<PAGE>
American Life
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
&
SEMI-ANNUAL REPORTS OF
MUTUAL OF AMERICA INVESTMENT CORPORATION
SCUDDER VARIABLE LIFE INVESTMENT FUND
AMERICAN CENTURY VP CAPITAL APPRECIATION FUND
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND II:
CONTRAFUND AND ASSET MANAGER PORTFOLIOS
JUNE 30, 1997
This report is not to be construed as an offering for sale of any Variable
Policy. No offering is made except in conjunction with a prospectus which must
precede or accompany this report.
<PAGE>
THE AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
JUNE 30, 1997
Dear Participant:
We are pleased to send you the 1997 Semi-Annual Report of American Life's
Separate Account No. 2. This Account, which commenced operations in late 1993,
is an investment vehicle for participants in our Individual Retirement Annuity
programs, Thrift Plans, as well as for Flexible Premium Annuity policyholders.
Separate Account No. 2 consists of sixteen distinct funds. Each invests in
shares of one of eight funds of Mutual of America Investment Corporation (the
"Investment Company"): the Money Market, All America, Equity Index, Bond,
Short-Term Bond, Mid-Term Bond, Composite and Aggressive Equity Funds; three
portfolios of Scudder Variable Life Investment Fund ("Scudder"): the Bond,
Capital Growth and International Portfolios; the VP Capital Appreciation Fund
(formerly TCI Growth) of American Century Variable Portfolios, Inc. ("American
Century"); the Balanced Portfolio of Acacia Capital Corporation's Calvert
Responsibly Invested Portfolios ("Calvert"); the Equity-Income Portfolio of
Fidelity Investments Variable Insurance Products Fund ("Fidelity VIP"); and
the Contrafund and Asset Manager Portfolios of Fidelity Investments Variable
Insurance Products Fund II ("Fidelity VIP II").
Each of the funds of Separate Account No. 2 owns shares in a similarly named
fund of the Investment Company, portfolio of Scudder, fund of American
Century, portfolio of Calvert, portfolio of Fidelity VIP and portfolio of
Fidelity VIP II. The investment results of each of the funds of Separate
Account No. 2 are based on the performance of the corresponding funds or
portfolios of the Investment Company, Scudder, American Century, Calvert,
Fidelity VIP and Fidelity VIP II.
The Separate Account funds invest in funds and portfolios which have the
following investment objectives:
THE INVESTMENT COMPANY MONEY MARKET FUND: This Fund seeks to obtain high
current income to the extent consistent with the maintenance of liquidity,
investment quality and stability of capital through investments in money
market instruments and other short-term debt securities.
THE INVESTMENT COMPANY ALL AMERICA FUND: The investment objective for
approximately 60% of the assets of this Fund (the "Indexed Assets") is to
provide investment results that, to the extent practical, correspond to the
performance of the Standard & Poor's Composite Index of 500 Stocks (the "S&P
500"). The Indexed Assets are invested in the same manner as the Equity Index
Fund described below. The investment objective for the remaining approximately
40% of the assets (the "Active Assets") is to achieve a high level of total
return, through both appreciation of capital and, to a lesser extent, current
income, by means of a diversified portfolio of securities that may include
common stocks, securities convertible into common stocks, bonds and money
market instruments.
THE INVESTMENT COMPANY EQUITY INDEX FUND: This Fund seeks to duplicate, as
closely as possible, the investment performance of the S&P 500 by investing in
approximately 500 publicly traded stocks that comprise the S&P 500 ("Standard
& Poor's 500", "S&P" and "S&P 500" are trademarks of Standard & Poor's
Corporation).
THE INVESTMENT COMPANY BOND FUND: This Fund seeks a high level of current
income, together with preservation of capital, through investments in such
securities as U.S. Government, corporate and other notes and bonds.
THE INVESTMENT COMPANY SHORT-TERM BOND FUND: This Fund seeks a high level of
current income, together with preservation of capital, through investments in
such securities as U.S. Government, corporate and other notes and bonds with
an average maturity of one to three years.
THE INVESTMENT COMPANY MID-TERM BOND FUND: This Fund seeks a high level of
current income, together with preservation of capital, through investments in
such securities as U.S. Government, corporate and other notes and bonds with
an average maturity of three to seven years.
THE INVESTMENT COMPANY COMPOSITE FUND: This Fund seeks a high total rate of
return on investments, through both appreciation of capital and current
income, through investments in a diversified portfolio of common stocks, bonds
and money market instruments.
THE INVESTMENT COMPANY AGGRESSIVE EQUITY FUND: The investment objective for
approximately half of the assets of the Fund is to achieve capital
appreciation by investing in companies believed to possess above-average
growth potential. Growth can be in the areas of earnings or gross sales which
can be measured in either dollars or in unit volume. The investment objective
for the other half of the assets of the Fund is to achieve capital
appreciation by investing in companies believed to possess valuable assets or
whose securities are undervalued in the marketplace in relation to factors
such as a company's assets, earnings or growth potential.
I
<PAGE>
THE SCUDDER BOND PORTFOLIO: This Portfolio seeks a high level of income
consistent with a high quality portfolio of debt securities.
THE SCUDDER CAPITAL GROWTH PORTFOLIO: This Portfolio seeks to maximize long-
term capital growth through a broad and flexible investment program. The
Portfolio invests in marketable securities, principally common stocks, and
consistent with its objective, may invest in preferred stocks and short-term
debt instruments.
