<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 SOCIAL BALANCED PORTFOLIO
FIDELITY INVESTMENTS(R) VARIABLE INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO
FIDELITY INVESTMENTS(R) VARIABLE INSURANCE PRODUCTS FUND II:
CONTRAFUND AND ASSET MANAGER PORTFOLIOS
JUNE 30, 1998
This report is not to be construed as an offering for sale of any Variable
Product. 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, 1998
Dear Policyowner:
We are pleased to send you the 1998 Semi-Annual Report of American Life's
Separate Account No. 2. This Account, which commenced operations in late 1993,
is an investment vehicle for owners of our Individual Retirement Annuity and
Flexible Premium Annuity contracts. 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 of American Century Variable Portfolios, Inc.
("American Century"); the Calvert Social Balanced Portfolio of Calvert
Variable Series, Inc. (formerly, 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.
I
<PAGE>
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.
THE SCUDDER BOND PORTFOLIO: This Portfolio seeks a high level of income
consistent with the prudent investment of capital through a flexible
investment program emphasizing high-grade bonds.
THE SCUDDER CAPITAL GROWTH PORTFOLIO: This Portfolio seeks to maximize long-
term capital growth by investing primarily in common stocks of medium-to-large
sized U.S. companies. The Portfolio seeks to keep the value of its shares more
stable than other capital growth mutual funds. While current income is not a
stated objective of the Portfolio, many of the Portfolio's securities may
provide regular dividends, which are also expected to grow over time.
THE SCUDDER INTERNATIONAL PORTFOLIO: This Portfolio seeks long-term growth
of capital primarily through a diversified portfolio of foreign equity
securities.
THE VP CAPITAL APPRECIATION FUND: This Fund seeks capital growth over time
by investing primarily in common stocks that are considered by management to
have better-than-average prospects for appreciation.
THE CALVERT SOCIAL BALANCED PORTFOLIO (FORMERLY, 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. The Portfolio also seeks
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, 1998, 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................................ +13.5%
Investment Company Equity Index Fund............................... +16.6%
Investment Company Bond Fund....................................... + 3.2%
Investment Company Short-Term Bond Fund............................ + 2.0%
Investment Company Mid-Term Bond Fund.............................. + 2.4%
Investment Company Composite Fund.................................. + 9.0%
Investment Company Aggressive Equity Fund.......................... + 0.6%
Scudder Bond Fund.................................................. + 2.7%
Scudder Capital Growth Fund........................................ +15.0%
Scudder International Fund......................................... +19.8%
American Century VP Capital Appreciation Fund...................... + 0.2%
Calvert Social Balanced Fund....................................... + 9.3%
Fidelity VIP Equity-Income Fund.................................... + 9.8%
Fidelity VIP II Contrafund......................................... +15.9%
Fidelity VIP II Asset Manager Fund................................. + 8.5%
</TABLE>
-------
(1) The current seven-day net annualized yield as of 8/18/98 was 3.93%
and is not necessarily indicative of future actual yields.
II
<PAGE>
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 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..................................... V
Statement of Operations................................................. VII
Statements of Changes in Net Assets..................................... IX
Notes to Financial Statements........................................... XII
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..................................... 39
Statement of Operations................................................. 40
Statements of Changes in Net Assets..................................... 41
Financial Highlights.................................................... 43
Notes to Financial Statements........................................... 49
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 SOCIAL BALANCED PORTFOLIO OF CALVERT
VARIABLE SERIES, INC.
