<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
Principal Office Located at:
320 Park Avenue, New York, New York 10022
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, 1996 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.
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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.
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This Prospectus should be read carefully and retained for further reference.
-------------------
Prospectus dated May 1, 1996
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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, 1995, or since the
Fund's inception date if in existence less than ten years, and other
supplementary data with respect to the Funds are as follows. The information
with respect to each of the years in the four year period ended December 31,
1995 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 six 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,
--------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $1.19 $1.17 $1.17 $1.18 $1.23 $1.23 $1.22 $1.25 $1.18 $1.12
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Income From Investment
Operations
Net Investment Income.. .07 .03 .04 .04 .12 .10 .12 .08 .07 .06
Net Gains or Losses on
Securities (both
realized and
unrealized)........... -- .02 -- -- (.05) -- -- -- -- --
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total From Investment
Operations.......... .07 .05 .04 .04 .07 .10 .12 .08 .07 .06
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less Distributions
Dividends (from net
investment income).... (.08) (.03) (.04) (.05) (.12) (.10) (.11) (.11) -- --
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Distributions.. (.08) (.03) (.04) (.05) (.12) (.10) (.11) (.11) -- --
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF
PERIOD................. $1.18 $1.19 $1.17 $1.17 $1.18 $1.23 $1.23 $1.22 $1.25 $1.18
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total Return(c)......... 5.8% 4.1% 2.9% 3.3% 4.4% 6.8% 2.6% 5.9% 5.7% 4.8%
Net Assets, End of
Period ($ millions).... $ 73 $ 81 $ 38 $ 39 $ 43 $ 89 $ 81 $ 6 $ 3 $ 2
Ratio of Expenses to
Average Net Assets..... .25% .25% .26% .40% .40% .40% .40% .40% .40% .40%
Ratio of Net Income to
Average Net Assets..... 5.66% 4.15% 2.90% 3.33% 5.73% 7.79% 8.90% 6.85% 5.99% 5.90%
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,
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $1.82 $ 1.67 $ 1.49
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Income From Investment
Operations
Net Investment Income.. .03 .04 .04 .04 .18 .08 .28 .06 .02 .01
Net Gains or Losses on
Securities
(both realized and
unrealized)........... .56 (.01) .18 .03 .23 (.11) .14 .10 .13 .17
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Total From Investment
Operations.......... .59 .03 .22 .07 .41 (.03) .42 .16 .15 .18
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Less Distributions
Dividends (from net
investment income).... (.03) (.04) (.04) (.04) (.05) (.06) (.05) (.09) -- --
Distributions (from
capital gains)........ (.04) (.18) (.17) (.17) (.13) (.02) (.25) (.20) -- --
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Total Distributions.. (.07) (.22) (.21) (.21) (.18) (.08) (.30) (.29) -- --
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
NET ASSET VALUE, END OF
PERIOD................. $2.13 $ 1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $1.69 $ 1.82 $ 1.67
===== ====== ====== ====== ====== ====== ====== ===== ====== ======
Total Return(c)......... 36.6% 3.7%* 12.0% 3.2% 22.6% (3.8)% 24.1% 8.7% 8.3% 11.3%
Net Assets, End of Pe-
riod ($ millions)...... $ 533 $ 375 $ 424 $ 398 $ 434 $ 377 $ 437 $ 40 $ 43 $ 29
Ratio of Expenses to
Average Net Assets..... .50% .50% .50% .50% .50% .50% .50% .50% .50% .51%
Ratio of Net Income to
Average Net Assets..... 1.57% 2.11% 1.92% 2.02% 2.49% 3.33% 2.54% 3.07% 1.97% 2.03%
Portfolio Turnover
Rate(a)................ 33.63% 129.80% 93.86% 129.40% 158.35% 108.75% 117.60% 56.94% 150.74% 141.40%
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*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,
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $ 1.27 $1.40 $ 1.42 $ 1.28
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Income From Investment
Operations
Net Investment Income.. .09 .09 .09 .09 .13 .09 -- .09 .07 .06
Net Gains or Losses on
Securities
(both realized and
unrealized)........... .16 (.14) .09 .03 .08 (.02) .16 (.01) (.09) .08
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Total From Investment
Operations.......... .25 (.05) .18 .12 .21 .07 .16 .08 (.02) .14
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Less Distributions
Dividends (from net
investment income).... (.09) (.09) (.09) (.09) (.11) (.11) (.06) (.21) -- --
Distributions (from
capital gains)........ -- -- (.09) (.03) (.02) -- -- -- -- --
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
Total Distributions.. (.09) (.09) (.18) (.12) (.13) (.11) (.06) (.21) -- --
----- ------ ------ ------ ------ ------ ------ ----- ------ ------
NET ASSET VALUE, END OF
PERIOD................. $1.43 $ 1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $1.27 $ 1.40 $ 1.42
===== ====== ====== ====== ====== ====== ====== ===== ====== ======
Total Return(c)......... 19.4% (3.2%) 13.1% 8.6% 14.0% 3.5% 11.1% 6.2% (1.9)% 10.5%
Net Assets, End of Pe-
riod ($ millions)...... $ 311 $ 249 $ 263 $ 233 $ 187 $ 163 $ 109 $ 5 $ 4 $ 3
Ratio of Expenses to
Average Net Assets..... .50% .50% .50% .50% .50% .50% .50% .50% .50% .51%
Ratio of Net Income to
Average Net Assets..... 6.64% 6.32% 6.30% 6.93% 7.59% 8.57% 8.55% 8.25% 7.97% 8.26%
Portfolio Turnover
Rate(a)................ 41.93% 51.14% 103.16% 112.40% 95.00% 129.02% 47.70% 75.61% 47.41% 63.36%
</TABLE>
3
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY INDEX SHORT-TERM MID-TERM AGGRESSIVE
FUND BOND FUND BOND FUND EQUITY FUND
-------------------- -------------------- --------------------- --------------
YEARS ENDED YEARS ENDED YEARS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
-------------------- -------------------- --------------------- --------------
1995 1994 1993(1) 1995 1994 1993(1) 1995 1994 1993(1) 1995 1994(2)
----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $1.02 $1.04 $ 1.00 $1.00 $1.02 $ 1.00 $ .91 $ .99 $ 1.00 $ 1.05 $ 1.00
----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------
Income From Investment
Operations
Net Investment Income.. .02 .03 .02 .06 .04 .02 .06 .03 .04 .01 .01
Net Gains or Losses on
Securities
(both realized and
unrealized)........... .36 (.01) .04 .02 (.02) .02 0.9 (.07) .04 .39 .05
----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------
Total From Investment
Operations.......... .38 .02 .06 .08 .02 .04 .15 (.04) .08 .40 .06
----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------
Less Distributions
Dividends (from net
investment income).... (.03) (.03) (.02) (.06) (.04) (.02) (.06) (.04) (.04) (.01) (.01)
Distributions (from
capital gains)........ (.02) (.01) -- -- -- -- -- -- (.05) (0.9) --
----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------
Total Distributions.. (.05) (.04) (.02) (.06) (.04) (.02) (.06) (.04) (.09) (.10) (.01)
----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................. $1.35 $1.02 $ 1.04 $1.02 $1.00 $ 1.02 $1.00 $0.91 $ 0.99 $ 1.35 $ 1.05
===== ===== ====== ===== ===== ====== ===== ===== ====== ====== ======
Total Return(c)......... 36.6% 1.5% (b)6.2% 7.7% 1.4% (b)4.6% 16.3% (3.7)% (b)7.3% 38.2% (b)6.0%
Net Assets, End of
Period ($ millions).... $ 43 $ 26 $ 27 $ 3 $ 2 $ 3 $ 24 $ 24 $ 19 $ 59 $ 27
Ratio of Expenses to
Average Net Assets..... .13% .13% .11% .50% .48% .45% .50% .50% .45% .85% .56%
Ratio of Net Income to
Average Net Assets..... 2.50% 2.67% 2.43% 4.65% 3.51% 3.09% 5.73% 4.71% 4.13% .65% .7%
Portfolio Turnover
Rate(a)................ 13.99% 6.59% 1.44% 16.47% 0.00% 122.37% 73.72% 7.52% 162.03% 116.52% 60.86%
</TABLE>
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(1) The Fund commenced operations on February 5, 1993.
(2) The Fund commenced operations on May 2, 1994.
<TABLE>
<CAPTION>
COMPOSITE FUND
--------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
----- ------ ------ ------ ------ ------ ----- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $1.46 $1.60 $ 1.51 $1.35
----- ------ ------ ------ ------ ------ ----- ----- ------ -----
Income From Investment
Operations
Net Investment Income.. .08 .05 .05 .06 .19 .14 .11 .08 .05 .03
Net Gains or Losses on
Securities (both
realized and
unrealized)........... .27 (.10) .22 .03 .09 (.09) .17 .05 .04 .13
----- ------ ------ ------ ------ ------ ----- ----- ------ -----
Total From Investment
Operations.......... .35 (.05) .27 .09 .28 .05 .28 .13 .09 .16
----- ------ ------ ------ ------ ------ ----- ----- ------ -----
Less Distributions
Dividends (from net
investment income).... (.08) (.07) (.05) (.06) (.07) (.10) (.08) (.17) -- --
Distributions (from
capital gains)........ (.03) (.02) (.10) (.05) (.13) (.05) (.03) (.10) -- --
----- ------ ------ ------ ------ ------ ----- ----- ------ -----
Total Distributions.. (.11) (.09) (.15) (.11) (.20) (.15) (.11) (.27) -- --
----- ------ ------ ------ ------ ------ ----- ----- ------ -----
NET ASSET VALUE, END OF
PERIOD................. $1.81 $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $1.63 $1.46 $ 1.60 $1.51
===== ====== ====== ====== ====== ====== ===== ===== ====== =====
Total Return(c)......... 21.9% 3.0% 16.9% 5.9% 16.4% 1.5% 17.2% 7.9% 5.2% 11.4%
Net Assets, End of
Period ($ millions).... $ 276 $ 233 $ 228 $ 138 $ 111 $ 79 $ 67 $ 51 $ 45 $ 30
Ratio of Expenses to
Average Net Assets..... .50% .50% .50% .50% .50% .50% .50% .50% .50% .51%
Ratio of Net Income to
Average Net Assets..... 4.30% 3.88% 3.48% 4.01% 4.75% 6.20% 5.48% 5.94% 5.10% 5.35%
Portfolio Turnover
Rate(a)................ 76.84% 113.86% 100.76% 107.69% 134.91% 105.06% 87.32% 50.88% 124.04% 98.74%
</TABLE>
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(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b) Not annualized.
(c) 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.
4
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Financial Highlights.................................................... 2
General Description of the Investment Company........................... 5
Money Market Fund Yield Information..................................... 5
Investment Objectives and Policies of the Funds......................... 5
Investment Advisory Arrangements........................................ 13
The Funds' Expenses..................................................... 15
Portfolio Transactions.................................................. 15
Purchase of Shares...................................................... 15
Redemption of Shares.................................................... 15
Dividends, Distributions and Taxes...................................... 15
Additional Information.................................................. 16
</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 320
Park Avenue, New York 10022.
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 26, 1995, 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.................................... 5.69%
Excluding gains and losses.................................... 5.69%
Average maturity of portfolio at end of period.................. 23 days
</TABLE>
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
5
<PAGE>
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.
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.
6
<PAGE>
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 three subadvisers (each a "Subadviser", and
together the "Subadvisers"), under a subadvisory agreement (each a
"Subadvisory Agreement") between the Adviser and each of the Subadvisers, and
the Adviser. The Adviser will allocate the Active Assets to maintain, to the
extent practicable under current market conditions, approximately equal
amounts with the Subadvisers and the Adviser. The Subadvisers are Palley-
Needelman Asset Management, Inc. ("Palley-Needelman"), Oak Associates, Ltd.
and Fred Alger Management, Inc. ("Alger Management"). 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. The Adviser
generally will invest in stocks that it considers undervalued. Its approach is
to identify companies with strong financials, substantial cash flow,
conservative accounting, usually low debt-to-equity ratios and average market
capitalization generally below $1 billion. Some of the companies whose stocks
are purchased by Oak Associates, or by the Adviser for its portion of the
Active Assets, may have limited Wall Street coverage and low institutional
ownership.
Each of the Subadvisers and the Adviser 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.
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
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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."
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
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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.
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 equity
securities in which the Active Assets of the All America Fund may be invested.
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.
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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 between 25 and 35 at any time, issued by leading companies in
the strong sectors of the economy.
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 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
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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 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
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.
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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 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
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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, 320 Park
Avenue, New York, New York 10022 (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 $7.5 billion at December 31, 1995.
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 1995,
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, 1995, Palley-Needelman managed
approximately $3.4 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 an Ohio limited liability company that prior to 1996
was a sole proprietorship of James Dravo Oelschlager doing business as Oak
Associates. It provides investment management services for individual and
corporate clients, primarily in connection with retirement plans. At December
31, 1995, Oak Associates had assets under management of approximately $3
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, 1995, Alger Management had approximately $4.8
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
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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%; and
Alger Management, .45%; of the value of the net assets for which the
Subadviser is providing investment advisory services.
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
three Subadvisers and the Adviser:
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.
Frederick M. Gallagher, Senior Vice President of the Adviser since June 1995,
is responsible for the investments of the Adviser's portion of the Active
Assets of the Fund. Mr. Gallagher's previous position prior to joining the
Adviser was as Senior Vice President/Equity Investments at Continental Asset
Management Corporation. He has more than 30 years of experience in the
investment management business.
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, Senior 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, 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. I. Charles Rinaldi, Senior Vice President of the
Adviser, has responsibility for setting the investment strategy and overseeing
the day-to-day operations of the Aggressive Value Portfolio and the Aggressive
Growth 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.
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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."
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
15
<PAGE>
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 and, for 1996, Friday July 5 and Thursday December 26, when the
Investment Company is closed ("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 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
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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.
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, 1996. Arthur Andersen LLP also acts as the independent auditors
of the Insurance Companies.
CUSTODIAN
The Chase Manhattan Bank, N.A., New York, New York, acts as Custodian of the
Investment Company's assets for the Funds.
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LEGAL COUNSEL
Graham & James LLP, New York, New York, is counsel for the Investment Company.
Graham & James LLP, 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, 320 Park Avenue, New
York, New York 10022.
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, 1996, 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.
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
320 PARK AVENUE, NEW YORK, NEW YORK 10022
(212) 224-1600
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
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, 1996 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............................................ 2
INVESTMENT POLICIES AND LIMITATIONS........................................ 2
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...................................... 13
INDEPENDENT AUDITORS....................................................... 14
LEGAL MATTERS.............................................................. 14
CUSTODIAN.................................................................. 15
DISTRIBUTION ARRANGEMENTS.................................................. 15
FINANCIAL STATEMENTS....................................................... 15
</TABLE>
<PAGE>
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.
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.
SAI-2
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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 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.
SAI-3
<PAGE>
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 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
SAI-4
<PAGE>
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.
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.
SAI-5
<PAGE>
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;
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.
SAI-6
<PAGE>
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, Executive Vice President and Assistant to
320 Park Avenue President the President of the Adviser since March
New York, NY 10022 and Director 1996; President and Chief Executive
Officer of the Adviser from June 1994 to
March 1996; Executive 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
320 Park Avenue President, Chief Financial Financial Officer since September 1993 and
New York, NY 10022 Officer, Treasurer Director since May 1993 of the Adviser.
and Director Senior Executive Vice President and Chief
Financial Officer of Mutual of America
Life and American Life since February
1992. Prior thereto, Executive Vice
President and Chief Financial Officer 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
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
Stanley M. Lenkowicz Secretary Senior Vice President and Deputy General
320 Park Avenue Counsel of Mutual of America Life since
New York, NY 10022 March 1995; Senior Vice President and
Associate General Counsel from October
1992 to March 1995. Prior thereto, Vice
President and Counsel of Home Life
Insurance Company.
</TABLE>
SAI-7
<PAGE>
<TABLE>
<CAPTION>
POSITION HELD WITH PRINCIPAL OCCUPATIONS
NAME AND ADDRESS THE INVESTMENT COMPANY DURING PAST 5 YEARS
---------------- ---------------------- ------------------------------------------
<S> <C> <C>
Patrick A. Burns Senior Executive Vice President Senior Executive Vice President and
320 Park Avenue and General Counsel General Counsel since September 1993 of
New York, NY 10022 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. Set forth below is a table showing
compensation paid to the directors during 1995.
<TABLE>
<CAPTION>
PENSION OR TOTAL COMPENSATION FROM
AGGREGATE COMPENSATION RETIREMENT BENEFITS ESTIMATED ANNUAL INVESTMENT COMPANY AND
FROM ACCRUED AS PART OF BENEFITS UPON OTHER INVESMENT
NAME OF DIRECTOR INVESTMENT COMPANY FUND EXPENSES RETIREMENT COMPANIES IN COMPLEX
---------------- ---------------------- ------------------- ---------------- -----------------------
<S> <C> <C> <C> <C>
Manfred Altstadt........ None(1) None None None
Dolores J. Morrissey.... None(1) None None None(1)
Peter J. Flanagan....... $7,250(2) None None $7,250(2)
George J. Mentz......... $8,000(2) None None $8,000(2)
James J. Needham........ $6,750(2) None None $6,750(2)
Howard J. Nolan......... $8,000(2) None None $8,000(2)
</TABLE>
- -------
(1) As an employee of the Adviser or its affiliate and as "interested persons"
of the Investment Company, Ms. Morrissey and Mr. Altstadt serve as
directors of the Investment Company without compensation.
(2) Directors who are not "interested persons" of the Investment Company
receive from the Investment Company an annual retainer of $10,000
(previously $5,000) and a fee of $750 for each Board or Committee meeting
attended. In addition, business travel and accident insurance and life
insurance of $75,000 is provided.
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 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 1995 by the Investment Company to Mutual of America Life
was $5,627,349, of which $211,088 was paid by the Money Market Fund;
$2,248,272 was paid by the All America Fund; $1,391,001 was paid by the Bond
Fund; $1,272,077 was paid by the Composite Fund; $40,145 was paid by the
Equity Index Fund; $14,478 was paid by the Short-Term Bond Fund; $124,503 was
paid by the Mid-Term Bond Fund; and $325,785 was paid by the Aggressive Equity
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;
SAI-8
<PAGE>
$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 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 1995. 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 a portion of the
approximately 30% of the assets allocated to the All America Fund (the "Active
Assets"), the Adviser engages subadvisory services of three subadvisers--
Palley-Needelman Asset Management, Inc. ("Palley-Needelman"), Oak Associates,
Ltd. ("Oak Associates") and Fred Alger Management, Inc. ("Alger Management"),
(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.
SAI-9
<PAGE>
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%; and Alger Management,
.45%; of the value of the net assets for which the Subadviser is providing
investment advisory services. The Subadvisory Agreement between the Adviser
and Mitchell Hutchins Institutional Investors, Inc. ("Mitchell Hutchins") was
terminated on June 15, 1995, and the Subadvisory Agreement between the Adviser
and C.J. Lawrence/Deutsche Bank Securities Corporation ("C.J. Lawrence") was
terminated on September 30, 1995, which provided for subadvisory fees of .50%
for Mitchell Hutchins, and .50% of the first $15 million and .30% thereafter
for C.J. Lawrence, of the value of the net assets for which subadvisory
services were provided.
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. The fees paid during
1995 by the Adviser to the Subadvisers totalled $654,396, and the amounts to
each Subadviser were Palley-Needelman, $132,923; Oak Associates, $150,434;
Alger Management, $236,298; Mitchell Hutchins, $72,875; and C.J. Lawrence,
$61,866.
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 1995, 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 $79,000, which represented approximately 7.9% of the total brokerage
commissions paid by the Investment Company and approximately 5.8% of the
aggregate dollars of transactions effected by the Investment Company. In
addition, Deutsche Bank Securities Corporation and Fred Alger & Co., each an
affiliate of a Subadviser, received brokerage commissions during 1995.
Deutsche Bank Securities Corporation received $12,000 and Alger & Co. received
$61,000, which represented approximately 1.2% and 6.1%, respectively, of the
total brokerage commissions paid by the Investment Company and approximately
1.42% and 4.52%, respectively, of the aggregate dollars of transactions
effected by the Investment Company. 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, Deutsche Bank Securities
Corporation and Fred Alger & Co., each an affiliate of a Subadviser, received
brokerage commissions during 1994. 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 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
SAI-10
<PAGE>
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.
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 and, for 1996, Friday July 5 when the Investment
Company is closed ("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
SAI-11
<PAGE>
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 seven-day period ended December 31, 1995. Yields may fluctuate
substantially from the example shown.
1. Value for December 26, 1995
2. Value for December 26, 1995 (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)
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.
SAI-12
<PAGE>
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).
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.
SAI-13
<PAGE>
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.
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.
SAI-14
<PAGE>
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.
CUSTODIAN
The Custodian of the Investment Company's Fund securities and other assets is
The Chase Manhattan Bank, N.A., New York, New York 10019.
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.
FINANCIAL STATEMENTS
Financial statements of the Investment Corporation for the year ended December
31, 1995 are included as follows:
<TABLE>
<S> <C>
President's Message........................................................ 1
Portfolio Management Discussions........................................... 2
Portfolio of Investments in Securities:
Money Market Fund........................................................ 9
All America Fund......................................................... 10
Equity Index Fund........................................................ 16
Bond Fund................................................................ 21
Short-Term Bond Fund..................................................... 23
Mid-Term Bond Fund....................................................... 24
Composite Fund........................................................... 25
Aggressive Equity Fund................................................... 29
Statement of Assets and Liabilities........................................ 32
Statement of Operations.................................................... 33
Statements of Changes in Net Assets........................................ 34
Financial Highlights....................................................... 36
Notes to Financial Statements.............................................. 41
Report of Independent Public Accountants................................... 45
</TABLE>
SAI-15
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
The economy continued to expand throughout 1995 although at a slower pace
than in 1994. However, investors in both the stock and bond market enjoyed one
of the most productive years in some time. The Dow Jones Industrial average
and the Standard & Poor's 500 Stock Index finished the year with increases of
36.6% and 37.5% respectively. The fixed income market responded across the
maturity spectrum with the yield curve ending 1995 much flatter than it began.
