AMERICAN LIFE
SEPARATE ACCOUNT NO. 3
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. 3
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. 3. This Account, which commenced operations in late 1994,
is an investment vehicle for owners of our Variable Universal Life policies.
Separate Account No. 3 consists of seventeen distinct funds. Each invests in
shares of one of nine funds of Mutual of America Investment Corporation
("Investment Company"): the Money Market, All America, Equity Index, Mid-Cap
Equity Index, Bond, Short-Term Bond, Mid-Term Bond, Composite and Aggressive
Equity Funds; three portfolios of Scudder Variable Life Investment Fund
("Scudder"): The Bond, Capital Growth and International Portfolios; the VP
Capital Appreciation Fund of American Century Variable Portfolios, Inc.
("American Century"); the Calvert Social Balanced Portfolio of Calvert Variable
Series, Inc. ("Calvert"); the Equity-Income Portfolio of Fidelity Investments
Variable Insurance Products Fund ("Fidelity VIP"); and the Contrafund and Asset
Manager Portfolios of Fidelity Investments Variable Insurance Products Fund II
("Fidelity VIP II").
Each of the Funds of Separate Account No. 3 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. 3 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).................... + 1.9%
Investment Company All America Fund........................ + 3.9%
Investment Company Equity Index Fund....................... - 1.5%
Investment Company Mid-Cap Equity Index Fund............... + 7.0%
Investment Company Bond Fund............................... + 2.5%
Investment Company Short-Term Bond Fund.................... + 2.2%
Investment Company Mid-Term Bond Fund...................... + 0.6%
Investment Company Composite Fund.......................... - 0.9%
Investment Company Aggressive Equity Fund.................. + 2.7%
Scudder Bond Fund.......................................... + 2.2%
Scudder Capital Growth Fund................................ + 2.3%
Scudder International Fund................................. -11.9%
American Century VP Capital Appreciation Fund.............. +16.4%
Calvert Social Balanced Fund............................... + 1.6%
Fidelity VIP Equity-Income Fund............................ - 3.7%
Fidelity VIP II Contrafund................................. - 2.3%
Fidelity VIP II Asset Manager Fund......................... - 1.7%
----------
(1) The seven-day net annualized effective yield as of 8/15/00 was 4.7%
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 policyowners) 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. 3. Accompanying this report are the financial statements for each
similarly named fund of the Investment Company, portfolios 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. 3 ............... 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. 3
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Investment Company
-------------------------------------------------------------
Money All Equity Mid-Cap
Market America Index Equity 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 -- $8,629
All America Fund -- $243,410
Equity Index Fund -- $166,082
Mid-Cap Equity Index Fund -- $14,859
Bond Fund -- $5,266)
(Notes 1 and 2) ................. $ 8,644 $ 295,547 $ 199,731 $ 16,256 $5,057
Due From (To) General Account ...... (7,558) (189,919) (124,350) (16,235) (605)
------- --------- --------- -------- ------
NET ASSETS ......................... $ 1,086 $ 105,628 $ 75,381 $ 21 $4,452
======= ========= ========= ======== ======
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) .......... 503 10,063 22,308 18 1,406
======= ========= ========= ======== ======
</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 -- $2,516
Mid-Term Bond Fund -- $1,491
Composite Fund -- $69,245
Aggressive Equity Fund -- $182,164)
(Notes 1 and 2)......................................... $2,481 $1,453 $ 72,163 $236,854
Due From (To) General Account.............................. (2,404) (1,392) (36,096) (158,555)
------ ------ -------- --------
NET ASSETS................................................. $ 77 $ 61 $ 36,067 $ 78,299
====== ====== ======== ========
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) ................................. 59 46 6,459 26,597
====== ====== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
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:
Investment in Scudder Portfolio and American Century VP
Capital Application Fund at market value
(Cost:
Scudder Bond Fund -- $15,205
Scudder Capital Growth Fund -- $1,044,397
Scudder International Fund -- $408,061
American Century VP Capital
Appreciation Fund -- $31,295)
(Notes 1 and 2) .................................... $ 4,078 $ 235,785 $ 74,628 $ 48,598
Due From (To) General Account ......................... (3,199) (128,614) (54,846) (19,396)
--------- --------- --------- ---------
NET ASSETS ............................................ $ 879 $ 107,171 $ 19,782 $ 29,202
========= ========= ========= =========
