<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
We are pleased to report that performance of the funds offered by Mutual of
America Investment Corporation for the year ended December 31, 1997 was,
overall, quite positive.
The U.S. economy grew briskly in 1997 fueled by the good profit growth which
is anticipated to slow in 1998. The markets responded with another good year
buoyed by the lowest unemployment rate in 25 years coupled with low inflation.
Strong Corporate earnings and cash flows into the equity market have propelled
the S&P 500 up 33.4% for the year. The Dow Jones Industrial Average rose
nearly 25% for the same period. In the debt markets, rates have responded to
the market pressures with the long treasury average yield at its lowest since
1993.
For 1998 we expect some disinflation with prices for goods coming down. The
market place does not feel any Federal Reserve action will be needed to raise
rates and indeed there may be some inclination to lower rates.
TOTAL RETURNS--TWELVE MONTHS TO DECEMBER 31, 1997
<TABLE>
<S> <C>
Money Market Fund................................................... + 5.5%
All American Fund................................................... +26.8%
Equity Index Fund................................................... +33.1%
Bond Fund........................................................... +10.4%
Short-Term Bond Fund................................................ + 6.0%
Mid-Term Bond Fund.................................................. + 7.3%
Composite Fund...................................................... +17.7%
Aggressive Equity Fund.............................................. +21.2%
</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 The American Life Insurance
Company of New York, respectively.
On the pages which immediately follow are brief presentations and graphs for
each fund (except the Money Market Fund) which illustrate each fund's
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 appropriate indexes.
The portfolios of each fund and 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>
MONEY MARKET FUND
The Money Market Fund returned 5.5% for 1997, comparing favorably to the
Salomon Brothers three month Treasury Bill Index return of 5.2%. The current
seven day annualized effective yield as of 2/17/98 is 5.74%. As is the case
with all past performance reportings, this yield is not necessarily indicative
of future actual yields.
ALL AMERICA FUND
The investment objective of approximately 60% of this fund's assets is to
provide investment results that, to the extent practical, correspond to the
performance of the Standard & Poor's 500 Index. The investment objective of
the remaining assets is to achieve a high level of return by means of a
diversified portfolio. These assets are actively managed by three sub-advisors
and by Mutual of America Capital Management Corporation.
For the year ended December 31, 1997, the fund's total return of 26.8% was
below that of the S&P 500 Index which returned 33.4%. The performance of the
fund, in relation to the index was hindered by the overall laggard performance
experienced by smaller capitalized companies which comprised approximately
half of the actively managed assets of this fund.
LINE GRAPH
<TABLE>
<CAPTION>
All America Fund S & P 500 Index
---------------- ---------------
<S> <C> <C>
12/87 10,000 10,000
12/88 10,991 11,650
12/89 13,843 15,313
12/90 13,635 14,823
12/91 16,964 19,350
12/92 17,502 20,837
12/93 19,626 22,919
5/94 19,231 22,454
12/94 19,880 23,223
12/95 27,152 31,950
12/96 32,779 39,298
12/97 41,562 52,408
</TABLE>
<TABLE>
<CAPTION>
All America Fund S & P 500 Index
---------------- ---------------
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $12,679 26.8% 26.8% 1 Year $13,336 33.4% 33.4%
Since 5/2/94 $21,612 116.1% 23.4% Since 5/2/94 $23,341 133.4% 26.0%
5 Years $23,747 137.5% 18.9% 5 Years $25,151 151.5% 20.3%
10 Years $41,562 315.6% 15.3% 10 Years $52,408 424.1% 18.0%
</TABLE>
* Prior to May 2, 1994, the Fund was known as the Stock Fund, had a different
investment objective and did not have any subadvisers. Performance data
which includes periods prior to 5/2/94, reflect performance results achieved
in accordance with the previous objective of the Stock Fund.
The line representing the performance return of the All America Fund
includes expenses (such as transaction costs and management fees) that reduce
returns, while the performance return line of the index does not.
2
<PAGE>
EQUITY INDEX FUND
For the year ended December 31, 1997, the Equity Index Fund returned 33.1%,
which consistent with the objective of this fund, replicated the S&P 500
Index. In recognition of the fund's performance, at year-end, the Morningstar
fund rating service increased the fund's rating from four to five stars, its
highest rating. The S&P 500 Index, enjoyed another year of broad gains in all
major industry groups and sectors.
Although investors experienced greater volatility during the year due to
uncertainty in the economic climate, the fund had a positive return in each of
the four quarters of 1997. The major contributors to performance in 1997 were
financial stocks, communications companies and healthcare stocks. The sectors
which lagged the overall index were basic industry and technology. In a
continuation of a prevalent trend, large capitalization companies generally
outperformed smaller capitalization companies.
<TABLE>
<CAPTION>
Equity Index Fund S&P 500 Index
----------------- -------------
<S> <C> <C>
2/93 10,000 10,000
12/93 10,619 10,700
12/94 10,781 10,839
12/95 14,729 14,904
12/96 18,079 18,332
12/97 24,063 24,447
</TABLE>
Equity Index Fund S & P 500
----------------- ---------
<TABLE>
<CAPTION>
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $13,310 33.1% 33.1% 1 Year $13,336 33.4% 33.4%
Since Since
Inception $24,063 140.6% 19.6% Inception $24,447 144.5% 20.0%
</TABLE>
The line representing the performance return of the Equity Index Fund
includes expenses (such as transaction costs and management fees) that reduce
returns, while the performance return line of the index does not.
3
<PAGE>
BOND FUND
The Bond Fund seeks a high level of return consistent with preservation of
capital through investment in publicly traded debt securities. The fund's
return was enhanced by a focus on corporate and U.S. Agency issues yielding
more than comparable segments of the Lehman Brothers Government/Corporate Bond
Index. For 1997, the fund returned 10.4% versus the Index return of 9.8%.
LINE GRAPH
<TABLE>
<CAPTION>
Bond Fund Lehman Brothers Gov't/Corp. Bond Index
--------- --------------------------------------
<S> <C> <C>
12/87 10,000 10,000
12/88 10,610 10,758
12/89 11,960 12,290
12/90 12,561 13,307
12/91 14,533 15,454
12/92 15,781 16,627
12/93 17,873 18,461
12/94 17,314 17,816
12/95 20,679 21,243
12/96 21,400 21,859
12/97 23,631 23,993
</TABLE>
<TABLE>
<CAPTION>
Bond Fund Lehman Brothers Gov't/Corp. Bond Index
--------- --------------------------------------
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $11,042 10.4% 10.4% 1 Year $10,976 9.8% 9.8%
5 Years $14,974 49.7% 8.4% 5 Years $14,430 44.3% 7.6%
10 Years $23,631 136.3% 9.0% 10 Years $23,993 139.9% 9.1%
</TABLE>
The line representing the performance return of the Bond Fund includes
expenses (such as transaction costs and management fees) that reduce returns,
while the performance return line of the index does not.
4
<PAGE>
SHORT-TERM BOND FUND
The Short-Term Bond Fund maintains an average maturity of between one and
three years. Its objectives are to achieve a high total return within this
maturity constraint and to maintain principle value. For 1997, the Fund
returned 6.0% versus the Salomon Brothers 1-3 year Index return of 6.7%.
LINE GRAPH
<TABLE>
<CAPTION>
Short Term Bond Fund Salomon Brothers 1-3 Year Bond Index
-------------------- ------------------------------------
<S> <C> <C>
2/93 10,000 10,000
12/93 10,449 10,448
12/94 10,600 10,511
12/95 11,421 11,655
12/96 11,985 12,257
12/97 12,705 13,074
</TABLE>
<TABLE>
<CAPTION>
Short Term Bond Fund* Salomon Brothers 1-3 Year Bond Index
-------------------- ------------------------------------
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $10,601 6.0% 6.0% 1 Year $10,667 6.7% 6.7%
Since Since
Inception $12,705 27.0% 5.0% Inception $13,074 30.7% 5.6%
</TABLE>
The line representing the performance return of the Short-Term Bond Fund
includes expenses (such as transaction costs and management fees) that reduce
returns, while the performance return line of the index does not.
5
<PAGE>
MID-TERM BOND FUND
The average maturity of this fund will be between three and seven years. The
fund attempts to maintain a high average quality relative to its index through
the use of a high percentage of U.S. Government and Agency backed securities.
For 1997, the fund returned 7.3% versus 8.3% for the Salomon Brothers 3-7 year
Index.
LINE GRAPH
<TABLE>
<CAPTION>
Mid-Term Bond Fund Salomon Brothers 3-7 Year Bond Index
------------------ ------------------------------------
<S> <C> <C>
2/93 10,000 10,000
12/93 10,727 10,722
12/94 10,355 10,436
12/95 12,042 12,197
12/96 12,510 12,669
12/97 13,429 13,717
</TABLE>
Mid-Term Bond Fund Salomon Brothers 3-7 Year Bond Index
------------------ ------------------------------------
<TABLE>
<CAPTION>
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $10,734 7.3% 7.3% 1 Year $10,827 8.3% 8.3%
Since Since
Inception $13,429 34.3% 6.2% Inception $13,717 37.2% 6.7%
</TABLE>
The line representing the performance return of the Mid-Term Bond Fund
includes expenses (such as transaction costs and management fees) that reduce
returns, while the performance return line of the index does not.
6
<PAGE>
COMPOSITE FUND
For the year ended December 31, 1997, the Composite Fund returned 17.7%. A
hypothetical blended index, consisting of 50% stocks (pegged to the S&P), 40%
bonds (pegged to the Lehman Brothers Government/Corporate Bond Index) and 10%
cash equivalents (pegged to the Salomon Brothers 3-month T-bill Index) would
have returned 20.8%. The fixed-income portions of the fund outperformed their
respective indexes, while the equity portion underperformed the S&P index. The
fund's equity portfolio had benefited early in the year from strength in
energy-related stocks and healthcare investments. The fund, however, was
negatively impacted in the last quarter due to poorly performing oil service
and technology stocks.
LINE GRAPH
<TABLE>
<CAPTION>
Composite Lehman Brothers Gov't/Corp Bond Index S&P 500 Index Salomon Brothers 3 month Treasury Bill Index
--------- ------------------------------------- ------------- --------------------------------------------
<S> <C> <C> <C> <C>
12/87 10,000 10,000 10,000 10,000
12/88 10,908 10,758 11,650 10,676
12/89 12,970 12,290 15,313 11,597
12/90 13,358 13,307 14,823 12,516
12/91 15,781 15,454 19,350 13,236
12/92 16,718 16,627 20,837 13,716
12/93 19,589 18,461 22,919 14,139
12/94 18,988 17,816 23,223 14,739
12/95 23,146 21,243 31,950 15,587
12/96 25,899 21,859 39,298 16,406
12/97 30,485 23,993 52,408 17,267
</TABLE>
<TABLE>
<CAPTION>
COMPOSITE FUND S & P 500 Index
-------------- ---------------
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1 Year $11,770 17.7% 17.7% 1 Year $13,336 33.4% 33.4%
5 Years $18,234 82.3% 12.8% 5 Years $25,151 151.5% 20.3%
10 Years $30,485 204.8% 11.8% 10 Years $52,408 424.1% 18.0%
<CAPTION>
Lehman Brothers Gov't/Corp. Bond Index Salomon Bros. 3 Month T-Bill Index
-------------------------------------- ----------------------------------
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <S> <C> <C> <C>
1 Year $10,976 9.8% 9.8% 1 Year $10,525 5.2% 5.2%
5 Years $14,430 44.3% 7.6% 5 Years $12,589 25.9% 4.7%
10 Years $23,993 139.9% 9.1% 10 Years $17,267 72.7% 5.6%
</TABLE>
The line representing the performance return of the Composite Fund includes
expenses (such as transaction costs and management fees) that reduce returns,
while the performance return line of the index does not.
7
<PAGE>
AGGRESSIVE EQUITY FUND
The Aggressive Equity Fund has approximately 50% of its assets in value
stocks and 50% in growth stocks. Overall, the Fund seeks to produce an above
average long-term return, recognizing that at times, value will outperform
growth and vice-versa. Overall results for 1997 showed a total performance
gain of 21.2% compared to a 22.4% gain in the Russell 2000 Index. The gain in
the Value segment of the Fund was 31.5% compared to a gain of 31.8% in the
Russell 2000 Index. The gain in the Growth segment of the Fund was 10.7%,
compared to a gain of 13.0% in the Russell 2000 Growth Index. Positive
contributors to this year's performance included the energy, capital goods and
technology sectors.
LINE GRAPH
<TABLE>
<CAPTION>
Aggressive Equity Russel 2000
----------------- -----------
<S> <C> <C>
5/94 10,000 10,000
12/94 10,597 9,845
12/95 14,640 12,645
12/96 18,608 14,730
12/97 22,556 18,024
</TABLE>
Aggresive Equity Fund Russel 2000 Index
--------------------- -----------------
<TABLE>
<CAPTION>
Total Return Total Return
Period Growth ------------ Period Growth ------------
Ended of Average Ended of Average
12/31/97 $10,000 Cumulative Annual 12/31/97 $10,000 Cumulative Annual
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $12,121 21.2% 21.2% 1 Year $12,236 22.4% 22.4%
Since Since
Inception $22,556 125.6% 24.8% Inception $18,024 80.2% 17.4%
</TABLE>
The line representing the performance return of the Aggressive Equity Fund
includes expenses (such as transaction costs and management fees) that reduce
returns, while the performance return line of the index does not.
8
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATING* RATE MATURITY AMOUNT COST
------- -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.1%)
U.S. Treasury Bill........... 5.20% 02/26/98 $ 40,000 $ 39,676
-----------
Commercial Paper (99.9%)
Ameritech Capital Funding
Corp........................ A1+/P1 5.54 01/12/98 2,509,000 2,504,711
Archer Daniels Midland Co.... A1+/P1 6.20 01/06/98 1,000,000 999,139
Associates Corp.............. A1+/P1 5.62 01/09/98 2,000,000 1,997,482
Baltimore Gas & Electric Co.. A1/P1 5.75 01/20/98 4,000,000 3,987,816
Banc One Funding Corp........ A1/P1 5.79 02/09/98 1,754,000 1,742,961
Bell Atlantic Financial
Services, Inc............... A1/P1 5.80 01/05/98 4,000,000 3,997,411
Bemis Co..................... A1/P1 5.60 01/05/98 4,000,000 3,997,488
Cargill, Inc................. A1+/P1 5.60 01/08/98 3,495,000 3,491,165
Daimler Benz North Amer.
Corp........................ A1/P1 5.68 01/16/98 764,000 762,180
Daimler Benz North Amer.
