<PAGE>
Mutual of America
Institutional Funds, Inc.
ANNUAL REPORT
ALL AMERICA FUND
BOND FUND
DECEMBER 31, 1996
This report is not to be construed as an offering for sale. No offering is made
except in conjunction with a prospectus which must precede or accompany this
report.
<PAGE>
CONTENTS
<TABLE>
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PAGE
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President's Message and Performance Graphs................................ 1
Portfolio of Investments in Securities:
All America Fund........................................................ 2
Bond Fund............................................................... 15
Statement of Assets and Liabilities....................................... 16
Statement of Operations................................................... 17
Statement of Changes in Net Assets........................................ 18
Financial Highlights...................................................... 19
Notes to Financial Statements............................................. 20
Report of Independent Public Accountants.................................. 23
</TABLE>
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
We are pleased to provide Mutual of America Institutional Funds' first
annual report to shareholders. The All America Fund and the Bond Fund
commenced operations on May 1, 1996 and are designed principally as investment
vehicles for endowments, foundations and other institutional investors. The
investment philosophy of both funds is modeled after similarly named funds
available under annuity contracts and variable universal life insurance
policies issued by Mutual of America Life Insurance Company and The American
Life Insurance Company of New York.
The funds' performance for the eight months since inception fell below their
respective indices, the S&P 500 Index and the Lehman Brothers
Government/Corporate Index, which can be partially attributable to the time
required to build the portfolios.
The All America Fund's investment objective is to outperform the Standard &
Poor's Composite Index of 500 Stocks by providing a diversified portfolio of
assets with diversified management and a broad exposure to the market. It is
comprised of several distinct segments which have specifically defined roles.
The largest segment (approximately 60%) attempts to reflect the performance of
the Standard & Poor's 500 Index ("S&P 500"). Four smaller segments, managed by
three subadvisors and Mutual of America Capital Management each consisting of
approximately 10% of the portfolio's total assets, comprise the remainder of
the Fund. These segments concentrate in the following areas: small cap value,
small cap growth, large cap value and mid to large cap growth.
The All America Fund experienced a cumulative total return of 10.4% for the
period May 1, 1996 to December 31, 1996, as compared to 14.9% for the S&P 500.
The Bond Fund seeks a high level of return consistent with preservation of
capital through investment in publicly traded investment grade debt
securities. The Bond Fund experienced a cumulative total return of 5.0% for
the period May 1, 1996 through December 31, 1996 as compared to 6.1% for the
Lehman Brothers Government/Corporate Index.
We look forward to participating productively in the equity and fixed income
markets throughout 1997. Relative performance graphs are shown below. The
respective portfolios of each fund and the financial statements are presented
in the pages which follow.
Sincerely,
[SIGNATURE OF DOLORES J. MORRISSEY APPEARS HERE]
Dolores J. Morrissey
Chairman of the Board and President,
Mutual of America Institutional Funds, Inc.
<TABLE>
<CAPTION>
ALL AMERICA FUND
----------------
TOTAL RETURN
PERIOD GROWTH ------------
ENDED OF CUMU- ANNUAL
12/31/96 $10,000 LATIVE AVERAGE
------------------------------------------
<S> <C> <C> <C>
SINCE
INCEPTION* $11,043 10.4% N/A
<CAPTION>
S & P 500 INDEX
---------------
TOTAL RETURN
PERIOD GROWTH ------------
ENDED OF CUMU- ANNUAL
12/31/96 $10,000 LATIVE AVERAGE
------------------------------------------
<S> <C> <C> <C>
SINCE
INCEPTION* $11,490 14.9% N/A
</TABLE>
N/A: The Annual Average Total Return figures for this fund are not presented
since the fund has been operative for less than a year.
[LINE GRAPH APPEARS HERE]
GROWTH OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
ALL AMERICA FUND S & P 500 INDEX
---------------- ---------------
<S> <C> <C>
5/96................... 10,000 10,000
12/96.................. 11,043 11,490
</TABLE>
[LINE GRAPH APPEARS HERE]
GROWTH OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
LEHMAN BROTHERS
BOND FUND GOV'T/CORP BOND INDEX
--------- ---------------------
<S> <C> <C>
5/96................... 10,000 10,000
12/96.................. 10,501 10,610
</TABLE>
<TABLE>
<CAPTION>
BOND FUND
---------
TOTAL RETURN
PERIOD GROWTH ------------
ENDED OF CUMU- AVERAGE
12/31/96 $10,000 LATIVE ANNUAL
------------------------------------------
<S> <C> <C> <C>
SINCE
INCEPTION* $10,501 5.0% N/A
<CAPTION>
LEHMAN BROS. GOV'T/CORP. BOND INDEX
-----------------------------------
TOTAL RETURN
PERIOD GROWTH ------------
ENDED OF CUMU- AVERAGE
12/31/96 $10,000 LATIVE ANNUAL
------------------------------------------
<S> <C> <C> <C>
SINCE
INCEPTION* $10,610 6.1% N/A
</TABLE>
N/A: The Annual Average Total Return figures for this fund are not presented
since the fund has been operative for less than a year.
1
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1996
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SHARES VALUE
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INDEXED ASSETS PORTION:
Common Stocks
3Com Corporation............................................ 1,000 $ 73,375
Abbott Laboratories......................................... 4,600 233,450
Adolph Coors Company........................................ 200 3,800
Advanced Micro Devices, Incorporated........................ 800 20,600
Aetna, Incorporated......................................... 900 72,000
Ahmanson (H.F.) & Company................................... 600 19,500
Air Products and Chemicals, Incorporated.................... 700 48,388
Airtouch Communications, Incorporated....................... 3,000 75,750
Alberto Culver Company...................................... 200 9,600
Albertson's, Incorporated................................... 1,500 53,438
Alcan Aluminium Limited..................................... 1,400 47,075
Alco Standard Corporation................................... 800 41,300
Alexander & Alexander Services, Inc......................... 300 5,213
Allegheny Teledyne, Incorporated............................ 1,000 23,000
Allergan, Incorporated...................................... 400 14,250
AlliedSignal Incorporated................................... 1,700 113,900
Allstate Corporation........................................ 2,700 156,263
Alltel Corporation.......................................... 1,100 34,513
Aluminum Company of America (ALCOA)......................... 1,000 63,750
Alza Corporation............................................ 500 12,938
Amdahl Corporation.......................................... 700 8,488
Amerada Hess Corporation.................................... 600 34,725
American Brands, Incorporated............................... 1,000 49,625
American Electric Power Company............................. 1,100 45,238
American Express Company.................................... 2,800 158,200
American General Corporation................................ 1,200 49,050
American Greetings Corporation.............................. 400 11,350
American Home Products...................................... 3,800 222,775
American International Group, Incorporated.................. 2,800 303,100
American Stores Company..................................... 900 36,788
Ameritech Corporation....................................... 3,300 200,063
Amgen, Incorporated......................................... 1,600 87,000
Amoco Corporation........................................... 3,000 241,500
AMP, Incorporated........................................... 1,300 49,888
AMR Corporation............................................. 500 44,063
Andrew Corporation.......................................... 400 21,225
Anheuser-Busch Companies, Incorporated...................... 3,000 120,000
Aon Corporation............................................. 600 37,275
Apple Computer, Incorporated................................ 700 14,613
Applied Materials, Incorporated............................. 1,100 39,531
Archer-Daniels-Midland Company.............................. 3,300 72,600
Armco, Incorporated......................................... 600 2,475
Armstrong World Industries, Incorporated.................... 200 13,900
Asarco, Incorporated........................................ 300 7,463
Ashland Incorporated........................................ 400 17,550
AT&T Corporation............................................ 9,600 417,600
Atlantic Richfield Company (ARCO)........................... 1,000 132,500
Autodesk, Incorporated...................................... 300 8,400
Automatic Data Processing, Incorporated..................... 1,700 72,888
Autozone Inc................................................ 1,000 27,500
Avery Dennison Corporation.................................. 600 21,225
Avon Products, Incorporated................................. 800 45,700
Baker Hughes, Incorporated.................................. 900 31,050