Long treasuries recorded the strongest performance while the broad market
averages returned over 19% for the year.
In the first half of the year the Federal Reserve twice raised rates to
control inflation, but slow economic growth and low inflation resulted in two
rate reductions later in the year. Growth is expected to continue slowly in
the first half of 1996, gaining strength in the latter part of the year.
The principal drivers of the markets' performance in 1995 are still
potential sources of market strength in 1996; a slowly growing economy, low
inflation, good corporate earnings and strong fund flows into mutual funds.
The stock market is expected to show continued strength throughout the year
with corrections occurring in response to disappointing news and the fixed
income market is expected to perform within a narrow trading range. The yield
curve may steepen if the Federal Reserve continues to use monetary policy to
stimulate economic growth. The market will be affected by national politics
including the Presidential election and the continuing budget impasse.
We are pleased to provide you the Annual Report of the Mutual of America
Investment Corporation for the year ending December 31, 1995. Shown below are
the total return figures for each of the Funds of the Mutual of America
Investment Corporation.
TWELVE MONTHS TO DECEMBER 31, 1995
<TABLE>
<S> <C>
Money Market Fund................................................... + 5.8%
All America Fund.................................................... +36.6%
Equity Index Fund................................................... +36.6%
Bond Fund........................................................... +19.4%
Short-Term Bond Fund................................................ + 7.7%
Mid-Term Bond Fund.................................................. +16.3%
Composite Fund...................................................... +21.9%
Aggressive Equity Fund.............................................. +38.2%
</TABLE>
Please note that the above total return performance figures do not reflect the
deduction of Separate Account fees and expenses which are imposed by Mutual of
America Life Insurance Company and American Life Insurance Company of New
York, respectively.
On the pages which immediately follow are brief presentations for each fund
(excepting the Money Market Fund) of its respective:
.historical total return achieved over specified periods, expressed as an
average annual rate and as a cumulative rate;
.equivalent in dollars of a $10,000 hypothetical investment at the
beginning of each specified period; and
.historical performance compared with an applicable index.
The respective portfolios of each fund and the financial statements are
presented in the pages which then 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
1
<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 Fund
outperformed the Salomon Brothers 3-month Treasury Bill Index and the Donohue
Money Market Fund average yield for the last six months and all of 1995.
THE ALL AMERICA FUND
The investment objective of approximately 60% of assets are to provide
investment results that to the extent practical correspond to the performance
of the Standard & Poor's 500 Composite Index (S&P 500).The investment
objective of the remaining assets is to achieve a high level of return by
means of a diversified portfolio. These assets are managed by three sub-
advisors and by Mutual of America Capital Management Corporation. The heavy
weighting of technology stocks by several of these portfolios contributed to
the Fund's being slightly behind the S&P 500 for the second half of the year,
as these stocks experienced some downward pressure late in the year. However,
total returns for the year were 36.6%, slightly ahead of the benchmark index
(80% S&P 500, 10% Wilshire Small Company Growth Index and 10% Russell 2000
Index) which returned 36.2%.
[ALL AMERICA GRAPH]
12/31/95
ALL AMERICA FUND BLENDED INDEX
---------------- -------------
ANNUAL
ANNUAL SINCE SINCE
INCEPTION INCEPTION
01/85
- ------- --------- ---------
01/85 10,000 10,000
12/85 14,129 13,157
12/86 15,809 15,553
12/87 17,215 16,357
12/88 18,920 19,056
12/89 23,830 25,045
12/90 23,471 24,246
12/91 29,203 31,653
12/92 30,129 34,084
12/93 33,791 37,499
05/94 33,105 36,722
12/94 34,223 37,696
12/95 46,741 51,343
All America Fund*
----------------
Total Return
Period Growth ------------
Ended of Annual
12/31/95 $10,000 Cumulative Average
- -------- ------- ---------- -------
1 Year $13,658 36.6% 36.6%
Since 5/2/94
(Inception) $14,119 41.2% 23.0%
Blended Index**
----------------
Total Return
Period Growth ------------
Ended of Annual
12/31/95 $10,000 Cumulative Average
- -------- ------- ---------- -------
1 Year $13,620 36.2% 36.2%
Since 5/2/94
(Inception) $13,982 39.8% 22.3%
*Prior to May 2, 1994, the All America Fund was known as the Stock Fund and had
a different Investment objective and no sub-advisors. Consequently, the growth
of a $10,000 investment shown on the above graph prior to May 2, 1994 reflects
performance results achieved with the Stock Fund's objective and sole advisor.
As of the date of change the growth of an original $10,000 investment to $33,105
represented a cumulative total return of 231.1%, or an average annual total
return of 13.7%
** The Blended Index, for the comparison of the Fund's performance, begins on
May 2, 1994. This index is an average consisting of 80% of the S & P 500 Index,
10% of the Wilshire Small Company Growth Index and 10% of the Russell 2000
Index. Prior to May 2, 1994 the Fund as compared to the S & P 500 Index which
accumulated to $36,722, representing a cumulative total return of 267.2% or an
average annual total return of 14.9%.
2
<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 Standard & Poor's 500 Index (S&P 500). For 1995, the Fund returned
36.6% vs 37.5% for the Index. Contributors to the market's performance include
declining interest rates, strong corporate earnings, and intense merger and
share repurchase activity.
[EQUITY INDEX GRAPH]
S & P 500
---------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $13,750 37.5% 37.5%
Since
Inception* $14,904 49.0% 14.7%
EQUITY INDEX FUND
-----------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $13,662 36.6% 36.6%
Since
Inception* $14,729 47.3% 14.3%
3
<PAGE>
THE BOND FUND
This fund seeks a high level of return consistent with preservation of
capital through investment in publicly traded debt securities. The Fund's
return has been enhanced by its focus on corporate bonds which yield more than
comparable segments of the Lehman Brothers Corporate Bond Index. Additionally,
its average maturity is approximately 10% longer than the Index and this has
had a beneficial impact as rates have declined. For 1995 the Fund returned
19.4% vs 19.2% for the Index.
[BOND GRAPH]
12/31/95 BOND FUND LEHMAN BROS.
SINCE SINCE
INCEPTION INCEPTION
--------- ---------
01/85 10,000 10,000
12/85 12,122 12,130
12/86 13,464 14,026
12/87 12,269 14,349
12/88 14,079 15,437
12/89 15,870 17,634
12/90 16,667 19,094
12/91 19,284 22,174
12/92 20,940 23,857
12/93 23,715 26,489
12/94 22,974 25,563
12/95 27,439 30,481
Bond Fund
----------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $11,943 19.4% 19.4%
5 Year $16,463 64.6% 10.5%
10 Years $22,636 126.4% 8.5%
Since
Inception* $27,439 174.4% 9.6%
Lehman Bros. Gov't./Corp. Bond Index
------------------------------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $11,924 19.2% 19.2%
5 Year $15,964 59.6% 9.8%
10 Years $25,128 151.3% 9.7%
Since
Inception* $30,481 204.8% 10.7%
4
<PAGE>
THE SHORT-TERM BOND FUND
The Short-term Bond Fund maintains an average maturity between one and three
years. It's objectives are to achieve a high total return within this maturity
constraint and to maintain principal value. For 1995, the Fund returned 7.7%
vs 10.9% for the Salomon Brothers 1-3 Year Bond Index. The average life of
investments in the Fund is shorter than the Index and a move toward lower
rates caused the returns from longer issues in the Index to outperform the
assets in the Fund.
[SHORT TERM GRAPH]
Short
12/31/95 Term Fund
- -------- ---------
SINCE SINCE
ANNUAL INCEPTION INCEPTION
- ------ --------- ---------
02/93 10,000 10,000
12/93 10,449 10,448
12/94 10,600 10,511
12/95 11,421 11,655
Short-Term Bond Fund
--------------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $10,774 7.7% 7.7%
Since
Inception* $11,421 14.2% 4.7%
Salomon Bros. 1-3 Year Bond Index
---------------------------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $11,089 10.9% 10.9%
Since
Inception* $11,655 16.6% 5.4%
5
<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 a
broad industry diversification is permitted. For 1995, the Fund achieved a
16.3% return, comparable to the Index. The Fund emphasized U.S. Treasury
securities due to the historically narrow spreads between corporates and
governments in its maturity range.
[MID TERM GRAPH]
MID TERM
12/31/95 FUND
- -------- --------
SINCE SINCE
ANNUAL INCEPTION INCEPTION
- ------ --------- ---------
02/93 10,000 10,000
12/93 10,727 10,722
12/94 10,355 10,436
12/95 12,042 12,197
Mid-Term Bond Fund
------------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $11,629 16.3% 16.3%
Since
Inception* $12,042 20.4% 6.6%
Salomon Bros. 3-7 Year Bond Index
---------------------------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $11,688 16.9% 16.9%
Since
Inception* $12,197 22.0% 7.1%
6
<PAGE>
THE COMPOSITE FUND
This is a balanced Fund which seeks to achieve a high level of total return
through appreciation of capital and current income. The proportion of assets
invested in each type of security varies depending on market conditions and
outlook. The stock and bond markets remained strong through the second half of
the year. The Standard & Poor's 500 returned 37.5%, its strongest performance
in years. The bond market, buoyed by sharply declining interest rates and
easing by the Federal Reserve, allowed the broad market averages to return
19.2% for the year. The total Fund returned 21.9% for the year, below the
benchmark index (50% S&P 500, 50% Lehman Brothers Government/Corporate) which
returned 28.4%.
The equity portion of the Fund was behind the comparable index. The Fund's
value-oriented approach lead to an underweighting in technology stocks, which
were a major contributor to the stock market advance. In addition, a
conservative asset allocation in the first half of the year had a limiting
effect on the equity portion of the Fund.
The bond portion of the Fund outperformed the benchmark index (Lehman
Brothers Government/Corporate Index) for the year. Bond returns were enhanced
by an emphasis on corporate bonds.
[CORPORATE FUND GRAPH]
S&P
12/31/95 Composite Lehman
- -------- --------- ------
SINCE SINCE
INCEPTION INCEPTION
ANNUAL ANNUAL
- ------ ---------- ----------
01/85 10,000 10,000
12/85 12,802 12,644
12/86 14,330 14,783
12/87 15,144 15,336
12/88 16,520 17,183
12/89 19,643 21,107
12/90 20,229 21,644
12/91 23,899 26,695
12/92 25,319 28,733
12/93 29,667 31,753
12/94 28,756 31,409
12/95 35,054 40,332
Composite Fund
--------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $12,190 21.9% 21.9%
5 Year $17,328 73.3% 11.6%
10 Years $27,381 173.8% 10.6%
Since
Inception* $35,054 250.5% 12.1%
50% S&P 500 Index
-----------------
50% Lehman Bros. Gov't./Corp. Bond Index
________________________________________
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $12,841 28.4% 28.4%
5 Year $18,634 86.3% 13.3%
10 Years $31,899 219.0% 12.3%
Since
Inception* $40,332 303.3% 13.5%
7
<PAGE>
THE AGGRESSIVE EQUITY FUND
The investment objective of the Fund is to aggressively manage an equity
portfolio which over time will outperform the broad market averages.
Approximately 50% of the Fund's assets are invested in an aggressive growth
manner and the other 50% in an aggressive value manner. The Fund's 38.2%
return exceeded the 37.5% return of the S&P 500 Index. Positive contributors
to performance included an emphasis on technology stocks which performed
strongly for most of the year, only experiencing a correction late in the
year, and favorable energy stock selection.
[AGGRESSIVE EQUITY FUND GRAPH]
12/31/95 AGGRESIVE S&P
EQUITY
S&P
500
SINCE SINCE
ANNUAL INCEPTION INCEPTION
- ------ --------- ---------
5/94 10,000 10,000
12/94 10,597 10,344
12/95 14,640 14,223
Aggressive Equity Fund
----------------------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $13,815 38.2% 38.2%
Since
Inception* $14,640 46.4% 25.7%
S & P 500
---------
Total Return
Period Growth ------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- -------
1 Year $13,750 37.5% 37.5%
Since
Inception* $14,223 42.2% 23.6%
8
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATING* RATE MATURITY AMOUNT COST
------- -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (100.0%):
Air Products & Chemicals
Corp....................... A1/P1 5.67% 01/18/96 $1,950,000 $ 1,944,128
Alabama Power Co............ A1/P1 5.73 01/16/96 2,045,000 2,039,445
Albertson's, Inc............ A1/P1 5.70 01/11/96 2,285,000 2,280,636
Albertson's, Inc............ A1/P1 5.70 01/17/96 1,200,000 1,196,567
American Express Credit
Corp....................... A1/P1 5.69 01/02/96 2,255,000 2,253,921
American Express Credit
Corp....................... A1/P1 5.66 02/02/96 1,230,000 1,223,402
Ameritech Corp.............. A1+/P1 5.60 02/06/96 1,755,000 1,744,590
AT&T Capital Corp........... A1/P1 5.71 01/31/96 1,800,000 1,790,828
British Gas Capital Corp.... A1+/P1 5.68 01/24/96 3,140,000 3,127,552
Canadian Wheat Board........ A1+/P1 5.70 01/08/96 2,000,000 1,997,130
Cargill Financial Svcs.
Corp....................... A1+/P1 5.71 01/12/96 2,940,000 2,933,896
Chevron Oil Finance Co...... A1+/P1 5.72 01/19/96 2,000,000 1,993,621
Chevron Oil Finance Co...... A1+/P1 5.65 02/02/96 1,485,000 1,477,048
Consolidated Natural Gas
Corp....................... A1+/P1 5.70 01/26/96 125,000 124,464
Exxon Asset Mgmt............ A1+/P1 5.68 01/03/96 3,155,000 3,152,991
Federal Home Loan Bank...... A1/P1 5.48 01/22/96 10,755,000 10,717,340
Ford Motor Credit Corp...... A1/P1 5.72 01/02/96 700,000 699,663
Ford Motor Credit Corp...... A1/P1 5.75 01/18/96 1,895,000 1,889,219
Ford Motor Credit Corp...... A1/P1 5.70 01/29/96 415,000 413,019
Gannett Co.................. A1/P1 5.85 01/12/96 3,600,000 3,592,393
General Electric Capital
Corp....................... A1+/P1 5.70 01/19/96 2,550,000 2,541,892
General Electric Co......... A1+/P1 5.72 01/18/96 750,000 747,727
Great Lakes Chemical........ A1+/P1 5.70 02/02/96 2,000,000 1,989,192
Heinz (H.J.) Co............. A1/P1 5.55 02/13/96 3,000,000 2,979,184
Interstate Power Corp....... A1/P1 5.77 01/16/96 1,000,000 997,262
Interstate Power Corp....... A1/P1 5.75 01/30/96 1,000,000 995,028
Interstate Power Corp....... A1/P1 5.75 01/31/96 1,300,000 1,293,329
Motorola Credit............. A1+/P1 5.65 01/12/96 875,000 873,206
Nestle Capital Corp......... A1+/P1 5.85 01/03/96 1,000,000 999,350
PHH Corp.................... A1/P1 5.73 01/26/96 1,645,000 1,637,904
Potomac Electric Power...... A1/P1 5.60 02/02/96 3,600,000 3,580,957
Sony Capital Corp........... A1/P1 5.71 02/01/96 2,650,000 2,636,065
TDK USA Corp................ A1+/P1 5.75 01/22/96 1,100,000 1,095,940
Toyota Motor Credit Corp.... A1+/P1 5.72 01/17/96 1,266,000 1,262,362
Toyota Motor Credit Corp.... A1+/P1 5.70 01/19/96 2,000,000 1,993,640
USL Capital Corp............ A1/P1 5.68 02/08/96 1,165,000 1,157,621
-----------
TOTAL SHORT-TERM DEBT
SECURITIES:
(Cost: $73,372,512) 100.0%.. $73,372,512
===========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investors
Services, Inc.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION:
COMMON STOCKS:
3Com Corp................................................ 11,400 $ 531,525
Abbott Laboratories...................................... 54,600 2,279,550
Advanced Micro Devices, Inc.............................. 7,200 118,800
Aetna Life & Casualty Co................................. 7,900 547,075
Ahmanson (H.F.) & Co. ................................... 8,100 214,650
Air Products & Chemicals Corp. .......................... 7,700 406,175
Airtouch Communications, Inc. ........................... 34,200 966,150
Alberto Culver Co. Cl B.................................. 1,900 65,312
Albertson's, Inc......................................... 17,500 575,312
Alcan Aluminum Ltd. ..................................... 15,600 485,550
Alco Standard Corp. ..................................... 7,800 355,875
Alexander & Alexander Svcs., Inc. ....................... 3,100 58,900
Allergan, Inc. .......................................... 4,500 146,250
Allied Signal, Inc. ..................................... 19,500 926,250
Allstate Corp. .......................................... 31,000 1,274,875
Alltel Corp.............................................. 13,100 386,450
Aluminum Co. of America.................................. 12,200 645,075
Alza Corp................................................ 5,700 141,075
Amdahl Corp.............................................. 8,200 69,700
Amerada Hess Corp. ...................................... 6,400 339,200
American Brands, Inc..................................... 12,500 557,812
American Electric Power Co............................... 12,900 522,450
American Express Co...................................... 33,500 1,386,062
American General Corp. .................................. 14,100 491,737
American Greetings Corp. Cl A............................ 5,200 143,650
American Home Products Corp.............................. 21,600 2,095,200
American Int'l. Group, Inc............................... 32,800 3,034,000
American Stores Co. ..................................... 10,200 272,850
Ameritech Corp........................................... 38,300 2,259,700
Amgen, Inc. ............................................. 18,400 1,092,500
Amoco Corp. ............................................. 34,300 2,465,312
Amp, Inc. ............................................... 15,000 575,625
AMR Corp................................................. 5,300 393,525
Andrew Corp.............................................. 2,700 103,275
Anheuser Busch Cos., Inc. ............................... 17,600 1,177,000
Apple Computer, Inc. .................................... 8,500 270,937
Applied Materials, Inc. ................................. 12,300 484,312
Archer Daniels Midland Co................................ 36,600 658,800
Armco, Inc............................................... 7,300 42,887
Armstrong World Inds., Inc............................... 2,500 155,000
Asarco, Inc.............................................. 2,900 92,800
Ashland, Inc............................................. 4,400 154,550
AT&T Corp................................................ 110,000 7,122,500
Atlantic Richfield Co. .................................. 11,100 1,229,325
Autodesk, Inc............................................ 3,200 109,600
Automatic Data Processing, Inc........................... 9,900 735,075
Avery Dennison Corp...................................... 3,700 185,462
Avon Products, Inc....................................... 4,700 354,262
Baker Hughes, Inc........................................ 9,800 238,875
Ball Corp. .............................................. 2,100 57,750
Bally Entertainment Corp................................. 3,300 46,200
Baltimore Gas & Electric Co.............................. 10,200 290,700
Banc One Corp. .......................................... 27,000 1,019,250
Bank of Boston Corp. .................................... 7,800 360,750
Bank of New York, Inc. .................................. 13,800 672,750
BankAmerica Corp......................................... 25,600 1,657,600
Bankers Trust New York Corp. ............................ 5,400 359,100
Bard (C.R.), Inc......................................... 3,900 125,775
Barnett Banks, Inc....................................... 6,700 395,300
Barrick Gold Corp. ...................................... 24,400 643,550
Bausch & Lomb, Inc. ..................................... 4,000 158,500
Baxter International, Inc................................ 19,100 799,812
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Becton Dickinson & Co. .................................. 4,600 $ 345,000
Bell Atlantic Corp....................................... 30,200 2,019,625
BellSouth Corp. ......................................... 68,600 2,984,100
Bemis Co. ............................................... 3,700 94,812
Beneficial Corp. ........................................ 3,700 172,512
Bethlehem Steel Corp..................................... 7,800 109,200
Beverly Enterprises, Inc. ............................... 6,800 72,250
Biomet, Inc.............................................. 8,000 143,000
Black & Decker Corp. .................................... 5,900 207,975
Block (H & R), Inc. ..................................... 7,200 291,600
Boatmen's Bancshares, Inc................................ 8,900 363,787
Boeing Co................................................ 23,700 1,857,487
Boise Cascade Corp....................................... 3,300 114,262
Boston Scientific Corp................................... 11,200 551,600
Briggs & Stratton Corp................................... 2,000 86,750
Bristol-Myers Squibb Co. ................................ 35,000 3,005,625
Brown Group, Inc. ....................................... 1,200 17,100
Brown-Forman Corp. Cl B.................................. 4,800 175,200
Browning Ferris Inds., Inc. ............................. 14,700 433,650
Brunos, Inc.............................................. 1 5
Brunswick Corp........................................... 6,600 158,400
Burlington Northern Santa Fe............................. 9,800 764,400
Burlington Resources, Inc................................ 8,700 341,475
Cabletron Systems, Inc................................... 5,000 405,000
Caliber System, Inc...................................... 2,700 132,012
Campbell Soup Co......................................... 17,200 1,032,000
Capital Cities/ABC, Inc. ................................ 10,600 1,307,775
Carolina Power & Light Co. .............................. 10,600 365,700
Caterpillar, Inc......................................... 13,600 799,000
Centex Corp.............................................. 2,000 69,500
Central & South West Corp. .............................. 13,300 370,737
Ceridian Corp............................................ 4,600 189,750
Champion International Corp.............................. 6,700 281,400
Charming Shoppes, Inc.................................... 7,100 20,412
Chase Manhattan Bank..................................... 12,400 751,750
Chemical Banking Corp. .................................. 17,300 1,016,375
Chevron Corp............................................. 45,100 2,367,750
Chrysler Corp............................................ 26,400 1,461,900
Chubb Corp. ............................................. 6,000 580,500
CIGNA Corp. ............................................. 5,200 536,900
Cincinnati Milacron, Inc................................. 2,400 63,000
Cinergy Corp. ........................................... 10,800 330,750
Circuit City Stores, Inc................................. 6,700 185,087
Cisco Systems, Inc....................................... 18,900 1,410,412
Citicorp................................................. 29,400 1,977,150
Clorox Co................................................ 3,600 257,850
Coastal Corp............................................. 7,300 271,925
Coca-Cola Co............................................. 86,700 6,437,475
Colgate-Palmolive Co..................................... 10,100 709,525
Columbia Gas System, Inc................................. 3,500 153,562
Columbia HCA Healthcare Corp............................. 30,800 1,563,100
Comcast Corp. Cl A....................................... 16,600 301,912
Comerica, Inc............................................ 7,900 316,000
Community Psychiatric Centers............................ 3,000 36,750
Compaq Computer Corp..................................... 18,400 883,200
Computer Associates Intl., Inc........................... 16,700 949,812
Computer Sciences Corp................................... 3,800 266,950
Conagra, Inc............................................. 16,500 680,625
Conrail, Inc............................................. 5,400 378,000
Consolidated Edison Co NY, Inc. ......................... 16,200 518,400
Consolidated Freightways, Inc............................ 3,000 79,500
Consolidated Natural Gas Co.............................. 6,500 294,937
Cooper Industries........................................ 7,500 275,625
Cooper Tire & Rubber Co. ................................ 5,800 142,825
Coors (Adolph) Co. Cl B.................................. 2,600 57,525
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION (CONT'D):
CoreStates Financial Corp. .............................. 9,600 $ 363,600
Corning, Inc. ........................................... 15,800 505,600
CPC International, Inc. ................................. 10,100 693,112
Crane Co. ............................................... 2,100 77,437
Cray Research, Inc. ..................................... 1,800 44,550
Crown Cork & Seal Co., Inc............................... 6,300 263,025
CSX Corp................................................. 14,600 666,125