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) ............................. 67 2,164 864 1,436
========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Calvert Fidelity
--------- ----------------------------------------
Social VIP VIP II VIP II
Balanced Equity-Income Contra Asset Manager
Fund Fund Fund Fund
-------- ------------- ------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in Calvert Social Balanced Portfolio and
Fidelity Portfolios at market value
(Cost:
Calvert Social Balanced Fund -- $85,019
VIP Equity-Income Fund -- $373,865
VIP II Contra Fund -- $645,864
VIP II Asset Manager Fund -- $253,598)
(Notes 1 and 2)......................................... $39,786 $114,327 $166,319 $165,101
Due From (To) General Account.............................. (17,618) (61,906) (96,598) (30,054)
------- ------- ------- -------
NET ASSETS................................................. $22,168 $ 52,421 $ 69,721 $135,047
======= ======== ======== ========
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) ................................. 6,440 1,680 2,210 5,177
======= ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------
Mid-Cap
Money Market All America Equity 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 ............ 147 7,209 4,166 83
---- --------- -------- -------
NET INVESTMENT INCOME (LOSS) ................... (147) (7,209) (4,166) (83)
---- --------- -------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
Investments (Note 1):
Net realized gain (loss) on investments ..... (62) 250,084 118,877 407
Net unrealized appreciation (depreciation) of
investments ............................... 276 (143,024) (106,520) 817
---- --------- -------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS ................................ 214 107,060 12,357 1,224
---- --------- -------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................... $ 67 $ 99,851 $ 8,191 $ 1,141
==== ========= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Investment Company
-------------------------------------------------------------
Aggressive
Bond Short-Term Mid-Term Composite Equity
Fund Bond Fund Bond 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.................. 395 22 41 2,910 3,025
----- ---- ---- ------- --------
NET INVESTMENT INCOME (LOSS)......................... (395) (22) (41) (2,910) (3,025)
----- ---- ---- ------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 1):
Net realized gain (loss) on investments........... (2,489) (52) (156) 29,900 118,916
Net unrealized appreciation (depreciation) of
investments..................................... 3,667 145 223 (17,042) (75,732)
----- ---- ---- ------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS....................................... 1,178 93 67 12,858 43,184
----- ---- ---- ------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS......................... $ 783 $ 71 $ 26 $ 9,948 $ 40,159
===== ==== ==== ======= ========
</TABLE>
----------
* Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
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 ....................... $ 454 $ 128,664 $ 29,039 $ 5,234
--------- --------- --------- ---------
Expenses (Note 3):
Fees and administrative expenses ...... 113 5,278 1,529 961
--------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS) ............. 341 123,386 27,510 4,273
--------- --------- --------- ---------
NET REALIZED AND UNREALIZED
Gain (Loss) on Investments (Note 1):
Net realized gain (loss) on investments 5,280 876,456 280,830 48,327
Net unrealized appreciation
(depreciation) of investments ...... (5,532) (991,624) (339,687) (30,981)
--------- --------- --------- ---------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS ............ (252) (115,168) (58,857) 17,346
--------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ 89 $ 8,218 $ (31,347) $ 21,619
========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Calvert Fidelity
---------- -----------------------------------------
Social VIP VIP II VIP II
Balanced Equity-Income Contra Asset Manager
Fund Fund Fund Fund
---------- ------------- -------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES:
Income (Notes 1 and 4):
Dividend Income.................................. $ -- $ 18,924 $ 74,470 $ 21,846
------- --------- -------- --------
Expenses (Note 3):
Fees and administrative expenses................. 546 2,111 3,404 1,470
------- --------- -------- --------
NET INVESTMENT INCOME (LOSS) ....................... (546) 16,813 71,066 20,376
------- --------- -------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (Note 1):
Net realized gain (loss) on investments.......... 38,165 149,694 484,136 46,863
Net unrealized appreciation
(depreciation) of investments.................. (36,592) (169,343) (567,695) (70,052)
------- --------- -------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS....................... 1,573 (19,649) (83,599) (23,189)