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>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (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 --
$558,704
All America Fund --
$7,201,474
Equity Index Fund --
$8,862,447
Bond Fund -- $1,851,382)
(Notes 1 and 2)................. $561,613 $7,884,231 $9,087,159 $1,877,099
Due From (To) General Account.... 277 21,326 (287,176) 329
-------- ---------- ---------- ----------
Net Assets....................... $561,890 $7,905,557 $8,799,983 $1,877,428
======== ========== ========== ==========
Unit Value at June 30, 1998 (Note
5).............................. $1.99 $7.68 $2.63 $3.10
======== ========== ========== ==========
Number of Units Outstanding at
June 30, 1998 (Note 5).......... 282,089 1,029,226 3,340,127 606,472
======== ========== ========== ==========
<CAPTION>
INVESTMENT COMPANY
-------------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE 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 -- $134,914
Mid-Term Bond Fund -- $134,619
Composite Fund -- $3,245,415
Aggressive Equity Fund --
$5,385,654)
(Notes 1 and 2)................. $135,591 $ 132,489 $3,154,409 $5,310,506
Due From (To) Mutual of America
General Account................. 35 526 5,669 (529,034)
-------- ---------- ---------- ----------
Net Assets....................... $135,626 $ 133,015 $3,160,078 $4,781,472
======== ========== ========== ==========
Unit Value at June 30, 1998 (Note
5).............................. $1.22 $1.29 $4.76 $2.17
======== ========== ========== ==========
Number of Units Outstanding at
June 30, 1998 (Note 5).......... 111,398 103,022 664,234 2,205,756
======== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
V
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN
SCUDDER CENTURY CALVERT
--------------------------------- ------------ --------
CAPITAL VP CAPITAL SOCIAL
BOND GROWTH INTERNATIONAL APPRECIATION BALANCED
FUND FUND FUND FUND FUND
-------- ---------- ------------- ------------ --------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in Scudder Portfolios, Amer-
ican Century VP Capital Appreciation
Fund and Calvert Social Balanced Port-
folio at market value
(Cost:
Scudder Bond Fund --$121,373
Scudder Capital Growth Fund --
$5,490,430
Scudder International Fund --$1,865,834
American Century VP Capital
Appreciation Fund --$429,878
Calvert Social Balanced Fund --$629,925)
(Notes 1 and 2)....................... $123,467 $6,336,543 $1,897,302 $423,255 $717,408
Due From (To) General Account........... 225 9,869 466 (227) 151
-------- ---------- ---------- -------- --------
Net Assets.............................. $123,692 $6,346,412 $1,897,768 $423,028 $717,559
======== ========== ========== ======== ========
Unit Value at June 30, 1998 (Note 5).... $12.72 $34.14 $17.35 $11.08 $2.90
======== ========== ========== ======== ========
Number of Units Outstanding at June 30,
1998 (Note 5).......................... 9,722 185,900 109,389 38,193 247,566
======== ========== ========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY
-----------------------------------
VIP
EQUITY- VIP II VIP II
INCOME CONTRA ASSET MANAGER
FUND FUND FUND
---------- ---------- -------------
<S> <C> <C> <C>
Assets:
Investments in Fidelity Portfolios at mar-
ket value
(Cost:
VIP Equity-Income Fund --$2,960,635
VIP II Contra Fund --$4,160,561
VIP II Asset Manager Fund-- $1,640,160)
(Notes 1 and 2)........................... $3,401,805 $5,309,738 $1,723,297
Due From (To) General Account.............. 799 1,155 171
---------- ---------- ----------
Net Assets................................. $3,402,604 $5,310,893 $1,723,468
========== ========== ==========
Unit Value at June 30, 1998 (Note 5)....... $30.52 $23.63 $22.97
========== ========== ==========
Number of Units Outstanding at June 30,
1998 (Note 5)............................. 111,479 224,771 75,031
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VI
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (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................... 1,529 44,233 44,374 13,493
Administrative Ex-
penses................ 431 4,330 2,917 959
------- -------- ---------- --------
Total Expenses.......... 1,960 48,563 47,291 14,452
------- -------- ---------- --------
Net Investment Income
(Loss)................. (1,960) (48,563) (47,291) (14,452)
------- -------- ---------- --------
Net Realized and
Unrealized Gain (Loss)
on Investments
(Note 1):
Net realized gain
(loss) on invest-
ments................. (2,931) 652,293 1,571,573 (20,479)
Net unrealized appreci-
ation (depreciation)
of investments........ 9,745 310,581 (322,360) 44,830
------- -------- ---------- --------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 6,814 962,874 1,249,213 24,351
------- -------- ---------- --------
Net Increase (Decrease)
in Net Assets Resulting
from Operations........ $ 4,854 $914,311 $1,201,922 $ 9,899
======= ======== ========== ========
<CAPTION>
INVESTMENT COMPANY
-------------------------------------------------------
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY
BOND FUND BOND FUND FUND FUND
------------ ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Investment Income and
Expenses:
Income (Notes 1 and
4):....................