CUC International, Inc................................... 12,300 419,737
Cummins Engine, Inc...................................... 2,800 103,600
Cyprus Amax Minerals Co.................................. 6,400 167,200
Dana Corp. .............................................. 7,000 204,750
Darden Restaurants, Inc. ................................ 11,000 130,625
Data General Corp. ...................................... 2,600 35,750
Dayton Hudson Corp. ..................................... 5,000 375,000
Dean Witter Discover & Co................................ 11,700 549,900
Deere & Co. ............................................. 18,100 638,025
Delta Air Lines, Inc. ................................... 3,500 258,562
Deluxe Corp.............................................. 5,700 165,300
Dial Corp................................................ 6,500 192,562
Digital Equipment Corp................................... 10,400 666,900
Dillard Dept. Stores, Inc................................ 7,800 222,300
Dominion Resources, Inc.................................. 12,000 495,000
Donnelley (R.R.) & Sons Co............................... 10,600 417,375
Dover Corp. ............................................. 7,800 287,625
Dow Chemical Co.......................................... 18,100 1,273,787
Dow Jones & Co., Inc. ................................... 6,700 267,162
Dresser Industries, Inc. ................................ 12,600 307,125
DSC Communications Corp. ................................ 8,000 295,000
DTE Energy Co............................................ 10,000 345,000
Du Pont (E.I.) De Nemours................................ 38,400 2,683,200
Duke Power Co............................................ 14,200 672,725
Dun & Bradstreet Corp.................................... 11,700 757,575
Eastern Enterprises...................................... 1,400 49,350
Eastman Chemical Co...................................... 5,500 344,437
Eastman Kodak Co......................................... 23,600 1,581,200
Eaton Corp............................................... 5,400 289,575
Echlin, Inc. ............................................ 4,100 149,650
Echo Bay Mines, Ltd. .................................... 8,700 90,262
Ecolab, Inc.............................................. 4,500 135,000
EG&G, Inc................................................ 3,600 87,300
Emerson Electric Co...................................... 15,500 1,267,125
Engelhard Corp........................................... 10,000 217,500
Enron Corp............................................... 17,400 663,375
Enserch Corp............................................. 4,700 76,375
Entergy Corp............................................. 15,700 459,225
Exxon Corp. ............................................. 85,800 6,874,725
Federal Express Corp. ................................... 3,900 288,112
Federal Home Loan Mtge Corp.............................. 12,500 1,043,750
Federal National Mtge Assn............................... 18,800 2,333,550
Federal Paper Board Co................................... 3,300 171,187
Federated Department Stores.............................. 14,000 381,500
First Bank System, Inc................................... 9,000 446,625
First Chicago NBD Corp. ................................. 22,203 877,018
First Data Corp. ........................................ 15,400 1,029,875
First Interstate Bancorp................................. 5,200 709,800
First Union Corp......................................... 20,660 1,149,212
Fleet Financial Group, Inc............................... 16,999 692,709
Fleetwood Enterprises, Inc............................... 3,200 82,400
Fleming Cos., Inc. ...................................... 2,600 53,625
Fluor Corp. ............................................. 5,700 376,200
FMC Corp. ............................................... 2,500 169,062
Ford Motor Co. .......................................... 74,200 2,151,800
Foster Wheeler Corp...................................... 2,800 119,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
FPL Group, Inc. ......................................... 12,800 $ 593,600
Freeport-McMoran Copper Cl B............................. 14,000 393,750
Fruit of the Loom, Inc................................... 5,200 126,100
Gannett, Inc. ........................................... 9,700 595,337
Gap, Inc. ............................................... 10,000 420,000
General Dynamics Corp. .................................. 4,400 260,150
General Electric Co...................................... 115,400 8,308,800
General Mills, Inc. ..................................... 11,000 635,250
General Motors Corp...................................... 51,600 2,728,350
General Public Utilities Corp............................ 8,300 282,200
General Re Corp. ........................................ 5,700 883,500
General Signal Corp. .................................... 3,300 106,837
Genuine Parts Co......................................... 8,500 348,500
Georgia Pacific Corp..................................... 6,300 432,337
Giant Food, Inc. ........................................ 4,100 129,150
Giddings & Lewis, Inc. .................................. 2,400 39,600
Gillette Co. ............................................ 30,700 1,600,237
Golden West Financial Corp. ............................. 4,100 226,525
Goodrich (B.F.) Co. ..................................... 1,800 122,625
Goodyear Tire & Rubber Co. .............................. 10,500 476,437
Grainger (W.W.), Inc. ................................... 3,500 231,875
Great Atl. & Pac. Tea Co................................. 2,600 59,800
Great Lakes Chemical Corp................................ 4,500 324,000
Great Western Financial Corp. ........................... 9,400 239,700
GTE Corp................................................. 66,900 2,943,600
Halliburton Co........................................... 7,900 399,937
Handleman Co............................................. 2,300 13,225
Harcourt General, Inc. .................................. 5,000 209,375
Harland (John H.) Co. ................................... 2,100 43,837
Harnischfeger Inds., Inc. ............................... 3,400 113,050
Harrah's Entertainment, Inc. ............................ 7,100 172,175
Harris Corp.............................................. 2,700 147,487
Hasbro, Inc.............................................. 6,100 189,100
Heinz (H.J.) Co. ........................................ 25,500 844,687
Helmerich & Payne, Inc. ................................. 1,700 50,575
Hercules, Inc. .......................................... 7,700 434,087
Hershey Foods Corp. ..................................... 5,300 344,500
Hewlett-Packard Co. ..................................... 35,400 2,964,750
Hilton Hotels Corp. ..................................... 3,300 202,950
Home Depot, Inc.......................................... 32,900 1,575,087
Homestake Mining Co. .................................... 9,500 148,437
Honeywell, Inc........................................... 8,800 427,900
Household International, Inc............................. 6,800 402,050
Houston Industries, Inc.................................. 18,100 438,925
Humana, Inc.............................................. 11,200 306,600
Illinois Tool Works, Inc. ............................... 8,100 477,900
Inco, Ltd................................................ 8,200 272,650
Ingersoll Rand Co. ...................................... 7,500 263,437
Inland Steel, Inc........................................ 3,400 85,425
Intel Corp. ............................................. 56,900 3,229,075
Intergraph Corp. ........................................ 3,200 50,400
International Paper Co................................... 17,600 666,600
Interpublic Group of Cos., Inc........................... 5,400 234,225
Intl. Business Machines Corp............................. 39,300 3,605,775
Intl. Flavors & Fragrances............................... 7,700 369,600
ITT Corp................................................. 8,100 429,300
ITT Hartford Group, Inc.................................. 8,100 391,837
ITT Industries .......................................... 8,100 194,400
James River Corp. of VA.................................. 5,700 137,512
Jefferson-Pilot Corp..................................... 4,950 230,175
Johnson & Johnson........................................ 44,800 3,836,000
Johnson Controls, Inc. .................................. 2,800 192,500
Jostens, Inc............................................. 2,700 65,475
Kaufman & Broad Home Corp. .............................. 2,200 32,725
Kellogg Co............................................... 15,000 1,158,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION (CONT'D):
Kerr-McGee Corp.......................................... 3,600 $ 228,600
KeyCorp.................................................. 16,400 594,500
Kimberly-Clark Corp...................................... 19,200 1,588,800
King World Productions, Inc.............................. 2,500 97,187
Kmart Corp............................................... 31,700 229,825
Knight-Ridder, Inc....................................... 3,400 212,500
Kroger Corp.............................................. 8,500 318,750
Laidlaw, Inc. Cl B....................................... 20,300 208,075
Lilly (Eli) & Co......................................... 38,200 2,148,750
Limited (The), Inc....................................... 24,700 429,162
Lincoln National Corp.................................... 7,200 387,000
Liz Claiborne, Inc....................................... 5,100 141,525
Lockheed Martin Corp..................................... 13,800 1,090,200
Loews Corp............................................... 8,100 634,837
Longs Drug Stores, Inc................................... 1,400 67,025
Loral Corp............................................... 11,900 420,962
Louisiana Land & Exploration............................. 2,300 98,612
Louisiana-Pacific Corp................................... 7,400 179,450
Lowe's Companies, Inc.................................... 11,100 371,850
LSI Logic Corp........................................... 8,800 288,200
Luby's Cafeteria, Inc.................................... 1,600 35,600
Mallinckrodt Group, Inc.................................. 5,300 192,787
Manor Care, Inc.......................................... 4,300 150,500
Marriott International, Inc.............................. 8,600 328,950
Marsh & McLennan Cos., Inc............................... 5,100 452,625
Masco Corp............................................... 11,100 348,262
Mattel, Inc.............................................. 15,300 470,475
May Department Stores Co................................. 17,200 726,700
Maytag Corp.............................................. 7,400 149,850
MBNA Corp................................................ 10,300 379,812
McDermott International, Inc............................. 3,800 83,600
McDonald's Corp.......................................... 47,900 2,161,487
McDonnell Douglas Corp................................... 7,700 708,400
McGraw-Hill Cos., Inc.................................... 3,500 304,937
MCI Communications Corp.................................. 46,800 1,222,650
Mead Corp................................................ 3,700 193,325
Medtronic, Inc........................................... 16,000 894,000
Mellon Bank Corp......................................... 9,800 526,750
Melville Corp............................................ 7,300 224,475
Mercantile Stores, Inc................................... 2,500 115,625
Merck & Co., Inc......................................... 85,400 5,615,050
Meredith Corp............................................ 1,900 79,562
Merrill Lynch & Co., Inc................................. 12,100 617,100
Micron Technology, Inc................................... 14,300 568,425
Microsoft Corp........................................... 40,900 3,588,975
Millipore Corp........................................... 3,100 127,487
Minnesota Mining & Mfg. Co............................... 29,000 1,921,250
Mobil Corp............................................... 27,300 3,057,600
Monsanto Co.............................................. 8,000 980,000
Moore Corp., Ltd......................................... 6,900 128,512
Morgan (J.P.) & Co., Inc................................. 13,000 1,043,250
Morgan Stanley Group, Inc................................ 5,400 435,375
Morton International, Inc................................ 10,200 365,925
Motorola, Inc............................................ 40,700 2,319,900
NACCO Industries, Inc. Cl A.............................. 600 33,300
Nalco Chemical Co........................................ 4,600 138,575
National City Corp....................................... 10,200 337,875
National Semiconductor Corp.............................. 8,500 189,125
National Service Industries.............................. 3,300 106,837
NationsBank Corp......................................... 18,700 1,301,987
Navistar International Corp.............................. 5,200 54,600
New York Times Co. Cl A.................................. 6,700 198,487
Newell Co................................................ 11,000 284,625
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Newmont Mining Corp...................................... 6,500 $ 294,125
Niagara Mohawk Power Corp................................ 10,000 96,250
Nicor, Inc............................................... 3,500 96,250
Nike, Inc. Cl B.......................................... 9,900 689,287
NorAm Energy Corp........................................ 8,600 76,325
Nordstrom, Inc........................................... 5,700 230,850
Norfolk Southern Corp.................................... 9,000 714,375
Northern States Power Co................................. 4,700 230,887
Northern Telecom, Ltd.................................... 17,500 752,500
Northrop Grumman Corp.................................... 3,400 217,600
Norwest Corp............................................. 24,400 805,200
Novell, Inc.............................................. 25,600 364,800
Nucor Corp............................................... 6,000 342,750
NYNEX Corp............................................... 29,500 1,593,000
Occidental Petroleum Corp................................ 22,000 470,250
Ogden Corp............................................... 3,400 72,675
Ohio Edison Co........................................... 10,500 246,750
Oneok, Inc............................................... 1,900 43,462
Oracle Corp.............................................. 30,000 1,271,250
Oryx Energy Co........................................... 7,200 96,300
Outboard Marine Corp..................................... 1,400 28,525
Owens-Corning Fiberglass Corp............................ 3,500 157,062
Paccar, Inc.............................................. 2,700 113,737
Pacific Enterprises...................................... 5,800 163,850
Pacific Gas & Electric Co................................ 29,300 831,387
Pacific Telesis Group.................................... 29,600 995,300
PacifiCorp............................................... 19,600 416,500
Pall Corp................................................ 7,900 212,312
Panhandle Eastern Corp................................... 10,300 287,112
Parker Hannifin Corp..................................... 5,100 174,675
Peco Energy Co........................................... 15,300 460,912
Penney (J.C.) Co., Inc................................... 15,600 742,950
Pennzoil Co.............................................. 3,200 135,200
Peoples Energy Corp...................................... 2,400 76,200
Pep Boys-Manny, Moe & Jack............................... 4,300 110,187
Pepsico, Inc............................................. 54,400 3,039,600
Perkin-Elmer Corp........................................ 2,900 109,475
Pfizer, Inc.............................................. 43,800 2,759,400
Pharmacia & Upjohn, Inc.................................. 34,800 1,348,500
Phelps Dodge Corp........................................ 4,800 298,800
Phillip Morris Cos., Inc................................. 58,000 5,249,000
Phillips Petroleum Co.................................... 18,100 617,662
Pioneer Hi-Bred Intl., Inc............................... 5,800 322,625
Pitney Bowes, Inc........................................ 10,500 493,500
Pittston Services Group.................................. 2,900 90,987
Placer Dome, Inc......................................... 16,500 398,062
PNC Bank Corp............................................ 15,800 509,550
Polaroid Corp............................................ 3,100 146,862
Potlatch Corp............................................ 2,000 80,000
PP&L Resources, Inc...................................... 11,000 275,000
PPG Industries, Inc...................................... 13,500 617,625
Praxair, Inc............................................. 9,700 326,162
Premark International, Inc............................... 4,200 212,625
Price/Costco, Inc........................................ 13,500 205,875
Proctor & Gamble Co...................................... 47,400 3,934,200
Providian Corp........................................... 6,600 268,950
Public Svc. Enterprise Group............................. 16,900 517,562
Pulte Corp............................................... 1,900 63,887
Quaker Oats Co........................................... 9,300 320,850
Ralston Purina Co........................................ 7,300 455,337
Raychem Corp............................................. 3,000 170,625
Raytheon Co.............................................. 16,700 789,075
Reebok International Ltd................................. 5,200 146,900
Republic New York Corp................................... 3,900 242,287
Reynold's Metals Co...................................... 4,400 250,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
INDEX PORTION (CONT'D):
Rite-Aid Corp............................................ 5,800 $ 198,650
Rockwell International Corp.............................. 15,000 793,125
Rohm & Haas Co........................................... 4,700 302,562
Rowan Cos., Inc.......................................... 5,900 58,262
Royal Dutch Petroleum Co................................. 37,000 5,221,625
Rubbermaid, Inc.......................................... 10,900 277,950
Russell Corp............................................. 2,700 74,925
Ryan's Family Steak Houses Inc........................... 3,700 25,900
Ryder System, Inc........................................ 5,500 136,125
Safeco Corp.............................................. 8,700 300,150
Safety Kleen Corp........................................ 4,000 62,500
Salomon, Inc............................................. 7,300 259,150
Santa Fe Energy Res., Inc................................ 6,200 59,675
Sante Fe Pacific Gold Corp............................... 9,100 110,337
Sara Lee Corp............................................ 33,400 1,064,625
SBC Communications, Inc.................................. 42,100 2,420,750
SCE Corp................................................. 30,800 546,700
Schering-Plough Corp..................................... 25,400 1,390,650
Schlumberger, Ltd........................................ 16,700 1,156,475
Scientific-Atlanta, Inc.................................. 5,300 79,500
Seagram, Ltd............................................. 25,800 893,325
Sears Roebuck & Co....................................... 26,900 1,049,100
Service Corp. International.............................. 7,200 316,800
Shared Medical Systems Corp.............................. 1,600 87,000
Sherwin-Williams Co...................................... 5,900 240,425
Shoney's, Inc............................................ 2,900 29,725
Sigma Aldrich Corp....................................... 3,400 168,300
Silicon Graphics, Inc.................................... 11,100 305,250
Snap-On, Inc............................................. 2,800 126,700
Sonat, Inc............................................... 6,000 213,750
Southern Co.............................................. 46,000 1,132,750
Southwest Airlines Co.................................... 9,900 230,175
Springs Industries, Inc. Cl A............................ 1,400 57,925
Sprint Corp.............................................. 24,100 960,987
St. Jude Medical, Inc.................................... 4,800 206,400
St. Paul Companies (The)................................. 5,800 322,625
Stanley Works............................................ 3,100 159,650
Stone Container Corp..................................... 6,600 94,875
Stride Rite Corp......................................... 3,400 25,500
Sun Co., Inc............................................. 5,200 142,350
Sun Microsystems, Inc.................................... 13,100 597,687
Suntrust Banks, Inc...................................... 7,900 541,150
Supervalu, Inc........................................... 4,700 148,050
Sysco Corp............................................... 12,600 409,500
Tandem Computers, Inc.................................... 8,100 86,062
Tandy Corp............................................... 4,400 182,600
Tektronix, Inc........................................... 2,300 112,987
Tele-Communications, Inc. Cl A........................... 45,100 896,362
Teledyne, Inc............................................ 3,896 99,835
Tellabs, Inc............................................. 6,100 225,700
Temple-Inland, Inc....................................... 3,900 172,087
Tenet Healthcare Corp.................................... 13,800 286,350
Tenneco, Inc............................................. 12,300 610,387
Texaco, Inc.............................................. 18,200 1,428,700
Texas Instruments, Inc................................... 13,000 672,750
Texas Utilities Co....................................... 15,600 639,600
Textron, Inc............................................. 5,800 391,500
The Walt Disney Co....................................... 36,100 2,129,900
Thomas & Betts Corp...................................... 1,400 103,250
Time Warner, Inc......................................... 26,700 1,011,262
Times Mirror Co. Cl A.................................... 7,800 264,225
Timken Co................................................ 2,200 84,150
TJX Cos., Inc............................................ 5,000 94,375
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Torchmark Corp........................................... 4,900 $ 221,725
Toys "R" Us, Inc......................................... 18,900 411,075
Transamerica Corp........................................ 4,700 342,512
Travelers Group, Inc..................................... 22,000 1,383,250
Tribune Co............................................... 4,400 268,950
Trinova Corp............................................. 2,000 57,250
TRW, Inc................................................. 4,500 348,750
Tyco Labs, Inc........................................... 10,600 377,625
U.S. Bancorp............................................. 6,800 228,650
U.S. Life Corp........................................... 2,400 71,700
U.S. Surgical Corp....................................... 3,900 83,362
U.S. West Communications Group........................... 32,500 1,161,875
U.S. West Media Group.................................... 32,600 619,400
Unicom Corp.............................................. 14,800 484,700
Unilever N.V............................................. 11,100 1,562,325
Union Camp Corp.......................................... 4,800 228,600
Union Carbide Corp....................................... 9,500 356,250
Union Electric Co........................................ 7,100 296,425
Union Pacific Corp....................................... 14,200 937,200
Unisys Corp.............................................. 11,800 66,375
United Healthcare Corp................................... 12,100 792,550
United Technologies Corp................................. 8,400 796,950
Unocal Corp.............................................. 17,100 498,037
UNUM Corp................................................ 5,000 275,000
US Healthcare, Inc....................................... 10,600 492,900
USAir Group, Inc......................................... 4,300 56,975
USF&G Corp............................................... 7,800 131,625
UST, Inc................................................. 13,400 447,225
USX-Marthon Group........................................ 19,900 388,050
USX-U.S. Steel Group, Inc................................ 5,700 175,275
V F Corp................................................. 4,400 232,100
Varity Corp.............................................. 2,800 103,950
Viacom, Inc.............................................. 24,900 1,179,656
W.R. Grace & Co.......................................... 6,700 396,137
Wachovia Corp............................................ 11,800 539,850
Wal-Mart Stores, Inc..................................... 158,600 3,548,675
Walgreen Co.............................................. 17,000 507,875