Ball Corporation............................................ 200 5,200
Baltimore Gas and Electric Company.......................... 900 24,075
Banc One Corporation........................................ 2,600 111,800
Bank of Boston Corporation.................................. 900 57,825
Bank of New York Company, Incorporated...................... 2,300 77,625
BankAmerica Corporation..................................... 2,100 209,475
Bankers Trust New York Corporation.......................... 500 43,125
Bard (C.R.), Incorporated................................... 300 8,400
Barnett Banks, Incorporated................................. 1,200 49,350
Barrick Gold Corporation.................................... 2,100 60,375
Battle Mountain Gold Company................................ 1,300 8,938
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
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SHARES VALUE
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INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
Bausch & Lomb, Incorporated................................. 300 $ 10,500
Baxter International Incorporated........................... 1,600 65,600
Bay Networks, Incorporated.................................. 1,200 25,050
Becton, Dickinson & Company................................. 700 30,363
Bell Atlantic Corporation................................... 2,600 168,350
BellSouth Corporation....................................... 5,900 238,213
Bemis Company, Incorporated................................. 300 11,063
Beneficial Corporation...................................... 300 19,013
Bethlehem Steel Corporation................................. 700 6,300
Beverly Enterprises......................................... 600 7,650
Biomet, Incorporated........................................ 700 10,588
Black & Decker Corporation.................................. 500 15,063
Boatmen's Bancshares, Incorporated.......................... 900 58,050
Boeing Company.............................................. 2,100 223,388
Boise Cascade Corporation................................... 300 9,525
Boston Scientific Corporation............................... 1,100 66,000
Briggs & Stratton Corporation............................... 200 8,800
Bristol-Myers Squibb Company................................ 3,000 326,250
Brown-Forman Corporation.................................... 400 18,300
Browning-Ferris Industries, Incorporated.................... 1,300 34,125
Brunswick Corporation....................................... 600 14,400
Burlington Northern Santa Fe................................ 900 77,738
Burlington Resources, Incorporated.......................... 700 35,263
Cabletron Systems, Incorporated............................. 900 29,925
Caliber System, Incorporated................................ 200 3,850
Campbell Soup Company....................................... 1,400 112,350
Carolina Power & Light Company.............................. 900 32,850
Case Corporation............................................ 400 21,800
Caterpillar Incorporated.................................... 1,100 82,775
Centex Corporation.......................................... 200 7,525
Central & South West Corporation............................ 1,300 33,313
Ceridian Corporation........................................ 400 16,200
Champion International Corporation.......................... 600 25,950
Charming Shoppes, Incorporated.............................. 600 3,038
Chase Manhattan Corporation................................. 2,600 232,050
Chevron Corporation......................................... 3,900 253,500
Chrysler Corporation........................................ 4,400 145,200
Chubb Corporation........................................... 1,000 53,750
CIGNA Corporation........................................... 400 54,650
Cincinnati Milacron, Incorporated........................... 200 4,375
CINergy Corporation......................................... 900 30,038
Circuit City Stores, Incorporated........................... 600 18,075
Cisco Systems, Incorporated................................. 3,900 248,138
Citicorp.................................................... 2,800 288,400
Clorox Company.............................................. 300 30,113
Coastal Corporation......................................... 600 29,325
Coca-Cola Company........................................... 14,800 778,850
Cognizant Corp.............................................. 1,000 33,000
Colgate-Palmolive Company................................... 900 83,025
Columbia Gas System, Incorporated........................... 300 19,088
Columbia/HCA Healthcare Corporation......................... 4,000 163,000
Comcast Corporation......................................... 2,000 35,625
Comerica, Incorporated...................................... 600 31,425
Compaq Computer Corporation................................. 1,600 118,800
Computer Associates International, Inc...................... 2,200 109,450
Computer Sciences Corporation............................... 500 41,063
ConAgra, Incorporated....................................... 1,400 69,650
Conrail, Incorporated....................................... 500 49,813
Consolidated Edison Company of New York, Inc................ 1,400 40,950
Consolidated Natural Gas Company............................ 600 33,150
Cooper Industries, Incorporated............................. 600 25,275
Cooper Tire and Rubber Company.............................. 500 9,875
Corestates Financial Corporation............................ 1,300 67,438
Corning, Incorporated....................................... 1,400 64,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
CPC International, Incorporated............................. 900 $ 69,750
Crane Company............................................... 300 8,700
Crown Cork & Seal Company, Incorporated..................... 800 43,500
CSX Corporation............................................. 1,300 54,925
CUC International, Incorporated............................. 2,400 57,000
Cummins Engine Company, Incorporated........................ 200 9,200
CVS Corporation............................................. 600 24,825
Cyprus Amax Minerals Company................................ 600 14,025
Dana Corporation............................................ 600 19,575
Darden Restaurants, Incorporated............................ 900 7,875
Data General Corporation.................................... 200 2,900
Dayton Hudson Corporation................................... 1,300 51,025
Dean Witter Discover and Company............................ 1,000 66,250
Deere & Company............................................. 1,500 60,938
Dell Computer Corporation................................... 1,100 58,438
Delta Air Lines, Incorporated............................... 400 28,350
Deluxe Corporation.......................................... 500 16,375
Digital Equipment Corporation............................... 900 32,738
Dillard Department Stores, Incorporated..................... 700 21,613
Dominion Resources, Incorporated............................ 1,100 42,350
Donnelley (R.R.) & Sons Company............................. 900 28,238
Dover Corporation........................................... 700 35,175
Dow Chemical Company........................................ 1,500 117,563
Dow Jones & Company, Incorporated........................... 600 20,325
Dresser Industries, Incorporated............................ 1,100 34,100
DSC Communications Corporation.............................. 700 12,513
DTE Energy Company.......................................... 900 29,138
Duke Power Company.......................................... 1,200 55,500
Dun & Bradstreet Corporation................................ 1,000 23,750
E. I. du Pont de Nemours and Company........................ 3,400 320,875
Eastern Enterprises......................................... 100 3,538
Eastman Chemical Company.................................... 500 27,625
Eastman Kodak Company....................................... 2,000 160,500
Eaton Corporation........................................... 500 34,875
Echlin, Incorporated........................................ 400 12,650
Echo Bay Mines Limited...................................... 800 5,300
Ecolab, Incorporated........................................ 400 15,050
Edison International........................................ 2,600 51,675
EG&G, Incorporated.......................................... 300 6,038
Eli Lilly & Company......................................... 3,300 240,900
EMC Corporation............................................. 1,400 46,375
Emerson Electric Company.................................... 1,300 125,775
Engelhard Corporation....................................... 900 17,213
Enron Corporation........................................... 1,500 64,688
ENSERCH Corporation......................................... 400 9,200
Entergy Corporation......................................... 1,400 38,850
Exxon Corporation........................................... 7,400 725,200
Federal Express Corporation................................. 700 31,150
Federal Home Loan Mortgage Corporation...................... 1,100 121,138
Federal National Mortgage Association....................... 6,500 242,125
Federated Department Stores, Incorporated................... 1,200 40,950
Fifth Third Bancorp......................................... 600 37,688