THE SCUDDER INTERNATIONAL PORTFOLIO: This Portfolio seeks long-term capital
growth through investing primarily in diversified holdings of marketable
foreign equity investments in companies, wherever organized, which do business
primarily outside the United States and which are listed on foreign exchanges.
THE VP CAPITAL APPRECIATION FUND: This Fund seeks capital growth over time
by investing primarily in common stocks (including securities convertible into
common stocks and, at times, well-established foreign stocks) of growth
companies across all capitalization ranges that are considered by management
to have better-than-average prospects for appreciation. Prior to May 1, 1997,
this Fund was known as TCI Growth Fund.
THE CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO: This Portfolio seeks a
total return above the rate of inflation through an actively managed portfolio
of stocks, bonds and money market instruments selected with a concern for the
social impact of each investment.
THE FIDELITY VIP EQUITY-INCOME PORTFOLIO: This Portfolio seeks reasonable
income by investing primarily in income-producing equity securities while
considering the potential for capital appreciation. Secondarily, the
Portfolio's goal is to achieve a yield that exceeds the composite yield on the
securities comprising the S&P 500.
THE FIDELITY VIP II CONTRAFUND PORTFOLIO: This Portfolio seeks long-term
capital appreciation by investing primarily in a broad variety of common
stocks using both growth-oriented and contrarian disciplines.
THE FIDELITY VIP II ASSET MANAGER PORTFOLIO: This Portfolio seeks high long-
term return with reduced risk by using a broadly diversified mix of stocks,
bonds and short-term fixed-income investments.
For the six months ended June 30, 1997, the following total returns were
experienced in these sixteen Separate Account funds:
<TABLE>
<S> <C>
Investment Company Money Market Fund(1)............................ + 1.9%
Investment Company All America Fund................................ +16.1%
Investment Company Equity Index Fund............................... +19.6%
Investment Company Bond Fund....................................... + 2.1%
Investment Company Short-Term Bond Fund............................ + 2.0%
Investment Company Mid-Term Bond Fund.............................. + 2.0%
Investment Company Composite Fund.................................. + 6.4%
Investment Company Aggressive Equity Fund.......................... +12.4%
Scudder Bond Fund.................................................. + 2.3%
Scudder Capital Growth Fund........................................ +23.1%
Scudder International Fund......................................... +13.2%
American Century VP Capital Appreciation Fund...................... - 4.1%
Calvert Responsibly Invested Balanced Fund......................... + 9.6%
Fidelity VIP Equity-Income Fund.................................... +15.6%
Fidelity VIP II Contrafund......................................... +10.8%
Fidelity VIP II Asset Manager Fund................................. +10.4%
</TABLE>
-------
(1) The current seven-day net annualized yield as of 8/19/97 was 3.95%
and is not necessarily indicative of future actual yields.
Total return is equal to the changes in the value of a unit of participation
in a fund from the beginning to the end of the specified period. It reflects
investment income earned and reinvested plus the changes in the market value
(whether realized or unrealized) of the securities in the respective fund or
portfolio of the Investment Company, Scudder, American Century, Calvert or
Fidelity during the indicated period. Results are net of all charges,
including a monthly service charge (assessed against an average account
balance for all individually allocated contracts) based upon a hypothetical
$1,000 invested at the
II
<PAGE>
beginning of the period. These returns are not guaranteed and are not
necessarily indicative of the future investment performance of the particular
fund. Withdrawals and contributions made within a period would experience
different rates of return based on the respective unit values on the dates of
such transactions.
This report includes financial statements for each fund of Separate Account
No. 2. Following this report are the financial statements for each similarly
named fund of the Investment Company, portfolio of Scudder, fund of American
Century, portfolio of Calvert and portfolios of Fidelity VIP and VIP II.
I hope you will find this report helpful and informative.
Sincerely,
/s/ Manfred Altstadt
Manfred Altstadt
Senior Executive Vice President
and Chief Financial Officer,
The American Life Insurance Company of
New York
III
<PAGE>
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
SEMI-ANNUAL REPORT OF AMERICAN LIFE SEPARATE ACCOUNT NO. 2............... I
Statement of Assets and Liabilities..................................... VI
Statement of Operations................................................. VIII
Statements of Changes in Net Assets..................................... X
Notes to Financial Statements........................................... XIII
SEMI-ANNUAL REPORT OF MUTUAL OF AMERICA INVESTMENT CORPORATION........... 1
President's Message..................................................... 1
Portfolio Management Discussions........................................ 2
Portfolio of Investments in Securities:
Money Market Fund..................................................... 9
All America Fund...................................................... 10
Equity Index Fund..................................................... 19
Bond Fund............................................................. 25
Short-Term Bond Fund.................................................. 28
Mid-Term Bond Fund.................................................... 30
Composite Fund........................................................ 32
Aggressive Equity Fund................................................ 37
Statement of Assets and Liabilities..................................... 44
Statement of Operations................................................. 45
Statements of Changes in Net Assets..................................... 46
Financial Highlights.................................................... 48
Notes to Financial Statements........................................... 54
SEMI-ANNUAL REPORT OF SCUDDER VARIABLE LIFE INVESTMENT FUND
SEMI-ANNUAL REPORT OF VP CAPITAL APPRECIATION FUND OF AMERICAN CENTURY
VARIABLE PORTFOLIOS, INC.