Warner-Lambert Co........................................ 9,300 903,262
Wells Fargo & Co......................................... 3,300 712,800
Wendy's International, Inc............................... 7,100 150,875
Western Atlas, Inc....................................... 3,700 186,850
Westinghouse Electric Corp............................... 27,100 447,150
Westvaco Corp............................................ 7,000 194,250
Weyerhaeuser Co.......................................... 14,000 605,500
Whirlpool Corp........................................... 5,100 271,575
Whitman Corp............................................. 7,200 167,400
Willamette Industries, Inc............................... 3,800 213,750
Williams Cos., Inc....................................... 7,000 307,125
Winn-Dixie Stores, Inc................................... 10,400 383,500
WMX Technologies, Inc.................................... 33,500 1,000,812
Woolworth Corp........................................... 9,200 119,600
Worthington Industries, Inc.............................. 6,300 131,118
Wrigley (Wm.) Jr. Co..................................... 8,000 420,000
Xerox Corp............................................... 7,500 1,027,500
Yellow Corp.............................................. 1,900 23,512
------------
TOTAL INDEX PORTION COMMON STOCKS
(Cost: $241,593,122) 59.6%.............................. 317,434,150
------------
ACTIVE PORTION:
COMMON STOCKS:
Basic Materials (2.0%):
Delta & Pine Land Co.................................... 60,000 2,205,000
International Paper Co.................................. 35,800 1,355,925
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
ACTIVE PORTION (CONT'D):
Loctite Corp........................................... 30,000 $ 1,425,000
Monsanto Co............................................ 13,000 1,592,500
R.P. Scherer Corp.*.................................... 40,000 1,965,000
Vigoro Corp............................................ 30,000 1,852,500
------------
10,395,925
------------
Consumer, Cyclical (8.4%):
American Greetings Corp. Cl A*......................... 46,300 1,279,037
Borg-Warner Automotive, Inc............................ 50,000 1,600,000
Brunswick Corp......................................... 62,000 1,488,000
Callaway Golf Co....................................... 75,500 1,708,187
Cinar Films, Inc. Cl B*................................ 40,000 605,000
Cintas Corp............................................ 36,000 1,602,000
Clayton Homes, Inc..................................... 25,000 534,375
Dayton Hudson Corp..................................... 17,000 1,275,000
Eastman Kodak Co....................................... 18,555 1,243,185
Finlay Enterprises, Inc.*.............................. 80,000 940,000
First Alert, Inc.*..................................... 100,000 862,500
First Brands Corp...................................... 39,000 1,857,375
Flightsafety International............................. 37,000 1,859,250
Gannett, Inc........................................... 17,600 1,080,200
Goodyear Tire & Rubber Co.............................. 24,900 1,129,837
Landry's Seafood Restaurant*........................... 47,300 807,056
Lone Star Steakhouse*.................................. 40,000 1,535,000
Masco Corp............................................. 33,500 1,051,062
May Department Stores Co............................... 26,100 1,102,725
Midwest Express Holdings, Inc.*........................ 40,000 1,110,000
Norton McNaughton, Inc.*............................... 75,000 834,375
OfficeMax, Inc.*....................................... 69,750 1,560,656
Outback Steakhouse, Inc.*.............................. 46,000 1,650,250
Oxford Resources Corp. Cl A*........................... 20,000 450,000
Pep Boys-Manny, Moe & Jack............................. 60,000 1,537,500
Pinnacle Systems, Inc.*................................ 10,000 247,500
Ryder System, Inc...................................... 39,500 977,625
Smith (A.O.) Corp...................................... 53,000 1,099,750
St. John Knits, Inc.................................... 40,000 2,125,000
Talbots, Inc........................................... 46,500 1,336,875
Tiffany & Co........................................... 35,000 1,763,125
Titan Wheel Int'l, Inc................................. 100,000 1,625,000
Tommy Hilfiger Corp.*.................................. 6,600 279,675
Toro Co................................................ 50,000 1,643,750
Tower Automotive, Inc.*................................ 100,000 1,750,000
U.S. Home Corp.*....................................... 10,000 291,250
V F Corp............................................... 17,500 923,125
------------
44,765,245
------------
Consumer, Non-Cyclical (6.0%):
American Stores Co..................................... 46,000 1,230,500
Apria Healthcare Group, Inc.*.......................... 10,000 282,500
Biochem Pharma, Inc.*.................................. 23,500 942,937
Ciba Geigy A G ADR*.................................... 31,000 1,360,125
Compdent Corp.*........................................ 6,600 273,900
Cytotherapeutics, Inc.*................................ 19,100 327,087
Ergo Science Corp.*.................................... 15,000 213,750
Forest Laboratories, Inc. Cl A*........................ 40,000 1,810,000
Genzyme Corp.*......................................... 30,000 1,871,250
Guest Supply, Inc.*.................................... 67,200 1,520,400
Healthsource, Inc.*.................................... 10,000 360,000
Hologic, Inc.*......................................... 10,000 410,000
IDEC Pharmacueticals Corp.............................. 12,100 232,925
J.M. Smucker Co........................................ 50,500 1,111,000
Kimberly-Clark Corp.................................... 18,720 1,549,080
Lincare Holdings, Inc.*................................ 19,000 475,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- --------------
<S> <C> <C>
Liposome Company, Inc.*............................... 20,000 $ 400,000
Maybelline, Inc....................................... 65,000 2,356,250
Metra Biosystems, Inc.*............................... 13,000 224,250
Oakley, Inc.*......................................... 22,000 748,000
OccuSystems, Inc.*.................................... 20,000 400,000
Patterson Dental Co.*................................. 55,000 1,485,000
Pharmacia & Upjohn, Inc............................... 37,700 1,460,875
Phillip Morris Cos., Inc.............................. 21,600 1,954,800
PhyCor, Inc.*......................................... 15,000 758,437
Sepracor, Inc.*....................................... 19,300 354,637
Smithkline Beecham ADR................................ 27,689 1,536,739
Sola International, Inc.*............................. 87,000 2,196,750
Summit Technology, Inc.*.............................. 10,500 354,375
Sybron Intl. Corp.*................................... 20,000 472,500
Target Therapeutics, Inc.*............................ 10,000 427,500
Universal Foods Corp.................................. 50,000 2,006,250
VISX, Inc.*........................................... 20,000 780,000
--------------
31,886,817
--------------
Energy (1.4%):
Elf Aquitaine--ADR.................................... 35,520 1,305,361
Mobil Corp............................................ 11,000 1,232,000
Quaker State Corp..................................... 90,000 1,136,250
Repsol S.A. ADR....................................... 56,775 1,866,478
Royal Dutch Petroleum Co.............................. 8,100 1,143,112
USX-Marthon Group..................................... 52,000 1,014,000
--------------
7,697,201
--------------
Financial (3.0%):
Ahmanson (H.F.) & Co.................................. 34,951 926,201
American Int'l. Group, Inc............................ 30,000 2,775,000
Amresco, Inc.......................................... 20,000 255,000
Aon Corp.............................................. 21,000 1,047,375
Bank of New York, Inc................................. 16,433 801,108
Citicorp.............................................. 49,000 3,295,250
CoreStates Financial Corp............................. 33,900 1,283,962
Fleet Financial Group, Inc............................ 21,234 865,300
Keystone Financial, Inc............................... 60,000 1,800,000
NationsBank Corp...................................... 27,000 1,879,875
Providian Corp........................................ 29,100 1,185,825
--------------
16,114,896
--------------
Industrial (4.3%):
Applied Materials, Inc.*.............................. 38,000 1,496,250
Ball Corp............................................. 31,500 866,250
Briggs & Stratton Corp................................ 28,000 1,214,500
Browning Ferris Inds., Inc............................ 45,000 1,327,500
Burlington Northern Santa Fe.......................... 17,711 1,381,458
Castle (A.M.) & Co.................................... 4,200 118,125
Electroglas Inc.*..................................... 42,000 1,029,000
First Data Corp....................................... 45,991 3,075,648
Foster Wheeler Corp................................... 31,500 1,338,750
Hanson PLC--ADR....................................... 20,738 316,254
Hardinge, Inc......................................... 67,500 1,755,000
HBO & Co.............................................. 15,000 1,149,375
Kennametal, Inc....................................... 45,000 1,428,750
Parker Hannifin Corp.................................. 30,000 1,027,500
PRI Automation, Inc.*................................. 5,000 175,625
Sealed Air Corp.*..................................... 62,000 1,736,000
Union Pacific Corp.................................... 24,200 1,597,200
United Waste Systems, Inc.*........................... 5,000 186,250
USA Waste Services, Inc.*............................. 75,000 1,415,625
--------------
22,635,060
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
ACTIVE PORTION (CONT'D):
Technology (13.8%):
3Com Corp.*............................................. 142,000 $ 6,620,750
Activision, Inc.*....................................... 3,000 33,000
Adaptec, Inc.*.......................................... 15,000 615,000
ADC Telecommunications, Inc.*........................... 20,000 730,000
Adobe Systems, Inc...................................... 40,000 2,480,000
Altera Corp.*........................................... 26,000 1,293,500
Ascend Communications, Inc.*............................ 9,400 762,575
Atmel Corp.*............................................ 82,000 1,834,750
Bay Networks, Inc.*..................................... 19,800 814,275
Bay Networks, Inc.*..................................... 105,750 4,348,968
C.P. Clare Corp.*....................................... 43,000 881,500
Centocor, Inc.*......................................... 20,000 617,500
Cisco Systems, Inc.*.................................... 73,000 5,447,625
Compaq Computer Corp.*.................................. 63,500 3,048,000
Cygnus, Inc.*........................................... 10,000 223,750
Dentrite International, Inc.*........................... 5,000 90,000
DSC Communications Corp.*............................... 25,000 921,875
DSC Communications Corp.*............................... 53,000 1,954,375
DSP Communications, Inc.*............................... 10,000 436,250
Electronics For Imaging, Inc.*.......................... 30,000 1,312,500
EPIC Design Technology, Inc.*........................... 14,000 294,000
Gandalf Technologies, Inc.*............................. 25,000 425,000
General DataComm Industries*............................ 15,000 256,875
Glenayre Technologies, Inc.*............................ 48,375 3,011,343
Incyte Pharmaceuticals, Inc............................. 3,300 82,500
Informix Corp.*......................................... 48,600 1,458,000
Intel Corp.............................................. 64,000 3,632,000
Intl. Business Machines Corp............................ 20,276 1,860,323
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Linear Technology Corp................................. 61,000 $ 2,394,250
Maxim Integrated Products, Inc.*....................... 80,000 3,080,000
Medic Computer Systems, Inc.*.......................... 13,000 786,500
Microchip Technology, Inc.*............................ 48,900 1,784,850
Minnesota Mining & Mfg. Co............................. 16,490 1,092,462
Motorola, Inc. ........................................ 34,000 1,938,000
Network Appliance, Inc.*............................... 10,000 401,250
Network Equipment Tech., Inc.*......................... 20,500 561,187
Parametric Technology Co.*............................. 15,000 997,500
Philips Electronics NV(U.S.)........................... 24,000 861,000
Pitney Bowes, Inc...................................... 26,964 1,267,308
Railtex, Inc.*......................................... 48,000 1,008,000
Raytheon Co............................................ 26,576 1,255,717
S3, Inc.*.............................................. 40,000 705,000
Softkey Int'l., Inc.*.................................. 35,000 809,375
Sun Microsystems, Inc.*................................ 100,000 4,562,500
Tellabs, Inc.*......................................... 41,000 1,517,000
Teltrend, Inc.*........................................ 12,600 589,050
Tencor Instruments*.................................... 14,000 341,250
Tracor, Inc.*.......................................... 5,000 72,500
Triquint Semiconductor Inc.*........................... 27,000 364,500
U.S. Robotics Corp.*................................... 6,000 526,500
Xerox Corp............................................. 9,300 1,274,100
------------
73,676,033
------------
Utilities (0.4%):
Pinnacle West Capital Corp............................. 41,900 1,204,625
Tenneco, Inc........................................... 21,400 1,061,975
------------
2,266,600
------------
Total Active Portion Common Stock
(Cost: $160,295,667) 39.3%............................. 209,437,777
------------
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
ACTIVE PORTION:
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.1%):
U.S. Treasury Bill................. 4.23% 01/25/96 $ 90,000 $ 89,725
------------
Commercial Paper (1.0%):
Dynamic Funding.................... 6.10 01/02/96 832,000 831,576
Hershey Foods Corp................. 5.80 01/02/96 3,805,000 3,803,161
Triple A-1 Funding................. 5.85 01/05/96 950,000 949,072
------------
5,583,809
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $5,673,534) 1.1%.......................................... 5,673,534
------------
TOTAL ACTIVE SECURITIES
(Cost: $165,969,201) 40.4%....................................... 215,111,311
------------
TOTAL INVESTMENTS
(Cost: $407,562,323) 100.0%...................................... $532,545,461
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS:
3Com Corp................................................. 1,500 $ 69,937
Abbott Laboratories....................................... 7,000 292,250
Advanced Micro Devices, Inc............................... 900 14,850
Aetna Life & Casualty Co.................................. 1,000 69,250
Ahmanson (H.F.) & Co...................................... 1,000 26,500
Air Products & Chemicals Corp............................. 1,000 52,750
Airtouch Communications, Inc.............................. 4,400 124,300
Alberto Culver Co. Cl B................................... 200 6,875
Albertson's, Inc.......................................... 2,200 72,325
Alcan Aluminum Ltd........................................ 2,000 62,250
Alco Standard Corp........................................ 1,000 45,625
Alexander & Alexander Svcs., Inc.......................... 400 7,600
Allergan, Inc............................................. 600 19,500
Allied Signal, Inc........................................ 2,500 118,750
Allstate Corp............................................. 4,000 164,500
Alltel Corp............................................... 1,700 50,150
Aluminum Co. of America................................... 1,600 84,600
Alza Corp................................................. 700 17,325
Amdahl Corp............................................... 1,100 9,350
Amerada Hess Corp......................................... 800 42,400
American Brands, Inc...................................... 1,600 71,400
American Electric Power Co................................ 1,700 68,850
American Express Co....................................... 4,300 177,912
American General Corp..................................... 1,800 62,775
American Greetings Corp. Cl A............................. 700 19,337
American Home Products Corp............................... 2,800 271,600
American Int'l. Group, Inc................................ 4,200 388,500
American Stores Co........................................ 1,300 34,775
Ameritech Corp............................................ 4,900 289,100
Amgen, Inc................................................ 2,400 142,500
Amoco Corp................................................ 4,400 316,250
Amp, Inc.................................................. 1,900 72,912
AMR Corp.................................................. 700 51,975
Andrew Corp............................................... 300 11,475
Anheuser Busch Cos., Inc.................................. 2,300 153,812
Apple Computer, Inc....................................... 1,100 35,062
Applied Materials, Inc.................................... 1,600 63,000
Archer Daniels Midland Co................................. 4,700 84,600
Armco, Inc................................................ 900 5,287
Armstrong World Inds., Inc................................ 300 18,600
Asarco, Inc............................................... 400 12,800
Ashland, Inc.............................................. 600 21,075
AT&T Corp................................................. 14,100 912,975
Atlantic Richfield Co..................................... 1,400 155,050
Autodesk, Inc............................................. 400 13,700
Automatic Data Processing, Inc............................ 1,300 96,525
Avery Dennison Corp....................................... 500 25,062
Avon Products, Inc........................................ 600 45,225
Baker Hughes, Inc......................................... 1,300 31,687
Ball Corp................................................. 300 8,250
Bally Entertainment Corp.................................. 400 5,600
Baltimore Gas & Electric Co............................... 1,300 37,050
Banc One Corp............................................. 3,500 132,125
Bank of Boston Corp....................................... 1,000 46,250
Bank of New York, Inc..................................... 1,800 87,750
BankAmerica Corp.......................................... 3,300 213,675
Bankers Trust New York Corp............................... 700 46,550
Bard (C.R.), Inc.......................................... 500 16,125
Barnett Banks, Inc........................................ 900 53,100
Barrick Gold Corp......................................... 3,100 81,762
Bausch & Lomb, Inc........................................ 500 19,812
Baxter International, Inc................................. 2,500 104,687
Becton Dickinson & Co..................................... 600 45,000
Bell Atlantic Corp........................................ 3,900 260,812
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
BellSouth Corp............................................ 8,800 $ 382,800
Bemis Co.................................................. 500 12,812
Beneficial Corp........................................... 500 23,312
Bethlehem Steel Corp...................................... 1,000 14,000
Beverly Enterprises, Inc.................................. 900 9,562
Biomet, Inc............................................... 1,000 17,875
Black & Decker Corp....................................... 800 28,200
Block (H & R), Inc........................................ 900 36,450
Boatmen's Bancshares, Inc................................. 1,100 44,962
Boeing Co................................................. 3,000 235,125
Boise Cascade Corp........................................ 400 13,850
Boston Scientific Corp.................................... 1,400 68,950
Briggs & Stratton Corp.................................... 300 13,012
Bristol-Myers Squibb Co................................... 4,500 386,437
Brown Group, Inc.......................................... 200 2,850
Brown-Forman Corp. Cl B................................... 600 21,900
Browning Ferris Inds., Inc................................ 1,900 56,050
Brunswick Corp............................................ 900 21,600
Burlington Northern Santa Fe.............................. 1,301 101,478
Burlington Resources, Inc................................. 1,100 43,175
Cabletron Systems, Inc.................................... 600 48,600
Campbell Soup Co.......................................... 2,200 132,000
Capital Cities/ABC, Inc................................... 1,400 172,725
Carolina Power & Light Co................................. 1,400 48,300
Caterpillar, Inc.......................................... 1,800 105,750
Centex Corp............................................... 300 10,425
Central & South West Corp................................. 1,700 47,387
Ceridian Corp............................................. 600 24,750
Champion International Corp............................... 900 37,800
Charming Shoppes, Inc..................................... 900 2,587
Chase Manhattan Bank...................................... 1,600 97,000
Chemical Banking Corp..................................... 2,200 129,250
Chevron Corp.............................................. 5,800 304,500
Chrysler Corp............................................. 3,400 188,275
Chubb Corp................................................ 800 77,400
CIGNA Corp................................................ 700 72,275
Cincinnati Milacron, Inc.................................. 300 7,875
Cinergy Corp.............................................. 1,400 42,881
Circuit City Stores, Inc.................................. 900 24,862
Cisco Systems, Inc........................................ 2,400 179,100
Citicorp.................................................. 3,800 255,550
Clorox Co................................................. 500 35,812
Coastal Corp.............................................. 900 33,525
Coca-Cola Co.............................................. 11,100 824,175
Colgate-Palmolive Co...................................... 1,300 91,325
Columbia Gas System, Inc.................................. 400 17,550
Columbia HCA Healthcare Corp.............................. 3,900 197,925
Comcast Corp. Cl A........................................ 2,100 38,193
Comerica, Inc............................................. 1,000 40,000
Community Psychiatric Centers............................. 400 4,900
Compaq Computer Corp...................................... 2,400 115,200
Computer Associates Intl., Inc............................ 2,100 119,437
Computer Sciences Corp.................................... 500 35,125
Conagra, Inc.............................................. 2,100 86,625
Conrail, Inc.............................................. 700 49,000
Consolidated Edison Co NY,Inc............................. 2,100 67,200
Consolidated Freightways, Inc............................. 400 10,600
Consolidated Natural Gas Co............................... 800 36,300
Cooper Industries......................................... 1,000 36,750
Cooper Tire & Rubber Co................................... 700 17,237
Coors (Adolph) Co. Cl B................................... 300 6,637
CoreStates Financial Corp................................. 1,200 45,450
Corning, Inc.............................................. 2,000 64,000
CPC International, Inc.................................... 1,300 89,212
Crane Co.................................................. 300 11,062
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ----------
<S> <C> <C>
Cray Research, Inc......................................... 200 $ 4,950
Crown Cork & Seal Co., Inc................................. 800 33,400
CSX Corp................................................... 1,800 82,125
CUC International, Inc..................................... 1,600 54,600
Cummins Engine, Inc........................................ 400 14,800
Cyprus Amax Minerals Co.................................... 800 20,900
Dana Corp.................................................. 900 26,325
Darden Restaurants, Inc.................................... 1,400 16,625
Data General Corp.......................................... 300 4,125
Dayton Hudson Corp......................................... 600 45,000
Dean Witter Discover & Co.................................. 1,500 70,500
Deere & Co................................................. 2,300 81,075
Delta Air Lines, Inc....................................... 500 36,937
Deluxe Corp................................................ 700 20,300
Dial Corp.................................................. 800 23,700
Digital Equipment Corp..................................... 1,300 83,362
Dillard Dept. Stores, Inc.................................. 1,000 28,500
