AMERICAN LIFE
SEPARATE ACCOUNT NO. 2
SEMI-ANNUAL REPORT
JUNE 30, 2000
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, 2000
Dear Policyowner:
We are pleased to send you the 2000 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, 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. ("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 invested in 2000 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. The Fund
invests approximately 60% of its assets (the "Indexed Assets") to provide
investment results that correspond to the performance of the S&P 500 Index. The
remaining approximately 40% of its assets (the "Active Assets") 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 to provide 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 to provide 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
money market instruments. The average maturity of the Fund is between one and
three years.
1
<PAGE>
Investment Company Mid-Term Bond Fund: This Fund seeks to provide 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. The
average maturity of the Fund is between three and seven years.
Investment Company Composite Fund: This Fund seeks to achieve as high a
total rate of return, through both appreciation of capital and current income,
as is consistent with prudent investment risk, by investing in a diversified
portfolio of publicly-traded common stocks, bonds and money market instruments.
Investment Company Aggressive Equity Fund: This Fund's investment
objective is capital appreciation, by investing in companies believed to possess
above-average growth potential and 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. The Portfolio
may invest up to 20% of its assets in intermediate to longer-term debt
instruments depending on market and economic conditions.
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 return through an actively managed, non-diversified portfolio of stocks,
bonds and money market instruments that offer income and growth opportunity and
satisfy the social concern criteria established 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 over the long term by investing in securities of companies whose
value, the Portfolio's adviser believes, is not fully recognized by the public.
These securities may be issued by domestic or foreign companies and many may not
be well known. The Portfolio normally invests primarily in common stocks.
Fidelity VIP II Asset Manager Portfolio: This Portfolio seeks high total
return with reduced risk over the long term by allocating its assets among
domestic and foreign 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.
2
<PAGE>
For the six months ended June 30, 2000, the following total returns were
experienced in these seventeen Separate Account Funds:
Investment Company Money Market Fund(1) .......................... + 2.3%
Investment Company All America Fund .............................. + 4.3%
Investment Company Equity Index Fund ............................. - 1.1%
Investment Company Mid-Cap Equity Index Fund ..................... + 7.4%
Investment Company Bond Fund ..................................... + 2.9%
Investment Company Short-Term Bond Fund .......................... + 2.6%
Investment Company Mid-Term Bond Fund ............................ + 0.9%
Investment Company Composite Fund ................................ - 0.5%
Investment Company Aggressive Equity Fund ........................ + 3.1%
Scudder Bond Fund ................................................ + 2.5%
Scudder Capital Growth Fund ...................................... + 2.7%
Scudder International Fund ....................................... - 11.5%
American Century VP Capital Appreciation Fund .................... + 16.7%
Calvert Social Balanced Fund ..................................... + 2.0%
Fidelity VIP Equity-Income Fund .................................. - 3.3%
Fidelity VIP II Contrafund ....................................... - 1.9%
Fidelity VIP II Asset Manager Fund ............................... - 1.3%
----------
(1) The seven-day net annualized effective yield as of 8/15/00 was 5.4% and is
not necessarily indicative of future actual yields.
Total return is equal to the changes in the value of a unit of
participation in a Fund from the beginning to the end of the specified period.