First Bank System, Incorporated............................. 800 54,600
First Chicago NBD Corporation............................... 1,900 102,125
First Data Corporation...................................... 2,700 98,550
First Union Corporation..................................... 1,700 125,800
Fleet Financial Group, Incorporated......................... 1,600 79,800
Fleetwood Enterprises, Incorporated......................... 200 5,500
Fleming Companies, Incorporated............................. 200 3,450
Flour Corporation........................................... 500 31,375
FMC Corporation............................................. 200 14,025
Ford Motor Company.......................................... 7,100 226,313
Foster Wheeler Corporation.................................. 200 7,425
FPL Group, Incorporated..................................... 1,100 50,600
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
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SHARES VALUE
------ -----------
<S> <C> <C>
INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
Freeport-McMoRan Copper & Gold, Inc......................... 1,200 $ 35,850
Frontier Corp............................................... 1,100 24,888
Fruit of the Loom, Incorporated............................. 500 18,938
Gannett Company, Incorporated............................... 800 59,900
Gap, Incorporated........................................... 1,700 51,213
General Dynamics Corporation................................ 400 28,200
General Electric Company.................................... 9,800 968,913
General Instrument Corporation.............................. 800 17,300
General Mills, Incorporated................................. 900 57,038
General Motors Corporation.................................. 4,500 250,875
General Re Corporation...................................... 500 78,875
General Signal Corporation.................................. 300 12,825
Genuine Parts Company....................................... 700 31,150
Georgia Pacific Corporation................................. 500 36,000
Giant Food, Incorporated.................................... 400 13,800
Giddings & Lewis, Incorporated.............................. 200 2,575
Gillette Company............................................ 2,700 209,925
Golden West Financial Corporation........................... 300 18,938
Goodrich (B.F.) Company..................................... 300 12,150
Goodyear Tire & Rubber Company.............................. 900 46,238
GPU, Incorporated........................................... 700 23,538
Grainger (W.W.), Incorporated............................... 300 24,075
Great Atlantic & Pacific Tea Company, Incorp................ 200 6,375
Great Lakes Chemical Corporation............................ 400 18,700
Great Western Financial Corporation......................... 800 23,200
Green Tree Financial Corporation............................ 800 30,900
GTE Corporation............................................. 5,700 259,350
Guidant Corp................................................ 400 22,800
H&R Block, Incorporated..................................... 600 17,400
Halliburton Company......................................... 700 42,175
Harcourt General, Incorporated.............................. 400 18,450
Harnischfeger Industries, Incorporated...................... 300 14,438
Harrah's Entertainment, Incorporated........................ 600 11,925
Harris Corporation.......................................... 200 13,725
Hasbro, Incorporated........................................ 500 19,438
Heinz (H.J.) Company........................................ 2,200 78,650
Helmerich & Payne, Incorporated............................. 100 5,213
Hercules, Incorporated...................................... 600 25,950
Hershey Foods Corporation................................... 900 39,375
Hewlett--Packard Company.................................... 6,100 306,525
HFS, Incorporated........................................... 800 47,800
Hilton Hotels Corporation................................... 1,500 39,188
Home Depot, Incorporated.................................... 2,900 145,363
Homestake Mining Company.................................... 900 12,825
Honeywell, Incorporated..................................... 800 52,600
Household International, Incorporated....................... 600 55,350
Houston Industries, Incorporated............................ 1,400 31,675
Humana, Incorporated........................................ 1,000 19,125
Illinois Tool Works, Incorporated........................... 700 55,913
Inco, Limited............................................... 1,000 31,875
Ingersoll-Rand Company...................................... 700 31,150
Inland Steel Industries, Incorporated....................... 300 6,000
Intel Corporation........................................... 4,900 641,594
Intergraph Corporation...................................... 300 3,075
International Business Machines Corp........................ 3,100 468,100
International Flavors & Fragrances, Inc..................... 700 31,500
International Paper Company................................. 1,800 72,675
Interpublic Group of companies, Inc......................... 500 23,750
ITT Corporation............................................. 700 30,363
ITT Hartford Group, Incorporated............................ 700 47,250
ITT Industries.............................................. 700 17,150
J.P. Morgan & Company....................................... 1,100 107,388
James River Corporation of Virginia......................... 500 16,563
Jefferson-Pilot Corporation................................. 400 22,650
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
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INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
John H. Harland Company..................................... 200 $ 6,600
Johnson & Johnson........................................... 8,000 398,000
Johnson Controls, Incorporated.............................. 200 16,575
Jostens, Incorporated....................................... 200 4,225
Kaufman & Broad Home Corporation............................ 200 2,575
Kellogg Company............................................. 1,300 85,313
Kerr-McGee Corporation...................................... 300 21,600
KeyCorp..................................................... 1,300 65,650
Kimberly-Clark Corporation.................................. 1,700 161,925
King World Productions Incorporated......................... 200 7,375
Kmart Corporation........................................... 2,900 30,088
Knight-Ridder Incorporated.................................. 600 22,950
Kroger Company.............................................. 800 37,200
Laidlaw Incorporated-Class B................................ 1,900 21,850
Limited Incorporated........................................ 1,600 29,400
Lincoln National Corporation................................ 600 31,500
Liz Claiborne Incorporated.................................. 400 15,450
Lockheed Martin Corporation................................. 1,200 109,800
Loews Corporation........................................... 700 65,975
Longs Drug Stores Incorporated.............................. 100 4,913
Louisiana-Pacific Corporation............................... 700 14,788
Lousiana Land & Exploration Company......................... 200 10,725
Lowe's Companies............................................ 1,000 35,500
LSI Logic Corporation....................................... 800 21,400
Lucent Technologies, Incorporated........................... 3,800 175,750
Mallinckrodt Inc............................................ 400 17,650
Manor Care, Incorporated.................................... 400 10,800
Marriott International, Incorporated........................ 800 44,200
Marsh & McLennan Companies, Inc............................. 400 41,600
Masco Corporation........................................... 1,000 36,000
Mattel, Incorporated........................................ 1,600 44,400
May Department Stores Company............................... 1,500 70,125
Maytag Corporation.......................................... 600 11,850
MBIA Inc.................................................... 300 30,375
MBNA Corporation............................................ 1,300 53,950
McDermott International, Incorporated....................... 300 4,988
McDonald's Corporation...................................... 4,200 190,050
McDonnell Douglas Corporation............................... 1,300 83,200
McGraw-Hill Companies, Incorporated......................... 600 27,675
MCI Communications Corporation.............................. 4,100 134,019
Mead Corporation............................................ 300 17,438
Medtronic, Incorporated..................................... 1,400 95,200
Mellon Bank Corporation..................................... 800 56,800
Melville Corporation........................................ 600 24,825
Mercantile Stores Company, Incorporated..................... 200 9,875
Merck & Company Incorporated................................ 7,200 570,600
Meredith Corporation........................................ 200 10,550
Merrill Lynch & Company, Incorporated....................... 1,000 81,500
MGIC Investment Corporation................................. 400 30,400
Micron Technology, Incorporated............................. 1,200 34,950
