<PAGE>
As filed with the Securities and Exchange Commission on April 26, 2000
Registration No. 33-6486
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [_]
[X]
Post-Effective Amendment No. 19
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 20
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Mutual of America Investment Corporation
(Exact name of Registrant as Specified in Charter)
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320 Park Avenue
New York, New York 10022
(Address of Principal Executive Office)( Zip Code)
(212) 224-1600
(Depositor's Telephone Number, including Area Code)
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Dolores J. Morrissey, President
Mutual of America Investment Corporation
320 Park Avenue
New York, New York 10022
(Name and Address of Agent for Service)
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Copy to:
Deborah S. Becker, Esq.
Senior Vice President and
Associate General Counsel
Mutual of America Life Insurance Company
320 Park Avenue
New York, New York 10022
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Approximate Date of Proposed Public Offering: As soon as practicable after the
effective date of the Registration Statement.
It is proposed that this filing will become effective: (check appropriate
space)
[_]immediately upon filing pursuant to paragraph (b).
[X]on May 1, 2000 pursuant to paragraph (b)
[_]60 days after filing pursuant to paragraph (a)(1)
[_]on (date) pursuant to paragraph (a)(1)
[_]75 days after filing pursuant to paragraph (a)(2)
[_]on (date) pursuant to paragraph (a)(2) of Rule 485
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<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
Cross-Reference Sheet
<TABLE>
<CAPTION>
Items in
Part A of
Form N-1A Caption in Form N-1A Caption or Location in Prospectus
--------- -------------------- ---------------------------------
<C> <C> <S>
1 Front and Back Cover Pages....... Front and Back Covers
2 Risk/Return Summary: Investments,
Risks, and Performance........... Summary of How Our Funds Invest
3 Risk/Return Summary: Fee Table... Not Applicable (shares only to
Separate Accounts)
4 Investment Objectives, Principal
Investment Strategies, and Details about How Our Funds
Related Risks.................... Invest and Related Risks
5 Management's Discussion of Fund Not Applicable (Included in
Performance...................... Annual Report)
6 Management, Organization, and
Capital Structure................ Management of the Funds
7 Shareholder Information.......... Information on Fund Shares
8 Distribution Agreements.......... Not Applicable
9 Financial Highlights
Information...................... Financial Highlights
<CAPTION>
Items in Caption or Location in
Part B of Statement of Additional
Form N-1A Caption in Form N-1A Information
--------- -------------------- -----------------------
<C> <C> <S>
10 Cover Page and Table of
Contents......................... Cover
11 Fund History..................... Investment Company's Form of
Operations
12 Description of the Fund and Its
Investments and Risks............ Investment Strategies and Related
Risks; Fundamental Investment
Restrictions; Non-Fundamental
Investment Policies; Description
of Corporate Bond Ratings; Use of
Standard & Poor's Indices
13 Management of the Fund........... Management of the Investment
Company
14 Control Persons and Principal Investment Company's Form of
Holders of Securities............ Operations
15 Investment Advisory and Other
Services......................... Investment Advisory Arrangements;
Independent Auditors; Legal
Matters; Custodian
16 Brokerage Allocation and Other Portfolio Transactions and
Practices........................ Brokerage
17 Capital Stock and Other Investment Company's Form of
Securities....................... Operations
18 Purchase, Redemption, and Pricing Purchase, Redemption and Pricing
of Shares........................ of Shares
19 Taxation of the Fund............. Taxation of the Investment
Company
20 Underwriters..................... Distribution Arrangements
21 Calculation of Performance Data.. Yield and Performance Information
22 Financial Statements............. Financial Statements
<CAPTION>
Items in
Part C of
Form N-1A Caption in Form N-1A and in Part C of Registration Statement
--------- ------------------------------------------------------------
<C> <C> <S>
23 Exhibits
24 Persons Controlled by or Under Common Control with the Fund
25 Indemnification
26 Business and Other Connections of the Investment Adviser
27 Principal Underwriters
28 Location of Accounts and Records
29 Management Services
30 Undertakings
</TABLE>
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Summary of How Our Funds Invest...................................... 1
Equity Index Fund................................................... 1
All America Fund.................................................... 1
Mid-Cap Equity Index Fund........................................... 2
Aggressive Equity Fund.............................................. 2
Composite Fund...................................................... 2
Bond Fund........................................................... 2
Mid-Term Bond Fund.................................................. 3
Short-Term Bond Fund................................................ 3
Money Market Fund................................................... 4
Annual Total Returns................................................ 4
Average Annual Total Returns........................................ 7
Management of the Funds.............................................. 9
The Adviser......................................................... 9
Subadvisers for a Portion of the All America Fund................... 9
Portfolio Managers.................................................. 10
Details about How Our Funds Invest and Related Risks................. 11
Investment Objectives and Strategies................................ 11
Equity Index Fund.................................................. 11
All America Fund................................................... 11
Mid-Cap Equity Index Fund.......................................... 13
Aggressive Equity Fund............................................. 14
Composite Fund..................................................... 14
Bond Fund.......................................................... 15
Mid-Term Bond Fund................................................. 15
Short-Term Bond Fund............................................... 16
Money Market Fund.................................................. 16
Risks of Investing in Stock Funds................................... 17
Risks of Investing in Bond Funds.................................... 17
Specific Investments or Strategies, and Related Risks............... 18
Information About Fund Shares........................................ 20
Pricing of Funds' Shares............................................ 20
Purchase of Shares.................................................. 20
Redemption of Shares................................................ 20
Dividends, Capital Gains Distributions and Taxes.................... 20
Financial Highlights................................................. 21
You May Obtain More Information...................................... Back cover
</TABLE>
<PAGE>
Mutual of America Investment Corporation
320 Park Avenue, New York, New York 10022
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Mutual of America Investment Corporation is a mutual fund. It currently has
these nine Funds:
.Equity Index Fund
.All America Fund
.Mid-Cap Equity Index Fund
.Aggressive Equity Fund
.Composite Fund
.Bond Fund
.Mid-Term Bond Fund
.Short-Term Bond Fund
.Money Market Fund
The Funds serve as investment vehicles for account balances under variable
accumulation annuity contracts and variable life insurance policies issued by
Mutual of America Life Insurance Company and The American Life Insurance
Company of New York (the Insurance Companies). Separate Accounts of the
Insurance Companies purchase Fund shares.
This Prospectus has information a contractholder or policyowner should know
before allocating account balance to the Separate Account Funds that invest in
shares of the Funds. You should read this Prospectus carefully and keep it for
future reference.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this Prospectus. Any representation
to the contrary is a criminal offense.
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Prospectus dated May 1, 2000
<PAGE>
SUMMARY OF HOW OUR FUNDS INVEST
Each Fund of Mutual of America Investment Corporation (the Investment Company)
has its own investment objective and tries to achieve its objective with
certain investment strategies. The Funds' different investment strategies will
affect the return of the Funds and the risks of investing in each Fund.
A Fund may not achieve its objective. An investment in any of the Funds could
decline in value.
Equity Index Fund
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The Fund seeks investment results that correspond to the investment performance
of the Standard & Poor's Composite Index of 500 Stocks (the S&P 500(R) Index).
The Fund invests primarily in the 500 common stocks included in the S&P 500
Index.
. Securities in the S&P 500 Index generally are
issued by companies with large market
capitalizations.
. Securities are included in the Index based on
industry weightings and the issuers' leading
positions in those industries.
An investment in the Equity Index Fund is subject to market risk and financial
risk, as defined below.
All America Fund
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The Fund attempts to outperform the S&P 500 Index, by investing in a
diversified portfolio of primarily common stocks.
. Approximately 60% of the Fund's assets are invested
to replicate the S&P 500 Index by investing in the
500 common stocks included in the S&P 500 Index.
. Approximately 40% of the Fund's assets are invested
by the Adviser and two Subadvisers, with an
objective of capital appreciation and, to a lesser
extent, current income. The Adviser invests
approximately 10% of the Fund's assets primarily in
small capitalization value stocks and approximately
10% of the Fund's assets primarily in large
capitalization value stocks; one Subadviser invests
approximately 10% of the Fund's assets primarily in
small capitalization growth stocks; and the other
Subadviser invests approximately 10% of the Fund's
assets primarily in mid- and large capitalization
growth stocks.
An investment in the All America Fund is subject to market and financial risk,
as defined below. Approximately 20% of the All America Fund's assets are
invested in small capitalization growth and value stocks, many of which trade
over-the-counter, and this portion of its portfolio will have more market and
financial risk than the portion invested in mid and large capitalization
stocks. Equity securities that trade over-the-counter may be more difficult to
sell than equity securities that trade on a national securities exchange.
..............................................................
Risks Defined for Investing in Equity Securities
-- Market Risk refers to how much the value of a security changes
(volatility of price) when conditions in the securities markets change or
the economic environment changes. Stocks of companies with smaller market
capitalizations generally have more market risk than stocks of companies
with larger market capitalizations. Market capitalization refers to the
aggregate market value of the equity securities (stock) that a company has
issued.
-- Financial (or credit) risk refers to the earning stability and overall
financial soundness of an issuer of an equity security.
-1-
<PAGE>
Mid-Cap Equity Index Fund
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The Fund seeks investment results that correspond to the investment performance
of the S&P MidCap 400 Index.
. The Fund invests primarily in the 400 common stocks
included in the S&P MidCap 400 Index.
. These stocks are issued by companies with mid-sized
market capitalizations.
An investment in the MidCap Equity Index Fund is subject to market and
financial risk (as defined on page 1).
Aggressive Equity Fund
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The Fund seeks capital appreciation by investing primarily in growth and value
common stocks. Many of the stocks purchased are issued by companies that have
small market capitalizations and are traded over-the-counter.
The Fund uses two different investment styles to seek its investment objective:
. The Fund invests in growth stocks issued by
companies the Adviser believes to possess above-
average growth potential.
. The Fund invests in value stocks issued by
companies the Adviser believes to be undervalued in
the marketplace in relation to factors such as the
company's assets, earnings, or growth potential.
An investment in the Aggressive Equity Fund is subject to market and financial
risk (as defined on page 1). The Aggressive Equity Fund has more market risk
and financial risk than our other stock funds, because it generally invests in
small capitalization growth and value equity securities that often trade over-
the-counter.
Composite Fund
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The Fund seeks capital appreciation and current income by investing in a
diversified portfolio of common stocks, debt securities and money market
instruments. The portion of the Fund's assets invested in each category of
securities will vary, based on the Adviser's view of current economic and
market conditions.
. The current investment strategy for the equity
portion on the Fund is to invest in approximately
25 stocks in the S&P 500 Index that are the largest
in the Index by market capitalization, and in
approximately 50-75 additional stocks that also are
included in the S&P 500 Index, as selected by the
Adviser.
. The current investment strategy for the fixed
income portion of the Fund is to invest primarily
in investment grade debt securities issued by U.S.
corporations or by the U.S. Government or its
agencies, including mortgage-backed securities.
An investment in the Composite Fund has market risk. By investing in equity
securities and debt securities, the Fund tries to reduce the market risk that
would exist for an investment in either a stock fund or a bond fund. An
investment in the Composite Fund has moderate financial risk, based on the
Fund's purchase of equity securities included in the S&P 500 Index and its
purchase of investment grade debt securities. Refer to "Risks Defined for
Investing in Equity Securities" on page 1 and "Risks of Investing in any of the
Bond Funds" on page 3.
Bond Fund
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The Fund seeks current income, with preservation of shareholders' capital a
secondary objective. The Fund's securities holdings will have an average
maturity that varies according to the Adviser's view of current market
conditions. The Fund invests primarily in publicly-traded, investment grade
debt securities.
. The Fund invests in corporate, U.S. Government
securities and U.S. Government agency securities,
such as bonds, notes, debentures, zero coupon
securities and mortgage-backed securities.
. The Fund may have a significant portion of its
assets invested in a particular type of debt
security, such as U.S. Government agency mortgage-
backed securities, zero coupon securities or
securities rated BBB.
-2-
<PAGE>
. The Adviser evaluates individual securities and
selects securities based on interest income to be
generated and does not time purchases and sales
based on interest rate predictions.
You should refer to "Risks of Investing in any of the Bond Funds" below.
Mid-Term Bond Fund
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The Fund seeks current income, with preservation of shareholders' capital a
secondary objective. The Fund's securities holdings will have an average
maturity of three to seven years. The Fund invests primarily in publicly-
traded, investment grade debt securities.
. The Fund invests in corporate, U.S. Government
securities and U.S. Government agency securities,
such as bonds, notes, debentures, zero coupon
securities and mortgage-backed securities.
. The Fund may have a significant portion of its
assets invested in a particular type of debt
security, such as U.S. Government agency mortgage-
backed securities, zero coupon securities or
securities rated BBB.
. The Adviser generally selects securities based on
interest income to be generated and does not time
purchases and sales based on interest rate
predictions.
You should refer to "Risks of Investing in any of the Bond Funds" below.
Short-Term Bond Fund
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The Fund seeks current income, with preservation of shareholders' capital a
secondary objective. The Fund's securities holdings will have an average
maturity of one to three years. The Fund invests primarily in publicly-traded,
investment grade debt securities.
. The Fund invests in corporate, U.S. Government
securities, U.S. Government agency securities and
money market instruments, such as bonds, notes,
zero coupon securities, mortgage-backed securities
and commercial paper.
. The Fund may have a significant portion of its
assets invested in a particular debt security, such
as U.S. Government or agency securities, which also
may be mortgage-backed securities.
. The Adviser selects securities based on income to
be generated and does not time purchases and sales
based on interest rate predictions.
You should refer to "Risks of Investing in any of the Bond Funds" below.
Risks of Investing in any of the Bond Funds
An investment in any of the Bond Funds is subject to market risk, which
includes changes in the overall level of interest rates. Interest rate
increases usually cause a decline in the value of debt securities, with the
amount of the decline greater for securities with longer terms to maturity. For
this reason, the Bond Fund has more market risk than the Mid-Term Bond Fund,
and the Mid-Term Bond Fund has more market risk than the Short-Term Bond Fund.
Lower rated investment grade debt securities, which the Bond Fund and the Mid-
Term Bond Fund purchase, may be subject to a greater market risk than higher
rated debt securities, and below investment grade securities (rate below BBB)
are subject to greater market risk than investment grade debt securities. Zero
coupon securities, which the Bond Fund and Mid-Term Bond Fund also may
purchase, may be subject to a greater market risk than securities that pay
interest on a regular basis. Mortgage-backed securities or certificates, which
all of the Funds may purchase and in which the Short-Term Bond Fund from time
to time invests a significant portion of its assets, are subject to prepayment
risk (shortening the term to maturity) when interest rates fall and to
extension risk (lengthening the term to maturity) when interest rates rise.
An investment in any of the Bond Funds also involves credit risk, which refers
to the ability of the issuer of a security to pay principal and interest as it
becomes due. Securities rated BBB or lower have more credit risk than higher-
rated securities.
-3-
<PAGE>
Money Market Fund
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The Fund seeks current income and preservation of principal by investing in
money market instruments that meet certain requirements for liquidity,
investment quality and stability of capital.
. The average maturity of the instruments the Fund
holds will be short-term -- 90 days or less.
. The Fund will purchase only securities that are
rated in one of the two highest rating categories
by at least two rating agencies, with most
securities rated in the highest category.
. The Fund will diversify its investments, limiting
holdings in the securities of any one issuer
(except the U.S. Government or its agencies) to 5%
of assets.
The Money Market Fund pays dividends of income earned on an annual basis,
rather than declaring dividends daily to maintain a stable net asset value of
$1.00.
. The Fund's net asset value will generally rise
during the year as the Fund earns income, before
dividends are paid.
. The Fund's net asset value will decline when the
Fund declares dividends and pays income to
shareholders at the end of December each year.
A shareholder's investment in the Fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation, the U.S. Government or any other
government agency.
An investment in the Money Market Fund has a small amount of market risk and
financial risk, because the Fund holds high quality securities with short terms
to maturity. The Fund has a high level of current income volatility, because
its securities holdings are short term and it reinvests at current interest
rates as its holdings mature.
Annual Total Returns
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The bar charts below show the annual return of each Fund for the past ten
years, or for the years the Fund has been in operation if less than ten years.
A chart indicates the risks of investing in a particular Fund by showing
changes in the Fund's performance from year-to-year during the period, but a
Fund's past performance does not necessarily indicate how it will perform in
the future.
Below each chart is the Fund's highest total return for any calendar quarter
during the period covered by the chart, called the best quarter return, and the
Fund's lowest total return for any calendar quarter during the period covered,
called the worst quarter return. These returns are an indication of the
volatility of a Fund's total returns. The numbers in parentheses are negative,
representing a loss of principal.
The total returns shown do not include charges against the assets of the
Separate Accounts that purchase Fund shares. If these charges were reflected,
returns would be less than those shown.
Equity Index Fund:
[BAR CHART]
1994 1.5%
1995 36.6%
1996 22.7%
1997 33.1%
1998 28.6%
1999 20.6%
Best quarter return: 21.4% during forth quarter 1998
Worst quarter return: (9.9%) during third quarter 1998
-4-
<PAGE>
All America Fund:
[BAR CHART]
1990 (3.8%)
1991 22.6%
1992 3.2%
1993 12.0%
1994 1.3%
1995 36.6%
1996 20.7%
1997 26.8%
1998 21.3%
1999 25.8%
Best quarter return: 22.1% forth quarter 1998
Worst quarter return: (14.3%) during quarter 1998
Mid-Cap Equity Index Fund:
[BAR CHART]
1999 11.8%
Best quarter return: 16.9% during forth quarter 1998
Worst quarter return: (8.1%) during forth quarter 1999
Aggressive Equity Fund:
[BAR CHART]
1995 38.2%
1996 27.1%
1997 21.2%
1998 (5.1%)
1999 43.3%
Best quarter return: 27.2% during forth quarter 1999
Worst quarter return: (26.2%) during third quarter 1998
-5-
<PAGE>
Composite Fund:
[BAR CHART]
1990 1.5%
1991 17.4%
1992 5.9%
1993 16.9%
1994 3.0%
1995 21.9%
1996 11.9%
1997 17.7%
1998 14.5%
1999 15.2%
Best quarter return: 12.9% during forth quarter 1999
Worst quarter return: (6.9%) during forth quarter 1990
Bond Fund:
[BAR CHART]
1990 3.5%
1991 14.0%
1992 8.6%
1993 13.1%
1994 (3.2)%
1995 19.4%
1996 3.5%
1997 10.4%
1998 7.2%
1999 (1.9%)
Best quarter return: 7.0% during forth quarter 1995
Worst quarter return: (2.9%) duing forth quarter 1994
Mid-Term Bond Fund:
[BAR CHART]
1994 (3.7%)
1995 16.3%
1996 3.9%
1997 7.3%
1998 6.4%
1999 1.4%
Best quarter return: 6.1% during second quarter 1995
Worst quarter return: (3.0%) during first quarter 1994
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<PAGE>
Short-Term Bond Fund:
[BAR CHART]
1994 1.4%
1995 7.7%
1996 4.9%
1997 6.0%
1998 5.7%
1999 4.2%
Best quarter return: 2.6% during forth quarter 1995
Worst quarter return: (0.3%) during third quarter 1994
Money Market Fund:
[BAR CHART]
1990 6.8%
1991 4.4%
1992 3.3%
1993 2.9%
1994 4.1%
1995 5.8%
1996 5.3%
1997 5.5%
1998 5.4%
1999 5.2%
Best quarter return: 2.0 during forth quarter 1990
Worst quarter return: (0.7%) during third quarter 1993
Average Annual Total Returns (for periods ended December 31, 1999)
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The table below shows the average annual total returns of each Fund for the
past one, five and ten years, if the Fund was operating for those periods, and
the return for the period of the Fund's operations.
The table indicates the risks of investing in the Funds by comparing, for the
same periods, each Fund's returns to those of a broad-based, unmanaged index,
or to Treasury Bills for money market investments. A Fund's past performance
does not necessarily indicate how it will perform in the future.
The average annual total returns shown do not include charges against the
assets of the Separate Accounts that purchase Fund shares. If these charges
were reflected, returns would be less than those shown.
-7-
<PAGE>
<TABLE>
<CAPTION>
Past Past Past For Life
Fund/Comparative Index(es) One Year Five Years Ten Years of Fund*
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<S> <C> <C> <C> <C>
Equity-Index Fund....................... 20.6% 28.2% N/A 21.0%
S&P 500 Index.......................... 21.0% 28.6% 21.4%
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All America Fund**...................... 25.8% 26.1% 16.4% 17.3%
S&P 500 Index(1)....................... 21.0% 28.6% 18.2% 18.9%
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Mid-Cap Equity Index Fund............... N/A N/A N/A 11.8%
S&P MidCap 400 Index(2)................ 11.8%
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Aggressive Equity Fund.................. 43.3% 23.7% N/A 21.9%
Russell 2000 Index(3).................. 21.3% 16.7% 14.3%
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Composite Fund.......................... 15.2% 16.2% 12.0% 12.8%
S&P 500 Index.......................... 21.0% 28.6% 18.2% 18.9%
Lehman Brothers Gov't./Corp. Bond
Index(4).............................. (2.2)% 7.6% 7.7% 9.1%
90-day Treasury Bill Rate.............. 4.7% 5.2% 5.1% 5.7%
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Bond Fund............................... (1.9)% 7.5% 7.6% 8.3%
Lehman Brothers Gov't./Corp. Bond
Index................................. (2.2)% 7.6% 7.7% 9.1%
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Mid-Term Bond Fund...................... 1.4% 6.9% N/A 5.5%
Salomon Brothers 3-7 Year Bond
Index(5).............................. 1.0% 7.2% 5.8%
- -------------------------------------------------------------------------------
Short-Term Bond Fund.................... 4.2% 5.7% N/A 5.0%
Salomon Brothers 1-3 Year Bond
Index(5).............................. 3.3% 6.6% 5.5%
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Money Market Fund....................... 5.1% 5.4% 5.2% 5.7%
90-day Treasury Bill Rate.............. 4.7% 5.2% 5.1% 5.7%
7-day current yield for period ended
12/28/99 was 5.89%
7-day effective yield (reflecting the
compounding of interest) for period
ended 12/28/99 was 6.06%
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</TABLE>
N/A = Not applicable
* The Funds commenced operations on the following dates: All America,
Composite, Bond and Money Market Funds -- January 1, 1985; Equity Index,
Mid-Term Bond and Short-Term Bond Funds -- February 5, 1993; Aggressive
Equity Fund -- May 2, 1994; and Mid-Cap Equity Index Fund -- May 3, 1999.
** Prior to May 2, 1994, the All America Fund was known as the Stock Fund, had
a different investment objective and did not have any subadvisers.
(1) The S&P 500 Index is the Standard & Poor's Composite Index of 500 Stocks,
a market value-weighted index of the common stock prices of companies
included in the S&P 500.
(2) The S&P MidCap 400 Index is the Standard & Poor's MidCap 400 Index, a
market value-weighted index of 400 stocks issued by U.S. companies with
medium market capitalizations.
(3) The Russell 2000 Index is a market capitalization-weighted index of common
stock prices of the smallest 2000 companies in the Russell 3000, generally
with capitalizations of $1 billion or less.
(4) The Lehman Brothers Government/Corporate Bond Index is an index of U.S.
Government and corporate bond prices of investment grade bonds with
maturities greater than one year and face values over $1 million.
(5) The Salomon Brothers Bond Index, for 1-3 years and for 3-7 years, is a
market capitalization-weighted index of Treasury, Agency, mortgage and
corporate bonds in the Salomon Brothers Broad Investment-Grade Bond Index
with the same maturities and values of $25-$50 million (at least $200
million for mortgage-backed bonds).
-8-
<PAGE>
MANAGEMENT OF THE FUNDS
The Adviser
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Mutual of America Capital Management Corporation, 320 Park Avenue, New York,
New York 10022 (the Adviser or Capital Management) is the investment adviser
for the Funds of the Investment Company. The Adviser had total assets under
management of approximately $8.1 billion at December 31, 1999. As Adviser,
Capital Management:
. places orders for the purchase and sale of
securities,
. engages in securities research,
. makes recommendations to and reports to the
Investment Company's Board of Directors,
. supplies administrative, accounting and
recordkeeping services for the Funds, and
. provides the office space, facilities, equipment,
material and personnel necessary to perform its
duties.
For its investment management services, the Adviser receives compensation from
each Fund at an annual rate of the Fund's net assets, calculated as a daily
charge. These annual rates, which were applicable during 1999, are:
. All America, Composite, Bond, Mid-Term Bond and
Short-Term Bond Funds -- .50%
. Aggressive Equity Fund -- .85%
. Equity Index and Mid-Cap Equity Index Funds --
.125%
. Money Market Fund -- .25%
The Adviser voluntarily limits the expenses of each Fund, other than for
brokers' commissions, transfer taxes and other fees relating to portfolio
transactions, to the amount of the investment advisory fee paid by the Fund to
the Adviser. The Adviser may discontinue this expense limitation at any time.
Subadvisers for a Portion of the All America Fund
- --------------------------------------------------------------------------------
The Adviser has delegated its investment advisory responsibilities for a
portion of the All America Fund to two Subadvisers. Each Subadviser provides
investment advice for approximately 10% of the assets of the All America Fund.
The Adviser pays the Subadvisers for their advisory services to the All America
Fund.
. Fred Alger Management, Inc., One World Trade
Center, New York, New York 10048, is a small
capitalization growth adviser for its portion of
the All America Fund. It provides investment
management services to institutional, corporate and
individual clients, including other registered
management investment companies. At December 31,
1999, Alger Management had assets under management
of approximately $17.4 billion.
. Oak Associates, Ltd., 3875 Embassy Parkway, Suite
250, Akron, Ohio 44333, is a mid- and large
capitalization growth adviser for its portion of
the All America Fund. It provides investment
management services for individual and corporate
clients, primarily in connection with retirement
plans. At December 31, 1999, Oak Associates had
assets under management of approximately $21.3
billion.
-9-
<PAGE>
Portfolio Managers
- --------------------------------------------------------------------------------
The person(s) primarily responsible for the day-to-day management of the Funds'
investment portfolios are listed below. No information is given for the Money
Market Fund because of the type of investments it makes. No information is
given for the Equity Index Fund, the Indexed Assets of the All America Fund or
the Mid-Cap Equity Index Fund, because the investment objective for each is to
replicate the performance of an index.
All America Fund
Thomas P. Larsen, Executive Vice President of the Adviser, is responsible for
managing the Adviser's portions of the actively managed assets of the Fund. Mr.
Larsen joined the Adviser in June 1998 from his position as Senior Vice
President of Desai Capital Management. He has almost 30 years of experience in
selecting securities for and managing equity portfolios.
David D. Alger and Selai Khoo are primarily responsible for the day-to-day
management of the Alger Management portion of the Fund. Mr. Alger, President
and Chief Executive Officer of Alger Management, has been employed by Alger
Management since 1971 and has been President since 1995, and he serves as
portfolio manager for other mutual funds and investment accounts managed by
Alger Management. Ms. Khoo has been employed by Alger Management since 1989, as
a senior research analyst until 1995 and as a Senior Vice President and
portfolio manager since 1995.
James D. Oelschlager is the portfolio manager of the Oak Associates portion of
the Fund. Since establishing Oak Associates in 1985, Mr. Oelschlager has served
as its portfolio manager. Previously, he served as the Assistant Treasurer of
Firestone Tire & Rubber Company, where he was directly responsible for the
management of the company's pension assets. Mr. Oelschlager is assisted with
portfolio management responsibilities by Donna Barton, trading, Margaret
Ballinger, new accounts, and Doug MacKay, equity research. These individuals
have combined experience of over seventy years in the investment business and
play a key role in the day-to-day management of the firm's portfolios.
Aggressive Equity Fund
Thomas P. Larsen, Executive Vice President of the Adviser, has responsibility
for managing the Fund. Mr. Larsen, who has almost 30 years of experience in
selecting securities for and managing equity portfolios, joined the Adviser in
June 1998 and before that was Senior Vice President of Desai Capital
Management.
Composite Fund
Thomas P. Larsen, Executive Vice President of the Adviser, is responsible for
managing the equity portion of the Fund. Mr. Larsen, who joined the Adviser in
June 1998 and whose most recent prior position was as Senior Vice President of
Desai Capital Management. He has almost 30 years of experience in selecting
securities for and managing equity portfolios.
Andrew L. Heiskell, Executive Vice President of the Adviser, is responsible for
managing the fixed income portion of the Fund. Mr. Heiskell has more than 30
years of experience in selecting securities for and managing fixed-income
portfolios.
Bond Fund, Mid-Term Bond Fund and Short-Term Bond Fund
Andrew L. Heiskell, Executive Vice President of the Adviser, has responsibility
for setting the fixed income investment strategy and overseeing the day-to-day
operations of the Bond Fund, the Mid-Term Bond Fund and the Short-Term Bond
Fund. He has been the portfolio manager for the Bond Fund since February 1991
and of the Mid-Term and Short-Term Bond Funds since their inception in 1993.
Mr. Heiskell has more than 30 years of experience in selecting securities for
and managing fixed-income portfolios.
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<PAGE>
DETAILS ABOUT HOW OUR FUNDS INVEST AND RELATED RISKS
Investment Objectives and Strategies
- --------------------------------------------------------------------------------
Equity Index Fund: The investment objective of the Equity Index Fund is to
provide investment
results that correspond to the performance of the S&P 500 Index.
The Fund seeks to achieve its objective primarily by:
. Purchasing shares of the 500 common stocks that are
included in the S&P 500 Index.
.Stocks are selected in the order of their
weightings in the S&P 500 Index, beginning with
the heaviest weighted stocks.
.The percentage of the Fund's assets invested in
each of the selected stocks will be approximately
the same as the percentage the stock represents
in the S&P 500 Index.
.The Fund attempts to be fully invested at all
times, and at least 80% of the Fund's net assets
will be invested in the stocks that comprise the
S&P 500 Index.
. Purchasing futures contracts on the S&P 500 Index
and options on futures contracts on the S&P 500
Index to invest cash prior to the purchase of
common stocks, in an attempt to have the Fund's
performance more closely correlate with the
performance of the S&P 500 Index.
The Adviser uses a computer program to determine which stocks are to be
purchased or sold to copy the S&P 500 Index. From time to time, the Fund makes
adjustments in its portfolio (rebalances) because of changes in the composition
of the S&P 500 Index or in the valuations of the stocks within the Index
relative to other stocks within the Index.
The Fund's investment performance may not precisely duplicate the performance
of the S&P 500 Index, due to cash flows in and out of the Fund and investment
timing considerations. The Fund also pays investment advisory expenses that are
not applicable to an unmanaged index such as the S&P 500 Index.
All America Fund: The investment objective of the All America Fund is to
outperform the S&P 500 Index by investing in a diversified
portfolio of primarily common stocks.
At least 65% of the All America Fund's total assets will be invested in equity
securities under normal market conditions. The issuers of at least 80% of the
Fund's total assets will be United States corporations or entities.
Indexed Assets. The Fund invests approximately 60% of its assets to provide
investment results that correspond to the performance of the S&P 500 Index.
This portion of the All America Fund is called the Indexed Assets. The Fund
invests Indexed Assets in the 500 common stocks included in the S&P 500 Index
and in futures contracts on the S&P 500 Index. The Fund attempts to match the
weightings of stocks in the Indexed Assets with the weightings of those stocks
in the S&P 500 Index, and it periodically rebalances the Indexed Assets to
maintain those weightings.
Active Assets. The Fund invests approximately 40% of its assets to seek to
achieve a high level of total return, through both appreciation of capital and,
to a lesser extent, current income, by means of a diversified portfolio of
primarily common stocks with a broad exposure to the market. The Adviser and
two Subadvisers actively manage this portion of the All America Fund, which is
called the Active Assets.
..............................................................
Standard & Poor's(R) (S&P(R)) does not sponsor,
endorse, sell or promote the Equity Index Fund, All
America Fund or Mid-Cap Equity Index Fund. Standard &
Poor's, S&P, the S&P 500 Index and the S&P MidCap 400
Index are trademarks of The McGraw-Hill Companies,
Inc. and have been licensed for use by the Investment
Company. Standard & Poor's has no obligation or
liability for the sale or operation of the Equity
Index Fund, All America Fund or Mid-Cap Equity Index
Fund and makes no representation as to the
advisability of investing in the Funds.
-11-
<PAGE>
The Fund tries to maintain, to the extent possible, approximately equal amounts
in each segment of the Active Assets. The Adviser periodically rebalances
assets in the All America Fund to retain the approximate 60%/40% relationship
between Indexed Assets and Active Assets, based on then current market values.
Adviser -- Small Capitalization Value Stocks. The Adviser generally invests in
stocks that it considers undervalued and with the potential for above average
investment returns, issued by companies with small market capitalizations. Some
of the companies whose stocks the Adviser selects may have limited Wall Street
coverage and low institutional ownership, which may make the stocks more
difficult to sell in certain market conditions.
. The Adviser seeks securities with a depressed
valuation compared to their previous valuations or
compared to a universe of peer companies. The
Adviser determines depressed valuation primarily
through consideration of earnings, cash flow or net
equity.
. Issuers must have executive management that the
Adviser considers strong and capable of executing a
clear business strategy for the company.
The Adviser may at times actively trade the securities in this segment of the
All America Fund, depending on market conditions.
Adviser -- Large Capitalization Value Stocks. The Adviser invests this portion
of Active Assets in stocks it considers to be of high quality with lower than
average price volatility and low price/earning ratios, issued by companies with
large market capitalizations. Companies generally will have:
. below market debt levels,
. earnings growth of 10% or more,
. current yield greater than the average of the S&P
500, and
. market capitalization not less than that of any
company included in the S&P Barra Value Index,
updated quarterly.
The Adviser may at times actively trade the securities in this segment of the
All America Fund, depending on market conditions.
Fred Alger Management, Inc. -- Small Capitalization Growth Stocks. This
Subadviser invests in stocks that it considers to be fundamentally sound with
the potential for strong growth and for earnings in excess of market
expectations, issued by companies with small market capitalizations.
. The securities of these companies often are traded
in the over-the-counter market.
. Except during temporary defensive periods, at least
65% of the assets in the Fred Alger portfolio will
be invested in equity securities of companies that,
at the time of the Fund's purchase, have total
market capitalization within the range of
capitalization of the companies included in the
Russell 2000 Growth Index or the S&P SmallCap 600
Index, updated quarterly. During defensive periods,
Fred Alger may not achieve the investment objective
for its portion of the All America Fund.
Fred Alger uses a bottom-up approach in selecting stocks for its portion of the
Fund. Through in-house research by analysts who are organized according to
industry groups, it develops stock selection recommendations that are presented
to executive officers and portfolio managers for evaluation and discussion. The
portfolio manager for the Fred Alger portion of the Fund then determines the
individual stocks that are appropriate for purchase. Fred Alger actively trades
the securities in its portion of the All America Fund, and its portfolio
turnover rate generally will be higher than the portfolio turnover rate for the
other portions of the Active Assets.
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<PAGE>
Oak Associates, Ltd. -- Mid- and Large Capitalization Growth Stocks. This
Subadviser invests in mid- and large capitalization stocks, which often have
low current income and the potential for significant growth. Its approach is
to:
. monitor 400 stocks,
. at any one time to invest in approximately 15-25
common stocks without regard for market industry
weighting, and
. usually hold securities that have appreciated in
value, rather than selling them to realize capital
gains.
Oak Associates identifies industries it believes are attractive from a long-
term perspective, based on the direction of interest rates, the overall stock
market environment, the inflation rate and evolving relationships of economic
sectors. In selecting individual stocks, Oak Associates evaluates companies'
growth prospects and utilizes relative valuation measures such as price to
earnings ratio as compared to long-term growth rate, historical levels and the
S&P 500 Index.
Active trading of the Active Assets, if it occurs, will result in higher
transaction costs for the Fund.
Mid-Cap Equity Index Fund: The investment objective of the Mid-Cap Equity Index
Fund is to
provide investment results that correspond to the
performance of the S&P MidCap 400 Index.
The Fund seeks to achieve its objective primarily by:
. Purchasing shares of the 400 common stocks that are
part of the S&P MidCap 400 Index.
.Stocks are selected in the order of their
weightings in the S&P MidCap 400 Index, beginning
with the heaviest weighted stocks.
.The percentage of the Fund's assets invested in
each of the selected stocks will be approximately
the same as the percentage the stock represents
in the S&P MidCap 400 Index.
.The Fund attempts to be fully invested at all
times, and at least 80% of the Fund's net assets
will be invested in the stocks that comprise the
S&P MidCap 400 Index.
. Purchasing futures contracts on the S&P MidCap 400
Index and options on futures contracts on the S&P
400 Index to invest cash prior to the purchase of
common stocks, in an attempt to have the Fund's
performance more closely correlate with the
performance of the S&P MidCap 400 Index.
The Adviser uses a computer program to determine which stocks are to be
purchased or sold to copy the S&P MidCap 400 Index. From time to time, the Fund
makes adjustments in its portfolio (rebalances) because of changes in the
composition of the S&P MidCap 400 Index or in the valuations of the stocks
within the Index relative to other stocks within the Index.
There is a risk that the Fund's investment performance may not precisely
duplicate the performance of the S&P MidCap 400 Index, due to cash flows in and
out of the Fund and investment timing considerations. The Fund also pays
investment advisory expenses that are not applicable to an unmanaged index such
as the S&P MidCap 400 Index.
-13-
<PAGE>
Aggressive Equity Fund: The investment objective of the Aggressive Equity Fund
is capital appreciation.
The Fund invests in growth stocks and value stocks, and the Adviser determines
the percentage of the Fund's assets invested in growth stocks or value stocks
at any one time. At least 85% of the Aggressive Equity Fund's total assets will
be invested in equity securities under normal market conditions.
. Growth stocks are stocks that the Adviser considers
to have above-average growth potential, based on
earnings, sales or prospective economic or
political changes.
. Value stocks are stocks that the Adviser views as
undervalued, based on the issuer's assets, earnings
or growth potential.
The Adviser uses a "bottom-up" approach in selecting stocks for the Fund (see
definition below). The Adviser continually reviews the universe of companies
with small market capitalization to identify securities with growth or value
characteristics that meet its requirements. In evaluating an individual
security, the Adviser determines the security's valuation relative to other
securities in the same sector or industry.
Some of the stocks the Fund purchases have small market capitalizations and may
be traded-over-the counter instead of on an exchange. During different market
cycles, either growth or value stocks may be out of favor with investors and
may have more market risk (price volatility) than larger capitalization stocks.
Composite Fund: The investment objective of the Composite Fund is to achieve as
high a total rate of return, through both appreciation of capital
and current income, as is consistent with prudent investment risk by
means of a diversified portfolio of common stocks, debt securities
and money market instruments.
The Adviser varies the portion of the Fund's assets invested in each category
of securities, based on economic conditions, the general level of common stock
prices, interest rates and other relevant considerations.
. The Fund invests in publicly-traded common stocks
for long-term growth of capital and, to a lesser
extent, income from dividends.
. It invests in publicly-traded, investment grade
debt securities and money market instruments for
current income.
. At December 31, 1999, the Fund's net assets were
64% invested in equity securities, 34% invested in
fixed-income securities and 2% invested in money
market instruments.
For defensive purposes, the Fund may invest up to 75% of its assets in common
stock and other equity-type securities, or up to 75% of its assets in debt
securities with a remaining maturity of more than one year, or 100% of its
assets in money market instruments.
The Fund's current strategy for its equity investments is to invest in
approximately 75 to 100 stocks, all of which are included in the S&P 500 Index.
. The Fund selects approximately 25 stocks of
companies with the largest market capitalizations
and invests in these stocks in a range by market
weight of 50%-150% of the S&P 500 Index market
weight for these stocks.
. The Adviser selects approximately 50 to 75
additional stocks, based on its stock selection
analysis. The Fund invests in these stocks in a
range by economic sector weighting of 65% to 135%
of the economic sector weightings of the S&P 500
Index.
The Fund's current strategy for its fixed income investments is to invest
primarily in investment grade debt securities of U.S. corporations, the U.S.
Government and U.S. Government agencies. The Adviser manages this portion of
the Composite Fund in substantially the same way as it manages the Bond Fund,
described below.
.........................................................
Definition We Use
-- Bottom-up investing means that the Adviser evaluates an issuer of
securities before purchasing those securities for the Fund, without taking
into account possible changes in the general economy.
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<PAGE>
Bond Fund: The primary investment objective of the Bond Fund is to provide as
high a level of current income over time as is believed to be
consistent with prudent investment risk. A secondary objective is
preservation of shareholders' capital.
The average maturity of the debt securities held by the Bond Fund will vary
according to market conditions and the stage of the interest rate cycle. The
Fund's Adviser anticipates that the average maturity of the Fund's securities
holdings will be between five and ten years. The average maturity for the Bond
Fund will be longer than the average maturity of the debt securities held by
the Mid-Term Bond Fund.
The Fund invests at least 80% of its assets in investment grade debt
obligations issued by U.S. corporations or by the U.S. Government or its
agencies.
. The Fund invests in various types of debt
securities, including bonds, mortgage-backed
securities, zero coupon securities and asset-backed
securities, with ratings that range from AAA to BBB
at the time of purchase.
. The percentage of the Fund's portfolio invested in
corporate securities and the percentage invested in
U.S. Government and agency securities will vary,
depending on market conditions and the Adviser's
assessment of the income and returns available from
corporate securities in relation to the risks of
investing in these securities.
. At December 31, 1999, the Bond Fund had
approximately 15% of its net assets invested in
zero coupon securities and 1.6% of its net assets
in U.S. Government agency mortgage-backed
securities. At that date, the Fund had invested
47.2% of its net assets in obligations rated AAA,
34.8% of its net assets in corporate obligations
rated BBB and 6.7% of its net assets in corporate
obligations rated below BBB due to ratings
downgrades subsequent to purchase by the Fund.
The Adviser uses a "bottom-up" approach in selecting debt securities for the
Fund (see definition on page 14). The Adviser's approach generally is to
purchase securities for income. In selecting an individual security, it reviews
historical financial measures and considers the price and yield relationship to
other securities to determine a proper relative value for the security.
The Fund does not generally purchase and sell securities in anticipation of
interest rate changes in the economy. The Adviser may sell a security that it
considers to have become overvalued relative to alternative investments, and
reinvest in an alternative security.
Mid-Term Bond Fund: The primary investment objective of the Fund is to provide
as high a level of
current income over time as is believed to be consistent with
prudent investment risk. A secondary objective is preservation
of shareholders' capital. The average maturity of the Fund's
securities holdings will be between three and seven years.
The Fund invests at least 80% of its assets in investment grade debt
obligations issued by United States corporations or issued by the U.S.
Government or its agencies.
. The Fund invests in various types of debt
securities, including bonds, mortgage-backed
securities, zero coupon securities and asset-backed
securities, with ratings that range from AAA to
BBB.
. The percentage of the Fund's portfolio invested in
corporate securities and the percentage invested in
U.S. Government and agency securities will vary,
depending on market conditions and the Adviser's
assessment of the income and returns available from
corporate securities in relation to the risks of
investing in these securities.
. At December 31, 1999, the Mid-Term Bond Fund had no
investment in zero coupon securities and
approximately 16% of its net assets in U.S.
Government agency mortgage-backed securities. At
that date, the Fund had invested 49.6% of its net
assets in obligations rated AAA, 31.5% in corporate
obligations rated BBB and 5.6% in obligations rated
BB.
The Adviser uses a "bottom-up" approach in selecting securities for the Mid-
Term Bond Fund. Its approach generally is to purchase securities for income. In
selecting an individual security, the Adviser reviews historical financial
measures and considers the price and yield relationship to other securities to
determine a proper relative value for the security.
The Fund generally does not purchase and sell securities in anticipation of
interest rate changes in the economy. The Adviser may sell a security in the
Fund's portfolio that the Adviser considers to have become overvalued relative
to alternative investments.
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<PAGE>
Short-Term Bond Fund: The primary investment objective of the Fund is to
provide as high a level
of current income over time as is believed to be consistent
with prudent investment risk. A secondary objective is
preservation of shareholders' capital. The average maturity of
the Fund's securities holdings will be between one and three
years.
The Fund invests at least 80% of its assets in investment grade debt
obligations issued by United States corporations or by the U.S. Government or
its agencies and in money market instruments of the type that the Money Market
Fund purchases.
. At times, the Fund may invest a significant portion
of its assets in mortgage-backed securities.
. At December 31, 1999, the Short-Term Bond Fund had
approximately 4% of its net assets in U.S.
Government securities and 64% of its net assets in
U.S. Government agency mortgage-backed securities.
Most of the mortgage-backed securities the Fund purchases are considered to be
U.S. Government agency securities, with issuers such as Ginnie Mae and Fannie
Mae. U.S. Government and agency securities have little financial risk, but
mortgage-backed securities do have market risk and the prepayment risks
specific to mortgage-backed securities. When interest rates change, mortgage-
backed securities may prepay at a faster or slower rate than originally
anticipated, which may negatively affect their yield and price.
Money Market Fund: The investment objective of the Fund is to realize high
current income to the
extent consistent with the maintenance of liquidity, investment
quality and stability of capital.
In selecting specific investments for the Fund, the Adviser seeks securities or
instruments with the highest yield or income that meet the following
requirements.
. The Fund invests only in money market instruments
and other short-term debt securities including
commercial paper issued by U.S. corporations and
Treasury securities issued by the U.S. Government.
At December 31, 1999, the Fund was 100% invested in
commercial paper.
. All of the securities the Fund purchases have a
rating in one of the two highest rating categories
from at least two nationally recognized rating
agencies, and sustantially all (at least 95%) have
a rating in the highest category from at least two
of these rating agencies.
. At the time of purchase, a security must mature in
13 months or less (or 25 months for U.S. Government
securities). The dollar-weighted average maturity
of the Fund's securities must be 90 days or less.
. The Fund will not invest more than 5% of its total
assets in the securities of any one issuer, other
than U.S. Government or agency securities.
The Fund does not maintain a stable net asset value. The Fund does not declare
dividends daily, and income the Fund earns on its portfolio holdings increases
the Fund's net asset value per share until the Fund declares a dividend. At
least yearly the Fund distributes investment income to its shareholders, and
the Fund's net asset value per share declines as a result of the distribution.
The Fund uses the amortized cost method of valuing securities that have a
remaining term to maturity of 60 days or less. Because the Fund uses market
value for securities that mature in more than 60 days, the Fund does not invest
more than 20% of its assets in these securities, to limit the possibility of a
decline in the Fund's net asset value.
An investment in the Fund has little market or financial risk but a relatively
high level of current income volatility, because its portfolio holdings are
high quality instruments that have a short time to maturity. Investments in the
Money Market Fund are not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other U.S. Government agency.
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<PAGE>
Risks of Investing in Stock Funds
- --------------------------------------------------------------------------------
When you invest in a stock fund, and for the equity portion of a composite
fund, you should consider that:
. The fund is subject to market risk -- the value of your investment will go
up or down, depending on movements in the stock markets. As a result, you
may lose money from your investment, or your investment may increase in
value.
. The investment results for a particular Fund may be better or worse than
the results for the stock markets taken as a whole, depending on the type
of securities in which the Fund invests.
. The investment results for a particular Fund may be better or worse than
the results of other funds that invest in the same types of securities. In
other words, stock selection by a Fund's investment adviser(s) will impact
the Fund's performance.
. The prices and investment performance of stocks that are issued by
companies with smaller market capitalizations may fluctuate more than the
prices and investment performance of stocks that are issued by companies
with larger market capitalizations.
. A Fund may have more difficulty selling a small cap stock or any stock
that trades "over-the-counter", as compared to larger capitalization
stocks or stocks that trade on a national or regional stock exchange.
. Value stocks and growth stocks usually have different investment results,
and either investment style may become out of favor with stock investors
at a given time.
Risks of Investing in Bond Funds
- --------------------------------------------------------------------------------
When you invest in a bond fund, and for the debt securities portion of a
composite fund, you should consider that:
. The fund has market risk -- the value of your investment will go up or
down depending on movements in the bond markets. As a result, you may lose
money from your investment, or your investment may increase in value.
. The investment results for a particular Fund may be better or worse than
the results for the comparable bond market taken as a whole, depending on
the type of debt securities in which the Fund invests.
. The investment results for a particular Fund may be better or worse than
the results of other funds that invest in the same types of securities. In
other words, security selection by a Fund's investment adviser will impact
the Fund's performance.
. Changes in prevailing interest rates usually will impact the value of debt
securities. The longer the time period before the security matures (or is
expected to be redeemed), the more impact interest rate changes will have
on the price of the bond. When interest rates rise, the prices of
outstanding debt securities tend to fall. When interest rates fall, the
prices of outstanding debt securities tend to rise.
. Mortgage-backed securities or certificates are subject to prepayment or
extension risk when interest rates change. When interest rates fall, the
underlying mortgages may be prepaid at a faster rate than previously
assumed in pricing the mortgage-backed security, which would shorten the
period to maturity of the security. When interest rates rise, the
underlying mortgages may be prepaid at a slower rate than previously
assumed, which would lengthen the period to maturity of the security.
. In periods of economic uncertainty, investors may favor U.S. government
debt securities over debt securities of corporate issuers, in which case
the value of corporate debt securities would decline in relation to the
value of U.S. government debt securities.
. Zero coupon securities and discount notes do not pay interest, and they
may fluctuate more in market value and be more difficult for a Fund to
resell during periods of interest rate changes than comparable securities
that pay interest in cash at regular intervals. In addition, the Fund may
lose a portion of the principal amount of a zero coupon security if it
sells the security after an increase in interest rates.
. Unrated securities or securities rated below investment grade may be
subject to a greater market risk than higher rated (lower yield)
securities. Since lower rated and unrated securities are generally issued
by corporations that are not as creditworthy or financially secure as
issuers of higher rated securities, there is a greater risk that issuers
of lower rated (higher yield) securities will not be able to pay the
principal and interest due on such securities, especially during periods
of adverse economic conditions.
. The market for debt securities may be subject to significant volatility,
and volatility has generally increased in recent years.
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<PAGE>
Specific Investments or Strategies, and Related Risks
- --------------------------------------------------------------------------------
This section provides additional information about certain of the principal
investment strategies used by the Funds and additional investment strategies
the Funds may use from time to time.
Options and Futures Contracts
Investment Strategies. All of the Funds may purchase and sell put and call
options contracts, futures contracts and options on futures contracts.
Depending on the types of securities in which a Fund invests, the contracts
relate to fixed-income securities (including U.S. Government and agency
securities), equity securities or indexes of securities. All contracts must
relate to U.S. issuers or U.S. stock indexes.
A put option on a security gives the Fund the right to sell the security at a
certain price. The purchase of a put option on a security protects the Fund
against declines in the value of the security. A Fund may buy a put option
contract on a security only if it holds the security in its portfolio.
A call option on a security gives the Fund the right to buy the security at a
certain price. The purchase of a call option on a security protects the Fund
against increases in the value of the security that it is considering
purchasing. A Fund may sell a call option contract on a security only if it
holds the security in its portfolio (a covered call).
A Fund may use futures contracts, or options on futures contracts, to protect
against general increases or decreases in the levels of securities prices:
. When a Fund anticipates a general decrease in the
market value of portfolio securities, it may sell
futures contracts. If the market value falls, the
decline in the Fund's net asset value may be
offset, in whole or in part, by corresponding gains
on the futures position.
. When a Fund projects an increase in the cost of
fixed-income securities or stocks to be acquired in
the future, the Fund may purchase futures contracts
on fixed-income securities or stock indexes. If the
hedging transaction is successful, the increased
cost of securities subsequently acquired may be
offset, in whole or in part, by gains on the
futures position.
Risks from Options and Futures Contracts. Risks to a Fund in options and
futures transactions include:
. The securities held in a Fund's portfolios may not
exactly duplicate the security or securities
underlying the options, futures contracts or
options on futures contracts traded by the Fund,
and as a result the price of the portfolio
securities being hedged will not move in the same
amount or direction as the underlying index,
securities or debt obligation.
. A Fund purchasing an option may lose the entire
amount of the premium plus transaction costs.
. If a Fund has written a covered call option and the
price of the underlying security increases
sufficiently, the option may be exercised. The Fund
will be required to sell the security at a price
below current market value with the loss offset
only by the amount of the premium the Fund received
from writing the option.