It reflects investment income earned and reinvested plus the changes in the
market value (whether realized or unrealized) of the securities in the
respective fund or portfolio of the Investment Company, Scudder, American
Century, Calvert or Fidelity during the indicated period. Results are net of all
charges, including a monthly service charge (assessed against an average account
balance for all individually allocated contracts) based upon a hypothetical
$1,000 invested at the beginning of the period. 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,
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, 2000 (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 -- $1,357,439
All America Fund -- $4,068,918
Equity Index Fund -- $1,770,011
Mid-Cap Equity Index Fund -- $373,618
Bond Fund -- $312,388)
(Notes 1 and 2) ..................................... $1,313,217 $4,428,238 $2,043,191 $422,017 $ 286,229
Due From (To) General Account .......................... (1,218,753) (2,506,948) 243,183 (47,413) (123,823)
---------- ---------- ---------- -------- ---------
NET ASSETS ............................................. $ 94,464 $1,921,290 $2,286,374 $374,604 $ 162,406
========== ========== ========== ======== =========
UNIT VALUE AT JUNE 30, 2000 (Note 5) ................... $ 2.16 $ 10.50 $ 3.38 $ 1.19 $ 3.17
========== ========== ========== ======== =========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 2000 (Note 5) .............................. 43,765 183,043 676,612 314,537 51,293
========== ========== ========== ======== =========
</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 -- $8,861
Mid-Term Bond Fund -- $87,808
Composite Fund -- $647,267
Aggressive Equity Fund -- $3,506,987)
(Notes 1 and 2) ................................................ $ 8,880 $ 84,727 $809,653 $ 3,923,015
Due From (To) General Account ..................................... 38,313 (61,319) 47,007 (3,155,669)
------- -------- -------- -----------
NET ASSETS ........................................................ $47,193 $ 23,408 $856,660 $ 767,346
======= ======== ======== ===========
UNIT VALUE AT JUNE 30, 2000 (Note 5) .............................. $ 1.32 $ 1.34 $ 5.58 $ 2.94
======= ======== ======== ===========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 2000 (Note 5) ......................................... 35,868 17,483 153,404 260,658
======= ======== ======== ===========
</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, 2000 (Unaudited)
<TABLE>
<CAPTION>
American
Scudder Century
-------------------------------------- ------------
Capital VP Capital
Bond Growth International Appreciation
Fund Fund Fund Fund
-------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in Scudder Portfolios and American
Century VP Capital Appreciation Fund
at market value
(Cost:
Scudder Bond Fund -- $58,446
Scudder Capital Growth Fund -- $855,199
Scudder International Fund -- $451,359
American Century VP
Capital Appreciation Fund -- $3,681,008
Calvert Social Balanced Fund --$47,639)
(Notes 1 and 2) ................................................ $59,261 $ 988,100 $1,378,366 $ 3,941,910
Due From (To) General Account ..................................... 7,050 371,375 1,130,991 (3,108,798)
------- ---------- ---------- ------------
NET ASSETS ........................................................ $66,311 $1,359,475 $2,509,357 $ 833,112
======= ========== ========== ============
UNIT VALUE AT JUNE 30, 2000 (Note 5) .............................. $ 13.07 $ 49.52 $ 22.89 $ 20.33
======= ========== ========== ============
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 2000 (Note 5) ......................................... 5,073 27,452 109,640 40,981
======= ========== ========== ============
</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>
ASSETS:
Investments in Calvert Social Balanced Portfolio and
Fidelity Portfolios at market value
(Cost:
VIP Equity-Income Fund -- $173,981
VIP II Contra Fund -- $823,742
VIP II Asset Manager Fund -- $415,866)
(Notes 1 and 2) ................................................ $ 66,932 $ 176,555 $1,282,509 $438,881
Due From (To) General Account ..................................... 48,499 106,802 587,306 (20,348)
-------- --------- ---------- --------
NET ASSETS ........................................................ $115,431 $ 283,357 $1,869,815 $418,533
======== ========= ========== ========
UNIT VALUE AT JUNE 30, 2000 (Note 5) .............................. $ 3.44 $ 31.19 $ 31.55 $ 26.09
======== ========= ========== ========
NUMBER OF UNITS OUTSTANDING AT
JUNE 30, 2000 (Note 5) ......................................... 33,533 9,084 59,274 16,043
======== ========= ========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
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 (Notes 1 and 4):
Dividend Income ................................................ $ -- $ -- $ -- $ --
-------- ---------- ---------- -------
Expenses (Note 3):
Fees and administrative expenses ............................... 8,388 59,837 72,747 2,848
-------- ---------- ---------- -------
Net Investment Income (Loss) ...................................... (8,388) (59,837) (72,747) (2,848)
-------- ---------- ---------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ........................ (31,403) 1,142,060 1,279,374 61,150
Net unrealized appreciation (depreciation) of investments ...... 19,064 (133,561) (737,738) 28,009
-------- ---------- ---------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ (12,339) 1,008,499 541,636 89,159
-------- ---------- ---------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ..................................................... $(20,727) $ 948,662 $ 468,889 $86,311
======== ========== ========== =======
</TABLE>
<TABLE>
<CAPTION>
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 (Notes 1 and 4):
Dividend Income ................................................ $ -- $ -- $ -- $ -- $ --
-------- -------- -------- --------- ----------
Expenses (Note 3):
Fees and administrative expenses ............................... 8,280 745 1,049 29,392 31,358
-------- -------- -------- --------- ----------
NET INVESTMENT INCOME (LOSS) ...................................... (8,280) (745) (1,049) (29,392) (31,358)
