AMERICAN LIFE
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
JUNE 30, 1999
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, 1999
Dear Policyowner:
We are pleased to send you the 1999 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 seventeen
distinct funds. Each invests in shares of one of nine funds of Mutual of America
Investment Corporation (the "Investment Company"): the Money Market, All
America, Equity Index, Mid-Cap Equity Index (commenced operations on May 3,
1999), Bond, Short-Term Bond, Mid-Term Bond, Composite and Aggressive Equity
Fund; three portfolios of Scudder Variable Life Investment Fund ("Scudder"): the
Bond, Capital Growth and International Portfolio; 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 Balanced Portfolio)
("Calvert"); the Equity-Income Portfolio of Fidelity Investments Variable
Insurance Products Fund ("Fidelity VIP"); and the Contrafund Portfolio and Asset
Manager Portfolio 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 investment objectives and primary investments of the funds and
portfolios in which the Separate Account Funds invest are summarized as follows:
Investment Company Money Market Fund: This Fund seeks to realize 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.
Investment Company All America Fund: This Fund seeks to outperform the
Standard & Poor's Composite Index of 500 Stocks (the "S&P 500 Index") by
investing in a diversified portfolio of primarily common stocks, with
approximately 60% of its assets invested to provide investment results that
correspond to the performance of the S&P 500 Index and the remaining
approximately 40% of its assets invested to seek to achieve a high level of
total return, through both appreciation of capital and, to a lesser extent,
current income, by means of a diversified portfolio of primarily common stocks
with a broad exposure to the market. ("Standard & Poor's", "S&P"and "S&P 500"
are trademarks of The McGraw-Hill Companies, Inc.)
Investment Company Equity Index Fund: This Fund seeks to provide
investment results that correspond to the performance of the S&P 500 Index by
investing primarily in the common stocks that comprise the S&P 500 Index.
Investment Company Mid-Cap Equity Index Fund: This Fund seeks to provide
investment results that correspond to the performance of the S&P MidCap 400
Index by investing primarily in the common stocks that comprise the S&P MidCap
400 Index. ("S&P MidCap 400" is a trademark of The McGraw-Hill Companies, Inc.)
Investment Company Bond Fund: This Fund seeks as high a level of current
income over time as is believed consistent with prudent investment risk, with
preservation of capital a secondary objective, by investing primarily in
publicly-traded, investment grade debt securities.
Investment Company Short-Term Bond Fund: This Fund seeks as high a level
of current income over time as is believed consistent with prudent investment
risk, with preservation of capital a secondary objective, by investing primarily
in publicly-traded, investment grade debt securities and in money market
instruments with an average maturity of one to three years.
Investment Company Mid-Term Bond Fund: This Fund seeks as high a level of
current income over time as is believed consistent with prudent investment risk,
with preservation of capital a secondary objective, by investing primarily in
publicly-traded, investment grade debt securities with an average maturity of
three to seven years.
Investment Company Composite Fund: This Fund seeks as high a total rate of
return, through both appreciation of capital and current income, as is
consistent with prudent investment risk, by investing in a diversified portfolio
of publicly-traded common stocks, bonds and money market instruments.
1
<PAGE>
Investment Company Aggressive Equity Fund: This Fund's investment
objective is capital appreciation, by investing approximately half of its assets
in companies believed to possess above-average growth potential and the other
half of its assets in companies believed to possess valuable assets or whose
securities are believed to be undervalued in the marketplace.
Scudder Bond Portfolio: This Portfolio seeks a high level of income
consistent with a high quality portfolio of primarily investment grade debt
securities.
Scudder Capital Growth Portfolio: This Portfolio seeks to maximize
long-term capital growth through a broad and flexible investment program, by
investing in marketable securities, principally common stocks and, consistent
with its objective of long-term capital growth, preferred stocks.
Scudder International Portfolio: This Portfolio seeks long-term growth of
capital primarily through a diversified portfolio of foreign equity securities,
by investing primarily in established companies that do business principally
outside of the United States and that are listed on foreign exchanges.
American Century VP Capital Appreciation Fund: This Fund seeks capital
growth by investing primarily in common stocks that meet certain fundamental and
technical standards and are considered by the Fund's management to have
better-than-average prospects for appreciation.
Calvert Social Balanced Portfolio: This Portfolio seeks a competitive
total rate of return through an actively managed, non-diversified portfolio of
stocks, bonds and money market instruments that offer income and growth
opportunity and satisfy the investment and social criteria for the Portfolio.