Microsoft Corporation....................................... 7,100 586,638
Millipore Corporation....................................... 300 12,413
Minnesota Mining and Manufacturing Company.................. 2,500 207,188
Mobil Corporation........................................... 2,400 293,400
Monsanto Company............................................ 3,500 136,063
Moore Corporation Limited................................... 600 12,225
Morgan Stanley Group, Incorporated.......................... 900 51,413
Morton International, Incorporated.......................... 900 36,675
Motorola, Incorporated...................................... 3,500 214,813
NACCO Industries, Incorporated.............................. 100 5,350
Nalco Chemical Company...................................... 400 14,450
National City Corporation................................... 1,300 58,338
National Semiconductor Corporation.......................... 800 19,500
National Service Industries................................. 300 11,213
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
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INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
NationsBank Corporation..................................... 1,700 $ 166,175
Navistar International Corporation.......................... 400 3,650
New York Times Company...................................... 600 22,800
Newell Company.............................................. 900 28,350
Newmont Mining Corporation.................................. 600 26,850
Niagara Mohawk Power Corporation............................ 900 8,888
NICOR, Incorporated......................................... 300 10,725
Nike, Incorporated.......................................... 1,600 95,600
NorAm Energy Corporation.................................... 800 12,300
Nordstrom, Incorporated..................................... 500 17,719
Norfolk Southern Corporation................................ 700 61,250
Northern States Power Company............................... 400 18,350
Northern Telecom Limited.................................... 1,500 92,813
Northrop Grumman Corporation................................ 300 24,825
Norwest Corporation......................................... 2,200 95,700
Novell, Incorporated........................................ 2,100 19,884
Nucor Corporation........................................... 500 25,500
NYNEX Corporation........................................... 2,600 125,125
Occidental Petroleum Corporation............................ 2,000 46,750
Ohio Edison Company......................................... 900 20,475
ONEOK Incorporated.......................................... 200 6,000
Oracle Corporation.......................................... 3,900 162,825
Oryx Energy Company......................................... 600 14,850
Owens Corning............................................... 300 12,788
P P & L Resources, Incorporated............................. 1,000 23,000
PACCAR Incorporated......................................... 200 13,600
Pacific Enterprises......................................... 500 15,188
Pacific Gas and Electric Company............................ 2,500 52,500
Pacific Telesis Group....................................... 2,600 95,550
PacifiCorp.................................................. 1,800 36,900
Pall Corporation............................................ 700 17,850
Pan Energy Corporation...................................... 900 40,500
Parker-Hannifin Corporation................................. 400 15,500
Peco Energy Company......................................... 1,300 32,825
Penny (J.C.) Corporation.................................... 1,400 68,250
Pennzoil Corporation........................................ 300 16,950
Peoples Energy Corportation................................. 200 6,775
Pep Boys-Manny Moe & Jack................................... 400 12,300
Pepsico Incorporated........................................ 9,300 272,025
Perkin-Elmer Corporation.................................... 300 17,663
Pfizer Incorporated......................................... 3,900 323,213
Pharmacia & Upjohn Incorporated............................. 3,000 118,875
Phelps Dodge Corporation.................................... 400 27,000
Philip Morris Companies, Incorporated....................... 4,900 551,863
Phillips Petroleum Corporation.............................. 1,600 70,800
Pioneer Hi-Bred International Incorporated.................. 500 35,000
Pitney Bowes Incorporated................................... 900 49,050
Placer Dome Incorporated.................................... 1,400 30,450
PNC Bank Corporation........................................ 2,000 75,250
Polaroid Corporation........................................ 300 13,050
Potlatch Corporation........................................ 200 8,600
PPG Industries, Incorporated................................ 1,100 61,738
Praxair Incorporated........................................ 900 41,513
Price/Costco Incorporated................................... 1,200 30,150
Procter & Gamble Corporation................................ 4,100 440,750
Providian Corporation....................................... 600 30,825
Public Service Enterprise Group............................. 1,400 38,150
Pulte Corporation........................................... 100 3,075
Quaker Oats Company......................................... 800 30,500
Ralston-Ralston Purina Group................................ 600 44,025
Raychem Corporation......................................... 300 24,038
Raytheon Company............................................ 1,400 67,375
Reebok International Limited................................ 300 12,600
Republic New York Corporation............................... 300 24,488
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
Reynolds Metals Company..................................... 400 $ 22,550
Rite Aid Corporation........................................ 700 27,825
Rockwell International Corporation.......................... 1,300 79,138
Rohm & Haas Company......................................... 400 32,650
Rowan Companies Incorporated................................ 500 11,313
Royal Dutch Petroleum-New York Shares....................... 3,200 546,400
Rubbermaid Incorporated..................................... 900 20,475
Russell Corporation......................................... 200 5,950
Ryder System, Incorporated.................................. 500 14,063
Safeco Corporation.......................................... 800 31,550
Safety-Kleen Corporation.................................... 300 4,913
Salomon Incorporated........................................ 700 32,988
Santa Fe Energy Resources................................... 500 6,938
Santa Fe Pacific Gold Corporation........................... 800 12,300
Sara Lee Corporation........................................ 2,900 108,025
SBC Communications, Incorporated............................ 3,600 186,300
Schering-Plough Corporation................................. 2,200 142,450
Schlumberger Limited........................................ 1,500 149,813
Scientific-Atlanta Incorporated............................. 500 7,500
Seagate Technology, Incorporated............................ 1,400 55,300
Seagram Company Limited..................................... 2,200 85,250
Sears Roebuck & Company..................................... 2,300 106,088
Service Corporation International........................... 1,400 39,200
Shared Medical Systems Corporation.......................... 100 4,925
Sherwin-Williams Company.................................... 500 28,000
Sigma-Aldrich............................................... 300 18,731
Silicon Graphics Incorporated............................... 1,000 25,500
Snap-On Incorporated........................................ 400 14,250
Sonat Incorporated.......................................... 500 25,750
Southern Company............................................ 4,000 90,500
Southwest Airlines.......................................... 900 19,913
Springs Industries Incorporated-Class A..................... 100 4,300
Sprint Corporation.......................................... 2,600 103,675
St. Jude Medical Incorporated............................... 500 21,313
St. Paul Companies.......................................... 500 29,313
Stanley Works............................................... 500 13,500
Stone Container Corporation................................. 600 8,925
Stride Rite Corporation..................................... 300 3,000
Sun Company Incorporated.................................... 400 9,750
Sun Microsystems, Incorporated.............................. 2,200 56,513
Suntrust Banks Incorporated................................. 1,300 64,025
Supervalu Incorporated...................................... 400 11,350
Sysco Corporation........................................... 1,100 35,888
Tandem Computers Incorporated............................... 700 9,625
Tandy Corporation........................................... 300 13,200
Tektronix Incorporated...................................... 200 10,250
Tele-Communications Incorporated............................ 4,000 52,250
Tellabs, Incorporated....................................... 1,100 41,388
Temple-Inland Incorporated.................................. 300 16,238
Tenet Healthcare Corporation................................ 1,300 28,438
