................ 2,400 99,900
Eastern Enterprises..................................... 1,400 36,750
Eastman Chemical Co. ................................... 5,800 292,900
Eastman Kodak Co. ...................................... 23,200 1,107,800
Eaton Corp. ............................................ 5,300 262,350
Echlin, Inc. ........................................... 4,100 123,000
Echo Bay Mines, Ltd. ................................... 7,800 82,875
Ecolab, Inc. ........................................... 4,700 98,700
EG&G, Inc. ............................................. 3,800 53,675
Emerson Electric Co. ................................... 15,600 975,000
Engelhard Corp. ........................................ 6,700 149,075
Enron Corp. ............................................ 17,500 533,750
ENSERCH Corp. .......................................... 4,700 61,688
Entergy Corp. .......................................... 15,900 347,813
Exxon Corp. ............................................ 86,500 5,254,875
Federal Express Corp. .................................. 3,900 234,975
Federal Home Loan Mortgage.............................. 12,600 636,300
Federal National Mtge Assn. ............................ 19,000 1,384,625
Federal Paper Board Co. ................................ 2,900 84,100
First Chicago Corp. .................................... 6,500 310,375
First Data Corp. ....................................... 7,800 369,525
First Fidelity Bancorp. ................................ 6,600 296,175
First Interstate Bancorp. .............................. 5,600 378,700
First Mississippi Corp. ................................ 1,400 35,000
First Union Corp. ...................................... 11,900 492,363
Fleet Financial Group, Inc. ............................ 8,800 286,000
Fleetwood Enterprises, Inc. ............................ 3,200 60,000
Fleming Companies, Inc. ................................ 2,600 60,450
Fluor Corp. ............................................ 5,700 245,813
FMC Corp. .............................................. 2,500 144,375
Ford Motor Co. ......................................... 71,300 1,996,400
Foster Wheeler Corp. ................................... 2,500 74,375
FPL Group, Inc. ........................................ 13,300 467,163
Gannett, Inc. .......................................... 9,700 516,525
Gap, Inc. .............................................. 10,200 311,100
General Dynamics Corp. ................................. 4,400 191,400
General Electric Co. ................................... 118,300 6,033,300
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
General Mills, Inc. .................................... 11,000 $ 627,000
General Motors Corp. ................................... 53,200 2,247,700
General Re Corp. ....................................... 5,700 705,375
General Signal Corp. ................................... 3,300 105,188
Genuine Parts Co. ...................................... 7,700 277,200
Georgia Pacific Corp. .................................. 6,300 450,450
Giant Food, Inc. ....................................... 4,100 89,175
Giddings & Lewis, Inc. ................................. 2,400 35,400
Gillette Co. ........................................... 15,400 1,151,150
Golden West Financial Corp. ............................ 4,300 151,575
Goodrich (B.F.) Co. .................................... 1,800 78,075
Goodyear Tire & Rubber Co. ............................. 10,500 353,063
Grainger (W.W.), Inc. .................................. 3,500 202,125
Great Atl & Pac Tea Co.(A&P)............................ 2,700 48,938
Great Lakes Chemical Corp. ............................. 5,000 285,000
Great Western Financial Corp. .......................... 9,300 148,800
GTE Corp. .............................................. 66,600 2,022,975
Halliburton Co. ........................................ 7,900 261,688
Handleman Co. .......................................... 2,300 26,163
Harcourt General, Inc. ................................. 5,400 189,675
Harland (John H.) Co. .................................. 2,100 42,000
Harnischfeger Inds., Inc. .............................. 3,000 84,375
Harris Corp. ........................................... 2,800 119,000
Hartmarx Corp. ......................................... 2,300 13,513
Hasbro, Inc. ........................................... 6,100 178,425
Heinz (H.J.) Co. ....................................... 17,300 635,775
Helmerich & Payne, Inc. ................................ 1,700 43,563
Hercules Inc. .......................................... 2,800 323,050
Hershey Foods Corp. .................................... 6,000 290,250
Hewlett-Packard Co. .................................... 17,700 1,767,788
Hilton Hotels Corp. .................................... 3,300 222,338
Home Depot, Inc. ....................................... 31,400 1,444,400
Homestake Mining Co. ................................... 9,600 164,400
Honeywell, Inc. ........................................ 9,100 286,650
Household International, Inc. .......................... 7,600 282,150
Houston Industries, Inc. ............................... 9,100 324,188
Illinois Tool Works, Inc. .............................. 7,900 345,625
Inco, Ltd. ............................................. 8,100 231,863
Ingersoll Rand Co. ..................................... 7,300 229,950
Inland Steel, Inc. ..................................... 3,100 108,888
Intel Corp. ............................................ 28,200 1,801,275
Intergraph Corp. ....................................... 3,200 26,000
International Paper Co. ................................ 8,700 655,763
Interpublic Group of Comp. ............................. 5,300 170,263
Intl Business Machines Corp. ........................... 40,600 2,984,100
Intl Flavors & Fragrances............................... 7,800 360,750
ITT Corp. .............................................. 7,200 638,100
James River Corp. of VA ................................ 5,700 115,425
Jefferson-Pilot Corp. .................................. 3,400 176,375
Johnson & Johnson....................................... 44,800 2,452,800
Johnson Controls, Inc. ................................. 2,800 137,200
Jostens, Inc. .......................................... 3,200 59,600
K Mart Corp ............................................ 30,700 399,100
Kaufman & Broad Home Corp. ............................. 2,300 29,613
Kellogg Co. ............................................ 15,600 906,750
Kerr-McGee Corp. ....................................... 3,600 165,600
KeyCorp ................................................ 17,000 425,000
Kimberly Clark Corp. ................................... 11,200 565,600
King World Productions, Inc. ........................... 2,600 89,700
Knight-Ridder, Inc. .................................... 3,700 186,850
Kroger Corp. ........................................... 8,100 195,413
Lilly (Eli) & Co. ...................................... 20,400 1,338,750
Limited (The), Inc. .................................... 25,900 469,438
Lincoln National Corp. ................................. 6,600 231,000
Liz Claiborne, Inc. .................................... 5,500 92,813
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION (CONT'D)
Lockheed Corp. ......................................... 4,400 $ 319,550
Longs Drug Stores, Inc. ................................ 1,500 47,625
Loral Corp. ............................................ 5,800 219,675
Lotus Development Corp. ................................ 3,200 131,200
Louisiana Land & Exploration............................ 2,300 83,663
Louisiana-Pacific Corp. ................................ 8,600 234,350
Lowe's Companies, Inc. ................................. 11,000 382,250
Luby's Cafeteria, Inc. ................................. 1,800 40,275
M/A-Com, Inc. .......................................... 1,800 13,050
Mallinckrodt Group, Inc. ............................... 5,400 161,325
Manor Care, Inc. ....................................... 4,400 120,450
Marriott International, Inc. ........................... 7,600 213,750
Marsh & McLennan Cos., Inc. ............................ 5,100 404,175
Martin Marietta Corp. .................................. 6,700 297,313
Masco Corp. ............................................ 10,900 246,613
Mattel, Inc. ........................................... 12,400 311,550
Maxus Energy Corp. ..................................... 9,400 31,725
May Department Stores Co. .............................. 17,300 583,875
Maytag Corp. ........................................... 7,500 112,500
MBNA Corp. ............................................. 10,300 240,763
McDermott International, Inc. .......................... 3,700 91,575
McDonald's Corp. ....................................... 48,900 1,430,325
McDonnell Douglas Corp. ................................ 2,800 397,600
McGraw-Hill, Inc. ...................................... 3,500 234,063
MCI Communications Corp. ............................... 47,100 865,463
Mead Corp. ............................................. 4,100 199,363
Medtronic, Inc. ........................................ 8,000 445,000
Mellon Bank Corp. ...................................... 10,050 307,781
Melville Corp. ......................................... 7,300 225,388
Mercantile Stores, Inc. ................................ 2,600 102,700
Merck & Co., Inc. ...................................... 87,800 3,347,375
Meredith Corp. ......................................... 1,000 46,625
Merrill Lynch & Co., Inc. .............................. 13,600 486,200
Micron Technology, Inc. ................................ 6,800 300,050
Microsoft Corp. ........................................ 40,100 2,451,113
Millipore Corp. ........................................ 1,800 87,075
Minnesota Mining & Mfg. Co. ............................ 29,400 1,569,225
Mobil Corp. ............................................ 27,700 2,333,725
Monsanto Co. ........................................... 8,200 578,100
Moore Corp. Ltd. ....................................... 6,900 130,238
Morgan J.P. & Co. Inc .................................. 13,500 756,000
Morrison Knudsen Corp. ................................. 2,200 28,050
Morton International, Inc. ............................. 10,300 293,550
Motorola, Inc. ......................................... 40,400 2,338,150
NACCO Industries Class A................................ 600 29,025
Nalco Chemical Co. ..................................... 4,800 160,800
National City Corp. .................................... 9,700 250,988
National Education Corp. ............................... 2,100 8,663
National Medical Enterprises............................ 11,600 163,850
National Semiconductor Corp. ........................... 8,600 167,700
National Service Industries............................. 3,500 89,688
Nationsbank Corp. ...................................... 19,100 861,888
Navistar International Corp. ........................... 5,200 78,650
NBD Bancorp, Inc. ...................................... 11,200 308,000
New York Times Co. Class A.............................. 7,300 161,513
Newell Co. ............................................. 11,000 231,000
Newmont Mining Corp. ................................... 6,000 216,000
Niagara Mohawk Power Corp. ............................. 10,000 142,500
Nicor, Inc. ............................................ 3,700 84,175
Nike, Inc. Class B...................................... 5,200 388,050
NorAm Energy Corp. ..................................... 8,500 45,688
Nordstrom, Inc. ........................................ 5,700 239,400
Norfolk Southern Corp. ................................. 9,500 575,938
Northern States Power Co. .............................. 4,700 206,800
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Northern Telecom Ltd. .................................. 17,600 $ 587,400
Northrop Grumman Corp. ................................. 3,400 142,800
Norwest Corp. .......................................... 21,200 495,550
Novell, Inc. ........................................... 25,800 441,825
Nucor Corp. ............................................ 6,100 338,550
NYNEX Corp. ............................................ 29,300 1,076,775
Occidental Petroleum Corp. ............................. 21,700 417,725
Ogden Corp. ............................................ 3,300 61,875
Ohio Edison Co. ........................................ 10,600 196,100
Oneok, Inc. ............................................ 1,900 34,200
Oracle Systems Corp. ................................... 20,000 882,500
Oryx Energy Co. ........................................ 6,800 80,750
Oshkosh B'Gosh, Inc. Cl A............................... 1,000 14,000
Outboard Marine Corp. .................................. 1,400 27,475
Owens-Corning Fiberglass................................ 3,000 96,000
Paccar, Inc. ........................................... 2,700 119,475
Pacific Enterprises..................................... 5,700 121,125
Pacific Gas & Electric Co. ............................. 31,000 755,625
Pacific Telesis Group................................... 29,500 840,750
PacifiCorp.............................................. 19,600 355,250
Pall Corp. ............................................. 8,000 150,000
Panhandle Eastern Corp. ................................ 8,400 165,900
Parker Hannifin Corp. .................................. 3,400 154,700
Peco Energy Co. ........................................ 15,400 377,300
Penney J.C. Co., Inc. .................................. 16,400 731,850
Pennzoil Co. ........................................... 3,200 141,200
Peoples Energy Corp. ................................... 2,400 62,700
Pep Boys-Manny Moe & Jack............................... 4,300 133,300
Pepsico, Inc. .......................................... 55,200 2,001,000
Perkin-Elmer Corp. ..................................... 3,100 79,438
Pet, Inc. .............................................. 7,100 140,225
Pfizer, Inc. ........................................... 22,300 1,722,675
Phelps Dodge Corp. ..................................... 4,900 303,188
Phillip Morris Cos., Inc. .............................. 59,700 3,432,750
Phillips Petroleum Co. ................................. 18,200 596,050
Pioneer Hi-Bred Intl, Inc. ............................. 6,200 213,900
Pitney Bowes, Inc. ..................................... 11,000 349,250
Pittston Services Group................................. 2,900 76,850
Placer Dome, Inc. ...................................... 16,600 361,050
PNC Bank Corp. ......................................... 16,300 344,338
Polaroid Corp. ......................................... 3,300 107,250
Potlatch Corp. ......................................... 2,000 74,500
PPG Industries, Inc. ................................... 14,800 549,450
Praxair, Inc. .......................................... 9,400 192,700
Premark International, Inc. ............................ 4,400 196,900
Price/Costco Inc. ...................................... 15,300 196,988
Proctor & Gamble Co. ................................... 47,600 2,951,200
Promus Companies, Inc. ................................. 7,100 220,100
Providian Corp. ........................................ 6,900 213,038
Public Svc Enterprise Group............................. 17,000 450,500
Pulte Corp. ............................................ 1,900 43,700
Quaker Oats Co. ........................................ 9,400 289,050
Ralston Purina Co. ..................................... 7,000 312,375
Raychem Corp. .......................................... 3,000 106,875
Raytheon Co. ........................................... 9,400 600,425
Reebok International Ltd. .............................. 5,700 225,150
Reynold's Metals Co. ................................... 4,300 210,700
Rite-Aid Corp. ......................................... 6,000 140,250
Roadway Services, Inc. ................................. 2,700 153,225
Rockwell International Corp. ........................... 15,300 546,975
Rohm & Haas Co. ........................................ 4,700 268,488
Rollins Environmental Services.......................... 4,200 20,475
Rowan Cos., Inc. ....................................... 5,800 35,525
Royal Dutch Petroleum Co. .............................. 37,300 4,009,750
Rubbermaid, Inc. ....................................... 11,300 324,875
</TABLE>
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION (CONT'D)
Russell Corp. .......................................... 2,800 $ 87,850
Ryan's Family Steak Houses Inc.......................... 3,700 27,750
Ryder System, Inc. ..................................... 5,400 118,800
Safeco Corp. ........................................... 4,400 228,800
Safety Kleen Corp. ..................................... 4,000 59,000
Salomon, Inc. .......................................... 7,400 277,500
Santa Fe Energy Res., Inc. ............................. 6,300 50,400
Santa Fe Pacific Corp. ................................. 13,000 227,500
Sante Fe Pacific Gold Corp. ............................ 16,400 211,150
Sara Lee Corp. ......................................... 33,300 840,825
Scecorp................................................. 31,200 456,300
Schering Plough......................................... 13,400 991,600
Schlumberger, Ltd. ..................................... 16,900 851,338
Scientific-Atlanta, Inc. ............................... 5,200 109,200
Scott Paper Co. ........................................ 5,200 359,450
Seagram, Ltd. .......................................... 25,900 764,050
Sears Roebuck & Co. .................................... 24,500 1,127,000
Service Corp. International............................. 6,000 166,500
Shared Medical Systems Corp. ........................... 1,600 52,400
Shawmut National Corp. ................................. 8,200 134,275
Sherwin-Williams Co. ................................... 6,000 198,750
Shoney's, Inc. ......................................... 2,900 36,975
Sigma Aldrich Corp. .................................... 3,000 99,000
Skyline Corp. .......................................... 800 15,400
Snap-On, Inc. .......................................... 3,000 99,750
Sonat, Inc. ............................................ 6,100 170,800
Southern Co. ........................................... 45,200 904,000
Southwestern Bell Corp. ................................ 41,900 1,691,713
Southwest Airlines...................................... 10,000 167,500
Springs Industries, Inc. Cl A........................... 1,200 44,400
Sprint Corp. ........................................... 24,100 665,763
SPX, Inc. .............................................. 900 14,963
St. Jude Medical, Inc. ................................. 3,200 127,200
St. Paul Companies (The)................................ 5,900 264,025
Stanley Works........................................... 3,100 110,825
Stone Container Corp. .................................. 6,300 108,675
Stride Rite Corp. ...................................... 3,500 38,938
Sun Co., Inc. .......................................... 7,400 212,750
Sun Microsystems, Inc. ................................. 6,600 234,300
Suntrust Banks, Inc. ................................... 8,500 405,875
Supervalu, Inc. ........................................ 5,000 122,500
Sysco Corp. ............................................ 12,800 329,600
Tandem Computers, Inc. ................................. 8,000 137,000
Tandy Corp. ............................................ 4,400 220,550
Tektronix, Inc. ........................................ 2,100 71,925
Tele-Communications, Inc. Cl A.......................... 39,200 852,600
Teledyne, Inc. ......................................... 3,900 78,488
Temple-Inland, Inc. .................................... 3,900 175,988
Tenneco, Inc. .......................................... 11,900 505,750
Texaco, Inc. ........................................... 18,100 1,083,687
Texas Instruments, Inc. ................................ 6,400 479,200
Texas Utilities Co. .................................... 15,700 502,400
Textron, Inc. .......................................... 6,200 312,325
The Travelers, Inc. .................................... 22,700 737,750
The Walt Disney Co. .................................... 37,400 1,725,075
Thomas & Betts Corp. ................................... 1,300 87,263
Time Warner, Inc. ...................................... 26,400 927,300
Times Mirror Co. ....................................... 9,000 282,375
Timken Co. ............................................. 2,200 77,550
TJX Cos., Inc. ......................................... 5,100 79,688
Torchmark Corp. ........................................ 5,100 177,863
Toys 'R' Us, Inc. ...................................... 19,000 579,500
Transamerica Corp. ..................................... 4,900 243,775
Transco Energy Co. ..................................... 2,900 48,213
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Tribune Co. ............................................ 4,700 $ 257,325
Trinova Corp. .......................................... 2,000 58,750
TRW, Inc. .............................................. 4,500 297,000
Tyco Labs Inc. ......................................... 5,200 247,000
U.S. Bancorp............................................ 6,900 156,113
U.S. Life Corp. ........................................ 1,600 55,800
U.S. Surgical Corp. .................................... 3,900 74,100
U.S. West, Inc. ........................................ 31,700 1,129,313
Unicom Corp. ........................................... 14,900 357,600
Unilever N.V. .......................................... 11,100 1,293,150
Union Camp Corp. ....................................... 4,900 230,913
Union Carbide Corp. .................................... 10,500 308,438
Union Electric Co. ..................................... 7,100 251,163
Union Pacific Corp. .................................... 14,300 652,438
Unisys Corp. ........................................... 11,900 102,638
United Healthcare Corp ................................. 11,900 536,988
United Technologies Corp. .............................. 8,800 553,300
Unocal Corp. ........................................... 16,900 460,525
Unum Corp. ............................................. 5,300 200,075
Upjohn Co. ............................................. 12,100 372,075
US Healthcare, Inc. .................................... 11,100 457,875
USAir Group, Inc. ...................................... 4,100 17,938
USF&G Corp. ............................................ 5,900 80,388
UST, Inc. .............................................. 14,200 394,050
USX Marathon Group ..................................... 20,000 327,500
USX-U.S. Steel Group, Inc. ............................. 5,300 188,150
V F Corp. .............................................. 4,500 218,813
Varity Corp. ........................................... 3,100 112,375
Viacom, Inc. ........................................... 45,070 1,149,003
W.R. Grace & Co. ....................................... 6,500 251,063
Wachovia Corp. ......................................... 11,900 383,775
Wal-Mart Stores, Inc. .................................. 154,100 3,274,625
Walgreen Co. ........................................... 7,700 336,875
Warner-Lambert Co. ..................................... 9,300 716,100
Wells Fargo & Co. ...................................... 3,800 551,000
Wendy's International, Inc. ............................ 7,000 100,625
Western Atlas, Inc. .................................... 3,600 135,450
Westinghouse Electric Corp. ............................ 24,700 302,575
Westvaco Corp. ......................................... 4,700 184,475
Weyerhaeuser Co. ....................................... 14,300 536,250
Whirlpool Corp. ........................................ 5,200 263,900
Whitman Corp. .......................................... 7,300 125,925
Williams Cos., Inc. .................................... 7,300 183,413
Winn-Dixie Stores, Inc. ................................ 5,200 267,150
WMX Technologies, Inc. ................................. 33,700 884,625
Woolworth Corp. ........................................ 9,200 138,000
Worthington Industries, Inc. ........................... 6,300 126,000
Wrigley Wm. Jr. Co. .................................... 8,100 399,938
Xerox Corp ............................................. 7,400 732,600
Yellow Corp. ........................................... 2,000 47,750
Zenith Electronics Corp. ............................... 3,100 36,038
Zurn Industries, Inc. .................................. 900 16,200
------------
TOTAL INDEX PORTION COMMON STOCKS
(Cost: $230,304,961) 61.8%............................. 233,103,472
------------
ACTIVE PORTION:
COMMON STOCKS:
Building Materials (0.7%):
Crompton & Knowles..................................... 6,900 113,850
Dexter Corp. .......................................... 54,000 1,174,500
Ferro Corp. ........................................... 42,200 1,007,525
Monsanto Co. .......................................... 7,100 500,550
------------
2,796,425
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
ACTIVE PORTION (CONT'D)
Consumer Cyclical (8.0%):
Ann Taylor Stores Corp.*............................... 29,000 $ 996,875
Apogee Enterprises..................................... 34,000 586,500
Arctco, Inc. .......................................... 32,500 629,688
Au Bon Pain*........................................... 39,000 624,000
Bassett Furniture Inds. ............................... 43,992 1,253,772
Brown Group, Inc. ..................................... 38,000 1,216,000
Callaway Golf Co. ..................................... 33,300 1,103,063
Cracker Barrel......................................... 49,000 906,500
Donnelley (R.R.) & Sons Co. ........................... 28,626 844,466
Eastman Kodak Co. ..................................... 18,555 886,001
Gannett, Inc. ......................................... 17,600 937,200
General Motors Corp. .................................. 22,200 937,950
Goodyear Tire & Rubber Co. ............................ 24,900 837,262
Guest Supply, Inc.*.................................... 44,800 851,200
Guilford Mills, Inc. .................................. 43,000 956,750
Home Depot, Inc. ...................................... 40,000 1,840,000
La-Z-Boy Chair Co. .................................... 40,500 1,290,938
Landry's Seafood Restaurant*........................... 49,800 1,413,075
Lone Star Steakhouse*.................................. 60,000 1,200,000
May Department Stores Co. ............................. 24,600 830,250
National Service Industries............................ 46,000 1,178,750
O'Charleys, Inc.* ..................................... 68,000 799,000
OfficeMax, Inc.*....................................... 46,500 1,232,250
Outback Steak House*................................... 46,000 1,081,000
Players International, Inc.*........................... 46,500 1,046,250
Pollo Tropical, Inc.*.................................. 25,000 240,625
Rock Bottom Restaurants, Inc.*......................... 20,000 410,000
Smith (A.O.) Corp. .................................... 53,000 1,298,500
Sports & Recreation, Inc.*............................. 20,000 515,000
Stanhome, Inc. ........................................ 37,500 1,185,937
Tommy Hilfiger Corp.*.................................. 5,000 225,625
V F Corp. ............................................. 15,000 729,375
------------
30,083,802
------------
Capital Goods/Construction (3.0%):
Boeing Co. ............................................ 10,029 468,856
Browning Ferris Inds., Inc. ........................... 16,000 454,000
Caterpillar, Inc. ..................................... 36,000 1,984,500
Duriron Co., Inc. ..................................... 49,000 869,750
EG&G, Inc. ............................................ 83,000 1,172,375
General Electric Co. .................................. 52,298 2,667,197
Graco, Inc. ........................................... 28,000 609,000
Martin Marietta Corp. ................................. 10,700 474,813
Masco Corp. ........................................... 38,500 871,063
Timken Co. ............................................ 30,000 1,057,500
USA Waste Services, Inc.* ............................. 75,000 853,125
------------
11,482,179
------------
Consumer Staples (5.1%):
Church & Dwight........................................ 43,000 774,000
CPC International, Inc. ............................... 500 26,625
Flowers Industries, Inc. .............................. 60,000 1,087,500
Forest Laboratories, Inc.