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, and it also seeks to achieve
a yield that exceeds the composite yield on the securities comprising the S&P
500 Index.
Fidelity VIP II Contrafund Portfolio: This Portfolio seeks capital
appreciation by investing primarily in common stocks of companies whose value,
the Portfolio's adviser believes, is not fully recognized by the public.
Fidelity VIP II Asset Manager Portfolio: This Portfolio seeks high total
return with reduced risk over the long-term by allocating its assets among
stocks, bonds and short-term money market instruments, with an expected "neutral
mix" over the long-term of 10% in short-term/money-market instruments, 40% in
bonds and 50% in stocks.
For the six months ended June 30, 1999, the following total returns were
experienced in these seventeen Separate Account Funds:
Investment Company Money Market Fund(1) + 1.6%
Investment Company All America Fund +11.5%
Investment Company Equity Index Fund +11.4%
Investment Company Mid-Cap Equity Index Fund(2) + 3.8%
Investment Company Bond Fund - 2.5%
Investment Company Short-Term Bond Fund + 1.3%
Investment Company Mid-Term Bond Fund - 0.5%
Investment Company Composite Fund + 4.8%
Investment Company Aggressive Equity Fund + 6.1%
Scudder Bond Fund - 2.0%
Scudder Capital Growth Fund +10.2%
Scudder International Fund + 9.2%
American Century VP Capital Appreciation Fund +15.3%
Calvert Social Balanced Fund + 4.4%
Fidelity VIP Equity-Income Fund +11.9%
Fidelity VIP II Contrafund +10.5%
Fidelity VIP II Asset Manager Fund + 4.5%
---------------
(1) The seven-day net annualized effective yield as of 8/10/99 was 3.62%
and is not necessarily indicative of future actual yields.
(2) Commenced operations May 3, 1999; total return is from that date.
2
<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. Accompanying 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
Fidelity VIP II.
Total Return Separate Account Performance Notes for extended time periods
and other services are available by calling 1-800-468-3785.
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
3
<PAGE>
CONTENTS
Page
----
Semi-Annual Report of American Life Separate Account No. 2 ................ 1
Statement of Assets and Liabilities .................................... 5
Statement of Operations ................................................ 7
Statements of Changes in Net Assets .................................... 9
Notes to Financial Statements .......................................... 12
4
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Investment Company
------------------------------------------------------------------
Mid-Cap
Money Equity
Market All America Equity Index Index Bond
Fund Fund Fund Fund Fund
---------- ------------ ------------- --------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Mutual of America Investment Corporation
at market value
(Cost:
Money Market Fund-- $393,953
All America Fund-- $7,794,115
Equity Index Fund-- $12,173,533
Mid-Cap Equity Index Fund-- $16,494
Bond Fund-- $1,961,813)
(Notes 1 and 2) ........................................ $395,792 $8,735,165 $12,720,531 $17,154 $1,956,102
Due From (To) General Account ............................. 2,569 9,131 28,159 (10) (64,268)
-------- ---------- ----------- ------- ----------
NET ASSETS ................................................ $398,361 $8,744,296 $12,748,690 $17,144 $1,891,834
======== ========== =========== ======= ==========
UNIT VALUE AT JUNE 30, 1999 (Note 5) ...................... $ 2.07 $ 9.03 $ 3.19 $ 1.04 $ 3.10
======== ========== =========== ======= ==========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 1999 (Note 5) ................................. 192,725 968,375 3,990,947 16,505 610,862
======== ========== =========== ======= ==========
</TABLE>
<TABLE>
<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-- $157,810
Mid-Term Bond Fund-- $225,957
Composite Fund-- $4,007,807
Aggressive Equity Fund-- $2,458,047)
(Notes 1 and 2) ............................................. $158,778 $217,982 $4,146,111 $3,132,455
Due From (To) Mutual of America General Account ................ 335 1,310 (22,275) 5,337
-------- -------- ---------- ----------
NET ASSETS ..................................................... $159,113 $219,292 $4,123,836 $3,137,792
======== ======== ========== ==========
UNIT VALUE AT JUNE 30, 1999 (Note 5) ........................... $ 1.26 $ 1.32 $ 5.17 $ 2.14
======== ======== ========== ==========
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 1999 (Note 5) .......... 126,055 166,346 797,411 1,465,444
======== ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (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, American
Century VP Capital Appreciation Fund and
Calvert Social Balanced Portfolio at market value
(Cost:
Scudder Bond Fund -- $362,241
Scudder Capital Growth Fund -- $6,408,793
Scudder International Fund -- $23,086,990
American Century VP