------- --------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ....................... $ 1,027 $ (2,836) $(12,493) $ (2,813)
======= ========= ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
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) ........ $ (147) $ 163 $ (7,209) $ 76,150 $ (4,166) $ 9,502
Net realized gain (loss) on
investments ...................... (62) 9 250,084 5,982 118,877 2,583
Net unrealized appreciation
(depreciation) of investments .... 276 (90) (143,024) 142,058 (106,520) 86,992
-------- ------- ----------- ---------- --------- --------
Net Increase (Decrease) in net assets
resulting from operations ....... 67 82 99,851 224,190 8,191 99,077
-------- ------- ----------- ---------- --------- --------
From Unit Transactions:
Contributions ....................... 3,816 5,763 85,702 225,775 74,809 200,423
Withdrawals ......................... (80) (741) (55) (14,164) (11,206) (10,982)
Net Transfers (Note 6) .............. (13,460) (687) (1,292,647) (78,826) (697,703) 10,361
-------- ------- ----------- ---------- --------- --------
Net Increase (Decrease) from unit
transactions ....................... (9,724) 4,335 (1,207,000) 132,785 (634,100) 199,802
-------- ------- ----------- ---------- --------- --------
NET INCREASE (DECREASE) IN~ NET ASSETS (9,657) 4,417 (1,107,149) 356,975 (625,909) 298,879
NET ASSETS:
Beginning of Period/Year ............... 10,743 6,326 1,212,777 855,802 701,290 402,411
-------- ------- ----------- ---------- --------- --------
End of Period/Year ..................... $ 1,086 $10,743 $ 105,628 $1,212,777 $ 75 $701,290
======== ======= =========== ========== ========= ========
Investment Company
---------------------------------------------------------------------------------------
Mid-Cap
Equity Index Fund Bond Fund Short-Term Fund
--------------------------- --------------------------- ---------------------------
For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, 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) ..... $ (83) $ 30 $ (395) $ 1,367 $ (22) $ 218
Net realized gain (loss) on
investments .................... 407 (1) (2,489) (728) (52) 7
Net unrealized appreciation
(depreciation) of investments .. 817 580 3,667 (2,629) 145 (119)
-------- ------- -------- -------- -------- ------
Net Increase (Decrease) in net assets
resulting from operations ...... 1,141 609 783 (1,990) 71 106
-------- ------- -------- -------- -------- ------
From Unit Transactions:
Contributions .................... 1,839 1,768 6,568 23,334 426 1,436
Withdrawals ...................... -- -- (870) (1,742) (8,190) (553)
Net Transfers (Note 6) ........... (13,499) 8,163 (38,184) (23,253) 4,435 (668)
-------- ------- -------- -------- -------- ------
Net Increase (Decrease) from unit
transactions .................... (11,660) 9,931 (32,486) (1,661) (3,329) 215
-------- ------- -------- -------- -------- ------
NET INCREASE (DECREASE) IN
NET ASSETS ...................... (10,519) 10,540 (31,703) (3,651) (3,258) 321
NET ASSETS:
Beginning of Period/Year ............ 10,540 -- 36,155 39,806 3,335 3,014
-------- ------- -------- -------- -------- ------
End of Period/Year .................. $ 21 $10,540 $ 4,452 $ 36,155 $ 77 $3,335
======== ======= ======== ======== ======== ======
</TABLE>
-------------
* Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------------------------------
Mid-Term Aggressive
Bond Fund Composite Fund Equity 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) ..... $ (41) $ 111 $ (2,910) $ 24,556 $ (3,025) $ (4,624)
Net realized gain (loss) on
investments .................... (156) (39) 29,900 3,345 118,916 (1,287)
Net unrealized appreciation
(depreciation) of investments ... 223 (155) (17,042) 28,739 (75,732) 146,822
------- ------- --------- --------- --------- ---------
Net Increase (Decrease) in net assets
resulting from operations ....... 26 (83) 9,948 56,640 40,159 140,911
------- ------- --------- --------- --------- ---------
From Unit Transactions:
Contributions .................... 1,093 3,734 53,756 143,578 41,855 122,221
Withdrawals ...................... -- (33) (9,714) (7,275) (20,703) (11,223)
Net Transfers (Note 6) ........... (4,925) (2,933) (482,835) (230,186) (480,461) (51,648)
------- ------- --------- --------- --------- ---------
Net Increase (Decrease) from unit
transactions .................... (3,832) 768 (438,793) (93,883) (459,309) 59,350
------- ------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN
NET ASSETS ....................... (3,806) 685 (428,845) (37,243) (419,150) 200,261
NET ASSETS:
Beginning of Period/Year ............ 3,867 3,182 464,912 502,155 497,449 297,188
------- ------- --------- --------- --------- ---------
End of Period/Year .................. $ 61 $ 3,867 $ 36,067 $ 464,912 $ 78,299 $ 497,449
======= ======= ========= ========= ========= =========
</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) ..... $ 341 $ 63 $ 123,386 $ 62,803 $ 27,510 $ 13,947
Net realized gain (loss) on
investments .................... 5,280 2,420 876,456 29,561 280,830 42,870