Zero Coupon Securities and Discount Notes
The Bond Funds and the fixed income portion of the Composite Fund, as well as
the All America Fund and the Aggressive Equity Fund to the extent they invest
in fixed income securities, may invest in discount notes and zero coupon
securities. Discount notes mature in one year or less from the date of
issuance. Zero coupon securities may be issued by corporations, the U.S.
Government or certain U.S. Government agencies. Discount notes and zero coupon
securities do not pay interest. Instead, they are issued at prices that are
discounted from the principal (par) amount due at maturity.
Risks from Zero Coupon Securities and Discount Notes. Zero coupon securities
and discount notes may fluctuate more in market value and be more difficult for
a Fund to resell during periods of interest rate changes in the economy than
comparable securities that pay interest in cash at regular intervals. The
market values of outstanding debt securities generally decline when interest
rates are rising, and during such periods a Fund may lose more investment
capital if it sells zero coupon securities prior to their maturity date or
expected redemption date than if it sells comparable interest-bearing
securities. In general, the longer the remaining term to maturity or expected
redemption of a security, the greater the impact on market value from rising
interest rates.
-18-
<PAGE>
Redeemable Securities
An issuer of debt securities, including zero coupon securities, often has the
right after a period of time to redeem (call) securities prior to their stated
maturity date, either at a specific date or from time to time. When interest
rates rise, an issuer of debt securities generally is less likely to redeem
securities that were issued at a lower interest rate, or for a lower amount of
original issue discount in the case of zero coupon securities. In such
instance, the period until redemption or maturity of the security may be longer
than the purchaser initially anticipated, and the market value of the debt
security may decline. If an issuer redeems a security when prevailing interest
rates are relatively low, a Fund may be unable to reinvest proceeds in
comparable securities with similar yields.
American Depository Receipts ("ADRs")
ADRs are dollar-denominated receipts that U.S. banks generally issue. An ADR
represents the deposit with the bank of a security of a foreign issuer. ADRs
are publicly traded on exchanges or are traded over-the-counter in the United
States. An ADR has currency risk, because its value is based on the value of
the security issued by a foreign issuer. The All America Fund and Aggressive
Equity Fund intend to invest a small percentage of their total assets in ADRs.
ADRs are subject to many of the same risks as foreign securities, such as
possible:
. unavailability of financial information,
. changes in currency or exchange rates, and
. difficulty by the Adviser or a Subadviser in
assessing economic or political trends in a foreign
country.
Mortgage-Backed Securities
The Bond Funds and the fixed income portion of the Composite Fund, as well as
the All America and Aggressive Equity Funds to the extent they invest in debt
securities, may invest in mortgage-backed securities. These securities
represent interests in pools of mortgage loans, or they may be collateralized
mortgage obligations secured by pools of mortgage loans (CMOs). Holders of
mortgage-backed securities receive periodic payments that consist of both
interest and principal from the underlying mortgages.
Some mortgage-backed securities are issued by private corporations. Mortgage-
backed securities also include securities guaranteed by the Government National
Mortgage Association (Ginnie Maes), securities issued by the Federal National
Mortgage Association (Fannie Maes), and participation certificates issued by
the Federal Home Loan Mortgage Corporation (Freddie Macs). The timely payment
of principal and interest is backed by the full faith and credit of the U.S.
Government (full faith and credit) in the case of Ginnie Maes, but Fannie Maes
and Freddie Macs are not full faith and credit obligations.
Risks from Mortgage-Backed Securities. Characteristics of underlying mortgage
pools will vary, and it is not possible to precisely predict the realized yield
or average life of a particular mortgage-backed security, because of the
principal prepayment feature inherent in the security.
. A decline in interest rates may lead to increased
prepayment of the underlying mortgages, and the
securityholder may have to reinvest proceeds
received at lower yields. Unscheduled or early
payments on the underlying mortgages may shorten
the effective maturity of a mortgage-backed
security and impact the yield and price of the
security.
. An increase in interest rates may lead to
prepayment of the underlying mortgages over a
longer time period than was assumed when the
mortgage-backed security was purchased, and the
securityholder may not receive payments to reinvest
at higher rates of return. Delay in payments on the
underlying mortgages may lengthen the effective
maturity of the security and impact the price and
yield of the security.
. Mortgage-backed securities issued by private
corporations generally will have more credit risk
than securities issued by U.S. Government agencies.
Fannie Mae and Freddie Mac mortgage-backed
securities, which are not full faith and credit
obligations, may have more credit risk than Ginnie
Mae securities.
-19-
<PAGE>
INFORMATION ABOUT FUND SHARES
Pricing of Funds' Shares
- --------------------------------------------------------------------------------
The purchase or redemption price of a Fund share is equal to its net asset
value that we calculate after we receive the purchase or redemption order. A
Fund's net asset value per share is equal to the sum of the value of the
securities it holds plus any cash or other assets (including accrued interest
and dividends), minus all liabilities (including accrued expenses) divided by
the number of shares outstanding. The Adviser determines a Fund's net asset
value as of the close of trading on the New York Stock Exchange on each day the
New York Stock Exchange is open for trading (a Valuation Day).
In determining a Fund's net asset value, the Adviser uses market value. If a
money market security has a remaining maturity of 60 days or less, the Adviser
will use the amortized cost method of valuation to approximate market value
(the Adviser assumes constant proportionate amortization in value until
maturity of any discount or premium).
If there are any equity or debt securities or assets for which market
quotations are not readily available, the Adviser will use fair value pricing,
as determined in good faith by, or under the direction of, the Board of
Directors of the Investment Company or its Valuation Committee.
Purchase of Shares
- --------------------------------------------------------------------------------
The Investment Company offers shares in the Funds, without sales charge, only
to the Insurance Companies for allocation to their Separate Accounts.
Acceptance by an Insurance Company of an order for allocating account balance
to one of the Separate Account Funds constitutes a purchase order for shares of
the corresponding Fund of the Investment Company.
Redemption of Shares
- --------------------------------------------------------------------------------
The Investment Company redeems all full and fractional shares of the Funds for
cash. The redemption price is the net asset value per share we next determine.
We do not impose any deferred sales charge on redemptions.
We pay redemption proceeds normally within seven days of receipt of the
redemption request, unless the Investment Company suspends or delays payment of
redemption proceeds as permitted in accordance with SEC regulations. Acceptance
by an Insurance Company of an order for withdrawal of account balance from one
of the Separate Account Funds constitutes a redemption order for shares of the
corresponding Fund of the Investment Company.
Dividends, Capital Gains Distributions and Taxes
- --------------------------------------------------------------------------------
For each Fund, the Investment Company declares dividends at least annually to
pay out substantially all of the Fund's net investment income (dividends) and
net realized short and long term capital gains (capital gains distributions).
All dividends and capital gains distributions are reinvested in additional
shares of the distributing Fund.
The Investment Company is not subject to Federal income tax on ordinary income
and net realized capital gains that it distributes to shareholders, as long as
the distributions meet Federal tax law requirements for amount and source of
income. Each Fund is treated as a separate corporation for Federal income tax
purposes and must satisfy the tax requirements independently.
The Insurance Companies, through the Separate Accounts, are the shareholders of
the Investment Company's Funds. Under current Federal tax law, the Separate
Accounts do not pay taxes on the net investment income and realized capital
gains they receive through ownership of the Investment Company's shares.
A contractholder or policyowner should refer to the Contract prospectus or
brochure for a summary discussion of the tax consequences for increases in
account balance and distributions under the Contract.
-20-
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand the Funds'
financial performance for the past 5 years, or for the period of a Fund's
operations if shorter. Certain information reflects financial results for a
single Fund share. The total returns in the table represent the rate that an
investor would have earned or lost on an investment in the particular Fund
(assuming reinvestment of all dividends and distributions). This information
has been audited by Arthur Andersen LLP, whose report, along with the
Investment Company's financial statements, are included in the annual report,
which is available upon request.
The total returns shown below do not include charges and expenses imposed at
the Separate Account level. Therefore, the returns do not represent the rate
that a contractholder or policyowner would have earned or lost on the portion
of the account balance allocated to the corresponding Separate Account Fund.
Equity Index Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
------------------------------------
1999 1998 1997 1996 1995
----- ------ ------ ----- ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year....... $2.45 $ 2.08 $ 1.59 $1.35 $ 1.02
----- ------ ------ ----- ------
Income From Investment Operations:
Net Investment Income................... .03 .03 .03 .03 .02
Net Gains or Losses on Securities
(realized and unrealized).............. .48 .55 .50 .27 .36
----- ------ ------ ----- ------
Total From Investment Operations....... .51 .58 .53 .30 .38
----- ------ ------ ----- ------
Less Dividend Distributions
From net investment income.............. (.03) (.03) (.03) (.03) (.03)
From capital gains...................... (.05) (.17) (.01) (.03) (.02)
----- ------ ------ ----- ------
Total Distributions.................... (.08) (.20) (.04) (.06) (.05)
----- ------ ------ ----- ------
Net Asset Value, End of Year............. $2.88 $ 2.45 $ 2.08 $1.59 $ 1.35
===== ====== ====== ===== ======
Total Return............................. 20.6% 28.6% 33.1% 22.7% 36.6%
Ratios/Supplemental Data
Net Assets, End of Year ($ millions)..... $ 583 $ 411 $ 237 $ 102 $ 43
Ratio of Expenses to Average Net Assets.. .13% .13% .13% .13% .13%
Ratio of Net Income to Average Net
Assets.................................. 1.34% 1.57% 1.86% 2.19% 2.50%
Portfolio Turnover Rate(a)............... 6.89% 11.68% 14.17% 5.85% 13.99%
</TABLE>
-21-
<PAGE>
All America Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year..... $ 2.90 $ 2.71 $ 2.44 $ 2.13 $ 1.61
------ ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income................. .02 .03 .03 .03 .03
Net Gains or Losses on Securities
(realized and unrealized)............ .72 .54 .62 .41 .56
------ ------ ------ ------ ------
Total From Investment Operations..... .74 .57 .65 .44 .59
------ ------ ------ ------ ------
Less Dividend Distributions:
From net investment income............ (.03) (.03) (.03) (.03) (.03)
From capital gains.................... (.24) (.35) (.35) (.10) (.04)
------ ------ ------ ------ ------
Total Distributions.................. (.27) (.38) (.38) (.13) (.07)
------ ------ ------ ------ ------
Net Asset Value, End of Year........... $ 3.37 $ 2.90 $ 2.71 $ 2.44 $ 2.13
====== ====== ====== ====== ======
Total Return........................... 25.8% 21.3% 26.8% 20.7% 36.6%
Ratios/Supplemental Data
Net Assets, End of Year ($ millions)... $ 886 $ 732 $ 700 $ 637 $ 533
Ratio of Expenses to Average Net
Assets................................ .50% .50% .50% .50% .50%
Ratio of Net Income to Average Net
Assets................................ .73% .84% .98% 1.26% 1.57%
Portfolio Turnover Rate(a)............. 30.03% 40.47% 28.64% 28.35% 33.63%
</TABLE>
Mid-Cap Equity Index Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended
December 31, 1999*
------------------
<S> <C>
Net Asset Value, Beginning of Period........................ $ 1.00
------
Income From Investment Operations:
Net Investment Income...................................... .01
Net Gains or Losses on Securities (realized and
unrealized)............................................... .11
------
Total From Investment Operations.......................... .12
------
Less Dividend Distributions
From net investment income................................. (.01)
From capital gains......................................... --
------
Total Distributions....................................... (.01)
------
Net Asset Value, End of Year................................ $ 1.11
======
Total Return................................................ 11.8%**
Ratios/Supplemental Data
Net Assets, End of Year ($ millions)........................ $ 34
Ratio of Expenses to Average Net Assets..................... .13%***
Ratio of Net Income to Average Net Assets................... 1.70%***
Portfolio Turnover Rate(a).................................. 31.67%
</TABLE>
- ------
*The Fund commenced operations on May 3, 1999.
**Total Return is not annualized.
***Annualized.
-22-
<PAGE>
Aggressive Equity Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
-------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------ ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year............................. $ 1.51 $ 1.61 $ 1.47 $ 1.35 $ 1.05
------- ------- ------ ------- -------
Income From Investment Operations:
Net Investment Income............ -- -- .01 .01 .01
Net Gains or Losses on Securities
(realized and unrealized)....... .65 (.09) .31 .36 .39
------- ------- ------ ------- -------
Total From Investment
Operations..................... .65 (.09) .32 .37 .40
------- ------- ------ ------- -------
Less Dividend Distributions:
From net investment income....... -- -- (.01) (.01) (.01)
From capital gains............... -- (.01) (.17) (.24) (.09)
------- ------- ------ ------- -------
Total Distributions............. -- (.01) (.18) (.25) (.10)
------- ------- ------ ------- -------
Net Asset Value, End of Year...... $ 2.16 $ 1.51 $ 1.61 $ 1.47 $ 1.35
======= ======= ====== ======= =======
Total Return...................... 43.3% (5.1)% 21.2% 27.1% 38.2%
Ratios/Supplemental Data
Net Assets, End of Year/Period ($
millions)........................ $ 278 $ 205 $ 287 $ 136 $ 59
Ratio of Expenses to Average Net
Assets........................... .85% .85% .85% .85% .85%
Ratio of Net Income to Average Net
Assets........................... .01% .18% .33% .45% .65%
Portfolio Turnover Rate(a)........ 134.62% 144.05% 80.94% 103.68% 116.52%
</TABLE>
Composite Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------------
1999 1998 1997 1996 1995
------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.... $ 1.78 $ 1.62 $ 1.77 $ 1.81 $ 1.57
------ ------ ------- ------ ------
Income From Investment Operations:
Net Investment Income................ .06 .07 .07 .07 .08
Net Gains or Losses on Securities
(realized and unrealized)........... .21 .17 .24 .14 .27
------ ------ ------- ------ ------
Total From Investment Operations.... .27 .24 .31 .21 .35
------ ------ ------- ------ ------
Less Dividend Distributions:
From net investment income........... (.06) (.07) (.07) (.08) (.08)
From capital gains................... (.08) (.01) (.39) (.17) (.03)
------ ------ ------- ------ ------
Total Distributions................. (.14) (.08) (.46) (.25) (.11)
------ ------ ------- ------ ------
Net Asset Value, End of Year.......... $ 1.91 $ 1.78 $ 1.62 $ 1.77 $ 1.81
====== ====== ======= ====== ======
Total Return.......................... 15.2% 14.5% 17.7% 11.9% 21.9%
Ratios/Supplemental Data
Net Assets, End of Year ($ millions).. $ 364 $ 336 $ 305 $ 283 $ 276
Ratio of Expenses to Average Net
Assets............................... .50% .50% .50% .50% .50%
Ratio of Net Income to Average Net
Assets............................... 3.23% 3.68% 3.57% 3.63% 4.30%
Portfolio Turnover Rate(a)............ 99.41% 73.85% 104.04% 69.79% 76.84%
</TABLE>
-23-
<PAGE>
Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.... $ 1.42 $ 1.43 $ 1.38 $ 1.43 $ 1.27
------ ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income................ .10 .10 .09 .09 .09
Net Gains or Losses on Securities
(realized and unrealized)........... (.12) -- .06 (.04) .16
------ ------ ------ ------ ------
Total From Investment Operations.... (.02) .10 .15 .05 .25
------ ------ ------ ------ ------
Less Dividend Distributions:
From net investment income........... (.10) (.10) (.09) (.09) (.09)
From capital gains................... -- (.01) (.01) (.01) --
------ ------ ------ ------ ------
Total Distributions................. (.10) (.11) (.10) (.10) (.09)
------ ------ ------ ------ ------
Net Asset Value, End of Year.......... $ 1.30 $ 1.42 $ 1.43 $ 1.38 $ 1.43
====== ====== ====== ====== ======
Total Return.......................... (1.9)% 7.2% 10.4% 3.5% 19.4%
Ratios/Supplemental Data
Net Assets, End of Period ($
millions)............................ $ 466 $ 465 $ 414 $ 329 $ 311
Ratio of Expenses to Average Net
Assets............................... .50% .50% .50% .50% .50%
Ratio of Net Income to Average Net
Assets............................... 7.11% 6.73% 6.69% 6.70% 6.64%
Portfolio Turnover Rate(a)............ 29.32% 21.60% 57.71% 30.14% 41.93%
</TABLE>
Mid-Term Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.... $ .91 $ .90 $ .90 $ 1.00 $ .91
------ ------ ------ ------- ------
Income From Investment Operations:
Net Investment Income................ .05 .05 .05 .14 .06
Net Gains or Losses on Securities
(realized and unrealized)........... (.04) .01 .01 (.10) .09
------ ------ ------ ------- ------
Total From Investment Operations.... .01 .06 .06 .04 .15
------ ------ ------ ------- ------
Less Dividend Distributions:
From net investment income........... (.05) (.05) (.06) (.14) (.06)
From capital gains................... -- -- -- -- --
------ ------ ------ ------- ------
Total Distributions................. (.05) (.05) (.06) (.14) (.06)
------ ------ ------ ------- ------
Net Asset Value, End of Year.......... $ .87 $ .91 $ .90 $ .90 $ 1.00
====== ====== ====== ======= ======
Total Return.......................... 1.4% 6.4% 7.3% 3.9% 16.3%
Ratios/Supplemental Data
Net Assets, End of Year ($ millions).. $ 13 $ 15 $ 15 $ 13 $ 24
Ratio of Expenses to Average Net
Assets............................... .50% .50% .50% .50% .50%
Ratio of Net Income to Average Net
Assets............................... 5.75% 5.76% 5.87% 5.80% 5.73%
Portfolio Turnover Rate(a)............ 10.28% 23.09% 12.89% 144.55% 73.72%
</TABLE>
-24-
<PAGE>
Short-Term Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ----- -----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year....... $ 1.03 $ 1.02 $ 1.03 $1.02 $1.00
------ ------ ------ ----- -----
Income From Investment Operations:
Net Investment Income................... .09 .05 .07 .04 .06
Net Gains or Losses on Securities
(realized and unrealized).............. (.04) .01 (.01) .01 .02
------ ------ ------ ----- -----
Total From Investment Operations....... .05 .06 .06 .05 .08
------ ------ ------ ----- -----
Less Dividend Distributions:
From net investment income.............. (.09) (.05) (.07) (.04) (.06)
From capital gains...................... -- -- -- -- --
------ ------ ------ ----- -----
Total Distributions.................... (.09) (.05) (.07) (.04) (.06)
------ ------ ------ ----- -----
Net Asset Value, End of Year............. $ .99 $ 1.03 $ 1.02 $1.03 $1.02
====== ====== ====== ===== =====
Total Return............................. 4.2% 5.7% 6.0% 4.9% 7.7%
Ratios/Supplemental Data
Net Assets, End of Year ($ millions)..... $ 12 $ 22 $ 15 $ 16 $ 3
Ratio of Expenses to Average Net Assets.. .50% .50% .50% .50% .50%
Ratio of Net Income to Average Net
Assets.................................. 5.48% 5.46% 5.81% 5.42% 4.65%
Portfolio Turnover Rate(a)............... 44.68% 91.35% 74.95% 6.68% 16.47%
</TABLE>
Money Market Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.......... $1.18 $1.18 $1.19 $1.18 $1.19
----- ----- ----- ----- -----
Income From Investment Operations:
Net Investment Income...................... .06 .06 .07 .06 .07
Net Gains or Losses on Securities (realized
and unrealized)........................... -- -- -- -- --
----- ----- ----- ----- -----
Total From Investment Operations.......... .06 .06 .07 .06 .07
----- ----- ----- ----- -----
Less: Dividend Distributions From Net
Investment Income.......................... (.05) (.06) (.08) (.05) (.08)
----- ----- ----- ----- -----
Total Distributions....................... (.05) (.06) (.08) (.05) (.08)
----- ----- ----- ----- -----
Net Asset Value, End of Year................ $1.19 $1.18 $1.18 $1.19 $1.18
===== ===== ===== ===== =====
Total Return................................ 5.1% 5.4% 5.5% 5.3% 5.8%
Ratios/Supplemental Data
Net Assets, End of Year ($ millions)........ $ 74 $ 81 $ 68 $ 78 $ 73
Ratio of Expenses to Average Net Assets..... .25% .25% .25% .25% .25%
Ratio of Net Income to Average Net Assets... 4.93% 5.26% 5.32% 5.21% 5.66%
Portfolio Turnover Rate(a).................. N/A N/A N/A N/A N/A
</TABLE>
- ------
N/A = Not Applicable
(a)Portfolio turnover rate excludes all short-term securities.
-25-
<PAGE>
Investment Company
Mutual of America Investment Corporation
Investment Adviser
Mutual of America Capital Management Corporation
Subadvisers for a portion of the All America Fund
Fred Alger Management, Inc.
Oak Associates Ltd.
Independent Auditors
Arthur Andersen LLP
Custodian
The Chase Manhattan Bank
Counsel
Swidler Berlin Shereff Friedman, LLP
The Investment Company sells shares of its Funds only to the Separate Accounts
of Mutual of America Life Insurance Company and The American Life Insurance
Company of New York for the variable accumulation annuity and variable
universal life insurance products they issue.
<PAGE>
Mutual of America Investment Corporation
320 Park Avenue, New York, New York 10022
You May Obtain More Information
- -------------------------------------------------------------------------------
Registration Statement. We have filed with the Securities and Exchange
Commission (the Commission) a Registration Statement about the Investment
Company. The Registration Statement includes this prospectus, a Statement of
Additional Information (the SAI), and exhibits. You may examine and copy the
Registration Statement at the Commission's Public Reference Room in
Washington, DC. You may call 1-800-SEC-0330 to learn about the operation of
the Public Reference Room.
Statement of Additional Information. The SAI contains additional information
about the Investment Company and its Funds. We incorporate the SAI into this
Prospectus by reference.
Semi-annual and Annual Reports. Additional information about the Funds'
investments is available in the Investment Company's annual and semi-annual
reports to shareholders. In the annual reports, you will find a discussion
(for all Funds except the Money Market Fund) of the market conditions and
investment strategies that significantly affected the Funds' performance
during its last fiscal year.
How to obtain the SAI and Reports. You may obtain a free copy of the SAI or of
the Investment Company's most recent annual and semi-annual financial
statements, by:
. writing to us at 320 Park Avenue, New York, NY 10022, Attn: Investment
Company,
or
. calling 1-212-224-1600 and asking for the Investment Company.
The Commission has an Internet web site at http://www.sec.gov. You may obtain
the Investment Company's Registration Statement, including the SAI, and its
semi-annual and annual reports through the Commission's Internet site. You
also may obtain copies of these documents, upon your payment of a duplicating
fee, by writing to the Commission's Public Reference Section, Washington, DC
20549-6009.
Where to direct Questions. If you have questions about the operations of the
Investment Company, you should contact your representative at Mutual of
America Life Insurance Company.
Investment Company Act of 1940 Act File Number 811-5084
- -------------------------------------------------------------------------------
Prospectus dated May 1, 2000
<PAGE>
Mutual of America Investment Corporation
320 Park Avenue, New York, New York 10022
(212) 224-1600
Equity Index Fund Bond Fund
All America Fund Mid-Term Bond Fund
Mid-Cap Equity Index Fund Short-Term Bond Fund
Aggressive Equity Fund Money Market Fund
Composite Fund
Statement of Additional Information
May 1, 2000
This Statement of Additional Information is not a prospectus. You should read
it in conjunction with the Mutual of America Investment Corporation Prospectus
dated May 1, 2000, and you should keep it for future use. We incorporate the
Prospectus by reference into this Statement of Additional Information.
A copy of the Prospectus is available to you at no charge. To obtain a copy,
you may write to the Mutual of America Investment Corporation at the above
address or call the telephone number listed above.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Investment Company's Form of Operations.................................... 2
Investment Strategies and Related Risks.................................... 2
Additional Permitted Investments.......................................... 2
Additional Investment Strategies.......................................... 5
Additional Information about Specific Types of Securities................. 9
Insurance Law Restrictions................................................ 12
Fundamental Investment Restrictions........................................ 13
Non-Fundamental Investment Policies........................................ 13
Management of the Investment Company....................................... 15
Investment Advisory Arrangements........................................... 16
Portfolio Transactions and Brokerage....................................... 18
Purchase, Redemption and Pricing of Shares................................. 20
Taxation of the Investment Company......................................... 21
Distribution Arrangements.................................................. 21
Yield and Performance Information.......................................... 22
Description of Corporate Bond Ratings...................................... 25
Independent Auditors....................................................... 26
Legal Matters.............................................................. 26
Custodian.................................................................. 26
Use of Standard & Poor's Indices........................................... 26
Financial Statements....................................................... 27
</TABLE>
<PAGE>
INVESTMENT COMPANY'S FORM OF OPERATIONS
History and Operating Form
- -------------------------------------------------------------------------------
Mutual of America Investment Corporation (the Investment Company) was formed
on February 21, 1986 as a Maryland corporation. It is a diversified, open-end
management investment company registered under the Investment Company Act of
1940 (the 1940 Act). The Investment Company is a successor to Separate Account
No. 2 of Mutual of America Life Insurance Company (Mutual of America).
The Investment Company issues separate classes (or series) of stock, each of
which represents a separate Fund of investments. There are currently nine
Funds: the Equity Index Fund, All America Fund, Mid-Cap Equity Index Fund,
Aggressive Equity Fund, Composite Fund, Bond Fund, Mid-Term Bond Fund, Short-
Term Bond Fund and Money Market Fund. Prior to May 1, 1994, the All America
Fund was known as the Stock Fund, had different investment objectives and did
not have any subadvisers.
Offering of Shares
- -------------------------------------------------------------------------------
The Investment Company offers Fund shares only to separate accounts of Mutual
of America and Mutual of America's indirect wholly-owned subsidiary, The
American Life Insurance Company of New York (American Life). In this Statement
of Additional Information, Mutual of America and American Life are referred to
as the Insurance Companies and the separate accounts of the Insurance
Companies are referred to as the Separate Accounts.
Contractholders, participants and policyowners of variable annuity contracts
and variable life policies issued by the Insurance Companies allocate their
contributions and premiums to funds of the Separate Accounts. Each Separate
Account has nine Funds that purchase shares in the corresponding Funds of the
Investment Company. The Insurance Companies are the record holders of the
Investment Company Funds' shares.
Description of Shares
- -------------------------------------------------------------------------------
The authorized capital stock of the Investment Company consists of one billion
shares of common stock, $.01 par value. The Investment Company currently has
nine classes of common stock, with each class representing a Fund. The
Investment Company may establish additional Funds and may allocate its
authorized shares either to new classes or to one or more of the existing
classes.
All shares of common stock, of whatever class, are entitled to one vote. The
votes of all classes are cast on an aggregate basis, except that if the
interests of the Funds differ, the voting is on a Fund-by-Fund basis. Examples
of matters that would require a Fund-by-Fund vote are changes in the
fundamental investment policy of a particular Fund and approval of the
Investment Advisory Agreement or a Subadvisory Agreement for the Fund.
The shares of each Fund, when issued, will be fully paid and nonassessable and
will have no preference, preemptive, conversion, exchange or similar rights.
Shares do not have cumulative voting rights.
Each issued and outstanding share in a Fund is entitled to participate equally
in dividends and distributions declared by the Fund and in the net assets of
that Fund upon liquidation or dissolution remaining after satisfaction of
outstanding liabilities. Accrued liabilities that are not allocable to one or
more Funds will generally be allocated among the Funds in proportion to their
relative net assets. In the unlikely event that any Fund incurred liabilities
in excess of its assets, the other Funds could be liable for the excess.
INVESTMENT STRATEGIES AND RELATED RISKS
The Prospectus describes each Fund's principal investment strategy(ies) and
the related risks. You should refer to "Summary of How Our Funds Invest" and
"Details about How Our Funds Invest and Related Risks" in the Prospectus to
learn about those strategies and risks.
Additional Permitted Investments
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The Investment Company's Funds may use investment strategies and purchase
types of securities in addition to those discussed in the Prospectus.
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Equity Index Fund and Mid-Cap Equity Index Fund: In addition to common stocks
and futures contracts, the Funds may invest in:
. money market instruments, and
. U.S. Government and U.S. Government agency obligations.
All America Fund: In addition to common stocks, the Adviser and two
Subadvisers who manage approximately 40% of the net assets of the All America
Fund (the Active Assets) may invest assets in:
. securities convertible into common stocks, including warrants and
convertible bonds,
. bonds,
. money market instruments,
. U.S. Government and U.S. Government agency obligations,
. foreign securities and ADRs,
. futures and options contracts, and
. preferred stock.
The portion of the All America Fund invested to replicate the S&P 500 Index
(the Indexed Assets) also may be invested in:
. money market instruments, and
. U.S. Government and U.S. Government agency obligations.
The Adviser may manage cash allocated to the Active Assets prior to investment
in securities by the Subadvisers.
Aggressive Equity Fund: In addition to common stocks, the Aggressive Equity
Fund may invest in:
. securities convertible into common stocks, including warrants and
convertible bonds,
. bonds,
. money market instruments,
. U.S. Government and U.S. Government agency obligations,
. foreign securities and ADRs,
. futures and options contracts, and
. preferred stock.
Composite Fund: In addition to common stocks, the equity portion of the
Composite Fund may be invested in:
. securities convertible into common stocks, including warrants,
. preferred stock,
. money market instruments,
. U.S. Government and U.S. Government agency obligations,
. foreign securities and ADRs, and
. futures and options contracts.
In addition to investment grade debt securities of the type described in the
Prospectus, the fixed-income portion of the Composite Fund may be invested in:
. asset-backed securities,
. money market instruments,
. non-investment grade securities,
. foreign securities,
. options, futures contracts and options on futures contracts, and
. equipment trust certificates.
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Bond Fund, Mid-Term Bond Fund and Short-Term Bond Fund (the "Bond Funds"): In
addition to investment grade debt securities of the type described in the
Prospectus, each Bond Fund may invest in :
. asset-backed securities,
. non-investment grade securities, for up to 20% of its assets,
. foreign securities,
. cash and money market instruments,
. stocks acquired either by conversion of fixed-income securities or
by the exercise of warrants attached to fixed income securities,
. preferred stock,
. options, futures contracts and options on futures contracts, and
. equipment trust certificates.
Money Market Fund: In addition to commercial paper and U.S. Treasury Bills,
the Fund may invest in any of the following kinds of money market instruments,
payable in United States dollars:
. securities issued or guaranteed by the U.S. Government or a U.S.
Government agency or instrumentality;
. negotiable certificates of deposit, bank time deposits, bankers'
acceptances and other short-term debt obligations of domestic
banks and foreign branches of domestic banks and U.S. branches of
foreign banks, which at the time of their most recent annual
financial statements show assets in excess of $5 billion;
. certificates of deposit, time deposits and other short-term debt
obligations of domestic savings and loan associations, which at
the time of their most recent annual financial statements show
assets in excess of $1 billion;
. repurchase agreements covering government securities, certificates
of deposit, commercial paper or bankers' acceptances;
. variable amount floating rate notes; and
. debt securities issued by a corporation.
The Money Market Fund may enter into transactions in options, futures
contracts and options on futures contracts on United States Treasury
securities.
Under the Money Market Fund's investment policy, money market instruments and
other short-term debt securities means securities that have a remaining term
to maturity of up to 13 months (25 months in the case of government
securities). The dollar-weighted average maturity of the securities held by
the Money Market Fund will not exceed 90 days.
The securities in the Money Market Fund must meet the following quality
requirements--
. All of the securities held by the Money Market Fund must have
received (or be of comparable quality to securities which have
received), at the time of the purchase, a rating in one of the two
highest categories by any two nationally recognized statistical
rating agencies; and
. At least 95% of the securities held by the Money Market Fund must
have received (or be of comparable quality to securities which
have received), at the time of purchase, a rating in the highest
category by any two such rating agencies.
The Board of Directors of the Investment Company must approve or ratify the
purchase of any security (other than any U.S. government security) that has
not received a rating or that has been rated by only one rating agency. The
Fund will sell any securities that are subsequently downgraded below the two
highest categories as soon as practicable, unless the Board of Directors
determines that sale of those securities would not be in the best interests of
the Fund.
The Money Market Fund will not invest more than 5% of its total assets in
securities of, or subject to puts from, any one issuer (other than U.S.
government securities and repurchase agreements fully collateralized by U.S.
government securities) provided that (a) the Fund may invest up to 10% of its
total assets in securities issued or guaranteed by a single issuer with
respect to which the Fund has purchased an unconditional put and (b) with
respect to 25% of its total assets the Fund may, with respect to securities
meeting the highest investment criteria, exceed the 5% limit for up to three
business days.
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Additional Investment Strategies
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Lending of Securities
The Funds have the authority to lend their securities. The Funds will not lend
any securities until the Investment Company's Board of Directors approves a
form of securities lending agreement. Refer to "Fundamental Investment
Restrictions", paragraph 9, and "Non-Fundamental Investment Policies",
paragraph 9, for descriptions of the fundamental and current restrictions on
lending by the Funds.
Upon lending securities, a Fund must receive as collateral cash, securities
issued or guaranteed by the United States Government or its agencies or
instrumentalities, or letters of credit of certain banks selected by the
Adviser. The collateral amount at all times while the loan is outstanding must
be maintained in amounts equal to at least 100% of the current market value of
the loaned securities.
The Fund will continue to receive interest or dividends on the securities
lent. In addition, it will receive a portion of the income generated by the
short-term investment of cash received as collateral, or, alternatively, where
securities or a letter of credit are used as collateral, a lending fee paid
directly to the Fund by the borrower of the securities. A Fund will have the
right to terminate a securities loan at any time. The Fund will have the right
to regain record ownership of loaned securities in order to exercise
beneficial rights, such as voting rights or subscription rights.
Loans of securities will be made only to firms that the Adviser deems
creditworthy. There are risks of delay in recovery and even loss of rights in
the collateral, however, if the borrower of securities defaults, becomes the
subject of bankruptcy proceedings or otherwise is unable to fulfill its
obligations or fails financially.
Repurchase Agreements
The Funds have the authority to enter into repurchase agreements. A Fund may
not invest more than 10% of its total assets in repurchase agreements or time
deposits that mature in more than seven days. The Funds will not enter into
any repurchase agreements until the Investment Company's Board of Directors
approves a form of Repurchase Agreement and authorizes entities as
counterparties.
Under a repurchase agreement, a Fund acquires underlying debt instruments for
a relatively short period (usually not more than one week and never more than
one year) subject to an obligation of the seller to repurchase (and the Fund
to resell) the instrument at a fixed price and time, thereby determining the
yield during the Fund's holding period. This results in a fixed rate of return
insulated from market fluctuation during such period. Accrued interest on the
underlying security will not be included for purposes of valuing a Fund's
assets.
Repurchase agreements have the characteristics of loans by a Fund and will be
fully collateralized (either with physical securities or evidence of book
entry transfer to the account of the custodian bank) at all times. During the
term of the repurchase agreement, the Fund retains the security subject to the
repurchase agreement as collateral securing the seller's repurchase
obligation, continually monitors the market value of the security subject to
the agreement and requires the Fund's seller to deposit with the Fund
additional collateral equal to any amount by which the market value of the
security subject to the repurchase agreement falls below the resale amount
provided under the repurchase agreement.
The Funds will enter into repurchase agreements only with member banks of the
Federal Reserve System and with dealers in U.S. Government securities whose
creditworthiness has been reviewed and found satisfactory by the Adviser and
the Board of Directors of the Investment Company.
Securities underlying repurchase agreements will be limited to certificates of
deposit, commercial paper, bankers' acceptances, or obligations issued or
guaranteed by the United States Government or its agencies or
instrumentalities, in which the Funds may otherwise invest.
A seller of a repurchase agreement could default and not repurchase from a
Fund the security that is the subject of the agreement. The Fund would look to
the collateral underlying the seller's repurchase agreement, including the
securities subject to the repurchase agreement, for satisfaction of the
seller's obligation to the Fund. In such event, the Fund might incur
disposition costs in liquidating the collateral and might suffer a loss if the
value of the collateral declines. There is a risk that if the issuer of the
repurchase agreement becomes involved in bankruptcy proceedings, the Fund
might be delayed or prevented from liquidating the underlying security or
otherwise obtaining it for its own purposes, if the Fund did not have actual
or book entry possession of the security.
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Rule 144A Investments, Section 4(2) Commercial Paper and Illiquid Securities
Each Fund, with respect to not more than 10% of its total assets, may purchase
securities that are not readily marketable, or are "illiquid". Repurchase
agreements of more than seven days' duration and variable and floating rate
demand notes not requiring receipt of the principal note amount within seven
days' notice are considered illiquid. A Fund may incur higher transaction
costs and require more time to complete transactions for the purchase and sale
of illiquid securities than for readily marketable securities. When a Fund
determines to sell an illiquid security within a relatively short time period,
it may have to accept a lower sales price than if the security were readily
marketable. Refer to "Non-Fundamental Investment Policies", paragraph 10.
The Adviser will make a factual determination as to whether securities with
contractual or legal restrictions on resale purchased by a Fund are liquid,
based on the frequency of trades and quotes, the number of dealers and
potential purchasers, dealer undertakings to make a market, and the nature of
the security and the marketplace, pursuant to procedures adopted by the Board
of Directors of the Investment Company.
Securities that are eligible for purchase and sale under Rule 144A of the
Securities Act of 1933 (the 1933 Act) shall be considered liquid, provided the
Adviser has not made a contrary determination regarding liquidity in
accordance with the Board's procedures. Rule 144A permits certain qualified
institutional buyers to trade in securities even though the securities are not
registered under the 1933 Act. In addition, commercial paper privately placed
in accordance with Section 4(2) of the 1933 Act also will be considered
liquid, provided the requirements set forth in the Board's procedures are
satisfied.
Options and Futures Contracts
Each of the Funds may purchase and sell options and futures contracts, as
described below. Refer to "Non-Fundamental Investment Policies" below,
paragraph 1, for a description of the current restrictions on the Funds'
purchase of options and futures contracts.
Each Fund may sell a call option contract on a security it holds in its
portfolio (called a covered call), and it may buy a call option contract on
the security to close out a position created by the sale of a covered call.
. A call option is a short-term contract (generally having a
duration of nine months or less) which gives the purchaser of the
option the right to purchase the underlying security at a fixed
exercise price at any time prior to the expiration of the option
regardless of the market price of the security during the option
period. As consideration for writing a covered call option, a Fund
(the seller) receives from the purchaser a premium, which the Fund
retains whether or not the option is exercised. The seller of the
call option has the obligation, upon the exercise of the option by
the purchaser, to sell the underlying security at the exercise
price at any time during the option period.
Each Fund may buy a put option contract on a security it holds in its
portfolio, and it may sell a put option contract on the security to close out
a position created by the purchase of the put option contract.
. A put option is a similar short-term contract that gives the
purchaser of the option the right to sell the underlying security
at a fixed exercise price at any time prior to the expiration of
the option regardless of the market price of the security during
the option period. As consideration for the put option, a Fund
(the purchaser) pays the seller a premium, which the seller
retains whether or not the option is exercised. The seller of the
put option has the obligation, upon the exercise of the option by
the purchaser, to purchase the underlying security at the exercise
price at any time during the option period. The buying of a
covered put contract limits the downside exposure for the
investment in the underlying security to the combination of the
exercise price less the premium paid.
Each Fund may purchase and sell futures contracts, and purchase options on
futures contracts, on fixed-income securities or on an index of securities,
such as the Standard & Poor's 100 Index, the Standard & Poor's 500 Index or
the New York Stock Exchange Composite Index.
. A futures contract on fixed income securities requires the seller
to deliver, and the purchaser to accept delivery of, a stated
quantity of a given type of fixed income security for a fixed
price at a specified time in the future. A futures contract or
option on a stock index provides for the making and acceptance of
a cash settlement equal to the change in value of a hypothetical
portfolio of stocks between the time the contract is entered into
and the time it is liquidated, times a fixed multiplier. Futures
contracts may be traded domestically only on exchanges which have
been designated as "contract markets" by the Commodity Futures
Trading Commission, such as the Chicago Board of Trade.
6
<PAGE>
. An option on a futures contract provides the purchaser with the
right, but not the obligation, to enter into a "long" position in
the underlying futures contract (in the case of a call option on a
futures contract), or a "short" position in the underlying futures
contract (in the case of a put option on a futures contract), at a
fixed price up to a stated expiration date. Upon exercise of the
option by the holder, the contract market clearing house
establishes a corresponding short position for the writer of the
option, in the case of a call option, or a corresponding long
position in the case of a put option. In the event that an option
is exercised, the parties are subject to all of the risks
associated with the trading of futures contracts, such as payment
of margin deposits.
. A Fund does not pay or receive a payment upon its purchase or sale
of a futures contract. Initially, a Fund will be required to
deposit with the Fund's custodian in the broker's name an amount
of cash or U.S. Treasury bills equal to approximately 5% of the
contract amount. This amount is known as "initial margin."
. While a futures contract is outstanding, there will be subsequent
payments, called "maintenance margin", to and from the broker.
These payments will be made on a daily or intraday basis as the
price of the underlying instrument or stock index fluctuates
making, the long and short positions in the futures contract more
or less valuable. This process is known as "mark to market". At
any time prior to expiration of the futures contract, a Fund may
elect to close the position by taking an opposite position, which
will operate to terminate the Fund's position in the futures
contract and may require additional transaction costs. A final
determination of margin is then made, additional cash is required
to be paid by or released to the Fund, and the Fund realizes a
loss or gain.
A Fund may use futures contracts to protect against general increases or
decreases in the levels of securities prices, in the manner described below.
. When a Fund anticipates a general decrease in the market value of
portfolio securities, it may sell futures contracts. If the market
value falls, the decline in the Fund's net asset value may be
offset, in whole or in part, by corresponding gains on the futures
position.
. A Fund may sell futures contracts on fixed-income securities in
anticipation of a rise in interest rates, that would cause a
decline in the value of fixed-income securities held in the
Fund's portfolio.
. A Fund may sell stock index futures contracts in anticipation of
a general market wide decline that would reduce the value of its
portfolio of stocks.
. When a Fund projects an increase in the cost of fixed-income
securities or stocks to be acquired in the future, the Fund may
purchase futures contracts on fixed-income securities or stock
indexes. If the hedging transaction is successful, the increased
cost of securities subsequently acquired may be offset, in whole
or in part, by gains on the futures position.
. Instead of purchasing or selling futures contracts, a Fund may
purchase call or put options on futures contracts in order to
protect against declines in the value of portfolio securities or
against increases in the cost of securities to be acquired.
. Purchases of options on futures contracts may present less risk
in hedging a portfolio than the purchase and sale of the
underlying futures contracts, since the potential loss is
limited to the amount of the premium paid for the option, plus
related transaction costs.
. As in the case of purchases and sales of futures contracts, a
Fund may be able to offset declines in the value of portfolio
securities, or increases in the cost of securities acquired,
through gains realized on its purchases of options on futures.
. The Funds also may purchase put options on securities or stock
indexes for the same types of securities for hedging purposes. The
purchase of a put option on a security or stock index permits a
Fund to protect against declines in the value of the underlying
security or securities in a manner similar to the sale of futures
contracts.
. In addition, the Funds may write call options on portfolio
securities or on stock indexes for the purpose of increasing their
returns and/or to protect the value of their portfolios.
7
<PAGE>
. When a Fund writes an option which expires unexercised or is
closed out by the Fund at a profit, it will retain the premium
paid for the option, less related transaction costs, which will
increase its gross income and will offset in part the reduced
value of a portfolio security in connection with which the
option may have been written.
. If the price of the security underlying the option moves
adversely to the Fund's position, the option may be exercised
and the Fund will be required to sell the security at a
disadvantageous price, resulting in losses which may be only
partially offset by the amount of the premium.
. A call option on a security written by a Fund will be covered
through ownership of the security underlying the option or
through ownership of an absolute and immediate right to acquire
such security upon conversion or exchange of other securities
held in its portfolio.
Risks in futures and options transactions include the following:
. There may be a lack of liquidity, which could make it difficult or
impossible for a Fund to close out existing positions and realize
gains or limit losses.
The liquidity of a secondary market in futures contracts or options on
futures contracts may be adversely affected by "daily price fluctuation
limits," established by the exchanges on which such instruments are
traded, which limit the amount of fluctuation in the price of a
contract during a single trading day. Once the limit in a particular
contract has been reached, no further trading in such contract may
occur beyond such limit, thus preventing the liquidation of positions,
and requiring traders to make additional variation margin payments.
Market liquidity in options, futures contracts or options on futures
contracts may also be adversely affected by trading halts, suspensions,
exchange or clearing house equipment failures, government intervention,
insolvency of a brokerage firm or clearing house or other disruptions
of normal trading activity.
. The securities held in a Fund's portfolios may not exactly
duplicate the security or securities underlying the options,
futures contracts or options on futures contracts traded by the
Fund, and as a result the price of the portfolio securities being
hedged will not move in the same amount or direction as the
underlying index, securities or debt obligation.
. A Fund purchasing an option may lose the entire amount of the
premium plus related transaction costs.
. For options on futures contracts, changes in the value of the
underlying futures contract may not be fully reflected in the
value of the option.
. With respect to options and options on futures contracts, the
Funds are subject to the risk of market movements between the time
that the option is exercised and the time of performance
thereunder.
. In writing a covered call option on a security or a stock index, a
Fund may incur the risk that changes in the value of the
instruments used to cover the position will not correlate
precisely with changes in the value of the option or underlying
the index or instrument.
. The opening of a futures position and the writing of an option are
transactions that involve substantial leverage. As a result,
relatively small movements in the price of the contract can result
in substantial unrealized gains or losses.
8
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Additional Information about Specific Types of Securities
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Non-Investment Grade Securities
The Bond Funds may purchase non-investment grade debt securities. In addition,
the Bond Funds and the other Funds that purchase debt securities may hold a
security that becomes non-investment grade as a result of impairments of the
issuer's credit.
Fixed-income securities that are rated in the lower rating categories of the
nationally recognized rating services (Ba or lower by Moody's and BB or lower
by Standard & Poor's), or unrated securities of comparable quality, are
commonly known as non-investment grade securities or "junk bonds". Junk bonds
are regarded as being predominantly speculative as to the issuer's ability to
make payments of principal and interest. Investment in non-investment grade
securities involves substantial risk. Junk bonds may be issued by less
creditworthy companies or by larger, highly leveraged companies, and are
frequently issued in corporate restructurings, such as mergers and leveraged
buy-outs. Such securities are particularly vulnerable to adverse changes in
the issuer's industry and in general economic conditions. Junk bonds
frequently are junior obligations of their issuers, so that in the event of
the issuer's bankruptcy, claims of the holders of junk bonds will be satisfied
only after satisfaction of the claims of senior security holders.
Non-investment grade bonds tend to be more volatile than higher-rated fixed-
income securities, so that adverse economic events may have a greater impact
on the prices of junk bonds than on higher-rated fixed-income securities. Junk
bonds generally are purchased and sold through dealers who make a market in
such securities for their own accounts. However, there are fewer dealers in
the non-investment grade bond market, and the market may be less liquid than
the market for higher-rated fixed-income securities, even under normal
economic conditions. Also, there may be significant disparities in the prices
quoted for junk bonds by various dealers. Adverse economic conditions or
investor perceptions (whether or not based on economic fundamentals) may
impair the liquidity of this market, and may cause the prices that a Fund may
receive for any non-investment grade bonds to be reduced, or might cause a
Fund to experience difficulty in liquidating a portion of its portfolio.
The Investment Company currently anticipates that no Fund will invest more
than 5% of its total assets in non-investment grade debt securities.
U.S. Government and U.S. Government Agency Obligations
All of the Funds may invest in U.S. Government and U.S. Government agency
obligations. Some of these securities also may be considered money market
instruments. Some also may be mortgage-backed securities or zero coupon
securities.
U.S. Government Obligations: These securities are issued or guaranteed as to
principal and interest by the United States Government. They include a variety
of Treasury securities, which differ only in their interest rates, maturities
and times of issuance. Treasury bills have a maturity of one year or less.
Treasury notes at the time of issuance have maturities of one to seven years
and Treasury bonds generally have a maturity of greater than five years.
U.S. Government Agency Obligations: Agencies of the United States Government
that issue or guarantee obligations include, among others, Export-Import Bank
of the United States, Farmers Home Administration, Federal Housing
Administration, Government National Mortgage Association, Student Loan
Marketing Association, Maritime Administration, Small Business Administration
and the Tennessee Valley Authority. Instrumentalities of the United States
Government that issue or guarantee obligations include, among others, Federal
Farm Credit Banks, Federal National Mortgage Association, Federal Home Loan
Banks, Federal Home Loan Mortgage Corporation, Federal Intermediate Credit
Banks, Federal Land Banks and Banks for Cooperatives.
Some of the securities issued by U.S. Government agencies and
instrumentalities are supported by the full faith and credit of the U.S.
Treasury; others are supported by the right of the issuer to borrow from the
Treasury, while others are supported only by the credit of the instrumentality
that issued the obligation.
Money Market Instruments
All of the Funds may purchase money market instruments, which include the
following.
Certificates of Deposit. Certificates of deposit are generally short term,
interest-bearing negotiable certificates issued by banks or savings and loan
associations against funds deposited in the issuing institution.
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<PAGE>
Time Deposits. Time deposits are deposits in a bank or other financial
institution for a specified period of time at fixed interest rate, for which
no negotiable certificate is received.
Bankers' Acceptance. A bankers' acceptance is a draft drawn on a commercial
bank by a borrower usually in connection with an international commercial
transaction (to finance the import, export, transfer or storage of goods). The
borrower is liable for payment as well as the bank, which unconditionally
guarantees to pay the draft at its face amount on the maturity date. Most
acceptances have maturities of six months or less and are traded in secondary
markets prior to maturity.
Commercial Paper. Commercial paper refers to short-term, unsecured promissory
notes issued by corporations to finance short-term credit needs. Commercial
paper is usually sold on a discount basis and has a maturity at the time of
issuance not exceeding nine months.
Variable Amount Floating Rate Notes. Variable floating rate notes are short-
term, unsecured promissory notes issued by corporations to finance short-term
credit needs. These are interest-bearing notes on which the interest rate
generally fluctuates on a weekly basis.
Corporate Debt Securities. Corporate debt securities with a remaining maturity
of less than one year tend to become extremely liquid and are traded as money
market securities.
Treasury Bills. See "U.S. Government and U.S. Government Agency Obligations"
above.
Because the Money Market Fund and the other Funds generally will purchase only
money market instruments that are rated high quality and have short terms to
maturities, these money market instruments are considered to have low levels
of market risk and credit risk.
Zero Coupon Securities and Discount Notes; Redeemable Securities
The Bond Funds and the fixed income portion of the Composite Fund, and the All
America Fund and Aggressive Equity Fund to the extent they invest in fixed
income securities, may invest in discount notes and zero coupon securities.
Discount notes mature in one year or less from the date of issuance. Zero
coupon securities may be issued by corporations or by certain U.S. Government
agencies.
Discount notes and zero coupon securities do not pay interest. Instead, they
are issued at prices that are discounted from the principal (par) amount due
at maturity. The difference between the issue price and the principal amount
due at maturity (or the amount due at the expected redemption date in some
cases if the securities are callable) is called "original issue discount". A
Fund must accrue original issue discount as income, even if the Fund does not
actually receive any payment under the security during the accrual period. The
purchase price paid for zero coupon securities at the time of issuance, or
upon any subsequent resale, reflects a yield-to-maturity required by the
purchaser from the purchase date to the maturity date (or expected redemption
date).
Foreign Securities and American Depository Receipts (ADRs)
In addition to investing in domestic securities, each of the Funds other than
the Equity Index Fund, Mid-Cap Equity Index Fund and the Money Market Fund may
invest in securities of foreign issuers, including securities traded outside
the United States. Foreign issues guaranteed by domestic corporations are
considered to be domestic securities.
ADRs are dollar-denominated receipts issued generally by domestic banks and
representing the deposit with the bank of a security of a foreign issuer. ADRs
are publicly traded on exchanges or over-the-counter in the United States.
The Investment Company has a non-fundamental investment policy that limits
foreign securities, including foreign exchange transactions, and ADRs to 25%
of a Fund's total assets. (See "Non-Fundamental Investment Policies",
paragraph 2.) The Investment Company currently anticipates that no Fund will
invest more than 10% of its total assets in foreign securities or foreign
exchange transactions.