CL A*................................................. 40,000 1,865,000
Giant Food, Inc.*...................................... 56,000 1,218,000
Health Management Associates*.......................... 28,500 712,500
Integrated Health Services............................. 27,400 1,082,300
J.M. Smucker Co. Class A............................... 12,000 288,000
J.M. Smucker Co. Class B............................... 39,000 877,500
McCormick & Co., Inc. ................................. 13,000 237,250
Pepsico, Inc. ......................................... 22,938 831,503
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Pfizer, Inc. .......................................... 24,000 $ 1,854,000
Phillip Morris Cos., Inc. ............................. 14,900 856,750
Proctor & Gamble Co. .................................. 7,200 446,400
RJR Nabisco Holdings*.................................. 154,000 847,000
Ruddick Corp. ......................................... 20,500 392,063
Smithkline Beecham P L C............................... 27,689 948,347
SYBRON Corp.*.......................................... 24,500 845,250
Unilever N.V. ......................................... 4,500 524,250
United Healthcare Corp ................................ 30,000 1,353,750
Value Health*.......................................... 40,000 1,490,000
West Company, Inc. .................................... 17,600 484,000
------------
19,041,988
------------
Energy (1.1%):
Elf Aquitaine--ADR..................................... 24,601 867,185
Repsol S.A. ADR........................................ 30,475 830,444
Royal Dutch Petroleum Co. ............................. 8,100 870,750
USX-Marathon Group, Inc. .............................. 50,000 818,750
Vintage Petroleum, Inc. ............................... 17,500 295,313
YPF Sociedad Anonima SA "D" ADR........................ 21,318 455,672
------------
4,138,114
------------
Finance (4.4%):
Ahmanson (H.F.) & Co. ................................. 34,551 557,135
American General Corp. ................................ 24,000 678,000
American Intl. Group, Inc. ............................ 20,000 1,960,000
Aon Corp. ............................................. 21,000 672,000
Bank of New York, Inc. ................................ 16,433 476,557
Bankers Trust New York Corp. .......................... 20,300 1,124,112
Barnett Banks, Inc. ................................... 12,000 460,500
Chubb Corp. ........................................... 36,244 2,804,380
Citicorp .............................................. 49,000 2,027,375
Corestates Financial Corp. ............................ 33,900 881,400
First Financial Mgmt. Corp. ........................... 34,000 2,095,250
Marsh & McLennan Cos., Inc. ........................... 4,300 340,775
Nationsbank Corp. ..................................... 35,000 1,579,375
Providian Corp. ....................................... 27,375 845,203
------------
16,502,062
------------
Miscellaneous (1.1%):
Hanson PLC--ADR........................................ 47,738 859,284
Loewen Group........................................... 20,000 530,000
Minnesota Mining & Mfg. Co. ........................... 16,490 880,154
Raytheon Co. .......................................... 13,288 848,771
Tenneco, Inc. ......................................... 21,400 909,500
------------
4,027,709
------------
Technology (11.8%):
Adaptec, Inc.*......................................... 55,000 1,299,375
ADC Telecommunications, Inc.*.......................... 10,000 500,000
Altera Corp.*.......................................... 20,000 837,500
Bay Networks, Inc.*.................................... 117,000 3,451,500
Cheyenne Software, Inc.*............................... 165,000 2,186,250
Chipcom Corp.*......................................... 22,500 1,125,000
Cisco Systems, Inc.*................................... 80,000 2,810,000
DSC Communications Corp.*.............................. 40,000 1,435,000
Electroglas, Inc.*..................................... 36,000 1,201,500
EMC Corporation*....................................... 100,000 2,162,500
Glenayre Technologies, Inc.*........................... 21,500 1,241,625
Hewlett-Packard Co..................................... 5,500 549,313
Hunt Manufacturing Co. ................................ 47,100 635,850
</TABLE>
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
ACTIVE PORTION (CONT'D)
Informix Corp.*........................................ 44,800 $ 1,439,200
Intel Corp............................................. 32,000 2,044,000
Intl Business Machines Corp. .......................... 10,276 755,286
Maxim Integrated Products, Inc.*....................... 40,000 1,400,000
Merix Corp.*........................................... 72,500 1,839,687
Motorola, Inc. ........................................ 40,000 2,315,000
Newbridge Networks, Corp.*............................. 50,000 1,912,500
Nextel Communications*................................. 60,000 862,500
Parametric Technical Corp.*............................ 25,500 879,750
Pitney Bowes, Inc. .................................... 26,964 856,107
Quad Systems Corp.*.................................... 30,000 382,500
S3, Inc.*.............................................. 45,000 708,750
Sanmina Corp.*......................................... 60,000 1,635,000
Tech Data Corp*........................................ 45,000 765,000
Three Com Corp.*....................................... 82,000 4,228,125
Viewlogic Systems, Inc.*............................... 40,000 740,000
Western Digital Corp.*................................. 46,600 780,550
Xilinx, Inc.*.......................................... 21,000 1,244,250
Xircom, Inc.*.......................................... 15,000 266,250
------------
44,489,868
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Transportation & Service (0.5%):
Burlington Northern Corp. .............................. 17,711 $ 852,342
Landstar System, Inc.*.................................. 10,000 327,500
Ryder System, Inc. ..................................... 39,500 869,000
------------
2,048,842
------------
Utilities (1.2%):
AT&T Corp. ............................................. 16,628 835,557
Century Telephone Enterprises........................... 34,000 1,003,000
Pinnacle West Capital Corp. ............................ 41,900 827,525
Telefonos de Mexico SA.................................. 17,200 705,200
Telephone & Data Systems, Inc. ......................... 25,000 1,153,125
------------
4,524,407
------------
TOTAL ACTIVE PORTION COMMON STOCKS
(Cost: $130,531,780) 36.9%.............................. 139,135,396
------------
</TABLE>
- -------
*Non-income producing security.
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY VALUE COST
-------- -------- ---------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM SECURITIES:
Allomon Funding Corp................. 6.10% 01/04/95 $ 110,000 $ 109,944
Allomon Funding Corp................. 6.05 01/05/95 1,000,000 999,327
American Express Credit Corp......... 5.75 01/05/95 1,000,000 1,000,000
Bat Capital Corp..................... 6.00 01/03/95 880,000 879,706
Ford Motor........................... 5.05 01/04/95 1,095,000 1,094,539
Ford Motor........................... 5.77 01/05/95 315,000 315,000
ITT Financial........................ 5.85 01/06/95 335,000 334,728
------------
TOTAL SHORT-TERM SECURITIES
(Cost: $4,733,244) 1.3%........................................... 4,733,244
------------
TOTAL ACTIVE SECURITIES
(Cost: $135,265,024) 38.2%........................................ 143,868,640
------------
TOTAL INVESTMENTS
(Cost: $365,569,985) 100.0%....................................... $376,972,112
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS:
Abbott Laboratories...................................... 6,200 $ 202,275
Advanced Micro Devices, Inc. ............................ 800 19,900
Aetna Life & Casualty Co. ............................... 900 42,413
Ahmanson (H.F.) & Co. ................................... 900 14,513
Air Products & Chemicals Corp. .......................... 900 40,163
Airtouch Communications.................................. 3,800 110,675
Alberto Culver Co. Class B............................... 200 5,450
Albertson's, Inc. ....................................... 2,000 58,000
Alcan Aluminum........................................... 1,700 43,138
Alco Standard Corp. ..................................... 400 25,100
Alexander & Alexander Svcs., I........................... 300 5,550
Allergan, Inc. .......................................... 500 14,125
Allied Signal, Inc. ..................................... 2,200 74,800
Alltel Corp. ............................................ 1,300 39,163
Aluminum Co. of America.................................. 700 60,638
Alza Corp. .............................................. 600 10,800
Amerada Hess Corp. ...................................... 700 31,938
Amdahl Corp. ............................................ 900 9,900
American Brands, Inc. ................................... 1,600 60,000
American Electric Power Co. ............................. 1,400 46,025
American Express Co. .................................... 3,900 115,050
American General Corp. .................................. 1,600 45,200
American Greetings Class A............................... 600 16,200
American Home Products Corp. ............................ 2,400 150,600
American Intl Group, Inc. ............................... 2,500 245,000
American Stores Co. ..................................... 1,100 29,563
AT&T Corp. .............................................. 12,200 612,998
Ameritech Corp. ......................................... 4,300 173,613
Amgen, Inc. ............................................. 1,000 59,000
Amp, Inc. ............................................... 800 58,200
AMR Corp. ............................................... 600 31,950
Amoco Corp. ............................................. 3,800 224,675
Andrew Corp. ............................................ 200 10,450
Anheuser Busch Cos., Inc. ............................... 2,000 101,750
Apple Computer, Inc. .................................... 900 35,100
Archer Daniels Midland................................... 4,050 83,531
Armco, Inc. ............................................. 800 5,300
Armstrong World Inds., Inc. ............................. 300 11,550
Asarco, Inc. ............................................ 300 8,550
Ashland, Inc. ........................................... 500 17,250
Atlantic Richfield Co. .................................. 1,200 122,100
Autodesk, Inc. .......................................... 400 15,850
Automatic Data Processing................................ 1,100 64,350
Avery Dennison Corp. .................................... 400 14,200
Avon Products, Inc. ..................................... 600 35,850
Baker Hughes, Inc. ...................................... 1,100 20,075
Ball Corp. .............................................. 200 6,300
Bally Entertainment Corp. ............................... 400 2,450
Baltimore Gas & Electric Co. ............................ 1,100 24,338
Banc One Corp. .......................................... 3,200 81,200
Bank of Boston Corp. .................................... 800 20,700
BankAmerica Corp. ....................................... 2,900 114,550
Bankers Trust New York Corp. ............................ 600 33,225
Bard (C.R.), Inc. ....................................... 400 10,800
Barrick Gold Corp. ...................................... 2,700 60,075
Barnett Banks, Inc. ..................................... 800 30,700
Bassett Furniture Inds. ................................. 100 2,850
Bausch & Lomb, Inc. ..................................... 500 16,938
Baxter International, Inc. .............................. 2,200 62,150
Becton Dickinson & Co. .................................. 600 28,800
Bell Atlantic Corp. ..................................... 3,400 169,150
BellSouth Corp. ......................................... 3,800 205,675
Bemis Company............................................ 400 9,600
Beneficial Corp. ........................................ 400 15,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Bethlehem Steel Corp. ................................... 900 $ 16,200
Beverly Enterprises, Inc. ............................... 600 8,625
Biomet, Inc. ............................................ 900 12,600
Black & Decker Corp. .................................... 700 16,625
Block H & R, Inc. ....................................... 800 29,700
Boatmen's Bancshares, Inc. .............................. 800 21,700
Boeing Co. .............................................. 2,600 121,550
Boise Cascade Corp. ..................................... 300 8,025
Briggs & Stratton Corp. ................................. 200 6,550
Bristol-Myers Squibb Co. ................................ 3,900 225,713
Brown-Forman Corp. ...................................... 500 15,250
Brown Group, Inc. ....................................... 100 3,200
Browning Ferris Inds., Inc. ............................. 1,500 42,563
Brunos, Inc. ............................................ 600 5,025
Brunswick Corp. ......................................... 700 13,213
Burlington Northern Corp. ............................... 700 33,688
Burlington Resources, Inc. .............................. 1,000 35,000
CBS, Inc. ............................................... 500 27,688
CIGNA Corp. ............................................. 600 38,175
CPC International, Inc. ................................. 1,200 63,900
CSX Corp. ............................................... 800 55,700
Campbell Soup Co. ....................................... 1,900 83,838
Capital Cities/ABC, Inc. ................................ 1,200 102,300
Carolina Power & Light Co. .............................. 1,200 31,950
Caterpillar, Inc. ....................................... 1,600 88,200
Centex Corp. ............................................ 200 4,550
Central & South West Corp. .............................. 1,500 33,938
Ceridian Corp. .......................................... 300 8,063
Champion International Corp. ............................ 700 25,550
Charming Shoppes, Inc. .................................. 800 5,300
Chase Manhattan Corp. ................................... 1,300 44,688
Chemical Banking Corp. .................................. 2,000 71,750
Chevron Corp. ........................................... 5,100 227,588
Chrysler Corp. .......................................... 2,700 132,300
Chubb Corp. ............................................. 700 54,163
Cincinnati Milacron, Inc. ............................... 300 7,088
Cinergy Corp. ........................................... 1,109 25,923
Circuit City Stores, Inc. ............................... 700 15,575
Cisco Systems, Inc. ..................................... 2,000 70,250
Citicorp................................................. 3,000 124,125
Clark Equipment Co. ..................................... 100 5,425
Clorox Co. .............................................. 400 23,550
Coastal Corp. ........................................... 800 20,600
Coca-Cola Co. ........................................... 9,900 509,850
Colgate-Palmolive Co. ................................... 1,100 69,713
Columbia Gas System, Inc. ............................... 400 9,400
Columbia HCA Healthcare Corp. ........................... 2,800 102,200
Comcast Corp. Class A.................................... 1,800 28,238
Community Psychiatric Centers............................ 300 3,300
Compaq Computer Corp. ................................... 2,000 79,000
Computer Assoc. Intl., Inc. ............................. 1,300 63,050
Computer Sciences Corp. ................................. 400 20,400
Conagra, Inc. ........................................... 1,900 59,375
Conrail, Inc. ........................................... 600 30,300
Consolidated Edison Co NY, Inc. ......................... 1,800 46,350
Consolidated Freightways, Inc. .......................... 300 6,713
Consolidated Natural Gas Co. ............................ 700 24,850
Continental Corp. ....................................... 400 7,600
Cooper Industries........................................ 900 30,713
Cooper Tire & Rubber Co. ................................ 600 14,175
Coors (Adolph) Class B................................... 300 5,025
Corestates Financial Corp. .............................. 1,100 28,463
Corning, Inc. ........................................... 1,800 53,775
Crane Co. ............................................... 200 5,375
Cray Research, Inc. ..................................... 200 3,150
</TABLE>
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Crown Cork & Seal Co., Inc. ............................. 700 $ 26,425
Cummins Engine, Inc. .................................... 300 13,575
Cyprus Amax Minerals Co. ................................ 700 18,288
DSC Communications Corp. ................................ 900 32,288
Dana Corp. .............................................. 800 18,700
Data General Corp. ...................................... 300 3,000
Dayton Hudson Corp. ..................................... 600 42,450
Dean Witter Discover & Co. .............................. 1,300 44,038
Deere & Co. ............................................. 700 46,375
Delta Air Lines, Inc. ................................... 400 20,200
Deluxe Corp. ............................................ 600 15,900
Detroit Edison Co. ...................................... 1,100 28,738
Dial Corp. .............................................. 700 14,875
Digital Equipment Corp. ................................. 1,200 39,900
Dillard Dept. Stores, Inc. .............................. 900 24,075
The Walt Disney Co. ..................................... 4,200 193,725
Dominion Resources, Inc. ................................ 1,300 46,475
Donnelley (R.R.) & Sons Co. ............................. 1,100 32,450
Dover Corp. ............................................. 400 20,650
Dow Chemical............................................. 2,100 141,225
Dow Jones & Co., Inc. ................................... 800 24,800
Dresser Industries, Inc. ................................ 1,400 26,425
Du Pont (E.I.) De Nemours................................ 5,300 298,125
Duke Power Co. .......................................... 1,600 61,000
Dun & Bradstreet Corp. .................................. 1,300 71,500
EG&G, Inc. .............................................. 400 5,650
E-Systems, Inc. ......................................... 300 12,488
Eastern Enterprises...................................... 200 5,250
Eastman Chemical Co. .................................... 600 30,300
Eastman Kodak Co. ....................................... 2,600 124,150
Eaton Corp. ............................................. 600 29,700
Echlin, Inc. ............................................ 500 15,000
Echo Bay Mines, Ltd. .................................... 900 9,563
Ecolab, Inc. ............................................ 500 10,500
Emerson Electric Co. .................................... 1,700 106,250
Engelhard Corp. ......................................... 700 15,575
Enron Corp. ............................................. 1,900 57,950
ENSERCH Corp. ........................................... 500 6,563
Entergy Corp. ........................................... 1,800 39,375
Exxon Corp. ............................................. 9,600 583,200
FMC Corp. ............................................... 300 17,325
FPL Group, Inc. ......................................... 1,500 52,688
Federal Express Corp. ................................... 400 24,100
Federal Home Loan Mortgage............................... 1,400 70,700
Federal National Mtge Assn. ............................. 2,100 153,038
Federal Paper Board Co. ................................. 300 8,700
First Chicago Corp. ..................................... 700 33,425
First Data Corp. ........................................ 1,000 47,375
First Fidelity Bancorp. ................................. 700 31,413
First Interstate Bancorp. ............................... 600 40,575
First Mississippi Corp. ................................. 200 5,000
First Union Corp. ....................................... 1,300 53,788
Fleet Financial Group, Inc. ............................. 1,000 32,500
Fleetwood Enterprises, Inc. ............................. 400 7,500
Fleming Companies, Inc. ................................. 300 6,975
Fluor Corp. ............................................. 600 25,875
Ford Motor Co. .......................................... 7,900 221,200
Foster Wheeler Corp. .................................... 300 8,925
GTE Corp. ............................................... 7,400 224,775
Gannett, Inc. ........................................... 1,100 58,575
Gap, Inc. ............................................... 1,100 33,550
General Dynamics Corp. .................................. 500 21,750
General Electric Co. .................................... 13,200 673,200
General Mills, Inc. ..................................... 1,200 68,400
General Motors Corp. .................................... 5,900 249,275
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
General Re Corp. ........................................ 600 $ 74,250
General Signal Corp. .................................... 400 12,750
Genuine Parts Co. ....................................... 900 32,400
Georgia Pacific Corp. ................................... 700 50,050
Giant Food, Inc. ........................................ 500 10,875
Giddings & Lewis, Inc. .................................. 300 4,425
Gillette Co. ............................................ 1,700 127,075
Golden West Financial Corp. ............................. 500 17,625
Goodrich (B.F.) Co. ..................................... 200 8,675
Goodyear Tire & Rubber Co. .............................. 1,200 40,350
W.R. Grace & Co. ........................................ 700 27,038
