<PAGE>
Mutual of America
Institutional Funds, Inc.
SEMI-ANNUAL REPORT
ALL AMERICA FUND
BOND FUND
MONEY MARKET FUND
JUNE 30, 1998
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.
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CONTENTS
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PAGE
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President's Message....................................................... 1
Performance Graphs........................................................ 2
Portfolio of Investments in Securities:
All America Fund........................................................ 4
Bond Fund............................................................... 12
Money Market Fund....................................................... 14
Statement of Assets and Liabilities....................................... 15
Statement of Operations................................................... 16
Statements of Changes in Net Assets....................................... 17
Financial Highlights...................................................... 18
Notes to Financial Statements............................................. 19
</TABLE>
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
We are pleased to provide Mutual of America Institutional Funds' semi-annual
report to shareholders. The All America Fund and the Bond Fund commenced
operations on May 1, 1996 and the Money Market Fund commenced on May 1, 1997.
These funds are designed principally as investment vehicles for endowments,
foundations and other institutional investors. The investment philosophy of
the 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 U.S. economy grew at a slower pace during the first half of 1998
compared to the rapid growth of 1997. The Asian financial crisis and the
General Motors strike have already impacted the second half of the year.
The equity market has already given back part of the tremendous gains of
this year. It will continue to experience higher levels of volatility as
investors vacillate between concerns over earnings and their seemingly
unfailing desire to be in the market. Inflation should remain moderate as
commodity prices remain low and competitively priced imports limit the pricing
power of producers.
The bond market should continue to benefit from the reduced pace of the U.S.
economy and the flight to quality pushed by the Asian financial difficulties.
Overall, the bond market should remain strong.
The total return performance of each fund for the six months ended June 30,
1998 was as follows:
<TABLE>
<S> <C>
All America Fund.................................................. +14.2%
Bond Fund......................................................... + 3.9%
Money Market Fund................................................. + 2.7%
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results. Investment return and
principal value will fluctuate, so shares, when redeemed, may be worth more or
less than when purchased.
On the pages which immediately follow are brief presentations and graphs for
the All America Fund and Bond Fund which illustrate each fund's respective:
. Historical total return achieved over specified periods, expressed as an
average annual rate and as a cumulative rate;
. Equivalent in dollars of a $10,000 hypothetical investment at the
beginning of each specified period; and
. Historical performance compared with appropriate indexes.
The portfolios of each fund and financial statements are presented in the
pages which then follow.
We look forward to participating productively in the equity, fixed income
and money markets throughout the second half of 1998.
Sincerely,
/s/ Dolores J. Morrissey
Dolores J. Morrissey
Chairman of the Board and President,
Mutual of America Institutional Funds, Inc.
1
<PAGE>
ALL AMERICA FUND
The All America Fund's investment objective is to outperform the Standard &
Poor's 500 (the "S&P 500") 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 S&P
500. Four actively managed segments, managed by three subadvisors and Mutual
of America Capital Management Corporation, each consisting of approximately
10% of the portfolio's total assets, comprised 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.
For the 12 months ended June 30, 1998, the Fund's total return of 23.3% was
below that of the S&P 500, which returned 30.2%. The performance of the All
America Fund in relation to the index was hindered by the overall laggard
performance experienced by smaller capitalized companies which comprised
approximately half of the actively managed assets of this fund.
[GRAPH APPEARS HERE]
GROWTH OF A $10,000 INVESTMENT
All America Fund S & P 500 Index
5/96 $10,000 $10,000
6/96 $10,103 $10,301
6/97 $12,883 $13,875
6/98 $15,882 $18,060
<TABLE>
<CAPTION>
============================================== ==============================================
ALL AMERICA FUND S & P 500 INDEX
---------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Period Growth Total Return Period Growth Total Return
Ended of Cumu- Average Ended of Cumu- Average
6/30/98 $10,000 lative Annual 6/30/98 $10,000 lative Annual
- ---------------------------------------------- ----------------------------------------------
1 Year $12,328 23.3% 23.3% 1 Year $13,016 30.2% 30.2%
Since 5/1/96 Since 5/1/96
(Inception) $15,882 58.8% 23.8% (Inception) $18,060 80.6% 31.4%
============================================== ==============================================
</TABLE>
The line representing the performance return of the All America Fund
includes expenses (such as transaction costs, management fees and net
operating expense) that reduce returns, while the performance return line of
the index does not.
2
<PAGE>
MONEY MARKET FUND
The Money Market Fund's total return for the 12-month period ended June 30,
1998 was 5.4%, versus the Salomon Brothers three-month Treasury Bill Index
which returned 5.2% for the same period. The seven-day annualized effective
yield as of 8/18/98 is 5.33%. As with all past performance reportings, this
yield is not necessarily indicative of future actual yields.
BOND FUND
The Bond Fund seeks a high level of return consistent with preservation of
capital through investment in publicly traded investment grade debt
securities. The performance of the Bond Fund for the 12 months ended June 30,
1998 was 10.6%, versus the Lehman Brothers Government/Corporate Index, which
returned 11.3% for the same period.