Capital Appreciation Fund -- $657,931
Calvert Social Balanced Fund -- $685,893)
(Notes 1 and 2) ........................................ $350,595 $7,160,154 $23,188,894 $729,401 $768,205
Due From (To) General Account ............................. 2,930 23,864 (45,500) 1,538 2,384
-------- --------- ---------- -------- --------
NET ASSETS ................................................ $353,525 $7,184,018 $23,143,394 $730,939 $770,589
======== ========== =========== ======== ========
UNIT VALUE AT JUNE 30, 1999 (Note 5) ...................... $ 12.78 $ 39.81 $ 18.50 $ 12.34 $ 3.18
======== ========== =========== ======== ========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 1999 (Note 5) ................................. 27,673 180,463 1,250,783 59,237 242,527
======== ========== =========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Fidelity
----------------------------------------
VIP VIP II
Equity- VIP II Asset
Income Contra Manager
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in Fidelity Portfolios at market value
(Cost:
VIP Equity-Income Fund-- $3,282,138
VIP II Contra Fund-- $7,609,957
VIP II Asset Manager Fund-- $1,762,441)
(Notes 1 and 2) ............................................. $3,811,267 $8,982,291 $1,855,528
Due From (To) General Account .................................. 27,430 11,866 13,313
---------- ---------- ----------
NET ASSETS ..................................................... $3,838,697 $8,994,157 $1,868,841
========== ========== ==========
UNIT VALUE AT JUNE 30, 1999 (Note 5) ........................... $ 34.34 $ 28.93 $ 25.16
========== ========== ==========
NUMBER OF UNITS OUTSTANDING AT JUNE 30, 1999 (Note 5) .......... 111,775 310,847 74,270
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Period
May 3, 1999
(Commencement
of Operatons) to
For The Six Months Ended June 30, 1999 June 30, 1999
(Unaudited) (Unaudited)
------------------------------------ -----------
Investment Company
-----------------------------------------------------
Money All Equity Mid-Cap
Market America Index Equity Index
Fund Fund Fund Fund
--------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income ................................................... $ -- $ -- $ -- $ --
------- -------- --------- ----
Expenses (Note 3):
Fees .............................................................. 3,596 50,719 76,975 21
Administrative Expenses ........................................... 688 5,089 4,912 --
------- -------- --------- ----
Total Expenses ....................................................... 4,284 55,808 81,887 21
------- -------- --------- ----
NET INVESTMENT INCOME (LOSS) ......................................... (4,284) (55,808) (81,887) (21)
------- -------- --------- ----
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ........................... (6,009) 109,213 1,767,311 5
Net unrealized appreciation (depreciation) of investments ......... 19,557 811,540 8,663 660
------- -------- --------- ----
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 13,548 920,753 1,775,974 665
------- -------- --------- ----
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $ 9,264 $864,945 $1,694,087 $644
======= ======== ========= ====
</TABLE>
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1999 (Unaudited)
---------------------------------------------------------
Investment Company
--------------------------------------------------------
Short-Term Mid-Term Aggressive
Bond Bond Bond Composite Equity
Fund Fund Fund Fund Fund
------------------------------------------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income .................................................. $ -- $ -- $ -- $ -- $ --
-------- ------ ------ -------- --------
Expenses (Note 3):
Fees ............................................................. 14,008 1,015 1,428 24,694 19,389
Administrative Expenses .......................................... 1,393 123 175 2,985 1,144
-------- ------ ------ -------- --------
Total Expenses ...................................................... 15,401 1,138 1,603 27,679 20,533
-------- ------ ------ -------- --------
NET INVESTMENT INCOME (LOSS) ........................................ (15,401) (1,138) (1,603) (27,679) (20,533)
-------- ------ ------ -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments .......................... (181,235) (40) (2,608) 5,806 205,343
Net unrealized appreciation (depreciation) of investments ........ 122,560 3,420 3,187 215,197 (16,330)
-------- ------ ------ -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. (58,675) 3,380 579 221,003 189,013
-------- ------ ------ -------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ....................................................... $(74,076) $2,242 $(1,024) $193,324 $168,480
======== ====== ====== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (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 (Note 4):