Dominion Resources, Inc.................................... 1,500 61,875
Donnelley (R.R.) & Sons Co. ............................... 1,400 55,125
Dover Corp................................................. 1,000 36,875
Dow Chemical Co............................................ 2,300 161,862
Dow Jones & Co., Inc....................................... 900 35,887
Dresser Industries, Inc.................................... 1,600 39,000
DSC Communications Corp.................................... 1,000 36,875
DTE Energy Co.............................................. 1,300 44,850
Du Pont (E.I.) De Nemours.................................. 4,900 342,387
Duke Power Co.............................................. 1,800 85,275
Dun & Bradstreet Corp...................................... 1,500 97,125
Eastern Enterprises........................................ 200 7,050
Eastman Chemical Co........................................ 700 43,837
Eastman Kodak Co........................................... 3,000 201,000
Eaton Corp................................................. 700 37,537
Echlin, Inc................................................ 500 18,250
Echo Bay Mines, Ltd........................................ 1,100 11,412
Ecolab, Inc................................................ 600 18,000
EG&G, Inc.................................................. 500 12,125
Emerson Electric Co. ...................................... 2,000 163,500
Engelhard Corp. ........................................... 1,300 28,275
Enron Corp................................................. 2,200 83,875
Enserch Corp............................................... 600 9,750
Entergy Corp............................................... 2,000 58,500
Exxon Corp................................................. 11,000 881,375
Federal Express Corp....................................... 500 36,937
Federal Home Loan Mtge Corp................................ 1,600 133,600
Federal National Mtge Assn................................. 2,400 297,900
Federal Paper Board Co..................................... 400 20,750
Federated Department Stores................................ 1,800 49,050
First Bank System, Inc..................................... 1,200 59,550
First Chicago NBD Corp..................................... 2,848 112,496
First Data Corp............................................ 2,000 133,750
First Interstate Bancorp................................... 700 95,550
First Union Corp. ......................................... 2,645 147,128
Fleet Financial Group, Inc................................. 2,181 88,875
Fleetwood Enterprises, Inc................................. 400 10,300
Fleming Cos., Inc.......................................... 300 6,187
Fluor Corp................................................. 700 46,200
FMC Corp................................................... 300 20,287
Ford Motor Co.............................................. 9,500 275,500
Foster Wheeler Corp........................................ 400 17,000
FPL Group, Inc............................................. 1,600 74,200
Freeport-McMoran Copper Cl B............................... 1,800 50,625
Fruit of the Loom, Inc..................................... 700 16,975
Gannett, Inc............................................... 1,200 73,650
Gap, Inc................................................... 1,300 54,600
General Dynamics Corp...................................... 600 35,475
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
General Electric Co....................................... 14,800 $ 1,065,653
General Mills, Inc........................................ 1,400 80,850
General Motors Corp....................................... 6,600 348,975
General Public Utilities Corp............................. 1,100 37,400
General Re Corp........................................... 700 108,500
General Signal Corp....................................... 400 12,950
Genuine Parts Co.......................................... 1,100 45,100
Georgia Pacific Corp...................................... 800 54,900
Giant Food, Inc........................................... 500 15,750
Giddings & Lewis, Inc..................................... 300 4,950
Gillette Co............................................... 3,900 203,287
Golden West Financial Corp................................ 500 27,625
Goodrich (B.F.) Co........................................ 200 13,625
Goodyear Tire & Rubber Co................................. 1,400 63,525
Grainger (W.W.), Inc...................................... 500 33,125
Great Atl. & Pac. Tea Co.................................. 300 6,900
Great Lakes Chemical Corp................................. 600 43,200
Great Western Financial Corp.............................. 1,200 30,600
GTE Corp. ................................................ 8,600 378,400
Halliburton Co............................................ 1,000 50,625
Handleman Co.............................................. 300 1,725
Harcourt General, Inc..................................... 600 25,125
Harland (John H.) Co...................................... 300 6,262
Harnischfeger Inds., Inc.................................. 400 13,300
Harrah's Entertainment, Inc............................... 900 21,825
Harris Corp............................................... 300 16,387
Hasbro, Inc. ............................................. 800 24,800
Heinz (H.J.) Co........................................... 3,300 109,312
Helmerich & Payne, Inc.................................... 200 5,950
Hercules, Inc............................................. 1,000 56,375
Hershey Foods Corp........................................ 700 45,500
Hewlett-Packard Co........................................ 4,500 376,875
Hilton Hotels Corp........................................ 400 24,600
Home Depot, Inc........................................... 4,200 201,075
Homestake Mining Co....................................... 1,200 18,750
Honeywell, Inc............................................ 1,100 53,487
Household International, Inc.............................. 900 53,212
Houston Industries, Inc................................... 2,300 55,775
Humana, Inc. ............................................. 1,400 38,325
Illinois Tool Works, Inc.................................. 1,000 59,000
Inco, Ltd................................................. 1,100 36,575
Ingersoll Rand Co......................................... 1,000 35,125
Inland Steel, Inc......................................... 400 10,050
Intel Corp................................................ 7,300 414,275
Intergraph Corp........................................... 400 6,300
International Paper Co.................................... 2,300 87,112
Interpublic Group of Cos., Inc............................ 700 30,362
Intl. Business Machines Corp.............................. 5,000 458,750
Intl. Flavors & Fragrances................................ 1,000 48,000
ITT Corp.................................................. 1,000 53,000
ITT Hartford Group, Inc. ................................. 1,000 48,375
ITT Industries............................................ 1,000 24,000
James River Corp. of VA................................... 700 16,887
Jefferson-Pilot Corp...................................... 600 27,900
Johnson & Johnson......................................... 5,700 488,062
Johnson Controls, Inc..................................... 400 27,500
Jostens, Inc.............................................. 300 7,275
Kaufman & Broad Home Corp................................. 300 4,462
Kellogg Co. .............................................. 1,900 146,775
Kerr-McGee Corp........................................... 500 31,750
KeyCorp................................................... 2,100 76,125
Kimberly-Clark Corp....................................... 2,514 208,033
King World Productions, Inc............................... 300 11,662
Kmart Corp................................................ 4,100 29,725
Knight-Ridder, Inc........................................ 400 25,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Kroger Corp............................................... 1,100 $ 41,250
Laidlaw, Inc. Cl B........................................ 2,600 26,650
Lilly (Eli) & Co.......................................... 4,720 265,500
Limited (The), Inc........................................ 3,200 55,600
Lincoln National Corp..................................... 900 48,375
Liz Claiborne, Inc........................................ 700 19,425
Lockheed Martin Corp...................................... 1,800 142,200
Loews Corp................................................ 1,000 78,375
Longs Drug Stores, Inc.................................... 200 9,575
Loral Corp................................................ 1,500 53,062
Louisiana Land & Exploration.............................. 300 12,862
Louisiana-Pacific Corp.................................... 1,000 24,250
Lowe's Companies, Inc..................................... 1,400 46,900
LSI Logic Corp............................................ 1,100 36,025
Luby's Cafeteria, Inc..................................... 200 4,450
Mallinckrodt Group, Inc................................... 700 25,462
Manor Care, Inc........................................... 600 21,000
Marriott International, Inc............................... 1,100 42,075
Marsh & McLennan Cos., Inc................................ 600 53,250
Masco Corp................................................ 1,400 43,925
Mattel, Inc............................................... 2,000 61,500
May Department Stores Co.................................. 2,200 92,950
Maytag Corp............................................... 1,000 20,250
MBNA Corp................................................. 1,300 47,937
McDermott International, Inc.............................. 500 11,000
McDonald's Corp........................................... 6,100 275,262
McDonnell Douglas Corp.................................... 1,000 92,000
McGraw-Hill Cos., Inc..................................... 400 34,850
MCI Communications Corp................................... 6,000 156,750
Mead Corp................................................. 500 26,125
Medtronic, Inc............................................ 2,000 111,750
Mellon Bank Corp.......................................... 1,300 69,875
Melville Corp............................................. 900 27,675
Mercantile Stores, Inc.................................... 300 13,875
Merck & Co., Inc.......................................... 10,900 716,675
Meredith Corp............................................. 200 8,375
Merrill Lynch & Co., Inc.................................. 1,600 81,600
Micron Technology, Inc.................................... 1,800 71,550
Microsoft Corp............................................ 5,200 456,300
Millipore Corp............................................ 400 16,450
Minnesota Mining & Mfg. Co................................ 3,700 245,125
Mobil Corp................................................ 3,500 392,000
Monsanto Co............................................... 1,000 122,500
Moore Corp., Ltd.......................................... 900 16,762
Morgan (J.P.) & Co., Inc.................................. 1,700 136,425
Morgan Stanley Group, Inc................................. 700 56,437
Morton International, Inc................................. 1,300 46,637
Motorola, Inc............................................. 5,200 296,400
NACCO Industries, Inc. Cl A............................... 100 5,550
Nalco Chemical Co......................................... 600 18,075
National City Corp........................................ 1,300 43,062
National Semiconductor Corp............................... 1,100 24,475
National Service Industries............................... 400 12,950
NationsBank Corp.......................................... 2,400 167,100
Navistar International Corp............................... 700 7,350
New York Times Co. Cl A................................... 900 26,662
Newell Co................................................. 1,400 36,225
Newmont Mining Corp....................................... 800 36,200
Niagara Mohawk Power Corp................................. 1,300 12,512
Nicor, Inc................................................ 400 11,000
Nike, Inc. Cl B........................................... 1,300 90,512
NorAm Energy Corp......................................... 1,100 9,762
Nordstrom, Inc............................................ 700 28,350
Norfolk Southern Corp..................................... 1,100 87,312
Northern States Power Co.................................. 600 29,475
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Northern Telecom, Ltd..................................... 2,300 $ 98,900
Northrop Grumman Corp..................................... 400 25,600
Norwest Corp.............................................. 3,100 102,300
Novell, Inc............................................... 3,300 47,025
Nucor Corp................................................ 800 45,700
NYNEX Corp................................................ 3,800 205,200
Occidental Petroleum Corp................................. 2,800 59,850
Ogden Corp................................................ 400 8,550
Ohio Edison Co............................................ 1,400 32,900
Oneok, Inc................................................ 200 4,575
Oracle Corp............................................... 3,900 165,262
Oryx Energy Co............................................ 900 12,037
Outboard Marine Corp...................................... 200 4,075
Owens-Corning Fiberglass Corp............................. 500 22,437
Paccar, Inc............................................... 300 12,637
Pacific Enterprises....................................... 800 22,600
Pacific Gas & Electric Co................................. 3,800 107,825
Pacific Telesis Group..................................... 3,800 127,775
PacifiCorp................................................ 2,500 53,125
Pall Corp................................................. 1,000 26,875
Panhandle Eastern Corp.................................... 1,300 36,237
Parker Hannifin Corp...................................... 700 23,975
Peco Energy Co............................................ 2,000 60,250
Penney (J.C.) Co., Inc.................................... 2,000 95,250
Pennzoil Co............................................... 400 16,900
Peoples Energy Corp....................................... 300 9,525
Pep Boys-Manny, Moe & Jack................................ 500 12,812
Pepsico, Inc.............................................. 7,000 391,125
Perkin-Elmer Corp......................................... 400 15,100
Pfizer, Inc............................................... 5,600 352,800
Pharmacia & Upjohn, Inc................................... 4,505 174,568
Phelps Dodge Corp......................................... 600 37,350
Phillip Morris Cos., Inc.................................. 7,400 669,700
Phillips Petroleum Co..................................... 2,300 78,487
Pioneer Hi-Bred Intl., Inc................................ 700 38,937
Pitney Bowes, Inc......................................... 1,300 61,100
Pittston Services Group................................... 400 12,550
Placer Dome, Inc.......................................... 2,100 50,662
PNC Bank Corp............................................. 2,000 64,500
Polaroid Corp............................................. 400 18,950
Potlatch Corp............................................. 300 12,000
PP&L Resources, Inc....................................... 1,400 35,000
PPG Industries, Inc....................................... 1,700 77,775
Praxair, Inc.............................................. 1,200 40,350
Premark International, Inc................................ 500 25,312
Price/Costco, Inc......................................... 1,700 25,925
Proctor & Gamble Co....................................... 6,100 506,300
Providian Corp............................................ 800 32,600
Public Svc. Enterprise Group.............................. 2,200 67,375
Pulte Corp................................................ 200 6,725
Quaker Oats Co............................................ 1,200 41,400
Ralston Purina Co......................................... 900 56,137
Raychem Corp.............................................. 400 22,750
Raytheon Co............................................... 2,100 99,225
Reebok International Ltd.................................. 700 19,775
Republic New York Corp.................................... 500 31,062
Reynold's Metals Co....................................... 600 34,125
Rite-Aid Corp............................................. 700 23,975
Roadway Services, Inc..................................... 300 14,663
Rockwell International Corp............................... 1,900 100,462
Rohm & Haas Co............................................ 600 38,625
Rowan Cos., Inc........................................... 800 7,900
Royal Dutch Petroleum Co.................................. 4,800 677,400
Rubbermaid, Inc........................................... 1,400 35,700
Russell Corp.............................................. 300 8,325
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Ryan's Family Steak Houses Inc. .......................... 500 $ 3,500
Ryder System, Inc. ....................................... 700 17,325
Safeco Corp. ............................................. 1,100 37,950
Safety Kleen Corp. ....................................... 500 7,812
Salomon, Inc. ............................................ 900 31,950
Santa Fe Energy Res., Inc. ............................... 800 7,700
Sante Fe Pacific Gold Corp. .............................. 1,200 14,550
Sara Lee Corp. ........................................... 4,300 137,062
SBC Communications, Inc. ................................. 5,400 310,500
SCE Corp. ................................................ 3,900 69,225
Schering-Plough Corp. .................................... 3,300 180,675
Schlumberger, Ltd. ....................................... 2,100 145,425
Scientific-Atlanta, Inc. ................................. 700 10,500
Seagram, Ltd. ............................................ 3,300 114,262
Sears Roebuck & Co. ...................................... 3,500 136,500
Service Corp. International............................... 900 39,600
Shared Medical Systems Corp. ............................. 200 10,875
Sherwin-Williams Co. ..................................... 800 32,600
Shoney's, Inc. ........................................... 400 4,100
Sigma Aldrich Corp. ...................................... 400 19,800
Silicon Graphics, Inc. ................................... 1,400 38,500
Snap-On, Inc. ............................................ 400 18,100
Sonat, Inc. .............................................. 800 28,500
Southern Co. ............................................. 5,900 145,287
Southwest Airlines Co. ................................... 1,300 30,225
Springs Industries, Inc. Cl A............................. 200 8,275
Sprint Corp. ............................................. 3,100 123,612
St. Jude Medical, Inc. ................................... 600 25,800
St. Paul Companies (The).................................. 700 38,937
Stanley Works............................................. 400 20,600
Stone Container Corp. .................................... 800 11,500
Stride Rite Corp. ........................................ 400 3,000
Sun Co., Inc. ............................................ 700 19,162
Sun Microsystems, Inc. ................................... 1,700 77,562
Suntrust Banks, Inc. ..................................... 1,000 68,500
Supervalu, Inc. .......................................... 600 18,900
Sysco Corp. .............................................. 1,600 52,000
Tandem Computers, Inc. ................................... 1,000 10,625
Tandy Corp. .............................................. 600 24,900
Tektronix, Inc. .......................................... 300 14,737
Tele-Communications, Inc. Cl A............................ 5,800 115,275
Teledyne, Inc. ........................................... 500 12,812
Tellabs, Inc. ............................................ 800 29,600
Temple-Inland, Inc. ...................................... 500 22,062
Tenet Healthcare Corp. ................................... 1,800 37,350
Tenneco, Inc. ............................................ 1,600 79,400
Texaco, Inc. ............................................. 2,300 180,550
Texas Instruments, Inc. .................................. 1,700 87,975
Texas Utilities Co. ...................................... 2,000 82,000
Textron, Inc. ............................................ 700 47,250
The Walt Disney Co. ...................................... 4,600 271,400
Thomas & Betts Corp. ..................................... 200 14,750
Time Warner, Inc. ........................................ 3,400 128,775
Times Mirror Co. Cl A..................................... 1,000 33,875
Timken Co. ............................................... 300 11,475
TJX Cos., Inc. ........................................... 600 11,325
Torchmark Corp. .......................................... 600 27,150
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Toys "R" Us, Inc. ........................................ 2,400 $ 52,200
Transamerica Corp. ....................................... 600 43,725
Travelers Group, Inc. .................................... 2,800 176,050
Tribune Co. .............................................. 600 36,675
Trinova Corp. ............................................ 300 8,587
TRW, Inc. ................................................ 600 46,500
Tyco Labs, Inc. .......................................... 1,400 49,875
U.S. Bancorp.............................................. 900 30,262
U.S. Life Corp. .......................................... 300 8,962
U.S. Surgical Corp. ...................................... 500 10,687
U.S. West Communications Group............................ 4,200 150,150
U.S. West Media Group..................................... 4,200 79,800
Unicom Corp. ............................................. 1,900 62,225
Unilever N.V. ............................................ 1,400 197,050
Union Camp Corp. ......................................... 600 28,575
Union Carbide Corp. ...................................... 1,200 45,000
Union Electric Co. ....................................... 900 37,575
Union Pacific Corp. ...................................... 1,800 118,800
Unisys Corp. ............................................. 1,500 8,437
United Healthcare Corp. .................................. 1,500 98,250
United Technologies Corp. ................................ 1,100 104,362
Unocal Corp. ............................................. 2,200 64,075
UNUM Corp. ............................................... 600 33,000
US Healthcare, Inc. ...................................... 1,400 65,100
USAir Group, Inc. ........................................ 600 7,950
USF&G Corp. .............................................. 1,000 16,875
UST, Inc. ................................................ 1,700 56,737
USX-Marthon Group......................................... 2,500 48,750
USX-U.S. Steel Group, Inc. ............................... 700 21,525
V F Corp. ................................................ 600 31,650
Varity Corp. ............................................. 400 14,850
Viacom, Inc. ............................................. 3,200 151,585
W.R. Grace & Co. ......................................... 900 53,212
Wachovia Corp. ........................................... 1,500 68,625
Wal-Mart Stores, Inc. .................................... 20,400 456,450
Walgreen Co. ............................................. 2,200 65,725
Warner-Lambert Co. ....................................... 1,200 116,550
Wells Fargo & Co. ........................................ 400 86,400
Wendy's International, Inc. .............................. 900 19,125
Western Atlas, Inc. ...................................... 500 25,250
Westinghouse Electric Corp. .............................. 3,500 57,750
Westvaco Corp. ........................................... 900 24,975
Weyerhaeuser Co. ......................................... 1,800 77,850
Whirlpool Corp. .......................................... 700 37,275
Whitman Corp. ............................................ 900 20,925
Willamette Industries, Inc. .............................. 500 28,125
Williams Cos., Inc. ...................................... 900 39,487
Winn-Dixie Stores, Inc. .................................. 1,300 47,937
WMX Technologies, Inc. ................................... 4,300 128,462
Woolworth Corp. .......................................... 1,200 15,600
Worthington Industries, Inc. ............................. 800 16,650
Wrigley (Wm.) Jr. Co. .................................... 1,000 52,500
Xerox Corp. .............................................. 1,000 137,000
Yellow Corp. ............................................. 200 2,475
-----------
TOTAL COMMON STOCKS
(Cost: $32,094,801) 99.7%................................ 40,679,078