Grainger (W.W.), Inc. ................................... 400 23,100
Great Atl & Pac Tea Co. (A&P)............................ 300 5,438
Great Lakes Chemical Corp. .............................. 600 34,200
Great Western Financial Corp. ........................... 1,000 16,000
Halliburton Co. ......................................... 900 29,813
Handleman Co. ........................................... 300 3,413
Harcourt General, Inc. .................................. 600 21,150
Harland (John H.) Co. ................................... 200 4,000
Harnischfeger Inds., Inc. ............................... 300 8,438
Harris Corp. ............................................ 300 12,750
Hartmarx Corp. .......................................... 300 1,763
Hasbro, Inc. ............................................ 700 20,475
Heinz (H.J.) Co. ........................................ 1,900 69,825
Helmerich & Payne, Inc. ................................. 200 5,125
Hercules Inc. ........................................... 300 34,613
Hershey Foods Corp. ..................................... 700 33,863
Hewlett-Packard Co. ..................................... 2,000 199,750
Hilton Hotels Corp. ..................................... 400 26,950
Home Depot, Inc. ........................................ 3,500 161,000
Homestake Mining Co. .................................... 1,100 18,838
Honeywell, Inc. ......................................... 1,000 31,500
Household International, Inc. ........................... 800 29,700
Houston Industries, Inc. ................................ 1,000 35,625
ITT Corp. ............................................... 800 70,900
Illinois Tool Works, Inc. ............................... 900 39,375
Inco, Ltd. .............................................. 900 25,763
Ingersoll Rand Co. ...................................... 800 25,200
Inland Steel, Inc. ...................................... 300 10,538
Intel Corp. ............................................. 3,200 204,400
Intergraph Corp. ........................................ 400 3,250
Intl Business Machines Corp. ............................ 4,500 330,750
Intl Flavors & Fragrances................................ 900 41,625
International Paper Co. ................................. 1,000 75,375
Interpublic Group of Comp. .............................. 600 19,275
James River Corp. of VA.................................. 600 12,150
Jefferson-Pilot Corp. ................................... 400 20,750
Johnson & Johnson........................................ 5,000 273,750
Johnson Controls, Inc. .................................. 300 14,700
Jostens, Inc. ........................................... 400 7,450
K Mart Corp.............................................. 3,400 44,200
Kaufman & Broad Home Corp. .............................. 300 3,863
Kellogg Co. ............................................. 1,700 98,813
Kerr-McGee Corp. ........................................ 400 18,400
KeyCorp.................................................. 1,900 47,500
Kimberly Clark Corp. .................................... 1,200 60,600
King World Productions, Inc. ............................ 300 10,350
Knight-Ridder, Inc. ..................................... 400 20,200
Kroger Corp. ............................................ 900 21,713
Lilly (Eli) & Co. ....................................... 2,300 150,938
Limited (The), Inc. ..................................... 2,900 52,563
Lincoln National Corp. .................................. 700 24,500
Liz Claiborne, Inc. ..................................... 600 10,125
Lockheed Corp. .......................................... 500 36,313
Longs Drug Stores, Inc. ................................. 200 6,350
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Loral Corp. ............................................. 600 $ 22,725
Lotus Development Corp. ................................. 400 16,400
Louisiana Land & Exploration............................. 300 10,913
Louisiana-Pacific Corp. ................................. 900 24,525
Lowe's Companies, Inc. .................................. 1,200 41,700
Luby's Cafeteria, Inc. .................................. 200 4,475
M/A-Com, Inc. ........................................... 200 1,450
MBNA Corp. .............................................. 1,200 28,050
MCI Communications Corp. ................................ 5,200 95,550
Mallinckrodt Group, Inc. ................................ 600 17,925
Manor Care, Inc. ........................................ 500 13,688
Marsh & McLennan Cos., Inc. ............................. 600 47,550
Marriott International, Inc. ............................ 900 25,313
Martin Marietta Corp. ................................... 700 31,063
Masco Corp. ............................................. 1,200 27,150
Mattel, Inc. ............................................ 1,400 35,175
Maxus Energy Corp. ...................................... 1,000 3,375
May Department Stores Co. ............................... 1,900 64,125
Maytag Corp. ............................................ 800 12,000
McDermott International, Inc. ........................... 400 9,900
McDonald's Corp. ........................................ 5,400 157,950
McDonnell Douglas Corp. ................................. 300 42,600
McGraw-Hill, Inc. ....................................... 400 26,750
Mead Corp. .............................................. 500 24,313
Medtronic, Inc. ......................................... 1,000 55,625
Mellon Bank Corp. ....................................... 1,050 32,156
Melville Corp. .......................................... 800 24,700
Mercantile Stores, Inc. ................................. 300 11,850
Merck & Co., Inc. ....................................... 9,800 373,625
Meredith Corp. .......................................... 100 4,663
Merrill Lynch & Co., Inc. ............................... 1,500 53,625
Microsoft Corp. ......................................... 4,500 275,063
Micron Technology, Inc. ................................. 800 35,300
Millipore Corp. ......................................... 200 9,675
Minnesota Mining & Mfg. Co. ............................. 3,300 176,138
Mobil Corp. ............................................. 3,100 261,175
Monsanto Co. ............................................ 900 63,450
Moore Corp. Ltd. ........................................ 800 15,100
Morgan J.P. & Co. Inc.................................... 1,500 84,000
Morrison Knudsen Corp. .................................. 200 2,550
Morton International, Inc. .............................. 1,100 31,350
Motorola, Inc. .......................................... 4,500 260,438
NBD Bancorp, Inc. ....................................... 1,200 32,850
NACCO Industries Class A................................. 100 4,838
Nalco Chemical Co. ...................................... 500 16,750
National City Corp. ..................................... 1,200 31,050
National Education Corp. ................................ 200 825
National Medical Enterprises............................. 1,300 18,363
National Semiconductor Corp. ............................ 1,000 19,500
National Service Industries.............................. 400 10,250
Nationsbank Corp. ....................................... 2,100 94,763
Navistar International Corp. ............................ 600 9,075
New York Times Co. Class A............................... 800 17,700
Newell Co. .............................................. 1,200 25,200
Newmont Mining Corp. .................................... 700 25,200
Niagara Mohawk Power Corp. .............................. 1,100 15,675
Nicor, Inc. ............................................. 400 9,100
Nike, Inc. Class B....................................... 600 44,775
NorAm Energy Corp. ...................................... 900 4,838
Nordstrom, Inc. ......................................... 600 25,200
Norfolk Southern Corp. .................................. 1,100 66,688
Northern States Power Co. ............................... 500 22,000
Northern Telecom Ltd. ................................... 2,000 66,750
Northrop Grumman Corp. .................................. 400 16,800
Norwest Corp. ........................................... 2,400 56,100
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Novell, Inc. ............................................ 2,900 $ 49,663
Nucor Corp. ............................................. 700 38,850
NYNEX Corp. ............................................. 3,300 121,275
Occidental Petroleum Corp. .............................. 2,400 46,200
Ogden Corp. ............................................. 300 5,625
Ohio Edison Co. ......................................... 1,200 22,200
Oneok, Inc. ............................................. 200 3,600
Oracle Systems Corp. .................................... 2,200 97,075
Oryx Energy Co. ......................................... 800 9,500
Oshkosh B'Gosh, Inc. Cl A................................ 100 1,400
Outboard Marine Corp. ................................... 200 3,925
Owens-Corning Fiberglass................................. 300 9,600
Peco Energy Co. ......................................... 1,700 41,650
PNC Bank Corp. .......................................... 1,800 38,025
PPG Industries, Inc. .................................... 1,600 59,400
Paccar, Inc. ............................................ 300 13,275
Pacific Enterprises...................................... 600 12,750
Pacific Gas & Electric Co. .............................. 3,400 82,875
Pacific Telesis Group.................................... 3,300 94,050
PacifiCorp............................................... 2,200 39,875
Pall Corp. .............................................. 900 16,875
Panhandle Eastern Corp. ................................. 900 17,775
Parker Hannifin Corp. ................................... 400 18,200
Penney J.C. Co., Inc. ................................... 1,800 80,325
Pennzoil Co. ............................................ 400 17,650
Peoples Energy Corp. .................................... 300 7,838
Pep Boys-Manny Moe & Jack................................ 500 15,500
Pepsico, Inc. ........................................... 6,100 221,125
Perkin-Elmer Corp. ...................................... 300 7,688
Pet, Inc. ............................................... 800 15,800
Pfizer, Inc. ............................................ 2,500 193,125
Phelps Dodge Corp. ...................................... 500 30,938
Phillip Morris Cos., Inc. ............................... 6,700 385,250
Phillips Petroleum Co. .................................. 2,000 65,500
Pioneer Hi-Bred Intl, Inc. .............................. 700 24,150
Pitney Bowes, Inc. ...................................... 1,200 38,100
Pittston Services Group.................................. 300 7,950
Placer Dome, Inc. ....................................... 1,800 39,150
Polaroid Corp. .......................................... 400 13,000
Potlatch Corp. .......................................... 200 7,450
Praxair, Inc. ........................................... 1,100 22,550
Premark International, Inc. ............................. 500 21,875
Price/Costco Inc. ....................................... 1,700 21,888
Proctor & Gamble Co. .................................... 5,300 328,600
Promus Companies, Inc. .................................. 800 24,800
Providian Corp. ......................................... 800 24,700
Public Svc Enterprise Group.............................. 1,900 50,350
Pulte Corp. ............................................. 200 4,600
Quaker Oats Co. ......................................... 1,000 30,750
Ralston Purina Co. ...................................... 800 35,700
Raychem Corp. ........................................... 300 10,688
Raytheon Co. ............................................ 1,000 63,875
Reebok International Ltd. ............................... 600 23,700
Reynold's Metals Co. .................................... 500 24,500
Rite-Aid Corp. .......................................... 700 16,363
Roadway Services, Inc. .................................. 300 17,025
Rockwell International Corp. ............................ 1,700 60,775
Rohm & Haas Co. ......................................... 500 28,563
Rollins Environmental Services........................... 500 2,438
Rowan Cos., Inc. ........................................ 700 4,288
Royal Dutch Petroleum Co. ............................... 4,200 451,500
Rubbermaid, Inc. ........................................ 1,300 37,375
Russell Corp. ........................................... 300 9,413
Ryan's Family Steak Houses Inc........................... 400 3,000
Ryder System, Inc. ...................................... 600 13,200
</TABLE>
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Scecorp.................................................. 3,500 $ 51,188
SPX, Inc. ............................................... 100 1,663
Safeco Corp. ............................................ 500 26,000
Safety Kleen Corp. ...................................... 400 5,900
St. Jude Medical, Inc. .................................. 400 15,900
St. Paul Companies (The)................................. 700 31,325
Salomon, Inc. ........................................... 800 30,000
Santa Fe Energy Res., Inc. .............................. 700 5,600
Sante Fe Pacific Gold Corp. ............................. 1,840 23,729
Santa Fe Pacific Corp. .................................. 1,400 24,500
Sara Lee Corp. .......................................... 3,700 93,425
Schering Plough.......................................... 1,500 111,000
Schlumberger, Ltd. ...................................... 1,900 95,713
Scientific-Atlanta, Inc. ................................ 600 12,600
Scott Paper Co. ......................................... 600 41,475
Seagram, Ltd. ........................................... 2,900 85,550
Sears Roebuck & Co. ..................................... 2,700 124,200
Service Corp. International.............................. 700 19,425
Shared Medical Systems Corp. ............................ 200 6,550
Shawmut National Corp. .................................. 900 14,738
Sherman-Williams Co. .................................... 700 23,188
Shoney's, Inc. .......................................... 300 3,825
Sigma Aldrich Corp. ..................................... 400 13,200
Skyline Corp. ........................................... 100 1,925
Snap-On, Inc. ........................................... 300 9,975
Sonat, Inc. ............................................. 700 19,600
Southern Co. ............................................ 5,000 100,000
Southwest Airlines....................................... 1,100 18,425
Southwestern Bell Corp. ................................. 4,700 189,763
Springs Industries, Inc. Cl A............................ 100 3,700
Sprint Corp. ............................................ 2,700 74,588
Stanley Works............................................ 300 10,725
Stone Container Corp. ................................... 700 12,075
Stride Rite Corp. ....................................... 400 4,450
Sun Co., Inc. ........................................... 800 23,000
Sun Microsystems, Inc. .................................. 700 24,850
Suntrust Banks, Inc. .................................... 900 42,975
Supervalu, Inc. ......................................... 600 14,700
Sysco Corp. ............................................. 1,400 36,050
TJX Cos., Inc. .......................................... 600 9,375
TRW, Inc. ............................................... 500 33,000
Tandem Computers, Inc. .................................. 900 15,413
Tandy Corp. ............................................. 500 25,063
Tektronix, Inc. ......................................... 200 6,850
Tele-Communications, Inc. Cl A........................... 4,400 95,700
Teledyne, Inc. .......................................... 400 8,050
Temple-Inland, Inc. ..................................... 400 18,050
Tenneco, Inc. ........................................... 1,300 55,250
Texaco, Inc. ............................................ 2,000 119,750
Texas Instruments, Inc. ................................. 700 52,413
Texas Utilities Co. ..................................... 1,800 57,600
Textron, Inc. ........................................... 700 35,263
Thomas & Betts Corp. .................................... 100 6,713
Time Warner, Inc. ....................................... 2,900 101,863
Times Mirror Co. ........................................ 1,000 31,375
Timken Co. .............................................. 200 7,050
Torchmark Corp. ......................................... 600 20,925
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Toys 'R' Us, Inc. ....................................... 2,100 $ 64,050
Transamerica Corp. ...................................... 500 24,875
Transco Energy Co. ...................................... 300 4,988
The Travelers, Inc. ..................................... 2,500 81,250
Tribune Co. ............................................. 500 27,375
Trinova Corp. ........................................... 200 5,875
Tyco International Ltd. ................................. 600 28,500
USX Corp................................................. 2,200 36,025
UST, Inc. ............................................... 1,600 44,400
Unum Corp. .............................................. 600 22,650
USF&G Corp. ............................................. 700 9,538
USX-U.S. Steel Group, Inc. .............................. 600 21,300
Unilever N.V. ........................................... 1,200 139,800
Unicom Corp. ............................................ 1,700 40,800
Union Camp Corp. ........................................ 500 23,563
Union Carbide Corp. ..................................... 1,200 35,250
Union Electric Co. ...................................... 800 28,300
Union Pacific Corp. ..................................... 1,600 73,000
Unisys Corp. ............................................ 1,300 11,213
United Healthcare Corp................................... 1,300 58,663
U.S. Bancorp............................................. 800 18,100
USAir Group, Inc. ....................................... 500 2,188
US Healthcare, Inc. ..................................... 1,200 49,500
U.S. Surgical Corp. ..................................... 400 7,600
U.S. West, Inc. ......................................... 3,500 124,688
United Technologies Corp. ............................... 1,000 62,875
Unocal Corp. ............................................ 1,900 51,775
Upjohn Co. .............................................. 1,300 39,975
U.S. Life Corp. ......................................... 200 6,975
V F Corp. ............................................... 500 24,313
Varity Corp. ............................................ 300 10,875
Viacom, Inc. ............................................ 3,104 126,211
WMX Technologies, Inc. .................................. 3,700 97,125
Wachovia Corp. .......................................... 1,300 41,925
Wal-Mart Stores, Inc. ................................... 17,200 365,500
Walgreen Co. ............................................ 900 39,375
Warner-Lambert Co. ...................................... 1,000 77,000
Wells Fargo & Co. ....................................... 400 58,000
Wendy's International, Inc. ............................. 800 11,500
Western Atlas, Inc. ..................................... 100 15,050
Westinghouse Electric Corp. ............................. 2,800 34,300
Westvaco Corp. .......................................... 500 19,625
Weyerhaeuser Co. ........................................ 1,600 60,000
Whirlpool Corp. ......................................... 600 30,450
Whitman Corp. ........................................... 800 13,800
Williams Cos., Inc. ..................................... 800 20,100
Winn-Dixie Stores, Inc. ................................. 600 30,825
Woolworth Corp. ......................................... 1,000 15,000
Worthington Industruies, Inc. ........................... 700 14,000
Wrigley Wm. Jr. Co. ..................................... 900 44,438
Xerox Corp............................................... 800 79,200
Yellow Corp. ............................................ 200 4,775
Zenith Electronics Corp. ................................ 300 3,488
Zurn Industries, Inc. ................................... 100 1,800
-----------
TOTAL INVESTMENTS
(Cost: $25,466,715) 100.0%.............................. $25,935,025
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
------ -------- ----------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government/Agencies (28.5%):
U.S. Treasury Bond.................... 10.38% 11/15/12 $28,000,000 $33,320,000
U.S. Treasury Bond.................... 7.63 11/15/22 15,000,000 14,465,625
U.S. Treasury Bond.................... 7.13 02/15/23 10,000,000 9,093,750
U.S. Treasury Callable Receipt........ 10.38 11/15/12 3,000,000 1,079,610
U.S. Treasury Certificates of Accrual. 10.38 11/15/12 19,750,000 7,107,433
Federal Home Loan Mortgage Corp. ..... 7.55 05/15/20 1,042,313 1,035,506
Federal Home Loan Mortgage Corp. ..... 8.50 02/15/21 3,500,000 3,486,665
-----------
69,588,589
-----------
Bank and Finance (25.4%):
Aristar, Inc. ........................ 8.88 08/15/98 2,000,000 2,021,600
BankAmerica Corp. .................... 7.75 07/15/02 2,500,000 2,364,285
British Gas Financial, Inc. .......... 8.75 03/15/98 3,000,000 3,039,680
CIT Group Holdings, Inc. ............. 8.75 04/15/98 2,000,000 2,015,702
Chase Manhattan Corp. ................ 7.50 12/01/97 5,000,000 4,867,950
Citicorp.............................. 10.75 12/15/15 5,994,000 6,326,697
Commercial Credit Corp. .............. 9.88 12/01/95 2,000,000 2,040,740
Equitable Resources, Inc. ............ 8.25 07/01/96 2,000,000 2,008,080
General Electric Capital Corp. ....... 8.75 05/21/07 7,500,000 7,768,335