Tenneco Inc................................................. 2,000 90,250
Texaco Incorporated......................................... 1,600 157,000
Texas Instruments Incorporated.............................. 1,100 70,125
Texas Utilities Company..................................... 1,300 52,975
Textron Incorporated........................................ 500 47,125
Thermo Electron Corp........................................ 1,000 41,250
Thomas & Betts Corporation.................................. 300 13,313
Time Warner Incorporated.................................... 3,400 127,500
Times Mirror Company-Class A................................ 600 29,850
Timken Company.............................................. 200 9,175
TJX Companies, Incorporated................................. 500 23,688
Torchmark Corporation....................................... 400 20,200
Toys "R" Us Incorporated.................................... 1,600 48,000
Transamerica Corporation.................................... 400 31,600
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
INDEXED ASSETS PORTION (CONTINUED):
Common Stocks (Continued)
Travelers Group Incorporated............................... 3,800 $ 172,425
Tribune Company............................................ 400 31,550
Trinova Corporation........................................ 200 7,275
TRW Incorporated........................................... 800 39,600
Tupperware Corporation..................................... 400 21,450
Tyco International Limited................................. 900 47,588
Unicom Corporation......................................... 1,300 35,263
Unilever NV................................................ 1,000 175,250
Union Camp Corporation..................................... 400 19,100
Union Carbide Corp. Holding Company........................ 800 32,700
Union Electric Company..................................... 600 23,100
Union Pacific Corporation.................................. 1,500 90,188
Union Pacific Resources Group, Inc......................... 1,500 43,875
Unisys Corporation......................................... 1,000 6,750
United Healthcare Corporation.............................. 1,100 49,500
United Technologies Corporation............................ 1,400 92,400
Unocal Corporation......................................... 1,500 60,938
UNUM Corporation........................................... 400 28,900
US Bancorp................................................. 900 40,444
US Surgical Corporation.................................... 400 15,750
US West Communications Group............................... 2,900 93,525
US West Media Group........................................ 3,700 68,450
USAir Group................................................ 400 9,350
USF&G Corporation.......................................... 700 14,613
USLIFE Corporation......................................... 200 6,650
UST Incorporated........................................... 1,100 35,613
USX-Marathon Group......................................... 1,700 40,588
USX-U.S. Steel Group Incorporated.......................... 500 15,688
VF Corporation............................................. 400 27,000
Viacom Incorporated--Class B............................... 2,100 72,450
W.R. Grace & Company....................................... 500 25,875
Wachovia Corporation....................................... 1,000 56,500
Wal-Mart Stores Incorporated............................... 13,700 313,388
Walgreen Corporation....................................... 1,500 60,000
Walt Disney Company........................................ 4,100 285,463
Warner-Lambert Company..................................... 1,600 120,000
Wells Fargo & Company...................................... 600 161,850
Wendy's International Incorporated......................... 800 16,400
Western Atlas Incorporated................................. 300 21,263
Westinghouse Electric Corporation.......................... 2,500 49,688
Westvaco Corporation....................................... 600 17,250
Weyerhaeuser Company....................................... 1,200 56,850
Whirlpool Corporation...................................... 400 18,650
Whitman Corporation........................................ 600 13,725
Willamette Industries...................................... 300 20,850
Williams Companies Incorporated............................ 900 33,750
Winn-Dixie Stores Incorporated............................. 900 28,463
WMX Technologies Incorporated.............................. 2,900 94,613
Woolworth Corporation...................................... 800 17,500
WorldCom Incorporated...................................... 2,400 62,550
Worthington Industries..................................... 500 9,063
Wrigley (WM) Jr. Company................................... 700 39,375
Xerox Corporation.......................................... 1,900 99,988
-----------
Total Indexed Assets Portion--Common Stocks (Cost: $29,886,821)
61.0%............................................................. 33,741,297
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ------- -----------
<S> <C> <C> <C> <C>
INDEXED ASSETS PORTION (CONTINUED):
Short-Term Debt Securities:
U.S. Treasuries/Agencies (0.2%)
U.S. Treasury Bills........................ 5.00% 1/30/97 $50,000 $ 49,801
Federal Farm Credit........................ 5.50 1/22/97 40,000 39,871
-----------
89,672
-----------
Total Indexed Assets Short-Term Debt Securities (Cost: $89,672)
0.2%............................................................. 89,672
-----------
Total Indexed Assets Portion (Cost: $29,976,493) 61.2%............ 33,830,969
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE PORTION:
Common Stocks
Basic Materials (0.9%)
Delta & Pine Land Company................................... 11,700 $ 374,400
Millennium Chemicals, Incorporated*......................... 5,400 95,850
Titanium Metals Corporation*................................ 1,000 32,875
-----------
503,125
-----------
Consumer, Cyclical (9.2%)
American Greetings Corporation.............................. 5,700 161,735
Atlas Air, Incorporated*.................................... 700 33,425
Borg-Warner Automotive, Incorporated........................ 6,500 250,250
Brunswick Corporation....................................... 5,600 134,400
Callaway Golf Company....................................... 15,000 431,250
Cinar Films, Incorporated*.................................. 2,700 70,200
Compucom Systems, Incorporated*............................. 1,600 17,200
CrosContinent Auto Retailers, Inc*.......................... 1,600 33,400
Designer Holdings Limited*.................................. 1,400 22,575
Eastman Kodak Company....................................... 2,000 160,500
Fine Host Corporation*...................................... 1,600 30,800
Finlay Enterprises, Incorporated*........................... 6,700 103,850
First Alert, Incorporated*.................................. 8,200 27,675
G & K Services, Incorporated-Class A........................ 1,800 67,950
Gannett Company, Incorporated............................... 1,800 134,775
Golden Bear Golf, Incorporated*............................. 5,000 56,250
Gucci Group N V-New York Shares............................. 500 31,938
H&R Block, Incorporated..................................... 3,900 113,100
Harold's Stores, Incorporated*.............................. 3,000 43,125
Jones Apparel Group, Incorporated*.......................... 1,800 67,275
Landrys Seafood Restaurants Inc*............................ 4,000 85,500
Loewen Group, Incorporated.................................. 1,800 70,425
Lone Star Steakhouse & Saloon*.............................. 3,400 90,950
May Department Stores Company............................... 2,400 112,200
Midwest Express Holdings, Incorporated*..................... 4,700 169,200
Nautica Enterprises, Incorporated*.......................... 1,000 25,250
Norton McNaughton, Incorporated*............................ 7,500 63,750
OfficeMax, Incorporated*.................................... 3,200 34,000
Petsmart, Incorporated*..................................... 900 19,688
Ryder System, Incorporated.................................. 4,300 120,938
St. John Knits, Incorporated................................ 13,300 578,550
Stage Stores Inc.*.......................................... 1,200 21,900
The Men's Wearhouse, Inc.*.................................. 1,500 36,750
The Sports Authority, Incorporated*......................... 3,800 82,650
Tiffany & Company........................................... 17,600 644,600
TJX Companies, Incorporated................................. 800 37,900
Toll Brothers, Incorporated*................................ 7,700 150,150
Tommy Hilfiger Corporation*................................. 500 24,000
Tower Automotive, Incorporated*............................. 10,400 325,000
Unitog Company.............................................. 6,800 185,300
West Marine Inc............................................. 1,500 42,375
Whirlpool Corporation....................................... 2,100 97,913
Xerox Corporation........................................... 1,900 99,988
-----------
5,110,650
-----------
Consumer, Non-Cyclical (4.0%)
Access Health, Incorporated*................................ 1,000 44,750
American Stores Company..................................... 4,900 200,283
Biochem Pharma, Incorporated*............................... 1,000 50,250