Dividends.............. $ -- $ -- $ -- $ --
------- -------- ---------- --------
Total income............ -- -- -- --
------- -------- ---------- --------
Expenses (Note 3):......
Fees................... 352 543 18,331 31,375
Administrative Ex-
penses................ 91 112 2,250 1,546
------- -------- ---------- --------
Total Expenses.......... 443 655 20,581 32,921
------- -------- ---------- --------
Net Investment Income
(Loss)................. (443) (655) (20,581) (32,921)
------- -------- ---------- --------
Net Realized and
Unrealized Gain (Loss)
on Investments (Note
1):
Net realized gain
(loss) on invest-
ments................. (91) (208) (30,024) 230,206
Net unrealized appreci-
ation (depreciation)
of investments........ 1,675 2,979 307,250 (71,549)
------- -------- ---------- --------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 1,584 2,771 277,226 158,657
------- -------- ---------- --------
Net Increase (Decrease)
in Net Assets Resulting
from
Operations............. $ 1,141 $ 2,116 $ 256,645 $125,736
======= ======== ========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VII
<PAGE>
AMERICA LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
AMERICAN
SCUDDER CENTURY
-------------------------------- -------------
CAPITAL VP CAPITAL
BOND GROWTH INTERNATIONAL APPRECIATION
FUND FUND FUND FUND
-------- -------- ------------- -------------
<S> <C> <C> <C> <C>
Investment Income and Expenses:
Income (Notes 1 and 4):
Dividends..................... $ 3,761 $301,418 $ 175,511 $ 21,242
------- -------- ---------- --------
Total income................... 3,761 301,418 175,511 21,242
------- -------- ---------- --------
Expenses (Note 3):
Fees.......................... 727 34,325 16,676 2,307
Administrative Expenses........ 373 1,135 214 67
------- -------- ---------- --------
Total Expenses................. 1,100 35,460 16,890 2,374
------- -------- ---------- --------
Net Investment Income (Loss)... 2,661 265,958 158,621 18,868
------- -------- ---------- --------
Net Realized and Unrealized
Gain (Loss) on
Investments (Note 1):
Net realized gain (loss) on
investments.................. 484 104,717 1,147,065 (79,626)
Net unrealized appreciation
(depreciation) of invest-
ments........................ (206) 409,303 21,168 35,424
------- -------- ---------- --------
Net Realized and Unrealized
Gain (Loss) on Investments.... 278 514,020 1,168,233 (44,202)
------- -------- ---------- --------
Net Increase (Decrease) in Net
Assets Resulting from
Operations.................... $ 2,939 $779,978 $1,326,854 $(25,334)
======= ======== ========== ========
<CAPTION>
CALVERT FIDELITY
-------- ------------------------------------
VIP
SOCIAL EQUITY- VIP II VIP II
BALANCED INCOME CONTRA ASSET MANAGER
FUND FUND FUND FUND
-------- -------- ------------- -------------
<S> <C> <C> <C> <C>
Investment Income and Expenses:
Income (Notes 1 and 4):
Dividends..................... $ -- $179,360 $ 254,179 $169,602
------- -------- ---------- --------
Total income................... -- 179,360 254,179 169,602
------- -------- ---------- --------
Expenses (Note 3):
Fees.......................... 3,866 17,363 26,868 8,509
Administrative Expenses....... 690 3,067 1,731 1,220
------- -------- ---------- --------
Total Expenses................. 4,556 20,430 28,599 9,729
------- -------- ---------- --------
Net Investment Income (Loss)... (4,556) 158,930 225,580 159,873
------- -------- ---------- --------
Net Realized and Unrealized
Gain (Loss) on Investments
(Note 1):
Net realized gain (loss) on
investments.................. 4,146 39,205 88,067 10,050
Net unrealized appreciation
(depreciation) of invest-
ments........................ 54,226 69,780 396,214 (51,210)
------- -------- ---------- --------
Net Realized and Unrealized
Gain (Loss) on Investments.... 58,372 108,985 484,281 (41,160)
------- -------- ---------- --------
Net Increase (Decrease) in Net
Assets Resulting from
Operations.................... $53,816 $267,915 $ 709,861 $118,713
======= ======== ========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
VIII
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT COMPANY
--------------------------------------------------------------------------------
MONEY MARKET ALL AMERICA FUND EQUITY INDEX 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, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (1,960) $ 8,303 $ (48,563) $ 694,121 $ (47,291) $ 66,786