-------- -------- -------- --------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ........................ (47,086) (81,927) (10,171) 240,252 1,744,325
Net unrealized appreciation (depreciation) of investments ...... 95,539 83,078 13,133 (36,455) (1,082,916)
-------- -------- -------- --------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 48,453 1,151 2,962 203,797 661,409
-------- -------- -------- --------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ..................................................... $ 40,173 $ 406 $ 1,913 $ 174,405 $ 630,051
======== ======== ======== ========= ==========
</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, 2000 (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):
Dividend Income ................................................. $11,591 $ 1,003,010 $ 608,462 $ 100,305
------- ----------- ---------- ---------
Expenses (Note 3):
Fees and administrative expenses ................................ 1,636 46,382 61,840 15,170
------- ----------- ---------- ---------
NET INVESTMENT INCOME (LOSS) ....................................... 9,955 956,628 546,622 85,135
------- ----------- ---------- ---------
Net Realized and Unrealized Gain (Loss) on
Investments (Note 1):
Net realized gain (loss) on investments ......................... (5,360) 297,937 1,885,650 619,763
Net unrealized appreciation (depreciation) of investments ....... 1,729 (1,101,590) 845,468 (80,700)
------- ----------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............. (3,631) (803,653) 2,731,118 539,063
------- ----------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ...................................................... $ 6,324 $ 152,975 $3,277,740 $ 624,198
======= =========== ========== =========
</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 (Notes 1 and 4):
Dividend Income ................................................... $ -- $ 214,519 $ 1,186,459 $ 203,724
-------- --------- ----------- ---------
Expenses (Note 3):
Fees and administrative expenses .................................. 4,912 14,294 46,685 10,386
-------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS) ......................................... (4,912) 200,225 1,139,774 193,338
-------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments ........................... 63,159 (76,230) 613,246 (29,007)
Net unrealized appreciation (depreciation) of investments ......... (26,158) (222,646) (1,627,121) (167,101)
-------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 37,001 (298,876) (1,013,875) (196,108)
-------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $ 32,089 $ (98,651) $ 125,899 $ (2,770)
======== ========= =========== =========
</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, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ........ $ (8,388) $ 55,797 $ (59,837) $ 621,693 $ (72,747) $ 178,941
Net realized gain (loss) on
investments ....................... (31,403) 13,456 1,142,060 847,450 1,279,374 2,056,020
Net unrealized appreciation
(depreciation) of investments ..... 19,064 (45,566) (133,561) 363,371 (737,738) 472,583
----------- ---------- ----------- ---------- ------------ -----------
Net Increase (Decrease) in net assets
resulting from operations ........... (20,727) 23,687 948,662 1,832,514 468,889 2,707,544
----------- ---------- ----------- ---------- ------------ -----------
From Unit Transactions:
Contributions ....................... 31,734 878,466 169,262 1,145,690 398,961 2,248,818
Withdrawals ......................... (171,127) (184,058) (169,041) (820,553) (315,520) (1,164,011)
Net Transfers (Note 6) .............. (1,159,502) (62,173) (8,874,310) (90,540) (11,850,974) (1,522,462)
----------- ---------- ----------- ---------- ------------ -----------
Net Increase (Decrease) from unit
transactions ........................ (1,298,895) 632,235 (8,874,089) 234,597 (11,767,533) (437,655)
----------- ---------- ----------- ---------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS .. (1,319,622) 655,922 (7,925,427) 2,067,111 (11,298,644) 2,269,889
NET ASSETS:
Beginning of Period/Year ............... 1,414,086 758,164 9,846,717 7,779,606 13,585,018 11,315,129
----------- ---------- ----------- ---------- ------------ -----------
End of Period/Year ..................... $ 94,464 $1,414,086 $ 1,921,290 $9,846,717 $ 2,286,374 $13,585,018
=========== ========== =========== ========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------------------------------
Mid-Cap Equity Short-Term
Index Fund Bond Fund Bond 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, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ........... $ (2,848) $ 817 $ (8,280) $ 78,881 $ (745) $ 11,561
Net realized gain (loss) on
investments .......................... 61,150 (175) (47,086) (190,525) (81,927) 63
Net unrealized appreciation
(depreciation) of investments ........ 28,009 20,390 95,539 6,573 83,078 (80,607)
-------- -------- ----------- ---------- --------- --------
Net Increase (Decrease) in net assets
resulting from operations ............ 86,311 21,032 40,173 (105,071) 406 (68,983)
-------- -------- ----------- ---------- --------- --------
From Unit Transactions:
Contributions .......................... 2,864 31,113 36,203 206,537 1,623 24,508
Withdrawals ............................ (28,796) (16,918) (39,398) (219,241) (86) (17,197)
Net Transfers (Note 6) ................. (35,489) 314,487) (1,290,533) (733,616) (124,741) 73,718
-------- -------- ----------- ---------- --------- --------
Net Increase (Decrease) from unit
transactions ............................ (61,421) 328,682 (1,293,728) (746,320) (123,204) 81,029
-------- -------- ----------- ---------- --------- --------
NET INCREASE (DECREASE) IN NET ASSETS ..... 24,890 349,714 (1,253,555) (851,391) (122,798) 12,046
NET ASSETS:
Beginning of Period/Year .................. 349,714 -- 1,415,961 2,267,352 169,991 157,945
-------- -------- ----------- ---------- --------- --------
End of Period/Year ........................ $374,604 $349,714 $ 162,406 $1,415,961 $ 47,193 $169,991
======== ======== =========== ========== ========= ========
</TABLE>
----------
* Commenced operations May 3, 1999.