[GRAPH APPEARS HERE]
GROWTH OF A $10,000 INVESTMENT
Lehman Brothers
Bond Fund Gov't./Corp Bond Index
--------- ----------------------
5/96 $10,000 $10,000
6/96 $10,074 $10,116
6/97 $10,748 $10,900
6/98 $11,884 $12,129
<TABLE>
<CAPTION>
============================================== ==============================================
BOND FUND LEHMAN BROS. GOV'T./CORP. BOND INDEX
--------- ------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Period Growth Total Return Period Growth Total Return
Ended of Cumu- Average Ended of Cumu- Average
6/30/98 $10,000 lative Annual 6/30/98 $10,000 lative Annual
- ---------------------------------------------- ----------------------------------------------
1 Year $11,056 10.6% 10.6% 1 Year $11,128 11.3% 11.3%
Since 5/1/96 Since 5/1/96
(Inception) $11,884 18.8% 8.3% (Inception) $12,129 21.3% 9.3%
============================================== ==============================================
</TABLE>
The line representing the performance return of the Bond Fund includes
expenses (such as transaction costs, management fees and net operating
expense) that reduce returns, while the performance return line of the index
does not.
3
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
JUNE 30, 1998 (UNAUDITED)
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<CAPTION>
SHARES VALUE
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INDEXED ASSETS:
Common Stocks
3Com Corp. ................................................... 1,586 $ 48,670
Abbott Laboratories........................................... 6,893 281,751
Adobe Systems, Inc. .......................................... 307 13,028
Advanced Micro Devices, Inc. ................................. 631 10,766
Aeroquip-Vickers, Inc. ....................................... 126 7,355
Aetna, Inc. .................................................. 650 49,481
Ahmanson (H.F.) & Co. ........................................ 490 34,790
Air Products & Chemicals, Inc. ............................... 1,054 42,160
AirTouch Communications, Inc. ................................ 2,556 149,366
Alberto-Culver Co. Cl B....................................... 251 7,279
Albertson's, Inc. ............................................ 1,101 57,045
Alcan Aluminum Ltd............................................ 1,017 28,094
Allegheny Teledyne Inc........................................ 876 20,038
Allergan, Inc. ............................................... 291 13,495
AlliedSignal, Inc. ........................................... 2,536 112,535
Allstate Corp. ............................................... 1,875 171,679
Alltel Corp. ................................................. 837 38,920
Aluminum Co. of America....................................... 752 49,585
Alza Corp. ................................................... 381 16,478
Amerada Hess Corp. ........................................... 411 22,322
Ameren Corporation............................................ 658 26,155
American Electric Power, Inc. ................................ 848 38,478
American Express Co. ......................................... 2,059 234,726
American General Corp. ....................................... 1,135 80,797
American Greetings Corp. Cl A................................. 337 17,165
American Home Products Corp. ................................. 5,862 303,358
American Int'l. Group, Inc. .................................. 3,124 456,104
American Stores Co. .......................................... 1,220 29,508
Ameritech Corp. .............................................. 4,906 220,156
Amgen, Inc. .................................................. 1,135 74,200
Amoco Corp. .................................................. 4,285 178,363
Amp, Inc. .................................................... 984 33,825
AMR Corp. .................................................... 824 68,598
Anadarko Petroleum Corp. ..................................... 267 17,939
Andrew Corp. ................................................. 404 7,297
Anheuser-Busch Cos., Inc. .................................... 2,170 102,396
Aon Corp. .................................................... 749 52,617
Apache Corp. ................................................. 405 12,757
Apple Computer, Inc. ......................................... 596 17,097
Applied Materials, Inc. ...................................... 1,634 48,203
Archer-Daniels-Midland Co. ................................... 2,557 49,541
Armco, Inc. .................................................. 480 3,060
Armstrong World Inds., Inc. .................................. 183 12,329
Asarco, Inc. ................................................. 189 4,205
Ascend Communications, Inc. .................................. 861 42,673
Ashland Inc. ................................................. 335 17,294
Associates First Capital Corp. ............................... 1,553 119,386
AT&T Corp. ................................................... 7,253 414,327
Atlantic Richfield Co. ....................................... 1,437 112,265
Autodesk, Inc. ............................................... 215 8,304
Automatic Data Processing, Inc................................ 1,337 97,433
AutoZone, Inc. ............................................... 677 21,621
Avery Dennison Corp. ......................................... 524 28,165
Avon Products, Inc. .......................................... 593 45,957
Baker Hughes Inc. ............................................ 756 26,129
Ball Corp. ................................................... 135 5,425
Baltimore Gas & Electric Co. ................................. 662 20,563
Banc One Corp. ............................................... 3,134 174,916
Bank of New York Co., Inc. ................................... 1,689 102,501
BankAmerica Corp. ............................................ 3,049 263,547
BankBoston Corp. ............................................. 1,306 72,646
Bankers Trust New York Corp. ................................. 449 52,112
Bard (C.R.), Inc. ............................................ 257 9,782
Barrick Gold Corp. ........................................... 1,670 32,043
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
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INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
Battle Mountain Gold Co. ..................................... 1,029 $ 6,109
Bausch & Lomb, Inc. .......................................... 248 12,431