The Investment Company will consider special factors before investing in
foreign securities and ADRs. These include:
. changes in currency rates or currency exchange control
regulations,
. the possibility of expropriation,
10
<PAGE>
. the unavailability of financial information or the difficulty of
interpreting financial information prepared under foreign
accounting standards,
. less liquidity and more volatility in foreign securities markets
(not applicable to ADRs),
. the impact of political, social or diplomatic developments, and
. the difficulty of assessing economic trends in foreign countries.
The Funds could encounter greater difficulties in bringing legal processes
abroad than would be encountered in the United States. In addition,
transaction costs in foreign securities may be higher.
Convertible Securities
The Bond Funds and the fixed income portion of the Composite Fund, as well as
the All America and Aggressive Equity Funds to the extent they invest in debt
securities, may invest in convertible securities. Convertible securities can
be converted by the holder into common stock of the issuer, at the price and
on the terms set forth by the issuer when the convertible securities are
initially sold. Convertible securities normally provide a higher yield than
the underlying stock but a lower yield than a fixed-income security without
the convertibility feature. The price of the convertible security normally
will vary to some degree with changes in the price of the underlying stock,
although the higher yield tends to make the convertible security less volatile
than the underlying common stock. The price of the convertible security also
will vary to some degree inversely with interest rates.
Equipment Trust Certificates
The Bond Funds and the fixed income portion of the Composite Fund, may invest
in equipment trust certificates. The proceeds of those certificates are used
to purchase equipment, such as railroad cars, airplanes or other equipment,
which in turn serve as collateral for the related issue of certificates.
The equipment subject to a trust generally is leased by a railroad, airline or
other business, and rental payments provide the projected cash flow for the
repayment of the equipment trust certificates. Holders of equipment trust
certificates must look to the collateral securing the certificates, and any
guarantee provided by the lessee or any parent corporation for the payment of
lease amounts, in the case of default in the payment of principal and interest
on the certificates.
The Investment Company currently has a non-fundamental investment policy that
no Fund will invest more than 5% of its total assets in equipment trust
certificates.
Asset-backed Securities
The Bond Funds and the fixed income portion of the Composite Fund, may invest
in securities backed by consumer or credit card loans or other receivables or
may purchase interests in pools of such assets.
Changes in interest rates may significantly affect the value of these
securities, and prepayment rates will impact the yield and price of the
securities. A decline in interest rates may result in increases in prepayment,
and a Fund will have to invest prepayment proceeds at the prevailing lower
interest rates. Asset-backed securities generally are not expected to prepay
to the same extent as mortgage-backed securities in such circumstances. An
increase in interest rates may result in prepayment at a rate slower than was
assumed when the security was purchased. The creditworthiness of an issuer of
asset-backed securities also may impact the value of they securities.
The Investment Company currently has a non-fundamental investment policy that
no Fund will:
. invest more than 10% of its total assets in asset-backed
securities,
. invest in interest-only strips or principal-only strips of asset-
backed securities, or
. purchase the most speculative series or class of asset-backed
securities issues.
Mortgage-Backed Securities
The Bond Funds and the fixed income portion of the Composite Fund, as well as
the All America and Aggressive Equity Funds to the extent they invest in debt
securities, may invest in mortgage-backed securities. You should refer to the
discussion of Mortgage-Backed Securities in the Prospectus under "Details
about How Our Funds Invest and Related Risks--Specific Investments or
Strategies and Related Risks".
11
<PAGE>
The Investment Company currently has a non-fundamental investment policy that
no Fund will:
. if the Fund invests primarily in fixed income securities, invest
more than 10% of its total assets in mortgage-backed securities
that are not also considered to be U.S. Government or U.S.
Government agency securities,
. if the Fund invests primarily in equity securities, invest in
mortgage-backed securities unless they are also considered to be
U.S. Government Securities,
. invest in interest-only strips or principal-only strips of
mortgage-backed securities, or
. purchase the most speculative series or class of collateralized
mortgage obligation issues or other mortgage-backed securities
issues.
Warrants
The All America Fund and Bond Fund may acquire warrants. A warrant is an
option to purchase common stock of an issuer and is issued in conjunction with
another security, such as a debt obligation. A warrant specifies the price at
which the holder may purchase shares of common stock and usually expires after
a period of time. A warrantholder generally may pay cash for the common stock
to be purchased or may surrender principal amount of the related debt security
the warrantholder owns equal to the purchase price for the stock.
The common stock underlying a warrant may not increase in value after the date
the warrant was issued, or may not increase up to the warrant exercise price.
In this case, the warrant generally would have little value and could expire
unexercised.
The Investment Company currently has a non-fundamental investment policy that
no Fund will invest more than 5% of its assets in warrants.
Preferred Stock
The All America Fund and Bond Fund may purchase preferred stock. A corporation
may issue a form of equity security called preferred stock. Compared to common
stock, preferred stock has advantages in the receipt of dividends and in the
receipt of the corporation's assets upon liquidation. Preferred stockholders,
however, usually do not have voting rights at meetings of the corporation's
shareholders.
An issuer of preferred stock must pay a dividend to holders of preferred stock
before it distributes a dividend to holders of common stock. When a
corporation issues preferred stock, it sets a dividend rate, or a formula to
determine the rate. If a corporation does not have sufficient earnings to pay
the specified dividend to preferred stockholders, the unpaid dividend may
accrue (cumulate) and become payable when the corporation's earnings increase.
Bondholders, in contrast, are entitled to receive interest and principal due,
regardless of the issuer's earnings.
Some issues of preferred stock give the holder the right to convert the
preferred stock into shares of common stock, when certain conditions are met.
A holder of preferred stock that is not convertible, or of preferred stock
that is convertible but has not met the conditions for conversion, does not
share in the earnings of the issuer other than through the receipt of
dividends on the preferred stock. The market value of convertible preferred
stock generally fluctuates more than the market value of nonconvertible
preferred stock, because the value of the underlying common stock will affect
the price of the convertible stock.
Preferred stock has the risk that a corporation may not have earnings from
which to pay the dividends as they become due. Even if a corporation is paying
dividends, if the dividend rate is fixed (and not variable), changes in
interest rates generally will affect the market value of the preferred stock
in the same manner as for debt obligations.
The Investment Company currently has a non-fundamental investment policy that
no Fund will invest more than 10% of its assets in preferred stock.
Insurance Law Restrictions
- -------------------------------------------------------------------------------
Insurance laws and regulations in States where the Insurance Companies operate
govern investments by Separate Accounts. If necessary in order for shares of
the Investment Company's Funds to remain eligible investments for the Separate
Accounts, a Fund may from time to time limit the amount of its investments in
certain types of securities, such as foreign securities and debt or equity
securities of certain issuers.
12
<PAGE>
FUNDAMENTAL INVESTMENT RESTRICTIONS
The following investment restrictions are fundamental policies. The Funds may
not change these policies unless a majority of the outstanding voting shares
of each affected Fund approves the change. No Fund will:
1. underwrite the securities issued by other companies, except to the extent
that the Fund's purchase and sale of portfolio securities may be deemed to
be an underwriting;
2. purchase physical commodities or contracts involving physical commodities;
3. based on its investments in individual issuers, be non-diversified as
defined under the 1940 Act, which currently restricts a Fund, with respect
to 75% of the value of its total assets, from investing more than 5% of
its total assets in the securities of any one issuer, other than (i)
securities issued or guaranteed by the
United States Government or its agencies or instrumentalities ("U.S.
Government Securities"), and (ii) securities of other registered investment
companies; in addition the Money Market Fund will not invest in any
securities that would cause it to fail to comply with applicable
diversification requirements for money market funds under the 1940 Act and
rules thereunder, as amended from time to time;
4. based on its investment in an issuer's voting securities, be non-
diversified as defined under the 1940 Act, which currently restricts a
Fund, with respect to 75% of the value of its total assets, from
purchasing more than 10% of the outstanding voting securities of any one
issuer other than (i) U.S. Government Securities, and (ii) securities of
other registered investment companies, and imposes additional restrictions
on the Money Market Fund;
5. issue senior securities, except as permitted under the 1940 Act and the
rules thereunder as amended from time to time;
6. invest more than 25% of its assets in the securities of issuers in one
industry, other than U.S. Government Securities, except that the Money
Market Fund may invest more than 25% of its total assets in the financial
services industry;
7. purchase real estate or mortgages directly, but a Fund may invest in
mortgage-backed securities and may purchase the securities of companies
whose businesses deal in real estate or mortgages, including real estate
investment trusts;
8. borrow money, except to the extent permitted by the 1940 Act and rules
thereunder, as amended from time to time, which currently limit a Fund's
borrowing to 33 1/3% of total assets (including the amount borrowed) minus
liabilities (other than borrowings) and require the reduction of any
excess borrowing within three business days; or
9. lend assets to other persons (with a Fund's entry into repurchase
agreements or the purchase of debt securities not being considered the
making of a loan), except to the extent permitted by the 1940 Act and
rules thereunder, as amended from time to time, which currently limit a
Fund's lending to 33 1/3% of its total assets, or pursuant to any
exemptive relief granted by the SEC.
NON-FUNDAMENTAL INVESTMENT POLICIES
The following investment restrictions are not fundamental policies. They may
be changed without shareholder approval by a vote of the Board of Directors of
the Investment Company, subject to any limits imposed by the 1940 Act or
applicable regulatory authorities and subject to each Fund's investment
objectives and permitted investments. No Fund will:
1. purchase or sell options or futures contracts or options on futures
contracts unless the options or contracts relate to U.S. issuers or U.S.
stock indexes and are not for speculation, and in addition (i) a Fund may
write only covered call options and may buy put options only if it holds
the related securities, (ii) a Fund may invest in futures contracts to
hedge not more than 20% of its total assets, and (iii) premiums paid on
outstanding options contracts may not exceed 5% of the Fund's total
assets;
2. invest in foreign exchange nor invest more than 25% of its total assets in
securities of foreign issuers and American Depository Receipts (ADRs);
3. invest for the purpose of exercising control over management of an issuer
(either separately or together with any other Funds);
13
<PAGE>
4. make short sales, except when the Fund owns or has the right to obtain
securities of equivalent kind and amount that will be held for as long as
the Fund is in a short position;
5. if its investment policy is to invest primarily in equity securities,
purchase mortgage-backed securities unless they are also U.S. Government
Securities, or if its investment policy is to invest primarily in fixed
income securities, invest more than 10% of its total assets in mortgage-
backed securities that are not also U.S. Government Securities;
6. invest in the securities of any registered investment company except as
permitted under the Investment Company Act of 1940 and the rules
thereunder, as amended from time to time, or by any exemptive relief
granted by the SEC;
7. purchase securities on margin, except that credits for the clearance of
portfolio transactions and the making of margin payments for futures
contracts and options on futures contracts shall not constitute the
purchasing of securities on margin;
8. borrow money except for temporary or emergency purposes (not for
investment or leveraging) or under any reverse repurchase agreement,
provided that a Fund's aggregate borrowings may not exceed 10% of the
value of the Fund's total assets and it may not purchase additional
securities if its borrowings exceed that limit;
9. lend more than 10% of its assets;
10. invest more than 10% of its total assets in securities that are considered
to be illiquid because they are subject to legal or contractual
restrictions on resale or are otherwise not readily marketable, including
repurchase agreements and time deposits that do not mature within seven
days but excluding Rule 144A securities and other restricted securities
that are determined to be liquid pursuant to procedures adopted by the
Board of Directors;
11. invest more than 5% of its total assets in equipment trust certificates;
12. invest more than 10% of its total assets in asset-backed securities or
purchase the most speculative series or class of asset-backed securities
issues;
13. purchase the most speculative series or class of collateralized mortgage
obligation issues or other mortgage-backed securities issues;
14. invest in interest-only strips or principal only strips of asset-backed
securities, mortgage-backed securities or other debt securities;
15. invest more than 5% of its assets in warrants; or
16. invest more than 10% of its assets in preferred stock.
14
<PAGE>
MANAGEMENT OF THE INVESTMENT COMPANY
The Directors of the Investment Company consist of six individuals, four of
whom are not "interested persons" of the Investment Company as defined in the
1940 Act. The Directors are responsible for the overall supervision of the
Investment Company's operations and perform the various duties imposed on the
directors of investment companies by the 1940 Act. The Directors elect
officers of the Investment Company.
The Directors and Officers of the Investment Company and their principal
employment are as follows:
<TABLE>
<CAPTION>
Position Held with the Principal Occupations
Name, Address and Age Investment Company During Past 5 Years
<S> <C> <C>
Dolores J. Morrissey*, Chairman of the Board, President, Mutual of America
age 71 320 Park Avenue President and Director Securities Corporation, since August
New York, NY 10022 1996; Executive Vice President and
Assistant to the President of the
Adviser March 1996 to December 1996;
prior thereto, President and Chief
Executive Officer of the Adviser
Manfred Altstadt*, age Senior Executive Vice Senior Executive Vice President and
50 320 Park Avenue President, Chief Chief Financial Officer of the
New York, NY 10022 Financial Officer, Adviser, Mutual of America Life and
Treasurer and Director American Life
Peter J. Flanagan, age Director President Emeritus and Consultant, The
69 Life Insurance Council of New York
551 Fifth Avenue (LICONY), since November 1999; prior
New York, NY 10176 thereto, President of LICONY
George J. Mertz, age 71 Director Retired; formerly President and CEO of
Ridgewood, NJ 07450 National Industries for the Blind
Robert J. McGuire, age Director Counsel, Morvillo, Abramowitz, Grand,
63 Iason & Silverberg (law firm), since
565 Fifth Avenue January 1998; prior thereto,
New York, NY 10017 President, Knoll Associates
Howard J. Nolan, age 62 Director President and C.E.O., United Way of
P.O. Box 898 San Antonio and Bexar County
San Antonio, TX 78293
Patrick A. Burns, age 53 Senior Executive Vice Senior Executive Vice President and
320 Park Avenue President and General General Counsel of the Adviser; Senior
New York, NY 10022 Counsel Executive Vice President and General
Counsel of Mutual of America Life and
American Life
Stanley M. Lenkowicz, Senior Vice President, Senior Vice President and Deputy
age 57 320 Park Avenue Deputy General Counsel General Counsel of Mutual of America
New York, NY 10022 and Secretary Life
</TABLE>
- --------
* Mr. Altstadt and Ms. Morrissey are "interested persons" within the meaning
of the 1940 Act.
The officers and directors of the Investment Company own none of its
outstanding shares. The Investment Company has no Audit Committee, and the
entire Board of Directors fulfills the obligations that an Audit Committee
would have.
Officers and Directors who are participants under group or individual variable
accumulation annuity contracts issued by Mutual of America Life or American
Life may allocate portions of their account balances to one or more of the
Investment Company's Funds. Mutual of America Life and its subsidiary American
Life, through their Separate Accounts, own 100% of the shares of the Funds.
15
<PAGE>
Set forth below is a table showing compensation paid to the directors during
1999.
<TABLE>
<CAPTION>
Total Compensation
Aggregate from
Compensation Pension or Estimated Investment Company and
from Retirement Benefits Benefits Other Investment
Investment Accrued as Part of Upon Companies in
Name of Director Company Fund Expenses Retirement Complex(3)
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Manfred Altstadt........ None (1) None None None (1)
Dolores J. Morrissey.... None (1) None None None (1)
Peter J. Flanagan....... $18,375(2) None None $18,375(2)
George J. Mertz......... $18,149(2) None None $18,149(2)
James J. Needham (4).... $19,013(2) None None $19,013(2)
Howard J. Nolan......... $16,854(2) None None $16,854(2)
</TABLE>
- --------
(1) As employees of the Adviser's affiliates and as "interested persons" of
the Investment Company, Ms. Morrissey and Mr. Altstadt serve as directors
of the Investment Company without compensation.
(2) Directors who are not "interested persons" of the Investment Company
received from the Investment Company an annual retainer of $10,000 and a
fee of $1,000 for each Board or Committee meeting they attended in 1999
and will receive an annual retainer of $16,000 and a fee of $1,500 for
each Board or Committee meeting they attend in 2000. In addition, they
receive business travel and accident insurance and life insurance coverage
of $75,000.
(3) Directors who are not interested persons of the Investment Company do not
serve on the Board of any other investment company in the same complex as
the Investment Company.
(4) Mr. McGuire was elected as a director on February 28, 2000, to serve in
place of Mr. Needham, who retired.
INVESTMENT ADVISORY ARRANGEMENTS
Investment Adviser. The Investment Company's investment adviser is Mutual of
America Capital Management Corporation (the Adviser or Capital Management), an
indirect wholly-owned subsidiary of Mutual of America Life. The Adviser's
address is 320 Park Avenue, New York, New York 10022. The Adviser is a
registered investment adviser under the Investment Advisers Act of 1940.
Capital Management has served as Adviser since November 1993, when it assumed
investment management obligations for the Investment Company from Mutual of
America Life. The Adviser provides investment management services to the
Investment Company, Mutual of America Institutional Funds, Inc. and the
General Accounts of Mutual of America Life and American Life.
The Adviser provides advisory services for the Investment Company's Funds, in
accordance with the Funds' investment policies, objectives and restrictions as
set forth in the Prospectus and this Statement of Additional Information. The
Adviser has delegated some of its advisory responsibilities for a portion of
the All America Fund to the Subadvisers named below. The Adviser's activities
are subject at all times to the supervision and approval of the Investment
Company's Board of Directors.
Under the Investment Advisory Agreement, the Adviser agrees to provide
investment management services to the Investment Company. These services
include:
. performing investment research and evaluating pertinent economic,
statistical and financial data;
. consultation with the Investment Company's Board of Directors and
furnishing to the Investment Company's Board of Directors
recommendations with respect to the overall investment plan;
. implementation of the overall investment plan, including carrying
out decisions to acquire or dispose of investments;
. management of investments;
. reporting to the Investment Company's Board of Directors on a
regular basis on the implementation of the investment plan and the
management of investments;
. maintaining all required records;
. making arrangements for the safekeeping of assets; and
. providing office space facilities, equipment, material and personnel
necessary to fulfill its obligations.
The Adviser is responsible for all expenses incurred in performing the
investment advisory services, including compensation of officers and payment
of office expenses, and for providing investment management services.
16
<PAGE>
The Adviser has entered into an arrangement with Mutual of America for the
provision of investment accounting and recordkeeping, legal and certain other
services.
Advisory Fees. As compensation for its services to each of the Funds of the
Investment Company, the Funds pay the Adviser a fee at the following annual
rates of net assets, calculated as a daily charge:
Equity Index and Mid-Cap Equity Index Funds -- .125%
All America, Composite, Bond, Mid-Term Bond and Short-Term Bond Funds --
.50%
Aggressive Equity Fund -- .85%
Money Market Fund -- .25%
Investment Advisory Fees Paid by Funds to Adviser
For Past Three Years
<TABLE>
<CAPTION>
Fund 1999 1998 1997
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Index $ 635,398 $ 412,769 $ 221,763
- -----------------------------------------------------------------------------------------
All America $ 3,926,185 $ 3,559,615 $3,487,086
- -----------------------------------------------------------------------------------------
Mid-Cap Equity Index* $ 18,878 N/A N/A
- -----------------------------------------------------------------------------------------
Aggressive Equity $ 1,732,320 $ 2,007,629 $1,955,550
- -----------------------------------------------------------------------------------------
Composite $ 1,705,660 $ 1,601,894 $1,464,132
- -----------------------------------------------------------------------------------------
Bond $ 2,304,779 $ 2,245,279 $1,850,985
- -----------------------------------------------------------------------------------------
Mid-Term Bond $ 68,963 $ 68,431 $ 73,392
- -----------------------------------------------------------------------------------------
Short-Term Bond $ 84,855 $ 91,736 $ 78,795
- -----------------------------------------------------------------------------------------
Money Market $ 171,989 $ 173,091 $ 199,652
- -----------------------------------------------------------------------------------------
Total Fees $10,649,027 $10,160,444 $9,331,355
</TABLE>
*The Mid-Cap Equity Index Fund began operations on May 3, 1999.
Other Fund Expenses. Each Fund is responsible for paying its advisory fee and
other expenses incurred in its operation, including:
. brokers' commissions, transfer taxes and other fees relating to
the Fund's portfolio transactions,
. directors' fees and expenses,
. fees and expenses of its independent certified public
accountants
. fees and expenses of its legal counsel,
. the cost of the printing and mailing semi-annual reports to
shareholders, Proxy Statements, Prospectuses, Prospectus
Supplements and Statements of Additional Information,
. the cost of preparation and filing registration statements and
amendments thereto,
. bank transaction charges and custodian's fees,
. any proxy solicitors' fees and expenses,
. SEC filing fees,
. any federal, state or local income or other taxes,
. any membership or licensing fees of the Investment Company
Institute and similar organizations,
. fidelity bond and directors' liability insurance premiums, and
. any extraordinary expenses, such as indemnification payments or
damages awarded in litigation or settlements made.
Expense Reimbursement by the Adviser. The Adviser voluntarily limits the
expenses of each Fund, other than for brokers' commissions, transfer taxes and
other fees relating to the Fund's portfolio transactions, to the amount of the
investment advisory fee paid by the Fund to the Adviser. The Adviser may
discontinue or modify its policy of paying expenses of the Funds at any time.
17
<PAGE>
Subadvisers for Portion of the All America Fund. For approximately 20% of the
assets of the All America Fund (the Active Assets), the Adviser has entered
into Subadvisory Agreements with Fred Alger Management, Inc. (Alger
Management) and Oak Associates, Ltd. (Oak Associates) (each a Subadviser, and
together the Subadvisers). Each Subadviser is registered as an investment
adviser under the Investment Advisers Act of 1940.
Each of the Subadvisers for its portion of the All America Fund provides
investment advisory services, including research, making recommendations and
regular reports to the Board of Directors of the Investment Company,
maintenance of records, and providing all the office space, facilities,
equipment, material and personnel necessary to fulfill its obligations under
the Subadvisory Agreement. The Subadvisers are subject to the supervision of
the Adviser and the Board of Directors of the Investment Company.
Subadvisory Fees. The Adviser, not the Investment Company, pays the
Subadvisers for advisory services they provide to the portion of the All
America Fund they manage at the following annual rates of net assets under
management, calculated as a daily charge:
.Fred Alger Management -- .45%
.Oak Associates -- .30%
Fees Paid by Adviser to Subadvisers
For Past Three Years
<TABLE>
<CAPTION>
Subadviser 1999 1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Fred Alger Management, Inc. $373,527 $317,439 $294,755
- --------------------------------------------------------------------------------
Oak Associates, Ltd. $218,939 $204,454 $208,892
- --------------------------------------------------------------------------------
Palley-Needelman Asset Management, Inc.* $250,788 $221,149 $208,284
- --------------------------------------------------------------------------------
Total $843,254 $743,042 $711,931
</TABLE>
* A Subadviser until February 1, 2000.
Codes of Ethics. The Investment Company, the Adviser, the Subadvisers and
Mutual of America have adopted codes of ethics under Rule 17j-1 of the 1940
Act. Persons subject to these codes may not purchase securities in which the
Investment Company's Funds may invest unless their purchases have been
precleared in accordance with the codes and do not occur not within certain
black-out periods imposed under the codes.
PORTFOLIO TRANSACTIONS AND BROKERAGE
Selection of Brokers and Dealers
- -------------------------------------------------------------------------------
The Adviser and each Subadviser are responsible for decisions to buy and sell
securities for the Funds of the Investment Company for which they provide
services as well as for selecting brokers and, where applicable, negotiating
the amount of the commission rate paid.
. The Adviser and Subadvisers select broker-dealers which, in their
best judgment, provide prompt and reliable execution at favorable
security prices and reasonable commission rates.
. They may select broker-dealers which provide them with research
services and may cause a Fund to pay such broker-dealers
commissions which exceed those other broker-dealers may have
charged, if in their view the commissions are reasonable in
relation to the value of the brokerage and/or research services
provided by the broker-dealer.
. When purchasing or selling securities trading on the over-the-
counter market, the Adviser and Subadvisers will generally execute
the transaction with a broker engaged in making a market for such
securities.
. The Adviser and Subadvisers may place certain orders with their
affiliates, subject to the requirements of the 1940 Act.
. No transactions may be effected by a Fund with an affiliate of the
Adviser or a Sub-Adviser acting as principal for its own account.
Brokerage commissions are negotiated, as there are no standard rates. All
brokerage firms provide the service of execution of the order made. Some
brokerage firms routinely provide research and statistical data to their
customers, and some firms customarily provide research reports on particular
companies and industries to customers that place a certain volume of trades
with them.
The Adviser, and each Subadviser, will place orders with brokers providing
useful research and statistical data services if reasonable commissions can be
negotiated for the total services furnished even though lower
18
<PAGE>
commissions may be available from brokers not providing such services. The
Adviser, and each Subadviser, uses these services in connection with all of
its investment activities, and some of the data or services obtained in
connection with the execution of transactions for the Investment Company may
be used in managing other investment accounts. Conversely, data or services
obtained in connection with transactions in other accounts may be used by the
Adviser, and each Subadviser, in providing investment advice to the Investment
Company. To the extent that the Adviser, and each Subadviser, uses research
and statistical data services so obtained, its expenses may be reduced and
such data has therefore been and is one of the factors considered by the
Adviser, and each Subadviser, in determining its fee for investment advisory
services.
At times, transactions for the Investment Company may be executed together
with purchases or sales of the same security for other accounts of the Adviser
or a Subadviser. When making concurrent transactions for several accounts, an
effort is made to allocate executions fairly among them. Transactions of this
type are executed only when the Adviser, or a Subadviser, believes it to be in
the best interests of the affected Fund(s), as well as any other accounts
involved. However, the possibility exists that concurrent executions may work
out to the disadvantage of the Fund(s) involved.
The Investment Company paid aggregate brokerage commissions of $1,769,987 in
1999, $2,040,381 in 1998 and $1,920,465 in 1997.
Commissions to Affiliated Brokers
- -------------------------------------------------------------------------------
During the past three years, the Investment Company has paid brokerage
commissions to Mutual of America Securities Corporation (Securities
Corporation), an affiliate of the Adviser, through an introducing brokerage
arrangement with Bear Stearns Securities Corp., and to Fred Alger & Co. (Fred
Alger), an affiliate of Alger Management, Inc., as follows:
<TABLE>
<CAPTION>
Year of Commissions % of Total % of Aggregate Dollars
Payment/Broker Paid Commissions Paid of Transactions
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1999 -- Securities
Corporation $ 0 0% 0%
- --------------------------------------------------------------------------------
1998 -- Securities
Corporation $ 50,136 2.5% 2.3%
- --------------------------------------------------------------------------------
1997 -- Securities
Corporation $ 64,092 3.1% 3.6%
- --------------------------------------------------------------------------------
1999 -- Fred Alger $129,800 7.3% 6.0%
- --------------------------------------------------------------------------------
1998 -- Fred Alger $180,054 8.8% 7.3%
- --------------------------------------------------------------------------------
1997 -- Fred Alger $216,495 10.61% 10.03%
</TABLE>
The purchases and sales placed through Fred Alger related primarily to smaller
capitalization stocks, for which execution may be more difficult.
Portfolio Turnover
- -------------------------------------------------------------------------------
The Adviser and the Subadvisers do not consider portfolio turnover rate to be
a limiting factor when they deem it appropriate to purchase or sell securities
for a Fund. The portfolio turnover rate for a Fund in any year will depend on
market conditions, and the rate may increase depending on market conditions or
if a new portfolio manager for a Fund restructures the Fund's holdings. The
Insurance Companies' Separate Accounts do not pay taxes on the investment
gains of the Funds. As a consequence, the Adviser and Subadvisers do not
consider how long a Fund has held a security, or how capital gain upon sale
would be characterized, in deciding whether to sell that security.
The Equity Index Fund, the Indexed Assets of the All America Fund and the Mid-
Cap Equity Index Fund each attempt to duplicate the investment results of an
S&P Index. As a result, the Adviser anticipates that these Funds will hold
investments generally for longer periods than actively managed funds.
19
<PAGE>
PURCHASE, REDEMPTION AND PRICING OF SHARES
Calculation of Net Asset Value
- -------------------------------------------------------------------------------
A Separate Account purchases or redeems shares of a Fund at net asset value. A
Fund's net asset value is equal to:
. the sum of the value of the securities the Fund holds,
. plus any cash or other assets, including interest and dividends
accrued, and
. minus all liabilities, including accrued expenses.
Net asset value is determined once daily immediately after the declaration of
dividends, if any, as of the time of the close of the regular trading session
on the New York Stock Exchange (generally 4:00 p.m. Eastern Standard Time) on
each day the Exchange is open for trading (a Valuation Day). A Valuation
Period for calculation of a Fund's net asset value per share is the period
after the close of a Valuation Day and ending at the close of the next
Valuation Day. The Investment Company determines the net asset value for a
Valuation Period by multiplying a Fund's net asset value per share as of the
preceding Valuation Period by that Fund's Change Factor (described below) for
the current Valuation Period.
The Change Factor for a Fund for any Valuation Period is determined as:
(a) the ratio of (i) the net asset value of the Fund at the end of the
current Valuation Period, before any amounts are allocated to or
withdrawn from the Fund for that Valuation Period, to (ii) the net asset
value of the Fund at the end of the preceding Valuation Period, after
all allocations and withdrawals were made for that period,
divided by
(b) 1.00000 plus the component of the annual rate of the Adviser's fee
against a Fund's assets for the number of days from the end of the
preceding Valuation Period to the end of the current Valuation Period.
Pricing of Securities Held by the Funds
- -------------------------------------------------------------------------------
In determining a Fund's net asset value, the Adviser must value the securities
and other assets the Fund owns.
1) If market quotations are readily available for an investment, the
Adviser uses market value as follows:
. An equity security will be valued at the last sale price for the
security on the principal exchange on which the security is
traded, or at the last bid price on the principal exchange on
which such security is traded if such bid price is of a more
recent day than the last sale price.
. For any equity security not traded on an exchange but traded in
the over-the-counter market, the value will be the last sale price
available, or if no sale, at the latest available bid price.
. Debt securities will be valued at a composite fair market value,
"evaluated bid," which may be the last sale price, by a valuation
service selected by the Adviser and approved by the Investment
Company's Board of Directors.
2) If there are any portfolio securities or assets for which market quotations
are not readily available, the Adviser will use fair value pricing, as
determined in good faith by or under the direction of the Board of
Directors of the Investment Company.
3) If a money market security has a remaining maturity of 60 days or less, the
Adviser will use the amortized cost method of valuation to approximate
market value, as follows:
. A security is initially valued at cost on the date of purchase (or
at market value on the 61st day prior to maturity if the security
had more than 60 days remaining to maturity at date of purchase by
a Fund), and the Adviser assumes constant proportionate
amortization in value until maturity of any discount or premium.
. The maturity of a variable rate certificate of deposit is deemed
to be the next coupon date on which the interest rate is to be
adjusted.
20
<PAGE>
. Market value will be used instead if the amortized cost value is
materially different from the actual market value of the security.
4) For stock options and futures contracts, these valuations
apply:
. Stock options written by a Fund are valued at the mean of the last
bid and asked price on the principal exchange where the option is
traded, as of the close of trading on that exchange.
. When a Fund writes a call option, the amount of the premium is
included in the Fund's assets and the market value of the call is
included in its liabilities and adjusted thereafter to current
market value.
. If a call expires or if the Fund enters into a closing purchase
transaction, it realizes a gain (or a loss if the cost of the
transaction exceeds the premium received when the call was
written) without regard to any unrealized appreciation or
depreciation in the underlying securities, and the liability
related to such call is extinguished.
. If a call is exercised, the Fund realizes a gain or loss from
the sale of the underlying securities and the proceeds of the
sale increased by the premium originally received.
. A premium a Fund pays on the purchase of a put will be deducted
from a Fund's assets and an equal amount will be included as an
investment and subsequently adjusted to the current market value
of the put.
. Futures contracts, and options thereon, traded on commodities
exchanges are valued at their official settlement price as of the
close of such commodities exchanges.
TAXATION OF THE INVESTMENT COMPANY
Taxes on Funds' Investment Earnings and Income
- -------------------------------------------------------------------------------
The Investment Company has in the past elected the special tax treatment
afforded a "regulated investment company" under Subchapter M of the Internal
Revenue Code, and it intends to continue to qualify under Subchapter M. The
Investment Company will not owe Federal income tax on the ordinary income and
net realized capital gains that it distributes to shareholders, if it
qualifies as a regulated investment company.
If the Investment Company were to fail to qualify as a regulated investment
company, it would be subject to Federal income tax on the Funds' ordinary
income and net realized capital gains, whether or not it distributes the
income and gains to shareholders. If the Funds were to pay Federal income tax,
their investment performance would be negatively affected.
Income Dividends and Capital Gains Distributions
- -------------------------------------------------------------------------------
Funds of the Investment Company declare dividend and other distributions at
least annually. The dividends and distributions are 100% reinvested in
additional full and fractional shares of the Fund to which they relate, both
for net investment income and net realized short- or long-term capital gains.
For each Fund, the Investment Company intends to distribute all net realized
long- or short-term capital gains, if any, and net investment income to the
shareholders of the Fund.
The tax treatment of the Insurance Companies and the Separate Accounts and the
tax implications of an investment in any Contract are described in the
prospectus or brochure for the Contract.
DISTRIBUTION ARRANGEMENTS
The Investment Company sells shares of its Funds on a continuous basis, and it
sells only to the Separate Accounts of the Insurance Companies. The shares are
sold at their respective net asset values, without the imposition of a sales
charge. The Investment Company has entered into a Distribution Agreement with
Mutual of America, as principal underwriter, for the distribution of the
Funds' shares. Mutual of America is a registered broker-dealer with the
National Association of Securities Dealers, Inc.
21
<PAGE>
YIELD AND PERFORMANCE INFORMATION
Performance information is computed separately for each Fund in accordance
with the formulas described below. At any time in the future, total return and
yields may be higher or lower than in the past and there can be no assurance
that any historical results will continue.
Yield of the Money Market Fund. The Money Market Fund calculates a seven-day
"current yield" (eight days when the seventh prior day has no net asset value
because the Investment Company is closed on that day) based on a hypothetical
shareholder account containing one share at the beginning of the seven-day
period. The return is calculated for the period by determining the net change
in the hypothetical account's value for the period, excluding capital changes.
The net change is divided by the share value at the beginning of the period to
give the base period return. This base period return is then multiplied by
365/7 to annualize the yield figure, which is carried to the nearest one-
hundredth of one percent.
Realized capital gains or losses and unrealized appreciation or depreciation
of the assets of the Money Market Fund are included in the hypothetical
account for the beginning of the period but changes in these items during the
period are not included in the value for the end of the period. Income other
than investment income is excluded for the period. Values also reflect asset
charges (for advisory fees) as well as brokerage fees and other expenses.
Current yields will fluctuate daily. Accordingly, yields for any given seven-
day period do not necessarily represent future results. It should be
remembered that yield depends on the type, quality, maturities and rates of
return of the Money Market Fund's investments, among other factors. The Money
Market Fund yield does not reflect the cost of insurance and other insurance
company separate account charges. It also should not be compared to the yield
of money market funds made available to the general public because they may
use a different method to calculate yield. In addition, their yields are
usually calculated on the basis of a constant one dollar price per share and
they pay out earnings and dividends which accrue on a daily basis.
The following is an example of the calculation of the Money Market Fund's
yield for the seven-day period ended December 28, 1999. Yields may fluctuate
substantially from the example shown.
1. Value for December 21, 1999
2. Value for December 28, 1999 (exclusive of capital changes and any
non-investment income)
3. Net change equals Line 1 subtracted from Line 2
4. Base period return equals Line 3 divided by Line 1
5. Current yield equals Line 4 annualized (multiplied by 365/7)
The Money Market Fund calculates effective yield by following steps 1-4 above
to obtain a base period return, then compounding the base period return as
follows:
Effective Yield = [(Base Period Return + 1) /365///7/] - 1
Calculation of Total Return and Average Annual Total Return. Total Return
reflects changes in the price of a Fund's shares and assumes that any
dividends or capital gains distributions are reinvested in that Fund's shares
immediately rather than paid to the investor in cash.
Average Annual Total Return is calculated by finding the average annual
compounded rates of return of a hypothetical investment over the periods
shown, according to the following formula (Total Return is then expressed as a
percentage):
T = (ERV/P)/1//n - 1
Where:
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value. ERV is the value, at the end of the
applicable period, of a hypothetical $1,000 investment made at the
beginning of the applicable period.
22
<PAGE>
Yield of the Bond Funds. Yield of the shares of the Bond Funds will be
computed by annualizing net investment income, as determined by the
Commission's formula, calculated on a per share basis, for a recent one-month
or 30-day period and dividing that amount by the net asset value per share of
the Fund on the last trading day of that period. Net investment income will
reflect amortization of any market value premium or discount of fixed income
securities (except for obligations backed by mortgages or other assets) over
such period and may include recognition of a pro rata portion of the stated
dividend rate of dividend paying portfolio securities. The Yield of the Fund
will vary from time to time depending upon market conditions, the composition
of the portfolio and operating expenses allocated to the Fund.
Performance Comparisons. Each Fund may from time to time include the Total
Return, the Average Annual Total Return and Yield of its shares in
advertisements or in information furnished to shareholders. The Money Market
Fund may also from time to time include the Yield and Effective Yield of its
shares in information furnished to shareholders. Any statements of a Fund's
performance will also disclose the performance of the respective separate
account issuing the Contracts.
Each Fund may from time to time also include the ranking of its performance
figures relative to such figures for groups of mutual funds categorized by
Lipper Analytical Services ("Lipper") as having the same or similar investment
objectives or by similar services that monitor the performance of mutual
funds. Each Fund may also from time to time compare its performance to average
mutual fund performance figures compiled by Lipper in Lipper Performance
Analysis.
Advertisements or information the Investment Company furnishes to current or
prospective investors also may include evaluations of a Fund published by
nationally recognized ranking services and by financial publications that are
nationally recognized. These publications may include Barron's, Business Week,
CDA Technologies, Inc., Changing Times, Dow Jones Industrial Average,
Financial Planning, Financial World, Forbes, Fortune, Hulbert's Financial
Digest, Institutional Investor, Investors Daily, Money, Morningstar Mutual
Funds, The New York Times, Stanger's Investment Adviser, Value Line, The Wall
Street Journal, Wiesenberger Investment Company Service and USA Today.
In reports or other communications to shareholders, the Investment Company
also may describe general economic and market conditions affecting the Funds
and may compare the performance of the Funds with (1) that of mutual funds
included in the rankings prepared by Lipper or similar investment services
that monitor the performance of insurance company separate accounts or mutual
funds, (2) IBC/Donoghue's Money Fund Report, (3) other appropriate indices of
investment securities and averages for peer universe of funds which are
described in this Statement of Additional Information, or (4) data developed
by the Adviser or any of the Subadvisers derived from such indices or
averages.
Comparative Indices for the Funds
- -------------------------------------------------------------------------------
The Investment Company compares the performance of each Fund (other than the
Money Market Fund) against a widely recognized index or indices for stock or
bond market performance, based on the type of securities the Fund purchases.
The annual and semi-annual financial reports that the Investment Company
prepares will contain graphs with the Funds' performances compared to their
indices.
It is not possible for an investor to directly invest in an unmanaged index.
Performance comparisons to indices are for informational purposes and do not
reflect any actual investment. The Funds pay investment advisory and other
expenses that are not applicable to unmanaged indices.
Equity Index Fund and All America Fund: Performance of each of these Funds is
compared to the Standard & Poor's Composite Index of 500 Stocks (the S&P 500
Index).
The S&P 500 Index is a market value-weighted and unmanaged index showing the
changes in the aggregate market value of 500 stocks relative to the base
period 1941-43, with an average market value of approximately $9 billion. The
S&P 500 Index is composed almost entirely of common stocks of companies listed
on the NYSE, although the common stocks of a few companies listed on the
American Stock Exchange or traded OTC are included. The 500 companies
represented include approximately 400 industrial concerns, as well as
financial services, utility and transportation concerns. The S&P 500 Index
represents about 80% of the market value of all issues traded on the NYSE.
Mid-Cap Equity Index Fund: Performance is compared to the Standard & Poor's
MidCap 400 Index (the S&P Midcap 400 Index).
23
<PAGE>
The S&P Mid-Cap 400 Index is a market value weighted and unmanaged index
showing the changes in the aggregate market value of 400 stocks issued by U.S.
companies with medium market capitalizations, generally between $300 million
and $5 billion and with an average market value of approximately $1.5 billion.
Almost 70% of the stocks are listed on the New York Stock Exchange and
approximately 30% are traded on the Nasdaq National Market (over-the-counter).
Aggressive Equity Fund: Performance is compared to the Russell 2000 Index.
The Russell 2000 Index is a market capitalization weighted index of the 2000
smallest companies in the Russell 3000 Index. The largest company in the
Russell 2000 Index has a current market value of approximately $1 billion. The
market capitalization of companies in the Index varies based on market
conditions and the companies included in the Index, which is adjusted yearly.
Composite Fund: Performance is compared to the S&P 500 Index, the Lehman
Government/Corporate Index and the 90-day Treasury bill rate. (See "Equity
Index Fund and All America Fund" above and "Bond Fund" below).
These three indices represent the three asset allocation categories in which
the Composite Fund invests.
Bond Fund: Performance is compared to the Lehman Brothers Government/Corporate
Bond Index (the Lehman Government/Corporate Index).
The Lehman Government/Corporate Index is a measure of the market value of
approximately 5,300 bonds with a face value currently in excess of $1 million,
which have at least one year to maturity and are rated "Baa" or higher
(investment grade) by a nationally recognized statistical rating agency.
Short-Term Bond Fund: Performance is compared to the Salomon Brothers 1-3 Year
Bond Index.
Mid-Term Bond Fund: Performance is compared to the Salomon Brothers 3-7 Year
Bond Index.
The Salomon Brothers 1-3 Year Bond Index and the 3-7 Year Bond Index are
comprised of the portion of the Salomon Brothers Broad Investment-Grade Bond
Index (BIG Index) with the maturity indicated. The BIG Index includes
Treasury, Agency, mortgage and corporate securities. It is market-
capitalization weighted and includes all fixed-rate bonds with a maturity of
one year or longer and a minimum of $50 million amount outstanding at entry
which remain in the index until their amount falls below $25 million ($200
million for mortgage securities).
24
<PAGE>
DESCRIPTION OF CORPORATE BOND RATINGS
Description of Corporate bond ratings of Moody's Investors Services, Inc.:
Aaa- Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred
to as "gilt-edge". Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
Aa- Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high-grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there
may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
A- Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment sometime in
the future.
Baa- Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics
as well.
Ba- Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty
of position characterizes bonds in this class.
B- Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time
may be small.
Caa- Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to
principal or interest.
Ca- Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked
shortcomings.
C- Bonds which are rated C are the lowest rated class of bonds and issues so
rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the
modifier 3 indicates that the issue ranks in the lower end of its generic
rating category.
Description of corporate bond ratings of Standard & Poor's Corporation:
AAA- Debt rated AAA has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is very strong.
AA- Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in small degree.
A- Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than debt in higher
rated categories.
BBB- Debt rated BBB is regarded as having an adequate capacity to pay interest
and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay interest and repay
principal for debt in this category than in higher-rated categories.
25
<PAGE>
<TABLE>
<C> <S>
BB - Debt rated BB, B, CCC and CC is regarded, on balance, as predominantly
B speculative with respect to the issuer's capacity to pay interest and
CCC repay principal in accordance with the terms of the obligation. BB
CC indicates the lowest degree of speculation and CC the highest degree of
speculation. While such debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties
or major risk exposures to adverse conditions.
C - The rating C is reserved for income bonds on which no interest is being
paid.
D - Debt rated D is in default, and payment of interest and/or repayment of
principal is in arrears.
</TABLE>
Plus (+) or Minus (-): The ratings from "AA" to "BB" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
INDEPENDENT AUDITORS
The financial statements included in this Statement of Additional Information
have been audited by Arthur Andersen LLP, independent public accountants, as
indicated in their report with respect thereto and are included herein in
reliance upon the authority of said firm as experts in giving audit reports.
Arthur Andersen LLP have been selected as the independent auditors of the
Investment Company for its fiscal year ending December 31, 1999. Arthur
Andersen LLP also acts as the independent auditors of the Insurance Companies.
Their address is 1345 Avenue of the Americas, New York, New York.
LEGAL MATTERS
The legal validity of the shares described in the Prospectus has been passed
on by Patrick A. Burns, Esq., Senior Executive Vice President and General
Counsel of the Investment Company.
CUSTODIAN
The Custodian of the securities and other assets held by the Investment
Company's Funds is The Chase Manhattan Bank, 1285 Avenue of the Americas, New
York, New York 10019.
USE OF STANDARD & POOR'S INDICES
The Equity Index Fund, the Indexed Assets of the All America Fund and the Mid-
Cap Equity Index Fund (together, the Indexed Portfolios) are not sponsored,
endorsed, sold or promoted by Standard & Poor's, a division of the McGraw-Hill
Companies, Inc. (S&P). S&P makes no representation or warranty, express or
implied, to the owners of the Indexed Portfolios or any member of the public
regarding the advisability of investing in securities generally or in the
Indexed Portfolios particularly or the ability of the S&P 500 Index or the S&P
MidCap 400 Index to track general stock market performance. S&P's only
relationship to the Investment Company is the licensing of certain trademarks
and trade names of S&P and of the S&P 500 Index and the S&P MidCap 400 Index
which is determined, composed and calculated by S&P without regard to the
Indexed Portfolios. S&P has no obligation to take the needs of the Indexed
Portfolios or the owners of the Indexed Portfolios into consideration in
determining, composing or calculating the S&P 500 Index or the S&P MidCap 400
Index. S&P is not responsible for and has not participated in the calculation
of the net asset values of the Indexed Portfolios, the amount of the shares of
the Indexed Portfolios or the timing of the issuance or sale of the Indexed
Portfolios. S&P has no obligation or liability in connection with the
administration, marketing or trading of the Indexed Portfolios.
S&P does not guarantee the accuracy and/or the completeness of the S&P 500
index or the S&P MidCap 400 Index or any data included therein. S&P makes no
warranty, express or implied, as to results to be obtained by the Indexed
Portfolios, owners of the Indexed Portfolios, or any other person or entity
from the use of the S&P 500 index, the S&P MidCap 400 Index or any data
included therein. S&P makes no express or implied warranties, and expressly
disclaims all warranties of merchantability or fitness for a particular
purpose or use with respect to the S&P 500 Index, the S&P MidCap 400 Index or
any data included therein. Without limiting any of the foregoing, in no event
shall S&P have any liability for any special, punitive, indirect, or
consequential damages (including lost profits), even if notified of the
possibility of such damages.
26
<PAGE>
FINANCIAL STATEMENTS
Financial statements of the Investment Corporation for the year ended December
31, 1999 are included as follows:
[To be included by Post-Effective Amendment]
<TABLE>
<CAPTION>
Page
----
<S> <C>
President's Message........................................................ 28
Portfolio Management Discussions........................................... 29
Portfolio of Investments in Securities:
Money Market Fund......................................................... 36
All America Fund.......................................................... 37
Equity Index Fund......................................................... 45
Mid-Cap Equity Index Fund................................................. 50
Bond Fund................................................................. 55
Short-Term Bond Fund...................................................... 58
Mid-Term Bond Fund........................................................ 60
Composite Fund............................................................ 62
Aggressive Equity Fund.................................................... 66
Statement of Assets and Liabilities........................................ 68
Statement of Operations.................................................... 69
Statements of Changes in Net Assets........................................ 70
Financial Highlights....................................................... 72
Notes to Financial Statements.............................................. 78
Report of Independent Public Accountants................................... 82
</TABLE>
27
<PAGE>
Mutual of America Investment Corporation
We are pleased to present the results of Funds offered by Mutual of America
for the year ending December 31, 1999. Eight of the nine funds delivered
positive returns. In addition, all of the nine funds were either in-line with
or ahead of their respective benchmarks.
The U.S. economy enjoyed an enviable combination of strong Gross Domestic
Product growth, low inflation, solid corporate profits and moderate interest
rates in 1999. The economy continued its near record expansion as consumer
confidence reached an all-time high, due largely to high employment levels and
a surging stock market. Global economies stabilized, providing further
foundation and fuel for the domestic economy.
The Federal Reserve, concerned with a strong expanding economy and tight
labor markets, responded with three rate increases totaling 75 basis points
during 1999. Long rates rose approximately 140 basis points during the year.
The strong economy, higher commodity prices and tight labor markets have
increased the potential for higher rates going forward.
The equity market, as represented by the S&P 500 Index, posted a record
ninth year of positive return. Technology was the dominant factor across all
capitalization levels within the equity markets, as evidenced by the NASDAQ's
remarkable 86% return. Investors seeking growth opportunities favored smaller
capitalization stocks, allowing them to outperform the steadier, but slower
growing, large caps.
Total Returns -- Year Ended to December 31, 1999
The total return performance of each Fund for the year ended December 31,
1999 was as follows (please note that the Mid-Cap Equity Index Fund commenced
operations on May 3, 1999):
<TABLE>
<S> <C>
Money Market Fund..................................................... + 5.1%
All America Fund...................................................... +25.8%
Equity Index Fund..................................................... +20.6%
Mid-Cap Equity Index Fund............................................. +11.8%
Bond Fund............................................................. - 1.9%
Short-Term Bond Fund.................................................. + 4.2%
Mid-Term Bond Fund.................................................... + 1.4%
Composite Fund........................................................ +15.2%
Aggressive Equity Fund................................................ +43.3%
</TABLE>
The above total return performance figures do not reflect the deduction of
respective Separate Account fees and expenses imposed by Mutual of America
Life Insurance Company or The American Life Insurance Company of New York.
On the pages which immediately follow are brief presentations and graphs for
each Fund (except the Money Market Fund and the Mid-Cap Equity Index Fund)
which illustrate each Fund's respective:
. Historical total return achieved over specified periods, expressed as an
annual average rate and as a cumulative rate;
. Equivalent in dollars of a $10,000 hypothetical investment at the
beginning of each specified period; and
. Historical performance compared with an appropriate index.
The portfolios of each Fund and financial statements are presented in the
pages which then follow.
Thank you for your continued investment in our Funds.
Sincerely,
/s/ Dolores J. Morrissey
Dolores J. Morrissey
Chairman of the Board and President,
Mutual of America Investment Corporation
28
<PAGE>
MONEY MARKET FUND
The Money Market Fund's investment objective is the realization of high
current income to the extent consistent with the maintenance of liquidity,
investment quality and stability of capital. Through investing in high quality
commercial paper and other short-term instruments, the Fund returned 5.1% for
1999. Short-term rates rose substantially during the year, allowing the Fund
to achieve a higher current return in December than was available from similar
maturities the previous January. The seven-day effective yield as of February
15, 2000 is 5.7%. As with all performance reportings, this yield is not
necessarily indicative of future annual yields.
ALL AMERICA FUND
The All America Fund's investment objective is to outperform the Standard &
Poor's 500 Index. The Fund is approximately 60% invested in the 500 stocks
that comprise the S&P 500. In 1999, the remaining 40% of the Fund was actively
managed by three subadvisors and Mutual of America Capital Management
Corporation. Each manager invests approximately 10% of the Fund's assets,
using a different investment approach. The four approaches are large cap
growth, small cap growth, large cap value and small cap value.
The Fund returned 25.8% for 1999, exceeding the Index's return of 21.0%. The
Fund's 1999 performance reflected investors' continued quest for growth
opportunities -- both the large and small cap growth portions significantly
outperformed the value segments. Nevertheless, the small cap value segment
performed strongly. Only the large cap value portion turned in a negative
performance.