Corp........................ A1/P1 5.69 01/16/98 1,845,000 1,840,597
Disney (Walt) Enterprises
Inc. ....................... A1/P1 6.00 01/13/98 1,000,000 997,997
Emerson Electric Co.......... A1+/P1 5.70 01/15/98 770,000 768,286
Ford Motor Credit Co......... A1/P1 5.82 01/09/98 2,000,000 1,997,404
Gannett, Inc. ............... A1/P1 5.55 01/08/98 4,000,000 3,995,646
General Electric Capital
Corp........................ A1+/P1 5.63 01/13/98 4,000,000 3,992,432
General Mills, Inc. ......... A1/P1 5.65 01/09/98 4,000,000 3,994,944
GTE Funding Inc.............. A1/P1 6.00 01/08/98 298,000 297,651
GTE Funding Inc.............. A1/P1 5.98 01/22/98 1,947,000 1,940,175
GTE Funding Inc.............. A1/P1 5.91 01/22/98 1,685,000 1,679,168
IBM Credit Corp.............. A1/P1 5.64 01/09/98 1,095,000 1,093,617
Interstate Power Corp. ...... A1/P1 5.83 01/23/98 1,283,000 1,278,414
Interstate Power Corp. ...... A1/P1 5.77 01/26/98 418,000 416,319
Koch Industries Inc.......... A1+/P1 5.74 01/06/98 3,000,000 2,997,598
Koch Industries Inc.......... A1+/P1 6.65 01/02/98 1,008,000 1,007,814
Merrill Lynch & Co........... A1+/P1 5.62 01/02/98 2,250,000 2,249,645
Petrofina Delaware Inc. ..... A1/P1 5.82 01/12/98 4,000,000 3,992,862
SBC Communications, Inc...... A1/P1 5.61 01/20/98 2,210,000 2,203,414
Sony Capital Corp............ A1/P1 5.85 01/27/98 1,100,000 1,095,330
Toyota Credit Puerto Rico
Corp........................ A1+/P1 5.75 01/29/98 505,000 502,731
Toyota Credit Puerto Rico
Corp........................ A1+/P1 5.78 01/29/98 1,755,000 1,747,081
Wisconsin Electric Fuel...... A1+/P1 5.75 01/27/98 517,000 514,843
Xerox Credit Corp............ A1/P1 5.55 01/06/98 3,380,000 3,377,373
-----------
67,461,694
-----------
TOTAL SHORT-TERM DEBT
SECURITIES:
(Cost: $67,501,370) 100%..... $67,501,370
===========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investor
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, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
INDEXED ASSETS:
COMMON STOCKS
3Com Corp................................................. 19,189 $ 670,415
Abbott Laboratories....................................... 42,424 2,781,423
Adobe Systems, Inc. ...................................... 4,194 173,002
Advanced Micro Devices, Inc. ............................. 8,110 145,473
Aeroquip-Vickers, Inc. ................................... 1,618 79,383
Aetna, Inc. .............................................. 8,242 581,576
Ahmanson (H.F.) & Co. .................................... 5,237 350,551
Air Products & Chemicals Corp. ........................... 6,079 499,997
Airtouch Communications, Inc. ............................ 27,998 1,163,666
Alberto Culver Co. Cl B................................... 3,229 103,529
Albertson's, Inc.......................................... 13,622 645,342
Alcan Aluminum Ltd. ...................................... 12,602 348,130
Allegheny Teledyne Inc ................................... 9,666 250,107
Allergan, Inc. ........................................... 3,731 125,221
AlliedSignal, Inc. ....................................... 31,290 1,218,354
Allstate Corp. ........................................... 23,784 2,161,371
Alltel Corp. ............................................. 10,280 422,122
Aluminum Co. of America................................... 9,566 673,207
Alza Corp. ............................................... 4,893 155,658
Amerada Hess Corp. ....................................... 5,279 289,685
American Electric Power Co. .............................. 10,517 542,940
American Express Co. ..................................... 25,779 2,300,775
American General Corp. ................................... 13,510 730,384
American Greetings Corp. Cl A............................. 4,330 169,411
American Home Products Corp. ............................. 36,035 2,756,677
American Int'l. Group, Inc. .............................. 38,910 4,231,462
American Stores Co. ...................................... 15,144 311,398
Ameritech Corp. .......................................... 30,353 2,443,416
Amgen, Inc. .............................................. 14,599 790,170
Amoco Corp. .............................................. 27,008 2,299,056
Amp, Inc. ................................................ 12,204 512,568
AMR Corp. ................................................ 5,057 649,824
Anadarko Petroleum Corp. ................................. 3,434 208,400
Andrew Corp. ............................................. 5,191 124,584
Anheuser Busch Cos., Inc. ................................ 27,176 1,195,744
Aon Corp. ................................................ 9,302 545,329
Apache Corp. ............................................. 5,198 182,254
Apple Computer, Inc. ..................................... 7,327 96,166
Applied Materials, Inc. .................................. 20,222 609,187
Archer Daniels Midland Co. ............................... 30,925 670,685
Armco, Inc. .............................................. 6,160 30,415
Armstrong World Inds., Inc. .............................. 2,345 175,288
Asarco, Inc. ............................................. 2,424 54,388
Ashland, Inc. ............................................ 4,297 230,695
AT&T Corp. ............................................... 90,093 5,518,196
Atlantic Richfield Co. ................................... 17,791 1,425,503
Autodesk, Inc. ........................................... 2,757 102,009
Automatic Data Processing, Inc ........................... 16,224 995,748
AutoZone, Inc. ........................................... 8,690 252,010
Avery Dennison Corp. ..................................... 5,934 265,546
Avon Products, Inc. ...................................... 7,322 449,387
Baker Hughes, Inc. ....................................... 9,359 408,286
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Ball Corp. ............................................... 1,736 $ 61,302
Baltimore Gas & Electric Co. ............................. 8,498 289,463
Banc One Corp. ........................................... 33,540 1,821,641
Bank of New York, Inc. ................................... 20,892 1,207,818
BankAmerica Corp. ........................................ 38,463 2,807,799
BankBoston Corp. ......................................... 8,058 756,948
Bankers Trust New York Corp. ............................. 5,433 610,872
Bard (C.R.), Inc. ........................................ 3,304 103,456
Barnett Banks, Inc. ...................................... 10,698 768,918
Barrick Gold Corp. ....................................... 20,675 385,071
Battle Mountain Gold Co. ................................. 13,220 77,667
Bausch & Lomb, Inc. ...................................... 3,189 126,364
Baxter International, Inc. ............................... 15,534 783,496
Bay Networks, Inc. ....................................... 12,143 310,405
BB&T Corp. ............................................... 7,600 486,875
Becton Dickinson & Co. ................................... 6,776 338,800
Bell Atlantic Corp. ...................................... 43,078 3,920,098
BellSouth Corp. .......................................... 55,002 3,097,300
Bemis Co. ................................................ 3,050 134,390
Beneficial Corp. ......................................... 3,060 254,362
Bethlehem Steel Corp. .................................... 6,480 55,890
Biomet, Inc. ............................................. 6,402 164,051
Black & Decker Corp. ..................................... 5,433 212,226
Block (H & R), Inc. ...................................... 5,989 268,382
Boeing Co. ............................................... 55,445 2,713,339
Boise Cascade Corp. ...................................... 3,200 96,800
Boston Scientific Corp. .................................. 10,795 495,220
Briggs & Stratton Corp. .................................. 1,458 70,804
Bristol-Myers Squibb Co. ................................. 55,148 5,218,379
Brown-Forman Corp. Cl B................................... 3,971 219,397
Browning Ferris Inds., Inc. .............................. 10,972 405,964
Brunswick Corp. .......................................... 5,715 173,235
Burlington Northern Santa Fe.............................. 8,663 805,117
Burlington Resources, Inc. ............................... 12,814 574,227
Cabletron Systems, Inc. .................................. 9,074 136,110
Caliber System, Inc ...................................... 2,241 109,108
Campbell Soup Co. ........................................ 25,377 1,475,038
Cardinal Health, Inc. .................................... 6,065 455,633
Carolina Power & Light Co. ............................... 8,339 353,886
Case Corp. ............................................... 4,289 259,216
Caterpillar, Inc. ........................................ 20,649 1,002,767
CBS Corp. ................................................ 39,048 1,149,475
Cendant Corporation....................................... 43,908 1,509,327
Centex Corp. ............................................. 1,670 105,105
Central & South West Corp. ............................... 11,772 318,579
Ceridian Corp. ........................................... 4,345 199,055
Champion International Corp. ............................. 5,520 250,125
Charles Schwab Corp. ..................................... 14,731 617,781
Charming Shoppes, Inc. ................................... 6,085 28,523
Chase Manhattan Corp. .................................... 23,376 2,559,672
Chevron Corp. ............................................ 36,426 2,804,802
Chrysler Corp. ........................................... 36,745 1,292,964
Chubb Corp. .............................................. 9,438 713,748
CIGNA Corp. .............................................. 4,108 710,940
</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, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Cincinnati Financial Corp ................................ 3,048 $ 429,006
Cincinnati Milacron, Inc. ................................ 2,293 59,474
Cinergy Corp. ............................................ 8,746 335,081
Circuit City Group, Inc. ................................. 5,666 201,497
Cisco Systems, Inc. ...................................... 57,756 3,219,897
Citicorp ................................................. 25,338 3,203,673
Clear Channel Communications.............................. 5,440 432,140
Clorox Co. ............................................... 5,732 453,186
Coastal Corp. ............................................ 5,883 364,378
Coca-Cola Co. ............................................ 137,178 9,139,484
Cognizant Corp. .......................................... 8,995 400,839
Colgate-Palmolive Co. .................................... 16,408 1,205,988
Columbia Energy Group..................................... 3,187 250,378
Columbia HCA Healthcare Corp. ............................ 35,917 1,064,041
Comcast Corp. Cl A........................................ 19,357 610,955
Comerica, Inc. ........................................... 5,827 525,886
Compaq Computer Corp. .................................... 41,989 2,369,754
Computer Associates Intl., Inc ........................... 30,323 1,603,328
Computer Sciences Corp. .................................. 4,307 359,634
Conagra, Inc. ............................................ 27,084 888,694
Conseco, Inc. ............................................ 10,451 474,867
Consolidated Edison Inc. ................................. 13,035 534,435
Consolidated Natural Gas Co. ............................. 5,296 320,408
Cooper Industries......................................... 6,712 328,888
Cooper Tire & Rubber Co. ................................. 4,531 110,443
Coors (Adolph) Co. Cl B................................... 2,132 70,889
CPC International......................................... 7978 861,624
CoreStates Financial Corp. ............................... 10,972 878,445
Corning, Inc. ............................................ 12,822 476,016
Costco Co ................................................ 11,788 526,039
Countrywide Credit Industries............................. 6,166 264,367
Crane Co. ................................................ 2,642 114,596
Crown Cork & Seal Co., Inc. .............................. 7,120 356,890
CSX Corp. ................................................ 12,103 653,562
Cummins Engine, Inc. ..................................... 2,201 129,996
CVS Corp. ................................................ 9,552 611,925
Cyprus Amax Minerals Co. ................................. 5,379 82,702
Dana Corp. ............................................... 6,007 285,332
Darden Restaurants, Inc. ................................. 8,804 110,050
Data General Corp. ....................................... 2,754 48,022
Dayton Hudson Corp. ...................................... 12,095 816,412
Deere & Co. .............................................. 13,984 815,442
Dell Computer Corp. ...................................... 18,106 1,520,904
Delta Air Lines, Inc. .................................... 4,105 488,495
Deluxe Corp. ............................................. 4,742 163,599
Digital Equipment Corp. .................................. 8,198 303,326
Dillard Inc. ............................................. 6,135 216,258
Disney (Walt) Co. ........................................ 37,448 3,709,692
Dominion Resources, Inc. ................................. 10,368 441,288
Donnelley (R.R.) & Sons Co. .............................. 8,091 301,389
Dover Corp. .............................................. 12,335 445,601
Dow Chemical Co. ......................................... 12,578 1,276,667
Dow Jones & Co., Inc. .................................... 5,522 296,462
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Dresser Industries, Inc. ................................. 9,729 $ 408,009
DSC Communications Corp. ................................. 6,757 162,168
DTE Energy Co. ........................................... 8,350 289,640
Du Pont (E.I.) De Nemours................................. 62,765 3,769,822
Duke Energy Corp. ........................................ 19,960 1,105,285
Dun & Bradstreet Corp. ................................... 9,444 292,173
Eastern Enterprises....................................... 1,171 52,695
Eastman Chemical Co. ..................................... 4,510 268,626
Eastman Kodak Co. ........................................ 18,021 1,095,902
Eaton Corp. .............................................. 4,277 381,722
Echlin, Inc. ............................................. 3,629 131,324
Echo Bay Mines, Ltd. ..................................... 8,020 19,548
Ecolab, Inc. ............................................. 3,728 206,671
Edison International...................................... 21,157 575,205
EG&G, Inc. ............................................... 2,632 54,778
EMC Corp. ................................................ 27,509 754,778
Emerson Electric Co. ..................................... 24,597 1,388,193
Engelhard Corp. .......................................... 8,305 144,299
Enron Corp. .............................................. 17,656 733,827
Entergy Corp. ............................................ 13,884 415,652
Equifax, Inc. ............................................ 8,330 295,194
Exxon Corp. .............................................. 136,772 8,368,736
Fannie Mae................................................ 58,851 3,358,185
Federal Express Corp. .................................... 6,382 389,700
Federated Department Stores............................... 11,623 500,515
Fifth Third Bancorp....................................... 8,547 698,717
First Chicago NBD Corp. .................................. 16,136 1,347,356
First Data Corp. ......................................... 23,742 694,453
First Union Corp. ........................................ 34,859 1,786,523
FirstEnergy Corp ......................................... 12,774 370,446
Fleet Financial Group, Inc. .............................. 13,879 1,040,057
Fleetwood Enterprises, Inc. .............................. 2,068 87,760
Fluor Corp. .............................................. 4,829 180,483
FMC Corp. ................................................ 2,141 144,116
Ford Motor Co. ........................................... 68,733 3,346,437
Fort James Corp of Virginia............................... 11,593 443,432
Fortune Brands, Inc. ..................................... 9,519 352,797
Foster Wheeler Corp. ..................................... 2,339 63,299
FPL Group, Inc. .......................................... 10,090 597,201
Freddie Mac............................................... 38,550 1,616,690
Freeport-McMoran Copper Cl B.............................. 10,728 168,966
Frontier Corp. ........................................... 9,446 227,294
Fruit of the Loom, Inc. .................................. 4,217 108,060
Gannett, Inc. ............................................ 15,735 972,619
Gap, Inc. ................................................ 22,308 790,539
General Dynamics Corp. ................................... 3,596 310,829
General Electric Co. ..................................... 181,529 13,319,887
General Mills, Inc. ...................................... 8,777 628,652
General Motors Corp. ..................................... 39,229 2,378,258
General Re Corp. ......................................... 4,350 922,200
General Signal Corp. ..................................... 2,896 122,175
Genuine Parts Co. ........................................ 9,912 336,388
Georgia-Pacific (Timber Group)............................ 5,265 319,848
Giant Food, Inc. ......................................... 3,453 116,322
</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, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Gillette Co. ............................................. 31,066 $ 3,120,191
Golden West Financial Corp. .............................. 3,151 308,207
Goodrich (B.F.) Co. ...................................... 3,110 128,870
Goodyear Tire & Rubber Co. ............................... 8,674 551,883
GPU Inc. ................................................. 6,698 282,153
Grainger (W.W.), Inc. .................................... 2,754 267,654
Great Atl. & Pac. Tea Co. ................................ 2,201 65,342
Great Lakes Chemical Corp. ............................... 3,444 154,549
Green Tree Financial Corp. ............................... 7,817 204,707
GTE Corp. ................................................ 53,113 2,775,154
Guidant Corp. ............................................ 8,217 511,508
Halliburton Co. .......................................... 14,589 757,716
Harcourt General, Inc. ................................... 4,071 222,887
Harland (John H.) Co. .................................... 1,782 37,422
Harnischfeger Industries, Inc. ........................... 2,843 100,393
Harrah's Entertainment, Inc. ............................. 5,809 109,644
Harris Corp. ............................................. 4,584 210,291
Hartford Financial Svs Grp, Inc. ......................... 6,548 612,647
Hasbro, Inc. ............................................. 7,307 230,170
HBO & Co. ................................................ 11,392 546,816
HealthSouth Corp. ........................................ 22,265 617,853
Heinz (H.J.) Co. ......................................... 20,367 1,034,898
Helmerich & Payne, Inc. .................................. 1,437 97,536
Hercules, Inc. ........................................... 5,358 268,234
Hershey Foods Corp. ...................................... 7,925 490,854
Hewlett-Packard Co. ...................................... 57,696 3,606,000
Hilton Hotels Corp. ...................................... 13,884 413,049
Home Depot, Inc. ......................................... 40,577 2,388,970
Homestake Mining Co. ..................................... 8,444 74,940
Honeywell, Inc. .......................................... 7,060 483,610
Household International, Inc. ............................ 5,935 757,083
Houston Industries, Inc. ................................. 15,823 422,276
Humana, Inc. ............................................. 9,421 195,485
Huntington Bancshares, Inc. .............................. 10,608 381,888
Ikon Office Solutions..................................... 7,644 214,987
Illinois Tool Works, Inc. ................................ 13,837 831,949
Inco Ltd. ................................................ 9,609 163,353
Ingersoll Rand Co. ....................................... 9,183 371,911
Inland Steel, Inc. ....................................... 2,808 48,087
Intel Corp. .............................................. 93,975 6,601,743
International Paper Co. .................................. 16,767 723,076
Interpublic Group of Cos., Inc. .......................... 7,167 357,006
Intl. Business Machines Corp. ............................ 53,922 5,638,219
Intl. Flavors & Fragrances................................ 6,056 311,884
ITT Corp. ................................................ 6,469 536,118
ITT Industries, Inc. ..................................... 6,816 213,852
Jefferson-Pilot Corp. .................................... 3,930 306,048
Johnson & Johnson......................................... 76,583 5,044,905
Johnson Controls, Inc. ................................... 4,821 230,202
Jostens, Inc. ............................................ 2,254 51,982
Kaufman & Broad Home Corp. ............................... 2,236 50,170
Kellogg Co. .............................................. 22,792 1,131,053
Kerr-McGee Corp. ......................................... 2,743 173,666
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
KeyCorp .................................................. 12,192 $ 863,346
Kimberly Clark Corp. ..................................... 30,361 1,497,176
King World Productions, Inc. ............................. 2,115 122,141
KLA Tencor Corporation.................................... 4,817 186,056
Kmart Corp. .............................................. 27,054 312,811
Knight-Ridder, Inc. ...................................... 4,684 243,568
Kroger Corp. ............................................. 14,137 522,185
Laidlaw, Inc. ............................................ 18,914 257,703
Lilly (Eli) & Co. ........................................ 61,528 4,283,887
Limited (The), Inc. ...................................... 15,082 384,591
Lincoln National Corp. ................................... 5,669 442,890
Liz Claiborne, Inc. ...................................... 3,707 154,998
Lockheed Martin Corp. .................................... 10,782 1,062,027
Loews Corp. .............................................. 6,379 676,971
Longs Drug Stores, Inc. .................................. 2,257 72,506
Louisiana-Pacific Corp. .................................. 6,289 119,491
Lowe's Companies, Inc. ................................... 9,681 461,662
LSI Logic Corp. .......................................... 8,168 161,318
Lucent Technologies, Inc. ................................ 35,593 2,842,990
Mallinckrodt, Inc. ....................................... 4,222 160,436
Manor Care, Inc. ......................................... 3,661 128,135
Marriott International, Inc. ............................. 7,079 490,220
Marsh & McLennan Cos., Inc. .............................. 9,421 702,453
Masco Corp. .............................................. 9,163 466,167
Mattel, Inc. ............................................. 16,125 600,656
May Department Stores Co. ................................ 12,829 675,927
Maytag Corp. ............................................. 5,268 196,562
MBIA Inc. ................................................ 4,957 331,189
MBNA Corp. ............................................... 28,439 776,740
McDermott International Inc. ............................. 3,196 117,053
McDonald's Corp. ......................................... 38,162 1,822,235
McGraw-Hill Cos., Inc. ................................... 5,491 406,334
MCI Communications Corp. ................................. 39,814 1,704,536
Mead Corp. ............................................... 6,020 168,560
Medtronic, Inc. .......................................... 26,015 1,360,909
Mellon Bank Corp. ........................................ 14,479 877,789
Mercantile Stores, Inc. .................................. 2,115 128,750
Merck & Co., Inc. ........................................ 66,462 7,061,587
Meredith Corp. ........................................... 3,080 109,917
Merrill Lynch & Co., Inc. ................................ 18,488 1,348,468