General Motors Acceptance Corp. ...... 8.38 05/01/97 5,000,000 4,988,170
General Motors Acceptance Corp. ...... 7.88 03/04/97 2,500,000 2,459,163
Heller Financial, Inc. ............... 9.13 08/01/99 2,000,000 2,043,507
Household Finance Corp. .............. 9.25 02/15/95 2,000,000 2,005,302
International Lease Finance Corp. .... 8.35 10/01/98 3,000,000 2,990,910
Kemper Corp. ......................... 8.80 11/01/98 2,500,000 2,444,382
PacifiCorp............................ 8.57 02/01/96 1,000,000 1,009,030
Progressive Corp. of Ohio............. 10.00 12/15/00 1,500,000 1,581,440
Roosevelt Federal Savings & Loan
Assn. ............................... 10.13 04/15/18 2,000,000 2,096,285
Ryland Acceptance Corp. .............. 7.95 08/20/19 4,000,000 3,880,040
Sun America, Inc. .................... 9.00 01/15/99 4,000,000 4,057,700
-----------
62,008,998
-----------
Industrial (11.1%):
BP North America, Inc. ............... 9.88 03/15/04 2,000,000 2,192,168
Corning Glass Works................... 8.38 11/01/96 2,500,000 2,520,143
Du Pont (E.I.) De Nemours & Co. ...... 8.20 02/05/96 2,000,000 2,012,840
Fletcher Challenge Industries......... 9.00 09/15/99 2,000,000 2,051,448
Gannett, Inc. ........................ 5.85 05/01/00 3,500,000 3,142,437
General Motors Corp. ................. 9.75 05/15/99 1,500,000 1,528,878
Georgia Pacific Corp. ................ 10.13 05/15/00 750,000 756,985
Maytag Corp. ......................... 8.88 07/01/97 1,000,000 1,010,780
McKesson Corp. ....................... 8.63 02/01/98 1,000,000 1,014,596
Penske Truck Leasing Co. LP........... 8.25 11/01/99 3,000,000 2,955,570
Pepsico, Inc. ........................ 7.88 08/15/96 3,000,000 2,993,226
Sears Credit Account Trust............ 9.35 10/15/95 2,000,000 2,020,700
Union Pacific Corp. .................. 8.50 01/15/98 3,000,000 3,017,220
-----------
27,216,991
-----------
Miscellaneous (7.7%):
Connecticut Housing Finance Authority. 7.63 05/15/21 2,500,000 2,108,925
Republic of Iceland................... 6.13 02/01/04 5,000,000 4,276,645
Republic of Ireland................... 7.88 12/01/01 3,000,000 2,926,035
Republic of Ireland................... 7.13 07/15/02 2,000,000 1,865,188
State of California................... 8.15 09/01/01 1,000,000 979,970
Suffolk County NY..................... 5.80 11/01/04 4,000,000 3,314,160
Suffolk County NY..................... 5.88 11/01/05 4,000,000 3,285,160
-----------
18,756,083
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
Retail (2.6%):
Blockbuster Entertainment Corp. .... 6.63% 02/15/98 $ 2,500,000 $ 2,348,515
Dillard Dept. Stores, Inc. ......... 9.63 09/15/97 1,000,000 1,033,292
Nordstrom, Inc. .................... 8.88 02/15/98 1,500,000 1,529,585
Penney J.C. Co., Inc. .............. 10.00 10/15/97 1,500,000 1,565,793
------------
6,477,185
------------
Utilities (19.6%):
Connecticut Yankee Atomic Power..... 12.00 06/01/00 5,000,000 5,346,445
Big River Electric Coopertive....... 10.70 09/15/17 10,000,000 10,947,070
Big River Electric Coopertive....... 9.52 03/15/19 12,500,000 13,120,525
Houston Lighting & Power Co. ....... 8.63 01/15/96 2,000,000 2,015,192
Laclede Gas Co. .................... 8.50 11/15/04 2,000,000 2,017,630
Pacific Gas & Electric Co. ......... 8.75 01/01/01 2,000,000 2,024,842
Philadelphia Electric Co. .......... 7.13 08/15/23 5,000,000 4,245,595
Portland General Electric Co. ...... 8.88 11/28/95 2,000,000 2,021,840
Rhone-Poulenc S A................... 7.75 01/15/02 3,000,000 2,879,775
Rhone-Poulenc S A................... 6.75 10/15/99 2,500,000 2,331,908
Shell Canada Ltd. .................. 8.88 01/14/01 1,000,000 1,027,421
------------
47,978,243
------------
TOTAL LONG-TERM DEBT SECURITIES
(Cost: $248,915,139) 94.9%.......... 232,026,089
------------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (5.1%):
American Express Credit Corp. ...... 5.88 01/03/95 2,080,000 2,079,321
Cargill, Inc. ...................... 5.55 01/03/95 1,671,000 1,670,485
General Electric Capital Corp. ..... 5.80 01/04/95 5,250,000 5,247,458
U S Leasing Capital Corp. .......... 5.95 01/05/95 3,500,000 3,497,685
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $12,494,949) 5.1%............ 12,494,949
------------
TOTAL INVESTMENTS
(Cost: $261,410,088) 100.0%......... $244,521,038
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES:
U.S Government (56.5%):
U.S. Treasury Note.................... 4.63% 02/15/96 $ 100,000 $ 97,000
U.S. Treasury Note.................... 4.25 12/31/95 1,250,000 1,213,281
----------
1,310,281
----------
TOTAL INTERMEDIATE-TERM DEBT SECURITIES
(Cost: $1,351,254) 56.5%.............. 1,310,281
----------
<CAPTION>
DISCOUNT FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Treasury (43.5%):
U.S. Treasury Bills................... 6.00 05/04/95 130,000 127,291
U.S. Treasury Bills................... 5.93 05/11/95 900,000 880,432
----------
1,007,723
----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $1,008,020) 43.5%.............. 1,007,723
----------
TOTAL INVESTMENTS
(Cost: $2,359,274) 100.0%............. $2,318,004
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ----------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES:
U.S. Government (61.0%):
U.S. Treasury Note.................. 8.75% 08/12/00 $13,500,000 $14,061,090
-----------
Financial (5.2%):
American Express Credit Corp. ...... 6.13 06/15/00 500,000 451,040
General Motors Acceptance Corp. .... 8.38 05/01/97 250,000 249,408
Sun America, Inc. .................. 9.00 01/15/99 500,000 507,212
-----------
1,207,660
-----------
Industrial (16.8%):
Albertson's, Inc. .................. 5.65 03/26/98 500,000 463,150
Comdisco, Inc. ..................... 7.75 09/01/99 750,000 722,294
Gannett, Inc. ...................... 5.85 05/01/00 500,000 448,919
Lockheed Corp. ..................... 5.88 03/15/98 250,000 232,904
Maytag Corp. ....................... 8.88 07/01/97 600,000 606,469
Monsanto Co. ....................... 6.00 07/01/00 500,000 449,001
Penske Truck Leasing Co. LP......... 8.25 11/01/99 500,000 492,595
Sears Roebuck & Co. ................ 5.49 09/28/98 500,000 453,015
-----------
3,868,347
-----------
Utilities (8.1%):
Alabama Power Co. .................. 6.00 03/01/00 500,000 450,469
Connecticut Yankee Atomic Power
Co. ............................... 12.00 06/01/00 500,000 534,644
Iowa Illinois Gas & Electric Co. ... 5.05 10/15/98 500,000 451,214
Pennsylvania Power & Light Co. ..... 6.00 07/01/00 500,000 449,725
-----------
1,886,052
-----------
TOTAL INTERMEDIATE-TERM DEBT
SECURITIES
(Cost: $23,075,780) 91.1%........... 21,023,149
-----------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ----------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES
U.S. Treasury (3.1%):
U.S. Treasury Bills................. 5.34% 02/16/95 730,000 724,988
-----------
Commercial Paper (5.8%):
American Express Credit Corp........ 5.88 01/03/95 500,000 499,837
General Electric Capital Corp....... 5.92 01/10/95 820,000 818,782
-----------
1,318,619
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $2,043,607) 8.9%............. 2,043,607
-----------
TOTAL INVESTMENTS
(Cost: $25,119,387) 100.0%.......... $23,066,756
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (5.5%):
Dow Chemical Co. ........................................ 34,500 $ 2,320,125
Georgia Pacific Corp. ................................... 45,000 3,217,500
Mallinckrodt Group, Inc. ................................ 65,000 1,941,875
Scott Paper Co. ......................................... 35,000 2,419,375
USX-U.S. Steel Group, Inc. .............................. 35,000 1,242,500
Weyerhaeuser Co. ........................................ 40,000 1,500,000
-----------
12,641,375
-----------
Capital Goods/Construction (8.2%):
AMR Corp. ............................................... 20,000 1,065,000
Centex Corp. ............................................ 40,000 910,000
Cooper Industries........................................ 40,000 1,365,000
Fluor Corp. ............................................. 80,000 3,450,000
Gencorp, Inc. ........................................... 100,000 1,187,500
General Electric Co. .................................... 45,000 2,295,000
Mark IV Industries, Inc. ................................ 96,000 1,896,000
Tecumseh Products Co. ................................... 38,000 1,710,000
Tenneco, Inc. ........................................... 45,000 1,912,500
United Technologies Corp. ............................... 35,000 2,200,625
WMX Technologies, Inc. .................................. 40,000 1,050,000
-----------
19,041,625
-----------
Consumer Cyclical (6.5%):
Chrysler Corp. .......................................... 30,000 1,470,000
Eastman Kodak Co. ....................................... 55,000 2,626,250
Gap, Inc. ............................................... 20,000 610,000
General Motors Corp. .................................... 95,000 4,013,750
Sears Roebuck & Co. ..................................... 85,000 3,910,000
Unifi, Inc. ............................................. 35,000 892,500
Wal-Mart Stores, Inc. ................................... 65,000 1,381,250
-----------
14,903,750
-----------
Consumer Staples (1.9%):
Coca-Cola Co. ........................................... 30,000 1,545,000
Merck & Co., Inc. ....................................... 75,000 2,859,375
-----------
4,404,375
-----------
Energy (7.1%):
Amoco Corp. ............................................. 50,000 2,956,250
Atlantic Richfield Co. .................................. 30,000 3,052,500
Dresser Industries, Inc. ................................ 100,000 1,887,500
Halliburton Co. ......................................... 60,000 1,987,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
Nabors Industries, Inc.* ................................ 200,000 $1,300,000
Pride Petroleum Services, Inc.*.......................... 150,000 749,750
USX--Marathon Group, Inc. ............................... 145,000 2,374,375
Unocal Corp. ............................................ 80,000 2,180,000
----------
16,487,875
----------
Financial (3.3%):
Chase Manhattan Corp. ................................... 40,000 1,375,000
First Chicago Corp. ..................................... 45,000 2,148,750
Horace Mann Educators Corp. ............................. 60,000 1,275,000
Mercury Finance Co. ..................................... 36,500 474,500
St. Paul Companies (The)................................. 15,000 671,250
Signet Banking Corp. .................................... 60,000 1,717,500
----------
7,662,000
----------
Technology (2.6%):
Compaq Computer Corp.*................................... 40,000 1,580,000
Intel Corp. ............................................. 60,000 3,832,500
Oceaneering Int'l, Inc.*................................. 50,000 512,500
----------
5,925,000
----------
Utilities (3.9%):
AT&T Corp. .............................................. 45,000 2,261,250
BellSouth Corp. ......................................... 35,000 1,894,375
GTE Corp. ............................................... 55,000 1,670,625
Southwestern Bell Corp. ................................. 55,000 2,220,625
Telefonos de Mexico SA................................... 25,000 1,025,000
----------
9,071,875
----------
Transport Services (0.6%):
Sea Containers, Ltd. Cl A................................ 41,100 544,575
Western Atlas, Inc.*..................................... 20,000 752,500
----------
1,297,075
----------
Miscellaneous (1.4%):
Daimler Benz AKT-ADR*.................................... 20,000 985,000
ITT Corp. ............................................... 25,000 2,215,625
----------
3,200,625
----------
TOTAL COMMON STOCKS
(Cost: $96,947,436) 41.0%................................ 94,635,575
----------
</TABLE>
- -------
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
------ -------- ----------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government Agencies (29.5%):
U.S. Treasury Note.................... 4.00% 01/31/96 $30,000,000 $28,959,358
U.S. Treasury Note.................... 5.13 06/30/98 5,000,000 4,590,625
U.S. Treasury Bond.................... 10.38 11/15/12 20,850,000 24,811,500
U.S. Treasury Bond.................... 7.63 11/15/22 2,000,000 1,928,750
U.S. Treasury Bond.................... 7.13 02/15/23 1,500,000 1,364,063
U.S. Government Trust Certificate..... 8.88 05/15/95 164,002 165,132
U.S. Treasury Callable Receipt........ 10.38 11/15/12 17,500,000 6,297,725
-----------
68,117,153
-----------
U.S. Government Guaranteed (0.8%):
Federal National Mortgage Assn. ...... 9.50 11/10/20 1,000,000 1,050,672
Connecticut Housing Finance Authority. 7.63 05/15/21 1,000,000 843,570
-----------
1,894,242
-----------
Municipal (0.6%):
State of California................... 8.15 09/01/01 500,000 489,985
Suffolk County NY..................... 5.88 11/01/04 250,000 207,135
Suffolk County NY..................... 5.88 11/01/05 750,000 615,968
-----------
1,313,088
-----------
Foreign (1.7%):
Republic of Iceland................... 6.13 02/01/04 2,500,000 2,138,323
Rhone-Poulenc S A..................... 7.75 01/15/02 1,000,000 959,925
Rhone-Poulenc S A..................... 6.75 10/15/99 1,000,000 932,763
-----------
4,031,011
-----------
Financial (5.9%):
Aristar, Inc. ........................ 8.88 08/15/98 500,000 505,400
BankAmerica Corp. .................... 7.75 07/15/02 500,000 472,857
British Gas Financial, Inc. .......... 8.75 03/15/98 500,000 506,614
CIT Group Holdings, Inc. ............. 8.75 04/15/98 500,000 503,926
Chase Manhattan Corp. ................ 7.50 12/01/97 1,000,000 973,590
Citicorp.............................. 10.75 12/15/15 1,387,000 1,463,985
Commercial Credit Corp. .............. 9.88 12/01/95 500,000 510,185
General Electric Capital Corp. ....... 8.75 05/21/07 2,000,000 2,071,556
General Motors Acceptance Corp. ...... 8.38 05/01/97 750,000 750,938
General Motors Acceptance Corp. ...... 7.88 03/04/97 500,000 491,833
Heller Financial, Inc. ............... 9.13 08/01/99 500,000 510,877
Household Finance Corp. .............. 9.25 02/15/95 500,000 501,326
International Lease Finance Corp. .... 8.35 10/01/98 750,000 747,728
Kemper Corp. ......................... 8.80 11/01/98 500,000 488,877
Penske Truck Leasing Co. LP........... 8.25 11/01/99 1,000,000 985,190
Roosevelt Federal Savings & Loan
Assn................................. 10.13 04/15/18 1,000,000 1,048,140
Sun America, Inc. .................... 9.00 01/15/99 1,000,000 1,014,425
-----------
13,547,447
-----------
Utility (2.6%):
Central Telephone Co. ................ 9.28 11/27/00 1,000,000 1,040,890
Connecticut Yankee Atomic Power....... 12.00 06/01/00 2,000,000 2,138,578
Pacific Gas & Electric Co. ........... 8.75 01/01/01 1,000,000 1,012,421
PacifiCorp............................ 8.75 02/12/98 1,000,000 1,013,640
Philadelphia Electric Co. ............ 7.13 08/15/23 1,000,000 849,119
-----------
6,054,648
-----------
Industrial (6.0%):
BP North America, Inc. ............... 9.88 03/15/04 1,000,000 1,096,084
Blockbuster Entertainment Corp. ...... 6.63 02/15/98 500,000 469,703
</TABLE>
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ---------- ------------
<S> <C> <C> <C> <C>
Big River Electric Coopertive........ 10.70% 09/15/17 $4,000,000 $ 4,378,828
Big River Electric Coopertive........ 9.52 03/15/19 2,500,000 2,624,103
Dow Corning.......................... 8.38 11/01/96 500,000 504,029
Dillard Dept. Stores, Inc. .......... 9.63 09/15/97 500,000 516,646
Gannett, Inc. ....................... 5.85 05/01/00 1,000,000 895,000
General Motors Corp. ................ 9.75 05/15/99 500,000 509,626
Georgia Pacific Corp. ............... 10.13 05/15/00 250,000 252,328
Maytag Corp. ........................ 8.88 07/01/97 500,000 505,391
Nordstrom, Inc. ..................... 8.88 02/15/98 500,000 509,862
Penney J.C. Co., Inc. ............... 10.00 10/15/97 500,000 521,931
Pepsico, Inc. ....................... 7.88 08/15/96 500,000 498,871
Progressive Corp. of Ohio............ 10.00 12/15/00 500,000 527,147
------------
13,809,549
------------
TOTAL LONG-TERM DEBT SECURITIES
(Cost: $117,277,301) 47.1%........... 108,767,138
------------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ---------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (11.9%):
American Express Credit Corp......... 5.83% 01/06/95 $1,355,000 $ 1,353,901
American Express Credit Corp......... 5.80 01/05/95 5,205,000 5,201,644
Amoco Corp........................... 5.84 01/03/95 2,000,000 1,999,360
Cargill, Inc......................... 5.63 01/03/95 3,910,000 3,908,794
Ciba-Geigy CP........................ 5.90 01/12/95 5,535,000 5,525,015
Emerson Electric..................... 5.85 01/10/95 5,800,000 5,791,511
Smithkline Beecham Finance........... 5.88 01/04/95 3,620,000 3,618,224
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $27,398,449) 11.9%............ 27,398,449
------------
TOTAL INVESTMENTS
(Cost: $241,623,186) 100.0%.......... $230,801,162
============
</TABLE>
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT MARKET
DATE PRICE TO CALL VALUE
---------- -------- ------- --------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
AMR Corp. ................................ 01/21/95 $ 50.00 5,000 $(17,500)
AMR Corp. ................................ 02/18/95 50.00 5,000 (21,250)
AMR Corp. ................................ 05/20/95 50.00 5,000 (29,375)
AMR Corp. ................................ 05/20/95 55.00 5,000 (16,563)
Amoco Corp. .............................. 01/21/95 55.00 3,000 (12,563)
Amoco Corp. .............................. 02/18/95 60.00 8,000 (8,000)
Atlantic Richfield Co. ................... 01/21/95 105.00 8,000 (3,500)
Atlantic Richfield Co. ................... 01/21/95 110.00 5,000 (313)
BellSouth Corp. .......................... 01/21/95 50.00 10,000 (46,250)
BellSouth Corp. .......................... 04/15/95 50.00 5,000 (24,375)
BellSouth Corp. .......................... 04/15/95 55.00 5,000 (7,969)
Cooper Industries......................... 01/21/95 40.00 20,000 (1,250)
Cooper Industries......................... 04/15/95 35.00 5,000 (8,750)
Cooper Industries......................... 02/18/95 35.00 5,000 (5,625)
Chrysler Corp. ........................... 01/21/95 45.00 1,800 (8,325)
Chrysler Corp. ........................... 01/21/95 50.00 5,000 (4,063)
Chrysler Corp. ........................... 02/18/95 45.00 3,200 (15,800)
Chrysler Corp. ........................... 02/18/95 50.00 5,000 (8,750)
Chase Manhattan Corp. .................... 01/21/95 35.00 30,000 (15,000)
</TABLE>
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT MARKET
DATE PRICE TO CALL VALUE
---------- -------- ------- -----------
<S> <C> <C> <C> <C>
Compaq Computer Corp. ................. 01/21/95 $ 35.00 15,000 $ (73,125)
Compaq Computer Corp. ................. 01/21/95 40.00 10,000 (11,250)
Compaq Computer Corp. ................. 04/15/95 35.00 5,000 (33,438)
Centex Corp. .......................... 02/18/95 22.50 15,000 (16,875)
Dresser Industries, Inc. .............. 01/21/95 20.00 15,000 (2,344)
Dresser Industries, Inc. .............. 04/15/95 20.00 10,000 (7,500)
Dow Chemical........................... 01/21/95 60.00 1,500 (11,063)
Dow Chemical........................... 01/21/95 65.00 5,000 (14,688)
Eastman Kodak Co. ..................... 02/18/95 45.00 5,000 (16,875)
Eastman Kodak Co. ..................... 04/15/95 50.00 10,000 (15,000)
Fluor Corp. ........................... 01/21/95 45.00 10,000 (5,000)
First Chicago Corp. ................... 02/18/95 45.00 5,000 (16,875)
First Chicago Corp. ................... 04/15/95 50.00 5,000 (8,125)
General Electric Co. .................. 03/18/95 45.00 10,000 (67,500)
General Electric Co. .................. 03/18/95 50.00 5,000 (12,500)
General Motors Corp. .................. 01/21/95 35.00 15,000 (112,500)
General Motors Corp. .................. 03/18/95 40.00 12,500 (46,875)
General Motors Corp. .................. 03/18/95 45.00 5,000 (5,938)
Georgia Pacific Corp. ................. 01/21/95 70.00 10,000 (25,000)
Georgia Pacific Corp. ................. 01/21/95 75.00 5,000 (2,500)
Georgia Pacific Corp. ................. 01/21/95 80.00 10,000 (1,875)
Gap, Inc. ............................ 01/21/95 30.00 5,000 (7,500)
Gap, Inc............................... 03/18/95 30.00 10,000 (27,500)
Gap, Inc. ............................. 03/18/95 35.00 5,000 (3,750)
Halliburton Co. ....................... 01/21/95 35.00 5,000 (1,250)
Halliburton Co. ....................... 02/18/95 35.00 5,000 (3,750)
Intel Corp. ........................... 01/21/95 65.00 5,000 (5,469)
Intel Corp. ........................... 01/21/95 60.00 10,000 (44,375)
Intel Corp. ........................... 02/18/95 60.00 3,000 (15,375)
Intel Corp. ........................... 02/18/95 65.00 5,000 (10,625)
Intel Corp. ........................... 04/15/95 50.00 2,000 (29,500)
Intel Corp. ........................... 04/15/95 55.00 5,000 (52,500)
ITT Corp. ............................. 01/21/95 75.00 10,000 (138,750)
ITT Corp. ............................. 01/21/95 80.00 10,000 (90,000)
ITT Corp. ............................. 01/21/95 90.00 5,000 (5,625)
Mark IV Industries, Inc. .............. 02/18/95 20.00 15,000 (11,250)
Mark IV Industries, Inc. .............. 02/18/95 17.50 15,000 (37,500)
Mark IV Industries, Inc. .............. 02/18/95 22.50 5,000 (938)
Coca-Cola Co. ......................... 01/21/95 45.00 5,000 (33,125)
Coca-Cola Co. ......................... 01/21/95 50.00 5,000 (12,500)
Coca-Cola Co. ......................... 02/18/95 50.00 5,000 (13,750)
Mercury Finance Co. ................... 02/18/95 12.50 10,000 (8,750)
Mercury Finance Co. ................... 02/18/95 10.00 3,000 (8,625)
Mercury Finance Co. ................... 05/20/95 12.50 5,000 (7,500)
Mallinckrodt Group, Inc. .............. 01/21/95 30.00 15,000 (10,313)
Mallinckrodt Group, Inc. .............. 04/15/95 30.00 27,000 (43,875)
Merck & Co., Inc. ..................... 01/21/95 35.00 58,000 (195,750)
Sears Roebuck & Co. ................... 01/21/95 50.00 7,000 (875)
Sears Roebuck & Co .................... 02/18/95 45.00 10,000 (23,750)
SBC Communications, Inc. .............. 02/18/95 40.00 10,000 (16,875)
Signet Banking Corp ................... 03/18/95 30.00 10,000 (11,250)