Baxter International Inc. .................................... 1,252 67,373
Bay Networks, Inc. ........................................... 983 31,701
BB & T Corp. ................................................. 638 43,144
Becton Dickinson & Co. ....................................... 547 42,460
Bell Atlantic Corp. .......................................... 6,932 316,272
BellSouth Corp. .............................................. 4,421 296,759
Bemis Co. .................................................... 238 9,728
Beneficial Corp. ............................................. 238 36,458
Bestfoods..................................................... 1,286 74,668
Bethlehem Steel Corp. ........................................ 505 6,280
Biomet, Inc. ................................................. 499 16,498
Black & Decker Corp. ......................................... 423 25,803
Block (H. & R.), Inc. ........................................ 466 19,630
Boeing Co. ................................................... 4,512 201,066
Boise Cascade Corp. .......................................... 249 8,154
Boston Scientific Corp. ...................................... 870 62,313
Briggs & Stratton Corp. ...................................... 114 4,267
Bristol-Myers Squibb Co. ..................................... 4,445 510,897
Brown-Forman Corp. Cl B....................................... 309 19,853
Browning-Ferris Inds., Inc. .................................. 822 28,564
Brunswick Corp. .............................................. 445 11,013
Burlington Northern Santa Fe.................................. 697 68,436
Burlington Resources, Inc. ................................... 789 33,976
Cabletron Systems, Inc. ...................................... 707 9,500
Campbell Soup Co. ............................................ 2,028 107,737
Cardinal Health, Inc. ........................................ 486 45,562
Carolina Power & Light Co. ................................... 678 29,408
Case Corp. ................................................... 334 16,115
Caterpillar, Inc. ............................................ 1,637 86,556
CBS Corp. .................................................... 3,182 101,028
Cendant Corporation........................................... 3,801 79,345
Centex Corp. ................................................. 260 9,815
Central & South West Corp. ................................... 951 25,558
Ceridian Corp. ............................................... 324 19,035
Champion International Corp. ................................. 430 21,150
Charles Schwab Corp. ......................................... 1,186 38,545
Chase Manhattan Corp. ........................................ 3,811 287,730
Chevron Corp. ................................................ 2,921 242,625
Chrysler Corp. ............................................... 2,883 162,529
Chubb Corp. .................................................. 763 61,326
CIGNA Corp. .................................................. 962 66,378
Cincinnati Financial Corp..................................... 738 28,320
Cincinnati Milacron, Inc. .................................... 179 4,351
Cinergy Corp. ................................................ 707 24,745
Circuit City Group, Inc. ..................................... 441 20,671
Cisco Systems, Inc. .......................................... 4,553 419,160
Citicorp...................................................... 2,016 300,888
Clear Channel Communications.................................. 554 60,455
Clorox Co. ................................................... 463 44,158
Coastal Corp. (The)........................................... 475 33,160
Coca-Cola Co. ................................................ 11,027 942,808
Colgate-Palmolive Co. ........................................ 1,326 116,688
Columbia Energy Group......................................... 372 20,692
Columbia/HCA Healthcare Corp. ................................ 2,903 84,549
Comcast Corp. Cl A............................................ 1,647 66,857
Comerica, Inc. ............................................... 709 46,971
Compaq Computer Corp. ........................................ 7,403 210,047
Computer Associates Intl., Inc................................ 2,446 135,905
Computer Sciences Corp. ...................................... 692 44,288
Conagra, Inc. ................................................ 2,120 67,177
Conseco, Inc. ................................................ 842 39,363
Consolidated Edison, Inc. .................................... 1,053 48,503
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
Consolidated Natural Gas Co. ................................. 427 $ 25,139
Consolidated Stores Corp. .................................... 500 18,125
Cooper Industries............................................. 547 30,050
Cooper Tire & Rubber Co. ..................................... 353 7,280
Coors (Adolph) Co. Cl B....................................... 166 5,644
Corning Inc. ................................................. 1,034 35,931
Costco Co..................................................... 952 60,035
Countrywide Credit Industries................................. 480 24,360
Crane Co. .................................................... 206 10,003
Crown Cork & Seal Co., Inc. .................................. 575 27,312
CSX Corp. .................................................... 976 44,408
Cummins Engine, Inc. ......................................... 171 8,763
CVS Corp. .................................................... 1,710 66,583
Cyprus Amax Minerals Co. ..................................... 419 5,551
Dana Corp. ................................................... 468 25,038
Darden Restaurants, Inc. ..................................... 686 10,890
Data General Corp. ........................................... 214 3,196
Dayton-Hudson Corp. .......................................... 1,950 94,575
Deere & Co. (Del.)............................................ 1,130 59,748
Dell Computer Corp. .......................................... 2,876 266,928
Delta Air Lines, Inc. ........................................ 329 42,523
Deluxe Corp. ................................................. 369 13,214
Dillard's Inc. Cl A.......................................... 501 20,760
Disney (Walt) Company (The)................................... 3,044 319,810
Dominion Resources, Inc. ..................................... 865 35,248