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
DISCOUNT FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Treasury (0.3%):
U.S. Treasury Bills..................... 5.25% 05/02/96 $10,000 $ 9,826
U.S. Treasury Bills..................... 5.62 05/02/96 30,000 29,474
U.S. Treasury Bills..................... 5.33 05/02/96 10,000 9,825
U.S. Treasury Bills..................... 5.32 05/02/96 10,000 9,826
U.S. Treasury Bills..................... 5.44 06/27/96 15,000 14,706
U.S. Treasury Bills..................... 5.31 06/27/96 50,000 48,748
U.S. Treasury Bills..................... 5.30 07/25/96 10,000 9,710
U.S. Treasury Bills..................... 5.25 07/25/96 10,000 9,710
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $141,672) 0.3%................... 141,825
-----------
TOTAL INVESTMENTS
(Cost: $32,236,473) 100.0%.............. $40,820,903
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
------ -------- ----------- ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
Governments/Agencies (15.3%):
City of New York.................... 10.00% 08/01/05 $ 1,000,000 $ 1,150,904
Connecticut Housing Fin. Auth....... 7.63 05/15/21 2,500,000 2,550,475
Federal Home Loan Mtge Corp......... 8.50 02/15/21 3,500,000 3,614,135
Republic of Iceland................. 6.13 02/01/04 5,000,000 4,969,900
Republic of Ireland................. 7.13 07/15/02 2,000,000 2,131,142
Republic of Ireland................. 7.88 12/01/01 3,000,000 3,296,427
San Bernardino County, Calif........ 7.71(a) 08/01/13 39,500,000 10,704,105
State of California................. 8.15 09/01/01 1,000,000 1,101,630
Suffolk County, New York............ 5.80 11/01/04 4,000,000 3,903,280
Suffolk County, New York............ 5.88 11/01/05 4,000,000 3,890,480
Swedish Export Credit............... 9.88 03/15/38 6,000,000 6,662,250
Tennessee Valley Authority.......... 6.88 12/15/43 2,500,000 2,478,895
------------
46,453,623
------------
Basic Materials (0.7%):
Fletcher Challenge Ltd.............. 9.00 09/15/99 2,000,000 2,195,322
------------
Consumer, Cyclical (12.1%):
Centex Corp......................... 7.38 06/01/05 5,000,000 5,136,970
Costco Wholesale Corp............... 5.75 05/15/02 5,000,000 4,756,250
Dillard Dept. Stores, Inc........... 9.63 09/15/97 1,000,000 1,067,659
Fruit of the Loom, Inc.............. 7.88 10/15/99 1,000,000 1,059,535
Gannett, Inc........................ 5.85 05/01/00 3,500,000 3,512,617
General Motors Corp................. 9.75 05/15/99 1,500,000 1,525,368
Nordstrom, Inc...................... 8.88 02/15/98 1,500,000 1,596,258
Penney (J.C.) Co., Inc.............. 10.00 10/15/97 1,500,000 1,611,150
Penske Truck Leasing Co. LP......... 8.25 11/01/99 5,000,000 5,382,300
Shopko Stores, Inc.................. 9.00 11/15/04 5,000,000 5,691,515
Valassis Communication, Inc......... 9.55 12/01/03 5,000,000 5,137,110
------------
36,476,732
------------
Consumer, Non-Cyclical (8.0%):
McKesson Corp....................... 8.63 02/01/98 1,000,000 1,061,947
Ralston Purina Co................... 8.63 02/15/22 7,500,000 8,904,225
Rhone-Poulenc SA.................... 7.75 01/15/02 3,000,000 3,218,475
Rhone-Poulenc SA.................... 6.75 10/15/99 2,500,000 2,556,357
Rite-Aid Corp....................... 6.88 08/15/13 5,000,000 4,889,695
Whitman Corp........................ 7.63 06/15/15 3,500,000 3,711,582
------------
24,342,281
------------
Energy (2.7%):
BP North America, Inc............... 9.88 03/15/04 2,000,000 2,501,106
Tosco Corp.......................... 8.25 05/15/03 5,000,000 5,553,220
------------
8,054,326
------------
Financial (26.5%):
Aristar, Inc........................ 8.88 08/15/98 2,000,000 2,153,322
BankAmerica Corp.................... 7.75 07/15/02 2,500,000 2,716,535
Berkley (W.R.) Corp................. 8.70 01/01/22 5,000,000 5,860,610
British Gas Financial, Inc.......... 8.75 03/15/98 3,000,000 3,189,864
Chase Manhattan Bank................ 7.50 12/01/97 5,000,000 5,175,395
CIT Group Holdings, Inc............. 8.75 04/15/98 2,000,000 2,134,900
Citicorp............................ 10.75 12/15/15 4,359,000 4,462,569
Fairfax Financial Holdings.......... 8.25 10/01/15 2,500,000 2,693,792
General Electric Capital Corp....... 8.75 05/21/07 7,500,000 9,106,050
General Motors Acceptance Corp...... 7.88 03/04/97 2,500,000 2,547,212
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COUPON FACE MAKET
RATE MATURITY AMOUNT VALUE
-------- -------- ---------- ------------
<S> <C> <C> <C> <C>
General Motors Acceptance Corp....... 8.38% 05/01/97 $5,000,000 $ 5,162,565
Heller Financial, Inc................ 9.13 08/01/99 2,000,000 2,203,922
Kemper Corp.......................... 8.80 11/01/98 2,500,000 2,671,107
Progressive Corp. of Ohio............ 10.00 12/15/00 1,500,000 1,754,446
Rodamco NV........................... 7.75 05/15/15 5,000,000 5,632,015
Roosevelt Fed Svgs & Ln Assn......... 10.13 04/15/18 3,000,000 3,260,253
Ryland Acceptance Corp............... 7.95 08/20/19 3,257,908 3,316,713
Sun America, Inc..................... 9.00 01/15/99 4,000,000 4,327,208
Sun America, Inc..................... 9.95 02/01/12 5,000,000 6,447,660
Vesta Insurance Group, Inc........... 8.75 07/15/25 5,000,000 5,469,380
------------
80,285,518
------------
Industrial (1.0%):
Union Pacific Corp................... 8.50 01/15/98 3,000,000 3,162,210
------------
Technology (4.2%):
McDonnell Douglas Corp............... 9.75 04/01/12 10,000,000 12,797,480
------------
Utilities (22.8%):
Bellsouth Telecommunication.......... 7.50 06/15/33 7,500,000 7,995,030
Big Rivers Electric Corp............. 9.50 02/15/17 8,000,000 8,919,720
Big Rivers Electric Corp............. 9.52 03/15/19 12,500,000 13,964,425
Big Rivers Electric Corp............. 10.70 09/15/17 10,000,000 11,268,480
Connecticut Yankee Atomic Pwr........ 12.00 06/01/00 4,186,000 4,382,712
Laclede Gas Co....................... 8.50 11/15/04 2,000,000 2,315,074
New York Telephone Co................ 6.70 11/01/23 2,500,000 2,456,877
Pacific Gas & Electric Co............ 8.75 01/01/01 2,000,000 2,223,318
Philadelphia Electric Co............. 7.13 08/15/23 5,000,000 4,966,850
Southern Union Co.................... 7.60 02/01/24 10,000,000 10,342,946
------------
68,835,432
------------
TOTAL LONG-TERM DEBT SECURITIES
(Cost: $264,955,856) 93.3%........... 282,602,924
------------
SHORT-TERM DEBT SECURITIES:
Basic Materials (0.8%):
Dow Corning.......................... 8.38 11/01/96 2,500,000 2,557,652
------------
Utilities (1.7%):
Equitable Resources, Inc............. 8.25 07/01/96 2,000,000 2,024,602
Houston Lighting & Power Co.......... 8.63 01/15/96 2,000,000 2,001,596
PacifiCorp........................... 8.57 02/01/96 1,000,000 1,003,016
------------
5,029,214
------------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ---------- ------------
<S> <C> <C> <C> <C>
Commercial Paper (4.2%):
Coca Cola............................ 5.72 01/05/96 3,195,000 3,191,954
Ford Motor Credit Corp............... 5.76 01/05/96 4,600,000 4,595,565
Sony Capital Corp.................... 5.80 01/03/96 4,785,000 4,781,905
------------
12,569,424
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $20,084,896) 6.7%............. 20,156,290
------------
TOTAL INVESTMENTS
(Cost: $285,040,752) 100.0%.......... $302,759,214
============
</TABLE>
- -------
(a) Not a coupon rate; bond equivalent yield to maturity.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES:
U.S. Government (41.0%):
U.S. Treasury Note.................... 5.13% 06/30/98 $1,000,000 $ 997,500
----------
Technology (4.3%):
McDonnell Douglas Corp................ 8.63 04/01/97 100,000 103,519
----------
Utilities (4.6%):
Big Rivers Electric Corp.............. 9.50 02/15/17 100,000 111,497
----------
TOTAL INTERMEDIATE-TERM DEBT SECURITIES
(Cost: $1,172,902) 49.9%.............. 1,212,516
----------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Government (41.1%):
U.S. Treasury Note.................... 4.25 12/31/95 1,000,000 1,000,000
----------
U.S. Government (5.0%):
U.S. Treasury Bills................... 4.80 03/14/96 120,000 118,800
----------
Commercial Paper (4.0%):
Ford Motor Credit Corp................ 5.75 01/03/96 100,000 99,936
----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $1,218,736) 50.1%.............. 1,218,736
----------
TOTAL INVESTMENTS
(Cost: $2,391,638) 100.0%............. $2,431,252
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ----------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES:
U.S. Government (42.8%):
U.S. Treasury Note.................. 5.63% 11/30/00 $10,250,000 $10,352,500
-----------
Government-Other (2.4%):
City of New York.................... 10.00 08/01/05 500,000 575,452
-----------
Basic Materials (2.1%):
Monsanto Co......................... 6.00 07/01/00 500,000 503,401
-----------
Consumer, Cyclical (13.0%):
Albertson's, Inc.................... 5.65 03/26/98 500,000 501,575
Costco Wholesale Corp............... 5.75 05/15/02 500,000 475,625
Fruit of the Loom, Inc.............. 7.88 10/15/99 600,000 635,721
Gannett, Inc........................ 5.85 05/01/00 500,000 501,802
Penske Truck Leasing Co. LP......... 8.25 11/01/99 500,000 538,230
Sears Roebuck & Co.................. 5.49 09/28/98 500,000 496,950
-----------
3,149,903
-----------
Financial (11.0%):
American Express Credit Corp........ 6.13 06/15/00 500,000 507,206
BankAmerica Corp.................... 7.75 07/15/02 500,000 543,307
Chemical Bank....................... 7.25 09/15/02 500,000 531,867
General Motors Acceptance Corp...... 8.38 05/01/97 250,000 258,128
Sun America, Inc.................... 9.00 01/15/99 500,000 540,901
Tenneco Credit Corp................. 9.63 08/15/01 240,000 278,635
-----------
2,660,044
-----------
Industrial (3.2%):
Comdisco, Inc....................... 7.75 09/01/99 750,000 790,851
-----------
Technology (1.1%):
Lockheed Corp....................... 5.88 03/15/98 250,000 251,844
-----------
Utilities (22.8%):
Alabama Power Co.................... 6.00 03/01/00 500,000 502,638
Baltimore Gas & Electric Co......... 6.13 07/01/03 750,000 752,389
Big Rivers Electric Corp............ 9.50 02/15/17 200,000 222,993
Commonwealth Edison Co.............. 7.50 01/01/01 500,000 505,805
Connecticut Light & Power Co........ 5.50 02/01/99 500,000 497,098
Connecticut Yankee Atomic Pwr....... 12.00 06/01/00 419,000 438,690
Iowa Illinois Gas & Electric........ 5.05 10/15/98 500,000 491,178
Pennsylvania Power & Light Co....... 6.00 06/01/00 750,000 749,945
Public Svc. Electric & Gas Co....... 7.88 11/01/01 750,000 810,327
Tenneco, Inc........................ 8.00 11/15/99 500,000 535,085
-----------
5,506,148
-----------
TOTAL INTERMEDIATE-TERM DEBT
SECURITIES
(Cost: $22,990,109) 98.4%........... 23,790,143
-----------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ----------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.4%):
U.S. Treasury Bills................. 4.80 03/14/96 90,000 89,100
-----------
Commercial Paper (1.2%):
Ford Motor Credit Corp.............. 5.75 01/03/96 300,000 299,808
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $388,908) 1.6%............... 388,908
-----------
TOTAL INVESTMENTS
(Cost: $23,379,017) 100.0%.......... $24,179,051
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (4.4%):
Calgon Carbon Corp..................................... 78,300 $ 939,600
Georgia Pacific Corp................................... 30,000 2,058,750
Homestake Mining Co.................................... 70,000 1,093,750
Inland Steel, Inc...................................... 30,100 756,263
LTV Corp.*............................................. 130,000 1,787,500
Methanex Corp.*........................................ 110,000 804,375
Newmont Mining Corp.................................... 30,400 1,375,600
USX-U.S. Steel Group, Inc.............................. 100,000 3,075,000
------------
11,890,838
------------
Consumer, Cyclical (8.0%):
AMR Corp.*............................................. 30,000 2,227,500
Centex Corp............................................ 50,000 1,737,500
Cooper Industries...................................... 31,200 1,146,600
Eastman Kodak Co....................................... 22,500 1,507,500
Federal-Mogul Corp..................................... 120,000 2,355,000
Fleetwood Enterprises, Inc............................. 30,000 772,500
General Electric Co.................................... 15,000 1,080,000
General Motors Corp.................................... 108,000 5,710,500
Offshore Logistics, Inc.*.............................. 60,000 757,500
Rollins Truck Leasing Co............................... 98,000 1,090,250
Sears Roebuck & Co..................................... 20,000 780,000
Terra Industries, Inc.................................. 65,000 918,125
TRW, Inc............................................... 25,000 1,937,500
------------
22,020,475
------------
Consumer, Non-Cyclical (1.3%):
Columbia HCA Healthcare Corp........................... 20,000 1,015,000
Pepsi-Cola Puerto Rico Bottling Co..................... 50,000 575,000
Pharmacia & Upjohn, Inc................................ 52,700 2,042,125
------------
3,632,125
------------
Energy (12.5%):
Anadarko Petroleum Corp................................ 30,000 1,623,750
Chieftan International, Inc.*.......................... 90,000 1,597,500
Dresser Industries, Inc................................ 110,000 2,681,250
Enron Oil & Gas Co..................................... 101,000 2,424,000
Ente Nazionale Idrocarburi ADR*........................ 80,000 2,740,000
Lomak Petroleum, Inc................................... 97,000 945,750
Nabors Industries, Inc.*............................... 280,000 3,115,000
Occidental Petroleum Corp.............................. 105,000 2,244,375
Oceaneering Int'l, Inc.*............................... 210,000 2,703,750
Parker & Parsley Petroleum............................. 51,900 1,141,800
Pride Petroleum Svcs., Inc............................. 155,000 1,646,875
Seagull Energy Corp.*.................................. 40,000 890,000
Unocal Corp............................................ 105,000 3,058,125
USX-Marthon Group...................................... 235,000 4,582,500
Western Atlas, Inc.*................................... 56,000 2,828,000
------------
34,222,675
------------
Financial (5.4%):
Allstate Corp.......................................... 45,000 1,850,625
First Chicago NBD Corp................................. 32,580 1,286,910
Fleet Financial Group, Inc............................. 35,000 1,426,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- ------------
<S> <C> <C>
Horace Mann Educators Corp............................. 80,000 $ 2,500,000
Midlantic Corp., Inc................................... 25,000 1,640,625
New Plan Realty Trust.................................. 80,000 1,740,000
PNC Bank Corp.......................................... 30,000 967,500
St. Paul Companies (The)............................... 60,200 3,348,625
------------
14,760,535
------------
Industrial (10.7%):
Anixter International, Inc.*........................... 120,000 2,235,000
Brockway Standard Holdings*............................ 40,000 620,000
Browning Ferris Inds., Inc............................. 80,000 2,360,000
Commercial Metals Co................................... 15,000 371,250
Covenant Transport, Inc. Cl A*......................... 45,500 546,000
Fluor Corp............................................. 56,300 3,715,800
Hanson PLC--ADR........................................ 250,000 3,812,500
Lafarge Corp........................................... 145,000 2,700,625
Manitowoc Company, Inc................................. 40,000 1,225,000
Sea Containers, Ltd. Cl A.............................. 85,000 1,476,875
Silicon Valley Group, Inc.*............................ 80,000 2,020,000
Tecumseh Products Co. Cl A............................. 19,000 983,250
TNT Freightways Corp................................... 35,000 704,375
Triad Systems Corp.*................................... 83,200 509,600
Vallen Corp.*.......................................... 30,000 588,750
Waste Management Intl. PLC*............................ 135,000 1,451,250
WMX Technologies, Inc.................................. 135,000 4,033,125
------------
29,353,400
------------
Technology (5.5%):
Alliance Semiconductor Corp.*.......................... 95,000 1,104,375
AT&T Corp.............................................. 96,700 6,261,325
GenCorp, Inc........................................... 185,000 2,266,250
Minnesota Mining & Mfg. Co............................. 25,000 1,656,250
Motorola, Inc.......................................... 25,000 1,425,000
Tandem Computers, Inc.*................................ 95,000 1,009,375
Varian Associates, Inc................................. 30,000 1,432,500
------------
15,155,075
------------
Utilities (3.1%):
National Fuel Gas Co................................... 25,000 840,625
Peoples Energy Corp.................................... 70,000 2,222,500
Telefonos de Mexico SA................................. 80,000 2,550,000
Telephone & Data Systems, Inc.......................... 50,000 1,975,000
Tenneco, Inc........................................... 20,000 992,500
------------
8,580,625
------------
Total Common Stocks
(Cost: $125,750,119) 50.9%............................. 139,615,748
------------
</TABLE>
- -------
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
------ -------- ----------- ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government (6.6%):
U.S. Treasury Note.................. 5.13% 06/30/98 $ 3,000,000 $ 2,992,500
U.S. Treasury Bond.................. 10.38 11/15/12 11,000,000 15,214,375
------------
18,206,875
------------
Government-Other (7.4%):
City of New York.................... 10.00 08/01/05 500,000 575,452
Connecticut Housing Fin. Auth....... 7.63 05/15/21 1,000,000 1,020,190
Federal National Mtge Assn.......... 9.50 11/10/20 1,000,000 1,066,620
Republic of Iceland................. 6.13 02/01/04 2,500,000 2,484,950
San Bernardino County, Calif........ 7.69(a) 08/01/16 40,000,000 8,765,200
State of California................. 8.15 09/01/01 500,000 550,815
Suffolk County, New York............ 5.80 11/01/04 250,000 243,955
Suffolk County, New York............ 5.88 11/01/05 750,000 729,465
Swedish Export Credit............... 9.88 03/15/38 3,000,000 3,331,125
Tennessee Valley Authority.......... 6.88 12/15/43 1,500,000 1,487,337
------------
20,255,109
------------
Consumer, Cyclical (4.0%):
Centex Corp......................... 7.38 06/01/05 2,000,000 2,054,788
Costco Wholesale Corp............... 5.75 05/15/02 1,000,000 951,250
Dillard Dept. Stores, Inc........... 9.63 09/15/97 500,000 533,829
Fruit of the Loom, Inc.............. 7.88 10/15/99 500,000 529,767
Gannett, Inc........................ 5.85 05/01/00 1,000,000 1,003,605
General Motors Corp................. 9.75 05/15/99 500,000 508,456
Nordstrom, Inc...................... 8.88 02/15/98 500,000 532,086
Penney (J.C.) Co., Inc.............. 10.00 10/15/97 500,000 537,050
Penske Truck Leasing Co. LP......... 8.25 11/01/99 1,000,000 1,076,460
Shopko Stores, Inc.................. 9.00 11/15/04 1,000,000 1,138,303
Valassis Communication, Inc......... 9.55 12/01/03 2,000,000 2,054,844
------------
10,920,438
------------
Consumer, Non-Cyclical (3.1%):
Ralston Purina Co................... 8.63 02/15/22 2,500,000 2,968,075
Rhone-Poulenc S A................... 6.75 10/15/99 1,000,000 1,022,543
Rhone-Poulenc S A................... 7.75 01/15/02 1,000,000 1,072,825
Rite-Aid Corp....................... 6.88 08/15/13 2,500,000 2,444,847
Whitman Corp........................ 7.63 06/15/15 1,000,000 1,060,452
------------
8,568,742
------------
Energy (1.4%):
BP North America, Inc............... 9.88 03/15/04 1,000,000 1,250,553
Tosco Corp.......................... 8.25 05/15/03 2,500,000 2,776,610
------------
4,027,163
------------
Financial (7.3%):
Aristar, Inc........................ 8.88 08/15/98 500,000 538,330
BankAmerica Corp.................... 7.75 07/15/02 500,000 543,307
Berkley (W.R.) Corp................. 8.70 01/01/22 1,500,000 1,758,183
British Gas Financial, Inc.......... 8.75 03/15/98 500,000 531,644
Chase Manhattan Bank................ 7.50 12/01/97 1,000,000 1,035,079
CIT Group Holdings, Inc............. 8.75 04/15/98 500,000 533,725
Citicorp............................ 10.75 12/15/15 1,009,000 1,032,973
Fairfax Financial Holdings.......... 8.25 10/01/15 500,000 538,765
General Electric Capital Corp....... 8.75 05/21/07 2,000,000 2,428,280
General Motors Acceptance Corp...... 7.88 03/04/97 500,000 509,442
General Motors Acceptance Corp...... 8.38 05/01/97 750,000 774,384
Heller Financial, Inc............... 9.13 08/01/99 500,000 550,980
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
COUPON FACE MARKET
RATE MATURITY AMOUNT VALUE
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
Kemper Corp......................... 8.80% 11/01/98 $ 500,000 $ 534,221
Progressive Corp. of Ohio........... 10.00 12/15/00 500,000 584,815
Rodamco NV.......................... 7.75 05/15/15 2,000,000 2,252,806
Roosevelt Fed Svgs & Ln Assn........ 10.13 04/15/18 1,000,000 1,086,751
Sun America, Inc.................... 9.00 01/15/99 1,000,000 1,081,802
Sun America, Inc.................... 9.95 02/01/12 2,000,000 2,579,064
Vesta Insurance Group, Inc.......... 8.75 07/15/25 1,000,000 1,093,876
------------
19,988,427
------------
Technology (1.9%):
McDonnell Douglas Corp.............. 9.75 04/01/12 4,000,000 5,118,992
------------
Utilities (9.3%):
Bellsouth Telecommunication......... 7.50 06/15/33 2,500,000 2,665,010
Big Rivers Electric Corp............ 9.50 02/15/17 2,000,000 2,229,930
Big Rivers Electric Corp............ 9.52 03/15/19 2,500,000 2,792,885
Big Rivers Electric Corp............ 10.70 09/15/17 4,000,000 4,507,392
Central Telephone Co................ 9.28 11/27/00 1,000,000 1,141,920
Connecticut Yankee Atomic Pwr....... 12.00 06/01/00 1,674,000 1,752,666
New York Telephone Co............... 6.70 11/01/23 2,000,000 1,965,502
Pacific Gas & Electric Co........... 8.75 01/01/01 1,000,000 1,111,659
PacifiCorp.......................... 8.73 02/12/98 1,000,000 1,063,690
Philadelphia Electric Co............ 7.13 08/15/23 1,000,000 993,370
Southern Union Co................... 7.60 02/01/24 5,000,000 5,171,470
------------
25,395,494
------------
TOTAL LONG-TERM DEBT SECURITIES
(Cost: $105,857,029) 41.0%......... 112,481,240
------------
SHORT-TERM DEBT SECURITIES:
U.S. Government (4.8%):
U.S. Treasury Note.................. 4.00 01/31/96 13,000,000 12,991,894
------------
Basic Materials (0.2%):
Dow Corning......................... 8.38 11/01/96 500,000 511,530
------------
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
Commercial Paper (3.1%):
General Electric Capital Corp....... 5.95 01/03/96 3,520,000 3,517,672
Hershey Foods Corp.................. 5.80 01/02/96 5,085,000 5,082,542
------------
8,600,214
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $22,095,928) 8.1%............ 22,103,638
------------
TOTAL INVESTMENTS
(Cost: $253,703,076) 100.0%......... $274,200,626
============
</TABLE>
- -------
(a) Not a coupon rate; bond equivalent yield to maturity.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT MARKET
DATE PRICE TO CALL VALUE
---------- -------- ------- -----------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Allstate Corp......................... 01/20/96 $30.00 8,000 $ (87,000)
Allstate Corp......................... 01/20/96 35.00 20,000 (122,500)
Allstate Corp......................... 01/20/96 40.00 2,000 (3,375)
Allstate Corp......................... 04/20/96 40.00 5,000 (15,625)
AMR Corp.............................. 01/20/96 80.00 5,000 (2,188)
AMR Corp.............................. 02/17/96 80.00 5,000 (5,625)
Anadarko Petroleum Corp............... 02/17/96 45.00 12,500 (119,531)
Anadarko Petroleum Corp............... 05/18/96 55.00 5,000 (12,500)
Anixter International, Inc............ 01/20/96 20.00 15,500 (4,844)
AT&T Corp............................. 01/20/96 50.00 1,800 (26,325)
AT&T Corp............................. 01/20/96 55.00 1,500 (14,438)
AT&T Corp............................. 01/20/96 60.00 3,400 (17,850)
Browning Ferris Inds., Inc............ 03/16/96 30.00 10,000 (13,125)
Calgon Carbon Corp.................... 02/17/96 12.50 2,500 (938)
Centex Corp........................... 01/20/96 30.00 32,500 (152,344)
Cooper Industries..................... 01/20/96 35.00 10,000 (19,375)
Cooper Industries..................... 01/20/96 40.00 6,200 (969)
Cooper Industries..................... 04/20/96 35.00 5,000 (15,313)
Dresser Industries, Inc............... 01/20/96 22.50 15,000 (30,000)
Eastman Kodak Co...................... 01/20/96 55.00 2,000 (24,500)
Enron Oil & Gas Co.................... 04/20/96 25.00 11,000 (15,469)
First Chicago NBD Corp................ 01/20/96 70.00 12,670 (35,634)
Fluor Corp............................ 01/20/96 55.00 3,800 (42,275)
Fluor Corp............................ 01/20/96 60.00 2,500 (15,625)
General Electric Co................... 03/16/96 65.00 5,000 (39,375)
General Electric Co................... 03/16/96 75.00 5,000 (9,375)
General Motors Corp................... 03/16/96 50.00 30,000 (108,750)
General Motors Corp................... 03/16/96 55.00 5,000 (6,875)
Georgia Pacific Corp.................. 01/20/96 80.00 5,000 (156)
Georgia Pacific Corp.................. 04/20/96 75.00 5,000 (8,750)
Lafarge Corp.......................... 02/17/96 20.00 4,000 (1,500)