SEMI-ANNUAL REPORT OF CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO OF
ACACIA CAPITAL CORPORATION
SEMI-ANNUAL REPORT OF FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND: EQUITY-INCOME PORTFOLIO
SEMI-ANNUAL REPORT OF FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II: CONTRAFUND PORTFOLIO
SEMI-ANNUAL REPORT OF FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II: ASSET MANAGER PORTFOLIO
</TABLE>
IV
<PAGE>
[This page intentionally left blank]
V
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ ----------
<S> <C> <C> <C> <C>
Assets:
Investments in Mutual of America
Investment Corporation at market
value
(Cost:
Money Market Fund -- $168,697
All America Fund -- $3,803,724
Equity Index Fund -- $2,735,228
Bond Fund -- $709,607)
(Notes 1 and 2)................. $168,867 $4,602,190 $3,149,756 $693,602
Due From (To) General Account.... 12,621 341,329 218,309 42,037
-------- ---------- ---------- ----------
Net Assets....................... $181,488 $4,943,519 $3,368,065 $735,639
======== ========== ========== ==========
Unit Value at June 30, 1997 (Note
5).............................. $1.91 $6.27 $2.06 $2.81
======== ========== ========== ==========
Number of Units Outstanding at
June 30, 1997 (Note 5).......... 94,957 788,389 1,638,132 261,880
======== ========== ========== ==========
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------
AGGRESSIVE
SHORT-TERM MID-TERM COMPOSITE EQUITY
BOND FUND BOND FUND FUND FUND
------------ ----------- ------------ ----------
<S> <C> <C> <C> <C>
Assets:
Investments in Mutual of America
Investment Corporation at market
value
(Cost:
Short-Term Bond Fund -- $22,009
Mid-Term Bond Fund -- $49,185
Composite Fund -- $2,110,301
Aggressive Equity Fund --
$3,777,428)
(Notes 1 and 2)................. $22,115 $44,889 $2,124,254 $4,118,078
Due From (To) General Account.... (2,132) 11,302 33,021 (67,650)
-------- ---------- ---------- ----------
Net Assets....................... $19,983 $56,191 $2,157,275 $4,050,428
======== ========== ========== ==========
Unit Value at June 30, 1997 (Note
5).............................. $1.16 $1.21 $4.00 $2.02
======== ========== ========== ==========
Number of Units Outstanding at
June 30, 1997 (Note 5).......... 17,173 46,277 539,630 2,002,096
======== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VI
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN
SCUDDER CENTURY CALVERT
-------------------------------- ------------ -----------
CAPITAL VP CAPITAL RESPONSIBLY
BOND GROWTH INTERNATIONAL APPRECIATION INVESTED
FUND FUND FUND FUND FUND
------- ---------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in Scudder Portfolios,
American Century VP Capital
Appreciation Fund and Calvert
Responsibly Invested Portfolio at
market value
(Cost:
Scudder Bond Fund -- $66,461
Scudder Capital Growth Fund --
$2,269,480
Scudder International Fund -- $897,876
American Century VP Capital
Appreciation Fund -- $745,107
Calvert Responsibly Invested Fund --
$355,495)
(Notes 1 and 2)........................ $66,849 $2,675,613 $1,021,411 $684,099 $392,536
Due From (To) General Account........... 16,806 167,487 313,134 (7,007) 1,953
------- ---------- ---------- -------- --------
Net Assets.............................. $83,655 $2,843,100 $1,334,545 $677,092 $394,489
======= ========== ========== ======== ========
Unit Value at June 30, 1997 (Note 5).... $11.76 $27.25 $15.23 $11.07 $2.45
======= ========== ========== ======== ========
Number of Units Outstanding at June 30,
1997
(Note 5)............................... 7,114 104,339 87,645 61,151 160,900
======= ========== ========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
---------------------------------------
VIP VIP II VIP II
EQUITY-INCOME CONTRA ASSET MANAGER
FUND FUND FUND
------------- ---------- -------------
<S> <C> <C> <C>
Assets:
Investments in Fidelity Portfolios at
market value
(Cost:
VIP Equity-Income Fund -- $1,920,050
VIP II Contra Fund -- $2,775,098
VIP II Asset Manager Fund -- $890,179)
(Notes 1 and 2)...................... $2,125,820 $3,230,138 $939,286
Due From (To) General Account......... (88,264) (44,296) 5,736
---------- ---------- --------
Net Assets............................ $2,037,556 $3,185,842 $945,022
========== ========== ========
Unit Value at June 30, 1997 (Note 5).. $25.38 $18.41 $19.60
========== ========== ========
Number of Units Outstanding at June
30, 1997 (Note 5).................... 80,281 173,041 48,222
========== ========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VII
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-------------------------------------------------
MONEY MARKET ALL AMERICA EQUITY INDEX BOND
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and 4):
Dividends................... $ -- $ -- $ -- $ --
Total Income................. -- -- -- --
------- -------- -------- --------
Expenses (Note 3):
Fees........................ 826 23,269 15,793 5,013
Administrative Expenses..... 388 3,144 1,507 669
------- -------- -------- --------
Total Expenses............... 1,214 26,413 17,300 5,682
------- -------- -------- --------
Net Investment Income (Loss). (1,214) (26,413) (17,300) (5,682)
------- -------- -------- --------
Net Realized and Unrealized
Gain (Loss) on Investments
(Note 1):
Net realized gain (loss) on
investments................ (585) 29,715 71,622 (16,665)
Net unrealized appreciation
(depreciation) of
investments................ 4,114 596,897 392,364 35,990
------- -------- -------- --------
Net Realized and Unrealized
Gain (Loss) on Investments.. 3,529 626,612 463,986 19,325
------- -------- -------- --------
Net Increase (Decrease) in
Net Assets Resulting from
Operations.................. $ 2,315 $600,199 $446,686 $ 13,643
======= ======== ======== ========
<CAPTION>
INVESTMENT COMPANY
-------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE
BOND FUND BOND FUND FUND EQUITY FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and 4):
Dividends................... $ -- $ -- $ -- $ --