Net realized gain
(loss) on
investments........... (2,931) 22 652,293 100,040 1,571,573 210,401
Net Unrealized
appreciation
(depreciation) of
investments........... 9,745 (2,891) 310,581 170,608 (322,360) 524,908
---------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets result-
ing from operations... 4,854 5,434 914,311 964,769 1,201,922 802,095
---------- --------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 415,480 83,909 967,304 1,823,327 1,397,320 2,404,743
Withdrawals............ (22,055) (21,211) (374,388) (456,949) (306,280) (255,564)
Net Transfers.......... (13,094) (15,293) 187,181 527,066 875,019 1,207,296
---------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit
transactions........... 380,331 47,405 780,097 1,893,444 1,966,059 3,356,475
---------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 385,185 52,839 1,694,408 2,858,213 3,167,981 4,158,570
Net Assets:
Beginning of
Period/Year............ 176,705 123,866 6,211,149 3,352,936 5,632,002 1,473,432
---------- --------- ---------- ---------- ---------- ----------
End of Period/Year...... $ 561,890 $ 176,705 $7,905,557 $6,211,149 $8,799,983 $5,632,002
========== ========= ========== ========== ========== ==========
<CAPTION>
INVESTMENT COMPANY
--------------------------------------------------------------------------------
SHORT-TERM
BOND FUND BOND FUND MID-TERM 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, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (14,452) $ 46,454 $ (443) $ 1,367 $ (655) $ 2,093
Net realized gain
(loss) on
investments........... (20,479) (15,444) (91) 24 (208) (34,118)
Net Unrealized
appreciation
(depreciation) of
investments........... 44,830 32,882 1,675 (388) 2,979 35,334
---------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets resulting
from operations........ 9,899 63,892 1,141 1,003 2,116 3,309
---------- --------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 798,472 249,039 68,992 14,842 28,727 18,408
Withdrawals............ (44,612) (55,507) (3,981) (1,270) (3,411) (79,572)
Net Transfers.......... 210,165 (256,192) 40,446 (5,813) 43,858 (190,378)
---------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit
transactions........... 964,025 (62,660) 105,457 7,759 69,174 (251,542)
---------- --------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 973,924 1,232 106,598 8,762 71,290 (248,233)
Net Assets:
Beginning of
Period/Year............ 903,504 902,272 29,028 20,266 61,725 309,958
---------- --------- ---------- ---------- ---------- ----------
End of Period/Year...... $1,877,428 $ 903,504 $ 135,626 $ 29,028 $ 133,015 $ 61,725
========== ========= ========== ========== ========== ==========
</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
-----------------------------------------------------
COMPOSITE FUND AGGRESSIVE EQUITY FUND
-------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ (20,581) $ 589,958 $ (32,921) $ 438,316
Net realized gain
(loss) on invest-
ments................. (30,024) 6,592 230,206 130,789
Net unrealized appreci-
ation (depreciation)
of investments........ 307,250 (267,950) (71,549) 54,244
---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets resulting
from operations........ 256,645 328,600 125,736 623,349
---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 455,003 882,737 757,395 1,846,599
Withdrawals............ (350,771) (182,378) (273,317) (278,875)
Net Transfers.......... (6,517) 65,188 (756,029) 243,989
---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit transac-
tions.................. 97,715 765,547 (271,951) 1,811,713
---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 354,360 1,094,147 (146,215) 2,435,062
Net Assets:
Beginning of
Period/Year............ 2,805,718 1,711,571 4,927,687 2,492,625
---------- ---------- ---------- ----------
End of Period/Year...... $3,160,078 $2,805,718 $4,781,472 $4,927,687
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
SCUDDER
--------------------------------------------------------------------------------
BOND FUND CAPITAL GROWTH FUND INTERNATIONAL 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, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 2,661 $ 2,208 $ 265,958 $ 108,379 $ 158,621 $ 4,792
Net realized gain
(loss) on