GROWTH OF A 10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------- -------------------------------------------
<S> <C>
All America Fund* S & P Index
---------------- -----------
Period Growth Total Return Period Growth Total Return
Ended of ------------------ Ended of ------------------
12/31/99 $10,000 Cumu- Annual 12/31/99 $10,000 Cumu- Annual
lative Average lative Average
- ------------------------------------------- -------------------------------------------
1 Year $12,580 25.8% 25.8% 1 Year $12,104 21.0% 21.0%
Since 5/2/94* $32,967 229.7% 29.1% Since 5/2/94 $36,323 263.2% 31.9%
5 Years $31,890 218.9% 26.1% 5 Years $35,120 251.2% 28.6%
10 Years $45,798 358.0% 16.4% 10 Years $53,262 432.6% 18.2%
- ------------------------------------------- ------------------------------------------
</TABLE>
* Prior to May 2, 1994, the Fund was known as the Stock Fund, has a different
investment objective and did not have any subadvisors. Performance data which
includes periods prior to 5/2/94 reflecat performance results achieved in
accordance with the previous objective of the Stock Fund.
The line reprsenting 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.
29
<PAGE>
MID CAP EQUITY INDEX FUND
The Standard & Poor's Mid-Cap Equity Index Fund invests in the 400 stocks
included in the S&P 400. The S&P 400 Index was created in early 1991. The Fund
became available on May 3, 1999 and performance figures reflect performance
from that date forward. Companies included in the Index were selected by
Standard & Poor's with the expectation that they would be typical of this
asset class, the medium-capitalized sector of the U.S. securities market. The
Fund's performance was 11.8%, equaling the performance of the S&P 400 Index
for the same period. For 1999, the Technology sector single-handedly erased
negative returns posted by the Basic Materials, Consumer Cyclicals, Consumer
Staples, Financial, Transportation and Utility sectors. Positive performance
was also received from the Communications and Energy sectors. During the
fourth quarter of 1999, mid-cap stocks of larger capitalization were strong,
although the smaller cap stocks within the Index outperformed for the year.
Investors appear to have accepted stocks with high price/earnings ratios in
the belief that these companies possess higher earnings growth potential than
those with lower P/Es.
EQUITY INDEX FUND
The Equity Index Fund invests in the 500 stocks which comprise the S&P 500
Index. The S&P 500 is a market-value weighted index of 500 domestic stocks
that are traded on the New York Stock Exchange, American Stock Exchange and
NASDAQ National Market System. The weightings make each company's influence on
the Index's performance directly proportional to that company's market value.
The companies included in the Index tend to be industry leaders. The Fund's
performance for 1999 was 20.6%, closely mirroring the S&P's 21.0% return. The
Index enjoyed a fifth straight year of double-digit returns and a record ninth
consecutive year of positive returns. The prevailing theme of 1999 was the
dominance of technology, which was the best performing sector, returning 75%
for the year and contributing nearly three-quarters of the Index's annual
performance. Three other sectors outperformed the overall index, including
Basic Materials, Capital Goods and Consumer Cyclicals. The worst performing
sectors were Consumer Staples and Health Care. Investor perceptions of Federal
reserve actions, a bias towards large cap stocks and a persistent search for
earnings growth drove multiple expansion, which contributed two-thirds of
annual return.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
- -------------------------------------- ------------------------------------
<S> <C>
Equity Index Fund S&P 500 Index
------------------ -------------
Period Growth Total Return Period Growth Total Return
Ended of ------------ Ended of -------------
12/31/99 $10,000 Cumu- Annual 12/31/99 $10,000 Cumu- Annual
lative Average lative Average
- -------------------------------------- ------------------------------------
1 Year $12,062 20.6% 20.6% 1 Year $12,104 21.0% 21.0%
5 years $34,617 246.2% 28.2% 5 Years $35,120 251.2% 28.6%
Since 2/5/93 Since 2/5/93
(Inception) $37,320 273.2% 21.0% (Inception) $38,180 281.8% 21.4%
- -------------------------------------- ------------------------------------
</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.
30
<PAGE>
BOND FUND
The Bond Fund seeks a high level of return consistent with the preservation
of capital through investments in publicly traded debt securities. The Fund
primarily invests in corporate and U.S. Government agency securities, which
yield more than U.S. Treasury issues. The Fund's benchmark, the Lehman Bros.
Government/Corporate Bond Index, had a rare negative return for 1999 (-2.2%),
as did the Bond Fund (-1.9%), although the Bond Fund's less volatile nature
enabled it to outperform the Index by a modest margin. Fears of inflation, fed
by a strong domestic economy, a booming stock market, and higher oil prices,
depressed bond returns. The inability of coupon income to keep pace with
interest rate increases further damaged prospects for bond returns.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
- ---------------------------------- ---------------------------------------
Bond Fund Lehman Bros. Gov't/Corp. Bond Index
--------- ---------------------------------------
Period Growth Total Return Period Growth Total Return
Ended of ------------ Ended of -------------
12/31/99 $10,000 Cumu- Annual 12/31/99 $10,000 Cumu- Annual
lative Average lative Average
- ---------------------------------- ---------------------------------------
1 Year $9,809 -1.9% -1.9% 1 Year $10,000 -2.2% -2.2%
5 Years $14,346 43.5% 7.5% 5 Years $14,426 44.3% 7.6%
10 Years $20,769 107.7% 7.6% 10 Years $20,912 109.1% 7.7%
- ---------------------------------- ---------------------------------------
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.
31
<PAGE>
SHORT-TERM BOND FUND
The Short-Term Bond Fund seeks a high level of return consistent with the
preservation of capital through investments in publicly traded debt
securities. The Fund primarily invests in corporate, U.S. Government agency,
and mortgage backed securities, which yield more than U.S. Treasury issues.
The Fund's strategy focused on tightly structured U.S. Government agency
mortgage securities, which were relatively less volatile than other securities
of similar maturity. This enabled the Fund to outperform its benchmark, the
Salomon Brothers 1-3 Year Bond Index, 4.2% to 3.3%.
GROWTH OF A $ 10,000 INVESTMEMT
[LINE GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------ -------------------------------------
<S> <C>
Short-Term Bond Fund Salomon Bros. 1-3 Year Bond Index
-------------------- -------------------------------------
Period Growth Total Return Period Growth Total Return
Ended of ------------- Ended of ---------------
12/31/99 $10,000 Cumu- Annual 12/31/99 $10,000 Cumu- Annual
lative Average lative Average
- ------------------------------------ -------------------------------------
1 Year $10,424 4.2% 4.2% 1 Year $10,328 3.3% 3.3%
5 Years $13,202 32.0% 5.7% 5 Years $13,742 37.4% 6.6%
Since 2/5/93 Since 2/5/93
(Inception) $13,994 39.9% 5.0% (Inception) $14,444 44.4% 5.5%
- ------------------------------------ -------------------------------------
</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.
32
<PAGE>
MID-TERM BOND FUND
The Mid-Term Bond Fund seeks a high level of return consistent with the
preservation of capital through investment in publicly traded debt securities.
The Fund primarily invests in corporate and U.S. Government agency securities
which yield more than U.S. Treasury issues. Interest rates rose substantially
during the year due to a strong economy and investor fears of renewed
inflationary pressures. By keeping average maturities slightly shorter than
those of securities held in the benchmark index, the Fund returned 1.4% for
the 1999 calendar year versus the Salomon Brothers 3-7 Year Bond Index return
of -1.0%.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
- -------------------------------------- --------------------------------------
<S> <C>
Mid-Term Bond Fund Salomon Bros. 3-7 Year Bond Index
- -------------------------------------- --------------------------------------
Period Growth Total Return Period Growth Total Return
------------ ----------------
Ended of Cumu- Annual Ended of Cumu- Annual
12/31/99 $10,000 lative Average 12/31/99 $10,000 lative Average
- -------------------------------------- --------------------------------------
1 Year $10,138 1.4% 1.4% 1 Year $9,900 -1.0% -1.0%
5 Years $13,982 39.8% 6.9% 5 Years $14,172 41.7% 7.2%
Since 2/5/93 Since 2/5/93
(inception) $ 14,479 44.8% 5.5% (inception) $14,790 47.9% 5.8%
- -------------------------------------- --------------------------------------
</TABLE>
The line representing the peformance return of the Mid-Term Bond Fund includes
expenses, such as transaction costs and mangement fees, that reduce returns,
while the performance return line of the index does not.
33
<PAGE>
COMPOSITE FUND
The Composite Fund's investment objective is the achievement of a high total
rate of return, through both appreciation of capital and current income, as is
consistent with prudent investment risk. This is carried out through
investment in both stocks and fixed income securities. The Fund may invest in
approximately 100 stocks, all of which are included in the S&P 500 Index. They
include the Index's top 25 stocks by market capitalization, in which the Fund
invests in approximately the same weight as their representation within the
Index. The remaining 75 stocks are selected for their unique opportunities and
attractiveness, as well as to keep the Fund's sector weights similar to the
Index. The Bond portion of the Fund invests primarily in corporate and U.S.
Government agency issues, which yield more than U.S. Treasury securities. The
Lehman Bros. Government/Corporate Index returned -2.2%. The S&P 500 returned
21.0%. The Composite Fund returned 15.2% on a consolidated basis, which is
comprised of approximately 60% equities, with the rest mainly fixed income
securities.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
- ---------------------------------- --------------------------------
Composite Fund S & P 500 Index
-------------- ---------------
Period Growth Total Return Period Growth Total Return
--------------- --------------
Ended of Cumu- Annual Ended of Cumu- Annual
12/31/99 $10,000 lative Average 12/31/99 10,000 lative Average
- ---------------------------------- --------------------------------
1 Year $11,518 15.2% 15.2% 1 Year $12,104 21.0% 21.0%
5 Years $21,166 117.7% 16.2% 5 Years $35,120 251.2% 28.6%
10 Years $30,987 209.9% 12.0% 10 Years $53,262 432.6% 18.2%
- ---------------------------------- --------------------------------
- ---------------------------------- ----------------------------------
Lehman Bros Gov't/Corp. Bond Index Salomon Bros. 3-Month T-Bill Index
- ---------------------------------- ----------------------------------
Period Growth Total Return Period Growth Total Return
--------------- ---------------
Ended of Cumu- Annual Ended of Cumm- Annual
12/31/99 $10,000 lative Average 12/31/99 10,000 lative Average
- ---------------------------------- ---------------------------------
1 Year $9,785 -2.2% -2.2% 1 Year $10,474 4.7% 4.7%
5 Years $14,426 44.3% 7.6% 5 Years $12,890 28.9% 5.2%
10 Years $20,912 109.1% 7.7% 10 Years $16,382 63.8% 5.1%
- ---------------------------------- ---------------------------------
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 lines of the indices do not.
34
<PAGE>
AGGRESSIVE EQUITY FUND
The Fund's investment objective is capital appreciation through investing in
stocks characterized as both growth and value stocks. It is expected that
approximately 50% of the Fund's assets will be invested in each category.
During 1999, growth stocks, both in the Fund and in the broader market,
significantly outperformed value stocks, as investors favored companies which
exhibited earnings growth, some of which was expected and some which was not.
The Fund was heavily weighted in the Technology sector, which has dominated
the equity markets as it has offered the most growth potential. The Fund
returned 43.3%, significantly outperforming its benchmark, the Russell 2000
Index, which returned 21.3%.
[CHART ILLUSTRATING GROWTH OF A $10,000 INVESTMENT]
35
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Discount Face Amortized
Rating* Rate Maturity Amount Cost
------- -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper
Allied Signal, Inc. ......... A1/P1 5.83% 01/18/00 $2,000,000 $ 1,994,454
Allied Signal, Inc. ......... A1/P1 5.90 01/27/00 1,000,000 995,716
American Express Credit
Corp........................ A1/P1 5.80 01/19/00 575,000 573,318
Archer-Daniels-Midland Co.... A1+/P1 6.30 01/25/00 250,000 248,947
Associates Corp. North
America..................... A1+/P1 5.92 02/04/00 1,000,000 994,386
AT&T Corp.................... A1+/P1 6.01 01/25/00 2,500,000 2,489,951
Avery Dennison Corp.......... A1/P1 5.93 01/14/00 2,500,000 2,494,624
Baltimore Gas & Electric Co.. A1/P1 5.90 01/13/00 1,410,000 1,407,216
Bear Stearns Cos Inc. ....... A1/P1 5.94 01/10/00 2,500,000 2,496,233
Bell Atlantic Network Funding
Corp........................ A1/P1 5.88 01/21/00 2,500,000 2,491,793
Bemis, Inc................... A1/P1 6.03 01/19/00 2,900,000 2,891,229
British Telecommunications... A1+/P1 5.85 01/18/00 957,000 954,337
British Telecommunications... A1+/P1 5.86 01/24/00 1,295,000 1,290,117
Campbell Soup Company........ A1+/P1 5.80 01/21/00 2,500,000 2,491,905
Cargill, Inc................. A1+/P1 6.25 01/14/00 2,000,000 1,995,474
Carolina Power & Light Corp.. A1/P1 6.40 01/26/00 870,000 866,123
CIT Group Holdings, Inc. .... A1/P1 5.95 01/04/00 2,500,000 2,498,748
CIT Group Holdings, Inc...... A1/P1 5.87 01/10/00 500,000 499,263
Coca-Cola Co................. A1+/P1 5.78 01/13/00 1,020,000 1,018,022
DaimlerChrysler AG........... A1/P1 5.95 01/18/00 1,000,000 997,149
DaimlerChrysler AG........... A1/P1 5.95 02/07/00 2,025,000 2,012,567
Du Pont (E.I.) de Nemours.... A1+/P1 5.78 01/26/00 1,180,000 1,175,234
Ford Motor Credit Corp....... A1/P1 5.98 01/14/00 1,300,000 1,297,179
Ford Motor Credit Corp....... A1/P1 5.90 01/19/00 2,000,000 1,994,075
General Electric Capital
Corp........................ A1+/P1 5.95 01/20/00 743,000 740,655
General Electric Capital
Corp........................ A1+/P1 5.80 01/21/00 500,000 498,378
Great Lakes Chemical Corp.... A1/P1 5.90 01/28/00 2,500,000 2,488,892
Great Lakes Chemical Corp.... A1/P1 6.05 01/28/00 425,000 423,065
GTE Funding, Inc............. A1/P1 5.90 01/18/00 2,500,000 2,492,989
Heinz (H.J.) Co.............. A1/P1 6.15 01/11/00 2,375,000 2,370,932
Heinz (H.J.) Co.............. A1/P1 6.05 01/13/00 550,000 548,887
Merrill Lynch & Co., Inc..... A1+/P1 5.88 01/21/00 1,000,000 996,712
Merrill Lynch & Co., Inc..... A1+/P1 5.95 01/28/00 695,000 691,882
Merrill Lynch & Co., Inc..... A1+/P1 6.00 01/28/00 1,500,000 1,493,222
Minnesota Mining & Mfg. Co... A1+/P1 6.05 01/28/00 1,200,000 1,194,540
Northern Illinois Gas Co..... A1+/P1 5.88 01/21/00 2,855,000 2,845,629
Northern States Power Co..... A1+/P1 6.00 01/10/00 2,054,000 2,050,908
Panasonic Finance, Inc....... A1+/P1 5.87 02/03/00 2,795,000 2,779,897
Procter & Gamble Co.......... A1+/P1 6.10 01/12/00 500,000 499,065
Procter & Gamble Co.......... A1+/P1 5.85 01/26/00 985,000 980,979
SBC Communications, Inc...... A1+/P1 5.82 01/20/00 2,500,000 2,492,271
Sony Capital Corp............ A1/P1 6.27 01/18/00 2,500,000 2,492,576
Toyota Credit de Puerto Rico. A1+/P1 6.37 01/13/00 1,000,000 997,870
Toyota Credit de Puerto Rico. A1+/P1 5.98 01/21/00 1,000,000 996,661
Toyota Credit de Puerto Rico. A1+/P1 6.02 02/03/00 1,000,000 994,459
Toyota Motor Credit Corp..... A1+/P1 6.04 01/13/00 295,000 294,404
UBS Finance (Delw.) Inc...... A1+/P1 4.00 01/03/00 2,250,000 2,249,500
Xerox Credit................. A1/P1 5.87 01/18/00 1,800,000 1,794,964
-----------
Total Short-Term Debt
Securities:
(Cost: $73,577,397) 100%..... $73,577,397
===========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investors
Services, Inc.
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS:
Common Stocks
3Com Corp. .............................................. 14,572 $ 684,884
Abbott Laboratories...................................... 64,928 2,357,698
Adaptec, Inc. ........................................... 4,313 215,111
ADC Telecommunications, Inc. ............................ 6,318 458,450
Adobe Systems, Inc. ..................................... 5,077 341,428
Advanced Micro Devices, Inc. ............................ 6,217 179,904
AES Corp. ............................................... 8,717 651,596
Aetna, Inc. ............................................. 6,321 352,791
Aflac, Inc. ............................................. 11,239 530,340
Air Products & Chemicals, Inc. .......................... 9,685 325,053
Alberto-Culver Co. Cl B.................................. 2,371 61,201
Albertson's, Inc. ....................................... 17,888 576,888
Alcan Aluminum Ltd. ..................................... 9,256 381,232
ALCOA, Inc. ............................................. 15,475 1,284,425
Allegheny Technologies, Inc. ............................ 3,951 88,651
Allergan, Inc. .......................................... 5,572 277,207
Allied Waste Industries, Inc. ........................... 7,976 70,289
Allstate Corp. .......................................... 34,016 816,384
Alltel Corp. ............................................ 13,259 1,096,354
Alza Corp. .............................................. 4,340 150,273
Amerada Hess Corp. ...................................... 3,830 217,353
Ameren Corp. ............................................ 5,795 189,786
America Online, Inc. .................................... 94,415 7,122,432
American Electric Power, Inc. ........................... 8,198 263,361
American Express Co. .................................... 18,907 3,143,289
American General Corp. .................................. 10,437 791,907
American Greetings Corp. Cl A............................ 2,725 64,378
American Home Products Corp. ............................ 55,147 2,174,860
American Int'l. Group, Inc. ............................. 65,389 7,070,186
Amgen, Inc. ............................................. 43,143 2,591,276
AMR Corp. ............................................... 6,254 419,018
Amsouth Bancorporation................................... 16,517 318,985
Anadarko Petroleum Corp. ................................ 5,386 183,797
Analog Devices, Inc. .................................... 7,382 686,526
Andrew Corp. ............................................ 3,464 65,600
Anheuser-Busch Cos., Inc. ............................... 19,651 1,392,765
Aon Corp. ............................................... 10,839 433,560
Apache Corp. ............................................ 4,818 177,965
Apple Computer, Inc. .................................... 6,795 698,611
Applied Materials, Inc. ................................. 15,982 2,024,720
Archer-Daniels-Midland Co. .............................. 25,694 313,146
Armstrong World Inds., Inc. ............................. 1,690 56,404
Ashland, Inc. ........................................... 3,047 100,361
Associates First Capital Corp. Cl A...................... 30,757 843,895
AT&T Corp. .............................................. 134,954 6,848,916
Atlantic Richfield Co. .................................. 13,630 1,178,995
Autodesk, Inc. .......................................... 2,576 86,940
Automatic Data Processing, Inc. ......................... 26,401 1,422,354
AutoZone, Inc. .......................................... 6,097 197,009
Avery Dennison Corp. .................................... 4,759 346,812
Avon Products, Inc. ..................................... 10,234 337,722
Baker Hughes, Inc. ...................................... 13,904 292,853
Ball Corp. .............................................. 1,284 50,558
Bank of America Corp. ................................... 72,102 3,618,619
Bank of New York, Inc. .................................. 31,101 1,244,040
Bank One Corp. .......................................... 48,438 1,553,043
Bard (C.R.), Inc. ....................................... 2,164 114,692
Barrick Gold Corp. ...................................... 16,660 294,674
Bausch & Lomb, Inc. ..................................... 2,424 165,893
Baxter International, Inc. .............................. 12,287 771,777
BB & T Corp. ............................................ 13,978 382,648
Bear Stearns Cos., Inc. ................................. 5,033 215,161
Becton Dickinson & Co. .................................. 10,572 282,801
Bed Bath & Beyond, Inc. ................................. 5,906 205,234
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Bell Atlantic Corp. ..................................... 65,581 $ 4,037,330
BellSouth Corp. ......................................... 79,499 3,721,547
Bemis, Inc. ............................................. 2,211 77,109
Best Buy, Inc. .......................................... 8,669 435,075
Bestfoods................................................ 11,781 619,239
Bethlehem Steel Corp. ................................... 5,539 46,389
Biomet, Inc. ............................................ 4,765 190,600
Black & Decker Corp. .................................... 3,675 192,019
Block (H. & R.), Inc. ................................... 4,123 180,381
BMC Software, Inc. ...................................... 10,222 817,121
Boeing Co. .............................................. 39,470 1,640,472
Boise Cascade Corp. ..................................... 2,409 97,565
Boston Scientific Corp. ................................. 17,515 383,141
Briggs & Stratton Corp. ................................. 991 53,142
Bristol-Myers Squibb Co. ................................ 83,780 5,377,629
Brown-Forman Corp. Cl B.................................. 2,892 165,567
Brunswick Corp. ......................................... 3,878 86,286
Burlington Northern Santa Fe Corp. ...................... 19,299 468,001
Burlington Resources, Inc. .............................. 9,186 303,712
Cabletron Systems, Inc. ................................. 7,626 198,276
Campbell Soup Co. ....................................... 18,070 699,083
Capital One Financial Corp. ............................. 8,328 401,306
Cardinal Health, Inc. ................................... 11,836 566,649
Carnival Corp. .......................................... 26,055 1,245,755
Carolina Power & Light Co. .............................. 6,740 205,149
Caterpillar, Inc. ....................................... 15,017 706,738
CBS Corp. ............................................... 32,199 2,058,724
Cendant Corp. ........................................... 30,030 797,672
Centex Corp. ............................................ 2,511 61,990
Central & South West Corp. .............................. 8,981 179,620
CenturyTel, Inc. ........................................ 5,899 279,465
Ceridian Corp. .......................................... 6,109 131,725
Champion International Corp. ............................ 4,063 251,652
Charles Schwab Corp. .................................... 34,631 1,328,965
Chase Manhattan Corp. ................................... 34,834 2,706,166
Chevron Corp. ........................................... 27,717 2,400,985
Chubb Corp. ............................................. 7,431 418,458
CIGNA Corp. ............................................. 7,854 632,738
Cincinnati Financial Corp. .............................. 6,931 216,161
CINergy Corp. ........................................... 6,712 161,927
Circuit City Group, Inc. ................................ 8,584 386,817
Cisco Systems, Inc. ..................................... 138,149 14,799,212
Citigroup, Inc. ......................................... 142,401 7,912,156
Citrix Systems, Inc. .................................... 3,785 465,555
Clear Channel Communications, Inc. 14,296 1,275,918
Clorox Co. .............................................. 9,984 502,944
CMS Energy Corp. ........................................ 4,891 152,538
Coastal Corp. ........................................... 9,022 319,717
Coca-Cola Co. ........................................... 104,319 6,076,582
Coca-Cola Enterprises, Inc. ............................. 17,970 361,646
Colgate-Palmolive Co. ................................... 24,605 1,599,325
Columbia Energy Group.................................... 3,432 217,074
Columbia/HCA Healthcare Corp. ........................... 23,790 697,344
Comcast Corp. Cl A....................................... 31,747 1,605,208
Comerica, Inc. .......................................... 6,605 308,371
Compaq Computer Corp. ................................... 71,799 1,943,060
Computer Associates Intl., Inc. ......................... 22,765 1,592,127
Computer Sciences Corp. ................................. 7,032 665,403
Compuware Corp. ......................................... 15,114 562,997
Comverse Technology Inc. ................................ 2,986 432,224
Conagra, Inc. ........................................... 20,790 469,074
Conoco, Inc. ............................................ 26,450 657,944
Conseco, Inc. ........................................... 13,816 246,961
Consolidated Edison, Inc. ............................... 9,335 322,058
</TABLE>
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Consolidated Natural Gas Co. ............................ 4,051 $ 263,062
Consolidated Stores Corp. ............................... 4,675 75,969
Constellation Energy Group, Inc. ........................ 6,316 183,164
Cooper Industries, Inc. ................................. 3,977 160,820
Cooper Tire & Rubber Co. ................................ 3,200 49,800
Coors (Adolph) Co. Cl B.................................. 1,554 81,585
Corning, Inc. ........................................... 10,338 1,332,956
Costco Wholesale Corp. .................................. 9,369 854,921
Countrywide Credit Industries, Inc. ..................... 4,779 120,670
Crane Co. ............................................... 2,783 55,312
Crown Cork & Seal, Inc. ................................. 5,147 115,164
CSX Corp. ............................................... 9,221 289,309
Cummins Engine Co., Inc. ................................ 1,769 85,465
CVS Corp. ............................................... 16,551 661,006
Dana Corp. .............................................. 6,948 208,006
Danaher Corp. ........................................... 6,012 290,079
Darden Restaurants, Inc. ................................ 5,550 100,594
Dayton-Hudson Corp. ..................................... 18,611 1,366,745
Deere & Co. ............................................. 9,870 428,111
Dell Computer Corp. ..................................... 107,313 5,472,963
Delphi Automotive Systems Corp. ......................... 23,863 375,842
Delta Air Lines, Inc. ................................... 5,612 279,548
Deluxe Corp. ............................................ 3,100 85,056
Dillard's Inc. Cl A...................................... 4,534 91,530
Disney (Walt) Co. ....................................... 87,102 2,547,734
Dollar General Corp. .................................... 11,234 255,574
Dominion Resources, Inc. ................................ 8,059 316,316
Donnelley (R.R.) & Sons Co. ............................. 5,340 132,499
Dover Corp. ............................................. 8,600 390,225
Dow Chemical Co. ........................................ 9,262 1,237,635
Dow Jones & Co., Inc. ................................... 3,779 256,972
DTE Energy Co. .......................................... 6,126 192,203
Du Pont (E.I.) de Nemours & Co. ......................... 44,115 2,906,084
Duke Energy Corp. ....................................... 15,444 774,131
Dun & Bradstreet Corp. .................................. 6,795 200,453
Eastern Enterprises...................................... 1,120 64,330
Eastman Chemical Co. .................................... 3,302 157,464
Eastman Kodak Co. ....................................... 13,329 883,046
Eaton Corp. ............................................. 3,108 225,719
Ecolab, Inc. ............................................ 5,473 214,131
Edison International..................................... 14,664 384,014
El Paso Energy Corp. .................................... 9,643 374,269
Electronic Data Systems Corp. ........................... 19,883 1,330,918
EMC Corp. ............................................... 42,974 4,694,916
Emerson Electric Co. .................................... 18,351 1,052,889
Engelhard Corp. ......................................... 5,315 100,321
Enron Corp. ............................................. 30,224 1,341,190
Entergy Corp. ........................................... 10,425 268,444
Equifax, Inc. ........................................... 5,973 140,739
Exxon Mobil Corp. ....................................... 145,859 11,750,766
Fannie Mae............................................... 43,290 2,702,919
FDX Corp. ............................................... 12,610 516,222
Federated Department Stores, Inc. ....................... 8,867 448,338
Fifth Third Bancorp...................................... 13,038 956,663
First Data Corp. ........................................ 17,699 872,782
First Union Corp. ....................................... 41,717 1,368,839
Firstar Corp. ........................................... 41,398 874,533
FirstEnergy Corp. ....................................... 9,842 223,290
FleetBoston Financial Corp. ............................. 38,668 1,346,130
Fleetwood Enterprises, Inc. ............................. 1,408 29,040
Florida Progress Corp. .................................. 4,146 175,428
Fluor Corp. ............................................. 3,191 146,387
FMC Corp. ............................................... 1,292 74,048
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Ford Motor Co. .......................................... 51,015 $ 2,726,114
Fort James Corp. ........................................ 9,138 250,153
Fortune Brands, Inc. .................................... 6,930 229,123
Foster Wheeler Corp. .................................... 1,720 15,265
FPL Group, Inc. ......................................... 7,570 324,091
Franklin Resources, Inc. ................................ 10,649 341,434
Freddie Mac.............................................. 29,361 1,381,802
Freeport-McMoran Copper &
Gold, Inc. Cl B......................................... 6,905 145,868
Gannett Co., Inc. ....................................... 11,774 960,317
Gap, Inc. ............................................... 36,162 1,663,452
Gateway, Inc. ........................................... 13,382 964,340
General Dynamics Corp. .................................. 8,511 448,955
General Electric Co. .................................... 138,571 21,443,862
General Instrument Corp. ................................ 7,350 624,750
General Mills, Inc. ..................................... 12,833 458,780
General Motors Corp. .................................... 27,039 1,965,397
Genuine Parts Co. ....................................... 7,510 186,342
Georgia-Pacific Group.................................... 7,222 366,517
Gillette Co. ............................................ 45,303 1,865,917
Global Crossing Ltd. .................................... 32,051 1,602,550
Golden West Financial Corp. ............................. 6,826 228,671
Goodrich (B.F.) Co. ..................................... 4,643 127,683
Goodyear Tire & Rubber Co. .............................. 6,603 186,122
GPU, Inc. ............................................... 5,213 156,064
Grainger (W.W.), Inc. ................................... 3,944 188,573
Great Atlantic & Pacific Tea, Inc. ...................... 1,618 45,102
Great Lakes Chemical Corp. .............................. 2,429 92,757
GTE Corp. ............................................... 41,043 2,896,097
Guidant Corp. ........................................... 12,981 610,107
Halliburton Holdings Co. ................................ 18,657 750,944
Harcourt General, Inc. .................................. 2,999 120,710
Harrah's Entertainment, Inc. ............................ 5,431 143,582
Hartford Financial Svs Gp, Inc. ......................... 9,360 443,430
Hasbro, Inc. ............................................ 8,184 156,008
HealthSouth Corp. ....................................... 16,313 87,682
Heinz (H.J.) Co. ........................................ 15,136 602,602
Helmerich & Payne, Inc. ................................. 2,081 45,392
Hercules, Inc. .......................................... 4,490 125,159
Hershey Food Corp. ...................................... 5,844 277,590
Hewlett-Packard Co. ..................................... 43,037 4,903,528
Hilton Hotels Corp. ..................................... 15,577 149,929
Home Depot, Inc. ........................................ 97,239 6,666,949
Homestake Mining Co. .................................... 10,992 85,875
Honeywell International, Inc. ........................... 33,433 1,928,666
Household International Corp. ........................... 19,856 739,636
Humana, Inc. ............................................ 7,075 57,927
Huntington Bancshares, Inc. ............................. 9,704 231,683
Ikon Office Solutions, Inc. ............................. 6,298 42,905
Illinois Tool Works, Inc. ............................... 12,691 857,436
IMS Health, Inc. ........................................ 13,005 353,573
Inco Ltd. ............................................... 8,107 190,515
Ingersoll Rand Co. ...................................... 6,909 380,427
Intel Corp. ............................................. 141,106 11,614,788
International Business Machines Corp. 76,132 8,222,256
International Flavors &
Fragrances, Inc. ....................................... 4,439 167,572
International Paper Co. ................................. 17,488 986,979
Interpublic Group of Cos., Inc. ......................... 11,853 683,770
ITT Industries, Inc. .................................... 3,713 124,153
Jefferson-Pilot Corp. ................................... 4,423 301,870
Johnson & Johnson........................................ 58,730 5,469,231
Johnson Controls, Inc. .................................. 3,604 204,978
Jostens, Inc. ........................................... 1,409 34,256
</TABLE>
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Kansas City Southern Inds. .............................. 4,668 $ 348,350
Kaufman & Broad Home Corp. .............................. 2,017 48,786
Kellogg Co. ............................................. 17,122 527,572
Kerr-McGee Corp. ........................................ 3,646 226,052
KeyCorp. ................................................ 18,892 417,986
Kimberly Clark Corp. .................................... 22,990 1,500,098
KLA Tencor Corp. ........................................ 3,799 423,114
Kmart Corp. ............................................. 20,851 209,813
Knight-Ridder, Inc. ..................................... 3,545 210,928
Kohl's Corp. ............................................ 6,882 496,794
Kroger Co. .............................................. 35,138 663,230
Legget & Platt, Inc. .................................... 8,290 177,717
Lehman Brothers Holdings, Inc. .......................... 5,069 429,281
Lexmark Intl Group Inc. Cl A............................. 5,394 488,157
Lilly (Eli) & Co. ....................................... 46,058 3,062,857
Limited, Inc. ........................................... 9,068 392,758
Lincoln National Corp. .................................. 8,256 330,240
Liz Claiborne, Inc. ..................................... 2,497 93,950
Lockheed Martin Corp. ................................... 16,723 365,816
Loews Corp. ............................................. 4,479 271,819
Longs Drug Stores Corp. ................................. 1,658 42,797
Louisiana-Pacific Corp. ................................. 4,496 64,068
Lowe's Companies, Inc. .................................. 16,139 964,305
LSI Logic Corp. ......................................... 6,297 425,048
Lucent Technologies, Inc. ............................... 132,325 9,899,564
Mallinckrodt, Inc. ...................................... 2,939 93,497
Manor Care, Inc. ........................................ 4,352 69,632
Marriott International, Inc. Cl A........................ 10,507 331,627
Marsh & McLennan Co., Inc. .............................. 11,281 1,079,451
Masco Corp. ............................................. 18,879 479,055
Mattel, Inc. ............................................ 17,771 233,244
May Department Stores Co. ............................... 14,112 455,112
Maytag Corp. ............................................ 3,566 171,168
MBIA, Inc. .............................................. 4,206 222,129
MBNA Corp. .............................................. 33,863 922,767
McDermott International, Inc. ........................... 2,506 22,711
McDonald's Corp. ........................................ 57,186 2,305,311
McGraw-Hill Cos., Inc. .................................. 8,282 510,378
MCI WorldCom, Inc. ...................................... 119,877 6,360,973
McKesson HBOC, Inc. ..................................... 11,893 268,336
Mead Corp. .............................................. 4,335 188,302
MediaOne Group, Inc. .................................... 25,847 1,985,373
Medtronic, Inc. ......................................... 50,482 1,839,438
Mellon Financial Corp. .................................. 21,483 731,765
Merck & Co., Inc. ....................................... 98,720 6,620,410
Meredith Corp. .......................................... 2,200 91,713
Merrill Lynch & Co., Inc. ............................... 15,655 1,307,193
MGIC Investment Corp. ................................... 4,465 268,737
Micron Technology, Inc. ................................. 11,397 886,117
Microsoft Corp. ......................................... 217,931 25,443,402
Milacron, Inc. .......................................... 1,559 23,970
Millipore Corp. ......................................... 1,900 73,388
Minnesota Mining & Mfg. Co. ............................. 16,950 1,658,981
Mirage Resorts, Inc. .................................... 8,160 124,950
Molex, Inc. ............................................. 6,620 375,271
Monsanto Co. ............................................ 26,802 954,821
Morgan (J.P.) & Co., Inc. ............................... 7,313 926,009
Morgan Stanley Dean Witter............................... 23,523 3,357,908
Motorola, Inc. .......................................... 25,725 3,788,006
Nabisco Group Holdings Corp. ............................ 13,775 146,359
NACCO Industries, Inc. Cl A.............................. 362 20,114
National City Corp. ..................................... 26,040 616,823
National Semiconductor Corp. ............................ 7,244 310,134
National Service Industries.............................. 1,720 50,740
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Navistar International Corp. ............................ 2,685 $ 127,202
Network Appliance, Inc. ................................. 6,307 523,875
New Century Energies, Inc. .............................. 4,880 148,230
New York Times Co. Cl A.................................. 7,233 355,321
Newell Rubbermaid, Inc. ................................. 11,912 345,448
Newmont Mining Corp. .................................... 7,079 173,436
Nextel Communications, Inc. Cl A......................... 15,349 1,582,866
Niagara Mohawk Holdings, Inc. ........................... 7,910 110,246
Nicor, Inc. ............................................. 1,991 64,708
Nike, Inc. Cl B.......................................... 11,827 586,176
Nordstrom, Inc. ......................................... 5,852 153,249
Norfolk Southern Corp. .................................. 16,076 329,558
Nortel Networks Corp. ................................... 56,409 5,697,309
Northern States Power Co. ............................... 6,538 127,491
Northern Trust Corp. .................................... 9,401 498,253
Northrop Grumman Corp. .................................. 2,931 158,457
Novell, Inc. ............................................ 14,067 561,801
Nucor Corp. ............................................. 3,697 202,642
Occidental Petroleum Corp. .............................. 15,524 335,707
Office Depot, Inc. ...................................... 13,903 152,064
Old Kent Financial Corp. ................................ 4,972 175,885
Omnicom Group, Inc. ..................................... 7,494 749,400
Oneok, Inc. ............................................. 1,336 33,567
Oracle Corp. ............................................ 60,128 6,738,094
Owens Corning............................................ 2,315 44,708
Owens-Illinois, Inc. .................................... 6,340 158,896
Paccar, Inc. ............................................ 3,298 146,143
Pactiv Corp. ............................................ 7,237 76,893
Paine Webber Group, Inc. ................................ 6,028 233,962
Pall Corp. .............................................. 5,253 113,268
Parametric Technology Corp. ............................. 11,372 307,755
Parker Hannifin Corp. ................................... 4,730 242,708
Paychex, Inc. ........................................... 10,415 416,600
PE Corp-PE Biosystems Group.............................. 4,358 524,322
Peco Energy Co. ......................................... 7,847 272,683
Penney (J.C.) Co., Inc. ................................. 10,991 219,133
Peoples Energy Corp. .................................... 1,498 50,183
Peoplesoft, Inc. ........................................ 10,392 221,480
Pep Boys-Manny, Moe & Jack............................... 2,221 20,267
PepsiCo, Inc. ........................................... 61,481 2,167,205
Perkin Elmer, Inc. ...................................... 1,936 80,707
Pfizer, Inc. ............................................ 163,501 5,303,564
PG & E Corp. ............................................ 16,217 332,449
Pharmacia & Upjohn, Inc. ................................ 21,899 985,455
Phelps Dodge Corp. ...................................... 3,421 229,605
Phillip Morris Cos., Inc. ............................... 99,933 2,317,196
Phillips Petroleum Co. .................................. 10,697 502,759
Pinnacle West Capital Corp. ............................. 3,579 109,383
Pitney Bowes, Inc. ...................................... 11,203 541,245
Placer Dome, Inc. ....................................... 13,752 147,834
PNC Bank Corp. .......................................... 12,417 552,557
Polaroid Corp. .......................................... 1,873 35,236
Potlatch Corp. .......................................... 1,222 54,532
PP&L Resources, Inc. .................................... 6,069 138,828
PPG Industries, Inc. .................................... 7,340 459,209
Praxair, Inc. ........................................... 6,713 337,748
Price (T. Rowe) Associates, Inc. ........................ 5,053 186,645
Proctor & Gamble Co. .................................... 55,503 6,081,047
Progressive Corp. of Ohio................................ 3,116 227,858
Providian Financial Corp. ............................... 5,996 546,011
Public Svc. Enterprise Group, Inc. ...................... 9,232 321,389
Pulte Corp. ............................................. 1,826 41,085
Quaker Oats Co. ......................................... 5,651 370,847
Qualcomm, Inc. .......................................... 27,868 4,911,735
</TABLE>
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Quintiles Transnational Corp. ........................... 4,855 $ 90,728
Ralston Purina Co. ...................................... 13,660 380,773
Raytheon Co. Cl B........................................ 14,293 379,658
Reebok International Ltd. ............................... 2,357 19,298
Regions Financial Corp. ................................. 9,235 232,029
Reliant Energy, Inc. .................................... 12,488 285,663
Republic New York Corp. ................................. 4,428 318,816
Reynolds Metals Co. ..................................... 2,655 203,439
Rite-Aid Corp. .......................................... 10,936 122,347
Rockwell Intl., Corp. ................................... 8,034 384,628
Rohm & Haas Co. ......................................... 9,244 376,115
Rowan Cos., Inc. ........................................ 3,517 76,275
Royal Dutch Petroleum Co. N.Y. .......................... 90,563 5,473,401
Russell Corp. ........................................... 1,408 23,584
Ryder System, Inc. ...................................... 2,712 66,275
Safeco Corp. ............................................ 5,491 136,589
Safeway, Inc. ........................................... 21,489 764,203
Sara Lee Corp. .......................................... 38,378 846,715
SBC Communications, Inc. ................................ 144,078 7,023,803
Schering-Plough Corp. ................................... 62,046 2,617,566
Schlumberger, Ltd. ...................................... 23,222 1,306,238
Scientific-Atlanta, Inc. ................................ 3,318 184,564
Scottish Power plc -- ADR................................ * 9
Seagate Technology....................................... 8,798 409,657
Seagram Ltd. ............................................ 18,309 822,761
Sealed Air Corp. New..................................... 3,527 182,743
Sears Roebuck & Co. ..................................... 15,963 485,874
Sempra Energy............................................ 10,151 176,374
Service Corp. International.............................. 11,490 79,712
Shared Medical Systems Corp. ............................ 1,128 57,458
Sherwin-Williams Co. .................................... 7,006 147,126
Sigma-Aldrich Corp. ..................................... 4,261 128,096
Silicon Graphics, Inc. .................................. 7,763 76,174
SLM Holding Corp. ....................................... 6,719 283,878
Snap-On, Inc. ........................................... 2,472 65,663
Solectron Corp. ......................................... 12,373 1,176,982
Southern Co. ............................................ 28,428 668,058
Southtrust Corp. ........................................ 7,087 267,977
Southwest Airlines Co. .................................. 21,305 344,875
Springs Industries, Inc. ................................ 755 30,153
Sprint Corp. (FON Group)................................. 36,805 2,477,437
Sprint Corp. (PCS Group)................................. 18,201 1,865,603
St. Jude Medical, Inc. .................................. 3,554 109,063
St. Paul Companies, Inc. ................................ 9,598 323,333
Stanley Works............................................ 3,799 114,445
Staples, Inc. ........................................... 19,616 407,032
State Street Corp. ...................................... 6,757 493,683
Summit Bancorp........................................... 7,381 226,043
Sun Microsystems, Inc. .................................. 65,975 5,108,939
Sunoco, Inc. ............................................ 3,811 89,559
Suntrust Banks, Inc. .................................... 13,514 929,932
Supervalu, Inc. ......................................... 5,896 117,920
Synovus Financial Corp. ................................. 11,817 234,863
Sysco Corp. ............................................. 13,911 550,354
Tandy Corp. ............................................. 8,165 401,616
Tektronix, Inc. ......................................... 1,978 76,895
Tellabs, Inc. ........................................... 16,990 1,090,546
Temple-Inland, Inc. ..................................... 2,347 154,755
Tenet Healthcare Corp. .................................. 13,151 309,049
Teradyne, Inc. .......................................... 7,222 476,652
Texaco, Inc. ............................................ 23,358 1,268,631
Texas Instruments, Inc. ................................. 33,872 3,281,350
</TABLE>
- -------
* Fractional share attributable to Corporate Action.
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Texas Utilities Co. ..................................... 11,674 $ 415,157
Textron, Inc. ........................................... 6,282 481,751
Thermo Electron Corp. ................................... 6,683 100,245
Thomas & Betts Corp. .................................... 2,442 77,839
Time Warner, Inc. ....................................... 54,336 3,935,964
Times Mirror Co. ........................................ 2,551 170,917
Timken Co. .............................................. 2,615 53,444
TJX Companies, Inc. ..................................... 13,096 267,650
Torchmark Corp. ......................................... 5,555 161,442
Tosco Corp. ............................................. 6,079 165,273
Toys R Us, Inc. ......................................... 10,338 147,963
Transocean Sedco Forex, Inc. ............................ 4,496 151,452
Tribune Co. ............................................. 10,036 552,607
Tricon Global Restaurants, Inc. ......................... 6,484 250,445
TRW, Inc. ............................................... 5,136 266,751
Tupperware Corp. ........................................ 2,433 41,209
Tyco International Ltd. ................................. 71,322 2,772,643
U.S. Bancorp............................................. 30,732 731,806
U.S. West, Inc. ......................................... 21,341 1,536,552
Unicom Corp. ............................................ 9,187 307,765
Unilever N.V. ........................................... 24,140 1,314,121
Union Carbide Corp. ..................................... 5,653 377,338
Union Pacific Corp. ..................................... 10,498 457,975
Union Pacific Resources Group, Inc. ..................... 10,645 135,724
Union Planters Corp. .................................... 5,956 234,890
Unisys Corp. ............................................ 13,073 417,519
United Healthcare Corp. ................................. 7,169 380,853
United Technologies Corp. ............................... 20,219 1,314,235
Unocal Corp. ............................................ 10,238 343,613
UNUMProvident Corp. ..................................... 10,137 325,018
US Airways Group Inc. ................................... 3,022 96,893
UST, Inc. ............................................... 7,226 182,005
USX-Marathon Group....................................... 13,123 323,974
USX-U.S. Steel Group..................................... 3,729 123,057
V F Corp. ............................................... 4,989 149,670
Viacom, Inc. Cl B........................................ 29,437 1,779,099
Vulcan Materials Co. .................................... 4,226 168,776
W.R. Grace & Co. ........................................ 3,004 41,681
Wachovia Corp. .......................................... 8,563 582,284
Wal-Mart Stores, Inc. ................................... 187,949 12,991,975
Walgreen Co. ............................................ 42,382 1,239,674
Warner-Lambert Co. ...................................... 36,265 2,971,463
Washington Mutual, Inc. ................................. 24,382 633,932
Waste Management, Inc. .................................. 26,170 449,797
Watson Pharmaceuticals, Inc. ............................ 4,045 144,862
Wellpoint Health Networks Inc. .......................... 2,688 177,240
Wells Fargo & Company.................................... 69,362 2,804,826
Wendy's International, Inc. ............................. 5,050 104,156
Westvaco Corp. .......................................... 4,236 138,200
Weyerhaeuser Co. ........................................ 9,919 712,308
Whirlpool Corp. ......................................... 3,143 204,491
Willamette Industries, Inc. ............................. 4,712 218,814
Williams Cos., Inc. ..................................... 18,361 561,158
Winn-Dixie Stores, Inc. ................................. 6,277 150,256
Worthington Industries, Inc. ............................ 3,764 62,341
Wrigley (Wm.) Jr. Co. ................................... 4,889 405,481
Xerox Corp. ............................................. 28,055 636,498
Xilinx, Inc. ............................................ 13,506 614,102
Yahoo!, Inc. ............................................ 11,118 4,810,620
------------
Total Indexed Assets--Common Stocks
(Cost: $214,258,334) 58.7%....................................... 520,124,650
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
INDEXED ASSETS (Continued):
Short-Term Debt Securities:
U.S. Government (0.1%)
U.S. Treasury Bill (a)................. 5.15% 01/13/00 $1,000,000 $ 998,275
------------
Commercial Paper (0.1%)
UBS Finance (Delw.) Inc. .............. 4.00 01/03/00 560,000 559,876
------------
Total Short-Term Debt Securities
(Cost: $1,558,151) 0.2%......................................... 1,558,151
------------
Total Indexed Assets
(Cost: $215,816,485) 58.9%...................................... $521,682,801
------------
</TABLE>
- --------------
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1999:
<TABLE>
<CAPTION>
Expiration Underlying Face Unrealized
Date Amount at Value Gain
---------- --------------- ----------
<S> <C> <C> <C>
Purchased
4 S&P 500 Stock Index
Futures Contracts...... March 2000 $1,484,200 $41,713
========== =======
</TABLE>
The face value of futures purchased and outstanding as percentage of total
investment in securities: 0.2%.
- -------
(a) This security has been segregated to cover initial margin requirements on
open contracts.