------- -------- -------- --------
Total income................. -- -- -- --
------- -------- -------- --------
Expenses (Note 3):
Fees........................ 157 1,115 11,726 20,042
Administrative Expenses..... 68 114 1,831 873
------- -------- -------- --------
Total Expenses............... 225 1,229 13,557 20,915
------- -------- -------- --------
Net Investment Income (Loss). (225) (1,229) (13,557) (20,915)
------- -------- -------- --------
Net Realized and Unrealized
Gain (Loss) on Investments
(Note 1):
Net realized gain (loss) on
investments................ 9 (33,416) (5,052) 20,591
Net unrealized appreciation
(depreciation) of
investments................ 714 36,147 144,259 398,493
------- -------- -------- --------
Net Realized and Unrealized
Gain (Loss) on Investments.. 723 2,731 139,207 419,084
------- -------- -------- --------
Net Increase (Decrease) in
Net Assets Resulting from
Operations.................. $ 498 $ 1,502 $125,650 $398,169
======= ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VIII
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN
SCUDDER CENTURY CALVERT
------------------------------ ------------ -----------
CAPITAL VP CAPITAL RESPONSIBLY
BOND GROWTH INTERNATIONAL APPRECIATION INVESTED
FUND FUND FUND FUND FUND
------ -------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and 4):
Dividends.............. $1,440 $128,418 $ 17,852 $ 14,033 $ --
------ -------- -------- -------- -------
Total income............ 1,440 128,418 17,852 14,033 --
------ -------- -------- -------- -------
Expenses (Note 3):
Fees................... 258 11,175 4,997 3,504 1,756
Administrative Expenses. 316 595 150 116 416
------ -------- -------- -------- -------
Total Expenses.......... 574 11,770 5,147 3,620 2,172
------ -------- -------- -------- -------
Net Investment Income
(Loss)................. 866 116,648 12,705 10,413 (2,172)
------ -------- -------- -------- -------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note
1):
Net realized gain
(loss) on investments. (7) 49,610 11,413 (22,974) 1,248
Net unrealized
appreciation
(depreciation) of
investments........... 113 240,908 89,452 (11,871) 30,934
------ -------- -------- -------- -------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 106 290,518 100,865 (34,845) 32,182
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ 972 $407,166 $113,570 $(24,432) $30,010
====== ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
------------------------------------
VIP VIP II VIP II
EQUITY-INCOME CONTRA ASSET MANAGER
FUND FUND FUND
------------- -------- -------------
<S> <C> <C> <C>
Investment Income and Expenses:
Income (Notes 1 and 4):
Dividends................................ $147,393 $ 87,685 $82,858
-------- -------- -------
Total income.............................. 147,393 87,685 82,858
-------- -------- -------
Expenses (Note 3):
Fees..................................... 10,173 17,632 4,679
Administrative Expenses.................. 1,795 1,249 580
-------- -------- -------
Total Expenses............................ 11,968 18,881 5,259
-------- -------- -------
Net Investment Income (Loss).............. 135,425 68,804 77,599
-------- -------- -------
Net Realized and Unrealized Gain (Loss) on
Investments (Note 1):
Net realized gain (loss) on investments.. 16,060 34,217 635
Net unrealized appreciation
(depreciation) of investments........... 94,401 164,191 1,194
-------- -------- -------
Net Realized and Unrealized Gain (Loss) on
Investments.............................. 110,461 198,408 1,829
-------- -------- -------
Net Increase (Decrease) in Net Assets
Resulting from Operations................ $245,886 $267,212 $79,428
======== ======== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
IX
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-----------------------------------------------------------------------------
MONEY MARKET FUND ALL AMERICA FUND EQUITY INDEX FUND
------------------------- ------------------------- -------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE YEAR ENDED JUNE YEAR ENDED JUNE YEAR ENDED
30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (1,214) $ 1,708 $ (26,413) $ 123,170 $ (17,300) $ 35,099
Net realized gain
(loss) on investments. (585) (639) 29,715 131,267 71,622 82,968
Net unrealized
appreciation
(depreciation) of
investments .......... 4,114 812 596,897 158,864 392,364 10,360
-------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets
resulting from
operations............ 2,315 1,881 600,199 413,301 446,686 128,427
-------- --------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 56,040 181,254 948,716 1,923,323 1,078,034 1,006,616
Withdrawals............ (1,619) (105,802) (259,968) (467,717) (110,733) (601,063)
Net Transfers.......... 886 (66,628) 301,636 399,364 480,646 466,940
-------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit transactions. 55,307 8,824 990,384 1,854,970 1,447,947 872,493
-------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 57,622 10,705 1,590,583 2,268,271 1,894,633 1,000,920
Net Assets:
Beginning of
Period/Year............ 123,866 113,161 3,352,936 1,084,665 1,473,432 472,512
-------- --------- ---------- ---------- ---------- ----------
End of Period/Year...... $181,488 $ 123,866 $4,943,519 $3,352,936 $3,368,065 $1,473,432
======== ========= ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-----------------------------------------------------------------------------
SHORT-TERM MID-TERM
BOND FUND BOND FUND BOND FUND
------------------------- ------------------------- -------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE YEAR ENDED JUNE YEAR ENDED JUNE YEAR ENDED
30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (5,682) $ 50,654 $ (225) $ 544 $ (1,229) $ 40,162
Net realized gain
(loss) on investments. (16,665) 561 9 13 (33,416) (136)
Net unrealized
appreciation
(depreciation) of
investments .......... 35,990 (52,401) 714 (480) 36,147 (39,780)
-------- --------- ------- ------- --------- --------