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, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------ ------------ -------------- ------------ -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) .......... $ (1,049) $ 9,722 $ (29,392) $ 284,820 $ (31,358) $ (42,986)
Net realized gain (loss) on
investments ......................... (10,171) (4,510) 240,252 24,201 1,744,325 483,483
Net unrealized appreciation
(depreciation) of investments ....... 13,133 (5,052) (36,455) 275,733 (1,082,916) 808,207
--------- --------- ----------- ---------- ----------- ----------
Net Increase (Decrease) in net assets
resulting from operations ............. 1,913 160 174,405 584,754 630,051 1,248,704
--------- --------- ----------- ---------- ----------- ----------
From Unit Transactions:
Contributions ......................... 3,452 90,793 167,619 1,671,677 266,540 537,315
Withdrawals ........................... (5,647) (19,932) (91,250) (541,682) (189,914) (457,725)
Net Transfers (Note 6) ................ (187,893) (120,220) (4,305,503) (234,255) (4,303,339) (549,705)
--------- --------- ----------- ---------- ----------- ----------
Net Increase (Decrease) from unit
transactions .......................... (190,088) (49,359) (4,229,134) 895,740 (4,226,713) (470,115)
--------- --------- ----------- ---------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS .... (188,175) (49,199) (4,054,729) 1,480,494 (3,596,662) 778,589
NET ASSETS:
Beginning of Period/Year ................. 211,583 260,782 4,911,389 3,430,895 4,364,008 3,585,419
--------- --------- ----------- ---------- ----------- ----------
End of Period/Year ....................... $ 23,408 $ 211,583 $ 856,660 $4,911,389 $ 767,346 $4,364,008
========= ========= =========== ========== =========== ==========
</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, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------ ------------ -------------- ------------ -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) .......... $ 9,955 $ 11,937 $ 956,628 $ 597,973 $ 546,622 $ 546,736
Net realized gain (loss) on
investments ......................... (5,360) (15,965) 297,937 1,329,205 1,885,650 7,603,116
Net unrealized appreciation
(depreciation) of investments ....... 1,729 (1,558) (1,101,590) 181,106 845,468 71,889
-------- -------- ---------- --------- ---------- -----------
Net Increase (Decrease) in net assets
resulting from operations ............. 6,324 (5,586) 152,975 2,108,284 3,277,740 8,221,741
-------- -------- ---------- --------- ---------- -----------
From Unit Transactions:
Contributions ......................... 8,765 69,147 221,672 1,246,448 133,912 271,065
Withdrawals ........................... (400) (18,843) (199,238) (1,280,074) (178,234) (195,868)
Net Transfers (Note 6) ................ (209,713) (134,407) (7,105,011) 45,702 (19,543,154) 8,738,551
-------- -------- ---------- --------- ---------- -----------
Net Increase (Decrease) from unit
transactions .......................... (201,348) (84,103) (7,082,577) 12,076 (19,587,476) 8,813,748
-------- -------- ---------- --------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS .... (195,024) (89,689) (6,929,602) 2,120,360 (16,309,736) 17,035,489
NET ASSETS:
Beginning of Period/Year ................. 261,335 351,024 8,289,077 6,168,717 18,819,093 1,783,604
-------- -------- ---------- --------- ---------- -----------
End of Period/Year ....................... $ 66,311 $261,335 $1,359,475 $8,289,077 $ 2,509,357 $18,819,093
======== ======== ========== ========== =========== ===========
</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, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) ................................ $ 85,135 $ (7,317) $ (4,912) $ 68,989