investments........... 484 285 104,717 281,436 1,147,065 114,508
Net Unrealized
appreciation
(depreciation) of
investments........... (206) 2,025 409,303 271,584 21,168 (23,785)
-------- -------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets resulting
from operations........ 2,939 4,518 779,978 661,399 1,326,854 95,515
-------- -------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 49,550 58,335 1,035,678 1,686,187 194,240 408,312
Withdrawals............ (28,367) (18,824) (350,778) (318,095) (116,716) (110,707)
Net Transfers.......... 1,527 9,512 143,308 1,080,629 (637,271) (204,358)
-------- -------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit
transactions........... 22,710 49,023 828,208 2,448,721 (559,747) 93,247
-------- -------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 25,649 53,541 1,608,186 3,110,120 767,107 188,762
Net Assets:
Beginning of
Period/Year............ 98,043 44,502 4,738,226 1,628,106 1,130,661 941,899
-------- -------- ---------- ---------- ---------- ----------
End of Period/Year...... $123,692 $ 98,043 $6,346,412 $4,738,226 $1,897,768 $1,130,661
======== ======== ========== ========== ========== ==========
</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>
AMERICAN
CENTURY CALVERT
-------------------------- --------------------------
VP CAPITAL SOCIAL
APPRECIATION FUND BALANCED FUND
-------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 18,868 $ 7,297 $ (4,556) $ 30,017
Net realized gain
(loss) on
investments........... (79,626) (22,217) 4,146 3,585
Net Unrealized
appreciation
(depreciation) of
investments............ 35,424 7,089 54,226 27,151
-------- -------- -------- --------
Net Increase (Decrease)
in net assets resulting
from operations........ (25,334) (7,831) 53,816 60,753
-------- -------- -------- --------
From Unit Transactions:
Contributions.......... 36,425 163,525 151,764 208,235
Withdrawals............ (49,990) (84,674) (34,403) (31,570)
Net Transfers.......... (26,928) (362,546) 32,250 52,146
-------- -------- -------- --------
Net Increase (Decrease)
from unit transac-
tions.................. (40,493) (283,695) 149,611 228,811
-------- -------- -------- --------
Net Increase (Decrease)
in Net Assets.......... (65,827) (291,526) 203,427 289,564
Net Assets:
Beginning of
Period/Year............ 488,855 780,381 514,132 224,568
-------- -------- -------- --------
End of Period/Year...... $423,028 $488,855 $717,559 $514,132
======== ======== ======== ========
</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, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From Operations:
Net investment income
(loss)................ $ 158,930 $ 119,228 $ 225,580 $ 44,742 $ 159,873 $ 69,945
Net realized gain
(loss) on
investments........... 39,205 67,484 88,067 111,794 10,050 5,525
Net Unrealized
appreciation
(depreciation) of
investments............ 69,780 260,021 396,214 462,114 (51,210) 86,433
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in net assets resulting
from operations........ 267,915 446,733 709,861 618,650 118,713 161,903
---------- ---------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions.......... 522,714 1,025,900 628,501 1,479,493 347,705 579,341
Withdrawals............ (278,147) (301,479) (321,950) (140,441) (126,849) (79,334)
Net Transfers.......... 273,568 108,120 (33,414) (173,641) 7,234 61,271
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
from unit transac-
tions.................. 518,135 832,541 273,137 1,165,411 228,090 561,278
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 786,050 1,279,274 982,998 1,784,061 346,803 723,181
Net Assets:
Beginning of
Period/Year............ 2,616,554 1,337,280 4,327,895 2,543,834 1,376,665 653,484
---------- ---------- ---------- ---------- ---------- ----------
End of Period/Year...... $3,402,604 $2,616,554 $5,310,893 $4,327,895 $1,723,468 $1,376,665
========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
XI
<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
alternatives: 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 and Calvert Social Balanced Fund
(formerly, the Calvert Responsibly Invested Balanced Fund). The American Life
funds invest in a corresponding fund of Mutual of America Investment
Corporation ("Investment Company"), portfolios of Scudder Variable Life
Investment Fund ("Scudder"), fund of American Century Variable Portfolios Inc.