Net unrealized appreciation
(depreciation) of investments .. (5,532) (2,853) (991,624) 150,030 (339,687) 41,902
------- ------- ---------- ---------- --------- --------
Net Increase (Decrease) in net assets
resulting from operations ........ 89 (370) 8,218 242,394 (31,347) 98,719
------- ------- ---------- ---------- --------- --------
From Unit Transactions:
Contributions .................... 1,395 6,655 71,952 179,349 17,103 48,408
Withdrawals ...................... -- (7,951) (7,995) (19,485) (9,805) (4,488)
Net Transfers (Note 6) ........... (8,541) 2,657 (967,451) (32,768) (261,664) 5,086
------- ------- ---------- ---------- --------- --------
Net Increase (Decrease) from unit
transactions ..................... (7,146) 1,361 (903,494) 127,096 (254,366) 49,006
------- ------- ---------- ---------- --------- --------
NET INCREASE (DECREASE) IN
NET ASSETS ....................... (7,057) 991 (895,276) 369,490 (285,713) 147,725
NET ASSETS:
Beginning of Period/Year ............ 7,936 6,945 1,002,447 632,957 305,495 157,770
------- ------- ---------- ---------- --------- --------
End of Period/Year .................. $ 879 $ 7,936 $ 107,171 $1,002,447 $ 19,782 $305,495
======= ======= ========== ========== ========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
American Century Calvert
----------------------------------------------------------
VP Capital Appreciation Fund Social 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)................................... $ 4,273 $ (1,339) $ (546) $ 5,513
Net realized gain (loss) on investments........................ 48,327 (538) 38,165 2,463
Net unrealized appreciation (depreciation) of investments...... (30,981) 61,812 (36,592) (2,145)
--------- -------- -------- -------
Net Increase (Decrease) in net assets resulting
from operations................................................ 21,619 59,935 1,027 5,831
--------- -------- -------- -------
From Unit Transactions:
Contributions.................................................. 7,475 19,332 9,913 29,109
Withdrawals.................................................... (12,254) (3,725) (6,375) (1,433)
Net Transfers (Note 6)......................................... (145,289) (12,717) (51,779) (10,503)
--------- -------- -------- -------
Net Increase (Decrease) from unit transactions.................... (150,068) 2,890 (48,241) 17,173
--------- -------- -------- -------
NET INCREASE (DECREASE) IN NET ASSETS............................. (128,449) 62,825 (47,214) 23,004
NET ASSETS:
Beginning of Period/Year.......................................... 157,651 94,826 69,382 46,378
--------- -------- -------- -------
End of Period/Year................................................ $ 29,202 $157,651 $ 22,168 $69,382
========= ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Fidelity
---------------------------------------------------------------------------------------
VIP Equity-Income Fund VIP II Contra Fund VIP Asset Manager 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) ..... $ 16,813 $ 5,409 $ 71,066 $ 9,669 $ 20,376 $ 8,625
Net realized gain (loss) on
investments .................... 149,694 49,375 484,136 26,565 46,863 7,343
Net unrealized appreciation
(depreciation) of investments .. (169,343) (45,328) (567,695) 62,794 (70,052) 169
--------- -------- --------- -------- -------- --------
Net Increase (Decrease) in net assets
resulting from operations ........ (2,836) 9,456 (12,493) 99,028 (2,813) 16,137
--------- -------- --------- -------- -------- --------
From Unit Transactions:
Contributions .................... 33,031 102,202 43,239 128,973 14,558 63,355
Withdrawals ...................... (5,125) (20,796) (3,516) (14,050) (1,203) (3,675)
Net Transfers (Note 6) ........... (211,579) (73,688) (545,327) (3,218) (79,640) (23,061)
--------- -------- --------- -------- -------- --------
Net Increase (Decrease) from
unit transactions ................ (183,673) 7,718 (505,604) 111,705 (66,285) 36,619
--------- -------- --------- -------- -------- --------
NET INCREASE (DECREASE) IN
NET ASSETS ....................... (186,509) 17,174 (518,097) 210,733 (69,098) 52,756
NET ASSETS:
Beginning of Period/Year ............ 238,930 221,756 587,818 377,085 204,145 151,389
--------- -------- --------- -------- -------- --------
End of Period/Year .................. $ 52,421 $238,930 $ 69,721 $587,818 $135,047 $204,145
========= ======== ========= ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Separate Account No. 3 of The American Life Insurance Company of New York
("the Company") was established in conformity with New York Insurance Law and
commenced operations on December 21, 1994 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, Aggressive Equity
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 1, 1995, Fidelity Investments Equity-Income, Contrafund and Asset
Manager Funds became available to Separate Account No. 3 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 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. 3.