MGIC Investment Corp. .................................... 6,333 421,144
Micron Technology, Inc. .................................. 12,124 315,224
Microsoft Corp. .......................................... 68,960 8,913,080
Millipore Corp. .......................................... 2,506 85,047
Minnesota Mining & Mfg. Co. .............................. 22,667 1,860,110
Mirage Resorts, Inc. ..................................... 10,290 234,097
Mobil Corp. .............................................. 43,509 3,140,805
Monsanto Co. ............................................. 33,924 1,424,808
Moore Corp., Ltd. ........................................ 5,106 77,228
Morgan (J.P.) & Co., Inc. ................................ 9,853 1,112,157
Morgan St Dean Witter Discover............................ 33,779 1,997,183
Morton International, Inc. ............................... 7,659 263,278
Motorola, Inc. ........................................... 33,111 1,889,396
NACCO Industries, Inc. Cl A............................... 469 50,270
</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, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Nalco Chemical Co. ....................................... 3,845 $ 152,117
National City Corp. ...................................... 11,852 779,269
National Semiconductor Corp. ............................. 9,255 240,051
National Service Industries............................... 2,595 128,614
NationsBank Corp. ........................................ 39,445 2,398,749
Navistar International Corp. ............................. 4,202 104,262
New York Times Co. Cl A................................... 5,324 352,049
Newell Co. ............................................... 8,828 375,190
Newmont Mining Corp. ..................................... 8,994 264,198
NextLevel Systems, Inc. .................................. 8,478 151,544
Niagara Mohawk Power Corp. ............................... 8,311 87,265
Nicor, Inc. .............................................. 2,796 117,956
Nike, Inc. Cl B........................................... 16,109 632,278
Nordstrom, Inc. .......................................... 4,444 268,306
Norfolk Southern Corp. ................................... 20,915 644,443
Northern States Power Co. ................................ 4,247 247,387
Northern Telecom, Ltd. ................................... 14,542 1,294,238
Northrop Grumman Corp. ................................... 3,704 425,960
Norwest Corp. ............................................ 43,138 1,666,205
Novell, Inc. ............................................. 20,089 150,667
Nucor Corp. .............................................. 5,056 244,268
Occidental Petroleum Corp. ............................... 19,063 558,784
Omnicom Group, Inc. ...................................... 8,994 381,120
Oneok, Inc. .............................................. 1,721 69,485
Oracle Corp. ............................................. 54,386 1,213,487
Oryx Energy Co. .......................................... 6,066 154,683
Owens Corning............................................. 3,069 104,729
Owens Illinois............................................ 8,075 306,345
Paccar, Inc............................................... 4,479 235,147
Pacific Enterprises....................................... 4,794 180,374
PacifiCorp................................................ 16,449 449,263
Pall Corp. ............................................... 7,321 151,453
Parametric Technology Co. ................................ 7,065 334,704
Parker Hannifin Corp. .................................... 6,428 294,884
Peco Energy Co. .......................................... 12,344 299,342
Penney (J.C.) Co., Inc. .................................. 13,864 836,172
Pennzoil Co. ............................................. 2,716 181,462
Peoples Energy Corp. ..................................... 2,018 79,458
Pep Boys-Manny, Moe & Jack................................ 3,637 86,833
Pepsico, Inc. ............................................ 84,146 3,066,069
Perkin-Elmer Corp. ....................................... 2,520 179,077
Pfizer, Inc. ............................................. 71,733 5,348,591
PG & E Corp. ............................................. 24,320 740,240
Pharmacia & Upjohn, Inc. ................................. 28,145 1,030,810
Phelps Dodge Corp. ....................................... 3,260 202,935
Philip Morris Cos., Inc. ................................. 134,474 6,093,363
Phillips Petroleum Co. ................................... 14,596 709,730
Pioneer Hi-Bred Intl., Inc. .............................. 3,647 391,140
Pitney Bowes, Inc. ....................................... 8,033 722,467
Placer Dome, Inc. ........................................ 13,783 174,871
PNC Bank Corp. ........................................... 16,919 965,440
Polaroid Corp. ........................................... 2,622 127,658
Potlatch Corp. ........................................... 1,664 71,552
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
PP&L Resources, Inc. ..................................... 9,502 $ 227,454
PPG Industries, Inc. ..................................... 9,880 564,395
Praxair, Inc. ............................................ 8,745 393,525
Procter & Gamble Co. ..................................... 74,545 5,949,622
Progressive Corp. of Ohio................................. 4,008 480,459
Providian Financial Corp. ................................ 5,396 243,831
Public Svc. Enterprise Group.............................. 12,866 407,691
Pulte Corp. .............................................. 1,217 50,885
Quaker Oats Co. .......................................... 7,681 405,172
Ralston Purina Co. ....................................... 5,910 549,260
Raychem Corp. ............................................ 4,769 205,365
Raytheon Co. ............................................. 2,676 132,110
Raytheon Co. ............................................. 18,820 950,410
Reebok International Ltd. ................................ 3,238 93,294
Republic New York Corp. .................................. 3,030 345,988
Reynolds Metals Co. ...................................... 4,243 254,580
Rite-Aid Corp. ........................................... 7,075 415,214
Rockwell Intl., Corp. .................................... 11,582 605,159
Rohm & Haas Co. .......................................... 3,395 325,071
Rowan Cos., Inc. ......................................... 4,980 151,890
Royal Dutch Petro Co.--NY Shr............................. 118,938 6,444,952
Rubbermaid, Inc. ......................................... 8,627 215,675
Russell Corp. ............................................ 2,099 55,754
Ryder System, Inc. ....................................... 4,474 146,523
Safeco Corp. ............................................. 7,971 388,586
Safety-Kleen Corp. ....................................... 3,353 91,997
Sara Lee Corp. ........................................... 26,623 1,499,207
SBC Communications, Inc. ................................. 52,595 3,852,583
Schering-Plough Corp. .................................... 40,610 2,522,896
Schlumberger, Ltd. ....................................... 27,459 2,210,449
Scientific-Atlanta, Inc. ................................. 4,462 74,738
Seagate Technology, Inc. ................................. 13,566 261,145
Seagram, Ltd. ............................................ 19,770 638,818
Sears Roebuck & Co. ...................................... 21,743 983,870
Service Corp. International............................... 13,971 516,053
Shared Medical Systems Corp. ............................. 1,436 94,776
Sherwin-Williams Co. ..................................... 9,935 275,696
Sigma-Aldrich Corp. ...................................... 5,769 229,317
Silicon Graphics, Inc. ................................... 10,395 129,287
Snap-On, Inc. ............................................ 3,520 153,560
Sonat, Inc. .............................................. 4,935 225,776
Southern Co. ............................................. 39,412 1,019,785
Southwest Airlines Co. ................................... 12,148 299,144
Springs Industries, Inc. Cl A............................. 1,160 60,320
Sprint Corp. ............................................. 23,840 1,397,620
St. Jude Medical, Inc. ................................... 5,284 161,162
St. Paul Companies (The).................................. 4,639 380,687
Stanley Works............................................. 5,122 241,694
State Street Corp. ....................................... 8,920 519,032
Stone Container Corp. .................................... 5,716 59,660
Sun America, Inc. ........................................ 10,820 462,555
Sun Co., Inc. ............................................ 4,177 175,695
Sun Microsystems, Inc. ................................... 21,228 846,466
Suntrust Banks, Inc. ..................................... 11,695 834,730
</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, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Supervalu, Inc. .......................................... 3,487 $ 146,018
Synovus Financial Corp. .................................. 9,709 317,969
Sysco Corp. .............................................. 9,486 432,205
Tandy Corp. .............................................. 5,734 221,117
Tektronix, Inc. .......................................... 2,883 114,419
Tele-Communications Inc--Cl A............................. 28,132 785,937
Tellabs, Inc. ............................................ 10,066 532,239
Temple-Inland, Inc. ...................................... 3,278 171,480
Tenet Healthcare Corp. ................................... 16,931 560,839
Tenneco, Inc. ............................................ 9,443 372,998
Texaco, Inc. ............................................. 30,428 1,654,522
Texas Instruments, Inc. .................................. 22,064 992,880
Texas Utilities Co. ...................................... 13,838 575,141
Textron, Inc. ............................................ 9,114 569,625
Thermo Electron Corp. .................................... 8,645 384,702
Thomas & Betts Corp. ..................................... 3,163 149,451
Time Warner, Inc. ........................................ 31,052 1,925,224
Times Mirror Co. Cl A..................................... 5,313 326,749
Timken Co. ............................................... 3,623 124,540
TJX Cos., Inc. ........................................... 9,056 311,300
Torchmark Corp. .......................................... 7,965 335,027
Toys R Us, Inc. .......................................... 15,839 497,938
Transamerica Corp. ....................................... 3,485 371,152
Travelers Group, Inc. .................................... 65,837 3,546,968
Tribune Co. .............................................. 6,819 424,482
Tricon Global Restaurants................................. 8,418 244,648
TRW, Inc. ................................................ 6,831 364,604
Tupperware Corp .......................................... 3,525 98,259
Tyco International Ltd. .................................. 29,556 1,331,867
U.S Bancorp .............................................. 13,616 1,524,140
U.S. Surgical Corp. ...................................... 4,222 123,757
U.S. West Media Group..................................... 33,672 972,279
U.S. West Communications Group............................ 27,584 1,244,728
Unicom Corp. ............................................. 12,008 369,246
Unilever N.V. ............................................ 35,508 2,217,030
Union Camp Corp. ......................................... 3,991 214,266
Union Carbide Corp. ...................................... 6,834 293,434
Union Electric Co. ....................................... 5,877 254,180
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Union Pacific Corp. ...................................... 13,712 $ 856,143
Union Pacific Resources Grp............................... 14,079 341,415
Unisys Corp. ............................................. 10,061 139,596
United Healthcare Corp. .................................. 10,447 519,085
United Technologies Corp. ................................ 12,922 940,883
Unocal Corp. ............................................. 13,674 530,722
UNUM Corp. ............................................... 7,697 418,524
US Airways Group Inc. .................................... 5,225 326,562
USF&G Corp. .............................................. 6,383 140,824
UST, Inc. ................................................ 10,221 377,538
USX-Marathon Group ....................................... 15,998 539,932
USX-U.S. Steel Group, Inc. ............................... 4,933 154,156
V F Corp. ................................................ 10,398 477,658
Viacom, Inc. ............................................. 19,591 811,802
W.R. Grace & Co. ......................................... 4,179 336,148
Wachovia Corp. ........................................... 11,330 919,146
Wal-Mart Stores, Inc. .................................... 124,989 4,929,253
Walgreen Co. ............................................. 27,306 856,725
Warner-Lambert Co. ....................................... 15,106 1,873,144
Washington Mutual, Inc. .................................. 14,415 919,844
Waste Management Inc. .................................... 25,239 694,072
Wells Fargo & Co. ........................................ 4,809 1,632,354
Wendy's International, Inc. .............................. 7,579 182,369
Western Atlas, Inc. ...................................... 3,104 229,696
Westvaco Corp. ........................................... 5,868 184,475
Weyerhaeuser Co. ......................................... 11,072 543,220
Whirlpool Corp. .......................................... 4,290 235,950
Whitman Corp. ............................................ 5,845 152,335
Willamette Industries, Inc. .............................. 6,392 205,742
Williams Cos., Inc. ...................................... 17,728 503,032
Winn-Dixie Stores, Inc. .................................. 8,259 360,815
Woolworth Corp. Z......................................... 7,764 158,191
WorldCom, Inc. ........................................... 50,108 1,515,767
Worthington Industries, Inc. ............................. 5,565 91,822
Wrigley (Wm.) Jr. Co. .................................... 6,446 512,859
Xerox Corp. .............................................. 18,076 1,334,234
------------
TOTAL INDEXED ASSETS-- COMMON STOCKS
(Cost: $220,180,322) 60.6%............................... $422,040,356
------------
</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, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
INDEXED ASSETS:
- ---------------
<CAPTION>
SHORT-TERM DEBT SECURITIES
<S> <C> <C> <C> <C>
U.S. Government (0.1%)
U.S. Treasury Bill..................... 5.30% 04/16/98 $1,000,000 $ 984,671
------------
Commercial Paper (1.5%)
Banc One Corp.......................... 6.50 01/02/98 1,996,000 1,995,639
Consolidated Natural Gas............... 6.20 01/07/98 3,412,000 3,408,472
Eaton Corp............................. 6.40 01/05/98 5,215,000 5,211,286
------------
10,615,398
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $11,599,922) 1.6%........................................ 11,600,069
------------
TOTAL INDEXED ASSETS
(Cost: $231,780,244) 62.2%...................................... 433,640,425
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
ACTIVE ASSETS
COMMON STOCKS
Basic Materials (1.3%)
Atchison Casting Corp.*.................................. 48,800 $ 793,000
DEKALB Genetics Corp. Cl B*.............................. 27,150 1,065,637
Essex International Inc.*................................ 9,000 267,750
Lone Star Technologies, Inc.............................. 87,000 2,468,625
Morton International, Inc................................ 51,800 1,780,625
Oregon Steel Mills, Inc.................................. 55,000 1,172,187
Praxair, Inc............................................. 31,000 1,395,000
------------
8,942,824
------------
Consumer, Cyclical (9.1%)
American Greetings Corp. Cl A............................ 49,200 1,924,950
Borg-Warner Automotive, Inc.............................. 29,200 1,518,400
Brylane, Inc.*........................................... 27,150 1,337,137
Callaway Golf Co......................................... 106,000 3,027,625
Central Garden & Pet Co.*................................ 37,400 981,750
Cinar Films, Inc. Cl B*.................................. 26,850 1,043,793
Coach USA, Inc.*......................................... 38,200 1,279,700
Consolidation Capital Corp.*............................. 17,000 345,312
Dan River, Inc.*......................................... 43,600 716,675
Dress Barn, Inc.*........................................ 27,000 766,125
Earthgrains Co........................................... 24,650 1,158,550
Fairfield Communities, Inc.*............................. 57,700 2,553,225
Family Golf Centers, Inc.*............................... 23,900 749,862
Finlay Enterprises, Inc.*................................ 97,800 2,224,950
Flowers Industries, Inc.................................. 17,300 355,731
Fred Meyer, Inc.*........................................ 25,300 920,287
Gannett, Inc............................................. 35,200 2,175,800
General Motors Corp...................................... 26,400 1,600,500
Golden Bear Golf, Inc.*.................................. 81,000 648,000
Interstate Bakeries Corp................................. 15,000 560,625
Jacor Communications, Inc.*.............................. 16,850 895,156
Linens 'n Things, Inc.*.................................. 9,900 431,887
Masco Corp............................................... 39,300 1,999,387
May Department Stores Co................................. 30,100 1,585,893
Michaels Stores, Inc.*................................... 34,700 1,014,975
Midwest Express Holdings, Inc.*.......................... 64,800 2,515,050
Nautica Enterprises, Inc.*............................... 12,750 296,437
Outdoor Systems, Inc.*................................... 36,250 1,395,625
Pillowtex Corp.*......................................... 11,500 401,062
Polo Ralph Lauren Corp.*................................. 12,500 303,906
Ryanair Holdings PLC--ADR*............................... 70,000 1,758,750
Ryder System, Inc........................................ 39,500 1,293,625
St. John Knits, Inc...................................... 146,000 5,840,030
Stage Stores, Inc.*...................................... 17,300 646,587
Suiza Foods Corp.*....................................... 49,705 2,960,554
Sunbeam, Corp............................................ 27,850 1,173,181
The Men's Wearhouse, Inc.*............................... 19,550 679,362
Tiffany & Co............................................. 61,400 2,214,237
Tower Automotive, Inc.*.................................. 76,500 3,217,781
Universal Foods Corp.*................................... 47,700 2,015,325
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Universal Outdoor Holdings*.............................. 17,500 $ 910,000
Wendy's International, Inc............................... 72,000 1,732,500
Xerox Corp............................................... 32,400 2,391,525
------------
63,561,832
------------
Consumer, Non-Cyclical (3.4%)
Advanced Lighting Techs., Inc.*.......................... 55,500 1,054,500
American Home Products Corp.............................. 16,800 1,285,200
American Stores Co....................................... 95,600 1,965,775
Amerisource Health Corp-Cl A*............................ 11,100 646,575
Bed Bath & Beyond, Inc.*................................. 31,700 1,220,450
Bergen Brunswig*......................................... 35,200 1,482,800
Biochem Pharma, Inc.*.................................... 12,650 264,068
Biomet, Inc.*............................................ 29,700 761,062
CKE Restaurants, Inc.*................................... 17,200 724,550
DURA Pharmaceuticals, Inc.*.............................. 13,650 626,193
Elan Corp Plc*........................................... 6,400 327,600
ESC Medical Systems Ltd.*................................ 27,200 1,054,000
Express Scripts, Inc-Cl A*............................... 16,750 1,005,000
I-STAT Corporation*...................................... 35,000 553,437
IDEC Pharmaceuticals Corp.*.............................. 19,600 673,750
JP Foodservice, Inc.*.................................... 19,050 703,659
Keystone Automotive Inds*................................ 17,500 415,625
Lincare Holdings, Inc*................................... 18,400 1,048,800
Medimmune, Inc.*......................................... 3,000 128,625
Mentor Corp.............................................. 24,750 903,375
Omnicare, Inc.*.......................................... 23,000 713,000
Pediatrix Medical Group, Inc.*........................... 15,450 660,487
Philip Morris Cos., Inc.................................. 62,100 2,813,906
Safeskin Corp.*.......................................... 8,650 490,887
Warnaco Group, Inc. Cl A................................. 50,000 1,568,750
Whole Foods Market, Inc.*................................ 15,300 782,212
------------
23,874,286
------------
Energy (3.2%)
Elf Aquitaine--ADR....................................... 45,500 2,667,437
Evi, Inc.*............................................... 12,400 641,700
Global Industries Ltd.*.................................. 26,200 445,400
Kerr-McGee Corp.......................................... 29,200 1,848,725
Mobil Corp............................................... 22,000 1,588,125
Newpark Resources Inc.*.................................. 133,400 2,334,500
Oceaneering Int'l, Inc.*................................. 123,900 2,447,025
Precision Drilling Corp*................................. 102,000 2,486,250
St. Mary Land & Exploration C. .......................... 42,500 1,487,500
Texaco, Inc.............................................. 23,800 1,294,125
Union Pacific Resources Grp.............................. 96,400 2,337,700
Varco International, Inc.*............................... 36,000 771,750
Veritas DGC, Inc.*....................................... 45,000 1,777,500
------------
22,127,737
------------
Financial (6.4%)
Ahmanson (H.F.) & Co..................................... 34,951 2,339,532
American Int'l. Group, Inc............................... 31,400 3,414,750
Aon Corp................................................. 31,500 1,846,687
Associated Banc-Corp..................................... 6,000 330,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
ACTIVE ASSETS (CONT'D)
Beneficial Corp.......................................... 17,000 $ 1,413,125
Checkfree Holdings Corp.................................. 66,700 1,800,900
Citicorp................................................. 39,300 4,968,993
CMAC Investment Corporation.............................. 25,850 1,560,693
Enhance Financial Svcs Group............................. 24,600 1,463,700
Executive Risk, Inc.*.................................... 21,200 1,480,025
First of America Bank Corp............................... 15,400 1,187,725
First Union Corp......................................... 49,000 2,511,250
Fleet Financial Group, Inc............................... 23,300 1,746,043
INMC Mortgage Holdings, Inc.............................. 53,200 1,246,875
Keystone Financial, Inc.................................. 71,250 2,867,812
Loews Corp............................................... 21,900 2,324,137
National Golf Properties, Inc............................ 47,700 1,565,156
NationsBank Corp......................................... 23,100 1,404,768
Oriental Financial Group................................. 50,000 1,478,125
Patriot American Hospitality............................. 27,299 786,552
Providian Financial Corp................................. 29,100 1,314,956
The Money Store, Inc..................................... 35,950 754,950
U.S Bancorp.............................................. 27,800 3,111,862
Vesta Insurance Group, Inc............................... 23,850 1,416,093
------------
44,335,459
------------
Industrial (3.4%)
AGCO Corp................................................ 95,400 2,790,450
American Disposal Serv., Inc.*........................... 13,900 507,350
Applied Materials, Inc.*................................. 66,800 2,012,350
Aviall, Inc.*............................................ 53,700 802,143
Burlington Northern Santa Fe............................. 17,711 1,646,016
Cambridge Tech. Partners, Inc.*.......................... 10,550 439,143