("American Century") and a corresponding fund of Calvert Social Balanced
Portfolio of Calvert Variable Series, Inc. (formerly, 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 alternative 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 investment
alternatives. 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.
XII
<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, 1998 are
as follows:
<TABLE>
<CAPTION>
NUMBER OF NET ASSET
SHARES VALUE
--------- ---------
<S> <C> <C>
Investment Company Funds:
Money Market Fund.................................... 464,757 $ 1.21
All America Fund..................................... 2,542,749 3.10
Equity Index Fund.................................... 3,721,436 2.44
Bond Fund............................................ 1,265,268 1.48
Short-Term Bond Fund................................. 129,266 1.05
Mid-Term Bond Fund................................... 142,293 0.93
Composite Fund....................................... 1,771,386 1.78
Aggressive Equity Fund............................... 3,260,287 1.63
Scudder Portfolios:
Bond Portfolio....................................... 17,946 6.88
Capital Growth Portfolio--Class "A".................. 280,130 22.62
International Portfolio--Class "A"................... 127,937 14.83
American Century VP Capital Appreciation Fund......... 45,511 9.29
Calvert Social Balanced Portfolio..................... 328,637 2.18
Fidelity Portfolios:
Equity-Income--"Initial" Class....................... 135,153 25.17
Contrafund--"Initial" Class.......................... 241,901 21.95
Asset Manager--"Initial" Class....................... 99,901 17.25
</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, effective in 1997, 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 1998. It is the Investment Company's practice to
declare and pay dividends at the end of the year.
On January 28, 1998, February 25 1998, April 28, 1998, dividends were paid
by the Scudder Bond Portfolio. The combined amount of the dividends was
$3,761.
On January 28, 1998, February 25, 1998, April 28, 1998, dividends were paid
by the Scudder Capital Growth Portfolio. The combined amount of the dividends
was $301,418.
On February 25, 1998 a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $175,511.
XIII
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
On March 13, 1998 a dividend was paid by the American Century VP Capital
Appreciation Fund. The amount of the dividend was $21,242.
On February 6, 1998 a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $179,360.
On February 6, 1998, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $254,179.
On February 6, 1998, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $169,602.
5. FINANCIAL HIGHLIGHTS
Shown below are financial highlights for a Unit outstanding throughout the
six months ended June 30, 1998 and each of the previous five years ended
December 31, or, if not in existence a full year, the initial period ended
December 31:
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-----------------------------------
MONEY MARKET FUND
-----------------------------------
1998 1997 1996 1995 1994
------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year....... $ 1.95 $ 1.87 $ 1.80 $ 1.72 $ 1.68
======= ====== ====== ====== ======
Unit value, end of period/year............. $ 1.99 $ 1.95 $ 1.87 $ 1.80 $ 1.72
======= ====== ====== ====== ======
Units outstanding, end of period/year...... 282,089 90,542 66,104 62,822 29,648
======= ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------
ALL AMERICA FUND
------------------------------------------------
1998 1997 1996 1995 1994 1993
--------- --------- ------- ------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year................. $ 6.76 $ 5.39 $ 4.52 $ 3.35 $ 3.36 $3.31
========= ========= ======= ======= ====== =====
Unit value, end of
period/year................. $ 7.68 $ 6.76 $ 5.39 $ 4.52 $ 3.35 $3.36
========= ========= ======= ======= ====== =====
Units outstanding, end of
period/year................. 1,029,226 919,295 621,536 239,745 91,238 27