Minnesota Mining & Mfg. Co............ 01/20/96 55.00 5,000 (57,813)
Minnesota Mining & Mfg. Co............ 01/20/96 60.00 19,000 (109,250)
Motorola, Inc......................... 04/20/96 55.00 15,000 (95,625)
Newmont Mining Corp................... 01/20/96 42.50 10,000 (31,875)
Newmont Mining Corp................... 06/22/96 42.50 15,000 (84,375)
Oceaneering Int'l, Inc................ 01/20/96 12.50 5,000 (3,750)
Pharmacia & Upjohn, Inc............... 04/20/96 40.00 5,000 (8,750)
PNC Bank Corp......................... 05/18/96 32.50 5,000 (10,000)
Sears Roebuck & Co.................... 01/20/96 35.00 5,000 (22,500)
St. Paul Companies (The).............. 01/20/96 50.00 1,200 (6,825)
St. Paul Companies (The).............. 01/20/96 55.00 10,000 (12,188)
St. Paul Companies (The).............. 01/20/96 60.00 10,000 (625)
St. Paul Companies (The).............. 04/20/96 50.00 10,000 (63,125)
St. Paul Companies (The).............. 04/20/96 55.00 5,000 (13,750)
Tecumseh Products Co. Cl A............ 03/16/96 50.00 8,000 (30,500)
Telefonos de Mexico SA................ 01/20/96 25.00 10,000 (70,625)
Telefonos de Mexico SA................ 02/17/96 30.00 20,000 (65,000)
Telephone & Data Systems, Inc......... 05/18/96 40.00 5,000 (12,813)
TNT Freightways Corp.................. 03/16/96 20.00 5,000 (8,125)
TRW, Inc.............................. 01/20/96 70.00 20,000 (150,000)
TRW, Inc.............................. 04/20/96 75.00 5,000 (23,438)
Unocal Corp........................... 04/20/96 30.00 10,000 (10,000)
USX-Marthon Group..................... 01/20/96 20.00 5,000 (938)
USX-U.S. Steel Group, Inc............. 01/20/96 30.00 5,000 (5,313)
USX-U.S. Steel Group, Inc............. 01/20/96 32.50 10,000 (1,875)
Western Atlas, Inc.................... 03/16/96 50.00 6,000 (15,000)
WMX Technologies, Inc................. 01/20/96 30.00 10,000 (5,000)
-----------
TOTAL OPTIONS WRITTEN: (Premiums
Recieved: $1,281,719)................ $(1,891,223)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (1.4%):
ABT Building Products Corp.*............................. 40,500 $ 577,127
Mississippi Chemical Corp................................ 12,000 279,000
-----------
856,127
-----------
Consumer, Cyclical (11.7%):
American Radio Systems Corp.*............................ 35,000 980,000
Catherines Stores Corp.*................................. 19,000 156,750
Centex Corp.............................................. 9,000 312,750
Fleetwood Enterprises, Inc............................... 20,000 515,000
General Motors Corp...................................... 25,000 1,321,875
Marisa Christina, Inc.*.................................. 35,000 595,000
Micro Warehouse, Inc.*................................... 15,000 648,750
Mohawk Industries, Inc.*................................. 13,000 203,125
Nimbus CD International, Inc.*........................... 120,000 975,000
Pep Boys-Manny, Moe & Jack............................... 40,000 1,025,000
Shopko Stores, Inc....................................... 30,000 337,500
Team Rental Group, Inc.*................................. 25,000 212,500
-----------
7,283,250
-----------
Consumer, Non-Cyclical (8.6%):
Benson Eyecare Corp.*.................................... 110,000 990,000
Medtronic, Inc........................................... 17,000 949,875
Mylan Laboratories, Inc.................................. 40,000 940,000
Pepsi-Cola Puerto Rico Bottling Co....................... 25,000 287,500
Pharmacia & Upjohn, Inc.................................. 30,000 1,162,500
Protocol Systems, Inc.*.................................. 37,500 393,750
Sterling Vision, Inc.*................................... 93,000 639,375
-----------
5,363,000
-----------
Energy (13.9%):
Chieftan International, Inc.*............................ 65,000 1,153,750
Ente Nazionale Idrocarburi ADR*.......................... 20,000 685,000
Nabors Industries, Inc.*................................. 140,000 1,557,500
Oceaneering Int'l, Inc.*................................. 70,000 901,250
Pride Petroleum Svcs., Inc............................... 102,000 1,083,750
Sonat Offshore Drilling, Inc............................. 30,000 1,342,500
USX-Marthon Group........................................ 45,000 877,500
Western Atlas, Inc.*..................................... 20,000 1,010,000
-----------
8,611,250
-----------
Financial (1.4%):
American Eagle Group, Inc................................ 42,000 467,250
First Financial Caribbean Corp........................... 20,000 375,000
-----------
842,250
-----------
Industrial (26.4%):
AFC Cable Systems, Inc.*................................. 35,500 488,125
Alternative Resources Corp.*............................. 14,000 423,500
Anixter International, Inc.*............................. 60,000 1,117,500
Brockway Standard Holdings*.............................. 10,000 155,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
Browning Ferris Inds., Inc............................... 30,000 $ 885,000
Cambridge Tech. Partners, Inc.*.......................... 8,000 460,000
Canadian National Railway*............................... 6,000 90,000
Celadon Group, Inc.*..................................... 32,000 288,000
Corrections Corp. of America*............................ 18,000 668,250
Eagle USA Airfreight, Inc.*.............................. 5,000 131,250
Gardner Denver Machinery*................................ 46,000 874,000
LSI Industries, Inc...................................... 18,500 296,000
Lufkin Industries, Inc................................... 35,000 791,875
Manitowoc Company, Inc................................... 19,100 584,937
Maxxim Medical, Inc.*.................................... 35,000 586,250
Pall Corp................................................ 35,000 940,625
Perkin-Elmer Corp........................................ 30,000 1,132,500
Powell Industries, Inc.*................................. 30,000 247,500
PST Vans Inc.*........................................... 25,000 115,625
Sea Containers, Ltd. Cl A................................ 42,000 729,750
Silicon Valley Group, Inc.*.............................. 50,000 1,262,500
Smith International, Inc.*............................... 65,000 1,527,500
TNT Freightways Corp..................................... 10,500 211,312
Triad Systems Corp.*..................................... 70,000 428,750
UCAR Int'l., Inc.*....................................... 10,000 337,500
Vallen Corp.*............................................ 10,000 196,250
Watsco, Inc.............................................. 43,700 781,137
Zero Corp................................................ 35,000 621,250
-----------
16,371,886
-----------
Technology (21.9%):
Analysts International Corp.............................. 23,500 705,000
Andrew Corp.*............................................ 30,000 1,147,500
GenCorp, Inc............................................. 65,000 796,250
Glenayre Technologies, Inc.*............................. 13,000 809,250
Intuit, Inc.*............................................ 7,000 546,000
Medic Computer Systems, Inc.* 15,000 907,500
Micron Technology, Inc................................... 20,000 795,000
Molex Inc., Cl A......................................... 23,000 704,375
Parametric Technology Co.*............................... 15,000 997,500
Qualcomm, Inc.*.......................................... 30,000 1,290,000
Stratacom, Inc.*......................................... 8,000 588,000
Symantec Corp.*.......................................... 30,000 697,500
Tandem Computers, Inc.*.................................. 60,000 637,500
Tech-Sym Corp.*.......................................... 10,000 316,250
Tellabs, Inc.*........................................... 25,000 925,000
Varian Associates, Inc................................... 10,000 477,500
Xilinx, Inc.*............................................ 40,000 1,220,000
-----------
13,560,125
-----------
Utilities (4.2%):
New Jersey Resources Corp................................ 18,000 542,250
Southwest Gas Corp....................................... 22,000 387,750
Telefonos de Mexico SA................................... 25,000 796,875
Worldcom, Inc.*.......................................... 25,000 881,250
-----------
2,608,125
-----------
TOTAL COMMON STOCKS
(Cost: $47,563,664) 89.5%................................ 55,496,013
-----------
</TABLE>
- -------
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATE MATURITY AMOUNT COST
-------- -------- ---------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S Government/Agencies (4.2%):
Federal National Mtge Assoc. ......... 5.50% 01/03/96 $1,660,000 $ 1,658,984
Federal National Mtge Assoc. ......... 5.50 01/03/96 920,000 919,438
-----------
2,578,422
-----------
Commercial Paper (6.3%):
Coca Cola............................. 5.72 01/05/96 1,000,000 999,047
Ford Motor Credit Corp. .............. 5.92 01/02/96 1,425,000 1,424,297
Ford Motor Credit Corp. .............. 5.80 01/02/96 315,000 314,848
General Electric Capital Corp. ....... 5.95 01/03/96 1,197,000 1,196,208
-----------
3,934,400
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $6,512,822) 10.5%.............. 6,512,822
-----------
TOTAL INVESTMENTS
(Cost: $54,076,486) 100.0%............ $62,008,835
===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT MARKET
DATE PRICE TO CALL VALUE
---------- -------- ------- ---------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Cambridge Tech. Partners, Inc. ......... 03/16/96 $45.00 8,000 $(107,000)
Centex Corp. ........................... 01/20/96 30.00 9,000 (42,188)
General Motors Corp. ................... 01/20/96 47.50 5,000 (25,313)
Glenayre Technologies, Inc. ............ 03/16/96 30.00 5,250 (61,250)
Glenayre Technologies, Inc. ............ 03/16/96 33.38 3,750 (34,375)
Glenayre Technologies, Inc. ............ 03/16/96 36.63 10,500 (70,000)
Intuit, Inc. ........................... 01/20/96 65.00 4,000 (48,500)
Intuit, Inc. ........................... 04/20/96 65.00 3,000 (51,750)
Medic Computer Systems, Inc. ........... 01/20/96 50.00 2,000 (23,250)
Medic Computer Systems, Inc. ........... 02/17/96 55.00 6,000 (48,375)
Medic Computer Systems, Inc. ........... 02/17/96 60.00 4,000 (20,500)
Medic Computer Systems, Inc. ........... 02/17/96 65.00 3,000 (8,625)
Medtronic, Inc. ........................ 02/17/96 50.00 15,00 (86,250)
Medtronic, Inc. ........................ 02/17/96 55.00 2,000 (5,250)
Micro Warehouse, Inc. .................. 02/17/96 45.00 10,000 (35,000)
Micro Warehouse, Inc. .................. 05/18/96 45.00 5,000 (29,688)
Micron Technology, Inc. ................ 02/17/96 40.00 10,000 (41,250)
Micron Technology, Inc. ................ 04/20/96 45.00 10,000 (40,000)
Parametric Technology Co. .............. 02/17/96 55.00 6,500 (61,563)
Parametric Technology Co. .............. 02/17/96 60.00 8,500 (80,750)
Pep Boys-Manny, Moe & Jack.............. 01/20/96 22.50 5,000 (15,938)
Perkin-Elmer Corp. ..................... 06/22/96 40.00 5,000 (12,813)
Pharmacia & Upjohn, Inc. ............... 04/20/96 40.00 6,000 (10,500)
Qualcomm, Inc. ......................... 01/20/96 35.00 5,000 (43,125)
Qualcomm, Inc. ......................... 01/20/96 40.00 17,500 (70,000)
Qualcomm, Inc. ......................... 04/20/96 35.00 2,500 (26,250)
Qualcomm, Inc. ......................... 04/20/96 45.00 5,000 (24,370)
Silicon Valley Group, Inc. ............. 03/16/96 30.00 5,000 (7,188)
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT MARKET
DATE PRICE TO CALL VALUE
---------- -------- ------- -----------
<S> <C> <C> <C> <C>
Sonat Offshore Drilling, Inc........... 02/17/96 $35.00 3,000 $ (30,000)
Sonat Offshore Drilling, Inc........... 02/17/96 40.00 7,500 (40,313)
Sonat Offshore Drilling, Inc........... 05/18/96 40.00 5,000 (33,125)
Sonat Offshore Drilling, Inc........... 05/18/96 45.00 3,000 (11,063)
Stratacom, Inc......................... 02/17/96 55.00 4,000 (74,250)
Stratacom, Inc......................... 02/17/96 60.00 4,000 (55,500)
Telefonos de Mexico SA................. 01/20/96 25.00 5,000 (35,313)
Telefonos de Mexico SA................. 01/20/96 30.00 8,000 (20,000)
Telefonos de Mexico SA................. 02/17/96 30.00 2,000 (6,500)
Tellabs, Inc........................... 01/20/96 35.00 3,000 (10,875)
Tellabs, Inc........................... 02/17/96 40.00 4,000 (7,500)
Tellabs, Inc........................... 03/16/96 35.00 14,000 (66,500)
Tellabs, Inc........................... 03/16/96 40.00 4,000 (11,500)
Xilinx, Inc............................ 01/20/96 30.00 8,000 (21,500)
Xilinx, Inc............................ 01/20/96 35.00 3,000 (2,250)
-----------
TOTAL OPTIONS WRITTEN
(Premiums Received: $1,355,501)....... $(1,557,250)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<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 --
$73,372,512
All America Fund --
$407,562,323
Equity Index Fund --
$32,236,473
Bond Fund --
$285,040,752)
(Notes 1 and 3)........ $73,372,512 $532,545,461 $ 40,820,903 $302,759,214
Cash.................... 33,132 1,844,020 1,988,773 3,209,091
Interest and dividends
receivable............. -- 765,203 78,577 5,318,776
Receivable for
securities sold........ -- 288,645 2,475 --
Other Assets............ -- 63,244 3,967 106
----------- ------------ ------------ ------------
Total Assets............ 73,405,644 535,506,573 42,894,695 311,287,187
Payable for securities
purchased.............. -- 2,177,923 82,267 8,150
Other liabilities....... -- 174,285 66 --
----------- ------------ ------------ ------------
Net Assets.............. $73,405,644 $533,154,365 $ 42,812,362 $311,279,037
=========== ============ ============ ============
Number of Shares
Outstanding (Note 4)... 62,332,604 250,787,286 31,814,799 217,885,956
=========== ============ ============ ============
Net Asset Values,
offering and redemption
price per share........ $1.18 $2.13 $1.35 $1.43
===== ===== ===== =====
<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 --
$2,391,638
Mid-Term Bond Fund --
$23,379,017
Composite Fund --
$253,703,076
Aggressive Equity
Fund -- $54,076,486)
(Notes 1 and 3)......... $ 2,431,252 $ 24,179,051 $274,200,626 $ 62,008,835
Cash.................... 29,468 18,962 -- 128,440
Interest and dividends
receivable............. 51,765 299,944 2,460,162 18,282
Receivable for
securities sold........ -- -- 2,617,571 53,173
Other assets............ -- -- 6,825 --
----------- ------------ ------------ ------------
Total Assets............ 2,512,485 24,497,957 279,285,184 62,208,730
Payable for securities
purchased.............. -- -- 971,629 2,023,907
Call options written, at
market value
(Premium received:
Composite Fund --
$1,281,719
Aggressive Equity
Fund -- $1,355,501)... -- -- 1,891,223 1,557,250
Other liabilities....... -- -- 130,710 --
----------- ------------ ------------ ------------
Net Assets.............. $ 2,512,485 $ 24,497,957 $276,291,622 $58,627,573
=========== ============ ============ ============
Number of Shares
Outstanding (Note 4)... 2,465,605 24,493,447 152,935,666 43,379,464
=========== ============ ============ ============
Net Asset Values,
offering and redemption
price per share........ $1.02 $1.00 $1.81 $1.35
===== ===== ===== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends.............. $ -- $ 8,811,357 $ 778,882 $ --
Interest............... 5,000,946 519,951 3,587 19,896,395
------------- ------------- ------------- -------------
Total income............ 5,000,946 9,331,308 782,469 19,896,395
------------- ------------- ------------- -------------
Expenses:
Investment advisory
fees (Note 2)......... 211,088 2,248,272 40,145 1,391,001
------------- ------------- ------------- -------------
Net Investment Income... 4,789,858 7,083,036 742,324 18,505,394
------------- ------------- ------------- -------------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note 1
):
Net realized gain (loss)
on investments:
Net proceeds from sales
and maturities........ 1,370,239,866 1,485,233,505 4,627,857 1,033,868,939
Cost of securities sold
or matured............ 1,370,240,721 1,470,434,620 3,797,154 1,038,058,236
------------- ------------- ------------- -------------
Net realized gain
(loss)................. (855) 14,798,885 830,703 (4,189,297)
Net unrealized
appreciation
(depreciation) of
investments............ -- 113,581,011 8,117,495 34,607,512
------------- ------------- ------------- -------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... (855) 128,379,896 8,948,198 30,418,215
------------- ------------- ------------- -------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ $ 4,789,003 $ 135,462,932 $ 9,690,522 $ 48,923,609
============= ============= ============= =============
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY
BOND FUND BOND FUND FUND FUND
------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends.............. $ -- $ -- $ 2,776,809 $ 285,556
Interest............... 149,494 1,553,312 9,456,615 299,844
------------- ------------- ------------- -------------
Total income............ 149,494 1,553,312 12,233,424 585,400
------------- ------------- ------------- -------------
Expenses:
Investment advisory
fees (Note 2)......... 14,478 124,503 1,272,077 325,785
------------- ------------- ------------- -------------
Net Investment Income... 135,016 1,428,809 10,961,347 259,615
------------- ------------- ------------- -------------
Net Realized and
Unrealized Gain (Loss)
on Investments:
Net realized gain (loss)
on investments:
Net proceeds from sales
and maturities........ 5,685,116 52,808,568 1,377,817,338 350,436,564
Cost of securities sold
or matured............ 5,685,045 53,359,329 1,369,593,405 344,312,567
------------- ------------- ------------- -------------
Net realized gain
(loss)................. 71 (550,761) 8,223,933 6,123,997
Net unrealized
appreciation
(depreciation) of
investments (Note 1)... 80,884 2,852,665 31,059,449 6,213,711
------------- ------------- ------------- -------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 80,955 2,301,904 39,283,382 12,337,708
------------- ------------- ------------- -------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ $ 215,971 $ 3,730,713 $ 50,244,729 $ 12,597,323
============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
MONEY MARKET FUND ALL AMERICA FUND EQUITY INDEX FUND
-------------------------- -------------------------- ------------------------
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 4,789,858 $ 1,990,270 $ 7,083,036 $ 8,183,579 $ 742,324 $ 704,355
Net realized gain
(loss) on investments. (855) (2,108) 14,798,885 26,416,088 830,703 46,675
Unrealized appreciation
(depreciation) of
investments........... -- -- 113,581,011 (28,919,738) 8,117,495 (441,894)
------------ ------------ ------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 4,789,003 1,988,162 135,462,932 5,679,929 9,690,522 309,136
------------ ------------ ------------ ------------ ----------- -----------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 92,909,943 94,487,674 85,691,993 39,275,910 27,580,190 15,548,022
Dividends reinvested... 4,789,411 1,985,341 16,966,116 44,786,526 1,434,797 844,140
Cost of shares
redeemed.............. (105,660,794) (52,763,640) (63,029,352) (94,291,315) (20,510,835) (16,513,187)
Dividend distributions. (4,789,411) (1,985,341) (16,966,116) (44,786,526) (1,434,797) (844,140)
------------ ------------ ------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... (12,750,851) 41,724,034 22,662,641 (55,015,405) 7,069,355 (965,165)
------------ ------------ ------------ ------------ ----------- -----------
Increase (Decrease) in
Net Assets............. (7,961,848) 43,712,196 158,125,573 (49,335,476) 16,759,877 (656,029)
Net Assets, Beginning of
Year................... 81,367,492 37,655,296 375,028,792 424,364,268 26,052,485 26,708,514
------------ ------------ ------------ ------------ ----------- -----------
Net Assets, End of Year. $ 73,405,644 $ 81,367,492 $533,154,365 $375,028,792 $42,812,362 $26,052,485
============ ============ ============ ============ =========== ===========
Components of Net
Assets:
Paid-in capital........ $ 73,307,847 $ 81,269,287 $408,944,273 $369,315,516 $34,154,804 $25,650,652
Accumulated
undistributed net
investment income
(loss)................ 102,832 102,385 (191,138) (160,586) (16,607) (14,453)
Accumulated
undistributed net
realized gain (loss)
on investments........ (5,035) (4,180) (581,908) (5,528,265) 89,735 (50,649)
Unrealized appreciation
(depreciation) of
investments........... -- -- 124,983,138 11,402,127 8,584,430 466,935
------------ ------------ ------------ ------------ ----------- -----------
Net Assets, End of Year. $ 73,405,644 $ 81,367,492 $533,154,365 $375,028,792 $42,812,362 $26,052,485
============ ============ ============ ============ =========== ===========
<CAPTION>
BOND FUND SHORT-TERM BOND FUND MID-TERM BOND FUND
-------------------------- -------------------------- ------------------------
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 18,505,394 $ 16,647,416 $ 135,016 $ 82,996 $ 1,428,809 $ 951,542
Net realized gain
(loss) on investments. (4,189,297) (812,116) 71 (10,738) (550,761) (631)
Unrealized appreciation
(depreciation) of
investments........... 34,607,512 (24,049,488) 80,884 (40,540) 2,852,665 (1,599,232)
------------ ------------ ------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 48,923,609 (8,214,188) 215,971 31,718 3,730,713 (648,321)
------------ ------------ ------------ ------------ ----------- -----------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 49,650,330 39,754,856 2,094,144 1,405,816 5,036,179 11,061,483
Dividends reinvested... 18,492,800 16,671,114 138,417 85,096 1,429,433 994,698
Cost of shares
redeemed.............. (35,948,084) (46,228,281) (2,224,502) (1,643,065) (7,997,355) (5,641,705)
Dividend distributions. (18,492,800) (16,671,114) (138,417) (85,096) (1,429,433) (994,698)
------------ ------------ ------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... 13,702,246 (6,473,425) (130,358) (237,249) (2,961,176) 5,419,778
------------ ------------ ------------ ------------ ----------- -----------
Increase (Decrease) in
Net Assets............. 62,625,855 (14,687,613) 85,613 (205,531) 769,537 4,771,457
Net Assets, Beginning of
Year................... 248,653,182 263,340,795 2,426,872 2,632,403 23,728,420 18,956,963
------------ ------------ ------------ ------------ ----------- -----------
Net Assets, End of Year. $311,279,037 $248,653,182 $ 2,512,485 $ 2,426,872 $24,497,957 $23,728,420
============ ============ ============ ============ =========== ===========
Components of Net
Assets:
Paid-in capital........ $301,973,717 $269,778,671 $ 2,489,145 $ 2,481,086 $24,298,529 $25,830,272
Accumulated
undistributed net
investment income
(loss)................ (701,307) (713,901) (5,498) (2,097) (47,240) (46,616)
Accumulated
undistributed net
realized gain (loss)
on investments........ (7,711,835) (3,522,538) (10,776) (10,847) (553,366) (2,605)
Net unrealized
appreciation
(depreciation) of
investments........... 17,718,462 (16,889,050) 39,614 (41,270) 800,034 (2,052,631)
------------ ------------ ------------ ------------ ----------- -----------
Net Assets, End of Year. $311,279,037 $248,653,182 $ 2,512,485 $ 2,426,872 $24,497,957 $23,728,420
============ ============ ============ ============ =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS* ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
COMPOSITE FUND AGGRESSIVE EQUITY FUND
-------------------------- ------------------------
1995 1994 1995 1994(A)
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 10,961,347 $ 8,928,117 $ 259,615 $ 185,830
Net realized gain
(loss) on investments. 8,223,933 219,212 6,123,997 (230,159)
Unrealized appreciation
(depreciation) of
investments........... 31,059,449 (16,490,980) 6,213,711 1,516,889
------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations......... 50,244,729 (7,343,651) 12,597,323 1,472,560
------------ ------------ ----------- -----------
Capital Share Transac-
tions (Note 4):
Net proceeds from sale
of shares............. 15,416,148 27,671,789 30,668,870 36,684,132
Dividends reinvested... 15,284,744 12,622,992 4,116,301 191,593
Cost of shares
redeemed.............. (21,907,582) (15,500,590) (11,200,912) (11,594,400)
Dividend distributions. (15,284,744) (12,622,992) (4,116,301) (191,593)
------------ ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions............ (6,491,434) 12,171,199 19,467,958 25,089,732
------------ ------------ ----------- -----------
Increase (Decrease) in
Net Assets.............. 43,753,295 4,827,548 32,065,281 26,562,292
Net Assets, Beginning of
Year.................... 232,538,327 227,710,779 26,562,292 --
------------ ------------ ----------- -----------
Net Assets, End of Year.. $276,291,622 $232,538,327 $58,627,573 $26,562,292
============ ============ =========== ===========
Components of Net Assets:
Paid-in capital........ $252,393,645 $243,600,335 $48,865,584 $25,281,325
Accumulated
undistributed net
investment income
(loss)................ 1,177,730 830,808 (6,192) (5,763)
Accumulated
undistributed net
realized gain (loss)
on investments........ 2,832,201 (721,413) 2,037,581 (230,159)
Unrealized appreciation
(depreciation) of
investments........... 19,888,046 (11,171,403) 7,730,600 1,516,889
------------ ------------ ----------- -----------
Net Assets, End of Year.. $276,291,622 $232,538,327 $58,627,573 $26,562,292
============ ============ =========== ===========
</TABLE>
- -------
* Except as noted.