St. Paul Companies (The)............... 02/18/95 45.00 5,000 (7,500)
Scott Paper Co. ....................... 01/21/95 60.00 15,000 (138,750)
Scott Paper Co. ....................... 01/21/95 65.00 15,000 (62,813)
Scott Paper Co. ....................... 01/21/95 70.00 5,000 (5,000)
AT&T Corp. ............................ 01/21/95 50.00 10,000 (11,875)
AT&T Corp. ............................ 02/18/95 50.00 5,000 (8,750)
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT MARKET
DATE PRICE TO CALL VALUE
---------- -------- ------- -----------
<S> <C> <C> <C> <C>
Tenneco, Inc. ......................... 02/18/95 $ 40.00 15,000 $ (50,625)
Telefonos de Mexico SA................. 02/18/95 40.00 15,000 (50,625)
Telefonos de Mexico SA................. 02/18/95 50.00 10,000 (5,000)
Tecumseh Products Co. ................. 03/18/95 45.00 5,000 (14,063)
Unocal Corp. .......................... 04/15/95 25.00 5,000 (13,125)
Unocal Corp. .......................... 02/18/95 25.00 5,000 (11,250)
Unifi, Inc. ........................... 03/18/95 25.00 10,000 (13,750)
United Technologies Corp. ............. 01/21/95 55.00 10,000 (80,000)
United Technologies Corp. ............. 02/18/95 60.00 15,000 (58,125)
United Technologies Corp. ............. 05/20/95 60.00 5,000 (25,930)
United Technologies Corp. ............. 05/20/95 65.00 5,000 (11,563)
Western Atlas, Inc. ................... 01/21/95 40.00 5,000 (781)
Western Atlas, Inc. ................... 03/18/95 40.00 4,000 (3,000)
Wal-Mart Stores, Inc. ................. 03/18/95 22.50 5,000 (3,750)
Wal-Mart Stores, Inc. ................. 01/21/95 100.00 10,000 (2,500)
WMX Technologies, Inc. ................ 02/18/95 100.00 10,000 (16,875)
WMX Technologies, Inc. ................ 02/18/95 50.00 5,000 (19,063)
-----------
TOTAL OPTIONS WRITTEN
(Premiums Received: $1,899,996)....... $(2,249,375)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1994
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (6.6%):
ABT Building Products Corp.*............................. 20,000 $ 280,000
Georgia Gulf Corp.*...................................... 17,100 664,763
Mississippi Chemical Corp. .............................. 12,000 208,500
USX--Marathon Group, Inc. ............................... 40,000 655,000
-----------
1,808,263
-----------
Capital Goods/Construction
(7.7%):
Centex Corp. ............................................ 30,000 682,500
Cincinnati Milacron, Inc. ............................... 15,200 359,100
Tecumseh Products Co. ................................... 16,000 720,000
Watsco, Inc. ............................................ 20,700 344,138
-----------
2,105,738
-----------
Consumer Cyclical (15.7%):
Catherines Stores Corp.*................................. 26,000 227,500
Gencorp, Inc. ........................................... 30,000 356,250
General Motors Corp. .................................... 10,000 421,250
Lowe's Companies, Inc. .................................. 14,000 486,500
Micro Warehouse, Inc.*................................... 24,000 840,000
Mohawk Industries, Inc.*................................. 20,000 255,000
O'Sullivan Inds. Hldgs., Inc.*........................... 20,000 252,500
Oceaneering Int'l, Inc.*................................. 40,000 410,000
Scott Paper Co. ......................................... 8,000 553,000
Sports & Recreation, Inc.*............................... 18,500 476,375
-----------
4,278,375
-----------
Energy (9.4%):
Alexander Energy Corp.*.................................. 25,000 162,500
Chieftan International, Inc.*............................ 30,000 303,750
Halliburton Co. ......................................... 25,000 828,125
Nabors Industries, Inc.*................................. 118,800 772,200
Pride Petroleum Svcs., Inc.*............................. 101,000 505,000
-----------
2,571,575
-----------
Financial (3.1%):
American Eagle Group, Inc.*.............................. 50,000 418,750
Signet Banking Corp. .................................... 15,000 429,375
-----------
848,125
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Technology (37.2%):
Catalina Marketing Corp.*............................... 15,000 $ 834,375
DSC Communications Corp.*............................... 9,525 341,709
FTP Software, Inc.*..................................... 14,750 466,469
General Instrument Corp.*............................... 15,000 450,000
HBO & Co.*.............................................. 11,000 378,125
LSI Logic Corp.*........................................ 13,000 524,875
Medtronic, Inc. ........................................ 12,000 667,500
Microchip Technology, Inc.*............................. 24,000 660,000
Molex Inc-- CL A........................................ 16,250 503,750
Norand Corp.*........................................... 12,000 426,000
Quintiles Transnational Corp.*.......................... 14,500 424,125
Shiva Corp.*............................................ 1,000 39,875
Silicon Graphics Inc.*.................................. 14,400 446,400
Stratacom Inc.*......................................... 26,000 910,000
Sybase, Inc.*........................................... 8,000 416,000
Symbol Technologies, Inc.*.............................. 24,000 741,000
Tandem Computers, Inc.*................................. 20,000 342,500
Triad Systems Corp.*.................................... 73,500 385,875
Xilinx, Inc.*........................................... 11,500 681,375
Zero Corp. ............................................. 35,000 490,000
-----------
10,129,953
-----------
Transportation (5.3%):
Mid Atlantic Medical Services., Inc.*................... 12,000 274,500
Sea Containers, Ltd. Cl A............................... 30,000 397,500
Team Rental Group, Inc.*................................ 27,000 256,500
TNT Freightways Corp. .................................. 20,000 512,500
-----------
1,441,000
-----------
Utilities (3.9%):
Cincinnati Bell, Inc. .................................. 35,000 595,000
New Jersey Resources Corp. ............................. 20,000 452,500
-----------
1,047,500
-----------
TOTAL COMMON STOCKS
(Cost: $22,663,179) 88.9%............................... 24,230,529
-----------
</TABLE>
- -------
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1994
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
---------- --------- ---------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT
SECURITIES:
U.S. Government/Agencies:
(1.0%):
Federal National
Mortgage Assoc......... 5.65% 01/12/95 $120,000 $ 119,831
Federal National
Mortgage Assoc......... 5.50 01/12/95 150,000 149,746
-----------
269,577
-----------
Commercial Paper (10.1%):
American Express Credit
Corp................... 5.80 01/05/95 660,000 659,574
General Electric Capital
Corp................... 5.80 01/04/95 660,000 659,681
Omnibus Funding CP...... 6.10 01/12/95 470,000 469,121
US West Capitol CP...... 6.05 01/18/95 426,000 424,780
Warner Lambert Co. ..... 5.90 01/03/95 530,000 529,826
-----------
2,742,982
-----------
TOTAL SHORT-TERM DEBT
SECURITIES
(Cost: $3,012,559)
11.1%................... 3,012,559
-----------
TOTAL INVESTMENTS
(Cost: $25,675,738)
100.0%.................. $27,243,088
===========
<CAPTION>
SHARES
EXPIRATION EXCERCISE SUBJECT TO MARKET
DATE PRICE CALL VALUE
---------- --------- ---------- -----------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Centex Corp............. 01/21/95 $22.50 5,000 $ (3,750)
Centex Corp............. 02/18/95 22.50 5,000 (5,625)
General Motors Corp..... 02/18/95 40.00 5,000 (18,750)
Halliburton Co.......... 01/21/95 30.00 5,000 (16,563)
Halliburton Co.......... 02/18/95 35.00 3,000 (2,250)
Mohawk Industries, Inc.. 02/18/95 15.00 4,000 (750)
Mohawk Industries, Inc.. 02/18/95 17.50 5,000 (625)
O'Sullivan Inds. Hldgs.,
Inc.................... 02/18/95 10.00 5,000 (14,688)
O'Sullivan Inds. Hldgs.,
Inc.................... 03/18/95 10.00 5,000 (14,688)
O'Sullivan Inds. Hldgs.,
Inc.................... 03/18/95 12.50 10,000 (7,500)
Tandem Computers, Inc... 01/21/95 15.00 5,000 (30,625)
Tandem Computers, Inc... 01/21/95 12.50 15,000 (14,063)
Tandem Computers, Inc... 04/22/95 15.00 14,000 (7,500)
TNT Freightways Corp.... 03/18/95 25.00 3,000 (10,000)
TNT Freightways Corp.... 03/18/95 22.50 3,000 (55,310)
Tecumseh Products Co.... 03/18/95 45.00 5,000 (14,063)
-----------
TOTAL OPTIONS WRITTEN
(Premiums Received:
$166,289).............. $(216,750)
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1994
---------------------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends.............. $ -- $ 8,623,388 $ 737,547 $ --
Interest............... 2,109,722 1,493,823 -- 17,971,487
------------ -------------- -------------- --------------
Total income............ 2,109,722 10,117,211 737,547 17,971,487
------------ -------------- -------------- --------------
Expenses:
Investment advisory
fees (Note 2)......... 119,452 1,933,632 33,192 1,324,071
------------ -------------- -------------- --------------
Net Investment Income... 1,990,270 8,183,579 704,355 16,647,416
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments (Notes 1
and 2):
Net realized gain (loss)
on investments:
Net proceeds from sales
and maturities........ 676,369,265 3,294,369,409 1,698,174 1,519,772,705
Cost of securities sold
or matured............ 676,371,373 3,267,953,321 1,651,499 1,520,584,821
------------ -------------- -------------- --------------
Net realized gain
(loss)................. (2,108) 26,416,088 46,675 (812,116)
Net unrealized
appreciation
(depreciation) of
investments............ -- (28,919,738) (441,894) (24,049,488)
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... (2,108) (2,503,650) (395,219) (24,861,604)
------------ -------------- -------------- --------------
Net Increase (decrease)
in Net Assets Resulting
From Operations........ $ 1,988,162 $ 5,679,929 $ 309,136 $ (8,214,188)
============ ============== ============== ==============
<CAPTION>
FOR THE PERIOD
MAY 2, 1994
(COMMENCEMENT OF
OPERATIONS) TO
FOR THE YEAR ENDED DECEMBER 31, 1994 DECEMBER 31, 1994
-------------------------------------------- -----------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY
BOND FUND BOND FUND FUND FUND
------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends.............. $ -- $ -- $ 2,485,346 $ 149,658
Interest............... 94,462 1,051,773 7,583,079 184,304
------------ -------------- -------------- --------------
Total income............ 94,462 1,051,773 10,068,425 333,962
------------ -------------- -------------- --------------
Expenses:
Investment advisory
fees (Note 2)......... 11,466 100,231 1,140,308 148,132
------------ -------------- -------------- --------------
Net Investment Income... 82,996 951,542 8,928,117 185,830
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note 1)
Net realized gain (loss)
on investments:
Net proceeds from sales
and maturities........ 17,073,463 79,925,117 1,299,337,874 225,866,870
Cost of securities sold
or matured............ 17,084,201 79,925,748 1,299,118,662 226,097,029
------------ -------------- -------------- --------------
Net realized gain
(loss)................. (10,738) (631) 219,212 (230,159)
Net unrealized
appreciation
(depreciation) of
investments............ (40,540) (1,599,232) (16,490,980) 1,516,889
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... (51,278) (1,599,863) (16,271,768) 1,286,730
------------ -------------- -------------- --------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ $ 31,718 $ (648,321) $ (7,343,651) $ 1,472,560
============ ============== ============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONEY MARKET FUND ALL AMERICA FUND EQUITY INDEX FUND
-------------------------- --------------------------- ---------------------------
FOR THE
PERIOD FEB.
5, 1993
(COMMENCEMENT
FOR THE OF
FOR THE YEARS ENDED DECEMBER 31, YEAR ENDED OPERATIONS)
------------------------------------------------------- DECEMBER 31, TO DEC. 31,
1994 1993 1994 1993 1994 1993
------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 1,990,270 $ 1,136,727 $ 8,183,579 $ 7,971,933 $ 704,355 $ 613,634
Net realized gain
(loss) on investments. (2,108) (472) 26,416,088 38,479,057 46,675 25,384
Unrealized appreciation
(depreciation) of
investments........... -- -- (28,919,738) 1,378,766 (441,894) 908,829
------------ ------------ ------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 1,988,162 1,136,255 5,679,929 47,829,756 309,136 1,547,847
------------ ------------ ------------ ------------ ------------ -----------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 94,487,674 41,353,469 39,275,910 46,953,402 15,548,022 25,160,667
Dividends reinvested... 1,985,341 1,135,878 44,786,526 43,532,929 844,140 611,010
Cost of shares
redeemed.............. (52,763,640) (43,830,000) (94,291,315) (68,801,000) (16,513,187) --
Dividend distributions. (1,985,341) (1,135,878) (44,786,526) (43,532,929) (844,140) (611,010)
------------ ------------ ------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... 41,724,034 (2,476,531) (55,015,405) (21,847,598) (965,165) 25,160,667
------------ ------------ ------------ ------------ ------------ -----------
Increase (Decrease) in
Net Assets............. 43,712,196 (1,340,276) (49,335,476) 25,982,158 (656,029) 26,708,514
Net Assets, Beginning of
Year................... 37,655,296 38,995,572 424,364,268 398,382,110 26,708,514 --
------------ ------------ ------------ ------------ ------------ -----------
Net Assets, End of Year. $ 81,367,492 $ 37,655,296 $375,028,792 $424,364,268 $ 26,052,485 $26,708,514
============ ============ ============ ============ ============ ===========
Components of Net
Assets:
Paid-in capital........ $81,269,287 $ 37,559,912 $369,315,516 $379,544,395 $25,650,652 $25,771,677
Accumulated
undistributed net
investment income
(loss)................ 102,385 97,456 (160,586) (200,234) (14,453) 2,624
Accumulated
undistributed net
realized gain (loss)
on investments........ (4,180) (2,072) (5,528,265) 4,698,242 (50,649) 25,384
Unrealized appreciation
of investments........ -- -- 11,402,127 40,321,865 466,935 908,829
------------ ------------ ------------ ------------ ------------ -----------
Net Assets, End of Year. $ 81,367,492 $ 37,655,296 $375,028,792 $424,364,268 $ 26,052,485 $26,708,514
============ ============ ============ ============ ============ ===========
<CAPTION>
SHORT-TERM MID-TERM
BOND FUND BOND FUND BOND FUND
-------------------------- --------------------------- ---------------------------
FOR THE FOR THE
PERIOD FEB. PERIOD FEB.
5, 1993 5, 1993
(COMMENCEMENT (COMMENCEMENT
FOR THE YEARS ENDED FOR THE OF FOR THE OF
DECEMBER 31, YEAR ENDED OPERATIONS) YEAR ENDED OPERATIONS)
-------------------------- DECEMBER 31, TO DEC. 31, DECEMBER 31, TO DEC. 31,
1994 1993 1994 1993 1994 1993
------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 16,647,416 $ 15,293,117 $ 82,996 $ 47,898 $ 951,542 $ 692,342
Net realized gain
(loss) on investments. (812,116) 15,685,625 (10,738) 8,344 (631) 807,027
Unrealized appreciation
(depreciation) of
investments........... (24,049,488) (1,740,470) (40,540) (730) (1,599,232) (453,399)
------------ ------------ ------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ (8,214,188) 29,238,272 31,718 55,512 (648,321) 1,045,970
------------ ------------ ------------ ------------ ------------ -----------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 39,754,856 47,524,607 1,405,816 4,061,891 11,061,483 27,721,993
Dividends reinvested... 16,671,114 31,047,461 85,096 56,348 994,698 1,504,803
Cost of shares
redeemed.............. (46,228,281) (46,441,000) (1,643,065) (1,485,000) (5,641,705) (9,811,000)
Dividend distributions. (16,671,114) (31,047,461) (85,096) (56,348) (994,698) (1,504,803)
------------ ------------ ------------ ------------ ------------ -----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... (6,473,425) 1,083,607 (237,249) 2,576,891 5,419,778 17,910,993
------------ ------------ ------------ ------------ ------------ -----------
Increase (Decrease) in
Net Assets............. (14,687,613) 30,321,879 (205,531) 2,632,403 4,771,457 18,956,963
Net Assets, Beginning of
Year................... 263,340,795 233,018,916 2,632,403 -- 18,956,963 --
------------ ------------ ------------ ------------ ------------ -----------
Net Assets, End of Year. $248,653,182 $263,340,795 $ 2,426,872 $ 2,632,403 $23,728,420 $18,956,963
============ ============ ============ ============ ============ ===========
Components of Net
Assets:
Paid-in capital........ $269,778,671 $259,580,982 $ 2,481,086 $ 2,633,239 $25,830,272 $19,415,796
Accumulated
undistributed net
investment income
(loss)................ (713,901) (690,203) (2,097) 3 (46,616) (3,460)
Accumulated
undistributed net
realized gain (loss)
on investments........ (3,522,538) (2,710,422) (10,847) (109) (2,605) (1,974)
Unrealized appreciation
(depreciation) of
investments........... (16,889,050) 7,160,438 (41,270) (730) (2,052,631) (453,399)
------------ ------------ ------------ ------------ ------------ -----------
Net Assets, End of Year. $248,653,182 $263,340,795 $ 2,426,872 $ 2,632,403 $23,728,420 $18,956,963
============ ============ ============ ============ ============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements
49
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE EQUITY
COMPOSITE FUND FUND
---------------------------------- -----------------
FOR THE PERIOD
MAY 2, 1994
(COMMENCEMENT OF
FOR THE YEARS ENDED DECEMBER 31, OPERATIONS) TO
---------------------------------- DECEMBER 31,
1994 1993 1994
---------------- ---------------- -----------------
<S> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income... $ 8,928,117 $ 6,422,804 $ 185,830
Net realized gain (loss)
on investments......... 219,212 18,889,419 (230,159)
Unrealized appreciation
(depreciation) of
investments............ (16,490,980) 503,529 1,516,889
---------------- ---------------- ------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations......... (7,343,651) 25,815,752 1,472,560
---------------- ---------------- ------------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares.............. 27,671,789 67,434,325 36,684,132
Dividends reinvested.... 12,622,992 18,284,630 191,593
Cost of shares redeemed. (15,500,590) (3,203,000) (11,594,400)
Dividend distributions.. (12,622,992) (18,284,630) (191,593)
---------------- ---------------- ------------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions............ 12,171,199 64,231,325 25,089,732
---------------- ---------------- ------------
Increase (Decrease) in
Net Assets.............. 4,827,548 90,047,077 26,562,292
Net Assets, Beginning of
Year.................... 227,710,779 137,663,702 --
---------------- ---------------- ------------
Net Assets, End of Year.. $232,538,327 $227,710,779 $ 26,562,292
================ ================ ============
Components of Net Assets:
Paid-in capital......... $243,600,335 $218,806,144 $ 25,281,325
Accumulated
undistributed net
investment income
(loss)................. 830,808 1,311,463 (5,763)
Accumulated
undistributed net
realized gain (loss) on
investments............ (721,413) 2,273,595 (230,159)
Unrealized appreciation
of investments......... (11,171,403) 5,319,577 1,516,889
---------------- ---------------- ------------
Net Assets, End of Year.. $232,538,327 $227,710,779 $ 26,562,292
================ ================ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
Income from investment operations and distributions per share for a Fund
share outstanding during the ten years ended December 31, 1994 and other
supplementary data with respect to the Funds are presented as if the Funds of
the Investment Company succeeded Mutual of America Life's Separate Account No.
2 before January 1, 1986. The financial highlights for the years 1985 through
1991 are presented from the perspective of the Separate Accounts, which are
the ultimate holders of the shares of the Investment Company. Effective in
1992 the financial highlights are being presented from the perspective of the
Funds.
<TABLE>
<CAPTION>
MONEY MARKET FUND
----------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.17 $ 1.17 $ 1.18 $ 1.23 $ 1.23 $ 1.22 $ 1.25 $1.18 $1.12 $ 1.06
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
Income From Investment
Operations
Net Investment Income.. 0.03 0.04 0.04 0.12 0.10 0.12 0.08 0.07 0.06 0.08
Net Gains or Losses on
Securities (both
realized and
unrealized)........... 0.02 -- -- (0.05) -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
Total From Investment
Operations............. 0.05 0.04 0.04 0.07 0.10 0.12 0.08 0.07 0.06 0.08
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
Less Distributions
Dividends (from net
investment income).... (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11) -- -- --
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
Total Distributions..... (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11) -- -- --
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
Adjustment(b).......... -- -- -- -- -- -- -- -- -- (0.02)
------ ------ ------ ------ ------ ------ ------ ----- ----- ------
Net Asset Value, End of
Year................... $ 1.19 $ 1.17 $ 1.17 $ 1.18 $ 1.23 $ 1.23 $ 1.22 $1.25 $1.18 $ 1.12
====== ====== ====== ====== ====== ====== ====== ===== ===== ======
Total Return (%)........ 4.1 2.9 3.3 4.4 6.8 2.6 5.9 5.7 4.8 6.2
Net Assets, End of Year
($ millions)........... 81 38 39 43 89 81 6 3 2 1
Ratio of Expenses to
Average Net Assets..... 0.25% 0.26% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40%
Ratio of Net Income to
Average Net Assets..... 4.15% 2.90% 3.33% 5.73% 7.79% 8.90% 6.85% 5.99% 5.90% 7.15%
Portfolio Turnover
Rate(a)................ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Per share amounts were calculated based on the actual per unit data of the
predecessor Separate Account No. 2. Each actual per unit amount, adjusted
to exclude administrative fees, distribution expense fees, mortality and
expense risk fees and a monthly fund charge, was used to calculate the
respective per share amounts shown based on the actual Separate Account
No. 2 net asset values at December 31, 1985 as described in Note 1.