Donnelley (R.R.) & Sons Co. .................................. 656 30,012
Dover Corp. .................................................. 996 34,113
Dow Chemical Company.......................................... 1,005 97,170
Dow Jones & Co., Inc. ........................................ 430 23,972
Dresser Industries, Inc. ..................................... 785 34,589
DSC Communications Corp. ..................................... 526 15,780
DTE Energy Co. ............................................... 650 26,243
Dun & Bradstreet Corp. ....................................... 764 27,504
Du Pont (E.I.) De Nemours..................................... 5,040 376,110
Duke Energy Corp. ............................................ 1,613 95,570
Eastern Enterprises........................................... 91 3,901
Eastman Chemical Co. ......................................... 351 21,849
Eastman Kodak Co. ............................................ 1,441 105,283
Eaton Corp. .................................................. 322 25,035
Echlin, Inc. ................................................. 283 13,884
Ecolab Inc. .................................................. 580 17,980
Edison International.......................................... 1,618 47,832
EG&G, Inc. ................................................... 205 6,150
EMC Corp. .................................................... 2,212 99,125
Emerson Electric Co. ......................................... 1,987 119,965
Engelhard Corp. .............................................. 647 13,101
Enron Corp. .................................................. 1,472 79,580
Entergy Corp. ................................................ 1,081 31,078
Equifax Inc. ................................................. 676 24,547
Exxon Corp. .................................................. 10,927 779,231
FDX Corp. .................................................... 654 41,038
Federated Department Stores................................... 937 50,422
FHLMC......................................................... 3,030 142,599
Fifth Third Bancorp........................................... 1,036 65,268
First Chicago NBD Corp. ...................................... 1,282 113,617
First Data Corp. ............................................. 1,994 66,425
First Union Corp. ............................................ 4,329 252,164
FirstEnergy Corp.............................................. 984 30,258
Fleet Financial Group, Inc. .................................. 1,269 105,961
Fleetwood Enterprises, Inc. .................................. 161 6,440
Fluor Corp. .................................................. 376 19,176
FMC Corp. .................................................... 167 11,387
FNMA.......................................................... 4,630 281,272
Ford Motor Co. (U.S.A.)...................................... 5,417 319,603
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
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<S> <C> <C>
INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
Fort James Corp of Virginia................................. 984 $ 43,788
Fortune Brands, Inc. ....................................... 768 29,520
Foster Wheeler Corp. ....................................... 182 3,901
FPL Group, Inc. ............................................ 816 51,408
Franklin Resources, Inc. ................................... 1,133 61,182
Freeport-McMoran Copper Cl B................................ 891 13,532
Frontier Corp. ............................................. 736 23,184
Fruit of the Loom, Inc. .................................... 328 10,885
Gannett Co., Inc. .......................................... 1,270 90,249
Gap, Inc. (The)............................................. 1,756 108,213
Gateway 2000, Inc. ......................................... 694 35,133
General Dynamics Corp. ..................................... 560 26,040
General Electric Co. ....................................... 14,549 1,323,959
General Instrument Corp. ................................... 660 17,943
General Mills, Inc. ........................................ 717 49,024
General Motors Corp. ....................................... 2,985 199,435
General Re Corp. ........................................... 342 86,697
General Signal Corp. ....................................... 196 7,056
Genuine Parts Co. .......................................... 807 27,891
Georgia-Pacific (Timber Group).............................. 410 24,164
Giant Food, Inc. ........................................... 269 11,583
Gillette Co. ............................................... 5,016 284,344
Golden West Financial Corp. ................................ 254 27,003
Goodrich (B.F.) Co. ........................................ 342 16,971
Goodyear Tire & Rubber Co. ................................. 699 45,041
GPU, Inc. .................................................. 569 21,515
Grainger (W.W.), Inc. ...................................... 446 22,216
Great Atl. & Pac. Tea Co. .................................. 171 5,653
Great Lakes Chemical Corp. ................................. 268 10,569
Green Tree Financial Corp. ................................. 609 26,072
GTE Corp. .................................................. 4,285 238,353
Guidant Corp. .............................................. 664 47,351
Halliburton Co. ............................................ 1,174 52,316
Harcourt General, Inc. ..................................... 317 18,861
Harnischfeger Industries, Inc. ............................. 221 6,257
Harrah's Entertainment, Inc. ............................... 452 10,509
Harris Corp. ............................................... 356 15,908
Hartford Financial Svcs. Gp., Inc. ......................... 529 60,504
Hasbro, Inc. ............................................... 597 23,469
HBO & Co. .................................................. 1,919 67,644
HealthSouth Corp. .......................................... 1,765 47,103
Heinz (H.J.) Co. ........................................... 1,655 92,886
Helmerich & Payne, Inc. .................................... 224 4,984
Hercules, Inc. ............................................. 433 17,807
Hershey Foods Corp. ........................................ 640 44,160
Hewlett-Packard Co. ........................................ 4,626 276,981
Hilton Hotels Corp. ........................................ 1,120 31,920