Separate Account No. 3 was formed by the Company to support the operations
of the Company's variable universal life insurance policies. The assets of
Separate Account No. 3 are the property of the Company. The portion of Separate
Account No. 3's assets applicable to the policies will not be charged with
liabilities arising out of any other business the Company may conduct.
The significant accounting policies of Separate Account No. 3 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 and 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. 3 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.
2. INVESTMENTS
The number of shares owned by Separate Account No. 3 and the 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:............................ 7,075 $ 1.22
All America Fund.............................. 83,565 3.54
Equity Index Fund............................. 69,603 2.87
Mid-Cap Equity Index Fund..................... 13,567 1.20
Bond Fund..................................... 3,762 1.34
Short-Term Bond Fund.......................... 2,420 1.03
Mid-Term Bond Fund............................ 1,650 0.88
Composite Fund................................ 37,816 1.91
Aggressive Equity Fund........................ 105,604 2.24
Scudder Portfolios:
Bond Portfolio................................ 643 6.34
Capital Growth Portfolio--Class "A"........... 8,908 26.47
International Portfolio--Class "A" ........... 4,598 16.23
12
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. INVESTMENTS (CONTINUED)
Number of Net Asset
Shares Value
--------- ---------
American Century VP Capital Appreciation Fund........ 2,860 $16.99
Calvert Social Balanced Portfolio.................... 17,857 2.23
Fidelity Portfolios:
Equity-Income--"Initial" Class.................... 4,990 22.91
Contrafund--"Initial" Class....................... 6,629 25.09
Asset Manager--"Initial" Class.................... 9,982 16.55
3. EXPENSES
Administrative Fees and Expenses and Cost of Insurance -- In connection
with its administrative functions, the Company deducts daily charges at an
annual rate of .40% (except for American Century for which the rate charged is
.20% and each Fidelity fund, for which the rate is .30%) from the value of the
net assets of each Fund. Monthly charges equaling the lesser of $2.00 or 1/12 of
1% of account value may also be deducted. The cost of insurance, to compensate
the Company for life insurance coverage provided under the policies, is deducted
monthly and reflected as net transfers in the accompanying financial statements.
Mortality and Expense Risk Fees -- The Company assumes the risk that
insureds may live for a shorter period of time than estimated for purposes of
current or guaranteed cost of insurance rates; for this it deducts a mortality
risk charge daily, at an annual rate of .35% (.70 before May 1, 2000), from the
value of the net assets of each Fund. An expense risk charge, deducted daily, at
an annual rate of .15% from the value of the net assets of each Fund,
compensates the Company for the risk that administrative expenses incurred will
be greater than estimated.
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 $454.
On April 26, 2000, a dividend was paid by the Scudder Capital Growth
Portfolio. The amount of the dividend was $128,664.
On April 26, 2000, a dividend was paid by the Scudder International
Portfolio. The amount of the dividend was $29,039.
On March 10, 2000, a dividend was paid by the American Century VP Capital
Appreciation Fund. The amount of the dividend was $5,234.
On February 4, 2000, a dividend was paid by the Fidelity Equity-Income
Portfolio. The amount of the dividend was $18,924.
On February 4, 2000, a dividend was paid by the Fidelity Contrafund
Portfolio. The amount of the dividend was $74,470.