Chart Industries, Inc.*.................................. 47,200 1,076,750
Expeditors Int'l Wash., Inc.............................. 9,100 350,350
First Data Corp.......................................... 47,600 1,392,300
Foster Wheeler Corp...................................... 38,500 1,041,906
Hardinge, Inc............................................ 87,300 3,251,925
Hvide Marine, Inc.*...................................... 14,000 360,500
Keane, Inc.*............................................. 9,450 383,906
Knightsbridge Tankers Ltd.*.............................. 38,000 1,075,875
Knoll, Inc.*............................................. 14,000 449,750
QuickResponse Services, Inc.*............................ 30,400 1,124,800
Union Pacific Corp....................................... 37,100 2,316,431
USA Waste Services, Inc.*................................ 33,472 1,313,776
York International Corp.................................. 32,000 1,266,000
------------
23,601,721
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Technology (9.8%)
3Com Corp.*.............................................. 146,300 $ 5,111,356
Advancrd Fibre Communication*............................ 29,000 844,625
America Online, Inc.*.................................... 8,300 740,256
Atmel Corp.*............................................. 76,200 1,414,462
Avis Rent A Car, Inc.*................................... 40,100 1,280,693
Ballard Medical Products................................. 52,400 1,270,700
Boeing Co................................................ 32,600 1,595,362
Boston Technology Inc*................................... 75,000 1,884,375
CBT Group PLC*........................................... 25,800 2,118,825
Ciena Corp.*............................................. 14,800 904,650
Cisco Systems, Inc.*..................................... 178,200 9,934,650
Citrix Systems, Inc.*.................................... 9,100 691,600
Compaq Computer Corp.*................................... 133,000 7,506,187
Cytyc Corporation*....................................... 35,000 870,625
Hooper Holmes, Inc....................................... 68,250 993,890
INCYTE Pharmaceuticals, Inc.*............................ 35,500 1,597,500
Intel Corp............................................... 105,100 7,383,275
Intl. Business Machines Corp............................. 26,552 2,776,343
Linear Technology Corp................................... 67,400 3,883,925
Maxim Integrated Products, Inc*.......................... 59,200 2,042,400
Parametric Technology Co.*............................... 39,200 1,857,100
Raytheon Co.*............................................ 1,684 83,124
Raytheon Co.*............................................ 48,576 2,453,088
Sun Microsystems, Inc.*.................................. 161,600 6,443,800
Technology Solutions Company*............................ 27,000 712,125
Tellabs, Inc.*........................................... 13,500 713,812
Transaction Network Services*............................ 21,600 372,600
Xilinx, Inc.*............................................ 17,000 596,062
------------
68,077,410
------------
Utilities (0.9%)
Duke Energy Corp......................................... 34,000 1,882,750
Edison International..................................... 38,000 1,033,125
MCI Communications Corp.................................. 48,300 2,067,843
SBC Communications, Inc.................................. 27,000 1,977,750
------------
6,961,468
------------
TOTAL ACTIVE ASSETS--
COMMON STOCKS
(Cost: $184,699,006) 37.5%....................................... 261,482,737
------------
</TABLE>
- -------
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- ------------
<S> <C> <C> <C> <C>
ACTIVE ASSETS (CONT'D):
SHORT-TERM DEBT SECURITIES
Commercial Paper (0.3%)
Banc One Corp............................ 6.50% 01/02/98 $283,000 $ 282,949
Four Winds Funding Corp. ................ 6.06 01/05/98 800,000 799,460
Merrill Lynch............................ 6.05 01/09/98 800,000 798,924
------------
1,881,333
------------
TOTAL ACTIVE ASSETS--SHORT-TERM DEBT SECURITIES
(Cost: $1,881,333) 0.3%......................................... 1,881,333
------------
TOTAL ACTIVE ASSETS
(Cost: $186,580,339) 37.8%...................................... 263,364,070
------------
TOTAL INVESTMENTS
(Cost: $418,360,583) 100.0%..................................... $697,004,495
============
</TABLE>
- -------
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
UNDERLYING FACE
EXPIRATION DATE AMOUNT AT VALUE UNREALIZED (LOSS)
--------------- --------------- -----------------
<S> <C> <C> <C>
PURCHASED
50 SP 500 Stock Index Futures
Contracts................... March 1998 $12,238,750 $(2500)
=========== ======
</TABLE>
The face value of futures purchased and outstanding as percentage of total
investment in securities: 1.8%
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
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
INDEXED ASSETS:
COMMON STOCKS
3Com Corp.................................................. 10,409 $ 363,664
Abbott Laboratories........................................ 23,120 1,515,805
Adobe Systems, Inc......................................... 2,201 90,791
Advanced Micro Devices, Inc. .............................. 4,256 76,342
Aeroquip-Vickers, Inc...................................... 849 41,654
Aetna, Inc................................................. 4,525 319,295
Ahmanson (H.F.) & Co....................................... 2,854 191,039
Air Products & Chemicals Corp.............................. 3,310 272,247
Airtouch Communications, Inc............................... 15,213 632,290
Alberto Culver Co. Cl B.................................... 1,695 54,345
Albertson's, Inc........................................... 7,422 351,617
Alcan Aluminum Ltd......................................... 6,856 189,397
Allegheny Teledyne Inc..................................... 5,314 137,499
Allergan, Inc.............................................. 1,958 65,715
AlliedSignal, Inc. ........................................ 17,094 665,597
Allstate Corp. ............................................ 12,962 1,177,921
Alltel Corp................................................ 5,644 231,756
Aluminum Co. of America.................................... 5,253 369,679
Alza Corp.................................................. 2,568 81,694
Amerada Hess Corp.......................................... 2,771 152,058
American Electric Power Co. ............................... 5,714 294,985
American Express Co........................................ 14,049 1,253,873
American General Corp. .................................... 7,363 398,062
American Greetings Corp. Cl A.............................. 2,272 88,892
American Home Products Corp................................ 19,589 1,498,558
American Int'l. Group, Inc................................. 21,179 2,303,216
American Stores Co......................................... 8,224 169,106
Ameritech Corp............................................. 16,542 1,331,631
Amgen, Inc................................................. 8,008 433,433
Amoco Corp................................................. 14,719 1,252,954
Amp, Inc................................................... 6,634 278,628
AMR Corp................................................... 2,777 356,844
Anadarko Petroleum Corp.................................... 1,802 109,358
Andrew Corp................................................ 2,724 65,376
Anheuser Busch Cos., Inc................................... 14,854 653,576
Aon Corp. ................................................. 5,050 296,056
Apache Corp. .............................................. 2,728 95,650
Apple Computer, Inc........................................ 3,846 50,478
Applied Materials, Inc..................................... 11,011 331,706
Archer Daniels Midland Co.................................. 16,916 366,865
Armco, Inc................................................. 3,233 15,962
Armstrong World Inds., Inc................................. 1,231 92,017
Asarco, Inc................................................ 1,272 28,540
Ashland, Inc............................................... 2,255 121,065
AT&T Corp.................................................. 49,062 3,005,047
Atlantic Richfield Co...................................... 9,689 776,331
Autodesk, Inc.............................................. 1,447 53,539
Automatic Data Processing, Inc ............................ 8,844 542,800
AutoZone, Inc. ............................................ 4,561 132,269
Avery Dennison Corp........................................ 3,114 139,351
Avon Products, Inc. ....................................... 3,998 245,377
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
Baker Hughes, Inc.......................................... 5,096 $ 222,313
Ball Corp.................................................. 911 32,169
Baltimore Gas & Electric Co. .............................. 4,460 151,918
Banc One Corp.............................................. 17,742 963,612
Bank of New York, Inc...................................... 11,386 658,253
BankAmerica Corp........................................... 20,961 1,530,153
BankBoston Corp............................................ 4,400 413,325
Bankers Trust New York Corp................................ 2,961 332,927
Bard (C.R.), Inc. ......................................... 1,734 54,295
Barnett Banks, Inc......................................... 5,830 419,031
Barrick Gold Corp.......................................... 11,258 209,680
Battle Mountain Gold Co. .................................. 6,938 40,760
Bausch & Lomb, Inc......................................... 1,674 66,332
Baxter International, Inc.................................. 8,441 425,742
Bay Networks, Inc.......................................... 6,360 162,577
BB&T Corp.................................................. 4,135 264,898
Becton Dickinson & Co...................................... 3,690 184,500
Bell Atlantic Corp. ....................................... 23,445 2,133,495
BellSouth Corp............................................. 29,943 1,686,165
Bemis Co................................................... 1,601 70,544
Beneficial Corp............................................ 1,606 133,498
Bethlehem Steel Corp. ..................................... 3,401 29,333
Biomet, Inc................................................ 3,360 86,100
Black & Decker Corp........................................ 2,852 111,406
Block (H & R), Inc......................................... 3,143 140,845
Boeing Co.................................................. 30,240 1,479,870
Boise Cascade Corp......................................... 1,679 50,789
Boston Scientific Corp..................................... 5,864 269,011
Briggs & Stratton Corp..................................... 765 37,150
Bristol-Myers Squibb Co.................................... 30,054 2,843,859
Brown-Forman Corp. Cl B.................................... 2,084 115,141
Browning Ferris Inds., Inc................................. 5,974 221,038
Brunswick Corp............................................. 2,999 90,907
Burlington Northern Santa Fe............................... 4,698 436,620
Burlington Resources, Inc.................................. 5,317 238,268
Cabletron Systems, Inc..................................... 4,762 71,430
Caliber System, Inc........................................ 1,176 57,256
Campbell Soup Co........................................... 13,830 803,868
Cardinal Health, Inc....................................... 3,278 246,259
Carolina Power & Light Co. ................................ 4,571 193,981
Case Corp.................................................. 2,251 136,044
Caterpillar, Inc........................................... 11,253 546,473
CBS Corp................................................... 21,280 626,430
Cendant Corporation........................................ 23,893 821,317
Centex Corp. .............................................. 876 55,133
Central & South West Corp. ................................ 6,410 173,470
Ceridian Corp.............................................. 2,307 105,689
Champion International Corp................................ 2,897 131,270
Charles Schwab Corp........................................ 7,993 335,206
Charming Shoppes, Inc...................................... 3,194 14,971
Chase Manhattan Corp....................................... 12,739 1,394,920
Chevron Corp............................................... 19,774 1,522,598
Chrysler Corp.............................................. 20,025 704,629
Chubb Corp................................................. 5,144 389,015
</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, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
CIGNA Corp. ............................................... 2,235 $ 386,794
Cincinnati Financial Corp ................................. 1,658 233,363
Cincinnati Milacron, Inc................................... 1,203 31,202
Cinergy Corp............................................... 4,762 182,444
Circuit City Group, Inc.................................... 2,974 105,762
Cisco Systems, Inc. ....................................... 30,414 1,695,580
Citicorp................................................... 13,809 1,745,975
Clear Channel Communications............................... 2,961 235,214
Clorox Co. ................................................ 3,122 246,833
Coastal Corp. ............................................. 3,201 198,261
Coca-Cola Co. ............................................. 74,758 4,980,751
Cognizant Corp. ........................................... 4,959 220,985
Colgate-Palmolive Co....................................... 8,939 657,016
Columbia Energy Group...................................... 1,673 131,435
Columbia HCA Healthcare Corp............................... 19,574 579,879
Comcast Corp. Cl A......................................... 10,536 332,542
Comerica, Inc. ............................................ 3,187 287,626
Compaq Computer Corp....................................... 22,833 1,288,637
Computer Associates Intl., Inc ............................ 16,488 871,803
Computer Sciences Corp. ................................... 2,330 194,555
Conagra, Inc............................................... 14,283 468,660
Conseco, Inc............................................... 5,674 257,812
Consolidated Edison Inc. .................................. 7,099 291,059
Consolidated Natural Gas Co................................ 2,880 174,240
Cooper Industries.......................................... 3,689 180,761
Cooper Tire & Rubber Co. .................................. 2,378 57,963
Coors (Adolph) Co. Cl B.................................... 1,119 37,206
CoreStates Financial Corp.................................. 5,979 478,693
Corning, Inc............................................... 6,969 258,724
Costco Co.................................................. 6,419 286,447
Countrywide Credit Industries.............................. 3,236 138,743
CPC International, Inc..................................... 4,337 468,396
Crane Co................................................... 1,386 60,117
Crown Cork & Seal Co., Inc. ............................... 3,876 194,284
CSX Corp................................................... 6,579 355,266
Cummins Engine, Inc........................................ 1,155 68,217
CVS Corp................................................... 5,194 332,740
Cyprus Amax Minerals Co.................................... 2,823 43,403
Dana Corp. ................................................ 3,153 149,767
Darden Restaurants, Inc. .................................. 4,620 57,750
Data General Corp.......................................... 1,445 25,197
Dayton Hudson Corp......................................... 6,574 443,745
Deere & Co. ............................................... 7,614 443,991
Dell Computer Corp. ....................................... 9,867 828,828
Delta Air Lines, Inc. ..................................... 2,219 264,061
Deluxe Corp................................................ 2,489 85,870
Digital Equipment Corp. ................................... 4,467 165,279
Dillard Inc. .............................................. 3,374 118,933
Disney (Walt) Co. ......................................... 20,391 2,019,983
Dominion Resources, Inc.................................... 5,611 238,818
Donnelley (R.R.) & Sons Co................................. 4,419 164,607
Dover Corp. ............................................... 6,716 242,615
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
Dow Chemical Co............................................ 6,885 $ 698,827
Dow Jones & Co., Inc....................................... 2,898 155,586
Dresser Industries, Inc.................................... 5,288 221,765
DSC Communications Corp.................................... 3,547 85,128
DTE Energy Co.............................................. 4,382 152,000
Du Pont (E.I.) De Nemours.................................. 34,155 2,051,434
Duke Energy Corp........................................... 10,868 601,815
Dun & Bradstreet Corp...................................... 5,149 159,297
Eastern Enterprises........................................ 615 27,675
Eastman Chemical Co........................................ 2,367 140,984
Eastman Kodak Co. ......................................... 9,840 598,395
Eaton Corp. ............................................... 2,335 208,398
Echlin, Inc................................................ 1,904 68,901
Echo Bay Mines, Ltd........................................ 4,209 10,259
Ecolab, Inc. .............................................. 1,956 108,435
Edison International....................................... 11,530 313,471
EG&G, Inc. ................................................ 1,382 28,762
EMC Corp. ................................................. 14,903 408,901
Emerson Electric Co. ...................................... 13,394 755,923
Engelhard Corp. ........................................... 4,359 75,737
Enron Corp................................................. 9,612 399,498
Entergy Corp. ............................................. 7,287 218,154
Equifax, Inc............................................... 4,557 161,488
Exxon Corp................................................. 74,537 4,560,732
Fannie Mae................................................. 32,045 1,828,567
Federal Express Corp....................................... 3,473 212,070
Federated Department Stores................................ 6,316 271,982
Fifth Third Bancorp........................................ 4,654 380,464
First Chicago NBD Corp..................................... 8,794 734,299
First Data Corp............................................ 12,938 378,436
First Union Corp........................................... 18,964 971,905
FirstEnergy Corp........................................... 6,955 201,695
Fleet Financial Group, Inc................................. 7,550 565,778
Fleetwood Enterprises, Inc. ............................... 1,086 46,087
Fluor Corp. ............................................... 2,534 94,708
FMC Corp................................................... 1,124 75,659
Ford Motor Co.............................................. 36,272 1,765,993
Fort James Corp of Virginia................................ 6,312 241,434
Fortune Brands, Inc........................................ 5,175 191,798
Foster Wheeler Corp. ...................................... 1,228 33,232
FPL Group, Inc. ........................................... 5,500 325,531
Freddie Mac................................................ 20,991 880,310
Freeport-McMoran Copper Cl B............................... 6,005 94,578
Frontier Corp. ............................................ 4,957 119,277
Fruit of the Loom, Inc..................................... 2,213 56,708
Gannett, Inc. ............................................. 8,531 527,322
Gap, Inc................................................... 12,147 430,459
General Dynamics Corp. .................................... 1,887 163,107
General Electric Co........................................ 98,887 7,256,017
General Mills, Inc. ....................................... 4,783 342,582
General Motors Corp. ...................................... 21,379 1,296,101
General Re Corp. .......................................... 2,371 502,652
General Signal Corp. ...................................... 1,520 64,125
Genuine Parts Co........................................... 5,439 184,586
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Georgia-Pacific (Timber Group)............................. 2,763 $ 167,852
Giant Food, Inc. .......................................... 1,812 61,041
Gillette Co. .............................................. 16,907 1,698,096
Golden West Financial Corp. ............................... 1,713 167,552
Goodrich (B.F.) Co. ....................................... 1,632 67,626
Goodyear Tire & Rubber Co. ................................ 4,711 299,737
GPU Inc. .................................................. 3,647 153,629
Grainger (W.W.), Inc. ..................................... 1,502 145,975
Great Atl. & Pac. Tea Co................................... 1,155 34,289
Great Lakes Chemical Corp.................................. 1,808 81,134
Green Tree Financial Corp.................................. 4,103 107,447
GTE Corp................................................... 28,879 1,508,927
Guidant Corp............................................... 4,476 278,631
Halliburton Co. ........................................... 7,919 411,293
Harcourt General, Inc...................................... 2,137 117,000
Harland (John H.) Co. ..................................... 935 19,635
Harnischfeger Industries, Inc.............................. 1,492 52,686
Harrah's Entertainment, Inc................................ 3,049 57,549
Harris Corp. .............................................. 2,406 110,375
Hartford Financial Svs Grp, Inc ........................... 3,563 333,363
Hasbro, Inc. .............................................. 3,835 120,802
HBO & Co. ................................................. 5,986 287,328
HealthSouth Corp. ......................................... 11,899 330,197
Heinz (H.J.) Co. .......................................... 11,154 566,762
Helmerich & Payne, Inc..................................... 754 51,177
Hercules, Inc. ............................................ 2,920 146,182
Hershey Foods Corp......................................... 4,315 267,260
Hewlett-Packard Co. ....................................... 31,416 1,963,500
Hilton Hotels Corp. ....................................... 7,552 224,672
Home Depot, Inc............................................ 22,049 1,298,134
Homestake Mining Co. ...................................... 4,432 39,334
Honeywell, Inc. ........................................... 3,851 263,793
Household International, Inc. ............................. 3,226 411,516
Houston Industries, Inc.................................... 8,616 229,939
Humana, Inc. .............................................. 4,944 102,588
Huntington Bancshares, Inc................................. 5,773 207,828
Ikon Office Solutions...................................... 4,012 112,837
Illinois Tool Works, Inc................................... 7,533 452,921
Inco Ltd. ................................................. 5,043 85,731
Ingersoll Rand Co.......................................... 5,011 202,945
Inland Steel, Inc. ........................................ 1,474 25,242
Intel Corp................................................. 49,451 3,473,932
International Paper Co. ................................... 9,134 393,903
Interpublic Group of Cos., Inc. ........................... 3,762 187,394
Intl. Business Machines Corp. ............................. 29,386 3,072,673
Intl. Flavors & Fragrances................................. 3,301 170,001
ITT Corp. ................................................. 3,517 291,471
ITT Industries, Inc........................................ 3,577 112,228
Jefferson-Pilot Corp. ..................................... 2,138 166,496
Johnson & Johnson.......................................... 40,651 2,677,884
Johnson Controls, Inc...................................... 2,530 120,807
Jostens, Inc............................................... 1,293 27,283
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
Kaufman & Broad Home Corp. ................................ 1,173 $ 26,319
Kellogg Co................................................. 12,465 618,575