Home Depot, Inc. ........................................... 3,271 271,697
Homestake Mining Co. ....................................... 946 9,814
Honeywell, Inc. ............................................ 571 47,714
Household International, Inc. .............................. 1,437 71,490
Houston Industries, Inc. ................................... 1,320 40,755
Humana, Inc. ............................................... 734 22,891
Huntington Bancshares, Inc. ................................ 813 27,235
Ikon Office Solutions....................................... 595 8,664
Illinois Tool Works, Inc. .................................. 1,118 74,556
Inco Ltd.................................................... 748 10,191
Ingersoll Rand Co. ......................................... 743 32,738
Inland Steel, Inc. ......................................... 219 6,173
Intel Corp. ................................................ 7,574 561,422
International Paper Co. .................................... 1,355 58,265
Interpublic Group of Cos., Inc.............................. 609 36,958
Intl. Business Machines Corp. .............................. 4,211 483,475
Intl. Flavors & Fragrances.................................. 490 21,284
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
ITT Industries, Inc. ....................................... 531 $ 19,846
Jefferson-Pilot Corp. ...................................... 475 27,520
Johnson & Johnson........................................... 6,005 442,868
Johnson Controls, Inc. ..................................... 375 21,445
Jostens, Inc. .............................................. 176 4,202
Kaufman & Broad Home Corp. ................................. 174 5,524
Kellogg Co. ................................................ 1,849 69,453
Kerr-McGee Corp. ........................................... 214 12,385
KeyCorp..................................................... 1,946 69,326
Kimberly Clark Corp. ....................................... 2,487 114,091
King World Productions, Inc. ............................... 330 8,415
KLA Tencor Corporation...................................... 375 10,382
Kmart Corp. ................................................ 2,182 42,003
Knight-Ridder, Inc. ........................................ 379 20,868
Kroger Corp. ............................................... 1,140 48,877
Laidlaw, Inc. .............................................. 1,473 17,952
Lehman Brothers Holdings, Inc. ............................. 529 41,030
Lilly (Eli) & Co. .......................................... 4,945 326,679
Limited (The), Inc. ........................................ 1,010 33,456
Lincoln National Corp. ..................................... 457 41,758
Liz Claiborne, Inc. ........................................ 300 15,675
Lockheed Martin Corp. ...................................... 869 92,005
Loews Corp. ................................................ 515 44,869
Longs Drug Stores, Inc. .................................... 176 5,082
Louisiana-Pacific Corp. .................................... 490 8,942
Lowe's Companies, Inc. ..................................... 1,558 63,196
LSI Logic Corp. ............................................ 636 14,667
Lucent Technologies, Inc. .................................. 5,859 487,395
Mallinckrodt, Inc. ......................................... 329 9,767
Manor Care, Inc. ........................................... 285 10,954
Marriott International, Inc. ............................... 1,170 37,878
Marsh & McLennan Cos., Inc. ................................ 1,133 68,445
Masco Corp. ................................................ 759 45,919
Mattel, Inc. ............................................... 1,302 55,090
May Department Stores Co. .................................. 1,042 68,251
Maytag Corp. ............................................... 426 21,033
MBIA Inc. .................................................. 438 32,795
MBNA Corp. ................................................. 2,245 74,085
McDermott International, Inc. .............................. 271 9,332
McDonald's Corp. ........................................... 3,070 211,830
McGraw-Hill Cos., Inc. ..................................... 443 36,132
MCI Communications Corp. ................................... 3,235 188,034
Mead Corp. ................................................. 468 14,859
MediaOne Group, Inc. ....................................... 2,717 119,378
Medtronic, Inc. ............................................ 2,095 133,556
Mellon Bank Corp. .......................................... 1,162 80,904
Mercantile Bancorporation................................... 583 29,368
Mercantile Stores, Inc. .................................... 165 13,024
Merck & Co., Inc. .......................................... 5,338 713,957
Meredith Corp. ............................................. 240 11,265
Merrill Lynch & Co., Inc. .................................. 1,545 142,526
MGIC Investment Corp........................................ 511 29,158
Micron Technology, Inc. .................................... 944 23,423
Microsoft Corp. ............................................ 11,004 1,192,558
Millipore Corp. ............................................ 195 5,313
Minnesota Mining & Mfg. Co. ................................ 1,807 148,512
Mirage Resorts, Inc. ....................................... 801 17,071
Mobil Corp. ................................................ 3,489 267,344
Monsanto Co. ............................................... 2,658 148,515
Moore Corp., Ltd............................................ 398 5,273
Morgan (J.P.) & Co., Inc. .................................. 802 93,934
Morgan Stanley Dean Witter.................................. 2,679 244,793
Morton International, Inc. ................................. 628 15,700
Motorola, Inc. ............................................. 2,668 140,236
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
NACCO Industries, Inc. Cl A................................... 37 $ 4,782
Nalco Chemical Co. ........................................... 299 10,502
National City Corp. .......................................... 1,466 104,086
National Semiconductor Corp. ................................. 751 9,903
National Service Industries................................... 202 10,276
NationsBank Corp. ............................................ 4,278 327,267
Navistar International Corp. ................................. 327 9,442