51
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
ALL AMERICA FUND(E)
------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
1994(C) 1993 1992 1991 1990 1989 1988 1987 1986 1985
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $ 1.82 $1.67 $1.49 $ 1.05
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
Income From Investment
Operations
Net Investment Income.. 0.04 0.04 0.04 0.18 0.08 0.28 0.06 0.02 0.01 0.03
Net Gains or Losses on
Securities (both
realized and
unrealized)........... (0.01) 0.18 0.03 0.23 (0.11) 0.14 0.10 0.13 0.17 0.42
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
Total From Investment
Operations............. 0.03 0.22 0.07 0.41 (0.03) 0.42 0.16 0.15 0.18 0.45
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
Less Distributions
Dividends (from net
investment income)..... (0.04) (0.04) (0.04) (0.05) (0.06) (0.05) (0.09) -- -- --
Distributions (from
capital gains)........ (0.18) (0.17) (0.17) (0.13) (0.02) (0.25) (0.20) -- -- --
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
Total Distributions..... (0.22) (0.21) (0.21) (0.18) (0.08) (0.30) (0.29) -- -- --
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
Adjustment(b).......... -- -- -- -- -- -- -- -- -- (0.01)
------- ------ ------- ------- ------- ------- ------ ------- ------- -------
Net Asset Value, End of
Year................... $1.61 $1.80 $1.79 $1.93 $1.70 $1.81 $1.69 $1.82 $1.67 $1.49
======= ====== ======= ======= ======= ======= ====== ======= ======= =======
Total Return (%)........ (d)3.7 12.0 3.2 22.6 (3.8) 24.1 8.7 8.3 11.3 40.7
Net Assets, End of Year
($ millions)........... 375 424 398 434 377 437 40 43 29 6
Ratio of Expenses to
Average Net Assets..... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.51% 0.49%
Ratio of Net Income to
Average Net Assets..... 2.11% 1.92% 2.02% 2.49% 3.33% 2.54% 3.07% 1.97% 2.03% 2.92%
Portfolio Turnover
Rate(a)................ 129.80% 93.86% 129.40% 158.35% 108.75% 117.60% 56.94% 150.74% 141.40% 174.90%
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Per share amounts were calculated based on the actual per unit data of the
predecessor Separate Account No. 2. Each actual per unit amount, adjusted
to exclude administrative fees, distribution expense fees, mortality and
expense risk fees and a monthly fund charge, was used to calculate the
respective per share amounts shown based on the actual Separate Account
No. 2 net asset values at December 31, 1985 as described in Note 1.
(c) Reflects the combined data of this Fund and that of its predecessor.
(d) Total return reflects performance from May 2, 1994 and is not annualized.
(e) On May 2, 1994 the Stock Fund was renamed the All America Fund with
different investment objectives.
52
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND
--------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.41 $1.41 $1.41 $1.33 $1.37 $1.27 $1.40 $1.42 $1.28 $1.05
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
Income From Investment
Operations
Net Investment Income.. 0.09 0.09 0.09 0.13 0.09 -- 0.09 0.07 0.06 0.09
Net Gains or Losses on
Securities (both
realized and
unrealized)........... (0.14) 0.09 0.03 0.08 (0.02) 0.16 (0.01) (0.09) 0.08 0.15
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
Total From Investment
Operations............. (0.05) 0.18 0.12 0.21 0.07 0.16 0.08 (0.02) 0.14 0.24
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net
investment income)..... (0.09) (0.09) (0.09) (0.11) (0.11) (0.06) (0.21) -- -- --
Distributions (from
capital gains)........ -- (0.09) (0.03) (0.02) -- -- -- -- -- --
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
Total Distributions..... (0.09) (0.18) (0.12) (0.13) (0.11) (0.06) (0.21) -- -- --
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
Adjustment(b).......... -- -- -- -- -- -- -- -- -- (0.01)
------ ------- ------- ------ ------- ------ ------ ------ ------ ------
Net Asset Value, End of
Year................... $1.27 $1.41 $1.41 $1.41 $1.33 $1.37 $1.27 $1.40 $1.42 $1.28
====== ======= ======= ====== ======= ====== ====== ====== ====== ======
Total Return (%)........ (3.2) 13.1 8.6 14.0 3.5 11.1 6.2 (1.9) 10.5 20.7
Net Assets, End of Year
($ millions)........... 249 263 233 187 163 109 5 4 3 1
Ratio of Expenses to
Average Net Assets..... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.51% 0.48%
Ratio of Net Income to
Average Net Assets..... 6.32% 6.30% 6.93% 7.59% 8.57% 8.55% 8.25% 7.97% 8.26% 9.26%
Portfolio Turnover
Rate(a)................ 51.14% 103.16% 112.40% 95.00% 129.02% 47.70% 75.61% 47.41% 63.36% 99.50%
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Per share amounts were calculated based on the actual per unit data of the
predecessor Separate Account No. 2. Each actual per unit amount, adjusted
to exclude administrative fees, distribution expense fees, mortality and
expense risk fees and a monthly fund charge, was used to calculate the
respective per share amounts shown based on the actual Separate Account
No. 2 net asset values at December 31, 1985 as described in Note 1.
53
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
COMPOSITE FUND
-----------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $ 1.46 $ 1.60 $1.51 $1.35 $ 1.05
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
Income From Investment
Operations
Net Investment Income.. 0.05 0.05 0.06 0.19 0.14 0.11 0.08 0.05 0.03 0.07
Net Gains or Losses on
Securities (both
realized and
unrealized)........... (0.10) 0.22 0.03 0.09 (0.09) 0.17 0.05 0.04 0.13 0.24
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
Total From Investment
Operations............. (0.05) 0.27 0.09 0.28 0.05 0.28 0.13 0.09 0.16 0.31
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
Less Distributions
Dividends (from net
investment income)..... (0.07) (0.05) (0.06) (0.07) (0.10) (0.08) (0.17) -- -- --
Distributions (from
capital gains)........ (0.02) (0.10) (0.05) (0.13) (0.05) (0.03) (0.10) -- -- --
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
Total Distributions..... (0.09) (0.15) (0.11) (0.20) (0.15) (0.11) (0.27) -- -- --
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
Adjustment(b).......... -- -- -- -- -- -- -- -- -- (0.01)
------- ------- ------- ------- ------- ------ ------ ------- ------ -------
Net Asset Value, End of
Year................... $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $ 1.46 $1.60 $1.51 $ 1.35
======= ======= ======= ======= ======= ====== ====== ======= ====== =======
Total Return (%)........ (3.0) 16.9 5.9 16.4 1.5 17.2 7.9 5.2 11.4 27.4
Net Assets, End of Year
($ millions)........... 233 228 138 111 79 67 51 45 30 6
Ratio of Expenses to
Average Net Assets..... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.51% 0.49%
Ratio of Net Income to
Average Net Assets..... 3.88% 3.48% 4.01% 4.75% 6.20% 5.48% 5.94% 5.10% 5.35% 6.60%
Portfolio Turnover
Rate(a)................ 113.86% 100.76% 107.69% 134.91% 105.06% 87.32% 50.88% 124.04% 98.74% 133.70%
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Per share amounts were calculated based on the actual per unit data of the
predecessor Separate Account No. 2. Each actual per unit amount, adjusted
to exclude administrative fees, distribution expense fees, mortality and
expense risk fees and a monthly fund charge, was used to calculated the
respective per share amounts shown based on the actual Separate Account
No. 2 net asset values at December 31, 1985 as described in Note 1.
54
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY INDEX SHORT-TERM MID-TERM AGGRESSIVE
FUND BOND FUND BOND FUND EQUITY FUND
---------------------------- ---------------------------- ---------------------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
FEBRUARY 5, FEBRUARY 5, FEBRUARY 5, FOR THE PERIOD
1993 1993 1993 MAY 2, 1994
YEAR (COMMENCEMENT YEAR (COMMENCEMENT YEAR (COMMENCEMENT (COMMENCEMENT
ENDED OF OPERATIONS) ENDED OF OPERATIONS) ENDED OF OPERATIONS) OF OPERATIONS)
DECEMBER 31, TO DECEMBER 31, DECEMBER 31, TO DECEMBER 31, DECEMBER 31, TO DECEMBER 31, TO DECEMBER 31,
1994 1993 1994 1993 1994 1993 1994
------------ --------------- ------------ --------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Year............ $ 1.04 $ 1.00 $ 1.02 $ 1.00 $ 0.99 $ 1.00 $ 1.00
------ ------ ------ ------- ------ ------- -------
Income From
Investment
Operations
Net Investment
Income......... 0.03 0.02 0.04 0.02 0.03 0.04 0.01
Net Gains or
Losses on
Securities
(both realized
and
unrealized).... (0.01) 0.04 (0.02) 0.02 (0.07) 0.04 0.05
------ ------ ------ ------- ------ ------- -------
Total From
Investment
Operations...... 0.02 0.06 0.02 0.04 (0.04) 0.08 0.06
------ ------ ------ ------- ------ ------- -------
Less
Distributions
Dividends (from
net investment
income)......... (0.03) (0.02) (0.04) (0.02) (0.04) (0.04) (0.01)
Distributions
(from capital
gains)......... (0.01) -- -- -- -- (0.05) --
------ ------ ------ ------- ------ ------- -------
Total
Distributions... (0.04) (0.02) (0.04) (0.02) (0.04) (0.09) (0.01)
------ ------ ------ ------- ------ ------- -------
Net Asset Value,
End of Year..... $ 1.02 $ 1.04 $ 1.00 $ 1.02 $ 0.91 $ 0.99 $ 1.05
====== ====== ====== ======= ====== ======= =======
Total Return (%). 1.5 (b)6.2 1.4 (b) 4.6 (3.7) (b) 7.3 (b) 6.0
Net Assets, End
of Year
($ millions).... 26 27 2 3 24 19 27
Ratio of Expenses
to Average Net
Assets.......... 0.13% 0.11% 0.48% 0.45% 0.50% 0.45% 0.56%
Ratio of Net
Income to
Average Net
Assets.......... 2.67% 2.43% 3.51% 3.09% 4.71% 4.13% 0.7%
Portfolio
Turnover
Rate(a)......... 6.59% 1.44% 0.00% 122.37% 7.52% 162.03% 60.86%
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Not annualized.
55
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Mutual of America Investment Corporation (the "Investment Company") was
incorporated on February 21, 1986 under the laws of Maryland and is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. These financial statements reflect the Money Market, All
America (formerly Stock), Bond and Composite Funds as the respective
successors to Mutual of America Life Insurance Company's ("Mutual of America
Life") Separate Account No. 2 Money Market, Stock, Bond and Composite Funds.
Accordingly, the financial statements present the net assets of the Investment
Company at December 31, 1994, the results of its operations for the year then
ended and the changes in net assets for the years ended December 31, 1994 and
1993 of the Money Market, All America, Bond, and Composite Funds under the
continuing entity basis of accounting as if Separate Account No. 2's
investment assets and related liabilities had been invested in the Investment
Company since its inception. The succession or reorganization referred to
above was effected on October 31, 1986 by the exchange of shares of the
Investment Company for the respective net investment assets of Separate
Account No. 2 Funds. At the time of the exchange, the value of an Investment
Company share was established at an amount equal to the value of a respective
unit of Separate Account No. 2.
On January 3, 1989, the net assets of Mutual of America Life's Separate
Account No. 1, available only for qualified pension plans, were invested in
the All America Fund, formerly the Stock Fund, of the Investment Company.
Pursuant to this transaction, approximately 249 million shares of the All
America Fund were issued.
Effective February 5, 1993, the Equity Index Fund, Short-Term Bond Fund and
the Mid-Term Bond Fund became available as investment options. On May 2, 1994
the Mutual of America Aggressive Equity Fund became available as an investment
option and the Stock Fund was renamed the All America Fund with different
investment objectives.
The Investment Company currently sells shares of its eight funds only to the
separate accounts of Mutual of America Life and The American Life Insurance
Company of New York ("American Life"), an indirect, wholly-owned subsidiary of
Mutual of America Life, as a funding medium for variable annuity and variable
life insurance contracts issued by these companies. As of December 31, 1994,
Mutual of America Life owned 99.8% of the Investment Company's outstanding
shares.
The following is a summary of the significant accounting policies of the
Investment Company:
Security Valuation -- Investment securities are valued as follows:
Stocks listed on national security exchanges and certain over-the counter
issues quoted on the National Association of Securities Dealers Automated
Quotation ("NASDAQ") system are valued at the last sale price, or if no
sale, at the latest available bid price.
Debt securities are valued at a composite fair market value "evaluated
bid," which may be the last sale price. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith by the Investment Adviser under the direction of
the Board of Directors of the Investment Company.
Short-term investments with a maturity of 60 days or less are valued at
amortized cost, which approximates market value. Short-term debt
securities, which mature in more than 60 days, are stated at market value.
Options purchased by the Investment Company are included in the
investment portfolio and valued at the latest sale or closing price.
Premiums received by the Investment Company upon writing covered call
options are included in the Investment Company's statement of assets and
liabilities as an asset and an equivalent liability. The liability is
adjusted daily to reflect the market value of the options written based on
the latest sale or closing price. If an option expires, or if the
Investment Company enters into a closing purchase transaction, the
Investment Company realizes a gain or, if the cost of a closing purchase
transaction exceeds the premium originally received, a loss, and the
liability related to the option is extinguished. If an option is exercised,
the proceeds of the sale of the underlying security are increased by the
premium originally received when the option was written.
Security Transactions -- Security transactions are recorded on the trade
date. Interest income is accrued as earned. Dividend income is recorded on the
ex-dividend date.
56
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Realized gains and losses on the sale of short and long-term debt securities
are computed on the basis of amortized cost at the time of sale. Realized
gains and losses on the sale of common and preferred stocks are based on the
identified cost basis of the security.
Federal Income Taxes -- The Investment Company intends to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to
shareholders. Therefore, no federal income tax provision is required.
2. EXPENSES
The Investment Company has entered into an Investment Advisory Agreement
with Mutual of America Capital Management Corporation ("the Adviser"), an
indirect wholly-owned subsidiary of Mutual of America Life. For providing
investment management services to each of the Funds of the Investment Company,
the Adviser receives a fee calculated as a daily charge at the annual rate of
.25% of the value of the net assets of the Money Market Fund (.40% before
February 5, 1993), and .50% of the value of the net assets of the All America
Fund, Bond Fund, Short-Term Bond Fund, Mid-Term Bond Fund and Composite Fund,
.125% of the value of the net assets of the Equity Index Fund, and .85% of the
value of the net assets of the Aggressive Equity Fund. Prior to November 3,
1993, Mutual of America Life was the investment adviser to the Investment
Company; Mutual of America Life's obligations under the Agreement were assumed
by the Adviser on that date.
Under subadvisory agreements, the Adviser has delegated its investment
advisory responsibilities to the subadvisers, is responsible for providing
management services to the respective Funds and pays the subadvisors for their
investment advisory services.
The Adviser voluntarily limits the expenses of each Fund, other than for
brokers' commissions, transfer taxes and other fees relating to portfolio
transactions, to the amount of the advisory fee paid by the Funds of the
Investment Company to the Adviser. The Adviser may discontinue this practice
at any time. Prior to November 3, 1993, Mutual of America Life paid all fees
and expenses of the Investment Company other than investment advisory fees,
brokerage commissions, and other portfolio transaction costs.
3. PURCHASES AND SALES
The cost of investment purchases and proceeds from sales of investments,
excluding government and short-term securities and options, for the All
America Fund, Equity Index Fund, Bond Fund, Short-Term Bond Fund, Mid-Term
Bond Fund, and Composite Fund for the year ended December 31, 1994 and for the
period May 2, 1994 to December 31, 1994 for the Aggressive Equity Fund are as
follows:
<TABLE>
<CAPTION>
ALL AMERICA EQUITY
FUND INDEX FUND BOND FUND
------------ ---------- ------------
<S> <C> <C> <C>
Cost of investment purchases............... $423,831,988 $2,031,732 $115,717,262
============ ========== ============
Proceeds from sales of investments......... $415,881,686 $1,696,787 $114,874,938
============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
---------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Cost of investment purchases.... $ -- $1,251,172 $241,926,835 $36,018,989
========== ========== ============ ===========
Proceeds from sales of invest-
ments.......................... $1,000,494 $6,301,090 $240,993,442 $13,117,768
========== ========== ============ ===========
</TABLE>
The cost of short-term security purchases for the Money Market Fund for the
year was $717,985,516. Net proceeds from sales and redemptions for the year
was $676,369,265.
57
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At December 31, 1994, net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
MONEY ALL AMERICA EQUITY
MARKET FUND FUND INDEX FUND BOND FUND
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate gross
unrealized
appreciation........... $ -- $ 29,083,416 $ 2,513,854 $ 666,799
Aggregate gross
unrealized
depreciation........... 17,681,289 2,046,919 17,555,849
---------- ------------ ------------ ------------
Net unrealized
appreciation
(depreciation)......... $ -- $ 11,402,127 $ 466,935 $(16,889,050)
========== ============ ============ ============
Aggregate cost of
investments for Federal
income tax purposes.... $ -- $365,569,985 $ 25,466,715 $261,410,088
========== ============ ============ ============
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate gross
unrealized
appreciation........... $ -- $ 1,697 $ 3,564,076 $ 2,542,151
Aggregate gross
unrealized
depreciation........... 41,270 2,054,328 14,735,479 1,025,262
---------- ------------ ------------ ------------
Net unrealized
appreciation
(depreciation)......... $ (41,270) $ (2,052,631) $(11,171,403) $ 1,516,889
========== ============ ============ ============
Aggregate cost of
investments for Federal
income tax purposes.... $2,359,274 $ 25,119,387 $241,623,186 $ 25,675,738
========== ============ ============ ============
</TABLE>
4. CAPITAL SHARE ACTIVITY
At December 31, 1994 there were 2 billion shares of $.01 par value common
stock authorized for the Investment Company. The shares of common stock are
divided into eight series as follows, which includes the Aggressive Equity
Fund, whose shares became available as of May 2, 1994.
<TABLE>
<CAPTION>
NAME OF FUND AUTHORIZED NO. OF SHARES
------------ ------------------------
<S> <C>
Money Market Fund..................................... 100,000,000
All America Fund...................................... 500,000,000
Equity Index Fund..................................... 75,000,000
Bond Fund............................................. 200,000,000
Short-Term Bond Fund.................................. 50,000,000
Mid-Term Bond Fund.................................... 75,000,000
Composite Fund........................................ 150,000,000
Aggressive Equity Fund................................ 500,000,000
-------------
Sub Total........................................... 1,650,000,000
Shares to be allocated at the discretion of the Board
of Directors......................................... 350,000,000
-------------
Total............................................... 2,000,000,000
=============
</TABLE>
Transactions in shares during 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ ----------------
<S> <C> <C> <C> <C>
Shares sold............. 79,933,378 20,711,423 17,287,744 28,581,354
Shares issued to
shareholders as
reinvestment of
dividends.............. 1,667,580 27,488,908 826,855 13,108,963
---------- ---------- ---------- ----------
Total................... 81,600,958 48,200,331 18,114,599 41,690,317
Shares redeemed......... 45,376,022 51,680,490 17,835,906 33,333,880
---------- ---------- ---------- ----------
Net increase (decrease). 36,224,936 (3,480,159) 278,693 8,356,437
========== ========== ========== ==========
<CAPTION>
FOR THE PERIOD
MAY 2, 1994
(COMMENCEMENT
OF OPERATIONS)
FOR THE YEAR ENDED DECEMBER 31, 1994 TO DECEMBER 31, 1994
-------------------------------------- --------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
------------ ----------- ------------ --------------------
<S> <C> <C> <C> <C>
Shares sold............. 1,473,435 11,788,299 16,926,834 39,569,672
Shares issued to
shareholders as
reinvestment of
dividends.............. 85,016 1,089,054 7,592,331 182,099
---------- ---------- ---------- ----------
Total................... 1,558,451 12,877,353 24,519,165 39,751,771
Shares redeemed......... 1,704,117 6,094,347 9,579,455 14,502,387
---------- ---------- ---------- ----------
Net increase (decrease). (145,666) 6,783,006 14,939,710 25,249,384
========== ========== ========== ==========
</TABLE>
58
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
FOR THE PERIOD
FEBRUARY 5, 1993
(COMMENCEMENT
FOR THE YEAR ENDED OF OPERATIONS) FOR THE YEAR ENDED
DECEMBER 31, 1993 TO DECEMBER 31, 1993 DECEMBER 31, 1993
------------------------- -------------------- ------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- -------------------- ------------------
<S> <C> <C> <C> <C>
Shares sold............. 35,337,859 24,017,896 25,163,101 30,376,369
Shares issued to
shareholders as
reinvestment of
dividends.............. 968,474 24,153,646 589,125 22,063,979
----------- ----------- ---------- -----------
Total................... 36,306,333 48,171,542 25,752,226 52,440,348
Shares redeemed......... (37,388,235) (35,284,250) -- (30,781,816)
----------- ----------- ---------- -----------
Net increase (decrease). (1,081,902) 12,887,292 25,752,226 21,658,532
=========== =========== ========== ===========
<CAPTION>
FOR THE PERIOD
FEBRUARY 5, 1993
(COMMENCEMENT
OF OPERATIONS) FOR THE YEAR ENDED
TO DECEMBER 31, 1993 DECEMBER 31, 1993
------------------------- --------------------
SHORT-TERM MID-TERM COMPOSITE
BOND FUND BOND FUND FUND
------------ ----------- --------------------
<S> <C> <C> <C>
Shares sold............. 3,959,417 26,740,941 36,982,300
Shares issued to
shareholders as
reinvestment of
dividends.............. 55,109 1,523,762 10,689,072
----------- ----------- ----------
Total................... 4,014,526 28,264,703 47,671,372
Shares redeemed......... (1,440,866) (9,068,761) (1,278,463)
----------- ----------- ----------
Net increase............ 2,573,660 19,195,942 46,392,909
=========== =========== ==========
</TABLE>
5. DIVIDENDS
On December 30, 1994 dividend distributions were declared for each of the
Funds from net realized gains on investment transactions and net investment
income during 1994. Additionally, on September 15, 1994 the remaining required
dividends relating to the 1993 Internal Revenue Sec. 855(a) election were
declared for the All America Fund, which were reinvested resulting in an
increase in the aggregate shares outstanding. Dividends declared on September
15, 1994 were paid on September 15, 1994 to shareholders of record on
September 15, 1994, and dividends declared on December 30, 1994 were paid on
December 30, 1994 to shareholders of record on December 29, 1994.