Net realized gain (loss) on investments ..................... 619,763 105,509 63,159 30,187
Net unrealized appreciation (depreciation)
of investments ............................................ (80,700) 343,300 (26,158) (18,161)
----------- ---------- --------- --------
Net Increase (Decrease) in net assets resulting
from operations ............................................. 624,198 441,492 32,089 81,015
----------- ---------- --------- --------
From Unit Transactions:
Contributions ............................................... 143,701 102,987 24,610 179,057
Withdrawals ................................................. (81,328) (47,748) (42,314) (194,924)
Net Transfers (Note 6) ...................................... (1,379,227) 643,688 (748,690) 3,368
----------- ---------- --------- --------
Net Increase (Decrease) from unit
transactions ................................................ (1,316,854) 698,927 (766,394) (12,499)
----------- ---------- --------- --------
NET INCREASE (DECREASE) IN NET ASSETS .......................... (692,656) 1,140,419 (734,305) 68,516
NET ASSETS:
Beginning of Period/Year ....................................... 1,525,768 385,349 849,736 781,220
----------- ---------- --------- --------
End of Period/Year ............................................. $ 833,112 $1,525,768 $ 115,431 $849,736
=========== ========== ========= ========
</TABLE>
<TABLE>
<CAPTION>
Fidelity
-------------------------------------------------------------------------------------
VIP VIP II VIP
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, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations:
Net investment income (loss) ............. $ 200,225 $ 121,168 $ 1,139,774 $ 197,387 $ 193,338 $ 110,637
Net realized gain (loss) on investments .. (76,230) 128,345 613,246 570,254 (29,007) 14,584
Net unrealized appreciation
(depreciation) of investments ............ (222,646) (111,339) (1,627,121) 926,615 (167,101) 43,866
----------- ---------- ----------- ------------ ----------- ----------
Net Increase (Decrease) in net assets
resulting from operations ................ (98,651) 138,174 125,899 1,694,256 (2,770) 169,087
----------- ---------- ----------- ------------ ----------- ----------
From Unit Transactions:
Contributions ............................ 90,696 542,607 232,016 1,249,737 19,838 560,070
Withdrawals .............................. (223,526) (369,062) (279,935) (1,397,869) (64,391) (279,074)
Net Transfers (Note 6) ................... (2,948,556) (391,945) (7,575,061) 524,957 (1,536,825) (85,617)
----------- ---------- ----------- ------------ ----------- ----------
Net Increase (Decrease) from unit
transactions ............................. (3,081,386) (218,400) (7,622,980) 376,825 (1,581,378) 195,379
NET INCREASE (DECREASE) IN NET ASSETS ....... (3,180,037) (80,226) (7,497,081) 2,071,081 (1,584,148) 364,466
NET ASSETS:
Beginning of Period/Year .................... 3,463,394 3,543,620 9,366,896 7,295,815 2,002,681 1,638,215
----------- ---------- ----------- ------------ ----------- ----------
End of Period/Year .......................... $ 283,357 $3,463,394 $ 1,869,815 $ 9,366,896 $ 418,533 $2,002,681
=========== ========== =========== =========== =========== ==========
</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. 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. ("Calvert").
On May 2, 1994 the Aggressive Equity Fund of the Investment Company became
available as an investment alternative to Separate Account No. 2.
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 ("Fidelity VIP") and the
Contrafund and Asset Manager Funds invest in the corresponding portfolios of
Fidelity Variable Insurance Products Fund II ("Fidelity VIP II") (collectively,
"Fidelity").