New York Times Co. Cl A....................................... 430 34,077
Newell Co. ................................................... 713 35,516
Newmont Mining Corp. ......................................... 700 16,537
Nextel Communications, Inc. .................................. 1,220 30,347
Niagara Mohawk Power Corp. ................................... 647 9,664
Nicor, Inc. .................................................. 218 8,747
Nielsen Media Research........................................ 736 46,368
Nike, Inc. Cl B............................................... 1,294 63,001
Nordstrom, Inc. .............................................. 346 26,728
Norfolk Southern Corp. ....................................... 1,689 50,353
Northern States Power Co. .................................... 622 17,804
Northern Telecom, Ltd......................................... 2,329 132,170
Northern Tr Corp.............................................. 500 38,125
Northrop Grumman Corp. ....................................... 299 30,834
Norwest Corp. ................................................ 3,386 126,551
Novell, Inc. ................................................. 1,564 19,941
Nucor Corp. .................................................. 394 18,124
Occidental Petroleum Corp. ................................... 1,640 44,280
Omnicom Group, Inc. .......................................... 760 37,905
Oneok, Inc. .................................................. 139 5,542
Oracle Corp. ................................................. 4,347 106,773
Oryx Energy Co. .............................................. 472 10,443
Owens Corning................................................. 239 9,754
Owens Illinois................................................ 689 30,832
Paccar, Inc. ................................................. 349 18,235
PacifiCorp.................................................... 1,327 30,023
Pall Corp. ................................................... 570 11,685
Parametric Technology Co. .................................... 1,208 32,767
Parker Hannifin Corp. ........................................ 500 19,062
Peco Energy Co. .............................................. 997 29,099
Penney (J.C.) Co., Inc. ...................................... 1,115 80,628
Pennzoil Co. ................................................. 215 10,884
Peoples Energy Corp. ......................................... 157 6,064
Pep Boys-Manny, Moe & Jack.................................... 283 5,359
Pepsico, Inc. ................................................ 6,658 274,226
Perkin-Elmer Corp. ........................................... 196 12,188
Pfizer, Inc. ................................................. 5,831 633,756
PG & E Corp. ................................................. 1,708 53,908
Pharmacia & Upjohn, Inc. ..................................... 2,275 104,934
Phelps Dodge Corp. ........................................... 271 15,497
Phillip Morris Cos., Inc. .................................... 10,857 427,494
Phillips Petroleum Co. ....................................... 1,180 56,861
Pioneer Hi-Bred Intl., Inc. .................................. 1,095 45,305
Pitney Bowes, Inc. ........................................... 1,222 58,808
Placer Dome, Inc. ............................................ 1,109 13,030
PNC Bank Corp. ............................................... 1,343 72,270
Polaroid Corp. ............................................... 204 7,254
Potlatch Corp. ............................................... 130 5,460
PP&L Resources, Inc. ......................................... 740 16,788
PPG Industries, Inc. ......................................... 803 55,858
Praxair, Inc. ................................................ 708 33,143
Proctor & Gamble Co. ......................................... 5,988 545,282
Progressive Corp. of Ohio..................................... 323 45,543
Providian Financial Corp. .................................... 420 32,996
Public Svc. Enterprise Group.................................. 1,039 35,780
Pulte Corp. .................................................. 190 5,676
Quaker Oats Co. .............................................. 616 33,841
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
Ralston Purina Co. ........................................... 477 $ 55,719
Raychem Corp. ................................................ 390 11,529
Raytheon Co. ................................................. 1,559 92,175
Reebok International Ltd...................................... 252 6,977
Republic New York Corp. ...................................... 492 30,965
Reynold's Metals Co. ......................................... 330 18,459
Rite-Aid Corp. ............................................... 1,154 43,347
Rockwell Intl., Corp. ........................................ 878 42,198
Rohm & Haas Co. .............................................. 276 28,686
Rowan Cos., Inc. ............................................. 388 7,541
Royal Dutch Petro Co.--NY Shr................................. 9,576 524,884
Rubbermaid, Inc. ............................................. 672 22,302
Russell Corp. ................................................ 163 4,920
Ryder System, Inc. ........................................... 348 10,983
Safeco Corp. ................................................. 633 28,761
Sara Lee Corp. ............................................... 2,086 116,685
SBC Communications, Inc. ..................................... 8,218 328,720
Schering-Plough Corp. ........................................ 3,283 300,804
Schlumberger, Ltd............................................. 2,218 151,517
Scientific-Atlanta, Inc. ..................................... 347 8,805
Seagate Technology, Inc. ..................................... 1,096 26,098
Seagram, Ltd.................................................. 1,546 63,289
Sealed Air Corp. New.......................................... 369 13,560
Sears Roebuck & Co. .......................................... 1,755 107,164
Sempra Energy................................................. 561 15,565
Service Corp. International................................... 1,127 48,320
Shared Medical Systems Corp. ................................. 112 8,225
Sherwin-Williams Co. ......................................... 774 25,638
Sigma-Aldrich Corp. .......................................... 449 15,771
Silicon Graphics, Inc. ....................................... 839 10,172