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
ACTIVE ASSETS:
COMMON STOCKS
Basic Materials (0.8%)
Cabot Corp. ............................................. 50,100 $ 1,020,787
Lone Star Technologies, Inc.*............................ 82,600 2,302,475
Newmont Mining Corp. .................................... 38,500 943,250
Placer Dome, Inc. ....................................... 70,000 752,500
Praxair, Inc. ........................................... 38,800 1,952,125
------------
6,971,137
------------
Consumer, Cyclical (4.9%)
eBay, Inc.*.............................................. 12,261 1,534,924
Abercrombie & Fitch Co. Cl A*............................ 35,151 938,092
Bed Bath & Beyond, Inc.*................................. 65,477 2,275,326
BJ Services Co *......................................... 23,065 964,405
BJ's Wholesale Club, Inc.*............................... 92,990 3,394,135
CNET, Inc.*.............................................. 27,208 1,544,054
Cox Radio, Inc.*......................................... 16,092 1,605,177
Dayton-Hudson Corp. ..................................... 31,200 2,291,250
Diedrich Coffee, Inc.*................................... 212,900 864,906
Ethan Allen Interiors, Inc. ............................. 45,521 1,459,517
Ford Motor Co. .......................................... 18,000 961,875
Furniture Brands Intl., Inc.*............................ 12,150 267,300
Gannett Co., Inc. ....................................... 34,100 2,781,281
Linens'n Things, Inc.*................................... 52,028 1,541,330
Mandalay Resort Group.................................... 91,000 1,831,375
Masco Corp. ............................................. 89,000 2,258,375
Meredith Corp. .......................................... 28,800 1,200,600
Nordstrom, Inc. ......................................... 51,900 1,359,131
Outback Steakhouse, Inc.*................................ 55,894 1,449,751
Skywest, Inc. ........................................... 17,462 488,936
Telewest Communications plc--ADR* 39,272 2,169,778
The Cheesecake Factory, Inc.*............................ 33,800 1,183,000
The Men's Wearhouse, Inc.*............................... 32,600 957,625
Tiffany & Co. ........................................... 35,808 3,195,864
TJX Companies............................................ 21,900 447,581
True North Communications, Inc. ......................... 23,000 1,027,813
Young & Rubicam, Inc. ................................... 43,605 3,085,054
------------
43,078,455
------------
Consumer, Non-Cyclical (2.8%)
Albertson's, Inc. ....................................... 50,300 1,622,175
American Home Products Corp. ............................ 18,600 733,538
Baxter International, Inc. .............................. 18,000 1,130,625
Bestfoods................................................ 29,800 1,566,362
Cardinal Health, Inc. ................................... 27,900 1,335,712
Cygnus, Inc.*............................................ 50,000 912,500
Diageo plc -- Sponsored ADR.............................. 26,000 832,000
Dura Pharmaceuticals, Inc.*.............................. 68,900 960,294
Enzon, Inc.*............................................. 26,200 1,136,425
Forest Laboratories, Inc.*............................... 44,172 2,713,817
Fort James Corp. ........................................ 56,000 1,533,000
IDEC Pharmaceuticals Corp.*.............................. 7,288 716,046
Lilly (Eli) & Co. ....................................... 17,500 1,163,750
Medimmune, Inc.*......................................... 14,206 2,356,420
Medquist, Inc.*.......................................... 14,858 383,522
Minimed, Inc.*........................................... 29,200 2,138,900
SangStat Medical Corp.*.................................. 36,300 1,079,925
Sepracor, Inc.*.......................................... 9,041 896,754
US Foodservice*.......................................... 55,000 921,250
Williams-Sonoma, Inc.*................................... 15,544 715,024
------------
24,848,039
------------
Energy (2.1%)
BP Amoco Corp. .......................................... 43,668 2,590,058
Calpine Corp.*........................................... 50,484 3,230,976
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
ACTIVE ASSETS (Continued):
Energy (Continued)
Exxon Mobil Corp. ....................................... 24,290 $ 1,956,863
Midcoast Energy Res., Inc. .............................. 14,000 234,500
Nabors Industries, Inc.*................................. 50,100 1,549,969
Quanta Services, Inc.*................................... 40,100 1,132,825
Schlumberger, Ltd. ...................................... 38,600 2,171,250
Total Fina S.A........................................... 24,985 1,730,211
Transocean Sedco Forex, Inc. ............................ 7,473 251,745
USX-Marathon Group....................................... 67,700 1,671,344
Varco International, Inc.*............................... 70,710 720,358
Weatherford International, Inc.*......................... 30,100 1,202,119
------------
18,442,218
------------
Financial (4.8%)
American General Corp. .................................. 13,400 1,016,725
American Int'l. Group, Inc. ............................. 37,100 4,011,437
Arden Realty Group....................................... 66,400 1,332,150
Bank of America Corp. ................................... 57,063 2,863,849
Boston Properties, Inc. ................................. 30,100 936,863
Citigroup, Inc. ......................................... 141,150 7,842,647
Compass Bancshares Inc. ................................. 33,800 754,163
Cullen/Frost Bankers, Inc. .............................. 32,600 839,450
Equity Res. Pptys. Tr. Co. .............................. 32,600 1,391,613
Fannie Mae............................................... 28,000 1,748,250
FleetBoston Financial Corp. ............................. 45,200 1,573,525
HCC Insurance Holdings, Inc. ............................ 63,900 842,681
Heller Financial, Inc. .................................. 65,100 1,306,069
Kimco Realty Corp. ...................................... 33,800 1,144,975
Mack-Cali Realty Corp. .................................. 46,300 1,206,694
Morgan Stanley Dean Witter............................... 23,300 3,326,075
Natl. Commerce Bancorp................................... 33,011 748,937
Providian Financial Corp. ............................... 21,700 1,976,056
SL Green Realty Corp. ................................... 76,400 1,661,700
Spieker Pptys., Inc. .................................... 40,100 1,461,144
Vornado Rlty. Trust...................................... 40,100 1,303,250
Washington Mutual, Inc. ................................. 57,329 1,490,554
Wells Fargo & Company.................................... 36,700 1,484,056
------------
42,262,863
------------
Industrial (5.9%)
Applied Materials, Inc.*................................. 68,700 8,703,431
Asyst Technologies, Inc.*................................ 20,000 1,311,250
BISYS Group, Inc.*....................................... 28,600 1,866,150
Caterpillar, Inc. ....................................... 25,800 1,214,212
Citadel Communications, Corp.*........................... 22,652 1,469,548
Coinstar, Inc.*.......................................... 41,657 583,198
CommScope, Inc.*......................................... 23,500 947,344
Computer Sciences Corp.*................................. 21,000 1,987,125
Conexant Systems, Inc.*.................................. 43,326 2,875,763
Covenant Transport, Inc. Cl A*........................... 57,600 1,000,800
CSG Systems Intl., Inc.*................................. 23,800 949,025
Dycom Industries, Inc.*.................................. 27,000 1,189,687
Emerson Electric Co. .................................... 17,800 1,021,275
EOG Resources, Inc. ..................................... 35,268 619,394
FactSet Research Systems, Inc. .......................... 23,624 1,881,061
Forward Air Corporation*................................. 66,099 2,867,044
Honeywell International, Inc. ........................... 23,300 1,344,119
Hooper Holmes, Inc. ..................................... 102,333 2,635,075
Kent Electronics Corp.*.................................. 31,800 723,450
Kulicke and Soffa Industries, Inc.*...................... 27,000 1,149,188
Mettler-Toledo International, Inc.*...................... 27,270 1,041,373
Official Payments Corp.*................................. 16,000 832,000
Pittway Corp. ........................................... 11,399 510,818
PRI Automation, Inc.*.................................... 25,263 1,695,779
Radio One, Inc.*......................................... 16,000 1,472,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
ACTIVE ASSETS (Continued):
Industrial (Continued)
Salem Communications Corp. Cl A*......................... 21,725 $ 491,528
SDL, Inc.*............................................... 9,250 2,016,500
Semtech Corp.*........................................... 52,600 2,741,775
Spartech Corp. .......................................... 43,000 1,386,750
Swift Transportation Co., Inc.*.......................... 56,300 992,288
U.S. Xpress Enterprises, Inc. Cl A*...................... 57,600 424,800
Williams Cos., Inc. ..................................... 61,000 1,864,312
------------
51,808,062
------------
Technology (16.2%)
3Com Corp*............................................... 72,600 3,412,200
Altera Corp.*............................................ 45,342 2,247,263
ANTEC Corp.*............................................. 34,673 1,265,564
Applied Micro Circuits, Corp.*........................... 39,824 5,067,604
ASM Lithography Holding NV*.............................. 24,776 2,818,270
AT&T Corp. .............................................. 37,000 1,877,750
Atmel Corp.*............................................. 152,400 4,505,325
ATMI, Inc.*.............................................. 34,052 1,125,844
Aware, Inc.*............................................. 16,398 596,477
Broadcom Corp.*.......................................... 5,959 1,623,083
Business Objects S.A.-Sp ADR*............................ 9,000 1,202,625
Ciena Corp.*............................................. 55,000 3,162,500
Cisco Systems, Inc.*..................................... 289,500 31,012,687
Compaq Computer Corp. ................................... 181,500 4,911,844
Critical Path, Inc.*..................................... 25,100 2,368,812
Dallas Semiconductor Corp. .............................. 14,313 922,294
Digital Island, Inc.*.................................... 14,000 1,331,750
Dionex Corp*............................................. 33,800 1,392,137
Documentum, Inc.*........................................ 12,400 742,450
E-Speed, Inc. Cl A*...................................... 35,000 1,244,687
Efficient Networks, Inc.*................................ 21,400 1,455,200
Emulex Corp.*............................................ 18,000 2,025,000
Exodus Communications, Inc.*............................. 20,028 1,778,737
Hewlett-Packard Co. ..................................... 12,900 1,469,794
Intel Corp. ............................................. 106,000 8,725,125
Intl. Business Machines Corp. ........................... 19,600 2,116,800
Intuit, Inc.*............................................ 83,379 4,997,529
JDA Software Group, Inc.*................................ 85,000 1,391,875
Lattice Semiconductor Corp.*............................. 24,278 1,144,101
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
ACTIVE ASSETS (Continued):
Technology (Continued)
Legato Systems, Inc.*.................................... 45,100 $ 3,103,444
Linear Technology Corp. ................................. 106,315 7,608,167
Manugistics Group, Inc.*................................. 37,000 1,195,563
Maxim Integrated Products, Inc*.......................... 162,400 7,663,250
McLeod USA, Inc. Cl A*................................... 28,957 1,704,843
Microchip Technology, Inc.*.............................. 35,281 2,414,543
Microsoft Corp.*......................................... 18,800 2,194,900
Networks Associates, Inc*................................ 58,900 1,571,894
Novellus Systems, Inc.*.................................. 15,000 1,837,970
Parametric Technology Corp.*............................. 118,000 3,193,375
Protein Design Labs, Inc.*............................... 11,015 771,050
Sawtek, Inc.*............................................ 19,000 1,264,687
Varian Semiconductor Equipment Associates, Inc.*......... 35,000 1,190,000
Vignette Corporation*.................................... 9,466 1,542,958
Vitesse Semiconductor Corp.*............................. 19,173 1,005,384
Waters Corp.*............................................ 22,177 1,175,381
Xerox Corp............................................... 62,000 1,406,625
Xilinx, Inc.*............................................ 108,000 4,910,630
------------
143,689,991
------------
Utilities (2.0%)
El Paso Energy Corp. .................................... 34,000 1,319,625
GTE Corp. ............................................... 28,000 1,975,750
Illinova Corp. .......................................... 40,100 1,393,475
ITC DeltaCom, Inc.*...................................... 56,418 1,558,547
Kinder Morgan, Inc. ..................................... 60,000 1,211,250
MCI WorldCom, Inc.*...................................... 29,162 1,547,382
MDU Resources Group...................................... 48,800 976,000
Montana Pwr. Co. ........................................ 38,800 1,399,225
NSTAR.................................................... 27,615 1,118,407
SBC Communications, Inc. ................................ 27,400 1,335,750
SIGCORP, Inc. ........................................... 38,800 882,700
Time Warner Telecom, Inc. Cl A*.......................... 31,000 1,548,062
Western Wireless Corp. Cl A*............................. 33,800 2,256,150
------------
18,522,323
------------
Total Active Assets--Common Stocks
(Cost: $223,407,634) 39.5%....................................... 349,623,088
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
ACTIVE ASSETS (Continued):
Short-Term Debt Securities:
U.S. Government (0.2%)
U.S. Treasury Bill.................... 5.17% 01/13/00 $1,800,000 $ 1,796,888
U.S. Treasury Bill.................... 5.17 01/13/00 100,000 99,827
------------
1,896,715
------------
Commercial Paper (1.4%)
Abbott Laboratories................... 6.25 01/13/00 1,164,000 1,161,570
AES Barbers Pt., Inc.................. 6.60 01/12/00 1,000,000 997,981
Countrywide Credit Industries, Inc.... 5.25 01/07/00 700,000 699,387
Exxon Asset Management Corp. ......... 6.47 01/06/00 3,000,000 2,997,302
General Electric Capital Corp. ....... 6.52 01/12/00 4,580,000 4,570,861
Merrill Lynch & Co., Inc.............. 5.55 01/27/00 1,000,000 995,990
Toronto Dominion Hldgs, Inc........... 5.94 01/27/00 700,000 696,995
UBS Finance (Delw.) Inc............... 4.00 01/03/00 110,000 109,976
------------
12,230,062
------------
Total Active Assets--Short-Term Debt
Securities
(Cost: $14,126,777) 1.6%....................................... 14,126,777
------------
Total Active Assets
(Cost: $237,534,411) 41.1%..................................... 363,749,865
------------
Total Investments
(Cost: $453,350,896) 100.0%.................................... $885,432,666
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS
Common Stocks
3Com Corp. .............................................. 16,269 $ 764,643
Abbott Laboratories...................................... 72,488 2,632,221
Adaptec, Inc. ........................................... 4,815 240,148
ADC Telecommunications, Inc. ............................ 7,054 511,856
Adobe Systems, Inc. ..................................... 5,668 381,173
Advanced Micro Devices, Inc. ............................ 6,941 200,855
AES Corp. ............................................... 9,731 727,392
Aetna, Inc. ............................................. 7,057 393,869
Aflac, Inc. ............................................. 12,548 592,109
Air Products & Chemicals, Inc. .......................... 10,812 362,878
Alberto-Culver Co. Cl B.................................. 2,656 68,558
Albertson's, Inc. ....................................... 19,971 644,065
Alcan Aluminum Ltd. ..................................... 10,333 425,590
ALCOA, Inc. ............................................. 17,277 1,433,991
Allegheny Technologies, Inc. ............................ 4,411 98,972
Allergan, Inc. .......................................... 6,200 308,450
Allied Waste Industries, Inc. ........................... 8,905 78,475
Allstate Corp. .......................................... 37,976 911,424
Alltel Corp. ............................................ 14,803 1,224,023
Alza Corp. .............................................. 4,837 167,481
Amerada Hess Corp ....................................... 4,276 242,663
Ameren Corp. ............................................ 6,470 211,893
America Online, Inc. .................................... 105,408 7,951,716
American Electric Power, Inc. ........................... 9,152 294,008
American Express Co. .................................... 21,109 3,509,371
American General Corp. .................................. 11,652 884,096
American Greetings Corp. Cl A............................ 3,042 71,867
American Home Products Corp. ............................ 61,568 2,428,088
American Int'l. Group, Inc. ............................. 73,003 7,893,449
Amgen, Inc. ............................................. 48,167 2,893,030
AMR Corp, ............................................... 6,982 467,794
Amsouth Bancorporation................................... 18,441 356,142
Anadarko Petroleum Corp. ................................ 6,013 205,194
Analog Devices, Inc. .................................... 8,245 766,785
Andrew Corp. ............................................ 3,869 73,269
Anheuser-Busch Cos., Inc. ............................... 21,939 1,554,927
Aon Corp. ............................................... 12,101 484,040
Apache Corp. ............................................ 5,379 198,687
Apple Computer, Inc. .................................... 7,586 779,936
Applied Materials, Inc. ................................. 17,843 2,260,485
Archer-Daniels-Midland Co. .............................. 28,686 349,611
Armstrong World Inds., Inc. ............................. 1,907 63,646
Ashland, Inc. ........................................... 3,403 112,086
Associates First Capital Corp. Cl A...................... 34,338 942,149
AT&T Corp. .............................................. 150,668 7,646,401
Atlantic Richfield Co. .................................. 15,218 1,316,357
Autodesk, Inc. .......................................... 2,876 97,065
Automatic Data Processing, Inc. ......................... 29,475 1,587,966
AutoZone, Inc. .......................................... 6,807 219,951
Avery Dennison Corp. .................................... 5,313 387,185
Avon Products, Inc. ..................................... 11,425 377,025
Baker Hughes, Inc. ...................................... 15,523 326,953
Ball Corp. .............................................. 1,448 57,015
Bank of America Corp. ................................... 80,498 4,039,993
Bank of New York, Inc. .................................. 34,723 1,388,920
Bank One Corp. .......................................... 54,078 1,733,876
Bard (C.R.), Inc. ....................................... 2,439 129,267
Barrick Gold Corp. ...................................... 18,565 328,368
Bausch & Lomb, Inc. ..................................... 2,734 187,108
Baxter International, Inc. .............................. 13,718 861,662
BB & T Corp. ............................................ 15,606 427,214
Bear Stearns Cos., Inc. ................................. 5,619 240,212
Becton Dickinson & Co. .................................. 11,803 315,730
Bed Bath & Beyond, Inc. ................................. 6,594 229,142
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Bell Atlantic Corp. ..................................... 73,217 $ 4,507,422
BellSouth Corp. ......................................... 88,756 4,154,890
Bemis, Inc. ............................................. 2,490 86,839
Best Buy, Inc. .......................................... 9,702 486,919
Bestfoods................................................ 13,152 691,302
Bethlehem Steel Corp. ................................... 6,184 51,791
Biomet, Inc. ............................................ 5,320 212,800
Black & Decker Corp. .................................... 4,096 214,016
Block (H. & R.), Inc. ................................... 4,615 201,906
BMC Software, Inc. ...................................... 11,427 913,446
Boeing Co. .............................................. 44,066 1,831,493
Boise Cascade Corp. ..................................... 2,717 110,039
Boston Scientific Corp. ................................. 19,554 427,744
Briggs & Stratton Corp. ................................. 1,109 59,470
Bristol-Myers Squibb Co. ................................ 93,536 6,003,842
Brown-Forman Corp. Cl B.................................. 3,230 184,918
Brunswick Corp. ......................................... 4,330 96,343
Burlington Northern Santa Fe Corp. ...................... 21,546 522,491
Burlington Resources, Inc. .............................. 10,255 339,056
Cabletron Systems, Inc. ................................. 8,514 221,364
Campbell Soup Co. ....................................... 20,173 780,443
Capital One Financial Corp. ............................. 9,297 447,999
Cardinal Health, Inc. ................................... 13,214 632,620
Carnival Corp. .......................................... 29,089 1,390,818
Carolina Power & Light Co. .............................. 7,525 229,042
Caterpillar, Inc. ....................................... 16,765 789,003
CBS Corp. ............................................... 35,949 2,298,489
Cendant Corp. ........................................... 33,526 890,534
Centex Corp. ............................................ 2,795 69,002
Central & South West Corp. .............................. 10,027 200,540
CenturyTel, Inc. ........................................ 6,586 312,012
Ceridian Corp. .......................................... 6,820 147,056
Champion International Corp. ............................ 4,536 280,949
Charles Schwab Corp. .................................... 38,663 1,483,693
Chase Manhattan Corp. ................................... 38,890 3,021,267
Chevron Corp. ........................................... 30,944 2,680,524
Chubb Corp. ............................................. 8,296 467,169
CIGNA Corp. ............................................. 8,768 706,372
Cincinnati Financial Corp. .............................. 7,738 241,329
CINergy Corp. ........................................... 7,493 180,769
Circuit City Group, Inc. ................................ 9,565 431,023
Cisco Systems, Inc. ..................................... 154,235 16,522,424
Citigroup, Inc. ......................................... 158,982 8,833,438
Citrix Systems, Inc. .................................... 4,225 519,675
Clear Channel Communications, Inc. ...................... 15,961 1,424,519
Clorox Co. .............................................. 11,147 561,530
CMS Energy Corp. ........................................ 5,460 170,284
Coastal Corp. ........................................... 10,072 356,927
Coca-Cola Co. ........................................... 116,465 6,784,086
Coca-Cola Enterprises, Inc. ............................. 20,062 403,748
Colgate-Palmolive Co. ................................... 27,470 1,785,550
Columbia Energy Group.................................... 3,832 242,374
Columbia/HCA Healthcare Corp. ........................... 26,560 778,540
Comcast Corp. Cl A....................................... 35,444 1,792,137
Comerica, Inc. .......................................... 7,374 344,274
Compaq Computer Corp. ................................... 80,159 2,169,303
Computer Associates Intl., Inc. ......................... 25,416 1,777,532
Computer Sciences Corp. ................................. 7,850 742,806
Compuware Corp. ......................................... 16,873 628,519
Comverse Technology Inc. ................................ 3,335 482,741
Conagra, Inc. ........................................... 23,211 523,698
Conoco, Inc. ............................................ 29,529 734,534
Conseco, Inc. ........................................... 15,424 275,704
Consolidated Edison, Inc. ............................... 10,422 359,559
</TABLE>
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Consolidated Natural Gas Co. ............................ 4,523 $ 293,712
Consolidated Stores Corp. ............................... 5,243 85,199
Constellation Energy Group, Inc. ........................ 7,052 204,508
Cooper Industries, Inc. ................................. 4,440 179,543
Cooper Tire & Rubber Co. ................................ 3,576 55,652
Coors (Adolph) Co. Cl B.................................. 1,752 91,980
Corning, Inc. ........................................... 11,542 1,488,197
Costco Wholesale Corp. .................................. 10,460 954,475
Countrywide Credit Industries, Inc. ..................... 5,336 134,734
Crane Co. ............................................... 3,107 61,752
Crown Cork & Seal, Inc. ................................. 5,746 128,567
CSX Corp. ............................................... 10,295 323,006
Cummins Engine Co., Inc. ................................ 1,952 94,306
CVS Corp. ............................................... 18,478 737,965
Dana Corp. .............................................. 7,757 232,225
Danaher Corp. ........................................... 6,712 323,854
Darden Restaurants, Inc. ................................ 6,197 112,321
Dayton-Hudson Corp. ..................................... 20,778 1,525,884
Deere & Co. ............................................. 11,019 477,949
Dell Computer Corp. ..................................... 119,808 6,110,208
Delphi Automotive Systems Corp. ......................... 26,641 419,596
Delta Air Lines, Inc. ................................... 6,265 312,075
Deluxe Corp. ............................................ 3,461 94,961
Dillard's Inc. Cl A...................................... 5,090 102,754
Disney (Walt) Co. ....................................... 97,243 2,844,358
Dollar General Corp. .................................... 12,542 285,331
Dominion Resources, Inc. ................................ 8,997 353,132
Donnelley (R.R.) & Sons Co. ............................. 5,962 147,932
Dover Corp. ............................................. 9,602 435,691
Dow Chemical Co. ........................................ 10,340 1,381,683
Dow Jones & Co., Inc. ................................... 4,219 286,892
DTE Energy Co. .......................................... 6,839 214,574
Du Pont (E.I.) de Nemours & Co. ......................... 49,253 3,244,525
Duke Energy Corp. ....................................... 17,243 864,305
Dun & Bradstreet Corp. .................................. 7,586 223,787
Eastern Enterprises...................................... 1,278 73,405
Eastman Chemical Co. .................................... 3,689 175,919
Eastman Kodak Co. ....................................... 14,881 985,866
Eaton Corp. ............................................. 3,470 252,009
Ecolab, Inc. ............................................ 6,110 239,054
Edison International..................................... 16,372 428,742
El Paso Energy Corp. .................................... 10,766 417,855
Electronic Data Systems Corp. ........................... 22,198 1,485,879
EMC Corp. ............................................... 47,979 5,241,699
Emerson Electric Co. .................................... 20,488 1,175,499
Engelhard Corp. ......................................... 5,934 112,004
Enron Corp. ............................................. 33,743 1,497,346
Entergy Corp. ........................................... 11,639 299,704
Equifax, Inc. ........................................... 6,669 157,138
Exxon Mobil Corp. ....................................... 162,843 13,119,039
Fannie Mae............................................... 48,331 3,017,667
FDX Corp. ............................................... 14,078 576,318
Federated Department Stores, Inc. ....................... 9,899 500,518
Fifth Third Bancorp...................................... 14,556 1,068,047
First Data Corp. ........................................ 19,760 974,415
First Union Corp. ....................................... 46,574 1,528,209
Firstar Corp. ........................................... 46,219 976,372
FirstEnergy Corp. ....................................... 10,988 249,290
FleetBoston Financial Corp. ............................. 43,171 1,502,891
Fleetwood Enterprises, Inc. ............................. 1,540 31,763
Florida Progress Corp. .................................. 4,630 195,907
Fluor Corp. ............................................. 3,609 165,563
FMC Corp. ............................................... 1,442 82,645
Ford Motor Co. .......................................... 56,954 3,043,479
Fort James Corp. ........................................ 10,202 279,280
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Fortune Brands, Inc. .................................... 7,737 $ 255,805
Foster Wheeler Corp. .................................... 1,939 17,209
FPL Group, Inc. ......................................... 8,452 361,851
Franklin Resources, Inc. ................................ 11,889 381,191
Freddie Mac.............................................. 32,779 1,542,662
Freeport-McMoran Copper & Gold, Inc. Cl B................ 7,709 162,853
Gannett Co., Inc. ....................................... 13,145 1,072,139
Gap, Inc. ............................................... 40,372 1,857,112
Gateway, Inc. ........................................... 14,911 1,074,524
General Dynamics Corp. .................................. 9,484 500,281
General Electric Co ..................................... 154,706 23,940,754
General Instrument Corp ................................. 8,206 697,510
General Mills, Inc. ..................................... 14,327 512,190
General Motors Corp. .................................... 30,187 2,194,218
Genuine Parts Co. ....................................... 8,384 208,028
Georgia-Pacific Group.................................... 8,062 409,147
Gillette Co. ............................................ 50,578 2,083,181
Global Crossing Ltd. .................................... 35,783 1,789,150
Golden West Financial Corp. ............................. 7,620 255,270
Goodrich (B.F.) Co. ..................................... 5,194 142,835
Goodyear Tire & Rubber Co. .............................. 7,371 207,770
GPU, Inc. ............................................... 5,820 174,236
Grainger (W.W.), Inc. ................................... 4,403 210,518
Great Atlantic & Pac. Tea, Inc. ......................... 1,825 50,872
Great Lakes Chemical Corp. .............................. 2,712 103,565
GTE Corp. ............................................... 45,822 3,233,315
Guidant Corp. ........................................... 14,493 681,171
Halliburton Holdings Co. ................................ 20,830 838,408
Harcourt General, Inc. .................................. 3,355 135,039
Harrah's Entertainment, Inc. ............................ 6,063 160,291
Hartford Financial Svs Gp, Inc .......................... 10,450 495,069
Hasbro, Inc. ............................................ 9,136 174,155
HealthSouth Corp. ....................................... 18,213 97,895
Heinz (H.J.) Co. ........................................ 16,898 672,752
Helmerich & Payne, Inc. ................................. 2,356 51,390
Hercules, Inc. .......................................... 5,013 139,737
Hershey Food Corp. ...................................... 6,525 309,938
Hewlett-Packard Co. ..................................... 48,048 5,474,469
Hilton Hotels Corp. ..................................... 17,391 167,388
Home Depot, Inc. ........................................ 108,561 7,443,214
Homestake Mining Co. .................................... 12,272 95,875
Honeywell International, Inc. ........................... 37,326 2,153,244
Household International Corp. ........................... 22,168 825,758
Humana, Inc. ............................................ 7,899 64,673
Huntington Bancshares, Inc. ............................. 10,834 258,662
Ikon Office Solutions, Inc. ............................. 7,032 47,906
Illinois Tool Works, Inc. ............................... 14,168 957,226
IMS Health, Inc. ........................................ 14,519 394,735
Inco Ltd. ............................................... 9,051 212,699
Ingersoll Rand Co. ...................................... 7,713 424,697
Intel Corp. ............................................. 157,536 12,967,182
International. Business Machines Corp. 84,997 9,179,676
International. Flavors & Fragrances, Inc. ............... 4,956 187,089
International Paper Co. ................................. 19,525 1,101,942
Interpublic Group of Cos., Inc. ......................... 13,233 763,379
ITT Industries, Inc. .................................... 4,145 138,598
Jefferson-Pilot Corp. ................................... 4,938 337,019
Johnson & Johnson........................................ 65,568 6,106,020
Johnson Controls, Inc. .................................. 4,023 228,808
Jostens, Inc. ........................................... 1,573 38,244
Kansas City Southern Inds. .............................. 5,211 388,871
Kaufman & Broad Home Corp. .............................. 2,249 54,398
Kellogg Co. ............................................. 19,116 589,012
</TABLE>
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Kerr-McGee Corp. ........................................ 4,077 $ 252,774
KeyCorp ................................................. 21,091 466,638
Kimberly Clark Corp. .................................... 25,667 1,674,772
KLA Tencor Corp. ........................................ 4,241 472,341
Kmart Corp. ............................................. 23,279 234,245
Knight-Ridder, Inc. ..................................... 3,958 235,501
Kohl's Corp. ............................................ 7,683 554,617
Kroger Co. .............................................. 39,230 740,466
Legget & Platt, Inc. .................................... 9,255 198,404
Lehman Brothers Holdings, Inc. .......................... 5,659 479,247
Lexmark Intl Group Inc. Cl A............................. 6,023 545,082
Lilly (Eli) & Co. ....................................... 51,421 3,419,497
Limited, Inc. ........................................... 10,124 438,496
Lincoln National Corp. .................................. 9,217 368,680
Liz Claiborne, Inc. ..................................... 2,787 104,861
Lockheed Martin Corp. ................................... 18,670 408,406
Loews Corp. ............................................. 5,000 303,438
Longs Drug Stores Corp. ................................. 1,869 48,244
Louisiana-Pacific Corp. ................................. 5,019 71,521
Lowe's Companies, Inc. .................................. 18,019 1,076,635
LSI Logic Corp. ......................................... 7,017 473,648
Lucent Technologies, Inc. ............................... 147,732 11,052,200
Mallinckrodt, Inc. ...................................... 3,281 104,377
Manor Care, Inc. ........................................ 4,859 77,744
Marriott International, Inc Cl A......................... 11,731 370,260
Marsh & McLennan Cos., Inc. ............................. 12,571 1,202,888
Masco Corp. ............................................. 21,087 535,083
Mattel, Inc. ............................................ 19,841 260,413
May Department Stores Co. ............................... 15,756 508,131
Maytag Corp. ............................................ 3,981 191,088
MBIA, Inc. .............................................. 4,695 247,955
MBNA Corp. .............................................. 37,806 1,030,214
McDermott International, Inc. ........................... 2,825 25,602
McDonald's Corp. ........................................ 63,845 2,573,752
McGraw-Hill Cos., Inc. .................................. 9,247 569,846
MCI WorldCom, Inc. ...................................... 133,834 7,101,593
McKesson HBOC, Inc. ..................................... 13,278 299,585
Mead Corp. .............................................. 4,840 210,238
MediaOne Group, Inc. .................................... 28,856 2,216,502
Medtronic, Inc. ......................................... 56,360 2,053,618
Mellon Financial Corp. .................................. 23,984 816,955
Merck & Co., Inc. ....................................... 110,215 7,391,293
Meredith Corp. .......................................... 2,434 101,467
Merrill Lynch & Co., Inc. ............................... 17,478 1,459,413
MGIC Investment Corp. ................................... 4,984 299,975
Micron Technology, Inc. ................................. 12,724 989,291
Microsoft Corp. ......................................... 243,307 28,406,064
Milacron, Inc. .......................................... 1,762 27,091
Millipore Corp. ......................................... 2,143 82,773
Minnesota Mining & Mfg. Co. ............................. 18,924 1,852,187
Mirage Resorts, Inc. .................................... 9,110 139,497
Molex Inc. .............................................. 7,393 419,091
Monsanto Co. ............................................ 29,923 1,066,007
Morgan (J.P.) & Co., Inc. ............................... 8,164 1,033,767
Morgan Stanley Dean Witter............................... 26,262 3,748,901
Motorola, Inc. .......................................... 28,720 4,229,020
Nabisco Group Holdings Corp. ............................ 15,379 163,402
NACCO Industries, Inc. Cl A.............................. 388 21,558
National City Corp. ..................................... 29,072 688,643
National Semiconductor Corp. ............................ 8,088 346,268
National Service Industries.............................. 1,925 56,788
Navistar International Corp ............................. 2,998 142,030
Network Appliance, Inc. ................................. 7,042 584,926
New Century Energies, Inc. .............................. 5,448 165,483
New York Times Co. Cl A.................................. 8,075 396,684
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Newell Rubbermaid, Inc. ................................. 13,299 $ 385,671
Newmont Mining Corp. .................................... 7,903 193,624
Nextel Communications, Inc. Cl A......................... 17,136 1,767,150
Niagara Mohawk Holdings, Inc. ........................... 8,831 123,082
Nicor, Inc. ............................................. 2,245 72,963
Nike, Inc. Cl B.......................................... 13,205 654,473
Nordstrom, Inc. ......................................... 6,533 171,083
Norfolk Southern Corp. .................................. 17,947 367,914
Nortel Networks Corp. ................................... 62,977 6,360,677
Northern States Power Co. ............................... 7,299 142,331
Northern Trust Corp. .................................... 10,496 556,288
Northrop Grumman Corp. .................................. 3,305 178,677
Novell, Inc. ............................................ 15,705 627,218
Nucor Corp. ............................................. 4,112 225,389
Occidental Petroleum Corp. .............................. 17,332 374,804
Office Depot, Inc. ...................................... 15,522 169,772
Old Kent Financial Corp. ................................ 5,551 196,367
Omnicom Group, Inc. ..................................... 8,367 836,700
Oneok, Inc. ............................................. 1,506 37,838
Oracle Corp. ............................................ 67,129 7,522,644
Owens Corning............................................ 2,610 50,406
Owens-Illinois, Inc. .................................... 7,079 177,417
Paccar, Inc. ............................................ 3,693 163,646
Pactiv Corp. ............................................ 8,080 85,850
Paine Webber Group, Inc. ................................ 6,729 261,169
Pall Corp. .............................................. 5,855 126,248
Parametric Technology Corp. ............................. 12,696 343,586
Parker Hannifin Corp. ................................... 5,281 270,981
Paychex, Inc. ........................................... 11,627 465,080
PE Corp-PE Biosystems Group.............................. 4,856 584,238
Peco Energy Co. ......................................... 8,760 304,410
Penney (J.C.) Co., Inc. ................................. 12,270 244,633
Peoples Energy Corp. .................................... 1,689 56,582
Peoplesoft, Inc. ........................................ 11,580 246,799
Pep Boys-Manny, Moe & Jack............................... 2,510 22,904
PepsiCo, Inc. ........................................... 68,639 2,419,525
Perkin Elmer, Inc. ...................................... 2,183 91,004
Pfizer, Inc. ............................................ 182,539 5,921,109
PG & E Corp. ............................................ 18,106 371,173
Pharmacia & Upjohn, Inc. ................................ 24,448 1,100,160
Phelps Dodge Corp. ...................................... 3,818 256,310
Phillip Morris Cos., Inc. ............................... 111,569 2,587,006
Phillips Petroleum Co. .................................. 11,943 561,321
Pinnacle West Capital Corp. ............................. 3,996 122,128
Pitney Bowes, Inc. ...................................... 12,507 604,244
Placer Dome, Inc. ....................................... 15,353 165,045
PNC Bank Corp. .......................................... 13,863 616,904
Polaroid Corp. .......................................... 2,112 39,732
Potlatch Corp. .......................................... 1,378 61,493
PP&L Resources, Inc. .................................... 6,775 154,978
PPG Industries, Inc. .................................... 8,195 512,700
Praxair, Inc. ........................................... 7,495 377,092
Price (T. Rowe) Associates, Inc. ........................ 5,642 208,401
Proctor & Gamble Co. .................................... 61,966 6,789,150
Progressive Corp. of Ohio................................ 3,473 253,963
Providian Financial Corp. ............................... 6,694 609,572
Public Svc. Enterprise Group, Inc. ...................... 10,307 358,812
Pulte Corp. ............................................. 2,059 46,328
Quaker Oats Co. ......................................... 6,309 414,028
Qualcomm, Inc. .......................................... 31,112 5,483,490
Quintiles Transnational Corp. ........................... 5,420 101,286
Ralston Purina Co. ...................................... 15,250 425,094
Raytheon Co. Cl B........................................ 15,957 423,858
Reebok International Ltd. ............................... 2,671 21,869
Regions Financial Corp. ................................. 10,310 259,039
</TABLE>
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Reliant Energy, Inc. .................................... 13,942 $ 318,923
Republic New York Corp. ................................. 4,939 355,608
Reynolds Metals Co. ..................................... 2,994 229,415
Rite-Aid Corp. .......................................... 12,209 136,588
Rockwell Intl., Corp. ................................... 8,969 429,391
Rohm & Haas Co. ......................................... 10,321 419,936
Rowan Cos., Inc. ........................................ 3,926 85,145
Royal Dutch Petroleum Co. N.Y. .......................... 101,108 6,110,715
Russell Corp. ........................................... 1,587 26,582
Ryder System, Inc. ...................................... 3,028 73,997
Safeco Corp. ............................................ 6,130 152,484
Safeway, Inc. ........................................... 23,991 853,180
Sara Lee Corp. .......................................... 42,847 945,312
SBC Communications, Inc. ................................ 160,854 7,841,633
Schering-Plough Corp. ................................... 69,270 2,922,328
Schlumberger, Ltd. ...................................... 25,926 1,458,338
Scientific-Atlanta, Inc. ................................ 3,704 206,035
Scottish Power plc--ADR.................................. * 25
Seagate Technology....................................... 9,822 457,337
Seagram Ltd. ............................................ 20,441 918,567
Sealed Air Corp. New..................................... 3,938 204,038
Sears Roebuck & Co. ..................................... 17,821 542,427
Sempra Energy............................................ 11,333 196,911
Service Corp. International.............................. 12,828 88,994
Shared Medical Systems Corp. ............................ 1,272 64,793
Sherwin-Williams Co. .................................... 7,821 164,241
Sigma-Aldrich Corp. ..................................... 4,757 143,007
Silicon Graphics, Inc. .................................. 8,667 85,045
SLM Holding Corp. ....................................... 7,501 316,917
Snap-On, Inc. ........................................... 2,759 73,286
Solectron Corp. ......................................... 13,813 1,313,962
Southern Co. ............................................ 31,738 745,843
Southtrust Corp. ........................................ 7,912 299,173
Southwest Airlines Co. .................................. 23,785 385,020
Springs Industries, Inc. ................................ 851 33,987
Sprint Corp. (FON Group)................................. 41,090 2,765,871
Sprint Corp. (PCS Group)................................. 20,320 2,082,800
St. Jude Medical, Inc. .................................. 3,968 121,768
St. Paul Companies, Inc. ................................ 10,716 360,995
Stanley Works............................................ 4,233 127,519
Staples, Inc. ........................................... 21,900 454,425
State Street Corp. ...................................... 7,543 551,110
Summit Bancorp........................................... 8,241 252,381
Sun Microsystems, Inc. .................................. 73,657 5,703,814
Sunoco, Inc. ............................................ 4,254 99,969
Suntrust Banks, Inc. .................................... 15,087 1,038,174
Supervalu, Inc. ......................................... 6,612 132,240
Synovus Financial Corp. ................................. 13,193 262,211
Sysco Corp. ............................................. 15,531 614,445
Tandy Corp. ............................................. 9,115 448,344
Tektronix, Inc. ......................................... 2,231 86,730
Tellabs, Inc. ........................................... 18,968 1,217,509
Temple-Inland, Inc. ..................................... 2,658 175,262
Tenet Healthcare Corp. .................................. 14,682 345,027
Teradyne, Inc. .......................................... 8,063 532,158
Texaco, Inc. ............................................ 26,078 1,416,361
Texas Instruments, Inc. ................................. 37,816 3,663,425
Texas Utilities Co. ..................................... 13,033 463,486
Textron, Inc. ........................................... 7,013 537,809
</TABLE>
- -------
* Fractional share attributable to Corporate Action.
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Thermo Electron Corp. ................................... 7,461 $ 111,915
Thomas & Betts Corp. .................................... 2,709 86,349
Time Warner, Inc. ....................................... 60,662 4,394,204
Times Mirror Co. ........................................ 2,849 190,883
Timken Co. .............................................. 2,948 60,250
TJX Companies, Inc. ..................................... 14,621 298,817
Torchmark Corp. ......................................... 6,202 180,246
Tosco Corp. ............................................. 6,787 184,522
Toys R Us, Inc. ......................................... 11,542 165,195
Transocean Sedco Forex, Inc. ............................ 5,019 169,087
Tribune Co. ............................................. 11,205 616,975
Tricon Global Restaurants Inc. .......................... 7,239 279,606
TRW, Inc. ............................................... 5,734 297,810
Tupperware Corp. ........................................ 2,743 46,460
Tyco International Ltd. ................................. 79,626 3,095,461
U.S. Bancorp............................................. 34,310 817,007
U.S. West, Inc. ......................................... 23,826 1,715,472
Unicom Corp. ............................................ 10,256 343,576
Unilever N.V. ........................................... 26,951 1,467,145
Union Carbide Corp. ..................................... 6,340 423,195
Union Pacific Corp. ..................................... 11,721 511,329
Union Pacific Resources Group, Inc. ..................... 11,885 151,534
Union Planters Corp. .................................... 6,650 262,259
Unisys Corp ............................................. 14,613 466,703
United Healthcare Corp. ................................. 8,004 425,213
United Technologies Corp. ............................... 22,574 1,467,310
Unocal Corp. ............................................ 11,431 383,653
UNUMProvident Corp. ..................................... 11,318 362,883
US Airways Group Inc. ................................... 3,369 108,019
UST, Inc. ............................................... 8,067 203,188
USX-Marathon Group....................................... 14,651 361,697
USX-U.S. Steel Group..................................... 4,168 137,544
V F Corp. ............................................... 5,570 167,100
Viacom, Inc. Cl B........................................ 32,864 1,986,218
Vulcan Materials Co. .................................... 4,718 188,425
W.R. Grace & Co. ........................................ 3,388 47,009
Wachovia Corp. .......................................... 9,560 650,080
Wal-Mart Stores, Inc. ................................... 209,834 14,504,775
Walgreen Co. ............................................ 47,317 1,384,022
Warner-Lambert Co. ...................................... 40,488 3,317,486
Washington Mutual, Inc. ................................. 27,221 707,746
Waste Management, Inc. .................................. 29,217 502,167
Watson Pharmaceuticals, Inc. ............................ 4,526 162,087
Wellpoint Health Networks Inc. .......................... 3,001 197,878
Wells Fargo & Company.................................... 77,438 3,131,399
Wendy's International, Inc. ............................. 5,638 116,284
Westvaco Corp. .......................................... 4,730 154,316
Weyerhaeuser Co. ........................................ 11,074 795,252
Whirlpool Corp. ......................................... 3,509 228,304
Willamette Industries, Inc. ............................. 5,260 244,261
Williams Cos., Inc. ..................................... 20,499 626,501
Winn-Dixie Stores, Inc. ................................. 7,008 167,754
Worthington Industries, Inc. ............................ 4,202 69,596
Wrigley (Wm.) Jr. Co. ................................... 5,459 452,756
Xerox Corp. ............................................. 31,321 710,595
Xilinx, Inc. ............................................ 15,082 685,760
Yahoo!, Inc. ............................................ 12,412 5,370,517
------------
Total Indexed Assets--Common Stocks
(Cost: $378,405,133) 99.7%....................................... 580,708,546
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- --------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.1%)
U.S. Treasury Bill (a).................. 5.13% 01/20/00 $ 500,000 $ 498,642
U.S. Treasury Bill (a).................. 5.14 01/20/00 200,000 199,453
------------
698,095
------------
Commercial Paper (0.2%)
UBS Finance (Delw.) Inc. ............... 4.00 01/03/00 1,338,000 1,337,703
------------
Total Short-Term Debt Securities
(Cost: $2,035,798) 0.3%......................................... 2,035,798
------------
Total Investments
(Cost: $380,440,931) 100.0%..................................... $582,744,344
============
</TABLE>
- --------------
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1999:
<TABLE>
<CAPTION>
Expiration Underlying Face Unrealized
Date Amount at Value Gain
---------- --------------- ----------
<S> <C> <C> <C>
Purchased
5 S&P 500 Stock Index
Futures Contracts...... March 2000 $1,855,250 $53,550
========== =======
</TABLE>
The face value of futures purchased and outstanding as percentage of
total investment in securities : 0.3%.
- -------
(a) This security has been segregated to cover initial margin requirements on
open contracts.
The accompanying notes are an integral part of these financial statements.