Kerr-McGee Corp. .......................................... 1,440 91,170
KeyCorp.................................................... 6,561 464,600
Kimberly Clark Corp........................................ 16,546 815,924
King World Productions, Inc. .............................. 1,110 64,102
KLA Tencor Corporation..................................... 2,528 97,644
Kmart Corp................................................. 14,705 170,026
Knight-Ridder, Inc......................................... 2,552 132,704
Kroger Corp. .............................................. 7,683 283,790
Laidlaw, Inc. ............................................. 9,927 135,255
Lilly (Eli) & Co........................................... 33,531 2,334,595
Limited (The), Inc. ....................................... 8,201 209,125
Lincoln National Corp. .................................... 3,079 240,546
Liz Claiborne, Inc. ....................................... 2,020 84,461
Lockheed Martin Corp. ..................................... 5,860 577,210
Loews Corp. ............................................... 3,473 368,572
Longs Drug Stores, Inc..................................... 1,184 38,036
Louisiana-Pacific Corp. ................................... 3,301 62,719
Lowe's Companies, Inc...................................... 5,251 250,407
LSI Logic Corp. ........................................... 4,287 84,668
Lucent Technologies, Inc. ................................. 19,381 1,548,057
Mallinckrodt, Inc. ........................................ 2,216 84,208
Manor Care, Inc............................................ 1,922 67,270
Marriott International, Inc................................ 3,843 266,127
Marsh & McLennan Cos., Inc. ............................... 5,089 379,448
Masco Corp. ............................................... 4,982 253,459
Mattel, Inc................................................ 8,772 326,757
May Department Stores Co. ................................. 7,024 370,077
Maytag Corp. .............................................. 2,871 107,124
MBIA Inc................................................... 2,696 180,126
MBNA Corp. ................................................ 15,137 413,429
McDermott International Inc. .............................. 1,677 61,420
McDonald's Corp. .......................................... 20,780 992,245
McGraw-Hill Cos., Inc. .................................... 2,987 221,038
MCI Communications Corp. .................................. 21,053 901,331
Mead Corp. ................................................ 3,118 87,304
Medtronic, Inc. ........................................... 14,124 738,861
Mellon Bank Corp........................................... 7,695 466,509
Mercantile Stores, Inc. ................................... 1,110 67,571
Merck & Co., Inc........................................... 36,220 3,848,375
Meredith Corp. ............................................ 1,617 57,706
Merrill Lynch & Co., Inc. ................................. 10,008 729,958
MGIC Investment Corp. ..................................... 3,447 229,225
Micron Technology, Inc. ................................... 6,363 165,438
Microsoft Corp............................................. 36,475 4,714,393
Millipore Corp. ........................................... 1,315 44,627
Minnesota Mining & Mfg. Co. ............................... 12,353 1,013,718
Mirage Resorts, Inc........................................ 5,401 122,872
Mobil Corp................................................. 23,736 1,713,442
Monsanto Co. .............................................. 17,924 752,808
Moore Corp., Ltd. ......................................... 2,680 40,535
Morgan (J.P.) & Co., Inc. ................................. 5,370 606,138
Morgan St Dean Witter Discover ............................ 17,907 1,058,751
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Morton International, Inc.................................. 4,021 $ 138,221
Motorola, Inc.............................................. 17,980 1,025,983
NACCO Industries, Inc. Cl A................................ 246 26,368
Nalco Chemical Co.......................................... 2,018 79,837
National City Corp......................................... 6,500 427,375
National Semiconductor Corp. .............................. 4,877 126,497
National Service Industries................................ 1,362 67,504
NationsBank Corp........................................... 21,503 1,307,651
Navistar International Corp. .............................. 2,205 54,711
New York Times Co. Cl A.................................... 2,896 191,498
Newell Co.................................................. 4,805 204,212
Newmont Mining Corp........................................ 4,720 138,650
NextLevel Systems, Inc..................................... 4,449 79,525
Niagara Mohawk Power Corp. ................................ 4,362 45,801
Nicor, Inc................................................. 1,467 61,889
Nike, Inc. Cl B............................................ 8,720 342,260
Nordstrom, Inc............................................. 2,332 140,794
Norfolk Southern Corp...................................... 11,385 350,800
Northern States Power Co. ................................. 2,229 129,839
Northern Telecom, Ltd...................................... 7,918 704,702
Northrop Grumman Corp...................................... 2,014 231,610
Norwest Corp............................................... 22,831 881,847
Novell, Inc................................................ 10,543 79,072
Nucor Corp................................................. 2,654 128,221
Occidental Petroleum Corp. ................................ 10,240 300,160
Omnicom Group, Inc. ....................................... 4,894 207,383
Oneok, Inc. ............................................... 937 37,831
Oracle Corp. .............................................. 29,594 660,316
Oryx Energy Co. ........................................... 3,184 81,192
Owens Corning.............................................. 1,611 54,975
Owens Illinois............................................. 4,238 160,779
Paccar, Inc. .............................................. 2,350 123,375
Pacific Enterprises........................................ 2,516 94,664
PacifiCorp................................................. 8,945 244,310
Pall Corp. ................................................ 3,843 79,502
Parametric Technology Co................................... 3,847 182,251
Parker Hannifin Corp. ..................................... 3,373 154,736
Peco Energy Co............................................. 6,721 162,984
Penney (J.C.) Co., Inc..................................... 7,517 453,369
Pennzoil Co. .............................................. 1,559 104,160
Peoples Energy Corp........................................ 1,059 41,698
Pep Boys-Manny, Moe & Jack................................. 1,909 45,577
Pepsico, Inc. ............................................. 45,857 1,670,914
Perkin-Elmer Corp. ........................................ 1,323 94,015
Pfizer, Inc................................................ 39,040 2,910,920
PG & E Corp................................................ 13,242 403,053
Pharmacia & Upjohn, Inc.................................... 15,334 561,607
Phelps Dodge Corp.......................................... 1,867 113,546
Phillip Morris Cos., Inc. ................................. 73,180 3,315,968
Phillips Petroleum Co...................................... 7,957 386,909
Pioneer Hi-Bred Intl., Inc................................. 1,988 213,213
Pitney Bowes, Inc.......................................... 4,358 391,947
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
Placer Dome, Inc........................................... 7,234 $ 91,781
PNC Bank Corp.............................................. 9,272 529,083
Polaroid Corp.............................................. 1,376 66,994
Potlatch Corp. ............................................ 873 37,539
PP&L Resources, Inc........................................ 4,987 119,376
PPG Industries, Inc. ...................................... 5,415 309,331
Praxair, Inc............................................... 4,772 214,740
Proctor & Gamble Co. ...................................... 40,625 3,242,382
Progressive Corp. of Ohio.................................. 2,177 260,967
Providian Financial Corp. ................................. 2,832 127,971
Public Svc. Enterprise Group............................... 7,006 222,002
Pulte Corp................................................. 639 26,718
Quaker Oats Co. ........................................... 4,149 218,859
Ralston Purina Co. ........................................ 3,218 299,072
Raychem Corp. ............................................. 2,433 104,771
Raytheon Co................................................ 10,238 517,019
Raytheon Co................................................ 1,404 69,336
Reebok International Ltd................................... 1,699 48,952
Republic New York Corp..................................... 1,656 189,094
Reynold's Metals Co........................................ 2,227 133,620
Rite-Aid Corp.............................................. 3,713 217,906
Rockwell Intl., Corp. ..................................... 6,307 329,540
Rohm & Haas Co............................................. 1,860 178,095
Rowan Cos., Inc............................................ 2,613 79,696
Royal Dutch Petro Co.--NY Shr.............................. 64,763 3,509,345
Rubbermaid, Inc............................................ 4,528 113,200
Russell Corp............................................... 1,101 29,245
Ryder System, Inc. ........................................ 2,348 76,897
Safeco Corp. .............................................. 4,266 207,967
Safety-Kleen Corp.......................................... 1,760 48,290
Sara Lee Corp. ............................................ 14,507 816,925
SBC Communications, Inc. .................................. 27,706 2,029,464
Schering-Plough Corp....................................... 22,128 1,374,702
Schlumberger, Ltd.......................................... 14,952 1,203,636
Scientific-Atlanta, Inc. .................................. 2,342 39,228
Seagate Technology, Inc.................................... 7,386 142,180
Seagram, Ltd. ............................................. 10,774 348,134
Sears Roebuck & Co......................................... 11,828 535,217
Service Corp. International................................ 7,598 280,651
Shared Medical Systems Corp. .............................. 754 49,764
Sherwin-Williams Co. ...................................... 5,214 144,688
Sigma-Aldrich Corp......................................... 3,028 120,363
Silicon Graphics, Inc...................................... 5,659 70,383
Snap-On, Inc. ............................................. 1,848 80,619
Sonat, Inc. ............................................... 2,590 118,492
Southern Co. .............................................. 20,860 539,752
Southwest Airlines Co...................................... 6,615 162,894
Springs Industries, Inc. Cl A.............................. 609 31,668
Sprint Corp................................................ 13,000 762,125
St. Jude Medical, Inc...................................... 2,773 84,576
St. Paul Companies (The)................................... 2,533 207,864
Stanley Works.............................................. 2,688 126,840
State Street Corp.......................................... 4,850 282,209
Stone Container Corp. ..................................... 3,000 31,312
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
INDEXED ASSETS (CONT'D):
Sun America, Inc........................................... 5,891 $ 251,840
Sun Co., Inc............................................... 2,192 92,201
Sun Microsystems, Inc...................................... 11,324 451,544
Suntrust Banks, Inc. ...................................... 6,374 454,944
Supervalu, Inc. ........................................... 1,830 76,631
Synovus Financial Corp. ................................... 5,283 173,018
Sysco Corp................................................. 5,170 235,558
Tandy Corp................................................. 3,200 123,400
Tektronix, Inc............................................. 1,513 60,047
Tele-Communications Inc--Cl A.............................. 15,294 427,276
Tellabs, Inc............................................... 5,467 289,067
Temple-Inland, Inc. ....................................... 1,720 89,977
Tenet Healthcare Corp. .................................... 9,146 302,961
Tenneco, Inc............................................... 5,142 203,109
Texaco, Inc................................................ 16,566 900,776
Texas Instruments, Inc. ................................... 11,796 530,820
Texas Utilities Co. ....................................... 7,450 309,640
Textron, Inc. ............................................. 4,983 311,437
Thermo Electron Corp....................................... 4,537 201,896
Thomas & Betts Corp........................................ 1,660 78,435
Time Warner, Inc........................................... 16,908 1,048,296
Times Mirror Co. Cl A...................................... 2,893 177,919
Timken Co.................................................. 1,901 65,346
TJX Cos., Inc.............................................. 4,931 169,503
Torchmark Corp............................................. 4,180 175,821
Toys R Us, Inc............................................. 8,616 270,865
Transamerica Corp.......................................... 1,911 203,521
Travelers Group, Inc....................................... 34,661 1,867,361
Tribune Co................................................. 3,707 230,760
Tricon Global Restaurants.................................. 4,623 134,355
TRW, Inc................................................... 3,722 198,661
Tupperware Corp............................................ 1,850 51,568
Tyco International Ltd..................................... 16,094 725,235
U.S Bancorp................................................ 7,391 827,330
U.S. Surgical Corp......................................... 2,216 64,956
U.S. West Communications Group............................. 14,604 659,005
U.S. West Communications Group............................. 18,315 528,845
Unicom Corp................................................ 6,532 200,859
Unilever N.V............................................... 19,335 1,207,229
Union Camp Corp............................................ 2,094 112,421
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
Union Carbide Corp......................................... 3,752 $ 161,101
Union Electric Co.......................................... 3,084 133,383
Union Pacific Corp......................................... 7,462 465,908
Union Pacific Resources Grp................................ 7,665 185,876
Unisys Corp................................................ 5,281 73,273
United Healthcare Corp..................................... 5,665 281,479
United Technologies Corp................................... 7,042 512,745
Unocal Corp................................................ 7,460 289,541
UNUM Corp.................................................. 4,214 229,136
US Airways Group Inc....................................... 2,741 171,312
USF&G Corp................................................. 3,350 73,909
UST, Inc................................................... 5,552 205,077
USX-Marathon Group......................................... 8,700 293,625
USX-U.S. Steel Group, Inc.................................. 2,589 80,906
V F Corp................................................... 3,693 169,647
Viacom, Inc................................................ 10,658 441,640
W.R. Grace & Co............................................ 2,244 180,501
Wachovia Corp.............................................. 6,182 501,514
Wal-Mart Stores, Inc....................................... 68,115 2,686,285
Walgreen Co................................................ 14,868 466,483
Warner-Lambert Co.......................................... 8,196 1,016,304
Washington Mutual, Inc..................................... 7,778 496,333
Waste Management Inc....................................... 13,695 376,612
Wells Fargo & Co........................................... 2,621 889,665
Wendy's International, Inc................................. 3,978 95,720
Western Atlas, Inc......................................... 1,629 120,546
Westvaco Corp.............................................. 3,079 96,796
Weyerhaeuser Co............................................ 6,022 295,454
Whirlpool Corp............................................. 2,252 123,860
Whitman Corp............................................... 3,067 79,933
Willamette Industries, Inc................................. 3,355 107,989
Williams Cos., Inc......................................... 9,602 272,456
Winn-Dixie Stores, Inc..................................... 4,496 196,419
Woolworth Corp............................................. 4,075 83,028
WorldCom, Inc.............................................. 27,244 824,131
Worthington Industries, Inc................................ 2,921 48,196
Wrigley (Wm.) Jr. Co....................................... 3,510 279,264
Xerox Corp................................................. 9,820 724,838
------------
TOTAL INDEXED ASSETS--
COMMON STOCKS
(Cost: $177,912,860) 96.4%....................................... 228,230,697
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES
U.S. Government (0.9%)
U.S. Treasury Bill..................... 5.00% 03/05/98 $ 100,000 $ 99,075
U.S. Treasury Bill..................... 5.19 05/28/98 50,000 48,923
U.S. Treasury Bill..................... 5.23 01/22/98 1,000,000 996,927
U.S. Treasury Bill..................... 5.18 01/22/98 1,000,000 996,953
------------
2,141,878
------------
Commercial Paper (2.7%)
Merrill Lynch.......................... 5.85 01/06/98 1,000,000 999,185
Disney (Walt) Enterprises Inc.......... 6.00 01/05/98 850,000 849,432
International Lease Fin Corp........... 6.50 01/02/98 4,427,000 4,426,201
------------
6,274,818
------------
TOTAL -- SHORT-TERM DEBT SECURITIES
(Cost: $8,416,750) 3.6%......................................... 8,416,696
------------
TOTAL INVESTMENTS
(Cost: $186,329,610) 100%....................................... $236,647,393
============
</TABLE>
- -------
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1997:
<TABLE>
<CAPTION>
UNDERLYING FACE UNREALIZED
EXPIRATION DATE AMOUNT AT VALUE (LOSS)
--------------- --------------- ----------
<S> <C> <C> <C>
PURCHASED
33 S&P 500 Stock Index Futures Con-
tracts............................. March 1998 $8,077,575 $(1,950)
========== =======
</TABLE>
The face value of futures purchased and outstanding as percentage of total
investment in securities: 3.4%.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
----- -------- ----------- ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government (0.1%)
U.S. Treasury Bond................... 6.75% 08/15/26 $ 500,000 $ 550,470
------------
Agencies/Other Governments (56.0%)
City of New York..................... 10.00 08/01/05 2,000,000 2,263,600
City of New York..................... 9.50 06/01/09 5,000,000 5,510,000
Connecticut Housing Fin. Auth. ...... 7.63 05/15/21 2,500,000 2,617,750
FNMA................................. 0.00 07/13/17 200,000,00 43,812,011
Federal Home Loan Bank............... 0.00 07/14/17 25,000,000 5,601,500
Federal Home Loan Bank............... 0.00 07/02/12 90,000,000 29,151,900
Federal Home Loan Bank............... 0.00 07/07/22 50,000,000 7,617,000
Federal Home Loan Bank............... 0.00 08/14/07 10,000,000 5,178,100
Federal Home Loan Bank............... 0.00 08/18/17 50,000,000 10,812,500
Federal Home Loan Bank............... 0.00 07/07/17 125,000,00 28,027,500
Federal Home Loan Bank............... 0.00 06/26/17 50,000,000 11,265,500
Federal Home Loan Mtge. Corp. ....... 0.00 08/26/22 250,000,00 36,250,000
Federal Home Loan Mtge. Corp. ....... 7.50 04/01/07 416,726 420,722
FHLMC................................ 8.50 02/15/21 2,096,737 2,150,455
FHLMC................................ 7.00 12/15/14 1,920,000 1,936,185
FHLMC................................ 7.20 06/15/18 500,000 506,090
FHLMC................................ 7.00 08/15/19 500,000 505,000
FHLMC................................ 7.25 02/15/19 81,599 81,420
FHLMC................................ 7.00 09/15/16 3,097,440 3,119,679
FHLMC................................ 8.00 07/15/06 760,231 793,248
FHLMC................................ 7.00 10/15/06 1,311,499 1,321,741
FHLMC................................ 6.75 05/15/18 500,000 502,030
FHLMC ............................... 7.75 07/15/05 322,292 326,520
FHLMC ............................... 6.38 11/15/06 1,100,000 1,095,182
FNMA................................. 7.50 04/25/20 570,453 570,983
FNMA................................. 7.00 08/25/20 293,108 294,112
FNMA................................. 8.95 09/25/19 274,298 277,211
FNMA................................. 7.50 01/25/19 154,743 154,452
FNMA................................. 9.30 05/25/19 312,032 321,976
FNMA................................. 8.15 08/25/05 725,395 731,285
FNMA................................. 7.00 05/25/20 813,164 816,717
FNMA................................. 7.00 09/25/05 1,000,000 1,006,870
FNMA................................. 7.95 11/25/19 310,998 312,064
FHLMC................................ 7.50 07/15/20 538,290 547,036
Pulaski County Arkansas PFB.......... 7.50 11/01/07 300,042 323,414
Republic of Iceland.................. 6.13 02/01/04 5,000,000 4,990,650
Suffolk County, New York............. 5.80 11/01/04 4,000,000 3,911,560
Suffolk County, New York............. 5.88 11/01/05 4,000,000 3,915,040
Tennessee Valley Authority........... 7.85 06/15/44 10,000,000 10,718,800
------------
229,757,792
------------
Basic Materials (2.6%)
Fletcher Challenge Ltd. ............. 9.00 09/15/99 2,000,000 2,089,100
Inco Ltd. ........................... 9.60 06/15/22 7,500,000 8,585,025
------------
10,674,125
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
----- -------- ----------- ------------
<S> <C> <C> <C> <C>
Consumer, Cyclical (7.3%)
Centex Corp........................... 7.38% 06/01/05 $ 5,000,000 $ 5,151,850
Centex Corp........................... 8.75 03/01/07 2,000,000 2,212,800
Fruit of the Loom, Inc................ 7.38 11/15/23 1,250,000 1,187,675
Fruit of the Loom, Inc................ 7.00 03/15/11 2,500,000 2,397,350
Fruit of the Loom, Inc................ 7.88 10/15/99 1,000,000 1,022,420
Gannett, Inc.......................... 5.85 05/01/00 3,500,000 3,484,810
Shopko Stores, Inc.................... 9.00 11/15/04 5,000,000 5,590,450
V F Corp.............................. 9.25 05/01/22 1,000,000 1,112,430
Valassis Communication, Inc........... 9.55 12/01/03 5,000,000 5,618,000
Woolworth Corp........................ 7.00 10/15/02 2,000,000 2,039,980
------------
29,817,765
------------
Consumer, Non-Cyclical (3.8%)
Ralston Purina Co. ................... 8.63 02/15/22 7,500,000 8,902,650
Rhone-Poulenc S A..................... 7.75 01/15/02 3,000,000 3,139,200
Whitman Corp. ........................ 7.63 06/15/15 3,500,000 3,737,895
------------
15,779,745
------------
Energy (6.3%)
Southern Union Co. ................... 7.60 02/01/24 10,000,000 10,435,300
Tosco Corp............................ 8.25 05/15/03 5,000,000 5,391,450
Williams Cos., Inc.................... 6.50 11/15/02 10,000,000 10,044,500
------------
25,871,250
------------
Financial (13.6%)
Bear Stearns Cos., Inc................ 6.63 10/01/04 2,000,000 2,006,480
Berkley (W.R.) Corp................... 8.70 01/01/22 5,000,000 5,814,850
Citicorp Mortgage Sec. Inc............ 6.25 03/25/24 766,280 763,406
Fairfax Financial Holdings............ 8.25 10/01/15 2,500,000 2,753,200
Progressive Corp. of Ohio............. 10.00 12/15/00 1,500,000 1,647,000
Prudential Home Mtge. Securities...... 7.75 10/25/24 400,000 406,624
Prudential Home Mtge. Secs Co......... 6.85 10/25/23 344,610 345,040
Prudential Home Mtge. Secs Co......... 7.00 06/25/23 3,777,567 3,779,909
Rank Group Financial.................. 6.75 11/30/04 5,000,000 5,005,250
Residential Funding Mtge. Sec I....... 7.25 02/25/26 2,310,632 2,320,560
Rodamco NV............................ 7.75 05/15/15 5,000,000 5,500,200
Rodamco NV............................ 7.30 05/15/05 5,000,000 5,202,750
Roosevelt Fed Svgs & Ln Assn.......... 10.13 04/15/18 3,000,000 3,030,570
Ryland Acceptance Corp................ 7.95 08/20/19 859,049 865,217