Dividend Income ............................................. $ 17,006 $690,024 $ 626,561 $ --
-------- -------- ---------- -------
Expenses (Note 3):
Fees ........................................................ 2,173 41,474 36,006 2,692
Administrative Expenses ..................................... 491 1,278 471 48
-------- -------- ---------- -------
Total Expenses ................................................. 2,664 42,752 36,477 2,740
-------- -------- ---------- -------
NET INVESTMENT INCOME (LOSS) ................................... 14,342 647,272 590,084 (2,740)
-------- -------- ---------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ..................... (8,667) 374,694 1,196,640 6,367
Net unrealized appreciation (depreciation) of investments ... (12,290) (302,025) 92,254 73,168
-------- -------- ---------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ......... (20,957) 72,669 1,288,894 79,535
-------- -------- ---------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. $ (6,615) $719,941 $1,878,978 $76,795
======== ======== ========== =======
</TABLE>
<TABLE>
<CAPTION>
Calvert Fidelity
-------- -------------------------------------
VIP VIP II
Social Equity- VIP II Asset
Balanced Income Contra Manager
Fund Fund Fund Fund
-------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Note 4):
Dividend Income ............................................. $ -- $170,824 $297,065 $135,142
------- -------- -------- --------
Expenses (Note 3):
Fees ........................................................ 4,987 20,691 45,530 10,241
Administrative Expenses ..................................... 856 3,246 1,974 1,622
------- -------- -------- --------
Total Expenses ................................................. 5,843 23,937 47,504 11,863
------- -------- -------- --------
NET INVESTMENT INCOME (LOSS) ................................... (5,843) 146,887 249,561 123,279
------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ..................... 21,008 70,774 315,622 8,114
Net unrealized appreciation (depreciation) of investments ... 18,700 192,569 213,061 (53,163)
------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ......... 39,708 263,343 528,683 (45,049)
------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. $33,865 $410,230 $778,244 $ 78,230
======= ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<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 For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ........... $ (4,284) $ 27,608 $ (55,808) $ 822,875 $ (81,887) $ 688,779
Net realized gain (loss) on investments (6,009) 343 109,213 633,058 1,767,311 1,334,602
Net unrealized appreciation
(depreciation) of investments ........ 19,557 (10,884) 811,540 (242,666) 8,663 (8,737)
-------- -------- ---------- ---------- ----------- -----------
Net Increase (Decrease) in net assets
resulting from operations .............. 9,264 17,067 864,945 1,213,267 1,694,087 2,014,644
-------- -------- ---------- ---------- ----------- -----------
From Unit Transactions:
Contributions .......................... 154,925 630,831 550,169 1,595,623 1,402,095 2,814,473
Withdrawals ............................ (190,232) (134,654) (467,374) (918,207) (624,212) (827,177)
Net Transfers .......................... (333,760) 68,215 16,950 (322,226) (1,038,409) 1,681,187
-------- -------- ---------- ---------- ----------- -----------
Net Increase (Decrease) from unit
transactions ........................... (369,067) 564,392 99,745 355,190 (260,526) 3,668,483
-------- -------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ..... (359,803) 581,459 964,690 1,568,457 1,433,561 5,683,127
NET ASSETS:
Beginning of Period/Year .................. 758,164 176,705 7,779,606 6,211,149 11,315,129 5,632,002
-------- -------- ---------- ---------- ----------- -----------
End of Period/Year ........................ $398,361 $758,164 $8,744,296 $7,779,606 $12,748,690 $11,315,129
======== ======== ========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------------
Mid-Cap
Equity Index
Fund Bond Fund Short-Term Bond Fund
--------------- ----------------------------------------------------
For the Period
May 3, 1999
(Commencement For the Six For the For the Six For the
of Operations) to Months Ended Year Ended Months Ended Year Ended
June 30, 1999 June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) (Unaudited) 1998 (Unaudited) 1998
--------------- -------------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ....................... $ (21) $ (15,401) $ 193,334 $ (1,138) $ 5,780
Net realized gain (loss) on investments ............ 5 (181,235) 45,639 (40) (28)
Net unrealized appreciation (depreciation)
of investments ................................... 660 122,560 (109,157) 3,420 (1,455)
------- --------- --------- -------- --------
Net Increase (Decrease) in net assets resulting
from operations .................................... 644 (74,076) 129,816 2,242 4,297
------- ---------- ---------- -------- --------
From Unit Transactions:
Contributions ...................................... 10 162,623 1,131,599 7,120 73,817
Withdrawals ........................................ -- (166,554) (177,675) (11,826) (5,146)
Net Transfers ...................................... 16,490 (297,511) 280,108 3,632 55,949
------- ---------- ---------- -------- --------
Net Increase (Decrease) from unit transactions ........ 16,500 (301,442) 1,234,032 (1,074) 124,620
------- ---------- ---------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS ................. 17,144 (375,518) 1,363,848 1,168 128,917
NET ASSETS:
Beginning of Period/Year .............................. -- 2,267,352 903,504 157,945 29,028
------- ---------- ---------- -------- --------
End of Period/Year .................................... $17,144 $1,891,834 $2,267,352 $159,113 $157,945
======= ========== ========== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------------------------
Mid-Term Aggressive Equity
Bond Fund Composite 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, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ............ $ (1,603) $ 11,213 $ (27,679) $ 100,103 $ (20,533) $ (22,565)
Net realized gain (loss) on investments . (2,608) (575) 5,806 (51,778) 205,343 (969,122)
Net unrealized appreciation
(depreciation) of investments ......... 3,187 (6,053) 215,197 321,364 (16,330) 694,336
-------- -------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in net assets
resulting from operations ................ (1,024) 4,585 193,324 369,689 168,480 (297,351)
-------- -------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions ........................... 11,441 42,486 825,136 880,589 237,022 1,243,111
Withdrawals ............................. (8,933) (7,155) (432,927) (465,461) (350,997) (576,815)
Net Transfers ........................... (42,974) 159,141 107,408 (159,640) (502,132) (1,711,213)
-------- -------- ---------- ---------- ---------- ----------
Net Increase (Decrease) from unit
transactions ............................. (40,466) 194,472 499,617 255,488 (616,107) (1,044,917)
NET INCREASE (DECREASE) IN NET ASSETS ...... (41,490) 199,057 692,941 625,177 (447,627) (1,342,268)
Net Assets:
Beginning of Period/Year ................... 260,782 61,725 3,430,895 2,805,718 3,585,419 4,927,687
-------- -------- ---------- ---------- ---------- ----------
End of Period/Year ......................... $219,292 $260,782 $4,123,836 $3,430,895 $3,137,792 $3,585,419
======== ======== ========== ========== ========== ==========
</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, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ........... $ 14,342 $ 8,940 $ 647,272 $ 252,274 $ 590,084 $ 124,773
Net realized gain (loss) on investments (8,667) 881 374,694 154,343 1,196,640 3,169,145
Net unrealized appreciation
(depreciation) of investments ........ (12,290) (1,656) (302,025) 616,576 92,254 (650)
--------- --------- ---------- ---------- ----------- ----------
Net Increase (Decrease) in net assets
resulting from operations ............... (6,615) 8,165 719,941 1,023,193 1,878,978 3,293,268
--------- --------- ---------- ---------- ----------- ----------
From Unit Transactions:
Contributions .......................... 53,748 182,295 694,085 2,042,311 143,657 490,933
Withdrawals ............................ (13,958) (41,847) (491,708) (1,000,765) (124,901) (320,115)
Net Transfers .......................... (30,674) 104,368 92,983 (634,248) 19,462,056 (2,811,143)
--------- --------- ---------- ---------- ----------- ----------
Net Increase (Decrease) from unit
transactions ........................... 9,116 244,816 295,360 407,298 19,480,812 (2,640,325)
--------- --------- ---------- ---------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS ..... 2,501 252,981 1,015,301 1,430,491 21,359,790 652,943
NET ASSETS:
Beginning of Period/Year .................. 351,024 98,043 6,168,717 4,738,226 1,783,604 1,130,661
--------- --------- ---------- ---------- ----------- ----------
End of Period/Year ........................ $ 353,525 $ 351,024 $7,184,018 $6,168,717 $23,143,394 $1,783,604
========= ========= ========== ========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<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, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998
------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........................................ $ (2,740) $ 16,914 $ (5,843) $ 46,535
Net realized gain (loss) on investments ...................... 6,367 (99,213) 21,008 10,561
Net unrealized appreciation (depreciation)
of investments ............................................. 73,168 40,349 18,700 30,355
--------- --------- --------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations .............................................. 76,795 (41,950) 33,865 87,451
--------- --------- --------- ---------
From Unit Transactions:
Contributions ................................................ 48,735 75,175 87,868 274,878