Net Increase (Decrease)
in net assets resulting
from operations........ 13,643 (1,186) 498 77 1,502 246
-------- --------- ------- ------- --------- --------
From Unit Transactions:
Contributions.......... 113,895 666,539 6,539 15,543 7,805 27,912
Withdrawals............ (32,811) (115,522) (87) (1,474) ( 75,539) (20,124)
Net Transfers.......... (261,360) 176,333 (7,233) 294 (187,535) 280,396
-------- --------- ------- ------- --------- --------
Net Increase (Decrease)
from unit transactions. (180,276) 727,350 (781) 14,363 (255,269) 288,184
-------- --------- ------- ------- --------- --------
Net Increase (Decrease)
in Net Assets.......... (166,633) 726,164 (283) 14,440 (253,767) 288,430
Net Assets:
Beginning of
Period/Year............ 902,272 176,108 20,266 5,826 309,958 21,528
-------- --------- ------- ------- --------- --------
End of Period/Year...... $735,639 $ 902,272 $19,983 $20,266 $ 56,191 $309,958
======== ========= ======= ======= ========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
X
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------------------------------
COMPOSITE FUND AGGRESSIVE EQUITY FUND
------------------------- -------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE YEAR ENDED JUNE YEAR ENDED
30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Net investment income
(loss)................ $ (13,557) $ 189,648 $ (20,915) $ 340,535
Net realized gain
(loss) on investments. (5,052) (10,035) 20,591 113,218
Net unrealized
appreciation
(depreciation) of
investments........... 144,259 (69,001) 398,493 (71,005)
---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets resulting
from operations........ 125,650 110,612 398,169 382,748
---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 372,609 957,159 891,739 1,334,514
Withdrawals............ (90,655) (394,678) (152,137) 13,683
Net Transfers.......... 38,100 81,515 420,032 (97,433)
---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit transactions. 320,054 643,996 1,159,634 1,250,764
---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 445,704 754,608 1,557,803 1,633,512
Net Assets:
Beginning of
Period/Year............ 1,711,571 956,963 2,492,625 859,113
---------- ---------- ---------- ----------
End of Period/Year...... $2,157,275 $1,711,571 $4,050,428 $2,492,625
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
SCUDDER
-----------------------------------------------------------------------------
BOND FUND CAPITAL GROWTH FUND INTERNATIONAL FUND
------------------------- ------------------------- -------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE YEAR ENDED JUNE YEAR ENDED JUNE YEAR ENDED
30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31, 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 866 $ 1,841 $ 116,648 $ 65,921 $ 12,705 $ 2,996
Net realized gain
(loss) on investments. (7) (844) 49,610 41,159 11,413 43,909
Net unrealized
appreciation
(depreciation) of
investments........... 113 (511) 240,908 86,006 89,452 24,939
------- -------- ---------- ---------- ---------- ---------
Net Increase (Decrease)
in net assets resulting
from operations........ 972 486 407,166 193,086 113,570 71,844
------- -------- ---------- ---------- ---------- ---------
From Unit Transactions:
Contributions.......... 37,968 36,598 537,606 774,932 172,209 325,676
Withdrawals............ (2,918) (28,324) (90,899) (338,868) (55,155) (187,224)
Net Transfers.......... 3,131 8,527 361,121 209,415 162,022 381,535
------- -------- ---------- ---------- ---------- ---------
Net Increase (Decrease)
from unit transactions. 38,181 16,801 807,828 645,479 279,076 519,987
------- -------- ---------- ---------- ---------- ---------
Net Increase (Decrease)
in Net Assets.......... 39,153 17,287 1,214,994 838,565 392,646 591,831
Net Assets:
Beginning of
Period/Year............ 44,502 27,215 1,628,106 789,541 941,899 350,068
------- -------- ---------- ---------- ---------- ---------
End of Period/Year...... $83,655 $ 44,502 $2,843,100 $1,628,106 $1,334,545 $ 941,899
======= ======== ========== ========== ========== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
XI
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AMERICAN CENTURY CALVERT
-------------------------------- --------------------------
VP CAPITAL APPRECIATION FUND RESPONSIBLY INVESTED FUND
-------------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 10,413 $ 72,186 $ (2,172) $ 14,195
Net realized gain
(loss) on investments. (22,974) (24,573) 1,248 19,117
Net Unrealized
appreciation
(depreciation) of
investments............ (11,871) (76,750) 30,934 (14,038)
-------------- -------------- -------- --------
Net Increase (Decrease)
in net assets resulting
from operations........ (24,432) (29,137) 30,010 19,274
-------------- -------------- -------- --------
From Unit Transactions:
Contributions.......... 79,163 563,738 136,117 146,610
Withdrawals............ (59,737) (154,878) (17,782) (34,382)
Net Transfers.......... (98,283) (288,819) 21,576 1,935
-------------- -------------- -------- --------
Net Increase (Decrease)
from unit transactions. (78,857) 120,041 139,911 114,163
-------------- -------------- -------- --------
Net Increase (Decrease)
in Net Assets.......... (103,289) 90,904 169,921 133,437
Net Assets:
Beginning of
Period/Year............ 780,381 689,477 224,568 91,131
-------------- -------------- -------- --------
End of Period/Year...... $ 677,092 $ 780,381 $394,489 $224,568
============== ============== ======== ========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
--------------------------------------------------------------------------------
VIP VIP II VIP II
EQUITY-INCOME CONTRA ASSET MANAGER
FUND FUND FUND
-------------------------- -------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 135,425 $ 13,554 $ 68,804 $ (15,320) $ 77,599 $ 5,594
Net realized gain
(loss) on investments. 16,060 20,214 34,217 21,162 635 1,185
Net Unrealized
appreciation
(depreciation) of
investments........... 94,401 92,537 164,191 287,039 1,194 44,376