Sun America, Inc...................... 9.95 02/01/12 5,000,000 6,335,750
Sun America, Inc...................... 9.00 01/15/99 4,000,000 4,110,920
Vesta Insurance Group, Inc............ 8.75 07/15/25 5,000,000 5,871,000
------------
55,758,726
------------
Industrial (1.4%)
Clark Equipment Co. .................. 8.35 05/15/23 5,000,000 5,844,550
------------
Utilities (2.8%)
New Orleans Public Service............ 8.00 03/01/06 4,000,000 4,055,320
Pacific Gas & Electric Co............. 8.75 01/01/01 2,000,000 2,135,500
Philadelphia Electric Co. ............ 7.13 08/15/23 5,000,000 5,087,800
------------
11,278,620
------------
TOTAL LONG-TERM DEBT SECURITIES
(Cost: $371,334,605) 93.9%...................................... 385,333,054
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (6.1%)
Archer Daniels Midland Co.............. 6.20% 01/06/98 $6,543,000 $ 6,537,364
Banc One Corp.......................... 6.50 01/02/98 4,910,000 4,909,113
Consolidated Natural Gas............... 6.20 01/07/98 7,000,000 6,992,763
Disney (Walt) Enterprises Inc.......... 6.05 01/06/98 4,760,000 4,755,994
General Electric Capital Corp.......... 5.83 01/09/98 2,000,000 1,997,400
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $25,192,634) 6.1%....................................... 25,192,634
------------
TOTAL INVESTMENTS
(Cost: $396,527,239) 100.0%.................................... $410,525,688
============
</TABLE>
- -------
Abbreviations: FHLMC=Federal Home Loan Mortgage Corporation
FNMA=Federal National Mortgage Association
PFB=Prison Finance Board
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT:
U.S. Government (0.7%)
GNMA....................................... 9.50% 12/20/03 $ 93,365 $ 97,412
-----------
Agencies/Other Governments (80.9%)
FHLMC...................................... 7.00 08/15/19 500,000 505,000
FHLMC...................................... 7.75 12/01/02 354,794 360,329
FHLMC...................................... 8.00 04/01/02 337,379 340,918
FHLMC...................................... 7.75 08/15/15 99,286 99,565
FHLMC...................................... 7.25 02/15/19 20,577 20,532
FHLMC...................................... 7.00 03/15/08 596,207 604,774
FHLMC...................................... 6.00 12/15/17 400,000 399,000
FHLMC...................................... 6.00 05/15/22 223,421 220,907
FHLMC...................................... 7.00 11/15/20 443,000 444,661
FHLMC...................................... 7.20 06/15/18 500,000 506,090
FHLMC...................................... 8.00 11/15/05 347,235 350,922
FHLMC ..................................... 8.75 10/15/20 250,000 253,670
FHLMC ..................................... 7.25 12/15/05 185,857 187,251
FHLMC ..................................... 7.95 12/15/20 164,000 168,510
FNMA....................................... 7.00 01/25/21 98,067 98,158
FNMA....................................... 8.95 09/25/19 100,060 101,122
FNMA....................................... 7.50 01/25/19 76,815 76,670
FNMA....................................... 7.00 12/25/19 84,870 84,736
FNMA....................................... 7.95 11/25/19 99,109 99,449
FNMA....................................... 7.50 10/25/19 55,613 55,699
FNMA....................................... 7.00 01/15/18 238,459 239,276
FNMA....................................... 7.00 05/25/16 51,867 51,720
FNMA....................................... 7.75 10/25/18 281,301 283,146
FNMA....................................... 7.00 08/25/20 203,547 204,245
FNMA....................................... 0.00 12/01/01 319,168 290,929
FNMA....................................... 7.00 09/25/05 700,000 704,809
FNMA....................................... 8.00 12/25/05 303,748 307,544
FNMA....................................... 7.00 11/25/05 400,000 405,872
FNMA....................................... 5.00 04/25/20 550,000 534,358
FNMA....................................... 7.00 01/25/02 500,000 504,215
FNMA....................................... 8.25 09/25/05 298,936 304,445
FNMA....................................... 7.25 12/25/05 399,073 401,316
FNMA....................................... 8.25 10/01/05 194,408 197,450
FNMA ...................................... 6.70 01/18/19 600,000 605,639
FNMA ...................................... 5.50 04/25/19 500,000 493,906
FHLMC...................................... 5.00 07/15/05 331,738 327,796
FHLMC...................................... 8.00 12/15/18 383,111 386,222
FHLMC...................................... 7.50 12/15/19 330,000 335,464
Pulaski County Arkansas PFB................ 7.50 11/01/07 186,693 201,235
-----------
11,757,550
-----------
Financial (11.5%)
Citicorp Mortgage Securities Inc. ......... 6.25 03/25/24 311,017 309,850
FBC Mortgage Securities Trust.............. 8.30 08/20/09 146,041 148,732
GE Capital Mtge. Services, Inc............. 6.00 09/25/08 224,099 222,978
Norwest Asset Securities Corp.............. 7.25 11/25/26 191,682 192,992
Prudential Home Mtge. Securities Co........ 6.75 08/25/08 500,000 500,625
Residential Funding Mtge. Securities....... 7.25 02/25/26 292,897 294,155
-----------
1,669,332
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT (CONT'D):
Consumer, Cyclical (3.5%)
Woolworth Corp............................ 7.00% 06/01/00 $500,000 $ 506,380
-----------
Utilities (0.7%)
Big Rivers Electric Corp.................. 9.50 02/15/17 100,000 105,260
-----------
TOTAL INTERMEDIATE-TERM DEBT SECURITIES
(Cost $14,078,078) 97.3%......................................... 14,135,934
-----------
SHORT-TERM DEBT SECURITIES:
Commercial Paper (2.7%)
Disney (Walt) Enterprises Inc............. 6.00% 01/05/98 $400,000 399,733
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $399,733) 2.7%............................................ 399,733
-----------
TOTAL INVESTMENTS
(Cost: $14,477,811) 100.0%....................................... $14,535,667
===========
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
GNMA = Government National Mortgage Association
PFB = Prison Finance Board
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT :
U.S. Government (30.1%)
U.S. Treasury Note....................... 5.88% 02/15/04 $1,500,000 $ 1,513,125
U.S. Treasury Note....................... 6.38 09/30/01 2,500,000 2,551,554
U.S. Treasury Note....................... 6.63 04/30/02 250,000 258,202
-----------
4,322,881
-----------
Agencies/Other Governments (26.3%)
City of New York......................... 9.50 06/01/09 350,000 385,700
FHLMC.................................... 8.00 07/15/06 380,116 396,624
FHLMC ................................... 8.00 04/15/03 447,231 464,561
FHLMC ................................... 6.38 11/15/06 590,000 587,415
FNMA..................................... 7.00 04/25/07 600,000 610,122
FNMA..................................... 7.00 11/25/05 100,000 100,468
FNMA..................................... 7.00 03/18/18 500,000 508,750
FNMA .................................... 6.50 11/25/05 420,477 422,709
FHLMC.................................... 7.50 12/15/19 295,000 299,885
-----------
3,776,234
-----------
Consumer, Cyclical (5.3%)
Fruit of the Loom, Inc................... 7.88 10/15/99 250,000 255,605
Woolworth Corp........................... 7.00 10/15/02 500,000 509,995
-----------
765,600
-----------
Financial (18.1%)
Bear Stearns Cos., Inc................... 9.38 06/01/01 250,000 273,087
Bear Stearns Cos., Inc................... 6.63 10/01/04 500,000 501,620
Prudential Home Mtge. Securities......... 7.75 10/25/24 300,000 304,968
Rank Group Financial..................... 6.75 11/30/04 500,000 500,525
Salomon Smith Barney Hldgs., Inc. ....... 6.50 10/15/02 500,000 501,530
Sun America, Inc......................... 9.00 01/15/99 500,000 513,865
-----------
2,595,595
-----------
Industrial (7.2%)
Airborne Freight Corp.................... 8.88 12/15/02 250,000 274,315
Comdisco, Inc............................ 7.75 09/01/99 250,000 255,810
Williams Cos., Inc....................... 6.50 11/15/02 500,000 502,225
-----------
1,032,350
-----------
Utilities (12.0%)
Baltimore Gas & Electric Co. ............ 6.13 07/01/03 250,000 249,457
Big Rivers Electric Corp................. 9.50 02/15/17 200,000 210,520
Commonwealth Edison Co................... 7.50 01/01/01 500,000 503,090
Connecticut Light & Power Co. ........... 5.50 02/01/99 500,000 492,935
Public Svc. Electric & Gas Co............ 7.88 11/01/01 250,000 263,647
-----------
1,719,649
-----------
TOTAL INTERMEDIATE-TERM DEBT SECURITIES
(Cost $14,051,574) 99.0%.......................................... 14,212,309
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (1.0%)
Disney (Walt) Enterprises Inc........... 6.10% 01/05/98 $ 150,000 $ 149,898
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $149,898) 1.0%............................................ 149,898
-----------
TOTAL INVESTMENTS
(Cost: $14,201,472) 100.0%....................................... $14,362,207
===========
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (2.0%)
Aluminum Co. of America.................................... 12,200 $ 858,575
Dow Chemical Co. .......................................... 12,200 1,238,300
Du Pont (E.I.) De Nemours.................................. 24,200 1,453,512
Eastman Chemical Co. ...................................... 12,400 738,575
Hercules, Inc. ............................................ 16,700 836,043
Praxair, Inc. ............................................. 18,300 823,500
-----------
5,948,505
-----------
Consumer, Cyclical (8.1%)
Armstrong World Inds., Inc. ............................... 10,000 747,500
Centex Corp. .............................................. 12,000 755,250
Chrysler Corp. ............................................ 34,800 1,224,525
Costco Co.*................................................ 25,000 1,115,625
Dillard Inc. .............................................. 18,500 652,125
Disney (Walt) Co. ......................................... 12,800 1,268,000
Dow Jones & Co., Inc. ..................................... 18,200 977,112
Federated Department Stores*............................... 23,100 994,743
Flowers Industries, Inc. .................................. 32,600 670,337
General Electric Co. ...................................... 62,200 4,563,925
General Motors Corp. ...................................... 27,000 1,636,875
Limited (The), Inc. ....................................... 33,200 846,600
Mattel, Inc. .............................................. 23,500 875,375
Moore Corp., Ltd. ......................................... 45,300 685,162
Nike, Inc. Cl B............................................ 21,100 828,175
Rite-Aid Corp. ............................................ 23,100 1,355,681
Time Warner, Inc. ......................................... 33,400 2,070,800
Timken Co. ................................................ 23,500 807,812
V F Corp. ................................................. 20,000 918,750
Wal-Mart Stores, Inc. ..................................... 46,000 1,814,125
-----------
24,808,497
-----------
Consumer, Non-Cyclical (12.0%)
Abbott Laboratories........................................ 26,600 1,743,962
American Home Products Corp. .............................. 13,700 1,048,050
Anheuser Busch Cos., Inc. ................................. 35,700 1,570,800
Bard (C.R.), Inc. ......................................... 20,600 645,037
Bristol-Myers Squibb Co. .................................. 20,900 1,977,662
Coca-Cola Co. ............................................. 50,300 3,351,258
Heinz (H.J.) Co. .......................................... 33,300 1,692,056
Hormel Foods Corp. ........................................ 37,700 1,234,675
Intl. Flavors & Fragrances................................. 16,300 839,450
Johnson & Johnson.......................................... 37,700 2,483,487
JP Foodservice, Inc.*...................................... 46,500 1,717,593
Lilly (Eli) & Co. ......................................... 34,800 2,422,950
Medtronic, Inc. ........................................... 29,600 1,548,450
Merck & Co., Inc. ......................................... 30,500 3,240,625
Pepsico, Inc. ............................................. 67,300 2,452,243
Pfizer, Inc. .............................................. 39,500 2,945,218
Proctor & Gamble Co. ...................................... 28,800 2,298,600
Safeway, Inc.*............................................. 22,500 1,423,125
Sara Lee Corp. ............................................ 33,600 1,892,100
-----------
36,527,341
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C>
Energy (4.7%)
Baker Hughes, Inc. ......................................... 19,300 841,962
Chevron Corp. .............................................. 22,100 1,701,700
Enron Corp. ................................................ 32,400 1,346,625
Exxon Corp. ................................................ 50,400 3,083,850
Halliburton Co. ............................................ 19,600 1,017,975
Mobil Corp. ................................................ 26,000 1,876,875
Phillips Petroleum Co. ..................................... 20,400 991,950
Precision Drilling Corp*.................................... 22,000 536,250
Royal Dutch Petro Co.--NY Shr............................... 57,700 3,126,618
----------
14,523,805
----------
Financial (9.2%)
American Express Co. ....................................... 25,100 2,240,175
American General Corp. ..................................... 29,000 1,567,812
American Int'l. Group, Inc. ................................ 25,800 2,805,750
BankAmerica Corp. .......................................... 32,700 2,387,100
Barnett Banks, Inc. ........................................ 25,500 1,832,812
CCA Prison Realty Trust..................................... 31,000 1,383,375
Chase Manhattan Corp. ...................................... 19,600 2,146,200
Citicorp.................................................... 8,900 1,125,293
Fannie Mae.................................................. 47,800 2,727,588
First Union Corp. .......................................... 36,800 1,886,000
Fleet Financial Group, Inc. ................................ 24,200 1,813,487
KeyCorp..................................................... 27,800 1,968,587
Mack-Cali Realty Corp. ..................................... 26,900 1,102,900
Star Banc Corp. ............................................ 31,200 1,790,100
Unitrin Inc. ............................................... 19,600 1,266,650
----------
28,043,829
----------
Industrial (2.6%)
Burlington Northern Santa Fe................................ 9,000 836,437
Deere & Co. ................................................ 21,400 1,247,887
First Data Corp. ........................................... 40,000 1,170,000
Foster Wheeler Corp. ....................................... 20,600 557,487
PPG Industries, Inc. ....................................... 14,400 822,600
Silicon Valley Group, Inc.*................................. 45,000 1,018,125
Stewart & Stevenson Svcs., Inc ............................. 48,000 1,224,000
Union Pacific Corp. ........................................ 17,000 1,061,437
----------
7,937,973
----------
Technology (8.2%)
3Com Corp.*................................................. 27,900 974,756
AlliedSignal, Inc. ......................................... 33,800 1,316,087
Boeing Co. ................................................. 29,700 1,453,443
Cisco Systems, Inc.*........................................ 20,700 1,154,025
Compaq Computer Corp.*...................................... 15,500 874,781
Hewlett-Packard Co. ........................................ 22,000 1,375,000
Intel Corp. ................................................ 38,400 2,697,600
Intl. Business Machines Corp. .............................. 19,200 2,007,600
Lockheed Martin Corp. ...................................... 12,100 1,191,850
Lucent Technologies, Inc. .................................. 14,000 1,118,250
Micron Technology, Inc.*.................................... 32,000 832,000
Microsoft Corp.*............................................ 7,900 1,021,075
Oracle Corp.*............................................... 53,000 1,182,562
</TABLE>
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
COMMON STOCKS (CONT'D):
Pall Corp. ............................................... 43,800 906,112
Qualcomm, Inc.*........................................... 15,500 782,750
Raytheon Co. ............................................. 1,722 85,013
Scientific-Atlanta, Inc. ................................. 58,800 984,900
Seagate Technology, Inc.*................................. 39,700 764,225
Unisys Corp.*............................................. 107,500 1,491,562
United Technologies Corp. ................................ 15,800 1,150,437
Xerox Corp. .............................................. 23,400 1,727,212
------------
25,091,240
------------
Utilities (3.6%)
Ameritech Corp. .......................................... 26,300 2,117,150
FPL Group, Inc. .......................................... 24,200 1,432,337
SBC Communications, Inc. ................................. 36,000 2,637,000
Sprint Corp. ............................................. 30,900 1,811,512
U.S. West Communications Group............................ 39,900 1,800,487
WorldCom, Inc.*........................................... 43,100 1,303,775
------------
11,102,261
------------
TOTAL COMMON STOCKS
(Cost: $153,678,950) 50.4%....................................... $153,983,451
------------
</TABLE>
- -------
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
----- -------- ------------ ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government (0.2%)
U.S. Treasury Bond.................. 6.75% 8/15/26 $ 500,000 $ 550,470
------------
Agencies/Other Governments (20.7%)
City of New York.................... 10.00 8/1/05 500,000 565,900
City of New York.................... 9.50 6/1/09 2,000,000 2,204,000
Connecticut Housing Fin. Auth. ..... 7.63 5/15/21 1,000,000 1,047,100
FNMA................................ 0.00 7/13/17 100,000,000 21,906,000
Federal Home Loan Bank.............. 0.00 8/18/17 30,000,000 6,487,500
Federal Home Loan Bank.............. 0.00 7/14/17 25,000,000 5,601,500
Federal Home Loan Bank.............. 0.00 7/2/12 15,000,000 4,858,650
Federal Home Loan Bank.............. 0.00 7/7/17 25,000,000 5,605,500
FHLMC............................... 7.00 4/15/17 1,186,892 1,195,793
FHLMC............................... 7.00 10/15/03 471,605 474,401
FHLMC............................... 6.00 7/15/18 500,000 496,560
FHLMC............................... 8.00 7/15/06 380,116 396,624
FNMA................................ 6.50 7/25/20 500,000 500,625
FNMA................................ 7.00 11/25/05 1,200,000 1,217,616
FNMA................................ 6.65 1/25/17 500,000 503,435
FNMA................................ 6.80 6/25/05 1,440,842 1,444,444
Republic of Iceland................. 6.13 2/1/04 2,500,000 2,495,325
Suffolk County, New York............ 5.88 11/1/05 750,000 734,070
Suffolk County, New York............ 5.80 11/1/04 250,000 244,472
Tennessee Valley Authority.......... 7.85 6/15/44 5,000,000 5,359,400
------------
63,338,915
------------
Basic Materials (0.9%)
Inco Ltd. .......................... 9.60 6/15/22 2,500,000 2,861,675
------------
Consumer, Cyclical (3.1%)
Centex Corp. ....................... 7.38 6/1/05 2,000,000 2,060,740
Fruit of the Loom, Inc. ............ 7.38 11/15/23 500,000 475,070
Fruit of the Loom, Inc. ............ 7.00 3/15/11 1,000,000 958,940
Fruit of the Loom, Inc. ............ 7.88 10/15/99 500,000 511,210
Gannett, Inc. ...................... 5.85 5/1/00 1,000,000 995,660
Shopko Stores, Inc. ................ 9.00 11/15/04 1,000,000 1,118,090
Valassis Communication, Inc. ....... 9.55 12/1/03 2,000,000 2,247,200
Woolworth Corp...................... 7.00 10/15/02 1,000,000 1,019,990
------------
9,386,900
------------
Consumer, Non-Cyclical (1.7%)
Ralston Purina Co. ................. 8.63 2/15/22 2,500,000 2,967,550
Rhone-Poulenc S A................... 7.75 1/15/02 1,000,000 1,046,400
Whitman Corp. ...................... 7.63 6/15/15 1,000,000 1,067,970
------------
5,081,920
------------
Energy (2.6%)
Southern Union Co. ................. 7.60 2/1/24 5,000,000 5,217,650
Tosco Corp.......................... 8.25 5/15/03 2,500,000 2,695,725
------------
7,913,375
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
----- -------- ------------ ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES (CONT'D):
Financial (5.0%)
Berkley (W.R.) Corp................. 8.70% 1/1/22 $ 1,500,000 $ 1,744,455
Fairfax Financial Holdings.......... 8.25 10/1/15 500,000 550,640
Progressive Corp. of Ohio........... 10.00 12/15/00 500,000 549,000
Prudential Home Mtge. Secs Co....... 6.75 8/25/08 900,000 901,125
Residential Funding Mtge. Sec I..... 7.25 2/25/26 1,171,588 1,176,622
Rodamco NV.......................... 7.75 5/15/15 2,000,000 2,200,080
Rodamco NV.......................... 7.30 5/15/05 2,500,000 2,601,377
Roosevelt Fed Svgs & Ln Assn........ 10.13 4/15/18 1,000,000 1,010,190
Sun America, Inc.................... 9.00 1/15/99 1,000,000 1,027,730
Sun America, Inc.................... 9.95 2/1/12 2,000,000 2,534,300
Vesta Insurance Group, Inc.......... 8.75 7/15/25 1,000,000 1,174,200
------------
15,469,719
------------
Industrial (0.9%)
Clark Equipment Co.................. 8.35 5/15/23 1,500,000 1,753,365
Williams Cos., Inc.................. 6.50 11/15/02 1,000,000 1,004,450
------------
2,757,815
------------
Utilities (1.7%)
Central Telephone Co................ 9.28 11/27/00 1,000,000 1,081,230
New Orleans Public Service.......... 8.00 3/1/06 1,000,000 1,013,830
Pacific Gas & Electric Co........... 8.75 1/1/01 1,000,000 1,067,750
PacifiCorp.......................... 8.73 2/12/98 1,000,000 1,002,560
Philadelphia Electric Co............ 7.13 8/15/23 1,000,000 1,017,560
------------
5,182,930
------------
TOTAL LONG-TERM DEBT SECURITIES
(Cost: $108,435,694) 36.8%...................................... 112,543,719
------------
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.3%)
U.S. Treasury Bill.................. 5.00 2/26/98 500,000 496,056
U.S. Treasury Bill.................. 5.06 1/8/98 500,000 499,500
------------
995,556
------------
Commercial Paper (12.5%)
Consolidated Natural Gas............ 6.20 1/7/98 7,000,000 6,992,764
Disney (Walt) Enterprises Inc....... 5.70 1/6/98 6,865,000 6,859,539
General Electric Capital Corp....... 5.83 1/9/98 725,000 724,057
General Electric Capital Corp....... 5.69 1/20/98 6,130,000 6,111,462
GTE Funding Inc..................... 5.70 2/2/98 4,055,000 4,034,451
International Lease Fin Corp........ 6.50 1/2/98 3,000,000 2,999,458
Petrofina Delaware Inc.............. 5.82 1/12/98 3,195,000 3,189,299
UBS Finance......................... 5.78 1/5/98 4,295,000 4,292,230
Xerox Credit Corp................... 5.75 1/7/98 3,070,000 3,067,047
------------
38,270,307
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $39,265,863) 12.8%....................................... 39,265,863
------------
TOTAL INVESTMENTS
(Cost: $301,380,507) 100%....................................... $305,793,033
============
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (4.9%)
Birmingham Steel Corp. ................................... 160,000 $ 2,520,000
Boise Cascade Office Prod................................. 60,000 896,250
Commonwealth Industries, Inc.............................. 75,000 1,087,500
Intermet Corp............................................. 50,000 875,000
ISPAT International Plc. Cl A............................. 45,000 973,125
Lone Star Technologies, Inc............................... 80,000 2,270,000
LTV Corp.................................................. 220,000 2,145,000
Nucor Corp................................................ 50,000 2,415,625
Schuff Steel Company...................................... 82,500 897,187
------------
14,079,687
------------
Consumer, Cyclical (22.0%)
Alliance Communications Corp.*............................ 100,000 1,275,000
Baker Hughes, Inc......................................... 115,000 5,016,875
Barbeques Galore Limited.................................. 115,000 848,125
Bob Evans Farms, Inc...................................... 149,000 3,296,625
Brookstone, Inc.*......................................... 103,500 1,293,750
Budget Group, Inc.*....................................... 55,000 1,900,937
Fairfield Communities, Inc.*.............................. 70,000 3,097,500
Friedman's, Inc. Cl A..................................... 120,000 1,635,000
General Motors Corp....................................... 33,000 2,000,625
Grupo Televisa S.A.-Spons GDR*............................ 15,000 580,312
Haggar Corp............................................... 60,000 945,000