On May 3, 1999 the Mid-Cap Equity Index Fund of the Investment Company
became the 17th investment alternative 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, 2000 are as
follows:
Number of Net Asset
Shares Value
--------- --------
Investment Company Funds:
Money Market Fund ............................... 1,074,890 $ 1.22
All America Fund ................................ 1,252,072 3.54
Equity Index Fund ............................... 712,020 2.87
Mid-Cap Equity Index Fund ....................... 352,201 1.20
Bond Fund ....................................... 212,957 1.34
Short-Term Bond Fund ............................ 8,662 1.03
Mid-Term Bond Fund .............................. 96,234 0.88
Composite Fund .................................. 424,283 1.91
Aggressive Equity Fund .......................... 1,749,125 2.24
Scudder Portfolios:
Bond Portfolio .................................. 9,347 6.34
Capital Growth Portfolio--Class "A" ............. 37,329 26.47
International Portfolio--Class "A" .............. 84,927 16.23
American Century VP Capital Appreciation Fund ...... 232,014 16.99
Calvert Social Balanced Portfolio .................. 30,041 2.23
Fidelity Portfolios:
Equity-Income--"Initial" Class .................. 7,706 22.91
Contrafund--"Initial" Class ..................... 51,116 25.09
Asset Manager--"Initial" Class .................. 26,535 16.55
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 an 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 this risk, the Company
deducts daily, at an annual rate of .50%, an amount from the value of the net
assets of each fund. Effective May 1, 2000 the charge was reduced to an annual
rate of .15%.
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 2000. It is the Investment Company's practice to declare and
pay dividends at the end of the year.
On April 26, 2000, a dividend was paid by the Scudder Bond Portfolio. The
amount of the dividend was $11,591.
On April 26, 2000, a dividend was paid by the Scudder Capital Growth
Portfolio. The amount of the dividend was $1,003,010.
On April 26, 2000, a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $608,462.
On March 10, 2000, a dividend was paid by the American Century VP Capital
Appreciation Fund. The amount of the dividend was $100,305.
On February 4, 2000, a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $214,519.
On February 4, 2000, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $1,186,459.
On February 4, 2000, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $203,724.
5. Financial Highlights
Shown below are financial highlights for a Unit outstanding throughout the
six months ended June 30, 2000 and each of the previous five years ended
December 31, 1999 or, if not in existence a full year, the initial period ended
December 31:
<TABLE>
<CAPTION>
Investment Company
--------------------------------------------------------------
Money Market Fund
--------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ................. $ 2.11 $ 2.03 $ 1.95 $ 1.87 $ 1.80 $ 1.72
======= ======== ======== ======= ======= =======
Unit value, end of period/year ....................... $ 2.16 $ 2.11 $ 2.03 $ 1.95 $ 1.87 $ 1.80
======= ======== ======== ======= ======= =======
Units outstanding, end of period/year ................ 43,765 670,745 373,107 90,542 66,104 62,822
======= ======== ======== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------
All America Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ................. $ 10.05 $ 8.09 $ 6.76 $ 5.39 $ 4.52 $ 3.35
======== ======== ======== ======== ======== ========
Unit value, end of period/year ....................... $ 10.50 $ 10.05 $ 8.09 $ 6.76 $ 5.39 $ 4.52
======== ======== ======== ======== ======== ========
Units outstanding, end of period/year ................ 183,043 979,623 961,495 919,295 621,536 239,745
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Investment Company
--------------------------------------------------------------------
Equity Index Fund
--------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- ----------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year ................. $ 3.41 $ 2.86 $ 2.26 $ 1.72 $ 1.42 $ 1.05
======== =========== ========== ========== ========= =========
Unit value, end of period/year ....................... $ 3.38 $ 3.41 $ 2.86 $ 2.26 $ 1.72 $ 1.42
======== =========== ========== ========== ========= =========
Units outstanding, end of period/year ................ 676,612 3,981,869 3,950,586 2,496,288 858,298 333,578
======== =========== ========== ========== ========= =========
</TABLE>
14
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. Financial Highlights (Continued)
<TABLE>
<CAPTION>
Investment Company
------------------------------------------------------------------
Mid-Cap Equity Index Fund
-----------------------------------------------------------------
2000 1999*
-------- ---------
<S> <C> <C>
Unit value, beginning of period/year .................. $ 1.11 $ 1.00
======== ========
Unit value, end of period/year ........................ $ 1.19 $ 1.11
======== ========
Units outstanding, end of period/year ................. 314,537 315,623
======== ========
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------