49
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-CAP EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS
Common Stocks
A. Schulman, Inc. ......................................... 1,083 $ 17,666
Abercrombie & Fitch Co. Cl A............................... 3,591 95,835
ACNielsen Corp. ........................................... 2,018 49,693
Acuson Corp. .............................................. 932 11,708
Acxiom Corp. .............................................. 2,949 70,776
Adtran, Inc. .............................................. 1,371 70,521
Affiliated Computer Svcs. Cl A............................. 1,711 78,706
AGCO Corp. ................................................ 2,070 27,816
AGL Resources, Inc. ....................................... 1,979 33,643
Airborne Freight Corp. .................................... 1,691 37,202
Airgas, Inc. .............................................. 2,461 23,380
AK Steel Holding Corp. .................................... 3,570 67,384
Alaska Air Group, Inc. .................................... 917 32,210
Albany International Corp. Cl A............................ 1,056 16,363
Albemarle Corp. ........................................... 1,636 31,391
Alexander & Baldwin, Inc. ................................. 1,506 34,356
Allamerica Financial Corp. ................................ 1,885 104,853
Allegheny Energy, Inc. .................................... 3,826 103,063
Alliant Energy Corp. ...................................... 2,728 75,020
Altera Corp. .............................................. 6,915 342,725
Ambac Financial Group, Inc. ............................... 2,431 126,868
American Eagle Outfitters.................................. 1,618 72,810
American Financial Group................................... 2,023 53,357
American Power Conversion.................................. 6,683 176,264
American Standard Cos., Inc. .............................. 2,459 112,807
American Water Works Inc. ................................. 3,359 71,379
Ametek, Inc. .............................................. 1,128 21,502
Apollo Group, Inc. Cl A.................................... 2,687 53,908
Apria Healthcare Group, Inc. .............................. 1,809 32,449
Arnold Industries, Inc. ................................... 865 12,164
Arrow Electronics, Inc. ................................... 3,336 84,651
Arvin Industries, Inc. .................................... 898 25,481
Associated Banc-Corp. ..................................... 2,199 75,316
Astoria Financial Corp. ................................... 1,905 57,983
Atmel Corp. ............................................... 6,970 206,051
Avnet, Inc. ............................................... 1,460 88,330
Bandag, Inc. .............................................. 762 19,050
Banta Corp. ............................................... 945 21,322
Barnes & Noble, Inc. ...................................... 2,411 49,727
Beckman Coulter, Inc. ..................................... 998 50,773
Belo (A.H.) Corp. Cl A..................................... 4,115 78,442
Bergen Brunswig Corp. Cl A................................. 4,667 38,794
Beverly Enterprises, Inc. ................................. 3,564 15,592
Biogen, Inc. .............................................. 5,227 441,681
BJ Services Co. ........................................... 2,464 103,026
BJ's Wholesale Club, Inc. ................................. 2,562 93,513
Black Hills Corp. ......................................... 756 16,774
Blyth Industries, Inc. .................................... 1,686 41,412
Bob Evans Farms, Inc. ..................................... 1,379 21,288
Borders Group, Inc. ....................................... 2,697 43,321
Borg-Warner Automotive, Inc. .............................. 929 37,624
Bowater, Inc. ............................................. 1,781 96,731
Brinker International, Inc. ............................... 2,266 54,384
BroadWing, Inc. ........................................... 7,520 277,300
Buffets, Inc. ............................................. 1,465 14,650
Burlington Industries...................................... 1,840 7,360
Cabot Corp. ............................................... 2,299 46,842
Cadence Design Systems, Inc. .............................. 8,436 202,464
Callaway Golf Co. ......................................... 2,637 46,642
Calpine Corp. ............................................. 2,179 139,456
Cambridge Technology Partners, Inc. ....................... 2,093 54,941
Carlisle Companies, Inc. .................................. 1,049 37,764
Carpenter Technology Corp. ................................ 762 20,907
Carter-Wallace, Inc. ...................................... 1,564 28,054
CBRL Group, Inc. .......................................... 2,031 19,707
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
CCB Financial Corp. ....................................... 1,380 $ 60,116
CDW Computers Centers, Inc. ............................... 1,504 118,252
Charter One Financial, Inc. ............................... 7,350 140,569
Checkfree Holdings Corp. .................................. 1,905 199,072
Chesapeake Corp. .......................................... 607 18,513
Chiron Corp. .............................................. 6,293 266,666
Chris-Craft Industries, Inc. .............................. 1,167 84,170
Church & Dwight, Inc. ..................................... 1,352 36,081
Cintas Corp. .............................................. 3,857 204,903
Cirrus Logic, Inc. ........................................ 2,280 30,352
City National Corp. ....................................... 1,585 52,206
CK Witco Corporation....................................... 4,129 55,225
Claire's Stores, Inc. ..................................... 1,775 39,716
Clayton Homes, Inc. ....................................... 4,848 44,541
Cleco Corporation.......................................... 783 25,105
Cleveland Cliffs, Inc. .................................... 390 12,139
CMP Group, Inc. ........................................... 1,128 31,090
CNF Transportation, Inc. .................................. 1,681 57,994
Comdisco, Inc. ............................................ 5,325 198,356
Compass Bancshares Inc. ................................... 3,951 88,157
CompUSA, Inc. ............................................. 3,190 16,349
COMSAT Corp. .............................................. 1,834 36,451
Concord EFS, Inc. ......................................... 7,111 183,108
Conectiv, Inc. ............................................ 3,222 54,170
Consolidated Papers, Inc. ................................. 3,154 100,337
Convergys Corp. ........................................... 5,306 163,159
Cordant Technologies, Inc. ................................ 1,275 42,075
Covance, Inc. ............................................. 2,044 22,101
Cypress Semiconductor Corp. ............................... 3,786 122,572
Cytec Industries, Inc. .................................... 1,488 34,410
Dean Foods Co. ............................................ 1,371 54,497
Dentsply International, Inc. .............................. 1,839 43,446
Devon Energy Corp. ........................................ 2,972 97,704
DeVry, Inc. ............................................... 2,413 44,942
Dexter Corp. .............................................. 801 31,840
Dial Corp. ................................................ 3,650 88,741
Diebold, Inc. ............................................. 2,398 56,353
Dime Bancorp, Inc. ........................................ 3,840 58,080
Dole Food Company, Inc. ................................... 1,934 31,427
Dollar Tree Stores, Inc. .................................. 2,154 104,334
Donaldson Company, Inc. ................................... 1,605 38,620
DPL, Inc. ................................................. 5,518 95,530
DQE, Inc. ................................................. 2,618 90,648
Dreyers Grand Ice Cream, Inc. ............................. 959 16,303
DST Systems, Inc. ......................................... 2,203 168,116
E*Trade Group, Inc. ....................................... 8,468 221,226
Edwards (A.G.), Inc. ...................................... 3,190 102,279
Electronic Arts, Inc. ..................................... 2,167 182,028
Energy East Corporation.................................... 3,978 82,792
ENSCO Group, Inc. ......................................... 4,774 109,205
Ethyl Corp. ............................................... 2,902 11,427
Everest Reinsurance Holdings............................... 1,627 36,302
Express Scripts, Inc. Cl A................................. 1,337 85,568
Family Dollar Stores, Inc. ................................ 6,006 97,973
Fastenal Co. .............................................. 1,319 59,273
Federal Signal Corp. ...................................... 1,606 25,796
Federal-Mogul Corp. ....................................... 2,558 51,480
Ferro Corp. ............................................... 1,231 27,082
Finova Group, Inc. ........................................ 2,127 75,508
First Health Group Corp. .................................. 1,700 45,687
First Security Corp. ...................................... 6,789 173,332
First Tennessee Natl. Corp. ............................... 4,543 129,475
First Virginia Banks, Inc. ................................ 1,744 74,992
Firstmerit Corp. .......................................... 3,111 71,553
Fiserv, Inc. .............................................. 4,248 162,751
</TABLE>
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-CAP EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Flowers Industries, Inc. .................................. 3,486 $ 55,558
Flowserve Corporation...................................... 1,301 22,117
Forest Laboratories, Inc. ................................. 2,901 178,230
Foundation Health Systems, Inc. Cl A....................... 4,250 42,234
Fuller (H.B.) Co. ......................................... 488 27,297
Furniture Brands Intl., Inc. .............................. 1,710 37,620
Gartner Group, Inc. Cl B................................... 3,062 42,294
GATX Corp, Inc. ........................................... 1,723 58,151
Genzyme Corp. ............................................. 2,899 130,455
Georgia Gulf Corp. ........................................ 1,076 32,751
Georgia-Pacific Group...................................... 2,881 70,945
Gilead Sciences, Inc. ..................................... 1,522 82,378
Glatfelter (P.H.) Co. ..................................... 1,467 21,363
Global Marine, Inc. ....................................... 6,057 100,698
Granite Construction....................................... 945 17,423
Greenpoint Financial Corp ................................. 3,735 88,940
GTECH Holdings Corp. ...................................... 1,212 26,664
Hanna (M. A.) Co. ......................................... 1,700 18,594
Hannaford Brothers Co. .................................... 1,466 101,612
Hanover Compressor Co. .................................... 995 37,561
Harley-Davidson, Inc. ..................................... 5,242 335,816
Harris Corp. .............................................. 2,773 74,004
Harsco Corp. .............................................. 1,391 44,164
Harte-Hanks, Inc. ......................................... 2,379 51,743
Hawaiian Electric Inds., Inc. ............................. 1,120 32,340
Health Management Associates, Inc. ........................ 8,777 117,392
Heilig-Meyers Co. ......................................... 2,082 5,725
Hibernia Corp Cl A......................................... 5,571 59,192
Hillenbrand Industries, Inc. .............................. 2,268 71,867
Hilton Hotels Corp. ....................................... 8,103 77,991
Hispanic Broadcasting Corp. ............................... 1,890 174,294
HON Industries, Inc. ...................................... 2,091 45,871
Horace Mann Educators Corp. ............................... 1,427 28,005
Hormel Foods Corp. ........................................ 2,534 102,944
Houghton Mifflin Co. ...................................... 1,079 45,520
HSB Group, Inc. ........................................... 1,005 33,982
Hubbell, Inc. Cl B......................................... 2,260 61,585
IBP, Inc. ................................................. 3,208 57,744
ICN Pharmaceuticals, Inc. ................................. 2,720 68,850
IdaCorp, Inc. ............................................. 1,308 35,071
Illinova Corp. ............................................ 2,431 84,477
Imation Corp. ............................................. 1,270 42,624
IMC Global, Inc. .......................................... 3,981 65,189
Indiana Energy, Inc. ...................................... 1,036 18,389
Informix Corp. ............................................ 6,975 79,341
Integrated Device Technology, Inc. ........................ 3,154 91,466
International Game Technology.............................. 3,133 63,639
International Multifoods Corp. ............................ 652 8,639
International Speedway Corp. Cl A.......................... 1,847 93,043
Interstate Bakeries Corp. ................................. 2,440 44,225
Intuit, Inc. .............................................. 6,766 405,537
Investment Technology Grp, Inc. ........................... 1,075 30,906
IPALCO Enterprises, Inc. .................................. 2,981 50,863
Ivax Corp. ................................................ 3,656 94,142
J.B. Hunt Transport Srvcs, Inc. ........................... 1,239 17,152
J.M. Smucker Co. Cl A...................................... 1,014 19,773
Jabil Circuit, Inc. ....................................... 3,049 222,577
Jacobs Engineering Group, Inc. ............................ 901 29,282
Jones Apparel Group, Inc. ................................. 4,257 115,471
Kansas City Power & Light Co. ............................. 2,152 47,477
Kaydon Corp. .............................................. 1,067 28,609
Keane, Inc. ............................................... 2,490 79,057
Kelly Services, Inc. Cl A.................................. 1,247 31,331
Kennametal, Inc. .......................................... 1,041 35,004
Keyspan Corporation........................................ 4,637 107,520
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Keystone Financial, Inc. .................................. 1,687 $ 35,532
Kinder Morgan, Inc. ....................................... 3,906 78,852
Lancaster Colony Corp. .................................... 1,387 45,944
Lance Inc. ................................................ 1,042 10,420
Lands End, Inc. ........................................... 1,045 36,314
Lear Corp. ................................................ 2,324 74,368
Lee Enterprises, Inc. ..................................... 1,544 49,311
Legato Systems, Inc. ...................................... 2,944 202,584
Legg Mason, Inc. .......................................... 1,975 71,594
LG & E Energy Corp. ....................................... 4,509 78,626
Lincare Holdings, Inc. .................................... 1,872 64,935
Linear Technology Corp. ................................... 5,322 380,856
Litton Industries, Inc. ................................... 1,580 78,802
Lone Star Steakhouse Saloon................................ 1,151 10,269
Longview Fibre Co. ........................................ 1,797 25,607
Lubrizol Corp. ............................................ 1,899 58,632
Lyondell Chemical Co. ..................................... 4,085 52,084
Magnatek, Inc. ............................................ 835 6,419
Mandalay Resort Group...................................... 3,159 63,575
Manpower, Inc. ............................................ 2,628 98,878
Mark IV Industries, Inc. .................................. 1,619 28,636
Marshall & Ilsley Corp. ................................... 3,690 231,778
Martin Marietta Materials, Inc. ........................... 1,624 66,584
Maxim Integrated Products, Inc. ........................... 9,470 446,866
Maxxam, Inc. .............................................. 243 10,419
McCormick & Co., Inc. ..................................... 2,479 73,750
MCN Energy Group Inc. ..................................... 2,978 70,728
Media General Inc. Cl A.................................... 925 48,100
Medimmune, Inc. ........................................... 2,336 387,484
Mentor Graphics Corp. ..................................... 2,224 29,329
Mercantile Bankshares Corp. ............................... 2,407 76,874
Meritor Automotive, Inc. .................................. 2,403 46,558
Micro Warehouse, Inc. ..................................... 1,245 23,032
Microchip Technology, Inc. ................................ 1,768 120,997
Midamerican Energy Hldgs. Co. ............................. 2,074 69,868
Millennium Pharmaceuticals Inc. ........................... 1,259 153,598
Miller (Herman), Inc. ..................................... 2,767 63,641
Minerals Technologies, Inc. ............................... 745 29,847
Minimed, Inc. ............................................. 1,075 78,744
Minnesota Power, Inc. ..................................... 2,543 43,072
Modine Manufacturing Co. .................................. 1,027 25,675
Modis Professional Services................................ 3,335 47,524
Mohawk Industries, Inc. ................................... 2,108 55,598
Montana Power. Co. ........................................ 3,832 138,191
Murphy Oil Corp. .......................................... 1,564 89,735
Mylan Laboratories, Inc. .................................. 4,492 113,142
Nabors Industries, Inc. ................................... 4,807 148,717
National Commerce Bancorporation........................... 3,750 85,078
National Fuel Gas Co. ..................................... 1,349 62,729
Navigant Consulting Co. ................................... 1,443 15,693
NCH Corp. ................................................. 188 8,378
NCO Group, Inc. ........................................... 866 26,088
NCR Corp. ................................................. 3,345 126,692
Neiman-Marcus Group, Inc. ................................. 1,704 47,606
Networks Associates, Inc. ................................. 4,833 128,981
New England Electric System................................ 2,056 106,398
Newport News Shipbuilding Inc. ............................ 1,142 31,405
NiSource, Inc. ............................................ 4,348 77,721
Noble Affiliates, Inc. .................................... 1,982 42,489
Noble Drilling Corp. ...................................... 4,553 149,111
Nordson Corp. ............................................. 575 27,744
North Fork Bancorp, Inc. .................................. 4,517 79,048
Northeast Utilities........................................ 4,571 93,991
NOVA Corp. ................................................ 2,548 80,421
Novellus Systems, Inc. .................................... 1,354 165,907
</TABLE>
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-CAP EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
NSTAR...................................................... 2,083 $ 84,362
Ocean Energy, Inc. ........................................ 5,793 44,896
OfficeMax, Inc. ........................................... 3,941 21,676
Ogden Corp. ............................................... 1,711 20,425
OGE Energy Corp. .......................................... 2,705 51,395
Ohio Casualty Corp. ....................................... 2,081 33,426
Old Republic Intl. Corp. .................................. 4,373 59,582
Olin Corp. ................................................ 1,573 31,165
Olsten Corp. .............................................. 2,827 31,980
Omnicare, Inc. ............................................ 3,172 38,064
Oregon Steel Mills, Inc. .................................. 896 7,112
Outback Steakhouse, Inc. .................................. 2,617 67,878
Overseas Shipholding Group, Inc. .......................... 1,161 17,197
Oxford Health Plans, Inc. ................................. 2,828 35,880
Pacific Century Finl Corp. ................................ 2,791 52,157
Pacificare Health Systems, Inc. ........................... 1,509 79,977
Papa John's Intl., Inc. ................................... 1,054 27,470
Park Place Entertainment Corp. ............................ 10,562 132,025
Payless Shoesource, Inc. .................................. 1,076 50,572
Pennzoil-Quaker State Co. ................................. 2,707 27,578
Pentair, Inc. ............................................. 1,675 64,488
Perrigo Co. ............................................... 2,548 20,384
Pioneer Natural Resources Co. ............................. 3,488 31,174
Pittston Brinx Group....................................... 1,421 31,262
Policy Management Systems Corp. ........................... 1,237 31,621
Polycom, Inc. ............................................. 1,142 72,731
Potomac Electric Power Co. ................................ 4,122 94,548
Precision Castparts Corp. ................................. 852 22,365
Premier Parks, Inc. ....................................... 2,717 78,453
Protective Life Corp. ..................................... 2,243 71,355
Provident Financial Group, Inc. ........................... 1,510 54,171
PSS World Medical Inc. .................................... 2,468 23,292
Public Service Co. New Mexico.............................. 1,418 23,043
Puget Sound Energy, Inc. .................................. 2,940 56,963
QlLogic Corporation........................................ 1,260 201,443
Quantum Corp. ............................................. 5,709 86,337
Questar Corp. ............................................. 2,876 43,140
Quorum Health Group, Inc. ................................. 2,448 22,797
Rational Software Corp. ................................... 3,030 148,849
Rayonier, Inc. ............................................ 965 46,622
Reader's Digest Association, Inc. ......................... 3,688 107,874
Reliastar Financial Corp. ................................. 3,075 120,502
Reynolds & Reynolds Co. Cl A............................... 2,686 60,435
RJ Reynolds Tobacco Holdings, Inc. ........................ 3,775 66,534
Robert Half Intl., Inc. ................................... 3,108 88,772
Rollins, Inc. ............................................. 1,055 15,825
Ross Stores, Inc. ......................................... 3,134 56,216
RPM, Inc. ................................................. 3,742 38,122
Ruddick Corp. ............................................. 1,615 25,033
Ryerson Tull, Inc. ........................................ 868 16,872
Saks Incorporated.......................................... 5,031 78,295
Sanmina Corp. ............................................. 2,028 202,547
Santa Fe Snyder Corp. ..................................... 6,389 51,112
Scana Corp. ............................................... 3,602 96,804
Scholastic Corp. .......................................... 572 35,571
SCI Systems, Inc. ......................................... 2,508 206,126
Sensormatic Electronics Corp. ............................. 2,629 45,843
Sepracor, Inc. ............................................ 1,145 113,570
Sequa Corp. Cl A........................................... 360 19,418
Shaw Industries, Inc. ..................................... 4,635 71,553
Siebel Systems, Inc. ...................................... 6,678 560,952
Sierra Pacific Resources................................... 2,717 47,033
Smith International, Inc. ................................. 1,720 85,463
Solutia, Inc. ............................................. 3,816 58,910
Sonoco Products Co. ....................................... 3,545 80,649
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued)
Common Stocks (Continued)
Sotheby's Holdings, Inc. .................................. 2,044 $ 61,320
Southdown, Inc. ........................................... 1,248 64,428
Sovereign Bancorp, Inc. ................................... 7,614 56,748
SPX, Corp. ................................................ 1,084 87,601
Standard Register Co. ..................................... 980 18,988
Starbucks Corp. ........................................... 6,335 153,624
Steris Corp. .............................................. 2,341 24,142
Sterling Commerce, Inc. ................................... 3,071 104,606
Sterling Software, Inc. ................................... 2,929 92,264
Stewart & Stevenson Svcs., Inc. ........................... 973 11,524
Stewart Enterprises, Inc. Cl A............................. 3,762 17,870
Storage Technology Corp. .................................. 3,483 64,218
Structural Dynamics Research Corp. ........................ 1,248 15,912
Stryker Corp. ............................................. 3,370 234,636
Suiza Foods Corp. ......................................... 1,081 42,835
Sungard Data Sys Inc. ..................................... 4,442 105,498
Superior Industries Intl., Inc. ........................... 933 25,016
Swift Transportation, Inc. ................................ 2,235 39,392
Sybron Intl. Corp. ........................................ 3,608 89,073
Sykes Enterprises, Inc. ................................... 1,471 64,540
Sylvan Learning Systems, Inc. ............................. 1,765 22,945
Symantec Corp. ............................................ 2,014 118,071
Symbol Technologies, Inc. ................................. 3,068 195,010
Synopsys, Inc. ............................................ 2,463 164,405
TCF Banking & Savings...................................... 2,901 72,162
Tech Data Corp. ........................................... 1,782 48,337
Teco Energy, Inc. ......................................... 4,484 83,234
Tecumseh Products Co. Cl A................................. 701 33,078
Teleflex, Inc. ............................................ 1,318 41,270
Telephone & Data Systems, Inc. ............................ 2,137 269,262
The PMI Group, Inc. ....................................... 1,556 75,952
Tidewater, Inc. ........................................... 1,934 69,624
Tiffany & Co. ............................................. 2,499 223,036
Total Renal Care Holdings, Inc. ........................... 2,823 18,879
Transaction Systems Architects,
Inc. Cl A................................................. 1,132 31,696
Transocean Sedco Forex, Inc. .............................. 3,497 117,805
Trigon Healthcare, Inc. Cl A............................... 1,360 40,120
Trinity Industries, Inc. .................................. 1,394 39,642
Tyson Foods, Inc. Cl A..................................... 7,953 129,236
UCAR Int'l., Inc. ......................................... 1,568 27,930
Ultramar Diamond Shamrock Corp. ........................... 3,012 68,335
Unifi, Inc. ............................................... 2,078 25,585
Unitrin Inc. .............................................. 2,516 94,665
Universal Corp. ........................................... 1,073 24,478
Universal Foods Corp. ..................................... 1,748 35,616
Univision Communications, Inc. Cl A........................ 3,529 360,620
US Foodservice............................................. 3,517 58,910
USG Corp. ................................................. 1,731 81,573
UtiliCorp United, Inc. .................................... 3,238 62,939
Valero Refining & Marketing Corp. ......................... 1,956 38,876
Varco International, Inc. ................................. 2,263 23,054
Veritas Software Corp. .................................... 8,978 1,284,976
Viad Corp. ................................................ 3,290 91,709
Vishay Intertechnology, Inc. .............................. 2,942 93,041
VISX, Inc. ................................................ 2,217 114,730
Vitesse Semiconductor Corp. ............................... 5,337 279,859
Vlasic Foods International, Inc. .......................... 1,582 8,998
Wallace Computer Svcs., Inc. .............................. 1,458 24,239
Warnaco Group, Inc. Cl A................................... 1,932 23,788
Washington Gas Light Co. .................................. 1,616 44,440
Washington Post Co. Cl B................................... 350 194,556
Waters Corp. .............................................. 2,134 113,102
Wausau-Mosinee Paper Corp. ................................ 1,781 20,815
Weatherford International, Inc. ........................... 3,744 149,526
</TABLE>
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-CAP EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Webster Financial Corp. ................................... 1,579 $ 37,205
Wellman, Inc. ............................................. 1,176 21,903
Westamerica Bancorporation................................. 1,303 36,403
Westpoint Stevens, Inc. ................................... 1,850 32,375
Westwood One, Inc. ........................................ 1,921 145,996
Whitman Corp. ............................................. 4,890 65,709
Williams-Sonoma, Inc. ..................................... 1,942 89,332
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Wilmington Trust Corp. .................................... 1,153 $ 55,632
Wisconsin Central Transport Corp. ......................... 1,782 23,946
Wisconsin Energy Corp. .................................... 4,074 78,425
York International Corp. .................................. 1,350 37,041
Zions Bancorporation....................................... 2,946 174,366
-----------
Total Indexed Assets--Common Stocks
(Cost: $30,291,833) 94.7%......................................... 32,122,302
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-CAP EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- -------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.7%)
U.S. Treasury Bill (a).................... 5.13% 01/20/00 $225,000 $ 224,389
-----------
Agency (1.6%)
Federal Home Loan Bank.................... 4.75 01/12/00 537,000 536,220
-----------
Commercial Paper ( 3.0%)
Novartis Finance Corp. ................... 5.15 01/24/00 526,000 524,269
Snap-On, Inc. ............................ 4.00 01/03/00 500,000 499,889
-----------
1,024,158
-----------
Total Short-Term Debt Securities
(Cost: $1,784,767) 5.3%.......................................... 1,784,767
-----------
Total Investments
(Cost: $32,076,600) 100.0%....................................... $33,907,069
===========
</TABLE>
- --------------
FUTURES CONTRACTS OUTSTANDING AS OF December 31, 1999:
<TABLE>
<CAPTION>
Expiration Underlying Face Unrealized
Date Amount at Value Gain
---------- --------------- ----------
<S> <C> <C> <C>
Purchased
8 S&P MidCap 400 Stock Index Futures
Contracts.............................. March 2000 $1,796,600 $59,350
========== =======
</TABLE>
The face value of futures purchased and outstanding as percentage of total
investment in securities: 5.3%.
- -------
(a) This security has been segregated to cover initial margin requirements on
open contracts.
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
----- -------- ----------- ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government (2.4%)
U.S. Treasury Note................... 6.50% 08/15/05 $ 2,500,000 $ 2,500,000
U.S. Treasury Strip.................. 0.00 05/15/14 10,000,000 3,763,400
U.S. Treasury Strip.................. 0.00 02/15/17 15,000,000 4,685,250
------------
10,948,650
------------
Agencies/Other Governments (41.5%)
Connecticut Housing Fin. Auth........ 7.63 05/15/21 2,500,000 2,375,050
FHLB................................. 0.00 06/26/17 50,000,000 11,953,000
FHLB................................. 0.00 07/07/17 125,000,000 29,687,500
FHLB................................. 0.00 07/14/17 25,000,000 5,929,750
FHLB................................. 0.00 07/07/22 50,000,000 7,593,500
FHLMC................................ 8.50 08/01/02 212,410 214,953
FHLMC................................ 7.00 05/15/06 441,857 441,442
FHLMC................................ 8.00 07/15/06 374,624 380,360
FHLMC................................ 6.38 11/15/06 1,063,027 1,057,042
FHLMC................................ 7.50 04/01/07 24,906 24,798
FHLMC................................ 6.50 04/15/08 775,000 772,574
FHLMC................................ 6.00 04/15/08 500,000 491,250
FHLMC................................ 7.63 09/09/09 97,000,000 95,803,020
FHLMC................................ 5.00 08/15/19 920,142 902,594
FNMA................................. 7.00 10/25/05 612,826 611,674
FNMA................................. 7.00 12/25/18 126,188 125,754
FNMA................................. 6.00 06/25/19 900,000 880,875
FNMA................................. 6.25 01/25/20 850,000 842,826
FNMA................................. 5.00 04/25/21 583,228 563,725
New York City........................ 9.50 06/01/09 5,000,000 5,323,380
New York City........................ 10.00 08/01/05 2,000,000 2,166,434
Republic of Iceland.................. 6.13 02/01/04 5,000,000 4,775,800
Suffolk County, New York............. 5.80 11/01/04 4,000,000 3,914,080
Suffolk County, New York............. 5.88 11/01/05 4,000,000 3,894,860
Tennessee Valley Authority........... 7.85 06/15/44 10,000,000 9,822,400
------------
190,548,641
------------
Basic Materials (6.6%)
Arco Chemical Co..................... 10.25 11/01/10 7,500,000 7,405,725
Georgia-Pacific (Timber Group)....... 8.63 04/30/25 7,000,000 6,869,870
Inco Ltd............................. 9.60 06/15/22 7,500,000 7,266,525
Millennium America Inc............... 7.63 11/15/26 5,000,000 4,158,400
Praxair, Inc......................... 6.90 11/01/06 5,000,000 4,724,100
------------
30,424,620
------------
Consumer, Cyclical (8.3%)
Centex Corp.......................... 8.75 03/01/07 2,000,000 2,011,300
Centex Corp.......................... 7.38 06/01/05 5,000,000 4,761,950
Fruit of the Loom, Inc............... 7.00 03/15/11 2,500,000 562,500
Fruit of the Loom, Inc............... 7.38 11/15/23 1,250,000 431,250
Gannett Co., Inc..................... 5.85 05/01/00 3,500,000 3,496,885
Neiman-Marcus Group, Inc............. 7.13 06/01/28 2,500,000 2,054,975
Oakwood Homes Corp................... 8.13 03/01/09 2,500,000 2,302,173
</TABLE>
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
----- -------- ----------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES (Continued):
Consumer, Cyclical (Continued)
Pulte Corp............................ 7.63% 10/15/17 $ 7,500,000 $ 6,390,750
Polaroid Corp......................... 7.25 01/15/07 3,750,000 3,196,725
Shopko Stores, Inc.................... 9.00 11/15/04 5,000,000 5,210,550
Tommy Hilfiger USA, Inc............... 6.50 06/01/03 5,000,000 4,741,550
V F Corp.............................. 9.25 05/01/22 1,000,000 1,051,710
Venator Group, Inc.................... 7.00 10/15/02 2,000,000 1,820,000
-----------
38,032,318
-----------
Consumer, Non-cyclical (9.0%)
Aventis............................... 7.75 01/15/02 3,000,000 3,000,930
Bausch & Lomb, Inc.................... 6.15 08/01/01 5,000,000 4,937,950
Bausch & Lomb, Inc.................... 6.38 08/01/03 5,250,000 5,087,198
Bausch & Lomb, Inc.................... 6.75 12/15/04 5,000,000 4,789,050
Kellwood Co........................... 7.88 07/15/09 10,000,000 9,118,200
Panamerican Beverages, Inc............ 7.25 07/01/09 5,000,000 4,253,300
Ralston Purina Co..................... 8.63 02/15/22 7,500,000 7,533,450
Supervalu, Inc........................ 8.88 11/15/22 2,500,000 2,628,025
-----------
41,348,103
-----------
Energy (3.1%)
Southern Union Co..................... 7.60 02/01/24 10,000,000 9,329,600
Tosco Corp............................ 8.25 05/15/03 5,000,000 5,091,250
-----------
14,420,850
-----------
Financial (11.6%)
Bear Stearns Cos., Inc................ 6.63 10/01/04 2,000,000 1,918,240
Berkley (W.R.) Corp................... 8.70 01/01/22 5,000,000 4,905,400
Chase Manhattan Corp.................. 6.88 12/12/12 5,000,000 4,817,050
Citicorp Mortgage Securirties, Inc.... 6.25 03/25/24 6,787 6,755
Executive Risk, Inc................... 7.13 12/15/07 5,000,000 4,804,850
Fairfax Financial Holdings, Ltd....... 8.25 10/01/15 2,500,000 2,202,200
First American Financial.............. 7.55 04/01/28 1,500,000 1,285,980
Freemont General Corp................. 7.70 03/17/04 5,000,000 4,328,100
Harleysville Group Inc................ 6.75 11/15/03 2,500,000 2,411,900
Lehman Brothers Holdings, Inc......... 0.00 07/28/28 10,000,000 882,100
Morgan (J.P.) & Co., Inc.............. 0.00 04/15/27 32,500,000 3,134,625
Nationwide Health Properties.......... 7.90 11/20/06 5,000,000 4,325,100
Progressive Corp. of Ohio............. 10.00 12/15/00 1,500,000 1,541,175
Rank Group Financial.................. 6.75 11/30/04 5,000,000 4,629,450
SunAmerica, Inc....................... 9.95 02/01/12 5,000,000 5,920,700
Triad Guaranty........................ 7.90 01/15/28 3,250,000 2,981,553
Vesta Insurance Group, Inc............ 8.75 07/15/25 5,000,000 3,255,400
-----------
53,350,578
-----------
Industrial (10.0%)
Browning-Ferris Inds., Inc............ 7.88 03/15/05 5,000,000 4,644,400
Clark Equipment Co.................... 8.35 05/15/23 5,000,000 5,155,000
Geon Co............................... 6.88 12/15/05 5,000,000 4,692,000
Geon Co............................... 7.50 12/15/15 3,750,000 3,416,475
</TABLE>
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Rate Maturity Face Amount Value
---- -------- ----------- ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES (Continued):
Industrial (Continued)
Owens Corning......................... 7.00% 03/15/09 $ 2,500,000 $ 2,199,925
Thermo Electron Corp.................. 4.25 01/01/03 7,500,000 6,328,124
Thermo Instrument Systems, Inc........ 4.00 01/15/05 10,000,000 7,300,000
USX Corp.............................. 8.75 09/15/22 2,000,000 2,015,140
Williams Cos., Inc.................... 6.50 11/15/02 10,000,000 9,760,000
------------
45,511,064
------------
Utilities (3.5%)
New Orleans Public Service............ 8.00 03/01/06 4,000,000 4,027,080
Pacific Gas & Electric Co............. 8.75 01/01/01 2,000,000 2,036,520
UtiliCorp United, Inc................. 8.00 03/01/23 10,000,000 9,776,300
------------
15,839,900
------------
Total Long-Term Debt Securities (Cost: $467,418,711) 96.0%....... 440,424,724
------------
SHORT-TERM DEBT SECURITIES:
Commercial Paper (4.0%)
Abbott Laboratories................... 6.25 01/13/00 4,668,000 4,658,256
BellSouth Telecommunications.......... 5.05 02/02/00 3,061,000 3,047,256
General Electric Capital Corp......... 6.33 01/18/00 4,785,000 4,770,656
Gillette Company...................... 5.25 01/07/00 4,133,000 4,128,686
UBS Finance (Delw.) Inc............... 4.00 01/03/00 1,595,000 1,594,646
------------
Total Short-Term Debt Securities (Cost: $18,199,500) 4.0%........ 18,199,500
------------
Total Investments (Cost: $485,618,211) 100.0%.................... $458,624,224
============
</TABLE>
- -------
Abbreviations: FHLB = Federal Home Loan Bank
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ---------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES:
U.S. Government (4.1%)
U.S. Treasury Note...................... 6.13% 07/31/00 $ 500,000 $ 500,705
-----------
Agencies (59.2%)
FHLMC................................... 7.00 04/15/01 211,504 210,976
FHLMC................................... 8.00 04/01/02 113,604 114,276
FHLMC................................... 8.00 05/01/02 204,651 205,717
FHLMC................................... 8.50 08/01/02 235,421 238,239
FHLMC................................... 7.75 12/01/02 139,113 139,444
FHLMC................................... 7.00 05/15/06 220,929 220,721
FHLMC................................... 7.50 02/15/07 274,458 275,915
FHLMC................................... 7.00 03/15/07 282,411 280,821
FHLMC................................... 7.50 09/01/07 328,496 326,985
FHLMC................................... 7.00 03/15/08 154,900 154,802
FHLMC................................... 6.00 09/15/08 119,241 116,707
FHLMC................................... 8.25 10/01/09 248,281 251,315
FHLMC................................... 8.00 05/01/14 212,138 213,225
FHLMC................................... 8.50 09/01/17 110,732 113,258
FHLMC................................... 6.00 12/15/17 89,390 89,026
FHLMC................................... 5.00 08/15/19 441,668 433,245
FHLMC................................... 6.50 05/15/21 114,350 112,920
FHLMC................................... 6.00 05/15/22 108,219 106,190
FNMA.................................... 6.03 06/12/03 200,000 194,374
FNMA.................................... 8.25 09/25/05 19,120 19,066
FNMA.................................... 8.25 10/01/05 47,503 47,504
FNMA.................................... 7.00 10/25/05 262,640 262,146
FNMA.................................... 7.00 11/25/05 281,404 280,700
FNMA.................................... 7.50 11/25/06 451,253 452,381
FNMA.................................... 7.50 02/25/07 248,712 249,644
FNMA.................................... 7.75 03/01/08 202,534 204,446
FNMA.................................... 8.00 04/01/08 141,352 144,590
FNMA.................................... 7.50 01/01/09 181,964 182,911
FNMA.................................... 8.25 01/01/10 401,450 410,065
FNMA.................................... 6.30 09/25/18 305,000 302,139
FNMA.................................... 7.00 12/25/18 126,188 125,754
FNMA.................................... 6.70 01/18/19 39,052 38,930
FNMA.................................... 5.50 04/25/19 131,375 130,431
FNMA.................................... 6.50 04/25/19 300,000 298,311
FNMA.................................... 6.10 08/25/21 106,520 104,989
GNMA.................................... 9.50 12/20/03 37,181 38,214
GNMA.................................... 9.00 03/15/10 142,043 147,878
-----------
7,238,255
-----------
Consumer, Cyclical (4.0%)
Venator Group, Inc. .................... 7.00 06/01/00 500,000 494,725
-----------
Consumer, Non-cyclical (1.9%)
Jones Apparel Group, Inc ............... 6.25 10/01/01 240,000 234,269
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ---------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES
(Continued):
Energy (3.2%)
Columbia Gas Systems, Inc. ............ 6.61% 11/28/02 $ 400,000 $ 390,008
-----------
Financial (6.9%)
Chase Mortgage Finance Corp. .......... 6.50 09/25/09 500,000 495,310
Citicorp Mortgage Sec. Inc. ........... 6.25 03/25/24 2,755 2,742
FBC Mortgage Securities Trust.......... 8.30 08/20/09 28,557 28,494
GE Capital Mtge. Services, Inc. ....... 6.00 09/25/08 45,279 44,939
Morgan Stanley Capital, Inc. .......... 6.85 02/15/20 204,507 202,973
Prudential Home Mtge. Secs. Co. ....... 6.75 08/25/08 71,033 70,678
-----------
845,136
-----------
Industrial (4.0%)
Edperbrascan Corp. .................... 7.38 10/01/02 500,000 490,160
-----------
Total Intermediate-Term Debt Securities
(Cost $10,299,416) 83.3%........................................ 10,193,258
-----------
Short-Term Debt Securities:
Agencies (16.7%)
Federal Home Loan Bank................. 1.28 01/03/00 1,390,000 1,389,901
Federal Home Loan Bank................. 4.75 01/12/00 651,000 650,055
-----------
Total Short-Term Debt Securities
(cost: $2,039,956) 16.7%........................................ 2,039,956
-----------
Total Investments
(Cost: $12,339,372) 100.0%...................................... $12,233,214
===========
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
GNMA = Government National Mortgage Association
The accompanying notes are an integral part of these financial statements.
59
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ----------- -----------
<S> <C> <C> <C> <C>
INTERMEDIATE-TERM DEBT SECURITIES:
U.S. Government (26.5%)
U.S. Treasury Note..................... 5.88% 02/15/04 $ 3,500,000 $ 3,438,190
-----------
Agencies/other Governments (18.7%)
FHLMC.................................. 8.00 04/15/03 298,686 300,272
FHLMC.................................. 8.00 07/15/06 187,312 190,180
FHLMC.................................. 6.38 11/15/06 570,169 566,959
FNMA................................... 7.00 11/25/04 82,860 81,022
FNMA................................... 6.50 11/25/05 333,336 327,606
FNMA................................... 7.00 04/25/07 600,000 595,500
New York City.......................... 9.50 06/01/09 350,000 372,637
-----------
2,434,176
-----------
Consumer, Cyclical (7.2%)
Tommy Hilfiger USA, Inc................ 6.50 06/01/03 500,000 474,155
Venator Group, Inc..................... 7.00 10/15/02 500,000 455,000
-----------
929,155
-----------
Consumer, Non-Cyclical (3.7%)
Bausch & Lomb, Inc. ................... 6.38 08/01/03 250,000 242,247
Bausch & Lomb, Inc. ................... 6.75 12/15/04 250,000 239,453
-----------
481,700
-----------
Financial (23.0%)
Bear Stearns Cos., Inc................. 9.38 06/01/01 250,000 257,412
Bear Stearns Cos., Inc................. 6.63 10/01/04 500,000 479,560
Freemont Gen Corp...................... 7.70 03/17/04 250,000 216,405
Harleysville Group Inc................. 6.75 11/15/03 250,000 241,190
Nationwide Health Properties........... 7.90 11/20/06 250,000 216,255
Nationwide Health Properties........... 7.60 11/20/28 350,000 339,020
Rank Group Financial................... 6.75 11/30/04 500,000 462,945
Salomon Smith Barney Hldgs............. 6.50 10/15/02 500,000 492,685
Trinet Corp. Rlty. Trust, Inc.......... 6.75 03/01/03 300,000 277,524
-----------
2,982,996
-----------
Industrial (12.7%)
Airborne Freight Corp.................. 8.88 12/15/02 250,000 252,098
Crown Cork & Seal, Inc. ............... 6.75 04/15/03 500,000 484,725
Thermo Electron Corp................... 4.25 01/01/03 500,000 421,875
Williams Cos., Inc..................... 6.50 11/15/02 500,000 488,000
-----------
1,646,698
-----------
Utilities (3.8%)
Constellation Energy Group............. 6.13 07/01/03 250,000 243,155
Public Svc. Electric & Gas Co.......... 7.88 11/01/01 250,000 253,055
-----------
496,210
-----------
Total Intermediate-Term Debt Securities
(Cost $12,892,564) 95.6%............... 12,409,125
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- -------- -----------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper (4.4%)
UBS Finance (Delw.) Inc................... 4.00% 01/03/00 $575,000 $ 574,872
-----------
Total Short-Term Debt Securities (Cost: $574,872) 4.4%............ 574,872
-----------
Total Investments
(Cost: $13,467,436) 100.0%....................................... $12,983,997
===========
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------ ------------
<S> <C> <C>
COMMON STOCKS:
Basic Materials (1.7%)
Alcan Aluminum Ltd. ...................................... 30,000 $ 1,235,625
ALCOA, Inc. .............................................. 32,600 2,705,800
International Paper Co. .................................. 21,800 1,230,337
Potlatch Corp. ........................................... 18,800 838,950
------------
6,010,712
------------
Consumer, Cyclical (12.7%)
America Online, Inc.*..................................... 36,600 2,761,012
Bed Bath & Beyond, Inc.*.................................. 35,400 1,230,150
Circuit City Group........................................ 23,000 1,036,437
Clear Channel Communications, Inc.* ...................... 44,200 3,944,850
Corning, Inc. ............................................ 28,200 3,636,037
Gannett Co., Inc. ........................................ 5,100 415,969
General Electric Co. ..................................... 54,100 8,371,975
Home Depot, Inc. ......................................... 38,850 2,663,653
Interpublic Group of Cos., Inc. .......................... 24,400 1,407,575
Knight-Ridder, Inc. ...................................... 6,200 368,900
New York Times Co. Cl A................................... 68,500 3,365,063
Omnicom Group, Inc. ...................................... 34,300 3,430,000
Southwest Airlines Co. ................................... 58,300 943,731
Tandy Corp. .............................................. 40,800 2,006,850
Times Mirror Co. Cl A..................................... 5,500 368,500
Tribune Co. .............................................. 16,500 908,531
Viacom, Inc. Cl B*........................................ 65,300 3,946,569
Wal-Mart Stores, Inc. .................................... 76,100 5,260,413
------------
46,066,215
------------
Consumer, Non-cyclical (7.0%)
Bard (C.R.), Inc. ........................................ 18,200 964,600
Bestfoods................................................. 6,700 352,169
Bristol-Myers Squibb Co. ................................. 36,400 2,336,425
Coca-Cola Co. ............................................ 40,000 2,330,000
Colgate-Palmolive Co. .................................... 16,400 1,066,000
Columbia/HCA Healthcare Corp. ............................ 63,000 1,846,687
General Mills, Inc. ...................................... 9,000 321,750
Johnson & Johnson......................................... 27,000 2,514,375
Kellogg Co. .............................................. 9,900 305,044
Kimberly Clark Corp. ..................................... 31,300 2,042,325
Medtronic, Inc. .......................................... 68,400 2,492,325
Merck & Co., Inc. ........................................ 39,800 2,669,088
Pfizer, Inc. ............................................. 70,000 2,270,625
Proctor & Gamble Co. ..................................... 22,700 2,487,069
Seagram Ltd. ............................................. 20,000 898,750
Sysco Corp. .............................................. 10,300 407,494
------------
25,304,726
------------
Energy (3.5%)
Atlantic Richfield Co. ................................... 10,600 916,900
Chevron Corp. ............................................ 10,900 944,212
Coastal Corp. ............................................ 14,000 496,125
Exxon Mobil Corp. ........................................ 42,900 3,456,131
Halliburton Holdings Co. ................................. 37,000 1,489,250
Royal Dutch Petroleum Co. N.Y. ........................... 36,400 2,199,925
Transocean Sedco Forex, Inc. ............................. 9,544 321,530
Schlumberger, Ltd. ....................................... 49,300 2,773,125
------------
12,597,198
------------
Financial (7.0%)
American Express Co. ..................................... 28,500 4,738,125
American Int'l. Group, Inc. .............................. 25,400 2,746,375
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
Shares Value
------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Financial (Continued)
Bank of New York, Inc. ................................... 30,200 $ 1,208,000
Chase Manhattan Corp. .................................... 36,900 2,866,669
Citigroup, Inc. .......................................... 51,350 2,853,134
FleetBoston Financial Corp. .............................. 46,700 1,625,744
MGIC Investment Corp. .................................... 43,100 2,594,081
State Street Corp. ....................................... 26,200 1,914,238
Suntrust Banks, Inc. ..................................... 32,700 2,250,169
Wells Fargo & Company..................................... 62,100 2,511,169
------------
25,307,704
------------
Industrial (3.2%)
AES Corp.*................................................ 45,500 3,401,125
Applied Materials, Inc.*.................................. 29,400 3,724,612
Illinois Tool Works, Inc. ................................ 10,700 722,919
KLA-Tencor Corp.*......................................... 22,600 2,517,075
Parker-Hannifin Corp. .................................... 21,400 1,098,087
------------
11,463,818
------------
Technology (24.6%)
Alltel Corp. ............................................. 40,400 3,340,575
Amgen, Inc.*.............................................. 65,000 3,904,062
Analog Devices, Inc.*..................................... 18,200 1,692,600
AT&T Corp. ............................................... 59,350 3,012,013
BMC Software, Inc.*....................................... 27,800 2,222,262
Cisco Systems, Inc.*...................................... 56,800 6,084,700
Comcast Corp. Cl A*....................................... 71,400 3,610,162
Dell Computer Corp.*...................................... 54,800 2,794,800
EMC Corp.*................................................ 40,900 4,468,325
Gateway, Inc.*............................................ 40,000 2,882,500
Intel Corp. .............................................. 59,300 4,881,131
International Business Machines Corp. .................... 38,500 4,158,000
Lucent Technologies....................................... 55,500 4,152,094
Micron Technology, Inc.*.................................. 21,300 1,656,075
Microsoft Corp.*.......................................... 94,900 11,079,575
Millipore Corp............................................ 61,900 2,390,888
Network Appliance, Inc.*.................................. 20,000 1,661,250
Nortel Networks Corp...................................... 43,400 4,383,400
Oracle Corp.*............................................. 54,700 6,129,819
Qualcomm, Inc.*........................................... 34,000 5,992,500
Scientific-Atlanta, Inc................................... 20,800 1,157,000
Solectron Corp.*.......................................... 33,800 3,215,225
Sun Microsystems, Inc.*................................... 16,200 1,254,488
Texas Instruments, Inc. .................................. 31,000 3,003,125
------------
89,126,569
------------
Utilities (4.2%)
Bell Atlantic Corp........................................ 30,500 1,877,656
CenturyTel, Inc. ......................................... 32,800 1,553,900
Eastern Enterprises....................................... 11,700 672,019
El Paso Energy Corp. ..................................... 14,500 562,781
Global Crossing Ltd.*..................................... 36,300 1,815,000
MCI WorldCom, Inc.*....................................... 44,400 2,355,975
Nextel Communications, Inc.*.............................. 34,700 3,578,438
SBC Communications, Inc................................... 60,700 2,959,125
------------
15,374,894
------------
Total Common Stocks
(Cost: $168,593,139) 63.9%....................................... 231,251,836
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
----- -------- ------------ ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
Agencies/Other Governments (12.9%)
Connecticut Housing Fin. Auth....... 7.63% 05/15/21 $ 1,000,000 $ 950,020
FHLB................................ 0.00 07/07/17 25,000,000 5,937,500
FHLB................................ 0.00 07/14/17 25,000,000 5,929,750
FHLMC............................... 8.00 07/15/06 187,312 190,180
FHLMC............................... 7.63 09/09/09 2,500,000 2,469,150
FNMA................................ 7.00 11/25/05 844,212 842,101
FNMA................................ 6.65 01/25/17 75,154 74,825
FNMA................................ 10.00 07/13/17 100,000,00 23,719,000
FNMA................................ 6.50 07/25/20 412,274 410,213
New York City....................... 0.00 08/01/05 500,000 541,609
New York City....................... 9.50 06/01/09 2,000,000 2,129,352
Republic of Iceland................. 6.13 02/01/04 2,500,000 2,387,900
Suffolk County, New York............ 5.80 11/01/04 250,000 244,630
Suffolk County, New York............ 5.88 11/01/05 750,000 730,286
------------
46,556,516
------------
Basic Materials (3.1%)
Arco Chemical Co. .................. 10.25 11/01/10 2,500,000 2,468,575
Georgia-Pacific Group............... 8.63 04/30/25 2,000,000 1,962,820
Inco Ltd. .......................... 9.60 06/15/22 2,500,000 2,422,175
Millennium America Inc. ............ 7.63 11/15/26 2,500,000 2,079,200
Praxair, Inc. ...................... 6.90 11/01/06 2,500,000 2,362,050
------------
11,294,820
------------
Consumer, Cyclical (3.6%)
Centex Corp. ....................... 7.38 06/01/05 2,000,000 1,904,780
Fruit of the Loom, Inc. ............ 7.00 03/15/11 1,000,000 225,000
Fruit of the Loom, Inc. ............ 7.38 11/15/23 500,000 172,500
Gannett Co., Inc. .................. 5.85 05/01/00 1,000,000 999,110
Neiman-Marcus Group, Inc. .......... 7.13 06/01/28 2,500,000 2,054,975
Polaroid Corp. ..................... 7.25 01/15/07 1,000,000 852,460
Pulte Corp. ........................ 7.63 10/15/17 2,500,000 2,130,250
Shopko Stores, Inc. ................ 9.00 11/15/04 1,000,000 1,042,110
Tommy Hilfiger USA, Inc. ........... 6.50 06/01/03 2,850,000 2,702,683
Venator Group, Inc. ................ 7.00 10/15/02 1,000,000 910,000
------------
12,993,868
------------
Consumer, Non-Cyclical (3.4%)
Aventis............................. 7.75 01/15/02 1,000,000 1,000,310
Bausch & Lomb, Inc. ................ 6.38 08/01/03 2,500,000 2,422,475
Bausch & Lomb, Inc. ................ 6.75 12/15/04 2,500,000 2,394,525
Kellwood Co. ....................... 7.88 07/15/09 2,500,000 2,279,550
Ralston Purina Co. ................. 8.63 02/15/22 2,500,000 2,511,150
Supervalu, Inc. .................... 8.88 11/15/22 1,500,000 1,576,815
------------
12,184,825
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
----- -------- ------------ ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES
(Continued):
Energy (2.0%)
Southern Union Co. ................ 7.60% 02/01/24 $ 5,000,000 $ 4,664,800
Tosco Corp. ....................... 8.25 05/15/03 2,500,000 2,545,625
------------
7,210,425
------------
Financial (5.1%)
Berkley (W.R.) Corp. .............. 8.70 01/01/22 1,500,000 1,471,620
Chase Manhattan Corp. ............. 6.88 12/12/12 2,500,000 2,408,525
Executive Risk, Inc. .............. 7.13 12/15/07 1,000,000 960,970
Fairfax Financial Holdings, Ltd. .. 8.25 10/01/15 500,000 440,440
First American Financial........... 7.55 04/01/28 2,250,000 1,928,970
Freemont General Corp. ............ 7.70 03/17/04 1,500,000 1,298,430
Harleysville Group Inc. ........... 6.75 11/15/03 1,000,000 964,760
Lehman Brothers Holdings, Inc. .... 0.00 07/28/28 3,250,000 286,683
Morgan (J.P.) & Co., Inc. ......... 0.00 04/15/27 10,000,000 964,500
Nationwide Health Properties....... 7.90 11/20/06 5,000,000 4,325,100
Progressive Corp. of Ohio.......... 10.00 12/15/00 500,000 513,725
Prudential Home Mtge. Secs. Co. ... 6.75 08/25/08 127,860 127,220
SunAmerica, Inc. .................. 9.95 02/01/12 2,000,000 2,368,280
Vesta Insurance Group, Inc. ....... 8.75 07/15/25 1,000,000 651,080
------------
18,710,303
------------
Industrial (1.9%)
Clark Equipment Co. ............... 8.35 05/15/23 1,500,000 1,546,500
Geon Co. .......................... 7.50 12/15/15 1,000,000 911,060
Owens Corning...................... 7.00 03/15/09 1,500,000 1,319,955
Thermo Electron Corp. ............. 4.25 01/01/03 2,500,000 2,109,375
Williams Cos., Inc. ............... 6.50 11/15/02 1,000,000 976,000
------------
6,862,890
------------
Utilities (1.6%)
Central Telephone Co. ............. 9.28 11/27/00 1,000,000 1,023,580
New Orleans Public Service......... 8.00 03/01/06 1,000,000 1,006,770
Pacific Gas & Electric Co. ........ 8.75 01/01/01 1,000,000 1,018,260
UtiliCorp United, Inc. ............ 8.00 03/01/23 3,000,000 2,932,890
------------
5,981,500
------------
Total Long-Term Debt Securities
(Cost: $130,349,543) 33.6%...................................... 121,795,147
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Commercial Paper: (2.5%)
Exxon Asset Management Corp............ 6.27% 01/05/00 $3,646,000 $ 3,643,458
Panasonic Finance, Inc................. 2.45 01/04/00 3,425,000 3,424,301
UBS Finance (Delw.) Inc................ 4.00 01/03/00 1,928,000 1,927,571
------------
Total Short-Term Debt Securities
(Cost: $8,995,330) (2.5%)....................................... 8,995,330
------------
Total Investments
(Cost: $307,938,012)............................................ $362,042,313
============
</TABLE>
- -------
Abbreviations: FHLB = Federal Home Loan Bank
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
65
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
COMMON STOCKS:
Consumer, Cyclical (17.7%)
Ann Taylor Stores Corp.*................................. 56,000 $ 1,928,500
BJ's Wholesale Club, Inc.*............................... 75,000 2,737,500
Cheesecake Factory, Inc.*................................ 69,900 2,446,500
Citadel Communications, Corp.*........................... 52,000 3,373,500
Emmis Communications Cl A*............................... 35,000 4,362,421
IBasis, Inc.*............................................ 80,000 2,300,000
International Speedway Cl A.............................. 55,000 2,770,625
Lands End, Inc.*......................................... 50,000 1,737,500
NTL Incorporated*........................................ 30,000 3,742,500
Photronics, Inc.*........................................ 110,000 3,148,750
Radio One, Inc. Cl A*.................................... 48,000 4,416,000
Trex, Inc.*.............................................. 80,000 2,140,000
True North Communications, Inc. ......................... 70,000 3,128,125
Tiffany & Co. ........................................... 37,800 3,373,650
Westwood One, Inc.*...................................... 52,000 3,952,000
Young & Rubicam, Inc. ................................... 50,000 3,537,500
------------
49,095,071
------------
Consumer, Non-cyclical (4.0%)
IDEC Pharmaceuticals Corp.*.............................. 20,000 1,965,000
Medimmune, Inc.*......................................... 13,000 2,156,375
Minimed, Inc.*........................................... 22,000 1,611,500
Progenics Pharmaceuticals, Inc.*......................... 59,300 2,898,287
Shire Parmaceuticals Group Plc*.......................... 85,000 2,475,625
------------
11,106,787
------------
Energy (5.6%)
Barrett Resources Corp.*................................. 38,000 1,118,625
Basin Exploration, Inc.*................................. 50,000 881,250
Devon Energy Corp. ...................................... 58,200 1,913,325
Forest Oil Corp.*........................................ 150,000 1,978,125
Nabors Industries, Inc.*................................. 65,000 2,010,937
Newfield Exploration Company*............................ 81,000 2,166,750
Nuevo Energy Co.*........................................ 105,000 1,968,750
Pride International, Inc.*............................... 150,000 2,193,750
Weatherford International, Inc.*......................... 37,000 1,477,687
------------
15,709,199
------------
Financial (6.2%)
Arden Realty Group....................................... 75,000 1,504,687
Boston Properties Inc. .................................. 55,000 1,711,875
Compass Bancshares, Inc. ................................ 58,000 1,294,125
Cullen Frost Bankers, Inc. .............................. 80,000 2,060,000
Equity Res. Pptys. Tr. Co. .............................. 45,400 1,938,013
Kimco Realty Corp. ...................................... 45,000 1,524,375
Mack-Cali Realty Corp. .................................. 58,000 1,511,625
SL Green Realty Corp. ................................... 102,200 2,222,850
Spieker Properties., Inc. ............................... 50,000 1,821,875
Vornado Realty Trust..................................... 50,000 1,625,000
------------
17,214,425
------------
Industrial (18.2%)
Bindview Development Corp.*.............................. 68,000 3,378,750
Celgene Corp.*........................................... 22,000 1,540,000
</TABLE>
- -------
* Non-income producing security
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Consumer, Cyclical (Continued)
Concord EFS, Inc. ....................................... 97,500 $ 2,510,625
CSG Systems Intl., Inc.*................................. 60,000 2,392,500
Dendrite International, Inc.*............................ 97,500 3,302,813
Dycom Industries, Inc.*.................................. 70,000 3,084,375
eBenx, Inc.*............................................. 95,000 4,298,750
Exar Corp.*.............................................. 62,000 3,650,250
Forward Air Corporation*................................. 104,400 4,528,350
Hooper Holmes, Inc. ..................................... 110,000 2,832,500
MKS Instruments, Inc.*................................... 90,000 3,251,250
PFSweb, Inc.*............................................ 55,000 2,062,500
PRI Automation, Inc.*.................................... 67,000 4,497,375
Semtech Corp.*........................................... 65,000 3,388,125
Spartech Corp. .......................................... 80,000 2,580,000
Veeco Instruments, Inc.*................................. 72,000 3,370,500
------------
50,668,663
------------
Technology (37.6%)
Applied Micro Circuits, Corp.*........................... 44,200 5,624,450
Aspect Development, Inc.*................................ 55,000 3,767,500
Atmel Corp.*............................................. 114,000 3,370,125
CDW Computers Centers, Inc.*............................. 54,000 4,245,750
Cypress Semiconductor Corp. ............................. 115,000 3,723,125
Cytyc Corporation*....................................... 60,000 3,663,750
Documentum, Inc.*........................................ 70,000 4,191,250
Integrated Device Tech., Inc.*........................... 125,000 3,625,000
Legato Systems, Inc.*.................................... 86,300 5,938,518
Linear Technology Corp................................... 49,000 3,506,562
Maxim Integrated Products, Inc.*......................... 86,000 4,058,125
Medicalogic, Inc.*....................................... 35,000 735,000
Mercury Interactive Corp.*............................... 45,000 4,857,187
Millipore Corp. ......................................... 80,000 3,090,000
Mission Critical Software, Inc.*......................... 64,000 4,480,000
National Instruments Corp.*.............................. 150,000 5,737,500
Networks Associates, Inc.*............................... 127,000 3,389,312
Novellus Systems, Inc.*.................................. 54,000 6,616,690
Peregrine Systems, Inc.*................................. 80,000 6,735,000
Quest Software, Inc.*.................................... 52,300 5,334,600
RSA Security, Inc.*...................................... 60,000 4,650,000
Verity Inc.*............................................. 57,000 2,426,062
Visual Networks, Inc.*................................... 70,000 5,547,500
Xilinx, Inc.*............................................ 116,000 5,274,380
------------
104,587,386
------------
Utilities (7.1%)
Montana Pwr. Co. ........................................ 60,000 2,163,750
Price Communications Corp.*.............................. 108,535 3,018,629
Rural Cellular Corp. Cl A*............................... 75,000 6,787,500
Voicestream Wireless Corp.*.............................. 31,300 4,454,381
Western Wireless Corp. Cl A*............................. 49,000 3,270,750
------------
19,695,010
------------
Total Common Stocks
(Cost: $177,301,179) 96.4%....................................... 268,076,541
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
66
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ---------- ------------
<S> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
Agency (1.2%)
Federal Home Loan Bank................. 4.00% 01/05/00 $3,390,000 $ 3,388,493
------------
Commercial Paper (2.4%)
General Electric Capital Corp.......... 6.52 01/18/00 715,000 712,795
UBS Finance (Delw.) Inc................ 4.00 01/03/00 5,870,000 5,868,695
------------
6,581,490
------------
Total Short-Term Debt Securities
(Cost: $9,969,983) 3.6%......................................... 9,969,983
------------
Total Investments
(Cost: $187,271,162) 100.0%..................................... $278,046,524
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
67
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
<TABLE>
<CAPTION>
Mid-Cap
Money Market All America Equity Index Equity Index Bond
Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments at market
value
(Cost:
Money Market Fund --
$73,577,397
All America Fund --
$453,350,896
Equity Index Fund --
$380,440,931
Mid-Cap Equity Index Fund --
$32,076,600
Bond Fund --
$485,618,211)
(Notes 1 and 3)........ $73,577,397 $885,432,666 $582,744,344 $33,907,069 $458,624,224
Cash.................... 3,059 1,448,086 4,520 5,022 627
Interest and dividends
receivable............. -- 729,376 520,910 20,449 7,651,827
Receivable for
securities sold........ -- 1,118,055 1,940 16,794 15,643
----------- ------------ ------------ ----------- ------------
Total Assets............ 73,580,456 888,728,183 583,271,714 33,949,334 466,292,321
Payable for securities
purchased.............. -- 3,084,677 2,450 2,200 --
----------- ------------ ------------ ----------- ------------
Net Assets.............. $73,580,456 $885,643,506 $583,269,264 $33,947,134 $466,292,321
=========== ============ ============ =========== ============
Number of Shares
Outstanding (Note 4)... 62,006,561 262,964,326 202,461,950 30,624,655 359,474,812
=========== ============ ============ =========== ============
Net Asset Values,
offering and
redemption price per
share.................. $1.19 $3.37 $2.88 $1.11 $1.30
===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Short-Term Mid-Term Composite Aggressive Equity
Bond Fund Bond Fund Fund Fund
----------- ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Assets:
Investments at market
value
(Cost:
Short-Term Bond Fund --
$12,339,372
Mid-Term Bond Fund --
$13,467,436
Composite Fund --
$307,938,012
Aggressive Equity
Fund -- $187,271,162)
(Notes 1 and 3)........ $12,233,214 $12,983,997 $362,042,313 $278,046,524
Cash.................... 1,781 1,898 2,417 9,478
Interest and dividends
receivable............. 81,384 197,688 1,812,538 211,880
Receivable for
securities sold........ 23,803 -- -- --
----------- ----------- ------------ ------------
Total Assets............ 12,340,182 13,183,583 363,857,268 278,267,882
Payable for securities
purchased.............. -- -- -- --
----------- ----------- ------------ ------------
Net Assets.............. $12,340,182 $13,183,583 $363,857,268 $278,267,882
=========== =========== ============ ============
Number of Shares
Outstanding (Note 4)... 12,432,168 15,216,140 190,970,810 128,747,734
=========== =========== ============ ============
Net Asset Values,
offering and redemption
price per share........ $0.99 $0.87 $1.91 $2.16
===== ===== ===== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
68
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
<TABLE>
<CAPTION>
Mid-Cap
Money Market All America Equity Index Equity Index
Fund Fund Fund Fund*
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends................. $ -- $ 8,697,430 $ 6,277,262 $ 159,226
Interest.................. 3,568,525 944,641 1,137,790 135,633
---------- ------------ ----------- ----------
Total income............... 3,568,525 9,642,071 7,415,052 294,859
---------- ------------ ----------- ----------
Expenses:
Investment advisory fees
(Note 2)................. 171,989 3,926,185 635,398 18,878
---------- ------------ ----------- ----------
Net Investment Income...... 3,396,536 5,715,886 6,779,654 275,981
---------- ------------ ----------- ----------
Net Realized and Unrealized
Gain
(Loss) on Investments
(Note 1):
Net realized gain (loss) on
investments............... (3,777) 77,162,086 9,635,146 722,209
Net unrealized appreciation
(depreciation) of
investments............... -- 102,305,846 79,320,773 1,830,469
---------- ------------ ----------- ----------
Net Realized and Unrealized
Gain (Loss) on
Investments............... (3,777) 179,467,932 88,955,919 2,552,678
---------- ------------ ----------- ----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations................ $3,392,759 $185,183,818 $95,735,573 $2,828,659
========== ============ =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Bond Short-Term Mid-Term Composite Aggressive Equity
Fund Bond Fund Bond Fund Fund Fund
------------ ---------- --------- ----------- -----------------
<S> <C> <C> <C> <C> <C>
Investment Income and
Expenses:
Income:
Dividends.............. $ -- $ -- $ -- $ 2,190,802 $ 1,273,286
Interest............... 35,082,080 1,017,505 862,963 10,516,980 473,988
------------ ---------- --------- ----------- -----------
Total income............ 35,082,080 1,017,505 862,963 12,707,782 1,747,274
------------ ---------- --------- ----------- -----------
Expenses:
Investment advisory
fees (Note 2)......... 2,304,779 84,855 68,963 1,705,660 1,732,320
------------ ---------- --------- ----------- -----------
Net Investment Income... 32,777,301 932,650 794,000 11,002,122 14,954
------------ ---------- --------- ----------- -----------
Net Realized and
Unrealized Gain
(Loss) on Investments:
Net realized gain (loss)
on investments......... (732,183) (79,368) 2,624 16,247,481 21,546,315
Net unrealized
appreciation
(depreciation) of
investments............ (40,950,914) (141,958) (606,489) 21,612,218 59,604,813
------------ ---------- --------- ----------- -----------
Net Realized and
Unrealized Gain
(Loss) on Investments.. (41,683,097) (221,326) (603,865) 37,859,699 81,151,128
------------ ---------- --------- ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ (8,905,796) $ 711,324 $ 190,135 $48,861,821 $81,166,082
============ ========== ========= =========== ===========
</TABLE>
- -------
* Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
69
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
<TABLE>
<CAPTION>
Money Market Fund All America Fund Equity Index Fund
------------------------ -------------------------- ---------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 3,396,536 $ 3,644,306 $ 5,715,886 $ 6,005,853 $ 6,779,654 $ 5,167,556
Net realized gain
(loss) on investments. (3,777) (1,091) 77,162,086 75,028,110 9,635,146 4,309,294
Unrealized appreciation
(depreciation) of
investments........... -- -- 102,305,846 51,132,012 79,320,773 72,664,856
----------- ----------- ------------ ------------ ------------- ------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ 3,392,759 3,643,215 185,183,818 132,165,975 95,735,573 82,141,706
----------- ----------- ------------ ------------ ------------- ------------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 77,687,366 49,564,634 83,233,506 8,745,724 225,737,689 111,027,460
Dividends reinvested... 3,399,058 3,649,927 66,717,511 87,022,298 15,035,198 31,568,403
Cost of shares
redeemed.............. (88,269,347) (39,940,229) (115,122,933) (108,090,679) (148,970,349) (19,365,681)
Dividend distributions. (3,399,058) (3,649,927) (66,717,511) (87,022,298) (15,035,198) (31,568,403)
----------- ----------- ------------ ------------ ------------- ------------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... (10,581,981) 9,624,405 (31,889,427) (99,344,955) 76,767,340 91,661,779
----------- ----------- ------------ ------------ ------------- ------------
Increase (Decrease) in
Net Assets............. (7,189,222) 13,267,620 153,294,391 32,821,020 172,502,913 173,803,485
Net Assets, Beginning of
Year................... 80,769,678 67,502,058 732,349,115 699,528,095 410,766,351 236,962,866
----------- ----------- ------------ ------------ ------------- ------------
Net Assets, End of Year. $73,580,456 $80,769,678 $885,643,506 $732,349,115 $ 583,269,264 $410,766,351
=========== =========== ============ ============ ============= ============
Components of Net
Assets:
Paid-in capital........ $73,472,727 $80,655,650 $438,886,510 $404,058,426 $ 389,567,592 $297,765,055
Accumulated
undistributed net
investment income
(loss)................ 122,339 124,861 (2,856,016) (368,798) 92,482 25,162
Accumulated
undistributed net
realized gain (loss)
on investments........ (14,610) (10,833) 17,531,242 (1,116,437) (8,694,223) (10,006,505)
Unrealized appreciation
(depreciation) of
investments........... -- -- 432,081,770 329,775,924 202,303,413 122,982,639
----------- ----------- ------------ ------------ ------------- ------------
Net Assets, End of Year. $73,580,456 $80,769,678 $885,643,506 $732,349,115 $ 583,269,264 $410,766,351
=========== =========== ============ ============ ============= ============
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap Equity Short-Term
Index Fund Bond Fund Bond Fund
-------------- --------------------------- ------------------------
1999* 1999 1998 1999 1998
-------------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 275,981 $ 32,777,301 $ 30,222,400 $ 932,650 $ 1,002,162
Net realized gain
(loss) on investments. 722,209 (732,183) 747,807 (79,368) 15,002
Unrealized appreciation
(depreciation) of
investments........... 1,830,469 (40,950,914) (41,522) (141,958) (22,056)
------------ ------------- ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 2,828,659 (8,905,796) 30,928,685 711,324 995,108
------------ ------------- ------------ ----------- -----------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 52,496,765 74,048,382 52,595,906 3,737,066 8,314,584
Dividends reinvested... 270,989 33,494,780 31,972,263 925,610 1,010,825
Cost of shares
redeemed.............. (21,378,290) (64,179,257) (31,900,498) (14,083,396) (1,975,185)
Dividend distributions. (270,989) (33,494,780) (31,972,263) (925,610) (1,010,825)
------------ ------------- ------------ ----------- -----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... 31,118,475 9,869,125 20,695,408 (10,346,330) 6,339,399
------------ ------------- ------------ ----------- -----------
Increase (Decrease) in
Net Assets............. 33,947,134 963,329 51,624,093 (9,635,006) 7,334,507
Net Assets, Beginning of
Period/year............ -- 465,328,992 413,704,899 21,975,188 14,640,681
------------ ------------- ------------ ----------- -----------
Net Assets, End of Year. $ 33,947,134 $ 466,292,321 $465,328,992 $12,340,182 $21,975,188
============ ============= ============ =========== ===========
Components of Net
Assets:
Paid-in capital........ $ 31,389,464 $ 499,614,288 $456,250,383 $12,512,551 $21,933,271
Accumulated
undistributed net
investment income
(loss)................ 4,992 (791,947) (876,674) 20,265 13,225
Accumulated
undistributed net
realized gain (loss)
on investments........ 722,209 (5,536,033) (4,001,644) (86,476) (7,108)
Unrealized appreciation
(depreciation) of
investments........... 1,830,469 (26,993,987) 13,956,927 (106,158) 35,800
------------ ------------- ------------ ----------- -----------
Net Assets, End of Year. $ 33,947,134 $ 466,292,321 $465,328,992 $12,340,182 $21,975,188
============ ============= ============ =========== ===========
</TABLE>
- -------
* Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
70
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
<TABLE>
<CAPTION>
Mid-Term
Bond Fund Composite Fund Aggressive Equity Fund
------------------------ -------------------------- --------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income.. $ 794,000 $ 790,160 $ 11,002,122 $ 11,772,545 $ 14,954 $ 425,336
Net realized gain
(loss) on investments. 2,624 84,974 16,247,481 3,264,030 21,546,315 (23,621,835)
Unrealized appreciation
(depreciation) of
investments........... (606,489) (37,685) 21,612,218 28,079,557 59,604,813 9,581,686
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ 190,135 837,449 48,861,821 43,116,132 81,166,082 (13,614,813)
----------- ----------- ------------ ------------ ------------ ------------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............. 3,463,522 5,884,740 12,591,610 2,920,925 52,349,524 15,703,714
Dividends reinvested... 803,987 805,870 25,503,136 14,045,609 14,891 1,800,942
Cost of shares
redeemed.............. (5,900,378) (5,938,423) (33,797,510) (14,612,177) (60,660,553) (84,056,916)
Dividend distributions. (803,987) (805,870) (25,503,136) (14,045,609) (14,891) (1,800,942)
----------- ----------- ------------ ------------ ------------ ------------
Net Increase (Decrease)
in Net Assets from
Capital Share
Transactions........... (2,436,856) (53,683) (21,205,900) (11,691,252) (8,311,029) (68,353,202)
----------- ----------- ------------ ------------ ------------ ------------
Increase (Decrease) in
Net Assets............. (2,246,721) 783,766 27,655,921 31,424,880 72,855,053 (81,968,015)
Net Assets, Beginning of
Year................... 15,430,304 14,646,538 336,201,347 304,776,467 205,412,829 287,380,844
----------- ----------- ------------ ------------ ------------ ------------
Net Assets, End of Year. $13,183,583 $15,430,304 $363,857,268 $336,201,347 $278,267,882 $205,412,829
=========== =========== ============ ============ ============ ============
Components of Net
Assets:
Paid-in capital........ $14,915,000 $16,547,869 $311,439,818 $307,142,582 $189,863,312 $198,159,450
Accumulated
undistributed net
investment income
(loss)................ (64,106) (54,119) 695,713 761,149 (10,389) (10,452)
Accumulated
undistributed net
realized gain (loss)
on investments........ (1,183,872) (1,186,496) (2,382,564) (4,194,467) (2,360,403) (23,906,718)
Unrealized appreciation
(depreciation) of
investments........... (483,439) 123,050 54,104,301 32,492,083 90,775,362 31,170,549
----------- ----------- ------------ ------------ ------------ ------------
Net Assets, End of Year. $13,183,583 $15,430,304 $363,857,268 $336,201,347 $278,267,882 $205,412,829
=========== =========== ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
71
<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 five years ended December 31, 1999,
(or since the fund's inception date if in existence less than five years) and
other supplementary data with respect to the funds are presented below.