<TABLE>
<CAPTION>
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Ordinary income.............. $1,985,341 $ 8,143,931 $ 721,432 $16,671,114
Capital gains................ -- 36,642,595 122,708 --
---------- ----------- ----------- -----------
Total dividends.............. $1,985,341 $44,786,526 $ 844,140 $16,671,114
========== =========== =========== ===========
Dividend amounts per share... $ 0.031 $ 0.222 $ 0.034 $ 0.091
========== =========== =========== ===========
Increase in number of shares
per fund.................... 1,667,580 27,488,908 826,855 13,108,963
========== =========== =========== ===========
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Ordinary income.............. $ 85,096 $ 994,698 $ 9,408,772 $ 191,593
Capital gains................ -- -- 3,214,220 --
---------- ----------- ----------- -----------
Total dividends.............. $ 85,096 $ 994,698 $12,622,992 $ 191,593
========== =========== =========== ===========
Dividend amounts per share... $ 0.036 $ 0.040 $ 0.090 $ 0.008
========== =========== =========== ===========
Increase in number of shares
per fund.................... 85,016 1,089,054 7,592,331 182,099
========== =========== =========== ===========
</TABLE>
59
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF MUTUAL OF AMERICA INVESTMENT
CORPORATION:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments in securities, of Mutual of America
Investment Corporation (a Maryland Corporation) comprising, respectively, the
Money Market, All America (formerly the Stock Fund), Equity Index, Bond,
Short-Term Bond, Mid-Term Bond and Composite Fund as of December 31, 1994, and
the related statement of operations for the year then ended and the statements
of changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the three years in the period then
ended. We have also audited the statement of assets and liabilities, including
the portfolio of investments in securities, of Mutual of America Investment
Corporation comprising the Aggressive Equity Fund as of December 31, 1994 and
the related statements of operations and changes in net assets and the
financial highlights for the period May 2, 1994 (commencement of operations)
to December 31, 1994. These financial statements and the financial highlights
are the responsibility of the Corporation's management. Our responsibility is
to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights of Mutual of America Investment
Corporation for each of the seven years in the period ended December 31, 1991,
were audited by other auditors whose report dated February 19, 1992, expressed
an unqualified opinion on those financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1994 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the Money Market, All America (formerly the Stock Fund), Equity Index, Bond,
Short-Term Bond, Mid-Term Bond and Composite Fund of Mutual of America
Investment Corporation as of December 31, 1994, the results of their
operations for the year then ended and the changes in their net assets for
each of the two years in the period then ended and their financial highlights
for each of the three years in the period then ended in conformity with
generally accepted accounting principles. Also, in our opinion, the financial
statements referred to above present fairly, in all material respects, the
financial position of the Aggressive Equity Fund of Mutual of America
Investment Corporation as of December 31, 1994 and the results of its
operations, the changes in its net assets and its financial highlights for the
period May 2, 1994 (commencement of operations) to December 31, 1994 in
conformity with generally accepted accounting principles.
/s/ Arthur Andersen LLP
New York, New York
February 22, 1994
60
<PAGE>
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements. All required financial statements are included in
---------------------
Part B of this Registration Statement, as amended, except that the Financial
Highlights table also is set forth in Part A.
(b) Exhibits. The following Exhibits are filed herewith:
--------
6. Distribution Agreement between the Investment Company and Mutual of
America Life Insurance Company
10. Consent of Graham & James
11. Consent of Arthur Andersen LLP
17. Financial Data Schedule for each series of the Investment Company
Item 28. Business and Other Connections with Investment Adviser
------------------------------------------------------
Mutual of America Capital Management Corporation (the "Adviser") is
the Investment adviser to the Investment Company, and is registered as an
investment adviser under the Investment Advisers Act of 1940. The names,
addresses and positions with the Adviser of each Director and officer of the
Adviser is set forth below.
<TABLE>
<CAPTION>
Principal Occupation
Name Positions with Adviser During Past Two Years
- ---- ---------------------- ---------------------
<S> <C> <C>
Thomas J. Moran Director, Chairman of the President and Director of
666 Fifth Avenue Board Mutual of American Life,
NY, NY 10103 Chief Executive Officer,
Mutual of America Life since
October 1994
Manfred Altstadt Director, Senior Senior Executive Vice President
666 Fifth Avenue Executive Vice President and Chief Financial Officer of
NY, NY 10103 and Chief Financial Mutual of America Life and
Officer and American Life
F. Harlan Batrus Director Partner, Lazard Freres & Co.
New York, New York
</TABLE>
C-1
<PAGE>
<TABLE>
<CAPTION>
Principal Occupation
Name Positions with Adviser During Past Two Years
- ---- ---------------------- ---------------------
<S> <C> <C>
Roger E. Birk Director Past President and Director,
Washington, DC Federal National Mortgage
Association. Chairman Emeritus,
Merrill Lynch & Co. Inc.
Robert X. Chandler Director Retired; formerly President,
Brighton, Mass. United Way of Massachusetts Bay,
Inc.
Anthony F. Earley Director President and Chief Operating
Detriot, Michigan Officer, Detroit Edison & Co.
William H. Gates Director Partner, Gates & Ellis, Attorneys
Seattle, Wash.
William T. Knowles Director Consultant
New York, New York
Walter A. McDougal Director Former Chairman and President,
Floral Park, NY Richmond Hill Savings Bank
Kenneth R. O'Brien Director Chief Executive Officer,
Santa Monica, CA Aurora National Life Assurance
Company; Chief Executive Officer,
O'Brien Asset Management.
Dolores J. Morrissey President and Chief Executive Vice President
666 Fifth Avenue Executive Officer and Chief Investment Officer -
NY, NY 10103 General Account of the Adviser
until June, 1994; prior thereto,
Executive Vice President of
Mutual of America Life until
January 1994
Patrick A. Burns Senior Executive Vice Senior Executive Vice
666 Fifth Avenue President and General President and General Counsel
NY, NY 10103 Counsel of Mutual of America Life and
and American Life
Stephanie J. Kopp Executive Vice President Executive Vice President
666 Fifth Avenue and Corporate Secretary and Secretary of Mutual of
</TABLE>
C-2
<PAGE>
<TABLE>
<CAPTION>
Principal Occupation
Name Positions with Adviser During Past Two Years
- ---- ---------------------- ---------------------
<S> <C> <C>
NY, NY 10103 America Life and American Life
Andrew L. Heiskell Executive Vice President Senior Vice President of the
666 Fifth Avenue Adviser from January 1994 until
NY, NY 10103 March 1994; Senior Vice President,
Mutual of America Life, until
January 1994
Ronald S. Scowby Executive Vice President Executive Vice President of
666 Fifth Avenue Mutual of America Life until
NY, NY 10103 Septmeber 1993
Roger C. Ferrara Senior Vice President Senior Vice President,
666 Fifth Avenue Mutual of America Life,
NY, NY 10103 until January 1994
John E. Manley Senior Vice President Senior Vice President,
666 Fifth Avenue Mutual of America Life,
NY, NY 10103 until January 1994
Doris Klug Vice President Vice President, Mutual of
666 Fifth Avenue America Life, until January
NY, NY 10103 1994
Nancy McAvey Senior Vice President Vice President of the Adviser
666 Fifth Avenue until September 1994; prior
NY, NY 10103 thereto Vice President, Mutual
of America Life, until January
1994
Aline Couture Vice President Vice President, Mutual of
666 Fifth Avenue America Life, until January
NY, NY 10103 1994
Charles McCaghey Vice President Second Vice President, Mutual
666 Fifth Avenue of America Life, until January
NY, NY 10103 1994
I. Charles Rinaldi Vice President Vice President, Mutual of America
666 Fifth Avenue Life, until January 1994
NY, NY 10103
Robert H. Stewart Vice President Vice President, Mutual of America
666 Fifth Avenue Life, until January 1994
NY, NY 10103
Joseph J. Tito Vice President Senior Vice
</TABLE>
C-3
<PAGE>
<TABLE>
<CAPTION>
Principal Occupation
Name Positions with Adviser During Past Two Years
- ---- ---------------------- ---------------------
<S> <C> <C>
Compliance President/Compliance Director,
Whale Security Company until
February 1995
Paul Travers Vice President Vice President, Mutual of America
666 Fifth Avenue Life, until January 1994
NY, NY 10103
David Wood, III Vice President Vice President, Mutual of America
666 Fifth Avenue Life, until January 1994
NY, NY 10103
Alfred Otero Vice President Second Vice President of the
666 Fifth Avenue Adviser until February 1995; prior
NY, NY 10103 thereto, Real Estate Investment
Analyst, Mutual of America Life,
until March 1994
</TABLE>
Each of Palley-Needelman Asset Management, Inc. ("Palley-Needelman");
James Dravo Oelschlager, doing business as Oak Associates ("Oak Associates");
Fred Alger Management, Inc. ("Alger Management"); and Mitchell Hutchins
Institutional Investors Inc. ("Mitchell Hutchins") is a subadviser for a portion
of the Active Assets of the All America Fund allocated to it, and C.J.
Lawrence/Deutsche Bank Securities Corporation ("C.J. Lawrence") is the
subadviser for the Aggressive Growth Portfolio of the Aggressive Equity Fund.
Each subadviser is registered as an investment adviser under the Investment
Advisers Act of 1940. The names, addresses and positions of each director and
officer of each subadviser are incorporated by reference to the Form ADV of the
subadviser filed with the Securities and Exchange Commission, as set forth
below.
Palley-Needleman Asset Management Inc., Form ADV, SEC File No. 801-9755.
James Dravo Oeschlager, doing business as Oak Associates, Form ADV, SEC
File No. 801-23632
Fred Alger Management, Inc., Form ADV, SEC File No. 801-06709.
C-4
<PAGE>
Mitchell Hutchins Institutional Investors Inc., Form ADV, SEC File No.
801-20378.
C.J. Lawrence/Deutsche Bank Securitiies Corporation, Form ADV, SEC File
No. 801-9638.
C-5
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this amendment to Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused
this amendment to its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of New York, the State of
New York, the 27th day of April, 1995.
MUTUAL OF AMERICA
INVESTMENT CORPORATION
By: /s/ Dolores J. Morrissey
------------------------------
Dolores J. Morrissey
President
C-6
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
post-effective amendment to Registration Statement has been signed below by the
following persons in the capacities and on April 27, 1995.
PRINCIPAL EXECUTIVE OFFICER:
/s/ Dolores J. Morrissey
- -------------------------------
Dolores J. Morrissey
President
PRINCIPAL FINANCIAL OFFICER
and
PRINCIPAL ACCOUNTING OFFICER:
/s/ Manfred Altstadt
- -------------------------------
Manfred Altstadt
Senior Executive Vice President
and Chief Financial Officer
DIRECTORS:
/s/ Manfred Altstadt
- -------------------------------
Manfred Altstadt
/s/ Dolores J. Morrissey
- -------------------------------
Dolores J. Morressey
/s/ Peter Flanagan
- -------------------------------
Peter Flanagan
/s/ George J. Mertz
- -------------------------------
George J. Mertz
/s/ James J. Needham
- -------------------------------
James J. Needham
/s/ Howard J. Nolan
- -------------------------------
Howard J. Nolan
C-7
<PAGE>
EXHIBIT INDEX
NO. PAGE
--- ----
27.1 Financial Data Schedule for Mutual of America
Investment Corp. Money Market Fund
27.2 Financial Data Schedule for Mutual of America
Investment Corp. All America Fund
27.3 Financial Data Schedule for Mutual of America
Investment Corp. Equity Index Fund
27.4 Financial Data Schedule for Mutual of America
Investment Corp. Bond Fund
27.5 Financial Data Schedule for Mutual of America
Investment Corp. Short Term Bond Fund
27.6 Financial Data Schedule for Mutual of America
Investment Corp. Mid-Term Bond Fund
27.7 Financial Data Schedule for Mutual of America
Investment Corp. Composite Fund
27.8 Financial Data Schedule for Mutual of America
Investment Corp. Aggressive Equity Fund
27.9 Financial Data Schedule for Mutual of America
Investment Corporation
99.6 Distribution Agreement between the Investment Company
and Mutual of America Life Insurance Company
99.10 Consent of Graham & James
99.11 Consent of Arthur Andersen LLP
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 81,355,715
<INVESTMENTS-AT-VALUE> 81,355,715
<RECEIVABLES> 432
<ASSETS-OTHER> 11,345
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 81,367,492
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 81,269,287
<SHARES-COMMON-STOCK> 68,329,703
<SHARES-COMMON-PRIOR> 32,108,785
<ACCUMULATED-NII-CURRENT> 102,385
<OVERDISTRIBUTION-NII> (5,778)
<ACCUMULATED-NET-GAINS> (4,180)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 81,367,492
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,109,722
<OTHER-INCOME> 0
<EXPENSES-NET> 119,452
<NET-INVESTMENT-INCOME> 1,990,270
<REALIZED-GAINS-CURRENT> (2,108)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,988,162
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,985,341
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 79,933,378
<NUMBER-OF-SHARES-REDEEMED> 45,376,022
<SHARES-REINVESTED> 1,667,580
<NET-CHANGE-IN-ASSETS> 43,712,196
<ACCUMULATED-NII-PRIOR> 97,456
<ACCUMULATED-GAINS-PRIOR> (2,072)
<OVERDISTRIB-NII-PRIOR> (849)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 119,452
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 119,452
<AVERAGE-NET-ASSETS> 48,001,047
<PER-SHARE-NAV-BEGIN> 1.17
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> .02
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.19
<EXPENSE-RATIO> .25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. ALL AMERICA FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 365,569,985
<INVESTMENTS-AT-VALUE> 376,972,112
<RECEIVABLES> 1,922,344
<ASSETS-OTHER> 628,214
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 379,522,670
<PAYABLE-FOR-SECURITIES> 4,493,878
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 4,493,878
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 369,315,516
<SHARES-COMMON-STOCK> 233,228,250
<SHARES-COMMON-PRIOR> 235,792,696
<ACCUMULATED-NII-CURRENT> (160,586)
<OVERDISTRIBUTION-NII> (60,916)
<ACCUMULATED-NET-GAINS> (5,528,265)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,402,127
<NET-ASSETS> 375,028,792
<DIVIDEND-INCOME> 8,623,388
<INTEREST-INCOME> 1,493,823
<OTHER-INCOME> 0
<EXPENSES-NET> 1,933,632
<NET-INVESTMENT-INCOME> 8,183,579
<REALIZED-GAINS-CURRENT> 26,416,088
<APPREC-INCREASE-CURRENT> (28,919,738)
<NET-CHANGE-FROM-OPS> 5,679,929
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8,143,931
<DISTRIBUTIONS-OF-GAINS> 36,642,595
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,711,423
<NUMBER-OF-SHARES-REDEEMED> 51,680,490
<SHARES-REINVESTED> 27,488,908
<NET-CHANGE-IN-ASSETS> (49,335,476)
<ACCUMULATED-NII-PRIOR> (200,234)
<ACCUMULATED-GAINS-PRIOR> 4,698,242
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,933,632
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,933,632
<AVERAGE-NET-ASSETS> 387,302,908
<PER-SHARE-NAV-BEGIN> 1.80
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> (.01)
<PER-SHARE-DIVIDEND> (.04)
<PER-SHARE-DISTRIBUTIONS> (.18)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.61
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. EQUITY INDEX FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 25,466,715
<INVESTMENTS-AT-VALUE> 25,935,025
<RECEIVABLES> 72,805
<ASSETS-OTHER> 44,655
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 26,052,485
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,650,652
<SHARES-COMMON-STOCK> 25,562,679
<SHARES-COMMON-PRIOR> 25,752,226
<ACCUMULATED-NII-CURRENT> (14,453)
<OVERDISTRIBUTION-NII> (9,637)
<ACCUMULATED-NET-GAINS> (50,649)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 466,935
<NET-ASSETS> 26,052,485
<DIVIDEND-INCOME> 737,547
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 33,192
<NET-INVESTMENT-INCOME> 704,355
<REALIZED-GAINS-CURRENT> 46,675
<APPREC-INCREASE-CURRENT> (441,894)
<NET-CHANGE-FROM-OPS> 309,136
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 721,432
<DISTRIBUTIONS-OF-GAINS> 122,708
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 17,287,744
<NUMBER-OF-SHARES-REDEEMED> 17,835,906
<SHARES-REINVESTED> 826,855
<NET-CHANGE-IN-ASSETS> (656,029)
<ACCUMULATED-NII-PRIOR> 2,624
<ACCUMULATED-GAINS-PRIOR> 25,384
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33,192
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 33,192
<AVERAGE-NET-ASSETS> 26,369,442
<PER-SHARE-NAV-BEGIN> 1.04
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> (.01)
<PER-SHARE-DIVIDEND> (.03)
<PER-SHARE-DISTRIBUTIONS> (.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.02
<EXPENSE-RATIO> .13
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 261,410,088
<INVESTMENTS-AT-VALUE> 244,521,038
<RECEIVABLES> 4,137,200
<ASSETS-OTHER> 3,094
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 248,661,332
<PAYABLE-FOR-SECURITIES> 8,150
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 8,150
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 269,778,671
<SHARES-COMMON-STOCK> 195,418,032
<SHARES-COMMON-PRIOR> 187,088,990
<ACCUMULATED-NII-CURRENT> (713,901)
<OVERDISTRIBUTION-NII> 23,699
<ACCUMULATED-NET-GAINS> (3,522,538)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (16,889,050)
<NET-ASSETS> 248,653,182
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 17,971,487
<OTHER-INCOME> 0
<EXPENSES-NET> 1,324,071
<NET-INVESTMENT-INCOME> 16,647,416
<REALIZED-GAINS-CURRENT> (812,116)
<APPREC-INCREASE-CURRENT> (24,049,488)
<NET-CHANGE-FROM-OPS> (8,214,188)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 16,671,114
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,581,354
<NUMBER-OF-SHARES-REDEEMED> 33,333,880
<SHARES-REINVESTED> 13,108,963
<NET-CHANGE-IN-ASSETS> (14,687,613)
<ACCUMULATED-NII-PRIOR> 14,687,613
<ACCUMULATED-GAINS-PRIOR> (2,710,422)
<OVERDISTRIB-NII-PRIOR> 180,113
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,324,071
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,324,071
<AVERAGE-NET-ASSETS> 263,488,586
<PER-SHARE-NAV-BEGIN> 1.41
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> (.14)
<PER-SHARE-DIVIDEND> (.09)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.27
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. SHORT TERM BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 2,359,274
<INVESTMENTS-AT-VALUE> 2,318,004
<RECEIVABLES> 28,443
<ASSETS-OTHER> 80,425
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,426,872
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,481,086
<SHARES-COMMON-STOCK> 2,426,385
<SHARES-COMMON-PRIOR> 2,573,660
<ACCUMULATED-NII-CURRENT> (2,097)
<OVERDISTRIBUTION-NII> 2,097
<ACCUMULATED-NET-GAINS> (10,847)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (41,270)
<NET-ASSETS> 2,426,872
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 94,462
<OTHER-INCOME> 0
<EXPENSES-NET> 11,466
<NET-INVESTMENT-INCOME> 82,996
<REALIZED-GAINS-CURRENT> (10,738)
<APPREC-INCREASE-CURRENT> (40,540)
<NET-CHANGE-FROM-OPS> 31,718
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 85,096
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,473,435
<NUMBER-OF-SHARES-REDEEMED> 1,704,117
<SHARES-REINVESTED> 85,016
<NET-CHANGE-IN-ASSETS> (205,531)
<ACCUMULATED-NII-PRIOR> 3
<ACCUMULATED-GAINS-PRIOR> (109)
<OVERDISTRIB-NII-PRIOR> (3)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11,466
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,466
<AVERAGE-NET-ASSETS> 2,363,343
<PER-SHARE-NAV-BEGIN> 1.02
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> (.02)
<PER-SHARE-DIVIDEND> (.04)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .48
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. MID-TERM BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 25,119,387
<INVESTMENTS-AT-VALUE> 23,066,756
<RECEIVABLES> 576,474
<ASSETS-OTHER> 85,190
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 23,728,420
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,830,272
<SHARES-COMMON-STOCK> 25,982,915
<SHARES-COMMON-PRIOR> 19,195,942
<ACCUMULATED-NII-CURRENT> (46,616)
<OVERDISTRIBUTION-NII> 43,156
<ACCUMULATED-NET-GAINS> (2,605)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,052,631)
<NET-ASSETS> 23,728,420
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,051,773
<OTHER-INCOME> 0
<EXPENSES-NET> 100,231
<NET-INVESTMENT-INCOME> 951,542
<REALIZED-GAINS-CURRENT> (631)
<APPREC-INCREASE-CURRENT> (1,599,232)
<NET-CHANGE-FROM-OPS> (648,321)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 994,698
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,788,299
<NUMBER-OF-SHARES-REDEEMED> 6,094,347
<SHARES-REINVESTED> 1,089,054
<NET-CHANGE-IN-ASSETS> 4,771,457
<ACCUMULATED-NII-PRIOR> (3,460)
<ACCUMULATED-GAINS-PRIOR> (1,974)
<OVERDISTRIB-NII-PRIOR> 3,460
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 100,231
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 100,231
<AVERAGE-NET-ASSETS> 20,214,757
<PER-SHARE-NAV-BEGIN> .99
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> (.07)
<PER-SHARE-DIVIDEND> (.04)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> .91
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. COMPOSITE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 241,623,186
<INVESTMENTS-AT-VALUE> 230,801,162
<RECEIVABLES> 5,864,004
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 236,665,166
<PAYABLE-FOR-SECURITIES> 1,877,464
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 1,877,464
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 243,600,335
<SHARES-COMMON-STOCK> 148,023,063
<SHARES-COMMON-PRIOR> 133,118,191
<ACCUMULATED-NII-CURRENT> 830,808
<OVERDISTRIBUTION-NII> 56,121
<ACCUMULATED-NET-GAINS> (721,413)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (11,171,403)
<NET-ASSETS> 232,538,327
<DIVIDEND-INCOME> 2,485,346
<INTEREST-INCOME> 7,583,079
<OTHER-INCOME> 0
<EXPENSES-NET> 1,140,308
<NET-INVESTMENT-INCOME> 8,928,117
<REALIZED-GAINS-CURRENT> 219,212
<APPREC-INCREASE-CURRENT> (16,490,980)
<NET-CHANGE-FROM-OPS> (7,343,651)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9,408,722
<DISTRIBUTIONS-OF-GAINS> 3,214,200
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,926,834
<NUMBER-OF-SHARES-REDEEMED> 9,579,455
<SHARES-REINVESTED> 7,592,331
<NET-CHANGE-IN-ASSETS> 4,827,548
<ACCUMULATED-NII-PRIOR> 1,311,463
<ACCUMULATED-GAINS-PRIOR> 2,273,595
<OVERDISTRIB-NII-PRIOR> 20,635
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,140,308