(a) For the period May 2, 1994 (Commencement of Operations) to December 31,
1994.
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
Income from investment operations and distributions per share for a Fund
share outstanding throughout each of ten years ended December 31, 1995, or,
since the Fund's inception date if in existence less than ten years. Other
supplementary data with respect to the Funds is 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 1986 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,
------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ----- ------ ------ ----- ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.19 $1.17 $ 1.17 $ 1.18 $1.23 $1.23 $ 1.22 $1.25 $ 1.18 $1.12
------ ----- ------ ------ ----- ----- ------ ----- ------ -----
Income From Investment
Operations:
Net Investment Income.. 0.07 0.03 0.04 0.04 0.12 0.10 0.12 0.08 0.07 0.06
Net Gains or (Losses)
on Securities
realized and
unrealized............ -- 0.02 -- -- (0.05) -- -- -- -- --
------ ----- ------ ------ ----- ----- ------ ----- ------ -----
Total From Investment
Operations............. 0.07 0.05 0.04 0.04 0.07 0.10 0.12 0.08 0.07 0.06
------ ----- ------ ------ ----- ----- ------ ----- ------ -----
Less: Dividend
Distributions From
Net Investment Income.. (0.08) (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11) -- --
------ ----- ------ ------ ----- ----- ------ ----- ------ -----
Total Distributions..... (0.08) (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11) -- --
------ ----- ------ ------ ----- ----- ------ ----- ------ -----
Net Asset Value, End of
Year................... $ 1.18 $1.19 $ 1.17 $ 1.17 $1.18 $1.23 $ 1.23 $1.22 $ 1.25 $1.18
====== ===== ====== ====== ===== ===== ====== ===== ====== =====
Total Return (%)........ 5.8 4.1 2.9 3.3 4.4 6.8 7.8 5.9 5.7 4.8
Net Assets, End of Year
($ millions)........... 73 81 38 39 43 89 81 6 3 2
Ratio of Expenses to
Average Net Assets (%). 0.25 0.25 0.26 0.40 0.40 0.40 0.40 0.40 0.40 0.40
Ratio of Net Income to
Average Net Assets (%). 5.66 4.15 2.90 3.33 5.73 7.79 8.90 6.85 5.99 5.90
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.
36
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
ALL AMERICA FUND(B)
---------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------
1995 1994(C) 1993 1992 1991 1990 1989 1988 1987 1986
----- ------- ----- ------ ------ ------ ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.61 $ 1.80 $1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $1.82 $ 1.67 $ 1.49
----- ------ ----- ------ ------ ------ ------ ----- ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.03 0.04 0.04 0.04 0.18 0.08 0.28 0.06 0.02 0.01
Net Gains or (Losses)
on Securities
realized and
unrealized............ 0.56 (0.01) 0.18 0.03 0.23 (0.11) 0.14 0.10 0.13 0.17
----- ------ ----- ------ ------ ------ ------ ----- ------ ------
Total From Investment
Operations............. 0.59 0.03 0.22 0.07 0.41 (0.03) 0.42 0.16 0.15 0.18
----- ------ ----- ------ ------ ------ ------ ----- ------ ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.03) (0.04) (0.04) (0.04) (0.05) (0.06) (0.05) (0.09) -- --
From Capital Gains..... (0.04) (0.18) (0.17) (0.17) (0.13) (0.02) (0.25) (0.20) -- --
----- ------ ----- ------ ------ ------ ------ ----- ------ ------
Total Distributions..... (0.07) (0.22) (0.21) (0.21) (0.18) (0.08) (0.30) (0.29) -- --
----- ------ ----- ------ ------ ------ ------ ----- ------ ------
Net Asset Value, End of
Year................... $2.13 $ 1.61 $1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $1.69 $ 1.82 $ 1.67
===== ====== ===== ====== ====== ====== ====== ===== ====== ======
Total Return (%)........ 36.6 (d)3.7 12.0 3.2 22.6 (3.8) 24.1 8.7 8.3 11.3
Net Assets, End of Year
($ millions)........... 533 375 424 398 434 377 437 40 43 29
Ratio of Expenses to
Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.51
Ratio of Net Income to
Average Net Assets (%). 1.57 2.11 1.92 2.02 2.49 3.33 2.54 3.07 1.97 2.03
Portfolio Turnover Rate
(%)(a)................. 33.63 129.80 93.86 129.40 158.35 108.75 117.60 56.94 150.74 141.40
</TABLE>
- -------
(a)Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b)Prior to May 2, 1994, this Fund was known as the Stock Fund and had a
different investment objective.
(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.
37
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND
------------------------------------------------------------------------
YEARS ENDED DECEMBER 31, 1995
------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
----- ----- ------ ------ ----- ------ ----- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.27 $1.41 $ 1.41 $ 1.41 $1.33 $ 1.37 $1.27 $1.40 $ 1.42 $1.28
----- ----- ------ ------ ----- ------ ----- ----- ------ -----
Income From Investment
Operations:
Net Investment Income.. 0.09 0.09 0.09 0.09 0.13 0.09 -- 0.09 0.07 0.06
Net Gains or (Losses)
on Securities
realized and
unrealized............ 0.16 (0.14) 0.09 0.03 0.08 (0.02) 0.16 (0.01) (0.09) 0.08
----- ----- ------ ------ ----- ------ ----- ----- ------ -----
Total From Investment
Operations............. 0.25 (0.05) 0.18 0.12 0.21 0.07 0.16 0.08 (0.02) 0.14
----- ----- ------ ------ ----- ------ ----- ----- ------ -----
Less Dividend
Distributions:
From Net Investment
Income................ (0.09) (0.09) (0.09) (0.09) (0.11) (0.11) (0.06) (0.21) -- --
From Capital Gains..... -- -- (0.09) (0.03) (0.02) -- -- -- -- --
----- ----- ------ ------ ----- ------ ----- ----- ------ -----
Total Distributions..... (0.09) (0.09) (0.18) (0.12) (0.13) (0.11) (0.06) (0.21) -- --
----- ----- ------ ------ ----- ------ ----- ----- ------ -----
Net Asset Value, End of
Year................... $1.43 $1.27 $ 1.41 $ 1.41 $1.41 $ 1.33 $1.37 $1.27 $ 1.40 $1.42
===== ===== ====== ====== ===== ====== ===== ===== ====== =====
Total Return (%)........ 19.4 (3.2) 13.1 8.6 14.0 3.5 11.1 6.2 (1.9) 10.5
Net Assets, End of Year
($ millions)........... 311 249 263 233 187 163 109 5 4 3
Ratio of Expenses to
Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.51
Ratio of Net Income to
Average Net Assets (%). 6.64 6.32 6.30 6.93 7.59 8.57 8.55 8.25 7.97 8.26
Portfolio Turnover Rate
(%)(a)................. 41.93 51.14 103.16 112.40 95.00 129.02 47.70 75.61 47.41 63.36
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
38
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
COMPOSITE FUND
---------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ----- ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $1.46 $1.60 $ 1.51 $ 1.35
------ ------ ------ ------ ------ ------ ----- ----- ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.08 0.05 0.05 0.06 0.19 0.14 0.11 0.08 0.05 0.03
Net Gains or (Losses)
on Securities
realized and
unrealized............ 0.27 (0.10) 0.22 0.03 0.09 (0.09) 0.17 0.05 0.04 0.13
------ ------ ------ ------ ------ ------ ----- ----- ------ ------
Total From Investment
Operations............. 0.35 (0.05) 0.27 0.09 0.28 0.05 0.28 0.13 0.09 0.16
------ ------ ------ ------ ------ ------ ----- ----- ------ ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.08) (0.07) (0.05) (0.06) (0.07) (0.10) (0.08) (0.17) -- --
From Capital Gains..... (0.03) (0.02) (0.10) (0.05) (0.13) (0.05) (0.03) (0.10) -- --
------ ------ ------ ------ ------ ------ ----- ----- ------ ------
Total Distributions..... (0.11) (0.09) (0.15) (0.11) (0.20) (0.15) (0.11) (0.27) -- --
------ ------ ------ ------ ------ ------ ----- ----- ------ ------
Net Asset Value, End of
Year................... $ 1.81 $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $1.63 $1.46 $ 1.60 $ 1.51
====== ====== ====== ====== ====== ====== ===== ===== ====== ======
Total Return (%)........ 21.9 (3.0) 16.9 5.9 16.4 1.5 17.2 7.9 5.2 11.4
Net Assets, End of Year
($ millions)........... 276 233 228 138 111 79 67 51 45 30
Ratio of Expenses to
Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.51
Ratio of Net Income to
Average Net Assets (%). 4.30 3.88 3.48 4.01 4.75 6.20 5.48 5.94 5.10 5.35
Portfolio Turnover Rate
(%)(a)................. 76.84 113.86 100.76 107.69 134.91 105.06 87.32 50.88 124.04 98.74
</TABLE>
- -------
(a) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
39
<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
--------------------- --------------------- --------------------- ---------------
YEARS ENDED YEARS ENDED YEARS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
--------------------- --------------------- --------------------- ---------------
1995 1994 1993(b) 1995 1994 1993(b) 1995 1994 1993(b) 1995 1994(c)
----- ----- ------- ----- ----- ------- ----- ----- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.02 $1.04 $1.00 $1.00 $1.02 $ 1.00 $0.91 $0.99 $ 1.00 $ 1.05 $ 1.00
----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.02 0.03 0.02 0.06 0.04 0.02 0.06 0.03 0.04 0.01 0.01
Net Gains or (Losses)
on Securities realized
and unrealized........ 0.36 (0.01) 0.04 0.02 (0.02) 0.02 0.09 (0.07) 0.04 0.39 0.05
----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------
Total From Investment
Operations............. 0.38 0.02 0.06 0.08 0.02 0.04 0.15 (0.04) 0.08 0.40 0.06
----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------
Less Dividend
Distributions:
From Net Investment
Income................. (0.03) (0.03) (0.02) (0.06) (0.04) (0.02) (0.06) (0.04) (0.04) (0.01) (0.01)
From Capital Gains..... (0.02) (0.01) -- -- -- -- -- -- (0.05) (0.09) --
----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------
Total Distributions..... (0.05) (0.04) (0.02) (0.06) (0.04) (0.02) (0.06) (0.04) (0.09) (0.10) (0.01)
----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------
Net Asset Value, End of
Year................... $1.35 $1.02 $1.04 $1.02 $1.00 $ 1.02 $1.00 $0.91 $ 0.99 $ 1.35 $ 1.05
===== ===== ===== ===== ===== ====== ===== ===== ====== ====== ======
Total Return (%)........ 36.6 1.5 6.2 7.7 1.4 4.6 16.3 (3.7) 7.3 38.2 6.0
Net Assets, End of Year
($ millions)........... 43 26 27 3 2 3 24 24 19 59 27
Ratio of Expenses to
Average Net
Assets (%)............. 0.13 0.13 0.11 0.50 0.48 0.45 0.50 0.50 0.45 0.85 0.56
Ratio of Net Income to
Average Net
Assets (%)............. 2.50 2.67 2.43 4.65 3.51 3.09 5.73 4.71 4.13 0.65 0.7
Portfolio Turnover Rate
(%)(a)................. 13.99 6.59 1.44 16.47 0.00 122.37 73.72 7.52 162.03 116.52 60.86
</TABLE>
- -------
(a)Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(b)Commenced operations February 5, 1993; total return has not been annualized.
(c)Commenced operations May 2, 1994; total return has not been annualized.
40
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
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, 1995, the results of its operations for the year then
ended and the changes in net assets for the years ended December 31, 1995 and
1994 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 (formerly 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 commenced operations. On May 2, 1994 the Mutual of
America Aggressive Equity Fund commenced operations and the Stock Fund was
renamed the All America Fund with different investment objectives.
The Investment Company currently sells shares of its eight series of 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, 1995, Mutual of America Life owned 99.3% and American Life owned
0.7% 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.
41
<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, 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 such 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.
Various funds of the Investment Company placed portfolio transactions
through a broker affiliated with the Adviser. The aggregate commissions paid
to this broker for the year was $79,289.
3. PURCHASES AND SALES
The cost of investment purchases and proceeds from sales of investments,
excluding government, short-term securities and options for the year ended
December 31, 1995 are as follows:
<TABLE>
<CAPTION>
ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Cost of investment purchases............. $174,350,454 $10,402,810 $140,464,290
============ =========== ============
Proceeds from sales of investments....... $148,094,073 $ 4,313,265 $111,242,732
============ =========== ============
</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... $1,162,872 $17,807,033 $198,927,109 $60,876,652
========== =========== ============ ===========
Proceeds from sales of
investments................... $ 349,602 $17,085,642 $176,081,644 $41,694,766
========== =========== ============ ===========
</TABLE>
The cost of short-term security purchases for the Money Market Fund for the
year was $1,357,256,572. Net proceeds from sales and redemptions for the year
was $1,370,239,866.
42
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At December 31, 1995, net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized
appreciation.............. $ -- $134,076,611 $ 9,423,114 $ 18,826,796
Aggregate gross unrealized
depreciation.............. -- 9,093,473 838,684 1,108,334
----------- ------------ ----------- ------------
Net unrealized appreciation
(depreciation)............ $ -- $124,983,138 $ 8,584,430 $ 17,718,462
=========== ============ =========== ============
Aggregate cost of
investments for Federal
income tax purposes....... $73,372,512 $407,562,323 $32,236,473 $285,040,752
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
---------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Aggregate gross unrealized
appreciation.................. $ 39,614 $ 817,800 $ 23,287,967 $ 9,431,050
Aggregate gross unrealized
depreciation.................. -- 17,766 3,399,921 1,700,450
---------- ----------- ------------ -----------
Net unrealized appreciation
(depreciation)................ $ 39,614 $ 800,034 $ 19,888,046 $ 7,730,600
========== =========== ============ ===========
Aggregate cost of investments
for Federal income tax
purposes...................... $2,391,638 $23,379,017 $253,703,076 $54,076,486
========== =========== ============ ===========
</TABLE>
4. CAPITAL SHARE ACTIVITY
At December 31, 1995 there were 3 billion shares of $.01 par value capital
stock authorized for the Investment Company. The shares are allocated into the
eight series of funds as follows:
<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............................................. 250,000,000
Short-Term Bond Fund.................................. 50,000,000
Mid-Term Bond Fund.................................... 75,000,000
Composite Fund........................................ 200,000,000
Aggressive Equity Fund................................ 500,000,000
-------------
Sub Total........................................... 1,750,000,000
Shares to be allocated at the discretion of the Board
of Directors......................................... 1,250,000,000
-------------
Total............................................... 3,000,000,000
=============
</TABLE>
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1995
--------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Shares sold.................. 75,724,884 42,681,882 22,823,514 35,264,481
Shares issued to shareholders
as reinvestment of
dividends................... 4,066,652 7,980,558 1,066,201 12,944,402
---------- ---------- ---------- ----------
Total........................ 79,791,536 50,662,440 23,889,715 48,208,883
Shares redeemed.............. 85,788,635 33,103,404 17,637,595 25,740,959
---------- ---------- ---------- ----------
Net increase (decrease)...... (5,997,099) 17,559,036 6,252,120 22,467,924
========== ========== ========== ==========
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1995
--------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Shares sold.................. 2,015,656 5,042,701 8,968,895 23,932,340
Shares issued to shareholders
as reinvestment of
dividends................... 135,836 1,429,171 8,460,475 3,045,773
---------- ---------- ---------- ----------
Total........................ 2,151,492 6,471,872 17,429,370 26,978,113
Shares redeemed.............. 2,112,272 7,961,340 12,516,767 8,844,832
---------- ---------- ---------- ----------
Net increase (decrease)...... 39,220 (1,489,468) 4,912,603 18,133,281
========== ========== ========== ==========
</TABLE>
43
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<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 YEAR ENDED DECEMBER 31, 1994
-----------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND(A)
------------ ----------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold............... 1,473,435 11,788,299 16,926,834 39,569,672
Shares issued to share-
holders 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>
- -------
(a) Commenced Operations May 2, 1994
5. DIVIDENDS
On December 29, 1995 dividend distributions were declared for each of the
Funds from net realized gains on investment transactions and net investment
income during 1995. Additionally, on September 15, 1995 the remaining required
dividends relating to the 1994 Internal Revenue Sec. 885(A) election were
declared for the Money Market Fund, which were reinvested resulting in an
increase in the aggregate shares outstanding. Dividends declared on September
15, 1995 were paid on September 15, 1995 to shareholders of record on
September 14, 1995, and dividends declared on December 29, 1995 were paid on
December 29, 1995 to shareholders of record on December 28, 1995. All dividend
distributions are immediately reinvested in additional shares of each
respective Fund.
<TABLE>
<CAPTION>
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Ordinary income.............. $4,789,411 $ 7,113,588 $ 744,478 $18,492,800
Capital gains................ -- 9,852,528 690,319 --
---------- ----------- ----------- -----------
Total dividends.............. $4,789,411 $16,966,116 $ 1,434,797 $18,492,800
========== =========== =========== ===========
Dividend amounts per share... $ .082 $ .070 $ .047 $ .090
========== =========== =========== ===========
Increase in number of shares
per fund.................... 4,066,652 17,980,558 (1,066,201) 12,944,402
========== =========== =========== ===========
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Ordinary income.............. $ 138,417 $ 1,429,433 $10,614,425 $ 260,044
Capital gains................ -- -- 4,670,319 3,856,257
---------- ----------- ----------- -----------
Total dividends.............. $ 138,417 $ 1,429,433 $15,284,744 $ 4,116,301
========== =========== =========== ===========
Dividend amounts per share... $ .061 $ .062 $ .106 $ .103
========== =========== =========== ===========
Increase in number of shares
per fund.................... 135,836 1,429,171 8,460,475 3,045,773
========== =========== =========== ===========
</TABLE>
44
<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, 1995, 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 four 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, 1995 and
the related statements of operations for the year then ended and the statement
of changes in net assets and the financial highlights for the year ended
December 31, 1995 and 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 six 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 confirmations of securities
owned as of December 31, 1995 by correspondence with the custodian. An audit
also included 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 the Composite Funds of Mutual of America
Investment Corporation as of December 31, 1995, 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 four 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, 1995, the results of its operations
for the year then ended and the changes in its net assets and its financial
highlights for the year ended December 31, 1995 and 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 20, 1996
45