Withdrawals .................................................. (29,104) (112,315) (176,964) (68,369)
Net Transfers ................................................ (249,164) (24,416) 44,600 (26,872)
--------- --------- --------- ---------
Net Increase (Decrease) from unit transactions .................. (268,795) (61,556) (44,496) 179,637
--------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS ........................... 345,590 (103,506) (10,631) 267,088
NET ASSETS:
Beginning of Period/Year ........................................ 385,349 488,855 781,220 514,132
--------- --------- --------- ---------
End of Period/Year .............................................. $ 730,939 $ 385,349 $ 770,589 $ 781,220
========= ========= ========= =========
</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, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
------------- ------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ............ $ 146,887 $ 136,853 $ 249,561 $ 188,320 $ 123,279 $ 148,907
Net realized gain (loss) on investments . 70,774 72,638 315,622 765,617 8,114 (5,492)
Net unrealized appreciation
(depreciation) of investments .......... 192,569 (34,830) 213,061 406,309 (53,163) 11,903
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in net assets
resulting from operations ............... 410,230 174,661 778,244 1,360,246 78,230 155,318
---------- ---------- ---------- ---------- ---------- ----------
From Unit Transactions:
Contributions ........................... 270,279 1,189,305 735,087 1,461,583 425,598 663,209
Withdrawals ............................. (243,698) (707,392) (442,655) (742,245) (224,069) (202,904)
Net Transfers ........................... (141,734) 270,492 627,666 888,336 (49,133) (354,073)
---------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) from unit
transactions ............................. (115,153) 752,405 920,098 1,607,674 152,396 106,232
---------- ---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS ...... 295,077 927,066 1,698,342 2,967,920 230,626 261,550
NET ASSETS:
Beginning of Period/Year ................... 3,543,620 2,616,554 7,295,815 4,327,895 1,638,215 1,376,665
---------- ---------- ---------- ---------- ---------- ----------
End of Period/Year ......................... $3,838,697 $3,543,620 $8,994,157 $7,295,815 $1,868,841 $1,638,215
========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<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 Aggressive Equity Fund of the Investment Company 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").
On May 3, 1999 the Mid-Cap Equity Index Fund of the Investment Company
became available to Separate Account No. 2.
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.
12
<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, 1999 are as
follows:
Number of Net Asset
Shares Value
--------- --------
Investment Company Funds:
Money Market Fund ............................. 326,503 $ 1.21
All America Fund .............................. 2,686,073 3.25
Equity Index Fund ............................. 4,623,579 2.75
Mid-Cap Equity Index Fund ..................... 16,481 1.04
Bond Fund ..................................... 1,397,510 1.40
Short-Term Bond Fund .......................... 151,146 1.05
Mid-Term Bond Fund ............................ 238,940 0.91
Composite Fund ................................ 2,207,625 1.88
Aggressive Equity Fund ........................ 1,943,146 1.61
Scudder Portfolios:
Bond Portfolio ................................ 54,188 6.47
Capital Growth Portfolio--Class "A" ........... 299,338 23.92
International Portfolio--Class "A" ............ 1,601,443 14.48
American Century VP Capital Appreciation Fund .... 69,666 10.47
Calvert Social Balanced Portfolio ................ 341,882 2.25
Fidelity Portfolios:
Equity-Income--"Initial" Class ................ 139,863 27.26
Contrafund--"Initial" Class ................... 344,149 26.10
Asset Manager--"Initial" Class ................ 104,891 17.69
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 American Century 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.
13
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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 1999. It is the Investment Company's practice to declare and
pay dividends at the end of the year.
On January 27, 1999 and April 28, 1999, dividends were paid by the Scudder
Bond Portfolio. The combined amount of the dividends was $17,006.
On January 27, 1999 and April 28, 1999, dividends were paid by the Scudder
Capital Growth Portfolio. The combined amount of the dividends was $690,024.
On April 28, 1999, a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $626,561.
On February 5, 1999, a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $170,824.
On February 5, 1999, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $297,065.
On February 5, 1999, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $135,142.