On February 4, 2000, a dividend was paid by the Fidelity Asset Manager
Portfolio. The amount of the dividend was $21,846.
13
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. FINANCIAL HIGHLIGHTS
Shown below are financial highlights for a Unit outstanding for the six
months ended June 30, 2000 and each of the 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 All America Fund
--------------------------------------------- -------------------------------------------------
2000 1999 1998 1997 1996 1995 2000 1999 1998 1997 1996 1995
----- ----- ----- ----- ----- ----- ------ ------- ------- ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ........ $2.11 $2.03 $1.95 $1.87 $1.80 $1.77 $10.05 $ 8.09 $ 6.76 $ 5.39 $ 4.52 $3.36
===== ===== ===== ===== ===== ===== ====== ======= ======= ====== ====== =====
Unit value, end
of period/year ........ $2.16 $2.11 $2.03 $1.95 $1.87 $1.80 $10.50 $ 10.05 $ 8.09 $ 6.76 $ 5.39 $4.52
===== ===== ===== ===== ===== ===== ====== ======= ======= ====== ====== =====
Units outstanding,
end of period/year .... 503 5,096 3,113 1,755 442 25 10,063 120,656 105,770 81,264 39,912 9,813
===== ===== ===== ===== ===== ===== ====== ======= ======= ====== ====== =====
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------------------------------------------------
Mid-Cap
Equity
Equity Index Fund Index Fund Bond Fund
----------------------------------------------- ------------ ------------------------------------------
2000 1999 1998 1997 1996 1995 2000 1999* 2000 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ----- ----- ----- ----- ------ ------ ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ....... $ 3.41 $ 2.86 $ 2.26 $ 1.72 $ 1.42 $1.25 $1.11 $1.00 $3.07 $ 3.17 $ 3.00 $2.75 $2.69 $2.36
====== ====== ====== ====== ====== ===== ===== ===== ===== ====== ====== ===== ===== =====
Unit value, end
of period/year. ...... $ 3.38 $ 3.41 $ 2.86 $ 2.26 $ 1.72 $1.42 $1.19 $1.11 $3.17 $ 3.07 $ 3.17 $3.00 $2.75 $2.69
====== ====== ====== ====== ====== ===== ===== ===== ===== ====== ====== ===== ===== =====
Units outstanding,
end of period/year ... 22,308 205,553 140,499 71,579 26,794 4,449 18 9,513 1,406 11,766 12,551 7,204 3,239 507
====== ======= ======= ====== ====== ===== ===== ===== ===== ====== ====== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Investment Company
----------------------------------------------------------------------------------------------------------
Short-Term Bond Fund Mid-Term Bond Fund
------------------------------------------------ -------------------------------------------------
2000 1999 1998 1997 1996 1995 2000 1999 1998 1997 1996 1995
----- ----- ---- ---- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ....... $1.28 $1.24 $1.19 $1.14 $1.10 $1.08 $1.32 $1.32 $1.26 $1.19 $1.16 $1.11
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Unit value, end
of period/year. ...... $1.32 $1.28 $1.24 $1.19 $1.14 $1.10 $1.34 $1.32 $1.32 $1.26 $1.19 $1.16
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Units outstanding,
end of period/year ... 59 2,603 2,422 1,530 908 302 46 2,919 2,404 1,374 460 28
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Investment Company
---------------------------------------------------------------------------------------------------------
Composite Fund Aggressive Equity Fund
------------------------------------------------- ---------------------------------------------------
2000 1999 1998 1997 1996 1995 2000 1999 1998 1997 1996 1995
----- ------ ------ ------ ------ ----- ------ ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ....... $5.61 $ 4.93 $ 4.36 $ 3.75 $ 3.39 $3.14 $ 2.85 $ 2.02 $ 2.15 $ 1.80 $ 1.43 $ 1.05
===== ====== ====== ====== ====== ===== ====== ======= ======= ======= ====== ======
Unit value, end
of period/year........ $5.58 $ 5.61 $ 4.93 $ 4.36 $ 3.75 $3.39 $ 2.94 $ 2.85 $ 2.02 $ 2.15 $ 1.80 $ 1.43
===== ====== ====== ====== ====== ===== ====== ======= ======= ======= ====== ======
Units outstanding,
end of period/year ... 6,459 82,918 101,886 79,417 27,055 2,688 26,597 174,367 147,405 103,218 46,985 12,411
===== ====== ======= ====== ====== ===== ====== ======= ======= ======= ====== ======
</TABLE>
-------------
* Commenced operations May 3, 1999.