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,140,308
<AVERAGE-NET-ASSETS> 230,103,326
<PER-SHARE-NAV-BEGIN> 1.71
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> (.10)
<PER-SHARE-DIVIDEND> (.07)
<PER-SHARE-DISTRIBUTIONS> (.02)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.57
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> MUTUAL OF AMERICA INVESTMENT CORP. AGGRESSIVE EQUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> MAY-02-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 25,675,738
<INVESTMENTS-AT-VALUE> 27,243,088
<RECEIVABLES> 483,521
<ASSETS-OTHER> 149,547
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 27,876,156
<PAYABLE-FOR-SECURITIES> 1,097,114
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 216,750
<TOTAL-LIABILITIES> 1,313,864
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,281,325
<SHARES-COMMON-STOCK> 25,246,183
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (5,763)
<OVERDISTRIBUTION-NII> 5,763
<ACCUMULATED-NET-GAINS> (230,159)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,516,889
<NET-ASSETS> 26,562,292
<DIVIDEND-INCOME> 149,658
<INTEREST-INCOME> 184,304
<OTHER-INCOME> 0
<EXPENSES-NET> 148,132
<NET-INVESTMENT-INCOME> 185,830
<REALIZED-GAINS-CURRENT> (230,159)
<APPREC-INCREASE-CURRENT> 1,516,889
<NET-CHANGE-FROM-OPS> 1,472,560
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 191,593
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 39,569,672
<NUMBER-OF-SHARES-REDEEMED> 14,502,387
<SHARES-REINVESTED> 182,099
<NET-CHANGE-IN-ASSETS> 26,562,292
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 148,132
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 148,132
<AVERAGE-NET-ASSETS> 26,425,011
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.05
<EXPENSE-RATIO> .56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1993
<PERIOD-START> JAN-01-1994 JAN-01-1993
<PERIOD-END> DEC-31-1994 DEC-31-1993
<DEBT-HELD-FOR-SALE> 0 0
<DEBT-CARRYING-VALUE> 4,027,388,054 4,035,660,830
<DEBT-MARKET-VALUE> 0 0
<EQUITIES> 57,953,336 40,375,038
<MORTGAGE> 60,144,482 59,689,268
<REAL-ESTATE> 260,640,755 187,959,208
<TOTAL-INVEST> 4,406,126,627 4,323,684,344
<CASH> 32,178,425 99,006,162
<RECOVER-REINSURE> 0 0
<DEFERRED-ACQUISITION> 0 0
<TOTAL-ASSETS> 6,455,773,560 6,276,513,537
<POLICY-LOSSES> 0 0
<UNEARNED-PREMIUMS> 0 0
<POLICY-OTHER> 0 0
<POLICY-HOLDER-FUNDS> 3,989,887,095 3,874,191,849
<NOTES-PAYABLE> 136,993,262 1,995,244
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6,455,773,560 6,276,513,537
628,873,707 542,120,200
<INVESTMENT-INCOME> 386,148,078 356,343,115
<INVESTMENT-GAINS> 594,478 3,018,006
<OTHER-INCOME> 1,070,651 640,495
<BENEFITS> 593,701,138 594,229,275
<UNDERWRITING-AMORTIZATION> 0 0
<UNDERWRITING-OTHER> 0 0
<INCOME-PRETAX> 50,580,218 30,160,892
<INCOME-TAX> 32,513 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 51,207,209 33,178,899
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 51,207,209 33,178,899
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
<RESERVE-OPEN> 3,874,191,849 3,855,399,429
<PROVISION-CURRENT> 161,371,093 9,685,185
<PROVISION-PRIOR> 9,685,185 24,875,334
<PAYMENTS-CURRENT> 592,763,367 594,015,982
<PAYMENTS-PRIOR> 594,015,982 514,745,505
<RESERVE-CLOSE> 3,989,887,095 3,874,191,849
<CUMULATIVE-DEFICIENCY> 0 0
</TABLE>
<PAGE>
EXHIBIT 99.6
DISTRIBUTION AGREEMENT
AGREEMENT made this 21st day of September, 1994 between MUTUAL OF AMERICA
INVESTMENT CORPORATION, a corporation organized under the laws of Maryland (the
"Investment Company"), and MUTUAL OF AMERICA LIFE INSURANCE COMPANY, a New York
mutual life insurance company (the "Distributor"):
W I T N E S S E T H :
- - - - - - - - - -
WHEREAS, the Investment Company is registered under the Investment Company
Act of 1940, as amended to date (the "Investment Company Act"), as a diversified
open-end investment company and it is affirmatively in the interest of the
Investment Company to offer its shares for sale continuously to certain separate
accounts which are registered under the Securities Act of 1933 (the "Securities
Act") of both the Distributor and its indirect wholly-owned subsidiary, The
American Life Insurance Company of New York (together the "Accounts") pursuant
in each case to a currently effective prospectus (the "Prospectus") under the
Securities Act; and
WHEREAS, the Distributor may be regarded as a principal underwriter for the
Investment Company; and
WHEREAS, the Investment Company is comprised of eight separate Funds, each
of which pursues its investment objective through separate investment policies;
and
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WHEREAS, the Distributor is duly registered as a broker-dealer under the
Securities Exchange Act of 1934; and
WHEREAS, the Investment Company and the Distributor wish to enter
into an agreement with each other with respect to the continuous offering to the
Accounts of shares of the common Stock, par value $.01 per share, of the
Investment Company's eight Funds (the "shares"), in order to promote the growth
of the Investment Company and facilitate the distribution of its shares;
NOW, THEREFORE, the parties agree as follows:
Section 1. Appointment of the Distributor. The Investment Company hereby
------------------------------
appoints the Distributor as the principal underwriter and distributor of the
Investment Company to sell its shares to the Accounts and the Distributor hereby
accepts such appointment. The Investment Company during the term of this
Agreement shall sell its shares to the Distributor upon the terms and conditions
set forth below.
Section 2. Exclusive Nature of Duties. The Distributor shall be the
--------------------------
exclusive representative of the Investment Company to act as principal
underwriter and distributor.
Section 3. Purchase of Shares from the Investment Company.
----------------------------------------------
(a) The Investment Company will offer its shares and the Distributor shall
have the right to buy from the Investment Company the shares needed, but not
more than the shares needed (except for clerical errors in transmission) to fill
unconditional orders for shares of the Investment Company placed with the
Distributor by the Accounts. The price which the Distributor shall pay for the
shares of each Fund so purchased from the Investment Company shall be
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the net asset value per share of such Fund, determined as set forth in Section
3(c) hereof.
(b) The shares of each Fund are to be resold by the Distributor to the
Accounts at the net asset value per share of such Fund.
(c) The net asset value of shares of each Fund of the Investment Company
shall be determined by the Investment Company or any agent of the Investment
Company, at the close of trading on the New York Stock Exchange on each business
day on which the New York Stock Exchange is open for trading, in accordance with
the method set forth in the Prospectus of the Investment Company and guidelines
established by the Board of Directors of the Investment Company. The Investment
Company may also cause the net asset value of shares of each Fund of the
Investment Company to be determined in substantially the same manner or
estimated in such manner and as of such other hour or hours as may from time to
time be agreed upon in writing by the Investment Company and the Distributor.
All payments to the Investment Company hereunder shall be made in the manner set
forth in Section 3(e).
(d) The Investment Company shall have the right to suspend the sale of
shares of any of its Funds at times when redemption of any such shares is
suspended pursuant to the conditions set forth in Section 4(b) hereof. The
Investment Company shall also have the right to suspend the sale of shares of
any or all of its Funds if trading on the New York Stock Exchange shall have
been suspended, if a banking moratorium shall have been declared by Federal or
New York authorities, or if there shall have been some other extraordinary
event, which, in the judgment of the Investment Company, makes it impracticable
to sell any such shares.
(e) The Investment Company, or any agent of the Investment Company
designated in writing by the Investment Company, shall be promptly advised of
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all purchase orders for shares of each Fund received by the Distributor. The
Investment Company (or its agent) will confirm orders upon their receipt, will
make appropriate book entries and upon receipt by the Investment Company (or its
agent) of payment therefor, will deliver deposit receipts or certificates for
such shares pursuant to the instructions of the Distributor. Payment shall be
made to the Investment Company in New York Clearing House funds. The
Distributor agrees to cause such payment and such instructions to be delivered
promptly to the Investment Company (or its agent).
Section 4. Repurchase or Redemption of Shares by the Investment Company.
------------------------------------------------------------
(a) Any of the outstanding shares of each Fund may be tendered for
redemption at any time, and the Investment Company agrees to repurchase or
redeem any such shares so tendered in accordance with its obligations as set
forth in Article V of its Articles of Incorporation, as amended from time to
time, and in accordance with the applicable provisions set forth in the
Prospectus of the Investment Company. The price to be paid to redeem or
repurchase shares of any Fund shall be equal to the net asset value per share of
such Fund calculated in accordance with the provisions of Section 3(c) hereof.
All payments by the Investment Company hereunder shall be made in the manner set
forth below.
The Investment Company shall pay the total amount of the redemption price
as defined in the above paragraph pursuant to the instructions of the
Distributor in New York Clearing House funds on or before the second business
day subsequent to its having received the notice of redemption in proper form.
(b) Redemption of shares of any Fund or payment may be suspended at times
when the New York Stock Exchange is closed, when trading on said Exchange is
closed, when trading on said Exchange is restricted, when an
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emergency exists as a result of which disposal by the Investment Company of
securities owned by it for such Fund is not reasonably practicable or it is not
reasonably practicable for the Investment Company fairly to determine the value
of the net assets of such Fund, or during any other period when the Securities
and Exchange Commission, by order, so permits.
Section 5. Duties of the Investment Company.
--------------------------------
(a) The Investment Company shall furnish to the Distributor copies of all
information, financial statements and other papers which the Distributor may
reasonably request for use in connection with the distribution of shares of the
Investment Company, and this shall include one certified copy, upon request by
the Distributor, of all financial statements prepared for the Investment Company
by independent public accountants. the Investment Company shall make available
to the Distributor such number of copies of its Prospectus as the Distributor
shall reasonably request.
(b) The Investment Company shall take, from time to time, but subject to
any necessary approval of its shareholders, all necessary action to fix the
number of its authorized shares and to register shares under the Securities Act,
to the end that there will be available for sale such number of shares as
investors may reasonably be expected to purchase.
(c) The Investment Company shall use its best efforts to qualify and
maintain the qualification of an appropriate number of shares of each of its
Funds for sale under the securities laws of such states as the Distributor and
the Investment Company may approve, if such qualification is required by such
securities laws. Any such qualification may be withheld, terminated or
withdrawn by the Investment Company at any time in its discretion. As provided
in Section 8(c) hereof, the expense of qualification and maintenance of
qualification of shares of a Fund shall be borne by such Fund. The
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Distributor shall furnish such information and other material relating to its
affairs and activities as may be required by the Investment Company in
connection with such qualification.
(d) The Investment Company will furnish, in reasonable quantities upon
request by the Distributor, copies of annual and interim reports of the
Investment Company.
Section 6. Duties of the Distributor.
-------------------------
(a) The Distributor shall devote reasonable time and effort to effect sales
of shares of the Investment Company, but shall not be obligated to sell any
specific number of shares. The services of the Distributor hereunder are not to
be deemed exclusive and nothing herein contained shall prevent the Distributor
from entering into distribution arrangements with other investment companies so
long as the performance of its obligations hereunder is not impaired thereby.
(b) In selling the shares of the Investment Company, the Distributor shall
use its best efforts in all respects duly to conform with the requirements of
all federal and state laws and regulations and the regulations of the National
Association of Securities Dealers, Inc. (the "NASD"), relating to the sale of
such securities. Neither the Distributor nor any selected dealer nor any other
person is authorized by the Investment Company to give any information or to
make any representations, other than those contained in the registration
statement or related Prospectus and any sales literature specifically approved
by the Investment Company.
Section 7. Payment of Expenses.
-------------------
(a) The Investment Company shall bear all costs and expenses of the
Investment Company, including fees and disbursements of its counsel and
auditors, in connection with the preparation and filing of any required
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registration statements and prospectuses under the Investment Company Act, the
Securities Act, and all amendments and supplements thereto, and the expense of
preparing, printing, mailing and otherwise distributing prospectuses, annual or
interim reports to shareholders and proxy materials.
(b) Each Fund shall bear the costs and expenses of qualification of shares
of such Fund for sale, and, if necessary or advisable in connection therewith,
the Investment Company shall bear the cost and expense of qualifying the
Investment Company a a broker or dealer, in such states of the United States or
other jurisdictions as shall be selected by the Investment Company and the
Distributor pursuant to Section 5(c) hereof and the costs and expenses payable
to each such state for continuing qualification therein until the Investment
Company decides to discontinue such qualification pursuant to Section 5(c)
hereof.
Section 8. Indemnification.
---------------
(a) The Investment Company shall indemnify and hold harmless the
Distributor and each person, if any, who controls the Distributor against any
loss, liability, claim, damage or expense (including the reasonable cost of
investigating or defending any alleged loss, liability, claim, damage or expense
and reasonable counsel fees incurred in connection therewith) arising by reason
of any person acquiring direct or indirect interest in any shares, which may be
based upon the Securities Act, or on any other statute or at common law, on the
ground that the registration statement or related Prospectus, as from time to
time amended and supplemented, or the annual or interim reports to shareholders
of the Investment Company, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading, unless such statement or
omission was made in reliance upon,
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<PAGE>
and in conformity with, information furnished to the Investment Company in
connection therewith by or on behalf of the Distributor; provided, however, that
in no case (i) is the indemnity of the Investment Company in favor of the
Distributor and any such controlling persons to be deemed to protect such
Distributor or any such controlling persons thereof against any liability to the
Investment Company or its security holders to which the Distributor or any such
controlling persons would otherwise be subject by reason of willful misfeasance,
bad faith or gross negligence in the performance of its duties or by reason of
reckless disregard of its obligations and duties under this Agreement; or (ii)
is the Investment Company to be liable under its indemnity agreement contained
in this paragraph with respect to any claim made against the Distributor or any
such controlling persons, unless the Distributor or such controlling persons, as
the case may be, shall have notified the Investment Company in writing within a
reasonable time after the summons or other first legal process giving
information or the nature of the claim shall have been served upon the
Distributor or such controlling persons (or after the Distributor or such
controlling persons shall have received notice of such service on any designated
agent), but failure to notify the Investment Company of any such claim shall not
relieve it from any liability which it may have to the person against whom such
action is brought otherwise than on account of its indemnity agreement contained
in this paragraph. The Investment Company will be entitled to participate at its
own expense in the defense, or, if it so elects, to assume the defense of
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any suit brought to enforce any such liability, but if the Investment Company
elects to assume the defense, such defense shall be conducted by counsel chosen
by it and satisfactory to the Distributor or such controlling person or persons,
defendant or defendants in the suit. In the event the Investment Company elects
to assume the defense of any such suit and retain such counsel, the Distributor
or such controlling person or persons, defendant or defendants in the suit,
shall bear the fees and expenses of any additional counsel retained by them but,
in case the Investment Company does not elect to assume the defense of any such
suit, it will reimburse the Distributor or such controlling person or persons,
defendant or defendants in the suit, for the reasonable fees and expenses of any
counsel retained by them. The Investment Company shall promptly notify the
Distributor of the commencement of any litigation or proceedings against it or
any of its officers or directors in connection with the issuance or sale of the
shares.
(b) The Distributor shall indemnify and hold harmless the Investment
Company and each of its directors and officers and each person, if any, who
controls the Investment Company against any loss, liability, claim, damage, or
expense described in the foregoing indemnity contained in subsection (a) of this
Section, but only with respect to statement or omissions made in reliance upon,
and in conformity with, information furnished to the Investment Company in
writing by or on behalf of the Distributor for use in connection with the
registration statement or related prospectus, as from time to time amended, or
the annual or interim reports to shareholders. In case any action shall be
brought against the Investment Company or any person so indemnified, in respect
of which indemnity may be sought against the Distributor, the Distributor shall
have the rights and duties given to the Investment Company, and the Investment
Company and each person so indemnified shall have the rights and duties given to
the Distributor by the provisions of subsection (a) of this Section 8.
Section 9. Duration and Termination of This Agreement. This Agreement
------------------------------------------
shall become effective as of the date first above written and shall remain in
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force until September 21, 1995 and thereafter, but only so long as such
continuance is specifically approved at least annually by (i) the Board of
Directors of the Investment Company, or by the vote of a majority of the
outstanding voting securities of the Investment Company, cast in person or by
proxy, and (ii) a majority of those directors who are not parties to this
Agreement or interested persons of any such party cast in person at a meeting
called for the purpose of voting upon such approval.
This Agreement may be terminated at any time without the payment of any
penalty, by the Board of Directors of the Investment Company or by vote of a
majority of the outstanding voting securities of the Investment Company, or by
the Distributor, on sixty days' written notice to the other party. This
Agreement shall automatically terminate in the event of its assignment.
The terms "vote of a majority of the outstanding voting securities,"
"assignment," "affiliated person" and "interested person," when used in this
Agreement, shall have the respective meaning specified in the Investment Company
Act.
Section 10. Amendments of this Agreement. This Agreement may be amended
----------------------------
by the parties only if such amendment is specifically approved by (i) the Board
of Directors of the Investment Company, or by the vote of a majority of
outstanding voting securities of the Investment Company, and (ii) a majority of
those directors of the Investment Company who are not parties to this Agreement
or interested persons of any such party cast in person at a meeting called for
the purpose of voting on such approval.
Section 11. Governing Law. This Agreement shall be construed in
-------------
accordance with the laws of the State of New York and the applicable provisions
of the Investment Company Act. To the extent the applicable law of
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the State of New York, or any of the provisions herein, conflict with the
applicable provisions of the Investment Company Act, the latter shall control.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the day and year first above written in New York, New York.
MUTUAL OF AMERICA INVESTMENT
CORPORATION
Attest: _____________________ By __________________________
Secretary President
MUTUAL OF AMERICA LIFE
INSURANCE COMPANY
Attest: _____________________ By __________________________
Secretary
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EXHIBIT 10
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CONSENT OF GRAHAM & JAMES
-------------------------
We hereby consent to all references to our firm included in Registration
Statement No. 33-6486.
GRAHAM & JAMES
New York, New York
April 28, 1995
<PAGE>
EXHIBIT 11
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CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
As independent public accountants, we hereby consent to the use of our report
(and to all references to our Firm) included in or made part of registration
statement no. 33-6486.
ARTHUR ANDERSEN LLP
New York, New York
April 28, 1995