5. FINANCIAL HIGHLIGHTS
Shown below are financial highlights for a Unit outstanding throughout the
six months ended June 30, 1999 and each of the previous five years ended
December 31, 1998 or, if not in existence a full year, the initial period ended
December 31:
<TABLE>
<CAPTION>
Investment Company
-----------------------------------------------------------------
Money Market Fund
-----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 2.03 $ 1.95 $ 1.87 $ 1.80 $ 1.72 $ 1.68
======== ======== ======= ======= ======= =======
Unit value, end of period/year ....................... $ 2.07 $ 2.03 $ 1.95 $ 1.87 $ 1.80 $ 1.72
======== ======== ======= ======= ======= =======
Units outstanding, end of period/year ................ 192,725 373,107 90,542 66,104 62,822 29,648
======== ======== ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------
All America Fund
----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ................. $ 8.09 $ 6.76 $ 5.39 $ 4.52 $ 3.35 $ 3.36
======== ======== ======== ======== ======== =======
Unit value, end of period/year ....................... $ 9.03 $ 8.09 $ 6.76 $ 5.39 $ 4.52 $ 3.35
======== ======== ======== ======== ======== =======
Units outstanding, end of period/year ................ 968,375 961,495 919,295 621,536 239,745 91,238
======== ======== ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------------
Equity Index Fund
------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year $ 2.86 $ 2.26 $ 1.72 $ 1.42 $ 1.05 $ 1.05
========= ========= ========= ======= ======= ======
Unit value, end of period/year $ 3.19 $ 2.86 $ 2.26 $ 1.72 $ 1.42 $ 1.05
========= ========= ========= ======= ======= ======
Units outstanding, end of period/year 3,990,947 3,950,586 2,496,288 858,298 333,578 35,717
========= ========= ========= ======= ======= ======
</TABLE>
14
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
Investment Company
--------------------------------------------------------------------------------
Mid-Cap Equity
Index Fund Bond Fund
---------------- ---------------------------------------------------------------
1999* 1999 1998 1997 1996 1995 1994
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ...... $ 1.00 $ 3.17 $ 3.00 $ 2.75 $ 2.69 $ 2.28 $ 2.39
====== ======= ======= ======= ======= ====== ======
Unit value, end of period/year ............ $ 1.04 $ 3.10 $ 3.17 $ 3.00 $ 2.75 $ 2.69 $ 2.28
====== ======= ======= ======= ======= ====== ======
Units outstanding, end of period/year ..... 16,505 610,862 714,893 301,512 328,371 65,503 23,434
====== ======= ======= ======= ======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------
Short-Term Bond Fund
----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year $ 1,24 $ .19 $ 1.14 $ 1.10 $1.03 $1.03
.......................................... ======= ======= ====== ====== ===== =====
Unit value, end of period/year ............ $ 1.26 $ 1.24 $ 1.19 $ 1.14 $1.10 $1.03
======= ======= ====== ====== ===== =====
Units outstanding, end of period/year ..... 126,055 126,929 24,344 17,798 5,302 3,639
======= ======= ====== ====== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------
Mid-Term Bond Fund
----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ......... $ 1.32 $ 1.26 $ 1.19 $ 1.1 $ 1.01 $ 1.06
======== ======== ======= ========= ======= ======
Unit value, end of period/year ............... $ 1.32 $ 1.32 $ 1.26 $ 1.19 $ 1.16 $ 1.01
======== ======== ======= ========= ======= ======
Units outstanding, end of period/year ........ 166,346 197,045 49,001 260,862 18,581 3,694
======== ======== ======= ========= ======= ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------
Composite Fund
----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .......... $ 4.93 $ 4.36 $ 3.75 $ 3.39 $ 2.82 $ 2.95
======== ======== ======== ======== ======= ========
Unit value, end of period/year ................ $ 5.17 $ 4.93 $ 4.36 $ 3.75 $ 3.39 $ 2.82
======== ======== ======== ======== ======= ========
Units outstanding, end of period/year ......... 797,411 696,121 643,537 456,304 281,905 131,650
======== ======== ======== ======== ======= ========
</TABLE>
<TABLE>
<CAPTION>
Investment Company
-----------------------------------------------------------------
Aggressive Equity Fund
---------------------------------------------------------------
1999 1998 1997 1996 1995 1994
-------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .......... $ 2.02 $ 2.15 $ 1.80 $ 1.43 $ 1.05 $1.00
========= ========= ========= ========= ======= =======
Unit value, end of period/year ................ $ 2.14 $ 2.02 $ 2.15 $ 1.80 $ 1.43 $1.05
========= ========= ========= ========= ======= =======
Units outstanding, end of period/year ......... 1,465,444 1,778,370 2,289,562 1,386,311 599,553 106,710
========= ========= ========= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Scudder
---------------------------------------------------------------
Bond Fund
---------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .......... $13.02 $12.37 $11.48 $11.30 $ 9.69 $10.32
======= ======= ======= ======= ======= ========
Unit value, end of period/year ................ $12.78 $13.02 $12.37 $11.48 $11.30 $9.69
======= ======= ======= ======= ======= ========
Units outstanding, end of period/year ......... 27,673 26,966 7,927 3,877 2,407 799
======= ======= ======= ======= ======= ========
</TABLE>
- ------------
*Commenced operations May 3, 1999.