========= ========= ======= ======= ====== =====
<CAPTION>
INVESTMENT COMPANY
------------------------------------------------
EQUITY INDEX FUND
------------------------------------------------
1998 1997 1996 1995 1994 1993
--------- --------- ------- ------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year................. $ 2.26 $ 1.72 $ 1.42 $ 1.05 $ 1.05 $1.04
========= ========= ======= ======= ====== =====
Unit value, end of
period/year................. $ 2.63 $ 2.26 $ 1.72 $ 1.42 $ 1.05 $1.05
========= ========= ======= ======= ====== =====
Units outstanding, end of
period/year................. 3,340,127 2,496,288 858,298 333,578 35,717 185
========= ========= ======= ======= ====== =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-------------------------------------
BOND FUND
-------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year..... $ 3.00 $ 2.75 $ 2.69 $ 2.28 $ 2.39
======= ======= ======= ====== ======
Unit value, end of period/year........... $ 3.10 $ 3.00 $ 2.75 $ 2.69 $ 2.28
======= ======= ======= ====== ======
Units outstanding, end of period/year.... 606,472 301,512 328,371 65,503 23,434
======= ======= ======= ====== ======
</TABLE>
XIV
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
INVESTMENT COMPANY
-----------------------------------
SHORT-TERM BOND FUND
-----------------------------------
1998 1997 1996 1995 1994
------- ------ ------- ------ -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year....... $ 1.19 $ 1.14 $ 1.10 $ 1.03 $1.03
======= ====== ======= ====== =====
Unit value, end of period/year............. $ 1.22 $ 1.19 $ 1.14 $ 1.10 $1.03
======= ====== ======= ====== =====
Units outstanding, end of period/year...... 111,398 24,344 17,798 5,302 3,639
======= ====== ======= ====== =====
<CAPTION>
INVESTMENT COMPANY
-----------------------------------
MID-TERM BOND FUND
-----------------------------------
1998 1997 1996 1995 1994
------- ------ ------- ------ -----
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year....... $ 1.26 $ 1.19 $ 1.16 $ 1.01 $1.06
======= ====== ======= ====== =====
Unit value, end of period/year............. $ 1.29 $ 1.26 $ 1.19 $ 1.16 $1.01
======= ====== ======= ====== =====
Units outstanding, end of period/year...... 103,022 49,001 260,862 18,581 3,694
======= ====== ======= ====== =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------------------------
COMPOSITE FUND
---------------------------------------------
1998 1997 1996 1995 1994 1993
------- ------- ------- ------- ------- -----
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year.................... $ 4.36 $ 3.75 $ 3.39 $ 2.82 $ 2.95 $2.93
======= ======= ======= ======= ======= =====
Unit value, end of period/year.. $ 4.76 $ 4.36 $ 3.75 $ 3.39 $ 2.82 $2.95
======= ======= ======= ======= ======= =====
Units outstanding, end of
period/year.................... 664,234 643,537 456,304 281,905 131,650 322
======= ======= ======= ======= ======= =====
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT COMPANY
---------------------------------------------
AGGRESSIVE EQUITY FUND
---------------------------------------------
1998 1997 1996 1995 1994
--------- --------- --------- ------- -------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year.................... $ 2.15 $ 1.80 $ 1.43 $ 1.05 $ 1.00
========= ========= ========= ======= =======
Unit value, end of period/year.. $ 2.17 $ 2.15 $ 1.80 $ 1.43 $ 1.05
========= ========= ========= ======= =======
Units outstanding, end of
period/year.................... 2,205,756 2,289,562 1,386,311 599,553 106,710
========= ========= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
SCUDDER
-------------------------------------------
BOND FUND
-------------------------------------------
1998 1997 1996 1995 1994 1993
------- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year...................... $ 12.37 $ 11.48 $11.30 $ 9.69 $10.32 $10.24
======= ======= ====== ====== ====== ======
Unit value, end of period/year.... $ 12.72 $ 12.37 $11.48 $11.30 $ 9.69 $10.32
======= ======= ====== ====== ====== ======