Snap-On, Inc. ................................................ 274 9,932
Sonat, Inc. .................................................. 484 18,694
Southern Co. ................................................. 3,094 85,665
Southwest Airlines Co. ....................................... 981 29,062
Springs Industries, Inc. Cl A................................ 90 4,151
Sprint Corp. ................................................. 1,929 135,994
St. Jude Medical, Inc. ....................................... 375 13,804
St. Paul Companies (The)...................................... 1,032 43,408
Stanley Works................................................. 399 16,583
State Street Corp............................................. 720 50,040
Stone Container Corp. ........................................ 445 6,953
Summit Bancorp................................................ 800 38,000
Sun America, Inc. ............................................ 874 50,200
Sun Co., Inc. ................................................ 419 16,262
Sun Microsystems, Inc. ....................................... 1,679 72,931
Suntrust Banks, Inc. ......................................... 945 76,840
Supervalu, Inc. .............................................. 272 12,070
Synovus Financial Corp. ...................................... 1,200 28,500
Sysco Corp. .................................................. 1,534 39,308
Tandy Corp. .................................................. 474 25,151
Tektronix, Inc. .............................................. 225 7,959
Tele-Comm Liberty Media Gp. A................................. 2,269 87,214
Tellabs, Inc. ................................................ 811 58,087
Temple-Inland, Inc. .......................................... 255 13,738
Tenet Healthcare Corp. ....................................... 1,357 42,406
Tenneco, Inc. ................................................ 763 29,041
Texaco, Inc. ................................................. 2,416 144,205
Texas Instruments, Inc. ...................................... 1,750 102,046
Texas Utilities Co. .......................................... 1,105 45,995
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
INDEXED ASSETS (CONTINUED):
Common Stocks (Continued)
Textron, Inc. .............................................. 739 $ 52,977
Thermo Electron Corp. ...................................... 712 24,341
Thomas & Betts Corp. ....................................... 246 12,115
Time Warner, Inc. .......................................... 2,638 225,384
Times Mirror Co. Cl A....................................... 429 26,973
Timken Co. ................................................. 282 8,689
TJX Cos., Inc. ............................................. 1,464 35,319
Torchmark Corp. ............................................ 620 28,365
Toys R Us, Inc. ............................................ 1,278 30,112
Transamerica Corp. ......................................... 284 32,695
Travelers Group, Inc. ...................................... 5,141 311,673
Tribune Co. ................................................ 550 37,846
Tricon Global Restaurants................................... 685 21,705
TRW, Inc. .................................................. 552 30,153
Tupperware Corp............................................. 274 7,706
Tyco International Ltd...................................... 2,604 164,052
U.S. Bancorp................................................ 3,291 141,513
U.S. Surgical Corp. ........................................ 329 15,010
U.S. West................................................... 2,240 105,289
Unicom Corp. ............................................... 969 33,975
Unilever N.V................................................ 2,868 226,392
Union Camp Corp. ........................................... 311 15,433
Union Carbide Corp. ........................................ 608 32,452
Union Pacific Corp. ........................................ 1,107 48,846
Union Pacific Resources Grp................................. 1,137 19,968
Unisys Corp. ............................................... 1,083 30,594
United Healthcare Corp. .................................... 861 54,673
United Technologies Corp. .................................. 1,025 94,812
Unocal Corp. ............................................... 1,078 38,538
UNUM Corp. ................................................. 625 34,687
US Airways Group Inc. ...................................... 452 35,821
UST, Inc. .................................................. 824 22,248
USX-Marathon Group.......................................... 1,291 44,297
USX-U.S. Steel Group, Inc. ................................. 384 12,672
V F Corp. .................................................. 529 27,243
Venator Group, Inc. ........................................ 605 11,570
Viacom, Inc. ............................................... 1,581 92,093
W.R. Grace & Co. ........................................... 333 5,681
Wachovia Corp. ............................................. 915 77,317
Wal-Mart Stores, Inc. ...................................... 10,029 609,261
Walgreen Co. ............................................... 2,206 91,135
Warner-Lambert Co. ......................................... 3,648 253,080
Washington Mutual, Inc. .................................... 1,731 75,190
Waste Management, Inc. ..................................... 2,124 74,340
Wells Fargo & Co. .......................................... 381 140,589
Wendy's International, Inc. ................................ 590 13,865
Western Atlas, Inc. ........................................ 242 20,539
Westvaco Corp. ............................................. 457 12,910
Weyerhaeuser Co. ........................................... 894 41,291
Whirlpool Corp. ............................................ 334 22,962
Willamette Industries, Inc. ................................ 498 15,936
Williams Cos., Inc. ........................................ 1,893 63,888
Winn-Dixie Stores, Inc. .................................... 667 34,142
WorldCom, Inc. ............................................. 4,609 223,248
Worthington Industries, Inc. ............................... 433 6,522
Wrigley (Wm.) Jr. Co. ...................................... 521 51,058
Xerox Corp. ................................................ 1,457 148,067
-----------
Total Indexed Assets--Common Stocks (Cost: $23,765,122) 61.5%...... $39,987,173