<TABLE>
<CAPTION>
Money Market Fund
---------------------------------
Years Ended December 31,
---------------------------------
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.......... $1.18 $1.18 $1.19 $1.18 $1.19
----- ----- ----- ----- -----
Income From Investment Operations:
Net Investment Income...................... 0.06 0.06 0.07 0.06 0.07
Net Gains or (Losses) on Securities realized
and unrealized............................. -- -- -- -- --
----- ----- ----- ----- -----
Total From Investment Operations............ 0.06 0.06 0.07 0.06 0.07
----- ----- ----- ----- -----
Less: Dividend Distributions
From Net Investment Income................. (0.05) (0.06) (0.08) (0.05) (0.08)
----- ----- ----- ----- -----
Total Distributions......................... (0.05) (0.06) (0.08) (0.05) (0.08)
----- ----- ----- ----- -----
Net Asset Value, End of Year................ $1.19 $1.18 $1.18 $1.19 $1.18
===== ===== ===== ===== =====
Total Return (%)............................ 5.1 5.4 5.5 5.3 5.8
Net Assets, End of Year ($ millions)........ 74 81 68 78 73
Ratio of Expenses to Average Net Assets (%). 0.25 0.25 0.25 0.25 0.25
Ratio of Net Investment Income to Average
Net Assets (%)............................. 4.93 5.26 5.32 5.21 5.66
Portfolio Turnover Rate(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
72
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
All America Fund
---------------------------------
Years Ended December 31,
---------------------------------
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.......... $2.90 $2.71 $2.44 $2.13 $1.61
----- ----- ----- ----- -----
Income From Investment Operations:
Net Investment Income...................... 0.02 0.03 0.03 0.03 0.03
Net Gains or (Losses) on Securities
realized and unrealized................... 0.72 0.54 0.62 0.41 0.56
----- ----- ----- ----- -----
Total From Investment Operations............ 0.74 0.57 0.65 0.44 0.59
----- ----- ----- ----- -----
Less Dividend Distributions:
From Net Investment Income................. (0.03) (0.03) (0.03) (0.03) (0.03)
From Capital Gains......................... (0.24) (0.35) (0.35) (0.10) (0.04)
----- ----- ----- ----- -----
Total Distributions......................... (0.27) (0.38) (0.38) (0.13) (0.07)
----- ----- ----- ----- -----
Net Asset Value, End of Year................ $3.37 $2.90 $2.71 $2.44 $2.13
===== ===== ===== ===== =====
Total Return (%)............................ 25.8 21.3 26.8 20.7 36.6
Net Assets, End of Year ($ millions)........ 886 732 700 637 533
Ratio of Expenses to Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50
Ratio of Net Investment Income to Average
Net Assets (%)............................. 0.73 0.84 0.98 1.26 1.57
Portfolio Turnover Rate (%)(a).............. 30.03 40.47 28.64 28.35 33.63
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
73
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Mid-Cap Equity
Equity Index Fund Index Fund (b)
--------------------------------- --------------
Years Ended December 31,
-------------------------------------------------
1999 1998 1997 1996 1995 1999
----- ----- ----- ----- ----- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year/Period................. $2.45 $2.08 $1.59 $1.35 $1.02 $1.00
----- ----- ----- ----- ----- -----
Income From Investment
Operations:
Net Investment Income....... 0.03 0.03 0.03 0.03 0.02 0.01
Net Gains or (Losses) on
Securities realized and
unrealized.................. 0.48 0.55 0.50 0.27 0.36 0.11
----- ----- ----- ----- ----- -----
Total From Investment
Operations.................. 0.51 0.58 0.53 0.30 0.38 0.12
----- ----- ----- ----- ----- -----
Less Dividend Distributions:
From Net Investment Income.. (0.03) (0.03) (0.03) (0.03) (0.03) (0.01)
From Capital Gains.......... (0.05) (0.17) (0.01) (0.03) (0.02) --
----- ----- ----- ----- ----- -----
Total Distributions.......... (0.08) (0.20) (0.04) (0.06) (0.05) (0.01)
----- ----- ----- ----- ----- -----
Net Asset Value, End of Year. $2.88 $2.45 $2.08 $1.59 $1.35 $1.11
===== ===== ===== ===== ===== =====
Total Return (%)............. 20.6 28.6 33.1 22.7 36.6 11.8
Net Assets, End of Year ($
millions)................... 583 411 237 102 43 34
Ratio of Expenses to Average
Net Assets (%).............. 0.13 0.13 0.13 0.13 0.13 0.13 (a)
Ratio of Net Investment
Income to Average Net Assets
(%)......................... 1.34 1.57 1.86 2.19 2.50 1.70 (a)
Portfolio Turnover Rate
(%)(c)...................... 6.89 11.68 14.17 5.85 13.99 31.67
</TABLE>
- -------
(a) Annualized.
(b) Commenced operations May 3, 1999.
(c) Portfolio turnover rate excludes all short-term securities.
74
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Bond Fund
---------------------------------
Years Ended December 31,
---------------------------------
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.......... $1.42 $1.43 $1.38 $1.43 $1.27
----- ----- ----- ----- -----
Income From Investment Operations:
Net Investment Income...................... 0.10 0.10 0.09 0.09 0.09
Net Gains or (Losses) on Securities realized
and unrealized............................. (0.12) -- 0.06 (0.04) 0.16
----- ----- ----- ----- -----
Total From Investment Operations............ (0.02) 0.10 0.15 0.05 0.25
----- ----- ----- ----- -----
Less Dividend Distributions:
From Net Investment Income................. (0.10) (0.10) (0.09) (0.09) (0.09)
From Capital Gains......................... -- (0.01) (0.01) (0.01) --
----- ----- ----- ----- -----
Total Distributions......................... (0.10) (0.11) (0.10) (0.10) (0.09)
----- ----- ----- ----- -----
Net Asset Value, End of Year................ $1.30 $1.42 $1.43 $1.38 $1.43
===== ===== ===== ===== =====
Total Return (%)............................ (1.9) 7.2 10.4 3.5 19.4
Net Assets, End of Year ($ millions)........ 466 465 414 329 311
Ratio of Expenses to Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50
Ratio of Net Investment Income to Average
Net Assets (%)............................. 7.11 6.73 6.69 6.70 6.64
Portfolio Turnover Rate (%)(a).............. 29.32 21.60 57.71 30.14 41.93
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
75
<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,
---------------------------------- -----------------------------------
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
----- ----- ----- ----- ------ ------ ----- ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.03 $1.02 $1.03 $1.02 $ 1.00 $ 0.91 $0.90 $ 0.90 $ 1.00 $0.91
----- ----- ----- ----- ------ ------ ----- ------ ------ -----
Income From Investment
Operations:
Net Investment Income.. 0.09 0.05 0.07 0.04 0.06 0.05 0.05 0.05 0.14 0.06
Net Gains or (Losses) on
Securities realized and
unrealized............. (0.04) 0.01 (0.01) 0.01 0.02 (0.04) 0.01 0.01 (0.10) 0.09
----- ----- ----- ----- ------ ------ ----- ------ ------ -----
Total From Investment
Operations............. 0.05 0.06 0.06 0.05 0.08 0.01 0.06 0.06 0.04 0.15
----- ----- ----- ----- ------ ------ ----- ------ ------ -----
Less Dividend
Distributions:
From Net Investment
Income................ (0.09) (0.05) (0.07) (0.04) (0.06) (0.05) (0.05) (0.06) (0.14) (0.06)
From Capital Gains..... -- -- -- -- -- -- -- -- -- --
----- ----- ----- ----- ------ ------ ----- ------ ------ -----
Total Distributions..... (0.09) (0.05) (0.07) (0.04) (0.06) (0.05) (0.05) (0.06) (0.14) (0.06)
----- ----- ----- ----- ------ ------ ----- ------ ------ -----
Net Asset Value, End of
Year................... $0.99 $1.03 $1.02 $1.03 $ 1.02 $ 0.87 $0.91 $ 0.90 $ 0.90 $1.00
===== ===== ===== ===== ====== ====== ===== ====== ====== =====
Total Return (%)........ 4.2 5.7 6.0 4.9 7.7 1.4 6.4 7.3 3.9 16.3
Net Assets, End of Year
($ millions)........... 12 22 15 16 3 13 15 15 13 24
Ratio of Expenses to
Average Net Assets (%). 0.50 0.50 0.50 0.50 0.48 0.50 0.50 0.50 0.50 0.50
Ratio of Net Investment
Income to Average Net
Assets (%)............. 5.48 5.46 5.81 5.42 4.65 5.75 5.76 5.87 5.80 5.73
Portfolio Turnover Rate
(%)(a)................. 44.68 91.35 74.95 6.68 16.47 10.28 23.0 12.89 144.55 73.72
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
76
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Composite Fund Aggressive Equity Fund
--------------------------------- ------------------------------------
Years Ended December 31, Years Ended December 31,
--------------------------------- ------------------------------------
1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
----- ----- ------ ----- ----- ------ ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $1.78 $1.62 $ 1.77 $1.81 $1.57 $ 1.51 $ 1.61 $1.47 $ 1.35 $1.05
----- ----- ------ ----- ----- ------ ------ ----- ------ ------
Income From Investment
Operations:
Net Investment Income.. 0.06 0.07 0.07 0.07 0.08 -- -- 0.01 0.01 0.01
Net Gains or (Losses) on
Securities realized and
unrealized............. 0.21 0.17 0.24 0.14 0.27 0.65 (0.09) 0.31 0.36 0.39
----- ----- ------ ----- ----- ------ ------ ----- ------ ------
Total From Investment
Operations............. 0.27 0.24 0.31 0.21 0.35 0.65 (0.09) 0.32 0.37 0.40
----- ----- ------ ----- ----- ------ ------ ----- ------ ------
Less Dividend
Distributions:
From Net Investment
Income................ (0.06) (0.07) (0.07) (0.08) (0.08) -- -- (0.01) (0.01) (0.01)
From Capital Gains..... (0.08) (0.01) (0.39) (0.17) (0.03) -- (0.01) (0.17) (0.24) (0.09)
----- ----- ------ ----- ----- ------ ------ ----- ------ ------
Total Distributions..... (0.14) (0.08) (0.46) (0.25) (0.11) -- (0.01) (0.18) (0.25) (0.10)
----- ----- ------ ----- ----- ------ ------ ----- ------ ------
Net Asset Value, End of
Year................... $1.91 $1.78 $ 1.62 $1.77 $1.81 $ 2.16 $ 1.51 $1.61 $ 1.47 $1.35
===== ===== ====== ===== ===== ====== ====== ===== ====== ======
Total Return (%)........ 15.2 14.5 17.7 11.9 21.9 43.3 (5.1) 21.2 27.1 38.2
Net Assets, End of Year
($ millions)........... 364 336 305 283 276 278 205 287 136 59
Ratio of Expenses to
Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.85 0.85 0.85 0.85 0.85
Ratio of Net Investment
Income to Average Net
Assets (%)............. 3.23 3.68 3.57 3.63 4.30 0.01 0.18 0.33 0.45 0.65
Portfolio Turnover Rate
(%)(a)................. 99.41 73.85 104.04 69.79 76.84 134.62 144.05 80.94 103.68 116.52
</TABLE>
- -------
(a) Portfolio turnover rate excludes all short-term securities.
77
<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 nine Funds: the Money
Market Fund, the All America Fund, the Equity Index Fund, the Mid-Cap Equity
Index Fund, (commenced operations on May 3, 1999) the Bond Fund, the Short-
Term Bond Fund, the Mid-Term Bond Fund, the Composite Fund, and the Aggressive
Equity Fund.
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, 1999, Mutual of America Life owned 97%, and,
American Life 3%, of the Investment Company's aggregate outstanding shares.
The following is a summary of the significant accounting policies of the
Investment Company:
Security Valuation -- Investment securities are valued as follows:
Stocks listed on national security exchanges and certain over-the-counter
issues quoted on the National Association of Securities Dealers Automated
Quotation ("NASDAQ") system are valued at the last sale price, or, if no
sale, at the latest available bid price.
Debt securities are valued at a composite fair market value "evaluated
bid," which may be the last sale price. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith by the Investment Adviser under the direction of
the Board of Directors of the Investment Company.
Short-term investments with a maturity of 60 days or less are valued at
amortized cost, which approximates market value. Short-term debt
securities, which mature in more than 60 days, are stated at market value.
Equity-type funds with an indexed portfolio component may, in order to
remain more fully invested in the equity markets while minimizing
transaction costs, purchase stock index futures contracts. Initial cash
margin deposits (represented by cash or Treasury bills) are made upon
entering into futures contracts. (This initial margin, maintained in a
segregated account, is equal to approximately 5% of the contract amount,
and 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 by "marking-
to-market" on a daily basis to reflect the market value of the contract at
the end of each trading day. Futures contracts are valued at the settlement
price established each day by the exchange on which traded. Depending upon
whether unrealized gains or losses are incurred, variation margin 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.
78
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (Continued)
1. Significant Accounting Policies and Organization (Continued)
Security Transactions -- Security transactions are recorded on the trade
date. 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.
Investment Income -- 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.
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 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, .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 the Mid-Cap Equity Index Fund, and .85% of
the value of the net assets of the Aggressive Equity Fund.
Under Sub-Advisory Agreements, the Adviser has delegated a portion of its
investment advisory responsibilities for the All America Fund to subadvisers
and pays the subadvisers directly for their investment advisory services. The
Adviser (not the Fund) is responsible for compensation payable under such Sub-
Advisory Agreements.
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.
A Sub-Advisor placed a portion of its portfolio transactions with its
affiliated broker-dealer. Such commissions amounted to $129,800 or 7.3% 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, 1999 was as follows:
<TABLE>
<CAPTION>
Mid-Cap
All America Equity Index Equity Index Bond
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Cost of investment
purchases................. $229,110,708 $127,561,732 $ 35,194,744 $151,628,748
============ ============ ============ ============
Proceeds from sales of
investments............... $274,746,407 $ 33,339,329 $ 6,440,643 $130,571,443
============ ============ ============ ============
<CAPTION>
Short-Term Mid-Term Composite Aggressive
Bond Fund Bond Fund Fund Equity Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Cost of investment
purchases................. $ 7,132,578 $ 3,469,503 $352,144,881 $263,829,753
============ ============ ============ ============
Proceeds from sales of
investments............... $ 17,056,877 $ 1,282,299 $325,906,815 $274,428,281
============ ============ ============ ============
</TABLE>
The cost of short-term security purchases for the Money Market Fund for the
year was $819,561,530. Net proceeds from sales and redemptions for the year
was $830,187,584.
79
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (Continued)
3. Purchases and Sales (Continued)
At December 31, 1999 the net unrealized appreciation (depreciation) of
investments based on cost, which was substantially the same for Federal income
tax purposes, was as follows:
<TABLE>
<CAPTION>
Money Mid-Cap
Market All America Equity Index Equity Bond
Fund Fund Fund Index Fund Fund
---------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Aggregate gross
unrealized
appreciation.......... $ -- $454,871,993 $223,151,446 $ 4,914,278 $ 904,614
Aggregate gross
unrealized
depreciation.......... -- 22,790,223 20,848,033 3,083,809 27,898,601
---------- ------------ ------------ ----------- ------------
Net unrealized
appreciation
(depreciation)........ $ -- $432,081,770 $202,303,413 $ 1,830,469 $(26,993,987)
========== ============ ============ =========== ============
<CAPTION>
Short-Term Mid-Term Composite Aggressive
Bond Fund Bond Fund Fund Equity Fund
---------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Aggregate gross
unrealized
appreciation.......... $ 496 $ 8,302 $ 64,869,458 $99,273,216
Aggregate gross
unrealized
depreciation.......... 106,654 491,741 10,765,157 8,497,854
---------- ------------ ------------ -----------
Net unrealized
appreciation
(depreciation)........ $(106,158) $ (483,439) $ 54,104,301 $90,775,362
========== ============ ============ ===========
</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 nine 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..................................... 275,000,000
Mid-Cap Equity Index Fund............................. 150,000,000
Bond Fund............................................. 425,000,000
Short-Term Bond Fund.................................. 50,000,000
Mid-Term Bond Fund.................................... 75,000,000
Composite Fund........................................ 300,000,000
Aggressive Equity Fund................................ 500,000,000
-------------
Sub-Total........................................... 2,375,000,000
Shares to be allocated at the discretion of the Board
of Directors......................................... 625,000,000
-------------
Total............................................... 3,000,000,000
=============
</TABLE>
Transactions in shares were as follows:
<TABLE>
<CAPTION>
For the Period
May 3, 1999
(Commencement
of Operations) to
For the Year Ended December 31, 1999 December 31, 1999
------------------------------------ -----------------
All
Money Market America Equity Index Mid-Cap
Fund Fund Fund Equity Index Fund
------------ ---------- ------------ -----------------
<S> <C> <C> <C> <C>
Shares issued........... 63,634,312 26,871,914 85,556,238 51,089,629
Shares issued to
shareholders as
reinvestment of
dividends.............. 2,863,402 19,858,138 5,218,940 244,467
---------- ---------- ---------- ----------
Total................... 66,497,714 46,730,052 90,775,178 51,334,096
Shares redeemed......... 72,686,300 36,650,147 55,873,134 20,709,447
---------- ---------- ---------- ----------
Net increase (decrease). (6,188,586) 10,079,905 34,902,044 30,624,649
========== ========== ========== ==========
</TABLE>
80
<PAGE>
MUTUAL OF AMERICA INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS (Continued)
4. Capital Share Activity (Continued)
<TABLE>
<CAPTION>
For the Year Ended December 31, 1999
--------------------------------------------------------
Aggressive
Short-Term Mid-Term Composite Equity
Bond Fund Bond Fund Bond Fund Fund Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Shares issued........... 52,627,528 3,533,532 3,777,841 6,838,024 31,324,123
Shares issued to
shareholders as
reinvestment of
dividends.............. 25,821,845 931,780 927,940 13,403,919 6,890
---------- ---------- ---------- ---------- ----------
Total................... 78,449,373 4,465,312 4,705,781 20,241,943 31,331,013
Shares redeemed......... 45,614,884 13,384,219 6,441,747 18,269,859 38,746,093
---------- ---------- ---------- ---------- ----------
Net increase (decrease). 32,834,489 (8,918,907) (1,735,966) 1,972,084 (7,415,074)
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended December 31, 1998
------------------------------------------------
All
Money Market America Equity Bond
Fund Fund Index Fund Fund
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
Shares issued................ 65,030,676 16,550,567 99,314,538 77,260,563
Shares issued to shareholders
as reinvestment of
dividends................... 3,080,576 30,263,002 13,563,464 22,419,396
---------- ---------- ----------- -----------
Total........................ 68,111,252 46,813,569 112,878,002 99,679,959
Shares redeemed.............. 57,281,015 51,998,029 59,350,065 62,903,436
---------- ---------- ----------- -----------
Net increase (decrease)...... 10,830,237 (5,184,460) 53,527,937 36,776,523
========== ========== =========== ===========
<CAPTION>
For the Year Ended December 31, 1998
------------------------------------------------
Short-Term Mid-Term Composite Aggressive
Bond Fund Bond Fund Fund Equity Fund
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
Shares issued................ 11,305,009 9,542,507 9,518,911 46,769,027
Shares issued to shareholders
as reinvestment of
dividends................... 981,938 884,933 7,895,857 1,397,187
---------- ---------- ----------- -----------
Total........................ 12,286,947 10,427,440 17,414,768 48,166,214
Shares redeemed.............. 5,275,226 9,698,201 16,332,231 90,803,686
---------- ---------- ----------- -----------
Net increase (decrease)...... 7,011,721 729,239 1,082,537 (42,637,472)
========== ========== =========== ===========
</TABLE>
5. Dividends
On December 31, 1999 dividend distributions were declared for each of the
Funds from net realized gains on investment transactions and net investment
income. Additionally, on September 15, 1999 the remaining required
distributions relating to the 1998 Internal Revenue Sec. 855(a) elections were
declared for each of the Funds and paid on September 15, 1999. All dividend
distributions are immediately reinvested in additional shares of each
respective Fund.
<TABLE>
<CAPTION>
Mid-Cap
Money Market All America Equity Equity Index Bond
Fund Fund Index Fund Fund Fund
------------ ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Net investment income... $3,399,058 $ 8,203,104 $ 6,712,334 $ 270,989 $32,692,574
Net realized capital
gains.................. -- 58,514,407 8,322,864 -- 802,206
---------- ----------- ----------- --------- -----------
Total dividends......... $3,399,058 $66,717,511 $15,035,198 $ 270,989 $33,494,780
========== =========== =========== ========= ===========
Dividend amounts per
share.................. $ 0.058 $ 0.273 $ 0.076 $ 0.009 $ 0.100
========== =========== =========== ========= ===========
Increase in number of
shares per Fund........ 2,863,402 19,858,138 5,218,940 244,467 25,821,845
========== =========== =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Short-Term Mid-Term Composite Aggressive
Fund Bond Fund Fund Equity Fund
---------- --------- ----------- -----------
<S> <C> <C> <C> <C>
Net investment income............. $ 925,610 $ 803,987 $11,067,558 $ 14,891
Net realized capital gains........ -- -- 14,435,578 --
--------- --------- ----------- --------
Total dividends................... $ 925,610 $ 803,987 $25,503,136 $ 14,891
========= ========= =========== ========
Dividend amounts per share........ $ 0.088 $ 0.056 $ 0.143 $ 0.000
========= ========= =========== ========
Increase in number of shares per
Fund............................. 931,780 927,940 13,403,919 6,890
========= ========= =========== ========
</TABLE>
81
<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 comprising, respectively, the Money Market, All
America, Equity Index, Bond, Short-Term Bond, Mid-Term Bond, Composite, and
Aggressive Equity Funds as of December 31, 1999, and the related statement of
operations for the year then ended, 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 five years in the period then ended. We have also
audited the statement of assets and liabilities, including the portfolio of
investments in securities, of Mutual of America Investment Corporation
comprising the Mid-Cap Equity Index Fund as of December 31, 1999 and the
related statement of operations, statement of changes in net assets and the
financial highlights for the period May 3, 1999 (commencement of operations)
to December 31, 1999. These financial statements and 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 and financial highlights. Our procedures included
confirmations of securities owned as of December 31, 1999 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, Equity Index, Bond, Short-Term Bond, Mid-Term
Bond, Composite, and Aggressive Equity Funds of Mutual of America Investment
Corporation as of December 31, 1999, the results of their operations for the
year then ended, 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 five
years in the period then ended in conformity with generally accepted
accounting principles. Also, in our opinion, the financial statements and
financial highlights referred to above present fairly, in all material
respects, the financial position of the Mid-Cap Equity Index Fund of Mutual of
America Investment Corporation as of December 31, 1999, and the results of its
operations, changes in net assets and its financial highlights for the period
May 3, 1999 (commencement of operations) to December 31, 1999 in conformity
with generally accepted accounting principles.
Arthur Andersen LLP
New York, New York
February 21, 2000
82
<PAGE>
PART C. OTHER INFORMATION
Item 23. Exhibits
<TABLE>
<C> <S>
1(a) Articles of Incorporation of Mutual of America Investment
Corporation (the "Investment Company") (1)
1(b) Articles of Amendment, dated September 22, 1986 (4)
1(c) Articles Supplementary, dated July 25, 1988 (4)
1(d) Articles Supplementary, dated February 16, 1993 (4)
1(e) Articles Supplementary, dated October 4, 1993 (4)
1(f) Articles Supplementary, dated April 5, 1994 (4)
1(g) Articles Supplementary, dated April 13, 1995 (4)
1(h) Articles Supplementary, dated September 16, 1997 (4)
1(i) Articles Supplementary, dated April 6, 1999 (3)
2(a) By-Laws of the Investment Company (4)
2(b) Revision to Article II, Section 2.2 and Article III, Section 3.4 of
the By-Laws (4)
2(c) Revision to Article III, Section 3.8 of the By-Laws (4)
4(a) Investment Advisory Agreement, between the Investment Company and
Mutual of America Life Insurance Company ("Mutual of America"), as
investment adviser (4)
4(b) Assumption Agreement, between Mutual of America and Mutual of
America Capital Management Corporation (the "Adviser"), as
investment adviser (4)
4(c) Supplement AA to Investment Advisory Agreement, between the
Investment Company and the Adviser (4)
4(d) Supplement AE to Investment Advisory Agreement, between the
Investment Company and the Adviser (4)
4(e) Supplement dated May 1, 1999 to Investment Advisory Agreement,
between the Investment Company and the Adviser (2)
4(f) Subadvisory Agreement, between the Adviser and Fred Alger
Management, Inc. (4)
4(g) Subadvisory Agreement, between the Adviser and Oak Associates (4)
4(h) Subadvisory Agreement, between the Adviser and Palley-Needelman
Asset Management, Inc. (4)
5 Distribution Agreement, between the Investment Company and Mutual of
America, as Distributor (1)
7 Custody Agreement, between the Investment Company and the Chase
Manhattan Bank (4)
9(a) Consent and Opinion of General Counsel for Equity Index, All
America, Agressive Equity, Composite, Bond, Mid-Term Bond, Short-
Term Bond and Money Market Funds, as restated (4)
9(b) Consent and Opinion of General Counsel for Mid-Cap Equity Index Fund
shares (3)
10(a) Consent of Arthur Andersen LLP
10(b) Consent of Swidler Berlin Shereff Friedman LLP
10(c)(i) Powers of Attorney of Ms. Morrissey and Messrs. Altstadt, Flanagan,
Mertz, Needham and Nolan (4)
10(c)(ii) Power of Attorney of Robert J. McGuire (5)
16(a) Code of Ethics of Mutual of America Investment Corporation
16(b) Code of Ethics of Mutual of America Capital Management Corporation
16(c) Code of Ethics of Fred Alger Management, Inc.
16(d) Code of Ethics of Oak Associates, Ltd.
16(e) Code of Ethics of Mutual of America Life Insurance Company
</TABLE>
C-1
<PAGE>
- --------
(1) Included in Post-Effective Amendment No. 11 filed with the
Commission on April 28, 1995
(2) Included in Post-Effective Amendment No. 15 filed with the
Commission on February 12, 1999
(3) Included in Post-Effective Amendment No. 16 filed with the
Commission on April 15, 1999
(4) Included in Post-Effective Amendment No. 17 filed with the
Commission on June 4, 1999
(5) Included in Post-Effective Amendment No. 18 filed with the
Commission on March 2, 2000
Item 26. Business and Other Connections of the Investment Adviser
Mutual of America Capital Management Corporation (the "Adviser") is the
investment adviser to the Investment Company, and is registered as an
investment adviser under the Investment Advisers Act of 1940. The names,
addresses and positions with the Adviser of each Director and officer of the
Adviser is set forth below.
<TABLE>
<CAPTION>
Positions Principal Occupation
Name with Adviser During Past Two Years
---- ------------ ---------------------
<S> <C> <C>
Thomas J. Moran......... Director, Chairman of President, Chief Executive
320 Park Avenue the Board Officer and Director of Mutual of
NY, NY 10022 America Life
F. Harlan Batrus........ Director Partner, Lazard Freres & Co.
30 Rockefeller Plaza
NY, NY 10020
Robert X. Chandler...... Director Director, Development Office,
Director, Development Archdiocese of Boston
Office Archdiocese of
Boston 2121 Commonwealth
Avenue Brighton, MA
02135
Nathaniel A. Davis...... Director Vice President, Network
17680 Old Meadow Rd. Engineering Operations, Nextel
McLean, VA 22102 Communications
Anthony F. Earley....... Director Chairman, President and Chief
Detroit Edison Company Operating Officer, Detroit Edison
2000 Second Avenue Co.
Room 2407 WCB
Detroit, MI 48226
William T. Knowles...... Director Consultant
Orr's Island, ME 04066
Walter A. McDougal...... Director Former Chairman and President,
Garden City, NY 11530 Richmond Hill Savings Bank
Peter J. Powers......... Director President and Chief Executive
1345 Avenue of the Officer, Powers Global Strategies
Americas (strategic planning and
NY, NY 10105 consulting)
James E. Quinn.......... Director Vice Chairman, Tiffany & Co.
757 Fifth Avenue
NY, NY 10022
Richard J. Ciecka....... President, Chief Vice Chairman of the Board,
320 Park Avenue Executive Officer and Mutual of America Life, until
NY, NY 10022 Director October 1998
</TABLE>
C-2
<PAGE>
<TABLE>
<CAPTION>
Positions Principal Occupation
Name with Adviser During Past Two Years
---- ------------ ---------------------
<S> <C> <C>
Manfred Altstadt........ Senior Executive Vice Senior Executive Vice President
320 Park Avenue President and Chief and Chief Financial Officer of
NY, NY 10022 Financial Officer Mutual of America Life and
American Life
Patrick A. Burns........ Senior Executive Vice Senior Executive Vice President
320 Park Avenue President and General and General Counsel of Mutual of
NY, NY 10022 Counsel America Life and American Life
Amir Lear............... Executive Vice President Senior Vice President, Mutual of
320 Park Avenue and Assistant to the America Life, until October 1998
NY, NY 10022 President and Chief
Executive Officer
Andrew L. Heiskell...... Executive Vice President Executive Vice President of the
320 Park Avenue Adviser
NY, NY 10022
Thomas J. Larsen........ Executive Vice President Executive Vice President of the
320 Park Avenue Adviser since June 1998; prior
NY, NY 10022 thereto, Senior Vice President,
Desai Capital Management
Joseph Brunken.......... Senior Vice President Senior Vice President of the
320 Park Avenue Adviser
NY, NY 10022
Mary E. Canning......... Senior Vice President Senior Vice President of the
320 Park Avenue Adviser since May 1999; prior
NY, NY 10022 thereto, Managing
Director/Portfolio Manager,
Phoenix Duff & Phelps
Susan J. Ferber......... Senior Vice President Senior Vice President of the
320 Park Avenue Adviser since May 1999; prior
NY, NY 10022 thereto, Vice President--Business
Development, Argus Investors
Counsel
Stanley M. Lenkowicz.... Senior Vice President, Senior Vice President and Deputy
320 Park Avenue Deputy General Counsel General Counsel, Mutual of
NY, NY 10022 and Secretary America Life and American Life
Nancy McAvey............ Senior Vice President Vice President of the Adviser
320 Park Avenue
NY, NY 10022
Phillip McMahon......... Senior Vice President Vice President of the Adviser
320 Park Avenue until February 2000; prior
NY, NY 10022 thereto, Equity Securities
Analyst
John P. Middleton....... Senior Vice President Senior Vice President of the
320 Park Avenue Adviser since May 1999; prior
NY, NY 10022 thereto, Vice President, Raymond
James & Associates
Paul Travers............ Senior Vice President Senior Vice President of the
320 Park Avenue Adviser
NY, NY 10022
</TABLE>
C-3
<PAGE>
<TABLE>
<CAPTION>
Positions Principal Occupation
Name with Adviser During Past Two Years
---- ------------ ---------------------
<S> <C> <C>
Gary P. Wetterau...... Senior Vice President Vice President of the Adviser
320 Park Avenue
NY, NY 10022
David Wood............ Senior Vice President Senior Vice President of the
320 Park Avenue Adviser
NY, NY 10022
Aline Couture......... Vice President Vice President of the Adviser
320 Park Avenue
NY, NY 10022
Doris Klug............ Vice President Vice President of the Adviser
320 Park Avenue
NY, NY 10022
Robert H. Stewart..... Vice President Vice President of the Adviser
320 Park Avenue
NY, NY 10022
</TABLE>
Each of Oak Associates, Ltd. ("Oak Associates") and Fred Alger Management,
Inc. ("Alger Management") is a subadviser for a portion of the Active Assets
of the All America Fund allocated to it. Each subadviser is registered as an
investment adviser under the Investment Advisers Act of 1940. The names,
addresses and positions of each director and officer of each subadviser are
incorporated by reference to the Form ADV of the subadviser filed with the
Securities and Exchange Commission, as set forth below.
Oak Associates, Ltd., Form ADV, SEC File No. 801-23632.
Fred Alger Management, Inc., Form ADV, SEC File No. 801-06709.
C-4
<PAGE>
Item 27. Principal Underwriters
(a) Mutual of America Life Insurance Company, the principal underwriter of
the Registrant, acts as depositor and principal underwriter of Mutual of
America Separate Account No. 2 and Mutual of America Separate Account No. 3,
and as principal underwriter of The American Separate Account No. 2 and The
American Separate Account No. 3 of The American Life Insurance Company of New
York.
(b) The name, business address and position of each senior officer and
director of Mutual of America are as follows:
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Principal Underwriter
- ------------------ --------------------------
<S> <C>
Directors
Clifford L. Alexander, Director
Jr........................
Washington, D.C.
Patricia A. Cahill........ Director
Denver, Colorado
Roselyn P. Epps, M.D...... Director
Bethesda, Maryland
Dudley H. Hafner.......... Director
Dallas, Texas
Earle H. Harbison, Jr..... Director
St. Louis, Missouri
Frances R. Hesselbein..... Director
New York, New York
William Kahn.............. Director
St. Louis, Missouri
LaSalle D. Leffall, Jr., Director
M.D.......................
Washington, D.C.
Michael A. Pelavin........ Director
Flint, Michigan
Fioravante G. Perrotta.... Director
New York, New York
Francis H. Schott......... Director
New York, New York
O. Stanley Smith, Jr...... Director
Columbia, South Carolina
Sheila M. Smythe.......... Director
Valhalla, New York
Elie Wiesel............... Director
New York, New York
Officers-Directors
William J. Flynn.......... Chairman of the Board
Thomas J. Moran........... President and Chief Executive Officer
Manfred Altstadt.......... Senior Executive Vice President and Chief Financial
Officer
Patrick A. Burns.......... Senior Executive Vice President and General Counsel
Salvatore R. Curiale...... Senior Executive Vice President, Technical
Operations
</TABLE>
C-5
<PAGE>
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Principal Underwriter
------------------ --------------------------
<S> <C>
Other Officers
Diane Aramony............. Senior Vice President, Corporate Secretary and
Assistant to the Chairman
Meyer Baruch.............. Senior Vice President, State Compliance and
Government Regulations
Deborah Swinford Becker... Senior Vice President and Associate General Counsel
Nicholas Branchina........ Senior Vice President and Associate Treasurer
William Breneisen......... Executive Vice President, Office of Technology
Jeremy J. Brown........... Executive Vice President and Chief Actuary
Allen J. Bruckheimer...... Senior Vice President and Associate Treasurer
Patrick Burke............. Senior Vice President, Special Markets
Sean Carroll.............. Senior Vice President, Facilities Management
William Conway............ Executive Vice President, Marketing and Corporate
Communications
William A. DeMilt......... Executive Vice President, Real Estate Management
Warren A. Essner.......... Senior Vice President, Corporate Services
Chris W. Festog........... Senior Vice President and Controller since April
1999; prior thereto, Chief Financial Officer of the
Global Energy Business unit of Zurich Insurance
Company
James Flynn............... Senior Vice President, Marketing
Michael Gallagher......... Senior Vice President, Direct Response and Technical
Boca Raton, FL Communications
Harold J. Gannon.......... Senior Vice President, Corporate Tax
Gordon Gaspard............ Senior Vice President, Technical Services
Robert Giaquinto.......... Senior Vice President, MIS Operations
Boca Raton, Fl
Thomas E. Gilliam......... Executive Vice President and Assistant to the
President and Chief Executive Officer
John R. Greed............. Executive Vice President and Treasurer
Jared Gutman.............. Senior Vice President, Billing and Regulatory
Services/Life and Disability Claims, since February
2000; prior thereto, Vice President
Thomas A. Harwood......... Senior Vice President, Corporate Communications
Sandra Hersko............. Senior Vice President, Technical Administration
Edward J.T. Kenney........ Senior Vice President and Assistant to the President
and Chief Executive Officer
Gregory A. Kleva, Jr...... Executive Vice President and Deputy General Counsel
Robert Kordecki........... Senior Vice President, National Accounts
</TABLE>
C-6
<PAGE>
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Principal Underwriter
------------------ --------------------------
<S> <C>
Stanley M. Lenkowicz....... Senior Vice President and Deputy General Counsel
Daniel LeSaffre............ Senior Vice President, Human Resources and Training
Robert W. Maull............ Senior Vice President and Corporate Actuary
George L. Medlin........... Executive Vice President, Internal Audit
Lynn M. Nadler............. Senior Vice President, Training--Boca Raton
Boca Raton, FL
Roger F. Napoleon.......... Senior Vice President and Associate General Counsel
James Peterson............. Senior Vice President, Training--New York and
Leadership Development
William Rose............... Senior Vice President, Field Operations
Dennis J. Routledge........ Senior Vice President, LAN/Telecommunications
Robert W. Ruane............ Senior Vice President, Corporate Communications and
Direct Response
William G. Shannon......... Senior Vice President, Individual Financial Planning
Walter W. Siegel........... Senior Vice President and Actuary
Joan M. Squires............ Senior Vice President, Business Applications
Anne M. Stanard............ Senior Vice President, Human Resources, since
February 2000, prior thereto, Vice President
Eldon Wonacott............. Senior Vice President, Field Administration
Raymond Yeager............. Senior Vice President, MIS Operations
Boca Raton, FL
</TABLE>
The business address of all officers and directors is 320 Park Avenue, New
York, New York 10022, unless otherwise noted.
C-7
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the registrant certifies that it meets all the
requirements for effectiveness of this post effective amendment to
Registration Statement pursuant to Rule 485(b) under the Securities Act of
1933 and has duly caused this post-effective amendment to its Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of New York, the State of New York, the 26th day of
April, 2000.
Mutual of America Investment
Corporation
/s/ Dolores J. Morrissey
By: _________________________________
Dolores J. Morrissey
President
Pursuant to the requirements of the Securities Act of 1933, this post-
effective amendment to its Registration Statement has been signed below by the
following persons in the capacities indicated on April 26, 2000.
Principal Executive Officer:
/s/ Dolores J. Morrissey
By: _________________________________
Dolores J. Morrissey
President
Principal Financial Officer and Principal Accounting Officer:
/s/ Manfred Altstadt
_____________________________________
Manfred Altstadt
Directors:
/s/ Manfred Altstadt
_____________________________________
Manfred Altstadt
/s/ Dolores J. Morrissey
_____________________________________
Dolores J. Morrissey
*
_____________________________________
Peter J. Flanagan
*
_____________________________________
Robert J. McGuire
*
_____________________________________
George J. Mertz
*
_____________________________________
Howard J. Nolan
/s/ Manfred Altstadt
*By: ________________________________
Attorney-in-fact
C-8
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Page
------- ----
<C> <S> <C>
99.10(a) Consent of Arthur Anderson LLP
99.10(b) Consent of Swidler Berlin Shereff Friedman LLP
99.16(a) Code of Ethics of Mutual of America Investment Corporation
Code of Ethics of Mutual of America Capital Management
99.16(b) Corporation
99.16(c) Code of Ethics of Fred Alger Management, Inc.
99.16(d) Code of Ethics of Oak Associates, Ltd.
99.16(e) Code of Ethics of Mutual of America Life Insurance Company
</TABLE>
<PAGE>
EXHIBIT 99.10(a)
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use of our report
(and to all references to our firm) included in or made a part of Registration
Statement No. 33-6486.
ARTHUR ANDERSEN LLP
New York, New York
April 26, 2000
<PAGE>
EXHIBIT 99.10(b)
CONSENT OF COUNSEL
We hereby consent to the reference to our firm included in the prospectus
filed as part of Registration Statement No. 33-6486.
SWIDLER BERLIN SHEREFF FRIEDMAN, LLP
New York, New York
April 26, 2000
<PAGE>
EXHIBIT 16(a)
MUTUAL OF AMERICA INVESTMENT CORPORATION
Preamble:
Mutual of America Investment Corporation recognizes its responsibility to be
familiar with and to ensure its compliance with the provisions of the Investment
Company Act of 1940, the Securities Act of 1933, the Securities Exchange Act of
1934, and the Rules and Regulations of the Securities and Exchange Commission
promulgated under those Acts. The same is true as to other Federal and state
laws and regulations thereunder which may be applicable to an investment company
and to particular situations which may arise.
Experience over the years has shown, however, that there are, in addition,
business principles and practices to be followed in maintaining a high standard
of conduct in the operation and management of a registered investment
company.The basic principle which should govern all officers, directors and
employees of the Company shall be carried on with fidelity to the interests of
our security holders. The performance of such functions should conform in all
particulars to just and equitable principles of conduct in the administration
and management of the Company.
The combination of these factors also leads to certain fundamental principles
which should govern the personal investment activities of the Company's
personnel, namely: (1) the duty at all times to place the interests of security
holders first; (2) the requirement that all personal securities transactions be
conducted consistent with the code of ethics and in such a manner as to avoid
any actual or potential conflict of interest or any abuse of an individual's
position of trust and responsibility; and (3) that investment company personnel
should not take inappropriate advantage of their positions.
To foster the above considerations, Mutual of America Investment Corporation has
established the following Code of Ethics.
CODE OF ETHICS
1- Definitions
(a) Fund
As used in this code the term "Fund" shall mean Mutual of America
Investment Corporation.
(b) Access Person
As used in this code the term "access person" shall mean any director,
officer, general partner, or advisory employee of the Fund.
(c) Advisory Employee
<PAGE>
As used in this code the term "advisory employee" shall mean any employee
of the Fund who makes any recommendation concerning any security held
or to be acquired by the Fund,who participates in the determination of
which recommendation shall be made, who in connection with his or her
duties obtains any information concerning which securities are being
recommended; and any employee of a person in a controlled relationship
to the Fund who obtains current information concerning securities
recommendations being made.
(d) Independent Outside Director
As used in this code the term "independent outside director" shall mean
a director of the Fund who is not an "interested person" of the Fund
within the meaning of Section 2(a)(19) of the Investment Company Act of
1940.