---------- ---------- ---------- ---------- -------- --------
Net Increase (Decrease)
in net assets resulting
from operations........ 245,886 126,305 267,212 292,881 79,428 51,155
---------- ---------- ---------- ---------- -------- --------
From Unit Transactions:
Contributions.......... 413,263 1,093,823 614,328 1,028,719 217,809 438,727
Withdrawals............ (127,921) (79,489) 2,138 (263,384) (45,455) (29,116)
Net Transfers.......... 169,048 (152,309) (241,670) 1,082,254 39,756 105,633
---------- ---------- ---------- ---------- -------- --------
Net Increase (Decrease)
from unit transactions. 454,390 862,025 374,796 1,847,589 212,110 515,244
---------- ---------- ---------- ---------- -------- --------
Net Increase (Decrease)
in Net Assets.......... 700,276 988,330 642,008 2,140,470 291,538 566,399
Net Assets:
Beginning of
Period/Year/........... 1,337,280 348,950 2,543,834 403,364 653,484 87,085
---------- ---------- ---------- ---------- -------- --------
End of Period/Year...... $2,037,556 $1,337,280 $3,185,842 $2,543,834 $945,022 $653,484
========== ========== ========== ========== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
XII
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Separate Account No. 2 of The American Life Insurance Company of New York
("Company") was established in conformity with New York Insurance Law and
commenced operations on November 19, 1993 as a unit investment trust. On that
date, the following American Life funds became available as investment
options: Money Market Fund, All America Fund, Equity Index Fund, Bond Fund,
Short-Term Bond Fund, Mid-Term Bond Fund, Composite Fund, Scudder Bond Fund,
Scudder Capital Growth Fund, Scudder International Fund, American Century VP
Capital Appreciation Fund (formerly the TCI Growth Fund), and the Calvert
Responsibly Invested Balanced Fund. The American Life funds invest in a
corresponding fund of Mutual of America Investment Corporation ("Investment
Company"), portfolio of Scudder Variable Life Investment Fund ("Scudder"),
fund of American Century Variable Portfolios Inc. ("American Century") and a
corresponding fund of Calvert Responsibly Invested Balanced Portfolio of
Acacia Capital Corporation ("Calvert").
On May 2, 1994 the Investment Company Aggressive Equity Fund became
available as an investment option to Separate Account No. 2. Also, prior to
May 2, 1994 the All America Fund was known as the Stock Fund and had a
different objective and no sub-advisors.
On May 1, 1995, Fidelity Investments' Equity-Income, Contrafund and Asset
Manager Funds became available to Separate Account No. 2 as an investment
option. The Fidelity Equity-Income Fund invests in the corresponding portfolio
of Fidelity Variable Insurance Products Fund and the Contrafund and Asset
Manager Funds invest in the corresponding portfolios of Fidelity Variable
Insurance Products Fund II (collectively, "Fidelity").
Separate Account No. 2 was formed by the Company to support the operations
of the Company's group and individual variable accumulation annuity contracts
("Contracts"). The assets of Separate Account No. 2 are the property of the
Company. The portion of Separate Account No. 2's assets applicable to the
Contracts will not be charged with liabilities arising out of any other
business the Company may conduct.
The significant accounting policies of Separate Account No. 2 are as follows:
Investment Valuation--Investments are made in shares of the Investment
Company, Scudder, American Century, Calvert and Fidelity and are valued at the
reported net asset values of the respective Funds or Portfolios.
Investment Transactions--Investment transactions are recorded on the trade
date. Realized gains and losses on sales of investments are determined based
on the average cost of the investment sold.
Federal Income Taxes--Separate Account No. 2 will be treated as a part of
the Company and will not be taxed separately as a "regulated investment
company" under existing law. The Company is taxed as a life insurance company
under the life insurance tax provisions of the Internal Revenue Code of 1986.
No provision for income taxes is required in the accompanying financial
statements.
XIII
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. INVESTMENTS
The number of shares owned by Separate Account No. 2 and their respective
net asset values (rounded to the nearest cent) per share at June 30, 1997 are
as follows:
<TABLE>
<CAPTION>
NUMBER OF NET ASSET
SHARES VALUE
--------- ---------
<S> <C> <C>
Investment Company Funds:
Money Market Fund.................................... 138,267 $ 1.22
All America Fund..................................... 1,615,030 2.85
Equity Index Fund.................................... 1,638,629 1.92
Bond Fund............................................ 693,601 1.42
Short-Term Bond Fund................................. 20,934 1.06
Mid-Term Bond Fund................................... 48,684 0.92
Composite Fund....................................... 1,119,233 1.90
Aggressive Equity Fund............................... 2,470,631 1.67
Scudder Portfolios:
Bond Portfolio--Class "A"............................ 9,992 6.69
Capital Growth Portfolio--Class "A".................. 141,342 18.93
International Portfolio--Class "A"................... 69,201 14.76
American Century VP Capital Appreciation Fund......... 70,818 9.66
Calvert Responsibly Invested Portfolio................ 200,276 1.96
Fidelity Portfolios:
Equity-Income........................................ 96,365 22.06
Contrafund........................................... 180,153 17.93
Asset Manager........................................ 56,583 16.60
</TABLE>
3. EXPENSES
Administrative Charges--In connection with its administrative functions, the
Company deducts daily, at an annual rate of .40%, an amount from the value of
the net assets of all funds except the VP Capital Appreciation Fund for which
the annual rate is .20% and each Fidelity fund for which the annual rate is
.30%.