15
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
Scudder
---------------------------------------------------------------
Capital Growth Fund
---------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ......... $ 36.07 $ 29.64 $ 22.11 $18.64 $14.67 $16.46
======= ======= ======= ====== ====== ======
Unit value, end of period/year ............... $ 39.81 $ 36.07 $ 29.64 $22.11 $18.64 $14.67
======= ======= ======= ====== ====== ======
Units outstanding, end of period/year ........ 180,463 171,014 159,853 73,641 42,366 22,116
======= ======= ======= ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Scudder
----------------------------------------------------------------
International Fund
----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ......... $ 16.93 $ 14.46 $13.43 $11.85 $10.80 $11.06
========= ======= ====== ====== ====== ======
Unit value, end of period/year ............... $ 18.50 $ 16.93 $14.46 $13.43 $11.85 $10.80
========= ======= ====== ====== ====== ======
Units outstanding, end of period/year ........ 1,250,783 105,376 78,166 70,139 29,549 52,296
========= ======= ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
American Century
-------------------------------------------------------------
VP Capital Appreciation Fund
-------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ......... $10.69 $11.04 $11.53 $12.18 $ 9.39 $ 9.61
====== ====== ====== ====== ====== ======
Unit value, end of period/year ............... $12.34 $10.69 $11.04 $11.53 $12.18 $ 9.39
====== ====== ====== ====== ====== ======
Units outstanding, end of period/year ........ 59,237 36,061 44,293 67,688 56,618 13,116
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Calvert
--------------------------------------------------------------
Social Balanced Fund
--------------------------------------------------------------
1999 1998 1997 1996 1995 1994
-------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ......... $ 3.04 $ 2.65 $ 2.23 $ 2.01 $ 1.57 $ 1.64
======= ======= ======= ======= ====== ======
Unit value, end of period/year ............... $ 3.18 $ 3.04 $ 2.65 $ 2.23 $ 2.01 $ 1.57
======= ======= ======= ======= ====== ======
Units outstanding, end of period/year ........ 242,527 256,931 194,166 100,573 45,392 18,308
======= ======= ======= ======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
Fidelity VIP
---------------------------------------------------
Equity-Income Fund
---------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ..................... $ 30.65 $ 27.77 $21.93 $19.43 $16.30
======== ======== ======= ======= =======
Unit value, end of period/year ........................... $ 34.34 $ 30.65 $27.77 $21.93 $19.43
======== ======== ======= ======= =======
Units outstanding, end of period/year .................... 111,775 115,626 94,213 60,979 17,958
======== ======== ======= ======= =======
</TABLE>
16
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
Fidelity VIP II
--------------------------------------------------
Contra Fund
--------------------------------------------------
1999 1998 1997 1996 1995
------- -------- -------- -------- ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................... $ 20.16 $ 20.36 $ 16.59 $ 13.85 $11.43
======= ======= ======= ======= ======
Unit value, end of period/year .......................... $ 28.93 $ 26.16 $ 20.36 $ 16.59 $13.85
======= ======= ======= ======= ======
Units outstanding, end of period/year ................... 310,847 278,931 212,606 153,360 29,132
======= ======= ======= ======= ======
</TABLE>
<TABLE>
<CAPTION>
Fidelity VIP II
-------------------------------------------------
Asset Manager Fund
-------------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period/year $24.04 $21.14 $17.72 $15.66 $14.04
====== ====== ====== ====== =====
Unit value, end of period/year $25.16 $24.04 $21.14 $ 7.72 $15.66
====== ====== ====== ====== =====
Units outstanding, end of period/year 74,270 68,139 65,125 36,872 5,561
====== ====== ====== ====== =====
</TABLE>
17
<PAGE>
THE AMERICAN LIFE
INSURANCE COMPANY OF NEW YORK
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
320 PARK AVENUE
NEW YORK, NY 10022-6839
212-224-1700
www.mutualofamerica.com