CompDent Corporation*....................................... 1,600 56,400
ConAgra, Incorporated....................................... 3,200 159,200
CONMED Corporation*......................................... 5,300 108,650
ESC Medical Systems Limited*................................ 2,000 51,000
Heartport, Incorporated*.................................... 1,500 34,313
Hologic, Incorporated*...................................... 3,600 89,100
Intercardia, Incorporated*.................................. 500 10,750
Kimberly-Clark Corporation.................................. 1,400 133,350
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE PORTION (CONTINUED):
Common Stocks (Continued)
Consumer, Non-Cyclical (Continued)
Lincare Holdings, Incorporated*............................. 1,300 $ 53,300
Mentor Corporation.......................................... 2,100 61,950
Novartis AG-ADR*............................................ 2,240 127,864
Pharmacia & Upjohn Incorporated*............................ 4,300 170,388
Philip Morris Companies, Incorporated....................... 1,700 191,463
PhyCor, Incorporated*....................................... 1,500 42,563
Physician Sales & Service, Incorporated*.................... 2,900 41,688
Serologicals Corporation*................................... 1,700 60,138
Sola International, Inc.*................................... 9,800 372,400
Steris Corporation*......................................... 2,000 87,000
Target Therapeutics, Incorporated*.......................... 1,300 54,600
-----------
2,201,400
-----------
Energy (1.7%)
Kerr-McGee Corporation...................................... 1,900 136,800
Mobil Corporation........................................... 1,000 122,250
Oceaneering International, Incorporated*.................... 11,600 184,150
Repsol SA................................................... 5,000 190,625
Royal Dutch Petroleum-New York Shares....................... 800 136,600
Union Pacific Resources Group, Inc.......................... 1,947 56,950
USX-Marathon Group.......................................... 5,600 133,700
-----------
961,075
-----------
Financial (3.8%)
Ahmanson (H.F.) & Company................................... 4,700 152,750
American International Group, Incorporated*................. 2,500 270,625
Aon Corporation............................................. 1,400 86,975
Citicorp.................................................... 4,100 422,300
Fleet Financial Group, Incorporated......................... 2,900 144,638
Keystone Financial, Incorporated*........................... 6,750 168,750
Loews Corporation........................................... 1,500 141,375
NationsBank Corporation..................................... 2,300 224,825
Providian Corporation....................................... 2,700 138,712
Summit Bancorp.............................................. 6,000 262,500
The Money Store, Incorporated............................... 4,000 110,500
-----------
2,123,950
-----------
Industrial (5.5%)
AGCO Corporation............................................ 5,300 151,713
Applied Materials, Incorporated*............................ 4,100 147,344
Burlington Northern Santa Fe................................ 1,400 120,925
Checkfree Corporation*...................................... 6,300 107,888
Coach USA, Incorporated*.................................... 6,400 185,600
Crown Cork & Seal Company, Incorporated..................... 2,600 141,375
Cymer, Incorporated*........................................ 2,000 96,250
Employee Solutions Inc*..................................... 3,000 61,500
Factset Research Systems, Incorporated*..................... 2,021 42,449
First Data Corporation...................................... 7,800 284,700
Foster Wheeler Corporation.................................. 3,600 133,650
Greenfield Industries, Incorporated......................... 3,800 116,375
Hardinge, Incorporated...................................... 6,300 167,736
Leasing Solutions Inc*...................................... 3,000 77,250
Masco Corporation........................................... 4,500 162,000
Metromail Corporation*...................................... 1,200 21,900
National Data Corporation................................... 700 30,450
Parker-Hannifin Corporation................................. 2,900 112,375
PMT Services, Incorporated*................................. 1,200 21,000
Quick Response Services, Incorporated*...................... 1,800 51,300
Quintiles Transnational Corporation*........................ 700 46,375
RailTex, Incorporated*...................................... 3,900 98,475
Rural/Metro Corporation*.................................... 1,300 46,800
Sealed Air Corporation*..................................... 1,200 49,950
Union Pacific Corporation................................... 2,300 138,288
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE PORTION (CONTINUED):
Common Stocks (Continued)
Industrial (Continued)
Uniphase Corp*.............................................. 1,000 $ 52,500
United Waste Systems, Incorporated*......................... 3,000 103,125
USA Waste Services, Incorporated*........................... 3,800 121,125
Waters Corporation*......................................... 1,000 30,375
Whittman--Hart Incorporated*................................ 2,800 71,750
Wyman-Gordon Company*....................................... 1,000 22,250
-----------
3,014,793
-----------
Technology (12.6%)
3Com Corporation*........................................... 11,900 873,156
Adaptec, Incorporated....................................... 1,800 72,000
Ascend Communications, Incorporated*........................ 1,400 86,975
Atmel Corporation*.......................................... 8,500 281,563
Auspex Systems, Incorporated*............................... 1,500 17,438
Bay Networks, Incorporated*................................. 8,700 181,613
Cascade Communications Corporation.......................... 1,000 55,125
CBT Group PLC*.............................................. 1,500 81,375
Cellpro, Incorporated*...................................... 3,100 38,750
Checkpoint Systems, Incorporated*........................... 2,000 49,500
Cisco Systems, Incorporated*................................ 12,200 776,225
Citrix Systems, Incorporated*............................... 1,400 54,688
Clintrials Research, Incorporated*.......................... 900 20,475
Compaq Computer Corporation*................................ 5,200 386,100
Compuware Corporation*...................................... 1,700 85,213
Curative Health Services Inc*............................... 2,200 60,913
DSP Communications Inc*..................................... 3,900 75,563
Electronics For Imaging*.................................... 1,200 98,700
Glenayre Technologies, Incorporated*........................ 1,800 38,813
Greenwich Air Services, Incorporated*....................... 2,100 46,725
Incyte Pharmaceuticals, Incorporated*....................... 1,500 77,250
Infinity Financial Technology*.............................. 1,500 25,875
Information Management Resources*........................... 1,700 35,913
Informix Corporation*....................................... 2,000 40,750
Inso Corporation*........................................... 400 15,900
Integrated Systems Inc*..................................... 2,000 52,000
Intel Corporation*.......................................... 5,200 680,875
International Business Machines Corp........................ 1,400 211,400
Learning Company, Incorporated*............................. 3,000 43,125
Linear Technology Corporation............................... 5,500 241,313
Logicon Inc................................................. 2,000 73,000
Maxim Integrated Products, Incorporated*.................... 5,300 229,225
Medic Computer Systems, Incorporated*....................... 2,500 100,781
Minnesota Mining and Manufacturing Company.................. 1,900 157,463
Motorola, Incorporated...................................... 2,800 171,850
Network Appliance, Incorporated*............................ 600 30,525
Parametric Technology*...................................... 2,600 133,575
Picturetel Corp.*........................................... 3,000 78,000
Raster Graphics, Incorporated*.............................. 6,100 72,438
Raytheon Company*........................................... 2,400 115,500
S3 Incorporated*............................................ 2,000 32,500
Structural Dynamics Research Corporation*................... 4,000 80,000
Sun Microsystems, Incorporated.............................. 15,800 405,863
Systemsoft Corporation*..................................... 2,000 29,750
Tellabs, Incorporated*...................................... 3,600 135,450
U.S. Robotics Corporation*.................................. 2,000 144,000
VideoServer, Incorporated*.................................. 2,400 102,000
Xilinx, Incorporated*....................................... 1,400 51,538
-----------
6,948,769
-----------
Utilities (1.0%)
British Telecommunications*................................. 900 61,763
Edison International........................................ 3,500 69,562
LCI International, Incorporated*............................ 1,800 38,700
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE PORTION (CONTINUED):
Common Stocks (Continued)
Utilities (Continued)