In addition, a deduction of up to $2.00 may be made at the end of each month
from a participant's account, except that such charge shall not exceed 1/12 of
1% of the balance in such account in any month.
Distribution Expense Charge--The Insurance Company will make a deduction
daily from the value of the net assets of each Fund, at an annual rate of
.35%, to cover anticipated distribution expenses.
Mortality and Expense Risk Charge--The Company assumes the risk to make
annuity payments in accordance with annuity tables provided in the Contracts
regardless of how long a participant lives and also assumes certain expense
risks associated with such annuity payments. For assuming the risk, the
Company deducts daily, at an annual rate of .50%, an amount from the value of
the net assets of each fund.
4. DIVIDENDS
All dividend distributions are reinvested in additional shares of the
respective funds or portfolios at net asset value. No dividend distributions
have been declared and none have been paid by the Investment Company during
the first six months of 1997. It is the Investment Company's practice to
declare and pay dividends at the end of the year.
On January 29, 1997, February 26, 1997 and April 28, 1997, dividends were
paid by the Scudder Bond Portfolio. The combined amount of the dividends was
$1,440.
On January 29, 1997, February 26, 1997 and April 28, 1997, dividends were
paid by the Scudder Capital Growth Portfolio. The combined amount of the
dividends was $128,418.
On February 26, 1997 a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $17,852.
XIV
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
On March 29, 1997 a dividend was paid by the American Century VP Capital
Appreciation Fund. The amount of the dividend was $14,033.
On February 7, 1997 a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $147,393.
On February 7, 1997, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $87,685.
On February 7, 1997, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $82,858.
5. FINANCIAL HIGHLIGHTS
Shown below are financial highlights for a Unit outstanding throughout the
six months ended June 30, 1997 and each of the previous years or, if not in
existence a full year, the initial period ended December 31:
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------
MONEY MARKET FUND
---------------------------
1997 1996 1995 1994
------ ------ ------ ------
<S> <C> <C> <C> <C>
Unit value, beginning of year/period............... $ 1.87 $ 1.80 $ 1.72 $ 1.68
====== ====== ====== ======
Unit value, end of year/period..................... $ 1.91 $ 1.87 $ 1.80 $ 1.72
====== ====== ====== ======
Units outstanding, end of year/period.............. 94,957 66,104 62,822 29,648
====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
--------------------------------------
ALL AMERICA FUND
--------------------------------------
1997 1996 1995 1994 1993
--------- ------- ------- ------ -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period..... $ 5.39 $ 4.52 $ 3.35 $ 3.36 $3.31
========= ======= ======= ====== =====
Unit value, end of year/period........... $ 6.27 $ 5.39 $ 4.52 $ 3.35 $3.36
========= ======= ======= ====== =====
Units outstanding, end of year/period.... 788,389 621,536 239,745 91,238 27
========= ======= ======= ====== =====
<CAPTION>
INVESTMENT COMPANY
--------------------------------------
EQUITY INDEX FUND
--------------------------------------
1997 1996 1995 1994 1993
--------- ------- ------- ------ -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period..... $ 1.72 $ 1.42 $ 1.05 $ 1.05 $1.04
========= ======= ======= ====== =====
Unit value, end of year/period........... $ 2.06 $ 1.72 $ 1.42 $ 1.05 $1.05
========= ======= ======= ====== =====
Units outstanding, end of year/period.... 1,638,132 858,298 333,578 35,717 185
========= ======= ======= ====== =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-----------------------------
BOND FUND
-----------------------------
1997 1996 1995 1994
------- ------- ------ ------
<S> <C> <C> <C> <C>
Unit value, beginning of year/period............. $ 2.75 $ 2.69 $ 2.28 $ 2.39
======= ======= ====== ======
Unit value, end of year/period................... $ 2.81 $ 2.75 $ 2.69 $ 2.28
======= ======= ====== ======
Units outstanding, end of year/period............ 261,880 328,371 65,503 23,434
======= ======= ====== ======
</TABLE>
XV
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-------------------------
SHORT-TERM BOND FUND
-------------------------
1997 1996 1995 1994
------ ------ ----- -----
<S> <C> <C> <C> <C>
Unit value, beginning of year/period................. $ 1.14 $ 1.10 $1.03 $1.03
====== ====== ===== =====
Unit value, end of year/period....................... $ 1.16 $ 1.14 $1.10 $1.03
====== ====== ===== =====
Units outstanding, end of year/period................ 17,173 17,798 5,302 3,639
====== ====== ===== =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------
MID-TERM BOND FUND
---------------------------
1997 1996 1995 1994
------ ------- ------ -----
<S> <C> <C> <C> <C>
Unit value, beginning of year/period............... $ 1.19 $ 1.16 $ 1.01 $1.06
====== ======= ====== =====
Unit value, end of year/period..................... $ 1.21 $ 1.19 $ 1.16 $1.01
====== ======= ====== =====
Units outstanding, end of year/period.............. 46,277 260,862 18,581 3,694