Hannaford Brothers Co..................................... 14,800 642,875
Hasbro, Inc............................................... 40,000 1,260,000
Heilig-Meyers Co. ........................................ 155,000 1,860,000
Hollinger International, Inc.............................. 200,000 2,800,000
Home Depot, Inc........................................... 100,000 5,887,500
Home Health Corp. of America*............................. 120,000 1,245,000
Nimbus CD International, Inc.* ........................... 135,000 1,451,250
Pier 1 Imports, Inc....................................... 180,000 4,072,500
Syms Corp.*............................................... 75,000 890,625
Synthetic Industries, Inc.*............................... 65,000 1,608,750
TBC Corp.*................................................ 270,000 2,581,875
Tele-Communications-TCI Group*............................ 79,525 2,221,729
Tele-Communications TCI Ventures Group.................... 45,475 1,287,510
Todd-AO Corp.............................................. 95,000 795,625
Tower Automotive, Inc.*................................... 120,000 5,047,500
United Stationers, Inc.................................... 50,000 2,406,250
Viacom, Inc. Cl B*........................................ 60,000 2,486,250
Wackenhut Corp............................................ 75,500 1,594,937
Wolverine World Wide, Inc................................. 58,500 1,323,562
------------
63,353,487
------------
Consumer, Non-Cyclical (6.7%)
Arrow International, Inc.................................. 63,500 2,349,500
AVECOR Cardiovascular, Inc.*.............................. 175,000 1,115,625
Dominick's Supermarkets, Inc.*............................ 25,000 912,500
I-STAT Corporation*....................................... 180,000 2,846,250
Liposome Company, Inc.*................................... 166,000 767,750
Matria Healthcare, Inc.*.................................. 115,000 646,875
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Medcath, Inc.............................................. 40,000 $ 605,000
Molecular Dynamics, Inc.*................................. 236,800 3,848,000
Mylan Laboratories, Inc................................... 17,600 368,500
Orthodontic Centers of America*........................... 274,000 4,555,250
Trigon Healthcare, Inc.................................... 45,000 1,175,625
------------
19,190,875
------------
Energy (14.5%)
Abacan Resource Corp.*.................................... 940,000 1,468,750
Apache Corp............................................... 50,000 1,753,125
Barrett Resources Corp*................................... 65,000 1,966,250
Brigham Exploration Company*.............................. 90,000 1,316,250
Chieftan International, Inc.*............................. 105,700 2,246,125
Enron Oil & Gas Co. ...................................... 90,000 1,906,875
Global Industries Ltd.*................................... 40,000 680,000
Gulf Canada Resources, Ltd................................ 100,000 700,000
Marine Drilling Companies, Inc*........................... 107,000 2,220,250
Nabors Industries, Inc.*.................................. 164,500 5,171,468
New Jersey Resources Corp................................. 23,700 949,481
Oceaneering Int'l, Inc.* ................................. 140,000 2,765,000
Oryx Energy Co.*.......................................... 40,000 1,020,000
Patina Oil & Gas Corp..................................... 80,000 615,000
Pride International, Inc. ................................ 300,000 7,575,000
R & B Falcon Corp......................................... 65,000 2,279,063
Ranger Oil Ltd............................................ 215,000 1,478,125
Southwest Gas Corp........................................ 38,500 719,468
Unit Corp.*............................................... 200,000 1,925,000
USX-Marathon Group........................................ 55,000 1,856,250
Vintage Petroleum, Inc.................................... 60,000 1,140,000
------------
41,751,480
------------
Financial (6.6%)
Castle & Cooke, Inc.*..................................... 100,000 1,687,500
Delphi Financial Group, Inc.*............................. 47,420 2,133,900
Glenborough Realty Trust, Inc............................. 171,000 5,065,875
Gryphon Holdings, Inc.*................................... 97,500 1,633,125
Lexington Corporate Properties............................ 181,000 2,794,188
Summit Bancorp............................................ 110,000 5,857,500
------------
19,172,088
------------
Industrial (16.3%)
AFC Cable Systems, Inc.*.................................. 130,000 3,867,500
Anixter International, Inc.*.............................. 45,000 742,500
BWAY Corp.*............................................... 97,500 2,230,312
Celadon Group, Inc.*...................................... 37,000 499,500
Chart Industries, Inc..................................... 159,500 3,638,593
Cuno, Inc.*............................................... 57,500 876,875
Dayton Superior Corp.*.................................... 116,500 1,922,250
Dyersburg Corp............................................ 51,000 580,125
Empresas ICA Sociedad ADS................................. 85,000 1,397,187
Howmet International Inc.................................. 130,000 1,950,000
OmniQuip International, Inc.*............................. 125,000 2,492,187
Powell Industries, Inc.*.................................. 125,000 1,906,250
Sea Containers, Ltd. Cl A................................. 45,000 1,440,000
Sealed Air Corp.*......................................... 75,000 4,631,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
COMMON STOCKS (CONT'D):
Silicon Valley Group, Inc.*............................... 186,000 $ 4,208,250
Smithway Motor Xpress Corp. Cl A* 60,000 780,000
Stewart & Stevenson Svcs., Inc. .......................... 335,000 8,542,500
Strategic Distribution, Inc.*............................. 140,000 630,000
Vallen Corp.*............................................. 122,000 2,531,500
Zero Corp. ............................................... 70,000 2,073,750
------------
46,940,529
------------
Technology (20.5%)
360 Communications Co.*................................... 180,000 3,633,750
Adelphia Communications Cl A*............................. 60,000 1,110,000
Andrew Corp.*............................................. 125,000 3,000,000
ANTEC Corp. .............................................. 61,000 953,125
Boston Technology Inc.*................................... 120,000 3,015,000
Cellstar Corp. ........................................... 170,000 3,378,750
Comcast Corp. Cl A........................................ 30,000 946,875
Flowserve Corporation..................................... 57,500 1,606,406
GenCorp, Inc. ............................................ 50,000 1,250,000
Hewlett-Packard Co. ...................................... 30,000 1,875,000
Intuit, Inc.*............................................. 82,500 3,403,125
Kimball International, Inc. .............................. 180,000 3,318,750
Lunar Corporation*........................................ 100,000 2,050,000
Maxxim Medical, Inc.*..................................... 75,000 1,631,250
Meridian Diagnostics, Inc. ............................... 118,000 1,194,750
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
Molex Inc., Cl A.......................................... 31,250 $ 898,437
National Instruments Corp................................. 110,000 3,190,000
National Techteam, Inc.*.................................. 247,000 2,223,000
NextLevel Systems, Inc. .................................. 110,000 1,966,250
Raytheon Co. Cl A ........................................ 2,742 135,392
Scientific-Atlanta, Inc. ................................. 200,000 3,350,000
Symantec Corp.*........................................... 120,000 2,632,500
TCA Cable TV, Inc. ....................................... 9,000 414,000
Teltrend, Inc.*........................................... 155,000 2,654,375
UCAR Int'l., Inc.*........................................ 72,500 2,895,468
Unisys Corp.*............................................. 415,000 5,758,125
VLSI Technology, Inc.*.................................... 30,000 708,750
------------
59,193,078
------------
Utilities (3.0%)
Cincinnati Bell, Inc. .................................... 95,000 2,945,000
Citizens Utilities Co. Cl B............................... 80,800 777,700
LCI International, Inc.*.................................. 97,500 2,998,133
Nextel Communications, Inc.*.............................. 75,000 1,950,000
------------
8,670,833
------------
TOTAL COMMON STOCKS (Cost: $251,320,007) 94.5%..................... 272,352,057
------------
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT
---- -------- ----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (5.5%)
Ford Motor Credit Co................... 6.09% 01/06/98 $4,695,000 4,691,028
Consolidated Natural Gas Co............ 6.20 01/07/98 4,938,000 4,932,895
International Lease Fin Corp........... 6.50 01/02/98 6,254,000 6,252,871
------------
15,876,794
------------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $15,876,794) 5.5%........................................ 15,876,794
------------
TOTAL INVESTMENTS
(Cost: $267,196,801) 100.0%..................................... $288,228,851
============
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES
EXPIRATION EXERCISE SUBJECT
DATE PRICE TO CALL VALUE
---------- -------- ------- ---------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Andrew Corp.............................. 01/17/98 $30.00 14,400 $ (900)
Anixter International, Inc............... 01/17/98 17.50 15,000 (6,562)
Baker Hughes, Inc........................ 01/17/98 42.50 7,500 (18,750)
Baker Hughes, Inc........................ 01/17/98 45.00 7,500 (8,437)
Budget Group, Inc........................ 02/21/98 35.00 5,000 (7,812)
Grupo Televisa S.A.-Spons GDR............ 01/17/98 35.00 15,000 (60,939)
Marine Drilling Companies, Inc........... 02/21/98 30.00 10,000 (6,250)
Molecular Dynamics, Inc.................. 01/17/98 20.00 10,000 (4,375)
Molex Inc., Cl A......................... 01/17/98 36.00 6,250 (586)
Molex Inc., Cl A......................... 01/17/98 32.00 6,250 (781)
National Techteam, Inc................... 02/21/98 17.50 10,000 (20,000)
Pride International, Inc................. 01/17/98 40.00 10,000 (313)
---------
TOTAL OPTIONS WRITTEN
(Premiums Received: ($692,518))..................................... $(135,705)
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<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 --
$67,501,370
All America Fund --
$418,360,583
Equity Index Fund --
$186,329,610
Bond Fund --
$396,527,239)
(Notes 1 and 3)........ $67,501,370 $697,004,495 $236,647,393 $410,525,688
Cash.................... 688 1,333,184 16,502 1,128
Interest and dividends
receivable............. -- 745,450 300,921 3,236,656
Receivable for
securities sold........ -- 447,466 -- 15,964
----------- ------------ ------------ ------------
Total Assets............ 67,502,058 699,530,595 236,964,816 413,779,436
Payable for securities
purchased.............. -- 2,500 1,950 74,537
Other liabilities....... -- -- -- --
----------- ------------ ------------ ------------
Net Assets.............. $67,502,058 $699,528,095 $236,962,866 $413,704,899
=========== ============ ============ ============
Number of Shares
Outstanding (Note 4)... 57,364,909 258,068,880 114,031,969 289,863,800
=========== ============ ============ ============
Net Asset Values,
offering and redemption
price per share........ $1.18 $2.71 $2.08 $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 --
$14,477,811
Mid-Term Bond Fund --
$14,201,472
Composite Fund --
$301,380,507
Aggressive Equity
Fund -- $267,196,801)
(Notes 1 and 3)........ $14,535,667 $ 14,362,207 $305,793,033 $288,228,851
Cash.................... 1,010,200 54,909 24,628 --
Interest and dividends
receivable............. 87,997 229,422 1,350,734 60,847
Receivable for
securities sold........ 11,132 -- 2,157,241 671,447
----------- ------------ ------------ ------------
Total Assets............ 15,644,996 14,646,538 309,325,636 288,961,145
Payable for securities
purchased.............. 1,004,315 -- 4,549,169 1,284,682
Call options written, at
market value
(Premium received:
Aggressive Equity
Fund -- $692,518)..... -- -- -- 135,705
Other liabilities....... -- -- -- 159,914
----------- ------------ ------------ ------------
Net Assets.............. $14,640,681 $ 14,646,538 $304,776,467 $287,380,844
=========== ============ ============ ============
Number of Shares
Outstanding (Note 4)... 14,339,355 16,222,865 187,916,189 178,807,178
=========== ============ ============ ============
Net Asset Values,
offering and redemption
price per share........ $1.02 $0.90 $1.62 $1.61
===== ===== ===== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends.............. $ -- $ 9,889,801 $ 2,941,447 $ --
Interest............... 4,449,211 436,370 572,731 26,603,562
------------ -------------- -------------- --------------
Total income............ 4,449,211 10,326,171 3,514,178 26,603,562
------------ -------------- -------------- --------------
Expenses:
Investment advisory
fees (Note 2)......... 199,652 3,487,086 221,763 1,850,985
------------ -------------- -------------- --------------
Net Investment Income... 4,249,559 6,839,085 3,292,415 24,752,577
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note
1):
Net realized gain (loss)
on investments:
Net proceeds from sales
and maturities........ 959,830,399 1,311,013,612 899,123,506 1,549,413,495
Cost of securities sold
or matured............ 959,834,945 1,223,747,797 885,326,704 1,546,969,894
------------ -------------- -------------- --------------
Net realized gain
(loss)................. (4,546) 87,265,815 13,796,802 2,443,601
Net unrealized
appreciation
(depreciation) of
investments............ -- 72,872,084 29,821,618 10,731,058
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... (4,546) 160,137,899 43,618,420 13,174,659
------------ -------------- -------------- --------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ 4,245,013 $ 166,976,984 $ 46,910,835 $ 37,927,236
============ ============== ============== ==============
<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.............. $ -- $ -- $ 1,888,294 $ 1,153,850
Interest............... 994,452 934,223 10,016,920 1,560,897
------------ -------------- -------------- --------------
Total income............ 994,452 934,223 11,905,214 2,714,747
------------ -------------- -------------- --------------
Expenses:
Investment advisory
fees (Note 2)......... 78,795 73,392 1,464,132 1,955,550
------------ -------------- -------------- --------------
Net Investment Income... 915,657 860,831 10,441,082 759,197
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments
Net realized gain (loss)
on investments:
Net proceeds from sales
and maturities........ 89,993,773 124,072,025 1,844,026,921 2,121,883,944
Cost of securities sold
or matured............ 89,982,741 124,045,532 1,789,820,686 2,093,985,633
------------ -------------- -------------- --------------
Net realized gain
(loss)................. 11,032 26,493 54,206,235 27,898,311
Net unrealized
appreciation
(depreciation) of
investments (Note 1)... 1,505 136,981 (16,888,109) 9,224,730
------------ -------------- -------------- --------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 12,537 163,474 37,318,126 37,123,041
------------ -------------- -------------- --------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ 928,194 $ 1,024,305 $ 47,759,208 $ 37,882,238
============ ============== ============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
MONEY MARKET FUND ALL AMERICA FUND EQUITY INDEX FUND
-------------------------- --------------------------- --------------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 4,249,559 $ 3,150,513 $ 6,839,085 $ 7,314,135 $ 3,292,415 $ 1,601,372
Net realized gain
(loss) on investments. (4,546) (161) 87,265,815 22,009,984 13,796,802 1,803,064
Unrealized appreciation
(depreciation) of
investments........... -- -- 72,872,084 80,788,691 29,821,618 11,911,735
------------ ------------ ------------- ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ 4,245,013 3,150,352 166,976,984 110,112,810 46,910,835 15,316,171
------------ ------------ ------------- ------------ ------------ ------------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 31,053,208 61,070,949 51,559,383 67,857,705 103,055,258 60,056,284
Dividends reinvested... 4,207,000 3,165,422 85,851,292 32,301,582 4,983,072 3,473,499
Cost of shares
redeemed.............. (45,576,714) (59,846,394) (155,677,621) (74,455,531) (14,852,042) (16,336,002)
Dividend distributions. (4,207,000) (3,165,422) (85,851,292) (32,301,582) (4,983,072) (3,473,499)
------------ ------------ ------------- ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... (14,523,506) 1,224,555 (104,118,238) (6,597,826) 88,203,216 43,720,282
------------ ------------ ------------- ------------ ------------ ------------
Increase (Decrease) in
Net Assets............. (10,278,493) 4,374,907 62,858,746 103,514,984 135,114,051 59,036,453
Net Assets, Beginning of
Year................... 77,780,551 73,405,644 636,669,349 533,154,365 101,848,815 42,812,362
------------ ------------ ------------- ------------ ------------ ------------
Net Assets, End of Year. $ 67,502,058 $ 77,780,551 $ 699,528,095 $636,669,349 $236,962,866 $101,848,815
============ ============ ============= ============ ============ ============
Components of Net
Assets:
Paid-in capital........ $ 67,381,318 $ 77,697,824 $ 416,381,083 $434,648,029 $174,534,873 $ 81,348,585
Accumulated
undistributed net
investment income
(loss)................ 130,482 87,923 (175,037) (244,122) (14,572) (8,055)
Accumulated
undistributed net
realized gain (loss)
on investments........ (9,742) (5,196) 4,678,137 (3,506,387) 12,124,782 12,120
Unrealized appreciation
(depreciation) of
investments........... -- -- 278,643,912 205,771,829 50,317,783 20,496,165
------------ ------------ ------------- ------------ ------------ ------------
Net Assets, End of Year. $ 67,502,058 $ 77,780,551 $ 699,528,095 $636,669,349 $236,962,866 $101,848,815
============ ============ ============= ============ ============ ============
<CAPTION>
SHORT-TERM MID-TERM
BOND FUND BOND FUND BOND FUND
-------------------------- --------------------------- --------------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 24,752,577 $ 20,579,562 $ 915,657 $ 617,247 $ 860,831 $ 1,885,137
Net realized gain
(loss) on investments. 2,443,601 4,996,015 11,032 363 26,493 (744,597)
Unrealized appreciation
(depreciation) of
investments........... 10,731,058 (14,451,071) 1,505 16,737 136,981 (776,280)
------------ ------------ ------------- ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 37,927,236 11,124,506 928,194 634,347 1,024,305 364,260
------------ ------------ ------------- ------------ ------------ ------------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 129,718,878 63,334,172 4,662,604 14,156,603 7,085,456 33,969,164
Dividends reinvested... 26,570,467 21,664,408 921,469 606,778 911,528 1,825,609
Cost of shares
redeemed.............. (83,214,662) (56,464,268) (6,464,199) (1,789,353) (6,822,743) (45,471,861)
Dividend distributions. (26,570,467) (21,664,408) (921,469) (606,778) (911,528) (1,825,609)
------------ ------------ ------------- ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... 46,504,216 6,869,904 (1,801,595) 12,367,250 262,713 (11,502,697)
------------ ------------ ------------- ------------ ------------ ------------
Increase (Decrease) in
Net Assets............. 84,431,452 17,994,410 (873,401) 13,001,597 1,287,018 (11,138,437)
Net Assets, Beginning of
Year................... 329,273,447 311,279,037 15,514,082 2,512,485 13,359,520 24,497,957
------------ ------------ ------------- ------------ ------------ ------------
Net Assets, End of Year. $413,704,899 $329,273,447 $ 14,640,681 $ 15,514,082 $ 14,646,538 $ 13,359,520
============ ============ ============= ============ ============ ============
Components of Net
Assets:
Paid-in capital........ $403,582,712 $330,508,029 $ 14,583,047 $ 15,463,173 $ 15,795,682 $ 14,621,441
Accumulated
undistributed net
investment income
(loss)................ (816,175) (1,022,752) (841) 4,971 (38,409) 12,288
Accumulated
undistributed net
realized gain (loss)
on investments........ (3,060,087) (3,479,221) 619 (10,413) (1,271,470) (1,297,963)
Net unrealized
appreciation
(depreciation) of
investments........... 13,998,449 3,267,391 57,856 56,351 160,735 23,754
------------ ------------ ------------- ------------ ------------ ------------
Net Assets, End of Year. $413,704,899 $329,273,447 $ 14,640,681 $ 15,514,082 $ 14,646,538 $ 13,359,520
============ ============ ============= ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
COMPOSITE FUND AGGRESSIVE EQUITY FUND
-------------------------- --------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income. $ 10,441,082 $ 10,191,145 $ 759,197 $ 441,513
Net realized gain
(loss) on
investments.......... 54,206,235 19,809,364 27,898,311 17,987,676
Unrealized
appreciation
(depreciation) of
investments.......... (16,888,109) 1,412,589 9,224,730 4,633,533
------------ ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 47,759,208 31,413,098 37,882,238 23,062,722
------------ ------------ ------------ ------------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............ 31,298,846 15,736,097 137,350,976 72,571,512
Dividends reinvested.. 67,460,654 35,621,387 28,638,720 19,399,095
Cost of shares
redeemed............. (57,212,696) (40,509,708) (24,081,133) (18,033,044)
Dividend
distributions........ (67,460,654) (35,621,387) (28,638,720) (19,399,095)
------------ ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... (25,913,850) (24,773,611) 113,269,843 54,538,468
------------ ------------ ------------ ------------
Increase (Decrease) in
Net Assets............. 21,845,358 6,639,487 151,152,081 77,601,190
Net Assets, Beginning of
Year................... 282,931,109 276,291,622 136,228,763 58,627,573
------------ ------------ ------------ ------------
Net Assets, End of Year. $304,776,467 $282,931,109 $287,380,844 $136,228,763
============ ============ ============ ============
Components of Net
Assets:
Paid-in capital....... $304,788,225 $263,241,421 $264,711,710 $122,803,147
Accumulated
undistributed net
investment income
(loss)............... 635,624 499,542 (3,076) (16,273)
Accumulated
undistributed net
realized gain (loss)
on investments....... (5,059,908) (2,110,489) 1,083,347 1,077,756
Unrealized
appreciation
(depreciation) of
investments.......... 4,412,526 21,300,635 21,588,863 12,364,133
------------ ------------ ------------ ------------
Net Assets, End of Year. $304,776,467 $282,931,109 $287,380,844 $136,228,763
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
Income from investment operations and distributions per share for a Fund
share outstanding throughout each of the ten years ended December 31, 1997,
or, since the Fund's inception date if in existence less than ten years and
other supplementary data with respect to the Funds are presented below. The
financial highlights for the years 1988 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 presented from the perspective of the Funds.
<TABLE>
<CAPTION>
MONEY MARKET FUND
-----------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.19 $ 1.18 $ 1.19 $ 1.17 $ 1.17 $ 1.18 $ 1.23 $ 1.23 $ 1.22 $ 1.25
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.07 0.06 0.07 0.03 0.04 0.04 0.12 0.10 0.12 0.08
Net Gains or (Losses)
on Securities realized
and unrealized........ -- -- -- 0.02 -- -- (0.05) -- -- --
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Total From Investment
Operations............. 0.07 0.06 0.07 0.05 0.04 0.04 0.07 0.10 0.12 0.08
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Less: Dividend
Distributions From Net
Investment Income...... (0.08) (0.05) (0.08) (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11)
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions..... (0.08) (0.05) (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 $ 1.18 $ 1.19 $ 1.17 $ 1.17 $ 1.18 $ 1.23 $ 1.23 $ 1.22
===== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return (%)........ 5.5 5.3 5.8 4.1 2.9 3.3 4.4 6.8 7.8 5.9
Net Assets, End of Year
($ millions)........... 68 78 73 81 38 39 43 89 81 6
Ratio of Expenses to
Average Net Assets (%). 0.25 0.25 0.25 0.25 0.26 0.40 0.40 0.40 0.40 0.40
Ratio of Net Investment
Income to Average Net
Assets (%)............. 5.32 5.21 5.66 4.15 2.90 3.33 5.73 7.79 8.90 6.85
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 short-term securities.