MCI Communications Corporation............................. 4,400 $ 143,825
Pacific Gas and Electric Company........................... 2,800 58,800
SBC Communications, Incorporated........................... 2,400 124,200
Tele Danmark A/S........................................... 1,900 51,775
-----------
548,625
-----------
Total Active Portion--Common Stocks (Cost: $19,747,093)
38.7%...................................................... 21,412,387
-----------
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ------- -----------
<S> <C> <C> <C> <C>
Short-Term Debt Securities
U.S. Treasuries/Agencies (0.1%)
U.S. Treasury Bills........................ 5.17% 2/13/97 $10,000 $ 9,938
Federal Farm Credit........................ 5.50 1/22/97 45,000 44,856
-----------
54,794
-----------
Total Active Portion Short-Term Debt Securities (Cost: $54,794)
0.1%............................................................. 54,794
-----------
Total Active Portion (Cost: $19,801,887) 38.8%.................... 21,467,181
-----------
Total Investments (Cost: $49,778,380) (100.0%).................... $55,298,150
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Treasuries/Agencies (74.4%)
U.S. Treasury Note....................... 8.00% 3/31/01 $3,500,000 $ 3,523,520
U.S. Treasury Note....................... 6.25 2/15/03 3,500,000 3,495,625
U.S. Treasury Note....................... 6.50 5/15/05 4,000,000 4,026,880
U.S. Treasury Note....................... 7.13 2/15/23 2,000,000 2,088,120
U.S. Treasury Note....................... 6.75 8/15/26 500,000 503,750
Federal Home Loan Mortgage Corp. ........ 8.00 7/15/06 476,505 488,713
Federal Home Loan Mortgage Corp. ........ 7.50 5/15/18 400,000 407,000
Federal National Mtge Corp. ............. 7.75 10/25/18 867,462 877,758
-----------
15,411,366
-----------
Industrial (2.3%)
Costco Wholesale Corp. .................. 5.75 5/15/02 500,000 485,000
-----------
Utilities (2.5%)
Oklahoma Gas & Electric Co. ............. 8.88 12/1/20 500,000 511,460
-----------
Total Long-Term Debt Securities (Cost: $16,153,331) (79.2%)........ 16,407,826
-----------
SHORT-TERM DEBT SECURITIES:
U.S. Treasuries/Agencies (17.1%)
U.S. Treasury Note....................... 5.50 9/30/97 3,500,000 3,499,440
Federal Farm Credit...................... 5.50 1/22/97 45,000 44,856
-----------
3,544,296
-----------
Commercial Paper (3.7%)
Ford Motor Credit Corp. ................. 5.38 1/2/97 210,000 209,969
General Electric Capital Corp. .......... 5.42 1/3/97 387,000 386,883
Interstate Power Corp. .................. 5.33 1/14/97 159,000 158,695
-----------
755,547
-----------
Total Short-Term Debt Securities (Cost: $4,292,016) (20.8%)........ 4,299,843
-----------
Total Investments (Cost: $20,445,347) 100.0%....................... $20,707,669
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- -----------
<S> <C> <C>
Assets:
Investments at market value
(Cost:
All America Fund $49,778,380;
Bond Fund $20,445,347).............................. $55,298,150 $20,707,669
Cash................................................... 310,618 927
Interest and dividends receivable...................... 78,779 307,936
Receivable for securities sold......................... 6,194 --
----------- -----------
Total Assets........................................... 55,693,741 21,016,532
Payable for securities purchased....................... 180,900 --
Accrued expenses....................................... 150 10
----------- -----------
Net Assets............................................. $55,512,691 $21,016,522
=========== ===========
Shares Outstanding..................................... 5,057,069 2,074,219
=========== ===========
Net Asset Value Per Share.............................. $10.98 $10.13
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF OPERATIONS
MAY 1, 1996 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1996
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- ----------
<S> <C> <C>
Investment Income: (Note 1)
Dividends.......................................... $ 609,125 $ --
Interest........................................... 10,303 858,702
---------- ----------
Total Investment Income.............................. 619,428 858,702
---------- ----------
Expenses: (Note 2)
Investment management fees......................... 171,293 60,994
Directors' (independent) fees and expenses......... 18,703 18,702
Custodian expenses................................. 32,400 3,600
Accounting expenses................................ 13,200 13,200
Professional fees.................................. 20,250 6,750
Registration fees.................................. 17,280 6,720
Other.............................................. 26,518 12,268
---------- ----------
Total Expenses before reimbursement.................. 299,644 122,234
Expense reimbursement................................ (8,453) (27,354)
---------- ----------
Net Expenses......................................... 291,191 94,880
---------- ----------
Net Investment Income................................ 328,237 763,822
---------- ----------
Net Realized and Unrealized Gain (Loss) on Invest-
ments (Note 1):
Net realized gain (loss) on investments:
Net proceeds from sale............................. 9,165,543 1,601,487
Cost of securities sold............................ 9,613,305 1,610,182
---------- ----------
Net realized gain (loss)............................. (447,762) (8,695)
Realized gain (loss) on short-term securities........ (192) (71)
---------- ----------
Net realized gain (loss) on investments.............. (447,954) (8,766)
Net unrealized appreciation on investments........... 5,519,770 262,322
---------- ----------
Net Realized and Unrealized Gain (Loss) on Invest-
ments............................................... 5,071,816 253,556
---------- ----------
Net Increase In Net Assets Resulting From Operations. $5,400,053 $1,017,378
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MAY 1, 1996 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1996
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- -----------
<S> <C> <C>
From Operations:
Net investment income.............................. $ 328,237 $ 763,822
Net realized gain (loss) on investments............ (447,954) (8,766)
Net unrealized appreciation on investments......... 5,519,770 262,322
----------- -----------
Net Increase in Net Assets Resulting From Operations. 5,400,053 1,017,378
----------- -----------
Dividend Distributions:
From net investment income......................... (325,235) (758,821)
----------- -----------
Capital Share Transactions (Note 4):
Net proceeds from sale of shares................... 50,137,638 20,123,533
Dividend reinvestments............................. 325,235 758,821
Cost of shares redeemed............................ (25,000) (124,389)
----------- -----------
Net Increase in Net Assets From Capital Share Trans-
actions............................................. 50,437,873 20,757,965
----------- -----------
Net Increase in Net Assets........................... $55,512,691 $21,016,522
Net Assets, Beginning of Period...................... -- --
----------- -----------
Net Assets, End of Period............................ $55,512,691 $21,016,522
=========== ===========
Components of Net Assets:
Paid-in capital.................................... $50,437,873 $20,757,965
Accumulated undistributed net realized gain (loss)
on investments.................................... (447,954) (8,766)
Accumulated undistributed net investment income.... 3,002 5,001
Unrealized appreciation (depreciation) on invest-
ments............................................. 5,519,770 262,322
----------- -----------
Net Assets, End of Period............................ $55,512,691 $21,016,522
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 1, 1996 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1996
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- ------
<S> <C> <C>
Net Asset Value, Beginning of Period....................... $10.00 $10.01
------ ------
Income from investment operations:
Net investment income.................................... .06 .38
Net gains or losses on securities (realized and
unrealized)............................................. .98 .12
------ ------
Total from Investment Operations........................... 1.04 .50
------ ------
Less dividend distributions:
From net investment income............................... (.06) (.38)
From capital gains....................................... -- --
------ ------
Total Distributions........................................ (.06) (.38)
------ ------
Net Asset Value, End of Period............................. $10.98 $10.13
====== ======
Total return (%) (a) (b)................................... 10.4 5.0
Net assets, end of period ($ millions)..................... 55.5 21.0
Ratio of net investment income to average net assets (%)... .95 5.63
Ratio of expenses to average net assets (%)................ .87 .90
Ratio of expenses to average net assets after expense
reimbursement (%) (Note 2)................................ .85 .70
Portfolio turnover rate (%) (c)............................ 9.33 17.85
Average commission rate paid ($) (d)....................... .0483 N/A
</TABLE>
- -------
(a) Not annualized.
(b) Total return would have been lower had certain expenses not been reduced
through expense reimbursement (Note 2)
(c) Portfolio turnover rate excludes all U.S. Government and short-term
securities.
(d) Average commission rate paid per share of common and preferred stock.