Units outstanding, end of
period/year...................... 9,722 7,927 3,877 2,407 799 --
======= ======= ====== ====== ====== ======
<CAPTION>
SCUDDER
-------------------------------------------
CAPITAL GROWTH FUND
-------------------------------------------
1998 1997 1996 1995 1994 1993
------- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year...................... $ 29.64 $ 22.11 $18.64 $14.67 $16.46 $16.10
======= ======= ====== ====== ====== ======
Unit value, end of period/year.... $ 34.14 $ 29.64 $22.11 $18.64 $14.67 $16.46
======= ======= ====== ====== ====== ======
Units outstanding, end of
period/year...................... 185,900 159,853 73,641 42,366 22,116 59
======= ======= ====== ====== ====== ======
</TABLE>
XV
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SCUDDER
------------------------------------------
INTERNATIONAL FUND
------------------------------------------
1998 1997 1996 1995 1994 1993
------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year....................... $ 14.46 $13.43 $11.85 $10.80 $11.06 $10.36
======= ====== ====== ====== ====== ======
Unit value, end of period/year..... $ 17.35 $14.46 $13.43 $11.85 $10.80 $11.06
======= ====== ====== ====== ====== ======
Units outstanding, end of
period/year....................... 109,389 78,166 70,139 29,549 52,296 38
======= ====== ====== ====== ====== ======
<CAPTION>
AMERICAN CENTURY
------------------------------------------
VP CAPITAL APPRECIATION FUND
------------------------------------------
1998 1997 1996 1995 1994 1993
------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of
period/year....................... $ 11.04 $11.53 $12.18 $ 9.39 $ 9.61 $ 9.38
======= ====== ====== ====== ====== ======
Unit value, end of period/year..... $ 11.08 $11.04 $11.53 $12.18 $ 9.39 $ 9.61
======= ====== ====== ====== ====== ======
Units outstanding, end of
period/year....................... 38,193 44,293 67,688 56,618 13,116 20
======= ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
CALVERT
-------------------------------------
SOCIAL BALANCED FUND
-------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year..... $ 2.65 $ 2.23 $ 2.01 $ 1.57 $ 1.64
======= ======= ======= ====== ======
Unit value, end of period/year........... $ 2.90 $ 2.65 $ 2.23 $ 2.01 $ 1.57
======= ======= ======= ====== ======
Units outstanding, end of period/year.... 247,566 194,166 100,573 45,392 18,308
======= ======= ======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
FIDELITY VIP
------------------------------
EQUITY-INCOME FUND
------------------------------
1998 1997 1996 1995
------- ------- ------- ------
<S> <C> <C> <C> <C>
Unit value, beginning of period/year............ $ 27.77 $ 21.93 $ 19.43 $16.30
======= ======= ======= ======
Unit value, end of period/year.................. $ 30.52 $ 27.77 $ 21.93 $19.43
======= ======= ======= ======
Units outstanding, end of period/year........... 111,479 94,213 60,979 17,958
======= ======= ======= ======
<CAPTION>
FIDELITY VIP II
------------------------------
CONTRA FUND
------------------------------
1998 1997 1996 1995
------- ------- ------- ------
<S> <C> <C> <C> <C>
Unit value, beginning of period/year............ $ 20.36 $ 16.59 $ 13.85 $11.43
======= ======= ======= ======
Unit value, end of period/year.................. $ 23.63 $ 20.36 $ 16.59 $13.85
======= ======= ======= ======
Units outstanding, end of period/year........... 224,771 212,606 153,360 29,132
======= ======= ======= ======
<CAPTION>
FIDELITY VIP II
------------------------------
ASSET MANAGER FUND
------------------------------
1998 1997 1996 1995
------- ------- ------- ------
<S> <C> <C> <C> <C>
Unit value, beginning of period/year............ $ 21.14 $ 17.72 $ 15.66 $14.04
======= ======= ======= ======
Unit value, end of period/year.................. $ 22.97 $ 21.14 $ 17.72 $15.66
======= ======= ======= ======
Units outstanding, end of period/year........... 75,031 65,125 36,872 5,561
======= ======= ======= ======
</TABLE>
XVI
<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