Bond Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- --------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 3.07 $ 3.17 $ 3.00 $ 2.75 $ 2.69 $ 2.28
======= ========= ======== ======== ======== =======
Unit value, end of period/year ........................ $ 3.17 $ 3.07 $ 3.17 $ 3.00 $ 2.75 $ 2.69
======= ========= ======== ======== ======== =======
Units outstanding, end of period/year ................. 51,293 460,800 714,893 301,512 328,371 65,503
======= ========= ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------
Short-Term Bond Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- -------- -------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 1.28 $ 1.24 $ 1.19 $ 1.14 $ 1.10 $ 1.03
======= ======== ======== ======= ======= ======
Unit value, end of period/year ........................ $ 1.32 $ 1.28 $ 1.24 $ 1.19 $ 1.14 $ 1.10
======= ======== ======== ======= ======= ======
Units outstanding, end of period/year ................. 35,868 132,691 126,929 24,344 17,798 5,302
======= ======== ======== ======= ======= ======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------
Mid-Term Bond Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- -------- -------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 1.32 $ 1.32 $ 1.26 $ 1.19 $ 1.16 $ 1.01
======= ======== ======== ======= ======== =======
Unit value, end of period/year ........................ $ 1.34 $ 1.32 $ 1.32 $ 1.26 $ 1.19 $ 1.16
======= ======== ======== ======= ======== =======
Units outstanding, end of period/year ................. 17,483 159,690 197,045 49,001 260,862 18,581
======= ======== ======== ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
--------------------------------------------------------------
Composite Fund
--------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- ----------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 5.61 $ 4.93 $ 4.36 $ 3.75 $ 3.39 $ 2.82
======== ======== ======== ======== ======== ========
Unit value, end of period/year ........................ $ 5.58 $ 5.61 $ 4.93 $ 4.36 $ 3.75 $ 3.39
======== ======== ======== ======== ======== ========
Units outstanding, end of period/year ................. 153,404 875,960 696,121 643,537 456,304 281,905
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Investment Company
-------------------------------------------------------------------
Aggressive Equity Fund
-------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- ---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 2.85 $ 2.02 $ 2.15 $ 1.80 $ 1.43 $ 1.05
======== ========== ========== ========== ========== ========
Unit value, end of period/year ........................ $ 2.94 $ 2.85 $ 2.02 $ 2.15 $ 1.80 $ 1.43
======== ========== ========== ========== ========== ========
Units outstanding, end of period/year ................. 260,658 1,529,685 1,778,370 2,289,562 1,386,311 599,553
======== ========== ========== ========== ========== ========
</TABLE>
----------
* Commenced operations May 3, 1999.
15
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. Financial Highlights (Continued)
<TABLE>
<CAPTION>
Scudder
---------------------------------------------------------------
Bond Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- ------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 12.73 $ 13.02 $ 12.37 $11.48 $11.30 $ 9.69
======= ======= ======= ====== ====== ======
Unit value, end of period/year ........................ $ 13.07 $ 12.73 $ 13.02 $12.37 $11.48 $11.30
======= ======= ======= ====== ====== ======
Units outstanding, end of period/year ................. 5,073 20,522 26,966 7,927 3,877 2,407
======= ======= ======= ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Scudder
---------------------------------------------------------------
Capital Growth Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 48.17 $ 36.07 $ 29.64 $ 22.11 $ 18.64 $ 14.67
======= ======== ======== ======== ======= =======
Unit value, end of period/year ........................ $ 49.52 $ 48.17 $ 36.07 $ 29.64 $ 22.11 $ 18.64
======= ======== ======== ======== ======= =======
Units outstanding, end of period/year ................. 27,452 172,063 171,014 159,853 73,641 42,366
======= ======== ======== ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Scudder
---------------------------------------------------------------
International Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 25.83 $ 16.93 $ 14.46 $ 13.43 $ 11.85 $ 10.80
======== ======== ======== ======= ======= =======
Unit value, end of period/year ........................ $ 22.89 $ 25.83 $ 16.93 $ 14.46 $ 13.43 $ 11.85
======== ======== ======== ======= ======= =======
Units outstanding, end of period/year ................. 109,640 728,627 105,376 78,166 70,139 29,549
======== ======== ======== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
American Century
---------------------------------------------------------------
VP Capital Appreciation Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 17.40 $ 10.69 $ 11.04 $ 11.53 $ 12.18 $ 9.39
======= ======= ======= ======= ======= =======
Unit value, end of period/year ........................ $ 20.33 $ 17.40 $ 10.69 $ 11.04 $ 11.53 $ 12.18
======= ======= ======= ======= ======= =======
Units outstanding, end of period/year ................. 40,981 87,702 36,061 44,293 67,688 56,618