N/A=Not Applicable
43
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
ALL AMERICA FUND(B)
-----------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
1997 1996 1995 1994(C) 1993 1992 1991 1990 1989 1988
------ ------ ------ ------- ------ ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 2.44 $ 2.13 $ 1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $ 1.82
------ ------ ------ ------- ------ ------- ------- ------- ------- ------
Income From Investment
Operations:
Net Investment Income.. 0.03 0.03 0.03 0.04 0.04 0.04 0.18 0.08 0.28 0.06
Net Gains or (Losses)
on Securities realized
and unrealized........ 0.62 0.41 0.56 (0.01) 0.18 0.03 0.23 (0.11) 0.14 0.10
------ ------ ------ ------- ------ ------- ------- ------- ------- ------
Total From Investment
Operations............. 0.65 0.44 0.59 0.03 0.22 0.07 0.41 (0.03) 0.42 0.16
------ ------ ------ ------- ------ ------- ------- ------- ------- ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.03) (0.03) (0.03) (0.04) (0.04) (0.04) (0.05) (0.06) (0.05) (0.09)
From Capital Gains..... (0.35) (0.10) (0.04) (0.18) (0.17) (0.17) (0.13) (0.02) (0.25) (0.20)
------ ------ ------ ------- ------ ------- ------- ------- ------- ------
Total Distributions..... (0.38) (0.13) (0.07) (0.22) (0.21) (0.21) (0.18) (0.08) (0.30) (0.29)
------ ------ ------ ------- ------ ------- ------- ------- ------- ------
Net Asset Value, End of
Year................... $ 2.71 $ 2.44 $ 2.13 $ 1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69
====== ====== ====== ======= ====== ======= ======= ======= ======= ======
Total Return (%)........ 26.8 20.7 36.6 1.3 12.0 3.2 22.6 (3.8) 24.1 8.7
Net Assets, End of Year
($ millions)........... 700 637 533 375 424 398 434 377 437 40
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 0.50
Ratio of Net Investment
Income to Average Net
Assets (%)............. 0.98 1.26 1.57 2.11 1.92 2.02 2.49 3.33 2.54 3.07
Portfolio Turnover Rate
(%)(a)................. 28.64 28.35 33.63 129.80 93.86 129.40 158.35 108.75 117.60 56.94
Average Commission Rate
Paid ($)(d)............ .0364 .0549 -- -- -- -- -- -- -- --
</TABLE>
- -------
(a) Portfolio turnover rate excludes all 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) Average commission rate paid per share of stock is calculated for years
beginning after 1995.
44
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND
---------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------ ------ ------ ------ ------- ------- ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.38 $ 1.43 $ 1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $ 1.27 $ 1.40
------ ------ ------ ------ ------- ------- ------ ------- ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.09 0.09 0.09 0.09 0.09 0.09 0.13 0.09 -- 0.09
Net Gains or (Losses)
on Securities realized
and unrealized........ 0.06 (0.04) 0.16 (0.14) 0.09 0.03 0.08 (0.02) 0.16 (0.01)
------ ------ ------ ------ ------- ------- ------ ------- ------ ------
Total From Investment
Operations............. 0.15 0.05 0.25 (0.05) 0.18 0.12 0.21 0.07 0.16 0.08
------ ------ ------ ------ ------- ------- ------ ------- ------ ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.09) (0.09) (0.09) (0.09) (0.09) (0.09) (0.11) (0.11) (0.06) (0.21)
From Capital Gains..... (0.01) (0.01) -- -- (0.09) (0.03) (0.02) -- -- --
------ ------ ------ ------ ------- ------- ------ ------- ------ ------
Total Distributions..... (0.10) (0.10) (0.09) (0.09) (0.18) (0.12) (0.13) (0.11) (0.06) (0.21)
------ ------ ------ ------ ------- ------- ------ ------- ------ ------
Net Asset Value, End of
Year................... $ 1.43 $ 1.38 $ 1.43 $ 1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $ 1.27
====== ====== ====== ====== ======= ======= ====== ======= ====== ======
Total Return (%)........ 10.4 3.5 19.4 (3.2) 13.1 8.6 14.0 3.5 11.1 6.2
Net Assets, End of Year
($ millions)........... 414 329 311 249 263 233 187 163 109 5
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 0.50
Ratio of Net Investment
Income to Average Net
Assets (%)............. 6.69 6.70 6.64 6.32 6.30 6.93 7.59 8.57 8.55 8.25
Portfolio Turnover Rate
(%)(a)................. 57.71 30.14 41.93 51.14 103.16 112.40 95.00 129.02 47.70 75.61
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
45
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
SHORT-TERM BOND FUND MID-TERM BOND FUND
--------------------------------------- ----------------------------------------
YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31,
--------------------------------------- ----------------------------------------
1997 1996 1995 1994 1993(B) 1997 1996 1995 1994 1993(B)
------ ------ ------ ------ ------- ------ ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period/Year............ $ 1.03 $ 1.02 $ 1.00 $ 1.02 $ 1.00 $ 0.90 $ 1.00 $ 0.91 $ 0.99 $ 1.00
------ ------ ------ ------ ------- ------ ------- ------ ------ -------
Income From Investment
Operations:
Net Investment Income.. 0.07 0.04 0.06 0.04 0.02 0.05 0.14 0.06 0.03 0.04
Net Gains or (Losses)
on Securities realized
and unrealized........ (0.01) 0.01 0.02 (0.02) 0.02 0.01 (0.10) 0.09 (0.07) 0.04
------ ------ ------ ------ ------- ------ ------- ------ ------ -------
Total From Investment
Operations............. 0.06 0.05 0.08 0.02 0.04 0.06 0.04 0.15 (0.04) 0.08
------ ------ ------ ------ ------- ------ ------- ------ ------ -------
Less Dividend
Distributions:
From Net Investment
Income................ (0.07) (0.04) (0.06) (0.04) (0.02) (0.06) (0.14) (0.06) (0.04) (0.04)
From Capital Gains..... -- -- -- -- -- -- -- -- -- (0.05)
------ ------ ------ ------ ------- ------ ------- ------ ------ -------
Total Distributions..... (0.07) (0.04) (0.06) (0.04) (0.02) (0.06) (0.14) (0.06) (0.04) (0.09)
------ ------ ------ ------ ------- ------ ------- ------ ------ -------
Net Asset Value, End of
Period/Year............ $ 1.02 $ 1.03 $ 1.02 $ 1.00 $ 1.02 $ 0.90 $ 0.90 $ 1.00 $ 0.91 $ 0.99
====== ====== ====== ====== ======= ====== ======= ====== ====== =======
Total Return (%)........ 6.0 4.9 7.7 1.4 4.6 7.3 3.9 16.3 (3.7) 7.3
Net Assets, End of
Period/Year
($ millions)........... 15 16 3 2 3 15 13 24 24 19
Ratio of Expenses to
Average Net Assets (%). 0.50 0.50 0.50 0.48 0.45 0.50 0.50 0.50 0.50 0.45
Ratio of Net Investment
Income to Average Net
Assets (%)............. 5.81 5.42 4.65 3.51 3.09 5.87 5.80 5.73 4.71 4.13
Portfolio Turnover Rate
(%)(a)................. 74.95 6.68 16.47 0.00 122.37 12.89 144.55 73.72 7.52 162.03
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
(b) Commenced operations February 5, 1993.
46
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
COMPOSITE FUND
------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------- ------ ------ ------- ------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 1.77 $ 1.81 $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $ 1.46 $ 1.60
------- ------ ------ ------- ------- ------- ------- ------- ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.07 0.07 0.08 0.05 0.05 0.06 0.19 0.14 0.11 0.08
Net Gains or (Losses)
on Securities realized
and unrealized........ 0.24 0.14 0.27 (0.10) 0.22 0.03 0.09 (0.09) 0.17 0.05
------- ------ ------ ------- ------- ------- ------- ------- ------ ------
Total From Investment
Operations............. 0.31 0.21 0.35 (0.05) 0.27 0.09 0.28 0.05 0.28 0.13
------- ------ ------ ------- ------- ------- ------- ------- ------ ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.07) (0.08) (0.08) (0.07) (0.05) (0.06) (0.07) (0.10) (0.08) (0.17)
From Capital Gains..... (0.39) (0.17) (0.03) (0.02) (0.10) (0.05) (0.13) (0.05) (0.03) (0.10)
------- ------ ------ ------- ------- ------- ------- ------- ------ ------
Total Distributions..... (0.46) (0.25) (0.11) (0.09) (0.15) (0.11) (0.20) (0.15) (0.11) (0.27)
------- ------ ------ ------- ------- ------- ------- ------- ------ ------
Net Asset Value, End of
Year................... $ 1.62 $ 1.77 $ 1.81 $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $ 1.46
======= ====== ====== ======= ======= ======= ======= ======= ====== ======
Total Return (%)........ 17.7 11.9 21.9 (3.0) 16.9 5.9 16.4 1.5 17.2 7.9
Net Assets, End of Year
($ millions)........... 305 283 276 233 228 138 111 79 67 51
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 0.50
Ratio of Net Investment
Income to Average Net
Assets (%)............. 3.57 3.63 4.30 3.88 3.48 4.01 4.75 6.20 5.48 5.94
Portfolio Turnover Rate
(%)(a)................. 104.04 69.79 76.84 113.86 100.76 107.69 134.91 105.06 87.32 50.88
Average Commission Rate
Paid ($)(b)............ .0471 .0597 -- -- -- -- -- -- -- --
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
(b) Average commission rate paid per share of stock is calculated for years
beginning after 1995.
47
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY INDEX FUND AGGRESSIVE EQUITY FUND
--------------------------------------- ---------------------------------
YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31,
--------------------------------------- ---------------------------------
1997 1996 1995 1994 1993(B) 1997 1996 1995 1994(C)
------ ------ ------ ------ ------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period/Year............ $ 1.59 $ 1.35 $ 1.02 $ 1.04 $ 1.00 $ 1.47 $ 1.35 $ 1.05 $ 1.00
------ ------ ------ ------ ------ ------ ------- ------- ------
Income From Investment
Operations:
Net Investment Income.. 0.03 0.03 0.02 0.03 0.02 0.01 0.01 0.01 0.01
Net Gains or (Losses)
on Securities realized
and unrealized........ 0.50 0.27 0.36 (0.01) 0.04 0.31 0.36 0.39 0.05
------ ------ ------ ------ ------ ------ ------- ------- ------
Total From Investment
Operations............. 0.53 0.30 0.38 0.02 0.06 0.32 0.37 0.40 0.06
------ ------ ------ ------ ------ ------ ------- ------- ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.03) (0.03) (0.03) (0.03) (0.02) (0.01) (0.01) (0.01) (0.01)
From Capital Gains..... (0.01) (0.03) (0.02) (0.01) -- (0.17) (0.24) (0.09) --
------ ------ ------ ------ ------ ------ ------- ------- ------
Total Distributions..... (0.04) (0.06) (0.05) (0.04) (0.02) (0.18) (0.25) (0.10) (0.01)
------ ------ ------ ------ ------ ------ ------- ------- ------
Net Asset Value, End of
Period/Year............ $ 2.08 $ 1.59 $ 1.35 $ 1.02 $ 1.04 $ 1.61 $ 1.47 $ 1.35 $ 1.05
====== ====== ====== ====== ====== ====== ======= ======= ======
Total Return (%)........ 33.1 22.7 36.6 1.5 6.2 21.2 27.1 38.2 6.0
Net Assets, End of
Period/Year ($
millions).............. 237 102 43 26 27 287 136 59 27
Ratio of Expenses to
Average Net Assets (%). 0.13 0.13 0.13 0.13 0.11 0.85 0.85 0.85 0.56
Ratio of Net Investment
Income to Average Net
Assets (%)............. 1.86 2.19 2.50 2.67 2.43 0.33 0.45 0.65 0.70
Portfolio Turnover Rate
(%)(a)................. 14.17 5.85 13.99 6.59 1.44 80.94 103.68 116.52 60.86
Average Commission Rate
Paid ($)(d)............ .0308 .0388 -- -- -- .0537 .0591 -- --
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
(b) Commenced operations February 5, 1993.
(c) Commenced operations May 2, 1994.
(d) Average commission rate paid per share of stock is calculated for years
beginning after 1995.
48
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
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"). As a "series" type mutual fund, the Investment Company
issues separate classes (or series) of capital 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. The Investment Company is a successor to Mutual of
America Life's Separate Account No. 2 Money Market, All America (formerly
Stock) Bond and Composite Funds having exchanged its shares for the respective
net assets of these Separate Account No. 2 Funds in 1986.
The Investment Company shares are sold only to Mutual of America Life and
American Life for allocation to their Separate Accounts as a funding medium
for variable annuity and variable life insurance contracts issued by these
companies. As of December 31, 1997 Mutual of America Life owned 97.7% and
American Life 2.3% of the Investment Company's aggregate outstanding shares.
In January 1989, the net assets of Mutual of America Life's Separate Account
No. 1, available only for qualified pension plans, were invested in the All
America Fund 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 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.
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 mean of the closing bid and asked 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.
A fund may purchase stock index futures contracts for cash management
purposes to remain more fully invested in the equity markets while
minimizing transaction costs. Initial cash margin deposits (represented
by cash or Treasury bills) are made upon entering into futures
contracts. (This initial margin, equal to approximately 4% of the
contract amount, does not involve the borrowing of funds to finance the
transaction). During the period the futures contract is outstanding,
changes in the value of the contract are recognized as unrealized gains
or losses from futures transactions by "marking-to-market" on a daily
basis to reflect the market value of the contract at the end of each
trading day. Depending upon whether unrealized gains or losses are
incurred, variation margin
49
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
payments are received or made. When the contract is closed, a realized
gain or loss from futures transactions is recorded, equal to the net
variation margin received or paid over the period of the contract. The
"Underlying Face Amount at Value" representing the aggregate of
outstanding contractual amounts under futures contracts reflects the
extent of a fund's exposure to off-balance sheet risk.
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. Foreign source tax withheld from dividends is
recorded as a reduction from dividend income. Should reclamation efforts
succeed, such amounts are recorded as income upon collection.
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 stock is based on the
identified cost basis of the security, determined on the first-in,
first-out ("FIFO") basis.
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.
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 may place portfolio transactions
through a broker affiliated with the Adviser. The aggregate commissions paid
to this broker for the year ended December 31, 1997 was $64,092 or 3% of total
commissions. In addition, a Sub-Advisor placed a portion of its portfolio
transactions with its affiliated broker-dealer. Such commissions amounted to
$216,495 or 11.0% of the Investment Company's total commissions.
3. PURCHASES AND SALES
The cost of investment purchases and proceeds from sales of investments,
excluding short-term securities, options and futures for the year ended
December 31, 1997 was as follows:
<TABLE>
<CAPTION>
ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Cost of investment purchases............. $195,522,073 $117,324,506 $262,014,591
============ ============ ============
Proceeds from sales of investments....... $302,071,138 $ 23,510,255 $196,259,574
============ ============ ============
</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.. $11,448,110 $5,613,799 $262,504,994 $272,927,901
=========== ========== ============ ============
Proceeds from sales of
investments.................. $11,170,015 $1,422,146 $256,062,961 $165,909,796
=========== ========== ============ ============
</TABLE>
50
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The cost of short-term security purchases for the Money Market Fund for the
year was $945,106,990. Net proceeds from sales and redemptions for the year
was $959,830,399.
At December 31, 1997, net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
MONEY ALL AMERICA EQUITY INDEX BOND
MARKET FUND FUND FUND FUND
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized
appreciation............... $ -- $289,084,728 $ 52,814,835 $ 14,214,454
Aggregate gross unrealized
depreciation............... -- 10,440,816 2,497,052 216,005
----------- ------------ ------------ ------------
Net unrealized appreciation
(depreciation)............. $ -- $278,643,912 $ 50,317,783 $ 13,998,449
=========== ============ ============ ============
Aggregate cost of
investments for Federal
income tax purposes........ $67,501,370 $418,360,583 $186,329,610 $396,527,239
=========== ============ ============ ============
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized
appreciation............... $ 63,941 $ 177,690 $ 13,241,193 $ 36,821,497
Aggregate gross unrealized
depreciation............... 6,085 16,955 8,828,667 15,232,634
----------- ------------ ------------ ------------
Net unrealized appreciation
(depreciation)............. $ 57,856 $ 160,735 $ 4,412,526 $ 21,588,863
=========== ============ ============ ============
Aggregate cost of
investments for Federal
income tax purposes........ $14,477,811 $ 14,201,472 $301,380,507 $267,196,801
=========== ============ ============ ============
</TABLE>
4. CAPITAL SHARE ACTIVITY
The Investment Company has registered an indefinite number of its capital
shares pursuant to Rule 24F-2 under the Investment Company Act of 1940. Shares
are currently 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..................................... 150,000,000
Bond Fund............................................. 325,000,000
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........................................... 1,900,000,000
Shares to be allocated at the discretion of the Board
of Directors......................................... 1,100,000,000
-------------
Total............................................... 3,000,000,000
=============
</TABLE>
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
--------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Shares sold.................. 25,436,145 18,307,611 55,500,928 89,348,390
Shares issued to shareholders
as reinvestment of
dividends................... 3,575,177 31,672,092 2,398,380 18,616,691
---------- ---------- ---------- -----------
Total........................ 29,011,322 49,979,703 57,899,308 107,965,081
Shares redeemed.............. 37,008,064 53,217,275 7,724,686 56,494,335
---------- ---------- ---------- -----------
Net increase (decrease)...... (7,996,742) (3,237,572) 50,174,622 51,470,746
========== ========== ========== ===========
</TABLE>
51
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
--------------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY
BOND FUND BOND FUND FUND FUND
------------ ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Shares sold............. 4,388,108 7,758,608 16,004,173 82,801,715
Shares issued to
shareholders as
reinvestment of
dividends.............. 902,033 1,007,176 41,594,212 17,718,305
---------- ---------- ---------- -----------
Total................... 5,290,141 8,765,784 57,598,385 100,520,020
Shares redeemed......... 6,050,019 7,440,628 29,544,518 14,247,788
---------- ---------- ---------- -----------
Net increase (decrease). (759,878) 1,325,156 28,053,867 86,272,232
========== ========== ========== ===========
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,1996
--------------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Shares sold............. 50,280,297 29,550,325 40,909,613 44,395,084
Shares issued to
shareholders as
reinvestment of
dividends.............. 2,659,830 13,283,731 2,182,072 15,684,625
---------- ---------- ---------- -----------
Total................... 52,940,127 42,834,056 43,091,685 60,079,709
Shares redeemed......... 49,911,080 32,314,890 11,049,137 39,572,610
---------- ---------- ---------- -----------
Net increase (decrease). 3,029,047 10,519,166 32,042,548 20,507,099
========== ========== ========== ===========
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1996
--------------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
------------ ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Shares sold............. 13,761,891 33,684,710 8,501,017 47,625,065
Shares issued to
shareholders as
reinvestment of
dividends.............. 590,553 2,035,806 20,004,080 13,092,538
---------- ---------- ---------- -----------
Total................... 14,352,444 35,720,516 28,505,097 60,717,603
Shares redeemed......... 1,718,816 45,316,254 21,578,442 11,562,121
---------- ---------- ---------- -----------
Net increase (decrease). 12,633,628 (9,595,738) 6,926,655 49,155,482
========== ========== ========== ===========
</TABLE>
5. DIVIDENDS
On December 31, 1997 dividend distributions were declared for each of the
Funds from net realized gains on investment transactions and net investment
income during 1997. Additionally, on September 15, 1997 the remaining required
dividends relating to the 1996 Internal Revenue Sec. 855(a) election were
declared for each of the funds and paid on September 15, 1997 to shareholders
of record on September 15, 1997. Dividends declared on December 31, 1997 were
paid on December 31, 1997 to shareholders of record on December 30, 1997. 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>
Net investment income........ $4,207,000 $ 6,770,000 $3,306,638 $24,546,000
Net realized capital gains... -- 79,081,292 1,676,434 2,024,467
---------- ----------- ---------- -----------
Total dividends.............. $4,207,000 $85,851,292 $4,983,072 $26,570,467
========== =========== ========== ===========
Dividend amounts per share... $ .078 $ .379 $ .045 $ .098
========== =========== ========== ===========
Increase in number of shares
per fund.................... 3,575,177 31,672,092 2,398,380 18,616,691
========== =========== ========== ===========
</TABLE>
52
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Net investment income............ $921,469 $ 911,528 $10,305,000 $ 1,813,232
Net realized capital gains....... -- -- 57,155,654 26,825,488
-------- ---------- ----------- -----------
Total dividends.................. $921,469 $ 911,528 $67,460,654 $28,638,720
======== ========== =========== ===========
Dividend amounts per share....... $ .069 $ .060 $ .461 $ .178
======== ========== =========== ===========
Increase in number of shares per
fund............................ 902,033 1,007,176 41,594,212 17,718,305
======== ========== =========== ===========
</TABLE>
53
<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, Composite, and Aggressive Equity Funds as of
December 31, 1997, 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 six years
in the period then ended. 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.
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, 1997 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the Money Market, All America (formerly the Stock Fund), Equity Index, Bond,
Short-Term Bond, Mid-Term Bond, Composite, and Aggressive Equity Funds of
Mutual of America Investment Corporation as of December 31, 1997, 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 six years in the period then ended in conformity
with generally accepted accounting principles.
/s/ Arthur Andersen LLP
New York, New York
February 20, 1998
54