2- Restrictions on Personal Investing Activities
(a) No access person shall purchase or sell, directly or indirectly, any
security in which he or she has, or by reason of such transaction
acquires, any direct or indirect beneficial ownership and which to his
or her knowledge (or should have known) is currently being purchased
or sold by the Fund, or which to his or her knowledge (or should have
known) any investment adviser of the Fund or any advisory employee of
the Fund is actively considering recommending to the Fund for purchase
or sale. These prohibitions shall continue until the time as such
investment adviser or advisory employee decides not to recommend such
purchase or sale, or if such recommendation is made until the time
that such investment company decides not to enter into, or completes,
such recommended purchase or sale. These prohibitions shall apply to
any purchase or sale by any access person of any convertible security,
option or warrant of any issuer whose underlying securities are being
actively considered for recommendation to, or are currently being
purchased or sold by the Fund.
(b) No access person, other than an independent outside director, shall
purchase any securities in an initial public offering.
(c) No access person shall engage directly or indirectly in any securities
activities in anticipation of a Fund transaction. For purposes of this
provision it shall be presumed that a violation has occurred if an
access person has executed a securities transaction within 7 calendar
days prior to a Fund transaction in a security of the same or related
issuer.
3- Exempt Purchases and Sales
The prohibitions in Section 2 of this code shall not apply to:
(i) purchases or sales effected in any account over which an access person
has no direct or indirect influence or control;
(ii) purchases or sales of securities which are not eligible for purchase
or sale by the Fund;
<PAGE>
(iii) purchases or sales of securities which are direct obligations of the
United States, banker's acceptances, bank certificates of deposit,
commercial paper, high quality short-term debt instruments including
repurchase agreements and shares of registered open-end investment
companies;
(iv) purchases effected upon exercise of rights issued by an issuer pro
rata to all holders of a class of its securities to the extent such
rights were acquired from such issuer, and sales of such rights so
acquired; and
(v) purchases which are part of an automatic dividend reinvestment plan.
4- Reporting
(a) Each access person shall report to the Fund every transaction in a
security in which he or she has, or by reason of such transaction
acquires, any direct or indirect beneficial ownership, except
purchases and sales specified in Section 3 of this code. Such report
shall state the title, the interest rate and maturity date (if
applicable), the number of shares and the principal amount of each
security; the date and nature of the transaction (i.e., purchase,
sale or other acquisition or disposition); the price at which it was
effected; and the name of the broker, dealer or bank with or through
whom the transaction was effected; and the name of the broker, dealer
or bank with whom any account has been established and the date
thereof. Such report may also contain a statement declaring that the
reporting or recording of any such transaction shall not be construed
as an admission that the access person making the report has any
direct or indirect beneficial ownership in the security. A report
shall be made not later than 10 days after the end of each quarter
whether or not a transaction covered hereby takes place and shall
reflect the date submitted.
Notwithstanding the above, no person shall be required to make a report or
supply confirmations or account statements if such person is an
independent outside director of the Fund and would be required to
make such a report solely by reason of being a director of the Fund,
except where such director knew or, in the ordinary course of
fulfilling his or her official duties as a director of the Fund,
should have known that during the 15-day period immediately preceding
or after the date of the transaction in a security by the director
such security is or was purchased or sold by the Fund or such
purchase or sale by the Fund is or was considered by the Fund or its
investment adviser.
(b) Each access person, other than an independent outside director, shall
direct their brokers to supply to the Compliance Officer, on a timely
basis, duplicate copies of confirmations of all personal security
transactions and copies of periodic statement for all accounts.
(c) Each access person, other than an independent outside director, shall
disclose all personal security holdings within 10 days of becoming an
access person and within 30 days of the end of each calendar year.
Each such report shall state the title, number of shares and
principal amount of the security involved and the name of any broker,
dealer or bank with whom an account is maintained.
<PAGE>
5- Review of Reports
Reports required to be made pursuant to Section 4 of this code shall be
reviewed by the Fund's compliance officer or such other person as the
President of the Fund designates.
6- Prior Clearance of Transactions
No access person who makes any recommendation concerning any security held
or to be acquired by the Fund, or who participates in the determination of
which recommendation shall be made, or who in connection with his or her
duties obtains any information concerning which securities are being
recommended, shall effect a purchase or sale directly or indirectly, of any
security in which he has, or by reason of such transaction acquires, any
direct or indirect beneficial ownership, without obtaining prior written
clearance from the President of the Fund (or the Chief Executive Officer
when said President is seeking approval).
Prior clearance will NOT be granted with respect to securities being
purchased or sold by the Fund or being actively considered by an advisory
employee of the Fund until 7 days have elapsed from the conclusion of such
activity. Any prior clearance concerning a private placement transaction
will only be granted under circumstances where the Fund's interests are not
disadvantaged, where such opportunity is not being offered to an individual
by virtue of his or her position with the Fund and further, with the
express understanding that the access person involved will be under an
obligation to disclose such investment should he or she participate in the
Fund's subsequent consideration of an investment in the same issuer, such
consideration being subject to an independent review by access persons with
no direct or indirect interest in the issuer. Any access person who effects
a purchase or sale after obtaining such prior written clearance shall be
deemed not to be in violation of Section 2 of this code by reason of such
purchase or sale.
7- Other Restricted Activities
(a) No access person shall accept any gift or other thing of more than de
--
minimis value from any person or entity that does business with or on
-------
behalf of the Fund.
(b) No access person shall profit in the purchase and sale, or sale and
purchase, of the same (or equivalent or economically related)
securities within 60 calendar days, unless prior written clearance is
given by the President of the Fund (or the Chief Executive Officer
when said President is seeking approval). Any profits realized in
violation of this Section shall be disgorged to the Fund. The
foregoing shall apply to an independent outside director only to the
extent such director is under an obligation to report a transaction
pursuant to Section 4 and then only with respect to any securities of
the issuer or an economically related issuer of any security required
to be reported.
<PAGE>
(c) No access person, other than an independent outside director, shall
serve on the board of directors of a publicly traded company without
obtaining prior written clearance from the President of the Fund (or
the Chief Executive Officer when said President is seeking approval).
8- Certificate of Compliance
Each access person shall certify within 30 days of the end of each calendar
year that with respect to this code of ethics he or she has:
(i) read and understood it;
(ii) complied with the requirements; and
(iii) disclosed or reported all personal securities transactions so
required by it.
9- Administration
(a) Upon learning of a violation of this code, the Fund may impose such
sanctions as it deems appropriate, including, inter alia, a letter of
censure or suspension or termination of the employment of the
violator.
(b) At least annually the Fund will furnish a written report to the Board
of Directors of the Fund that:
(i) Describes any issues arising under this code or procedures since
the last report, including all material violations of the code or
procedures and any sanctions imposed in response.
(ii) Certifies that procedures reasonably necessary to prevent access
persons from violating this code have been adopted.
<PAGE>
EXHIBIT 16(b)
MUTUAL OF AMERICA CAPITAL MANAGEMENT CORPORATION
Preamble:
Mutual of America Capital Management Corporation recognizes its responsibility
to be familiar with and to ensure its compliance with the provisions of the
Investment Company Act of 1940 and the Rules and Regulations of the Securities
and Exchange Commission promulgated under the Act. The same is true as to other
Federal and state laws and regulations thereunder which may be applicable to an
investment company and to particular situations which may arise.
Experience over the years has shown, however, that there are, in addition,
business principles and practices to be followed in maintaining a high standard
of conduct in the operation and management of a registered investment company.
The basic principle which should govern all officers, directors and employees of
the Company shall be carried on with fidelity to the interests of our clients.
The performance of such functions should conform in all particulars to just and
equitable principles of conduct in the administration and management of the
Company.
The combination of these factors also leads to certain fundamental principles
which should govern the personal investment activities of the Company's
personnel, namely:
(1) the duty at all times to place the interests of clients first; (2) the
requirement that all personal securities transactions be conducted consistent
with the code of ethics and in such a manner as to avoid any actual or potential
conflict of interest or any abuse of an individual's position of trust and
responsibility; and (3) that investment adviser personnel should not take
inappropriate advantage of their positions.
To foster the above considerations, Mutual of America Capital Management
Corporation has established the following Code of Ethics.
CODE OF ETHICS
1- Definitions
(a) Adviser
As used in this code the term "Adviser" shall mean Mutual of America
Capital Management Corporation.
(b) Access Person
As used in this code the term "access person" shall mean any director,
officer, general partner, or advisory employee of the Adviser.
<PAGE>
(c) Advisory Employee
As used in this code the term "advisory employee" shall mean any employee
of the Adviser who makes any recommendation concerning any security
held or to be acquired by a client, who participates in the
determination of which recommendation shall be made, who in connection
with his or her duties obtains any information concerning which
securities are being recommended; and any employee of a person in a
controlled relationship to the Adviser who obtains current information
concerning securities recommendations being made.
(d) Independent Outside Director
As used in this code the term "independent outside director" shall mean a
director of the Adviser who is not an "interested person" of an
investment company client within the meaning of Section 2(a)(19) of
the Investment Company Act of 1940.
(e) Investment Company Client
As used in this code the term "investment company client" shall mean a
company registered as such under the Investment Company Act of 1940
and for which the Adviser is the investment adviser.
2- Restrictions on Personal Investing Activities
(a) No access person shall purchase or sell, directly or indirectly, any
security in which he or she has, or by reason of such transaction
acquires, any direct or indirect beneficial ownership and which to his
or her knowledge (or should have known) is currently being purchased
or sold by a client, or which to his or her knowledge (or should have
known) the Adviser, any advisory employee, or any investment adviser
of an investment company client is actively considering recommending
to a client for purchase or sale. These prohibitions shall continue
until the time as the Adviser, advisory employee or such investment
adviser decides not to recommend such purchase or sale, or if such
recommendation is made until the time that such client decides not to
enter into, or completes, such recommended purchase or sale. These
prohibitions shall apply to any purchase or sale by any access person
of any convertible security, option or warrant of any issuer whose
underlying securities are being actively considered for recommendation
to, or are currently being purchased or sold by a client.
(b) No access person, other than an independent outside director, shall
purchase any securities in an initial public offering.
(c) No access person shall engage directly or indirectly in any securities
activities in anticipation of a client's transaction. For purposes of
this provision it shall be presumed that a violation has occurred if
an access person has executed a securities transaction within 7
calendar days prior to a client's transaction in a security of the
same or related issuer.
<PAGE>
3- Exempt Purchases and Sales
The prohibitions in Section 2 of this code shall not apply to:
(i) purchases or sales effected in any account over which an access
person has no direct or indirect influence or control;
(ii) purchases or sales of securities which are not eligible for purchase
or sale by a client;
(iii) purchases or sales of securities which are direct obligations of the
United States, banker's acceptances, bank certificates of deposit,
commercial paper, high quality short-term debt instruments including
repurchase agreements and shares of registered open-end investment
companies;
(iv) purchases effected upon exercise of rights issued by an issuer pro
rata to all holders of a class of its securities to the extent such
rights were acquired from such issuer, and sales of such rights so
acquired; and
(v) purchases which are part of an automatic dividend reinvestment plan.
4- Reporting
(a) Each access person shall report to the Adviser every transaction in a
security in which he or she has, or by reason of such transaction
acquires, any direct or indirect beneficial ownership, except
purchases and sales specified in Section 3 of this code. Such report
shall state the title, the interest rate and maturity date (if
applicable), the number of shares and the principal amount of each
security; the date and nature of the transaction (i.e., purchase,
sale or other acquisition or disposition); the price at which it was
effected; the name of the broker, dealer or bank with or through whom
the transaction was effected; and the name of the broker, dealer or
bank with whom any account has been established and the date thereof.
Such report may also contain a statement declaring that the reporting
or recording of any such transaction shall not be construed as an
admission that the access person making the report has any direct or
indirect beneficial ownership in the security. A report shall be made
not later than 10 days after the end of each quarter whether or not a
transaction covered hereby takes place and shall reflect the date
submitted.
(b) Notwithstanding Section 4(a) of this code, an access person need not
make a report where the report would duplicate information recorded
pursuant to Rules 204-2(a)(12) or 204-2(a)(13) under the Investment
Advisers Act of 1940.
(c) Each access person, other than an independent outside director, shall
direct their brokers to supply to the Compliance Officer, on a timely
basis, duplicate copies of confirmations of all personal security
transactions and copies of periodic statement for all accounts.
<PAGE>
(d) Each access person, other than an independent outside director, shall
disclose all personal security holdings within 10 days of becoming an
access person and within 30 days of the end of each calendar year.
Each such report shall state the title, number of shares and principal
amount of the security involved and the name of any broker, dealer or
bank with whom an account is maintained.
5- Review of Reports
Reports required to be made pursuant to Section 4 of this code shall be reviewed
by the Adviser's compliance officer or such other person as the President of the
Adviser designates.
6- Prior Clearance of Transactions
No access person who makes any recommendation concerning any security held or to
be acquired by a client, or who participates in the determination of which
recommendation shall be made, or who in connection with his or her duties
obtains any information concerning which securities are being recommended, shall
effect a purchase or sale directly or indirectly, of any security in which he
has, or by reason of such transaction acquires, any direct or indirect
beneficial ownership, without obtaining prior written clearance from the
President of the Adviser, or his designee, (or the Chairman of the Board when
the President is seeking approval).
Prior clearance will NOT be granted with respect to securities being purchased
or sold by a client or being actively considered by the Adviser or an advisory
employee until 7 days have elapsed from the conclusion of such activity. Any
prior clearance concerning a private placement transaction will only be granted
under circumstances where a client's interests are not disadvantaged, where such
opportunity is not being offered to an individual by virtue of his or her
position with the Adviser and further, with the express understanding that the
access person involved will be under an obligation to disclose such investment
should he or she participate in the Adviser's subsequent consideration of an
investment in the same issuer, such consideration being subject to an
independent review by access persons with no direct or indirect interest in the
issuer. Any access person who effects a purchase or sale after obtaining such
prior written clearance shall be deemed not to be in violation of Section 2 of
this code by reason of such purchase or sale.
7- Other Restricted Activities
(a) No access person shall accept any gift or other thing of more than de
--
minimis value from any person or entity that does business with or on
-------
behalf of the Adviser.
(b) No access person shall profit in the purchase and sale, or sale and
purchase, of the same (or equivalent or economically related)
securities within 60 calendar days, unless prior written clearance is
given by the President of the Adviser, or his designee, (or the
Chairman of the Board when the President is seeking approval). Any
profits realized in violation of this Section shall be required to be
disgorged. The foregoing shall apply to an independent outside
director only to the extent such director is under an obligation to
<PAGE>
report a transaction within Section 2 and then only with respect to
any securities of the issuer or an economically related issuer of any
such security required to be reported.
(c) No access person, other than an independent outside director, shall
serve on the board of directors of a publicly traded company without
obtaining prior written clearance from the President of the Adviser,
or his designee, (or the Chairman of the Board when the President is
seeking approval).
8- Certificate of Compliance
Each access person shall certify within 30 days of the end of each calendar
year that with respect to this code of ethics he or she has:
(i) read and understood it;
(ii) complied with the requirements; and
(iii) disclosed or reported all personal securities transactions so
required by it.
9- Administration
(a) Upon learning of a violation of this code, the Adviser may impose such
sanctions as it deems appropriate, including, inter alia, a letter of
censure or suspension or termination of the employment of the
violator.
(b) At least annually the Adviser will furnish a written report to the
Board of Directors of an investment company client that:
(i) Describes any issues arising under this code or procedures since
the last report, including all material violations of the code or
procedures and any sanctions imposed in response.
(ii) Certifies that procedures reasonably necessary to prevent access
persons from violating this code have been adopted.
<PAGE>
EXHIBIT 16(c)
CODE OF ETHICS
- --------------
I. General Principles
------------------
This Code of Ethics ("Code") establishes rules of conduct that govern
personal investment activities of employees of Fred Alger Management, Inc.
("Alger"), Fred Alger & Company, Incorporated and each registered
investment company for which Alger acts as investment adviser or sub-
adviser ("Alger Fund").
The following categories of personnel are covered by the Code:
(1) portfolio managers - those employees who have direct responsibility
and authority to make investment decisions affecting an Alger Fund and
their immediate family members residing in the same household;
(2) investment personnel - securities analysts and traders who provide
information and advice to a portfolio manager or who help execute the
portfolio manager's decisions and their immediate family members
residing in the same household; and
(3) access persons - all employees (including portfolio managers and
investment personnel) and their immediate family members residing in
the same household; and "interested" directors and officers of Alger
or an Alger Fund.
(4) Independent trustees of Alger Funds will be subject to the
preclearance and reporting requirements of Section III of the Code
only if such person, at the time of his transaction, knew, or in the
ordinary course of fulfilling his official duties as a director of
such company should have known, that during the 15-day period
immediately preceding or after the date of the transaction by such
person, the security such person purchased or sold is or was purchased
or sold by any Alger Fund or was being considered for purchase or sale
by any Alger Fund or Alger.
Certain general fiduciary principles govern the personal investment
activities of all employees:
(1) the duty at all times to place the interests of Alger Fund
shareholders and Alger investment accounts first;
(2) the requirement that all personal securities transactions be conducted
consistent with the Code and in such a manner as to avoid any actual
or potential conflict of interest or any abuse of an individual's
position of trust and responsibility; and
(3) the fundamental standard that Alger personnel should not take
inappropriate advantage of their positions.
<PAGE>
The restrictions and procedures of the Code apply to all accounts in which
an access person has, or by reason of the subsequent transaction acquires,
any direct or indirect beneficial ownership (as defined in Exhibit A).
For purposes of the Code, the term "security" shall not include government
securities, bankers' acceptances, bank certificates of deposit, commercial
paper and shares of registered open-end investment companies.
II. Restrictions on Personal Investing
----------------------------------
A. Initial Public Offerings
- Investment personnel may not acquire any securities in an
initial public offering.
B. Private Placements
- Investment personnel must obtain prior approval of any
acquisition of securities in a private placement.
(a) Any such approved acquisition must be disclosed if the
investment personnel subsequently participate in any
Alger Fund's consideration of an investment in the
issuer.
(b) Any Alger Fund's subsequent decision to purchase
securities of the issuer will be subject to independent
review by investment personnel with no personal
interest in the issuer.
C. Blackout Periods
1. An access person may not execute a securities transaction at
a time when any Portfolio Manager is considering the
purchase or sale of that security. If the Alger Fund is in
the middle of a buying or selling program for that security,
the program must be completed before the access person may
execute his or her transaction.
(a) An access person may not recommend any securities
transaction by an Alger Fund without having disclosed
his or her interest, if any, in such securities or the
issuer thereof, including without limitation:
(1) direct or indirect beneficial ownership of any
securities of the issuer;
<PAGE>
(2) any position with the issuer or its affiliates; and
(3) any present or proposed business relationship between the
issuer or its affiliates and such person or any party in which
such person has a significant interest.
2. A portfolio manager may not buy or sell a security within seven calendar
days before and after the Alger Fund that he or she manages trades in
that security unless one of the following situations exists:
(a) An Alger Fund receives a better price on its transaction made
within seven days of the portfolio manager's transaction.
(b) If a portfolio manager has recommended a security for purchase or
sale by an Alger Fund and his or her recommendation is overruled by
Senior Management, he or she may purchase or sell that security for
his or her own account. If Senior Management subsequently changes
its position regarding that security and decides to purchase or
sell the security for an Alger Fund within 7 days of the portfolio
manager's transaction for his or her own account, the Fund's
purchase or sale will not require disgorgement by the portfolio
manager.
(c) The portfolio manager can demonstrate that a hardship exists which
requires the sale of the security within the prohibited time
period.
3. Any profits realized on trades within the proscribed periods must be
disgorged to the appropriate Alger Fund or to charity.
D. Short-term Trading
Investment personnel may not profit in the purchase and sale, or sale and
purchase, of the same (or equivalent) securities* within 60 calendar days
unless the security is not held by any Alger Fund and is not eligible for
purchase by any Alger Fund.
- The Compliance Officer will consider exemptions to this prohibition on
a case-by-case basis when it is clear that no abuse is involved and
the equities of the situation strongly support an exemption.
* Includes options and short sales
<PAGE>
E. Gifts
Investment personnel may not accept any gift or other thing of more
than de minimus value from any person or entity that does business
-- -------
with or on behalf of an Alger Fund.
F. Service as a Director
Investment Personnel must obtain prior authorization to serve on the
board of directors of a publicly traded company. Such authorization
will be based on a determination that the board service would be
consistent with the interests of the Alger Fund and its shareholders.
III. Compliance Procedures
---------------------
A. Preclearance
All access persons must preclear their personal securities
transactions with the Compliance Officer.
- The Compliance Officer must preclear the personal securities
transactions of all access persons with the Portfolio Managers in
addition to preclearance with the trading desk.
- Any approval will be valid only for the day on which it is granted.
B. Brokerage Confirmations and Statements
All access persons should direct their brokers to supply duplicate
copies of all confirmations and periodic statements to the firm's
Compliance Officer.
C. Disclosure of Personal Holdings
All investment personnel must disclose their personal securities
holdings upon commencement of employment and thereafter on an annual
basis.
<PAGE>
D. Certification of Compliance With the Code
All access persons must certify annually that:
- they have read and understood the Code;
- they are subject to the Code;
- they have complied with the requirements of the Code; and
- they have disclosed all personal securities transactions required
to be disclosed pursuant to the Code.
E. The management of each Alger Fund will prepare an annual report to
the Fund's Board of Trustees/Directors that:
- Summarizes existing procedures concerning personal investing and
any changes made during the previous year;
- identifies any violations requiring significant remedial action
during the previous year; and
- identifies any recommended changes in existing restrictions or
procedures.
IV. Sanctions
---------
Upon discovering that an access person has not complied with the
requirements of this Code, the Board of Directors of Alger or of any Alger
Fund may impose on that person whatever sanctions the Board deems
appropriate, including, among other things, censure, suspension or
termination of employment.
V. Confidentiality
---------------
All information obtained from any access person hereunder shall be kept in
strict confidence, except that reports of securities transactions hereunder
will be made available to the Securities and Exchange Commission or any
other regulatory or self-regulatory organization to the extent required by
law or regulation.
<PAGE>
VI. Other Laws, Rules and Statements of Policy
------------------------------------------
Nothing contained in this Code shall be interpreted as relieving any access
person from acting in accordance with the provision of any applicable law,
rule, or regulation or any other statement of policy or procedure adopted
by Alger or by an Alger Fund governing the conduct of such person.
<PAGE>
Exhibit A
For purposes of the attached Code of Ethics, "beneficial ownership" shall
be interpreted in the same manner as it would be in determining whether a
person is subject to the provisions of Section 16 of the Securities Exchange Act
of 1934 and the rules and regulations thereunder, except that the determination
of direct or indirect beneficial ownership shall apply to all securities that an
Access Person has or acquires. The term "beneficial ownership" of securities
would include not only ownership of securities held by an Access Person for his
own benefit, whether in bearer form or registered in his name or otherwise, but
also ownership of securities held for his benefit by others (regardless of
whether or how they are registered) such as custodians, brokers, executors,
administrators, or trustees (including trust in which he has only a remainder
interest), and securities held for his account by pledgees, securities owned by
a partnership in which he is a member, if he may exercise a controlling
influence over the purchase, sale or voting of such securities held for his
account by pledgees, securities owned by a patnership in which he is a member,
if he may exercise a controlling influence over the purchase, sale or voting of
such securities and securities owned by any corporation. Correspondingly, this
term would exclude securities held by an Access Person for the benefit of
someone else.
Ordinarily, this term would not include securities held by executors or
administrators in estates in which an Access Person is a legatec or beneficiary
unless there is a specific legacy to such person of such securities or such
person is the sole legatee or beneficiary and there are other assets in the
estate sufficient to pay debts ranking ahead of such legacy, or the securities
are held in the estate more than a year after the decedent's death.
Securities held in the name of another should be considered as
"beneficially" owned by an Access Person where such person enjoys "benefits
substantially equivalent to ownership". The Securities and Exchange Commission
has said that although the final determination of beneficial ownership is a
question to be determined in the light of the facts of the particular case,
generally a person is regarded as the beneficial owner of securities held in the
name of his or her spouse and their minor children. Absent special circumstances
such relationship ordinarily results in such person obtaining benefits
substantially equivalent to ownership, e.g., application of the income derived
---
from such securities to maintain a common home, to meet expenses that such
person otherwise would meet from other sources, or the ability to exercise a
controlling influence over the purchase, sale or voting of such securities.
An Access Person also may be regarded as the beneficial owner of securities
held in the name of another person, if by reason of any contract, understanding,
relationship, agreement, or other arrangement, he obtains therefrom benefits
substantially equivalent to those of ownership.
<PAGE>
Moreover, the fact that the holder is a relative or relative of a spouse and
sharing the same home as an Access Person may in itself indicate that the Access
Person would obtain benefits substantially equivalent to those of ownership from
securities held in the name of such relative. Thus, absent countervailing facts,
it is expected that securities held by relatives who share the same home as an
Access Person will be treated as being beneficially owned by the Access Person.
An Access Person also is regarded as the beneficial owner of securities
held in the name of a spouse, minor children or other person, even though he
does not obtain therefrom the aforementioned benefits of ownership, if he can
vest or revest title in himself at once or at some future time.
<PAGE>
Exhibit 16(d)
Code of Ethics Adopted Pursuant to Rule 17j-1
Under the Investment Company Act of 1940
1. Purposes
--------
The Code has been adopted by the Board of Directors/Trustees of Oak Advised
or Subadvised investment company accounts in accordance with Rule 17j-1 (b)
under the Investment Company Act of 1940 (the Act) and in accordance with the
following general principles:
(1) The duty at all times to place the interests of shareholders
first.
Investment company personnel should scrupulously avoid serving
their own personal interests ahead of shareholders' interests in any
decision relating to their personal investments.
(2) The requirement that all personal securities transactions be
conducted consistent with the Code and in such a manner as to avoid
any actual or potential conflict of interest or any abuse of an
individual's position of trust and responsibility.
Investment company personnel must not only seek to achieve
technical compliance with the Code but should strive to abide by its
spirit and the principles articulated herein.
(3) The fundamental standard that investment company personnel should
not take inappropriate advantage of their positions.
Investment company personnel must avoid any situation that might
compromise, or call into question, their exercise of fully independent
judgment in the interest of shareholders, including, but not limited
to the receipt of unusual investment opportunities, perquisites, or
gifts of more than a de minimis value from persons doing or seeking
----------
business with the Fund.
Rule 17j-1 under the Act generally proscribes fraudulent or manipulative
practices with respect to purchases or sales of securities held or to be
acquired by investment companies, if effected by associated persons of such
companies.
The purpose of the Code is to establish procedures consistent with the Act
and Rule 17j-1 to give effect to the following general prohibitions as set forth
in rule 17j-1:
(a) It shall be unlawful for any affiliated person of or principal
underwriter for a registered investment company, or any affiliated
person of an investment adviser of or principal underwriter for a
registered investment company in connection with the purchase or sale,
directly or indirectly, by such person of a security held or to be
acquired, as defined in this section, by such registered investment
company.
(1) To employ any device, scheme or artifice to defraud such
registered investment company;
<PAGE>
(2) To make to such registered investment company any untrue
statement of a material fact or omit to state to such registered
investment company a material fact necessary in order to make the
statements made, in light of the circumstances under which they
are made, not misleading;
(3) To engage in any act, practice, or course of business which
operates or would operate as a fraud or deceit upon any such
registered investment company; or
(4) To engage in any manipulative practice with respect to such
registered investment company.
2. Definitions
-----------
(a) "Access Person" means any director/trustee, officer, general
partner or Advisory Person (including any Investment Personnel, as
that term is defined herein) of the Fund, the Manager or the
Adviser/Subadviser; provided, however, that "Access Person" shall not
include any director/trustee, officer, general partner or Advisory
Person of Pacific Investment Management Company (PIMCO) or Columbus
Circle investors (Columbus Circle) who shall be subject to the
provisions of the code of ethics adopted by PIMCO and Columbus
Circle, respectively.
(b) "Adviser/Subadviser" means the Adviser or Subadviser of the Fund
or both as the context may require.
(c) "Advisory Person" means:
(i) any employee of the Fund, Manager or Adviser/Subadviser (or
of any company in a control relationship to the Fund, Manager or
Adviser/Subadviser) who, in connection with his or her regular
functions or duties, makes, participates in, or obtains
information regarding the purchase or sale of a security by the
Fund, or whose functions relate to the making of any
recommendations with respect to such purchases or sales; and
(ii) any natural person in a control relationship to the Fund who
obtains information concerning recommendations made to the Fund
with regard to the purchase or sale of a security.
(d) "Beneficial Ownership" will be interpreted in the same manner as
it would be in determining which security holdings of a person are
subject to the reporting and short-swing profit provisions of Section
16 of the Securities Exchange Act of 1934 and the rules and
regulations thereunder, except that the determination of direct or
indirect beneficial ownership will apply to all securities which an
Access Person has or acquires (Exhibit A).
---------
<PAGE>
(e) "Complex" means the group of registered investment companies for which
Prudential Mutual Fund Management, Inc. serves as Manager; provided, however,
that with respect to Access Persons of the Subadviser (including any unit or
--------------------------------
subdivision thereof), "Complex" means the group of registered investment
companies in the Complex advised by the Subadviser, or unit, or subdivision
thereof.
(f) "Compliance Officer" means the person designated by the Manager or the
Adviser/Subadviser (including his or her designee) as having responsibility for
compliance with the requirements of the Code.
(g) "Control" will have the same meaning as that set forth in Section 2 (a) (9)
of the Act.
(h) "Disinterested Director/Trustee" means a Director/Trustee of the Fund who
is not an "interested person" of the Fund within the meaning of Section 2 (a)
(19) of the Act.
(i) "Investment Personnel" means Portfolio Managers and other Advisory Persons
who provide investment information and/or advice to the Portfolio Manager(s) and
/or help execute the Portfolio Manager's (s') investment decisions, including
securities analysts and traders.
(j) "Manager" means Prudential Mutual Fund Management, Inc.
(k) "Portfolio Manager" means any Advisory Person who has the direct
responsibility and authority to make investment decisions for the Fund.
(l) "Purchase of sale of a Security" includes, inter alia, the writing of an
----------
option to purchase or sell a security.
(m) "Security" will have the meaning set forth in Section 2 (a) (36) of the
Act, except that it will not include shares of registered open-end investment
companies, securities issued by the United States Government, short-term debt
securities which are "government securities" within the meaning of Section 2 (a)
(16) of the Act, bankers' acceptances, bank certificates of deposit, commercial
paper and such other money market instruments as are designated by the
Compliance Officer. For purposes of the Code, an "equivalent Security" is one
that has a substantial economic relationship to another Security. This would
include, among other things,
(1) a Security that is convertible into another Security,
(2) with respect to an equity Security, a Security having the same issuer
(including a private issue by the same issuer) and any derivative, option
or warrant relating to that Security and
(3) with respect to a fixed-income Security, a Security having the same
issuer, maturity, coupon and rating.
<PAGE>
3. Applicability
-------------
The prohibitions described below will only apply to a transaction in a
Security in which the designated Access Person has, or by reason of such
transaction acquires, any direct or indirect Beneficial Ownership.
4. Prohibited Purchases and Sales
------------------------------
A. Initial Public Offerings
No Investment Personnel may acquire any Securities in an initial
public offering.
B. Private Placements
No Investment Personnel may acquire any Securities in a private
placement without express prior approval.
(i) Prior approval must be obtained in accordance with the
preclearance procedure described in Section 6 below. Such approval
will take into account, among other factors, whether the investment
opportunity should be reserved for the Fund and its shareholders and
whether the opportunity is being offered to the Investment Personnel
by virtue of his or her position with the Fund.
(ii) Investment Personnel who have been authorized to acquire
Securities in a private placement must disclose that investment to the
chief investment officer (including his or her designee) of the
Advisor/Subadviser (or of any unit or subdivision thereof) or the
Compliance Officer when they play a part in any subsequent
consideration of an investment by the Fund in the issuer. In such
circumstances, the Fund's decision to purchase Securities of the
issuer will be subject to an independent review by appropriate
personnel with no personal interest in the issuer.
C. Blackout Periods
(i) Except as provided in Section 5 below, Access Persons are
prohibited from executing a Securities transaction on a day during
which any investment company in the Complex has a pending "buy" or
"sell" order in the same or an equivalent Security and until such time
as that order is executed or withdrawn; provided, however, that this
prohibition shall not apply to Disinterested Directors/Trustees except
if they have actual knowledge of trading by any fund in the Complex
and, in any event, only with respect to those funds on whose boards
they sit.
This prohibition shall also not apply to Access Persons of the
Manager who do not, in the ordinary course of fulfilling his or her
official duties, have access to information regarding the purchase and
sale of Securities for the Fund; provided that Securities investments
effected by such Access Persons during the Proscribed period are not
effected with knowledge of the purchase or sale of the same or
equivalent Securities by any fund in the Complex.
<PAGE>
A "pending `buy' or `sell' order" exists when a decision to
purchase or sell a Security has been made and communicated.
(ii) Portfolio Managers are prohibited from buying or selling a
Security within seven calendar days before or after the Fund trades in
the same or an equivalent Security.
(iii) If trades are effected during the periods proscribed in (i) or
(ii) above, except as provided in (iv) below with respect to (i)
above, any profits realized on such trades will be immediately
-------------------------------------------------------
required to be disgorged to the Fund.
------------------------------------
(iv) A transaction by Access Persons (other than Investment
Personnel) inadvertently effected during the period proscribed in (i)
above will not be considered a violation of the Code an disgorgement
will not be required so long as the transaction was effected in
accordance with the preclearance procedures described in Section 6
-----------------------
below and without prior knowledge of trading by any fund in the
Complex in the same or an equivalent Security.
D. Short-Term Trading Profits
Except as provided in Section 5 below, Investment Personnel are
prohibited from profiting from a purchase and sale, or sale and
purchase, of the same or an equivalent Security within any 60 Calendar
day period. If trades are effected during the proscribed period, any
profits realized on such trades will be immediately required to be
disgorged to the Fund.
5. Exempted Transactions
---------------------
Subject to preclearance in accordance with Section 6 below with
respect to subitems (b), (e), (f), (g), (h) and (i) hereof, the
prohibitions of Sections 4 (C) and 4 (D) will not apply to the following:
(a) Purchases or sales of Securities effected in any account
over which the Access Person has no direct or indirect
influence or control or in any account of the Access Person
which is managed on a discretionary basis by a person other
than such Access Person and with respect to which such Access
Person does not in fact influence or control such transactions.
(b) Purchases or sales of Securities (or their equivalents)
which are not eligible for purchase or sale by any fund in the
Complex.
(c) Purchases or sales of Securities which are non-volitional
on the part of either the Access Person or any fund in the
Complex.
(d) Purchases of Securities which are part of an automatic
dividend reinvestment plan.
<PAGE>
(e) Purchases effected upon the exercise of rights issued by an
issuer pro rata to all holders of a class of its Securities, to
--------
the extent such rights were acquired from such issuer, and sales
of such rights so acquired.
(f) Any equity Securities transaction, or series of related
transactions effected over a 30 calendar day period, involving
500 shares or less in the aggregate, if:
(i) the Access person has no prior knowledge of activity in
such security by any fund in the Complex and
(ii) the issuer is listed on The New York Stock Exchange or
has a market capitalization (outstanding shares
multiplied by the current price per share) greater than
$1 billion (or a corresponding market capitalization in
foreign markets).
(g) Any fixed-income Securities transaction, or series of
related transactions effected over a 30 calendar day period,
involving 100 units ($100,000 principal amount) or less in the
aggregate, if the Access Person has no prior knowledge of
transactions in such Securities by any fund in the Complex.
(h) Any transaction in index options effected on a broad-based
index if the Access Person has no prior knowledge of activity in
such index by any fund in the Complex.
(i) Purchases or sales of Securities which receive the prior
approval of the Compliance Officer (such person having no
personal interest in such purchases or sales), based on a
determination that no abuse is involved and that such purchases
and sales are not likely to have any economic impact on any fund
in the Complex or on its ability to purchase or sell Securities
of the same class or other Securities of the same issuer.
6. Preclearance
------------
Access Persons (other than Disinterested Directors/Trustees) must preclear
all personal Securities investments with the exception of those identified in
subparts (a), (c) and (d) of Section 5 above.
All requests for preclearance must be submitted to the Compliance Officer
for approval. All approved orders must be executed by the close of business on
the day preclearance is granted; provided, however, that approved orders for
Securities traded in foreign markets may be executed within two (2) business
days from the date preclearance is granted. If any order is not timely
executed, a request for preclearance must be resubmitted.
7. Reporting
---------
(a) Disinterested Directors/Trustees shall report to the Secretary of the
Fund or the Compliance Officer the information described in Section 7 (b)
hereof with respect to transactions in any Security in which such
Disinterested Director/Trustee has, or by reason of such transaction
acquires, any direct
<PAGE>
or indirect Beneficial Ownership in the Security only if such Disinterested
Director/Trustee, at the time of that transaction knew or, in the ordinary
course of fulfilling his or her official duties as a Director/Trustee of
the Fund, should have known that, during the 15-day period immediately
preceding or subsequent to the date of the transaction in a Security by
such Director/Trustee, such Security is or was purchased or sold by the
Fund or was being considered for purchase or sale by the Fund, the Manager
or Adviser/Subadviser; provided, however, that a Disinterested
Director/Trustee is not required to make a report with respect to
transactions effected in any account over which such Director/Trustee does
not have any direct or indirect influence or control or in any account of
the Disinterested Director/Trustee which is managed on a discretionary
basis by a person other than such Director/Trustee and with respect to
which such Director/Trustee does not in fact influence or control such
transactions. The Secretary of the Fund or the Compliance Officer shall
maintain such reports and such other records to the extent required by Rule
17j-1 under the Act.
(b) Every report required by Section 7 (a) hereof shall be made not later
than ten days after the end of the calendar quarter in which the transaction to
which the report relates was effected, and shall contain the following
information:
(i) The date of the transaction, the title and the number of
shares, and the principal amount of each Security involved;
(ii) The nature of the transaction (i.e., purchase, sale or any
----
other type of acquisition or disposition);
(iii) The price at which the transaction was effected; and
(iv) The name of the broker, dealer or bank with or through whom the
transaction was effected.
(c) Any such report may contain a statement that the report shall not be
construed as an admission by the person making such report that he or she has
any direct or indirect Beneficial Ownership in the Security to which the report
relates.
8. Records of Securities Transactions and Post-Trade Review
--------------------------------------------------------
Access Persons (other than Disinterested Directors/Trustees) are required
to direct their brokers to supply, on a timely basis, duplicate copies of
confirmations of all personal Securities transactions and copies of periodic
statements for all Securities accounts in which such Access Persons have a
Beneficial Ownership interest to the Compliance Officer. Compliance with this
Code requirement will be deemed to satisfy the reporting requirements imposed
on, Access Persons under Rule 17j-1(c).
The Compliance Officer will periodically review the personal investment
activity of all Access Persons (including Disinterested Directors/Trustees with
respect to Securities transactions reported pursuant to Section 7 above).
<PAGE>
9. Disclosure of Personal Holdings
-------------------------------
Upon commencement of employment and thereafter on an annual basis, Access
Persons (other than Disinterested Directors/Trustees) must disclose all personal
Securities holdings.
10. Gifts
-----
Access Persons are prohibited from receiving any gift or other thing of
more than $100 in value from any person or entity that does business with or on
behalf of the Fund. Occasional business meals or entertainment (theatrical or
sporting events, etc.) are permitted so long as they are not excessive in number
or cost.
11. Service As a Director
---------------------
Investment Personnel are prohibited from serving on the boards of directors
of publicly traded companies, absent prior authorization based upon a
determination that the board service would be consistent with the interests of
the Fund and its shareholders. In the limited instances that such board service
is authorized, Investment Personnel will be isolated from those making
investment decisions affecting transactions in Securities issued by any publicly
traded company on whose board such Investment Personnel serves as a director
through the use of "Chinese Wall" or other procedures designed to address the
potential conflicts of interest.
12. Certification of Compliance with the Code
-----------------------------------------
Access Persons are required to certify annually as follows:
(i) that they have read and understood the Code;
(ii) that they recognize that they are subject to the Code;
(iii) that they have complied with the requirements of the Code; and
(iv) that they have disclosed or reported all personal Securities
transactions required to be disclosed or reported pursuant to the
requirements of the Code.
13. Code Violations
---------------
All violations of the Code will be reported to the Board of
Directors/Trustees of the Fund on a quarterly basis. The Board of
Directors/Trustees may take such action as it deems appropriate.
14. Review by the Board of Directors/Trustees
-----------------------------------------
The Board of Directors/Trustees will be provided with an annual report
which at a minimum:
(i) summarizes existing procedures concerning personal investing and any
changes in the procedures made during the preceding year;
<PAGE>
(ii) identifies any violations requiring significant remedial action during
the preceding year; and
(iii) identifies any recommended changes in existing restrictions or procedures
based upon the Fund's experience under the Code, evolving industry practices,
or developments in applicable laws and regulations.
<PAGE>
Explanatory Notes to Code
-------------------------
1. The information on personal employee Securities transactions received
and recorded by the Manager and by the Adviser/Subadviser, in conformity
with Rule 204-2(a) (12) under the Investment Advisers Act of 1940, under
their respective current policy statements regarding personal securities
transactions of employees will be deemed to satisfy the reporting
requirements imposed on Access Persons of the Manager and of the
Adviser/Subadviser under Rule 17j-1(c).
2. No comparable code requirements have been imposed upon Prudential
Mutual Fund Services, Inc., the Fund's transfer agent, or Prudential
Securities Incorporated, which acts as the Fund's distributor, or those of
their directors or offices who are not Directors/Trustees or Officers of
the Fund since they are deemed not to constitute Access Persons or Advisory
Persons as defined in paragraphs (e) (1) and (2) of Rule 17j-1.
Dated: April 1, 1995, as amended on June 1, 1995.
<PAGE>
Exhibit A
---------
Definition of Beneficial Ownership
----------------------------------
The term "beneficial ownership" of securities would include not only
ownership of securities held by an access person for his or her own benefit.
Whether in bearer form or registered in his or her own name or otherwise, but
also ownership of securities held for his or her benefit by other (regardless
of whether or how they are registered) such as custodians, brokers, executors,
administrators, or trustees (including trusts in which he or she has only a
remainder interest), and securities held for his or her account by pledges,
securities owned by a partnership in which he or she should regard as a personal
holding corporation. Correspondingly, this term would exclude securities held by
an access person for the benefit of someone else.
Ordinarily, this term would not include securities held by executors or
administrators in estates in which an access person is a legatee or beneficiary
unless there is a specific legacy to such person of such securities or such
person is the sole legatee or beneficiary and there are other assets in the
estate sufficient to pay debts ranking ahead of such legacy, or the securities
are held in the estate more than a year after the decedent's death.
Securities held in the name of another should be considered as
"beneficially" owned by an access person where such person enjoys "benefits
substantially equivalent to ownership". The SEC has said that although the
final determination of beneficial ownership is a question to be determined in
the light of the facts of the particular case, generally a person is regarded as
the beneficial owner of securities held in the name of his or her spouse and
their minor children. Absent special circumstances such relationship ordinarily
results in such person obtaining benefits substantially equivalent to ownership,
e.g., application of the income derived from such securities to maintain a
common home, to meet expenses which such person otherwise would meet from other
sources, or the ability to exercise a controlling influence over the purchase,
sale or voting of such securities.
An access person also may be regarded as the beneficial owner of securities
held in the name of another person, if by reason of any contact, understanding,
relationship, agreement or other arrangement, he obtains therefrom benefits
substantially equivalent to those of ownership. Moreover, the fact that the
holder is a relative or relative of a spouse and sharing the same home as an
access person may in itself indicate that the access person would obtain
benefits substantially equivalent to those of ownership from securities held in
the name of such relative. Thus, absent countervailing facts, it is expected
that securities held by relatives who share the same home as an access person
will be treated as being beneficially owned by the access person.
An access person also is regarded as the beneficial owner of securities
held in the name of a spouse, minor children or other person, even though he
does not obtain therefrom the aforementioned benefits of ownership, if he can
vest or revest title in himself at once or at some future time.
<PAGE>
EXHIBIT 16(e)
MUTUAL OF AMERICA LIFE INSURANCE COMPANY
Preamble:
Mutual of America Life Insurance Company recognizes its responsibility to be
familiar with and to ensure its compliance with the provisions of the Investment
Company Act of 1940 and the Rules and Regulations of the Securities and Exchange
Commission promulgated under the Act. The same is true as to other Federal and
state laws and regulations thereunder which may be applicable to an investment
company and to particular situations which may arise.
Experience over the years has shown, however, that there are, in addition,
business principles and practices to be followed in maintaining a high standard
of conduct in the operation and management of a registered investment company.
The basic principle which should govern all officers, directors and employees of
the Company shall be carried on with fidelity to the interests of our clients.
The performance of such functions should conform in all particulars to just and
equitable principles of conduct in the administration and management of the
Company.
The combination of these factors also leads to certain fundamental principles
which should govern the personal investment activities of certain personnel of
the Company, namely: (1) the duty at all times to place the interests of
investment company clients first; (2) the requirement that all personal
securities transactions be conducted consistent with the code of ethics and in
such a manner as to avoid any actual or potential conflict of interest or any
abuse of an individual's position of trust and responsibility; and (3) that
company personnel should not take inappropriate advantage of their positions.
To foster the above considerations, Mutual of America Life Insurance Company has
established the following Code of Ethics.
CODE OF ETHICS
1- Definitions
(a) Underwriter
As used in this code the term "Underwriter" shall mean Mutual of America
Life Insurance Company.
(b) Access Person
As used in this code the term "access person" shall mean any director or
officer of the Underwriter who in the ordinary course of business
makes, participates in or obtains information regarding the purchase
or sale of securities for an investment company client for which the
principal underwriter so acts or whose functions or duties as part of
the
<PAGE>
ordinary course of business relate to the making of any recommendation
to such investment company client regarding the purchase or sale of
securities.
(c) Investment Company Client
As used in this code the term "investment company client" shall mean a
company registered as such under the Investment Company Act of 1940
and for which the Underwriter is the principal underwriter.
2- Restrictions on Personal Investing Activities
(a) No access person shall purchase or sell, directly or indirectly, any
security in which he or she has, or by reason of such transaction
acquires, any direct or indirect beneficial ownership and which to his
or her knowledge (or should have known) is currently being purchased
or sold by an investment company client, or which to his or her
knowledge (or should have known) the Adviser, any advisory employee,
or any investment adviser of an investment company client is actively
considering recommending to a client for purchase or sale. These
prohibitions shall continue until the time as the Adviser, advisory
employee or such investment adviser decides not to recommend such
purchase or sale, or if such recommendation is made until the time
that such client decides not to enter into, or completes, such
recommended purchase or sale. These prohibitions shall apply to any
purchase or sale by any access person of any convertible security,
option or warrant of any issuer whose underlying securities are being
actively considered for recommendation to, or are currently being
purchased or sold by an investment company client.
(b) No access person shall purchase any securities in an initial public
offering.
(c) No access person shall engage directly or indirectly in any securities
activities in anticipation of an investment company client's
transaction. For purposes of this provision it shall be presumed that
a violation has occurred if an access person has executed a securities
transaction within 7 calendar days prior to such client's transaction
in a security of the same or related issuer.
3- Exempt Purchases and Sales
The prohibitions in Section 2 of this code shall not apply to:
(i) purchases or sales effected in any account over which an access person
has no direct or indirect influence or control;
(ii) purchases or sales of securities which are not eligible for purchase
or sale by an investment company client;
<PAGE>
(iii) purchases or sales of securities which are direct obligations of the
United States, banker's acceptances, bank certificates of deposit,
commercial paper, high quality short-term debt instruments including
repurchase agreements and shares of registered open-end investment
companies;
(iv) purchases effected upon exercise of rights issued by an issuer pro
rata to all holders of a class of its securities to the extent such
rights were acquired from such issuer, and sales of such rights so
acquired; and
(v) purchases which are part of an automatic dividend reinvestment plan.
4- Reporting
(a) Each access person shall report to the Underwriter every transaction
in a security in which he or she has, or by reason of such
transaction acquires, any direct or indirect beneficial ownership,
except purchases and sales specified in Section 3 of this code. Such
report shall state the title, the interest rate and maturity date (if
applicable), the number of shares and the principal amount of such
security; the date and nature of the transaction (i.e., purchase,
sale or other acquisition or disposition); the price at which it was
effected; the name of the broker, dealer or bank with or through whom
the transaction was effected; and the name of the broker, dealer or
bank with whom any account has been established and date thereof.
Such report may also contain a statement declaring that the reporting
or recording of any such transaction shall not be construed as an
admission that the access person making the report has any direct or
indirect beneficial ownership in the security. A report shall be made
not later than 10 days after the end of each quarter whether or not a
transaction covered hereby takes place and shall reflect the date
submitted.
(b) Notwithstanding Section 4(a) of this code, an access person need not
make a report where the report would duplicate information recorded
pursuant to Rules 204-2(a)(12) or 204-2(a)(13) under the Investment
Advisers Act of 1940.
(c) Each access person shall direct their brokers to supply to the
Compliance Officer, on a timely basis, duplicate copies of
confirmations of all personal security transactions and copies of
periodic statement for all accounts.
(d) Each access person shall disclose all personal security holdings
within 10 days of becoming an access person and within 30 days of the
end of each calendar year. Each such report shall state the title,
number of shares and principal amount of the security involved and
the name of any broker, dealer or bank with whom an account is
maintained.
<PAGE>
5- Review of Reports
required to be made pursuant to Section 4 of this code shall be
reviewed by the Underwriter's compliance officer or such other person as
the President of the Underwriter designates.
6- Prior Clearance of Transactions
No access person who makes any recommendation concerning any security held
or to be acquired by an investment company client, or who participates in,
or whose functions or duties relate to, the determination of which
recommendation shall be made, or who in connection with his or her duties
obtains any information concerning which securities are being recommended,
shall effect a purchase or sale directly or indirectly, of any security in
which he has, or by reason of such transaction acquires, any direct or
indirect beneficial ownership, without obtaining prior written clearance
from the President of the Underwriter (or the Compliance Officer when said
President is seeking approval).
Prior clearance will NOT be granted with respect to securities being
purchased or sold by an investment company client or being actively
considered by the Adviser or an advisory employee until 7 days have elapsed
from the conclusion of such activity. Any prior clearance concerning a
private placement transaction will only be granted under circumstances
where an investment client's interests are not disadvantaged, where such
opportunity is not being offered to an individual by virtue of his or her
position with the Underwriter and further, with the express understanding
that the access person involved will be under an obligation to disclose
such investment should he or she participate in the Adviser's subsequent
consideration of an investment in the same issuer, such consideration being
subject to an independent review by access persons with no direct or
indirect interest in the issuer. Any access person who effects a purchase
or sale after obtaining such prior written clearance shall be deemed not to
be in violation of Section 2 of this code by reason of such purchase or
sale.
7- Other Restricted Activities
(a) No access person shall accept any gift or other thing of more than de
--
minimis value from any person or entity that does business with or on
-------
behalf of the Underwriter.
(b) No access person shall profit in the purchase and sale, or sale and
purchase, of the same (or equivalent or economically related)
securities within 60 calendar days, unless prior written clearance is
given by the President of the Underwriter (or the Compliance Officer
when said President is seeking approval). Any profits realized in
violation of this Section shall be required to be disgorged.
(c) No access person shall serve on the board of directors of a publicly
traded company without obtaining prior written clearance from the
President of the Underwriter (or the Compliance Officer when said
President is seeking approval).
<PAGE>
8- Certificate of Compliance
Each access person shall certify within 30 days of the end of each calendar
year that with respect to this code of ethics he or she has:
(i) read and understood it;
(ii) complied with the requirements; and
(iii) disclosed or reported all personal securities transactions so
required by it.
9- Administration
(a) Upon learning of a violation of this code, the Underwriter may impose
such sanctions as it deems appropriate, including, inter alia, a
letter of censure or suspension or termination of the employment of
the violator.
(b) At least annually the Underwriter will furnish a written report to the
Board of Directors of an investment company client that:
(i) Describes any issues arising under this code or procedures since
the last report, including all material violations of the code or
procedures and any sanctions imposed in response.
(ii) Certifies that procedures reasonably necessary to prevent access
persons from violating this code have been adopted.