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Calvert
---------------------------------------------------------------
Social Balanced Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995
------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 3.37 $ 3.04 $ 2.65 $ 2.23 $ 2.01 $ 1.57
======= ======== ======== ======== ======== =======
Unit value, end of period/year ........................ $ 3.44 $ 3.37 $ 3.04 $ 2.65 $ 2.23 $ 2.01
======= ======== ======== ======== ======== =======
Units outstanding, end of period/year ................. 33,533 252,148 256,931 194,166 100,573 45,392
======= ======== ======== ======== ======== =======
</TABLE>
16
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. Financial Highlights (Continued)
<TABLE>
<CAPTION>
Fidelity VIP
---------------------------------------------------------------
Equity-Income Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995*
------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 32.21 $ 30.65 $ 27.77 $ 21.93 $ 19.43 $ 16.30
======= ======== ======== ======= ======= =======
Unit value, end of period/year ........................ $ 31,19 $ 32.21 $ 30.65 $ 27.77 $ 21.93 $ 19.43
======= ======== ======== ======= ======= =======
Units outstanding, end of period/year ................. 9,084 107,509 115,626 94,213 60,979 17,958
======= ======== ======== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Fidelity VIP II
Contra Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995*
------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 32.13 $ 26.16 $ 20.36 $ 16.59 $ 13.85 $ 11.43
======= ======== ======== ======== ======== =======
Unit value, end of period/year ........................ $ 31.55 $ 32.13 $ 26.16 $ 20.36 $ 16.59 $ 13.85
======= ======== ======== ======== ======== =======
Units outstanding, end of period/year ................. 59,274 291,542 278,931 212,606 153,360 29,132
======= ======== ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Fidelity VIP II
---------------------------------------------------------------
Asset Manager Fund
---------------------------------------------------------------
2000 1999 1998 1997 1996 1995*
------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period/year .................. $ 26.40 $ 24.04 $ 21.14 $ 17.72 $ 15.66 $14.04
======= ======= ======= ======= ======= ======
Unit value, end of period/year ........................ $ 26.09 $ 26.40 $ 24.04 $ 21.14 $ 17.72 $15.66
======= ======= ======= ======= ======= ======
Units outstanding, end of period/year ................. 16,043 75,850 68,139 65,125 36,872 5,561
======= ======= ======= ======= ======= ======
</TABLE>
----------
* Commenced operations May 1, 1995.
17
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 2
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
6. Assumption of Business by an Affiliated Entity and Sale of the Company
In September 1999, Mutual of America Life Insurance Company ("Mutual of
America"), submitted to the New York Insurance Department a Plan of
Reorganization whereby Mutual of America would prepare for the sale of its
wholly owned subsidiary, The American Life Insurance Company of New York ("the
Company"). In preparation for such sale, the Company would transfer (via an
assumption reinsurance agreement) virtually all of the Company's in force
business.
On April 3, 2000, upon obtaining approval from a substantial number of the
Company's policyowners, Mutual of America assumed these contracts and all of the
related assets and obligations, and replaced the Company as the issuer.
Total transfers amounted to $66.9 million and are included in Net
Transfers on the Statements of Changes in Net Assets for each fund. The amounts
transferred into each fund for the six months ended June 30, 2000 are as
follows:
Investment Company Money Market Fund ........................ $ 6,366,322
Investment Company All America Fund ......................... 8,005,827
Investment Company Equity Index Fund ........................ 9,305,499
Investment Company Mid-Cap Equity Index Fund ................ 275,922
Investment Company Bond Fund ................................ 1,055,218
Investment Company Short-Term Bond Fund ..................... 51,001
Investment Company Mid-Term Bond Fund ....................... 54,079
Investment Company Composite Fund ........................... 4,183,362
Investment Company Aggressive Equity Fund ................... 4,735,968
Scudder Bond Fund ........................................... 149,315
Scudder Capital Growth Fund ................................. 6,678,145
Scudder International Fund .................................. 11,616,028
American Century VP Capital Appreciation Fund ............... 3,624,368
Calvert Social Balanced Fund ................................ 656,571
Fidelity VIP Equity-Income Fund ............................. 1,886,149
Fidelity VIP II Contra Fund ................................. 6,974,836
Fidelity VIP II Asset Manager Fund .......................... 1,321,680
On August 4, 2000, Mutual of America entered into a definitive sale
agreement with an unaffiliated buyer, which subject to regulatory approval,
would result in its sale.
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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