N/A = Not Applicable.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT POLICIES AND ORGANIZATION
Mutual of America Institutional Funds, Inc. (the "Investment Company") was
incorporated on October 27, 1994 under the laws of Maryland and is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company (a mutual fund) currently issuing two series of common
stock representing shares of the All America Fund and the Bond Fund. Each fund
has its own investment objective and policies. Shares of the funds of the
Investment Company are offered on a no-load basis through its distributor,
Mutual of America Securities Corporation, a registered broker-dealer and
affiliate of the Investment Company's investment management adviser, Mutual of
America Capital Management Corporation.
The Investment Company is designed primarily as an investment vehicle for
endowments, foundations, corporations, municipalities and other public
entities and other institutional investors.
The Investment Company commenced operations on May 1, 1996, (the effective
date of its registration) although the Bond Fund was initially seeded with a
$100,000 cash investment on April 23, 1996 by its sponsor, Mutual of America
Capital Management Corporation (a registered investment adviser).
These financial statements present the net assets of the Investment Company
at December 31, 1996 and the results of its operations and changes in net
assets for the period May 1, 1996 to December 31, 1996.
Security Valuation--Investment securities are valued as follows:
Equity securities are valued at the last sales price on the principal
exchange on which the security is traded. If there is no trading volume for
a particular valuation day, the last bid price on the principal exchange is
used. For any equity securities traded in the over-the-counter market
(OTC), the security is valued at the last sale price, or if no sale, at the
latest bid price available.
Short-term securities with a maturity of 60 days or less are valued at
amortized cost, which approximates market for such securities. Short-term
debt securities maturing in excess of 60 days are stated at market value.
Debt securities are valued at a composite fair market value "evaluated
bid," which may be the last sale price. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith by the Investment Adviser under the direction of
the Board of Directors of the Investment Company.
Security Transactions--Security transactions are recorded on the trade date.
Interest income is accrued as earned. Dividend income is recorded on the ex-
dividend date. Dividend income from foreign corporations is reflected net of
imposed source tax withholding.
Realized gain and loss on the sale of short and long-term debt securities is
computed on the basis of amortized cost at the time of sale. Realized gain and
loss on the sale of common stock is based on the identified cost basis of the
security determined on a first-in, first-out ("FIFO") basis.
Federal Income Taxes--The Investment Company intends to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to
shareholders. Therefore, no federal income tax provision is required.
2. EXPENSES AND OTHER TRANSACTIONS WITH AFFILIATES
Organizational expenses of the Investment Company were borne by its sponsor,
Mutual of America Capital Management Corporation, the investment management
adviser of the Company.
The Investment Company has entered into an Investment Advisory Agreement
with Mutual of America Capital Management Corporation ("the Adviser"). For
providing investment management services to the Investment Company each fund
accrues a fee, calculated as a daily charge at the annual rate of .50% of the
value of the net assets for the All America Fund and .45% of the value of the
net assets of the Bond Fund.
20
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
Under Sub-Advisory Agreements for the All America Fund, the Adviser has
delegated investment advisory responsibilities to subadvisors responsible for
providing management services for a portion of the fund's assets. The Adviser
is responsible for compensation payable under such Sub-Advisory Agreements.
The Adviser voluntarily limits the expenses of each Fund, other than
brokers' commissions, transfer taxes and other fees relating to portfolio
transactions, investment management expenses and extraordinary expenses to an
annual rate of .35% of the value of the net assets of the All America Fund and
.25% of the net assets of the Bond Fund. Accrual of these other operating
expenses at their respective specified annual rates is calculated as a daily
charge. Settlement of fees accrued (both investment management and other
operating expenses) is paid by each fund to the Adviser on or about month-end.
The Adviser's voluntary agreement to limit each fund's total expenses
(excluding brokerage commissions, transfer taxes/fees and extraordinary
expenses) to an annual rate of .85% of the net assets of the All America Fund
and .70% of the net assets of the Bond Fund may be discontinued at any time.
The All America Fund placed a portion of its portfolio transactions with an
affiliated broker-dealer of the Adviser. Total commissions paid to this
affiliate was $3,462 for the period or 6% of total commissions. In addition, a
Sub-Advisor of the Fund placed a portion of its portfolio transactions with
its affiliated broker-dealer. Such commissions amounted to $5,090 or 8% of the
Fund's total commissions.
3. PURCHASES AND SALES
The cost of investment purchases and proceeds from sales of investments,
excluding short-term investments and U.S. Government securities for the period
ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
------------ ------------
<S> <C> <C>
Cost of investment purchases................... $ 59,277,684 $ 969,875
============ ============
Proceeds from sales of investments............. $ 9,163,543 $ 96,528
============ ============
The cost of investment purchases and proceeds
from sales of U.S. Government securities were
as follows:
Cost of investment purchases.................. $ -- $ 20,267,291
============ ============
Proceeds from sales of investments............ $ -- $ 1,504,939
============ ============
</TABLE>
At December 31, 1996, the net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- -----------
<S> <C> <C>
Unrealized appreciation........................... $ 7,292,780 $ 279,172
Unrealized depreciation........................... 1,773,010 16,850
----------- -----------
Net unrealized appreciation (depreciation)........ $ 5,519,770 $ 262,322
=========== ===========
Aggregate cost of investments for Federal income
tax purposes..................................... $49,778,380 $20,445,347
=========== ===========
</TABLE>
4. CAPITAL SHARE ACTIVITY
At December 31, 1996 one billion shares of $.01 par value common stock have
been authorized for the Investment Company. The Board of Directors has
allocated 25 million shares and 15 million shares, respectively, to the All
America Fund and Bond Fund.
21
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
Transactions in shares during the period ending December 31, 1996 were as
follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- ---------
<S> <C> <C>
Shares sold........................................ 5,029,363 2,011,622
Shares issued as reinvestment of dividends (Note
5)................................................ 30,167 75,089
Shares redeemed.................................... (2,461) (12,492)
--------- ---------
Net increase (decrease)............................ 5,057,069 2,074,219
========= =========
</TABLE>
As at December 31, 1996 virtually all of the Investment Company's
outstanding shares were owned by Mutual of America Life Insurance Company, the
ultimate parent of the Adviser.
5. DIVIDENDS
On June 28, 1996 and December 31, 1996 dividend distributions were declared
and paid from accumulated net investment income to shareholders of record on
June 27, 1996 and December 30, 1996, respectively. Pursuant to shareholders'
instructions, all dividend distributions were immediately reinvested in
additional shares of each respective fund (see Note 4 above) as follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- --------
<S> <C> <C>
Distributions from:
Net investment income.............................. $325,235 $758,821
Net realized capital gains......................... -- --
-------- --------
Total dividend distributions......................... $325,235 $758,821
======== ========
Dividend amounts per share........................... $ .064 $ .377
======== ========
</TABLE>
22
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders
of Mutual of America Institutional Funds, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments in securities, of Mutual of America
Institutional Funds, Inc. (a Maryland Corporation) comprising the All America
and the Bond Funds as of December 31, 1996, and the related statement of
operations, statement of changes in net assets, and the financial highlights
for the period May 1, 1996 (commencement of operations) to December 31, 1996.
These financial statements and financial highlights are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmations of securities
owned as of December 31, 1996 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the All America and the Bond Funds of Mutual of America Institutional Funds,
Inc. as of December 31, 1996, and the results of its operations, changes in
its net assets and the financial highlights for the period May 1, 1996
(commencement of operations) to December 31, 1996, in conformity with
generally accepted accounting principles.
[SIGNATURE OF ARTHUR ANDERSEN LLP APPEARS HERE]
New York, New York
February 21, 1997
23
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
Distributed by Mutual of America Securities Corporation
320 Park Avenue New York, NY 10022-6839 800 914-8716