====== ======= ====== =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-------------------------------------
COMPOSITE FUND
-------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period...... $ 3.75 $ 3.39 $ 2.82 $ 2.95 $2.93
======= ======= ======= ======= =====
Unit value, end of year/period............ $ 4.00 $ 3.75 $ 3.39 $ 2.82 $2.95
======= ======= ======= ======= =====
Units outstanding, end of year/period..... 539,630 456,304 281,905 131,650 322
======= ======= ======= ======= =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-----------------------------------
AGGRESSIVE EQUITY FUND
-----------------------------------
1997 1996 1995 1994
--------- --------- ------- -------
<S> <C> <C> <C> <C>
Unit value, beginning of year/period........ $ 1.80 $ 1.43 $ 1.05 $ 1.00
========= ========= ======= =======
Unit value, end of year/period.............. $ 2.02 $ 1.80 $ 1.43 $ 1.05
========= ========= ======= =======
Units outstanding, end of year/period....... 2,002,096 1,386,311 599,553 106,710
========= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
SCUDDER
-----------------------------------
BOND FUND
-----------------------------------
1997 1996 1995 1994 1993
------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period........ $11.48 $11.30 $ 9.69 $10.32 $10.24
======= ====== ====== ====== ======
Unit value, end of year/period.............. $11.76 $11.48 $11.30 $ 9.69 $10.32
======= ====== ====== ====== ======
Units outstanding, end of year/period....... 7,114 3,877 2,407 799 --
======= ====== ====== ====== ======
<CAPTION>
SCUDDER
-----------------------------------
CAPITAL GROWTH FUND
-----------------------------------
1997 1996 1995 1994 1993
------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period........ $ 22.11 $18.64 $14.67 $16.46 $16.10
======= ====== ====== ====== ======
Unit value, end of year/period.............. $ 27.25 $22.11 $18.64 $14.67 $16.46
======= ====== ====== ====== ======
Units outstanding, end of year/period....... 104,339 73,641 42,366 22,116 59
======= ====== ====== ====== ======
</TABLE>
XVI
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SCUDDER
----------------------------------
INTERNATIONAL FUND
----------------------------------
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period......... $13.43 $11.85 $10.80 $11.06 $10.36
====== ====== ====== ====== ======
Unit value, end of year/period............... $15.23 $13.43 $11.85 $10.80 $11.06
====== ====== ====== ====== ======
Units outstanding, end of year/period........ 87,645 70,139 29,549 52,296 38
====== ====== ====== ====== ======
<CAPTION>
AMERICAN CENTURY
----------------------------------
VP CAPITAL APPRECIATION FUND
----------------------------------
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of year/period......... $11.53 $12.18 $ 9.39 $ 9.61 $ 9.38
====== ====== ====== ====== ======
Unit value, end of year/period............... $11.07 $11.53 $12.18 $ 9.39 $ 9.61
====== ====== ====== ====== ======
Units outstanding, end of year/period........ 61,151 67,688 56,618 13,116 20
====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
CALVERT
-----------------------------
RESPONSIBLY INVESTED FUND
-----------------------------
1997 1996 1995 1994
------- ------- ------ ------
<S> <C> <C> <C> <C>
Unit value, beginning of year/period............. $ 2.23 $ 2.01 $ 1.57 $ 1.64
======= ======= ====== ======
Unit value, end of year/period................... $ 2.45 $ 2.23 $ 2.01 $ 1.57
======= ======= ====== ======
Units outstanding, end of year/period............ 160,900 100,573 45,392 18,308
======= ======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
FIDELITY VIP
----------------------
EQUITY-INCOME FUND
----------------------
1997 1996 1995
------- ------- ------
<S> <C> <C> <C>
Unit value, beginning of year/period.................... $ 21.93 $ 19.43 $16.30
======= ======= ======
Unit value, end of year/period.......................... $ 25.38 $ 21.93 $19.43
======= ======= ======
Units outstanding, end of year/period................... 80,281 60,979 17,958
======= ======= ======
<CAPTION>
FIDELITY VIP II
----------------------
CONTRA FUND
----------------------
1997 1996 1995
------- ------- ------
<S> <C> <C> <C>
Unit value, beginning of year/period.................... $ 16.59 $ 13.85 $11.43
======= ======= ======
Unit value, end of year/period.......................... $ 18.41 $ 16.59 $13.85
======= ======= ======
Units outstanding, end of year/period................... 173,041 153,360 29,132
======= ======= ======
<CAPTION>
FIDELITY VIP II
----------------------
ASSET MANAGER FUND
----------------------
1997 1996 1995
------- ------- ------
<S> <C> <C> <C>
Unit value, beginning of year/period.................... $ 17.72 $ 15.66 $14.04
======= ======= ======
Unit value, end of year/period.......................... $ 19.60 $ 17.72 $15.66
======= ======= ======
Units outstanding, end of year/period................... 48,222 36,872 5,561
======= ======= ======
</TABLE>
XVII
<PAGE>
THE AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
320 Park Avenue New York, New York 10022-6839 212-224-1700
A subsidiary of Mutual of America Life Insurance Company
Mutual of America Life Insurance Company is a Registered Broker-Dealer and
Distributes the variable products of The American Life Insurance Company of New
York