14
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
5. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Scudder
------------------------------------------------------------------------------------------------------
Bond Fund Capital Growth Fund
------------------------------------------------ ------------------------------------------------
2000 1999 1998 1997 1996 1995 2000 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ....... $12.73 $13.02 $12.37 $11.48 $11.30 $10.68 $48.17 $36.07 $29.64 $22.11 $18.64 $14.67
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end
of period/year ....... $13.07 $12.73 $13.02 $12.37 $11.48 $11.30 $49.52 $48.17 $36.07 $29.64 $22.11 $18.64
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Units outstanding,
end of period/year ... 67 623 534 340 120 35 2.164 20,809 17,547 970 5,067 2,011
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</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........................................ 864 11,828 9,321 7,377 5,193 715
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
American Century Calvert
--------------------------------------------------------------------------------------------------------
VP Capital Appreciation Fund Social Balanced Fund
--------------------------------------------------- -----------------------------------------------
2000 1999 1998 1997 1996 1995 2000 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------ ----- ------ ------ ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ...... $17.40 $10.69 $11.04 $11.53 $12.18 $11.14 $3.37 $ 3.04 $ 2.65 $2.23 $2.01 $1.89
====== ====== ====== ====== ====== ====== ===== ====== ====== ===== ===== =====
Unit value, end
of period/year ...... $20.33 $17.40 $10.69 $11.04 $11.53 $12.18 $3.44 $ 3.37 $ 3.04 $2.65 $2.23 $2.01
====== ====== ====== ====== ====== ====== ===== ====== ====== ===== ===== =====
Units outstanding,
end of period/year .. 1,436 9,062 8,874 7,282 5,921 4,409 6,440 20,588 15,253 9,760 2,364 115
====== ====== ====== ====== ====== ====== ===== ====== ====== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Fidelity
----------------------------------------------------------------------------------------------------------
VIP Equity-Income Fund VIP II Contra Fund
--------------------------------------------------- ---------------------------------------------------
2000 1999 1998 1997 1996 1995* 2000 1999 1998 1997 1996 1995*
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning
of period/year ...... $32.21 $30.65 $27.77 $21.93 $19.43 $17.68 $32.13 $26.16 $20.36 $16.59 $13.85 $12.41
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of
period/year ......... $31.19 $32.21 $30.65 $27.77 $21.93 $19.43 $31.55 $32.13 $26.16 $20.36 $16.59 $13.85
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Units outstanding,
end of period/year .. 1,680 7,417 7,236 5,533 2,393 449 2,210 18,296 14,417 11,560 6,672 756
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</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 $14.87
====== ====== ====== ====== ====== ======
Unit value, end of period/year................................................ $26.09 $26.40 $24.04 $21.14 $17.72 $15.66
====== ====== ====== ====== ====== ======
Units outstanding, end of period/year......................................... 5,177 7,732 6,297 4,742 2,639 1,178
====== ====== ====== ====== ====== ======
</TABLE>
-------------
* Commenced operations May 1, 1995.
15
<PAGE>
AMERICAN LIFE SEPARATE ACCOUNT NO. 3
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 has transferred (via
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 related to these contracts amounted to $4.2 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 is as follows:
Investment Company Money Market Fund........................... $ 9,342
Investment Company All America Fund............................ 1,065,521
Investment Company Equity Index Fund........................... 536,403
Investment Company Mid-Cap Equity Index Fund................... 933
Investment Company Bond Fund .................................. 26,237
Investment Company Short-Term Bond Fund........................ 1,191
Investment Company Mid-Term Bond Fund.......................... 2,814
Investment Company Composite Fund.............................. 357,426
Investment Company Aggressive Equity Fund...................... 338,824
Scudder Bond Fund.............................................. 3,650
Scudder Capital Growth Fund.................................... 862,704
Scudder International Fund..................................... 196,485
American Century VP Capital Appreciation Fund.................. 132,433
Calvert Social Balanced Fund................................... 35,528
Fidelity VIP Equity-Income Fund................................ 126,986
Fidelity VIP II Contra Fund.................................... 459,285
Fidelity VIP II Asset Manager Fund............................. 42,426
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.
16
<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