-----------
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- -----------
<S> <C> <C> <C> <C>
INDEXED ASSETS (CONTINUED):
Short-Term Debt Securities:
<CAPTION>
U.S. Government (0.1%)
<S> <C> <C> <C> <C>
U.S. Treasury Bill........................ 4.75% 8/6/98 $ 40,000 $ 39,809
U.S. Treasury Bill........................ 5.00 9/17/98 50,000 49,454
-----------
89,263
-----------
Commercial Paper (2.6%)
American Express Credit Corp.............. 5.57 7/6/98 487,000 486,623
Cargill, Inc.............................. 6.10 7/1/98 465,000 465,000
General Mills, Inc........................ 5.55 7/2/98 500,000 499,923
OGE Energy Corp........................... 5.70 7/2/98 230,000 229,964
-----------
1,681,510
-----------
Total Short-Term Debt Securities (Cost: $1,770,773) 2.7%.......... 1,770,773
-----------
Total Indexed Assets (Cost: $25,535,895) 64.2%.................... $41,757,946
-----------
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
ACTIVE ASSETS:
Common Stocks:
Basic Materials (0.8%)
Cabot Corp. ................................................ 3,800 $ 122,787
Lone Star Technologies, Inc.*............................... 7,500 114,375
Morton International, Inc. ................................. 3,900 97,500
Oregon Steel Mills, Inc. ................................... 4,500 83,812
Praxair, Inc. .............................................. 2,700 126,393
----------
544,867
----------
Consumer, Cyclical (8.9%)
American Greetings Corp. Cl A............................... 4,000 203,750
Ashworth Inc.*.............................................. 2,400 33,300
Atlantic Coast Airlines Hldg.*.............................. 7,400 222,000
Bed Bath & Beyond, Inc.*.................................... 2,500 129,531
Bergen Brunswig............................................. 700 32,462
BJ's Wholesale Club, Inc. .................................. 1,800 73,125
Borders Group, Inc.*........................................ 1,800 66,600
Brylane, Inc.*.............................................. 2,500 115,000
CKE Restaurants, Inc. ...................................... 2,810 115,912
Callaway Golf Co. .......................................... 6,100 120,093
Cec Entertainment, Inc.*.................................... 1,700 68,531
Claire's Stores, Inc. ...................................... 4,000 82,000
Clear Channel Communications*............................... 938 102,359
Coach USA, Inc.*............................................ 2,790 127,293
Continental Airlines, Inc. Cl. B*........................... 1,000 60,875
Duane Reade, Inc.*.......................................... 1,700 51,000
Earthgrains Co. ............................................ 2,400 134,100
Elder-Berrman Stores Corp.*................................. 4,900 130,768
Family Dollar Stores Inc. .................................. 5,400 99,900
Family Golf Centers, Inc.*.................................. 2,850 72,140
Finlay Enterprises, Inc.*................................... 8,000 193,000
Flowers Industries, Inc. ................................... 1,400 28,612
Gannett Co., Inc. .......................................... 2,400 170,550
Golden Bear Golf, Inc.*..................................... 7,400 37,000
Jacor Communications, Inc.*................................. 2,200 129,800
Linens'n Things, Inc.*...................................... 3,500 106,968
Masco Corp. ................................................ 3,000 181,500
Michaels Stores, Inc.*...................................... 3,100 109,372
Midwest Express Holdings, Inc.*............................. 1,700 61,518
Nordstrom, Inc. ............................................ 2,700 208,575
Outback Steakhouse, Inc.*................................... 3,100 120,900
Outdoor Systems, Inc.*...................................... 8,775 245,700
Premier Parks Inc.*......................................... 1,700 113,262
Proffitt's, Inc.*........................................... 1,800 72,675
Rent-Way Inc.*.............................................. 2,600 79,300
Ryanair Holdings PLC ADR*................................... 5,700 203,062
Ryder System, Inc. ......................................... 3,500 110,468
Skywest, Inc. .............................................. 4,600 128,800
St. John Knits, Inc. ....................................... 4,800 185,400
Stage Stores, Inc.*......................................... 2,800 126,700
Starwood Hotels & Resorts................................... 1,700 82,131
Suiza Foods Corp. .......................................... 6,390 381,403
Sunglass Hut Int'l Inc.*.................................... 5,300 58,631
The Finish Line*............................................ 2,500 70,312
Tiffany & Co. .............................................. 6,200 297,600
United Stationers, Inc.*.................................... 600 38,850
Wendy's International, Inc. ................................ 5,700 133,950
Westpoint Stevens Inc.*..................................... 2,400 79,200
----------
5,795,978
----------
Consumer, Non-Cyclical (3.2%)
American Home Products Corp. ............................... 3,400 175,950
Biomet, Inc. ............................................... 2,400 79,350
Bon-Ton Stores, Inc.*....................................... 5,600 89,950
Elan Corp Plc -Spons ADR*................................... 1,000 64,312
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
ACTIVE ASSETS (CONTINUED):
Consumer, Non-Cyclical (Continued)
Food Lion, Inc. ............................................ 3,300 $ 35,062
Forest Laboratories, Inc.*.................................. 3,500 125,125
Fort James Corp of Virginia................................. 2,300 102,350
Fred Meyer, Inc.*........................................... 2,000 85,000
I-STAT Corp.*............................................... 2,800 31,500
IDEC Pharmaceuticals Corp.*................................. 1,100 25,918
Keebler Foods Co.*.......................................... 2,200 60,500
Lilly (Eli) & Co. .......................................... 3,000 198,187
Lincare Holdings, Inc.*..................................... 3,800 159,837
Medimmune, Inc.*............................................ 1,300 81,087
Medquist, Inc.*............................................. 5,200 150,150
Omnicare, Inc. ............................................. 1,800 68,625
Orthodontic Centers of America*............................. 5,400 113,062
Phillip Morris Cos., Inc. .................................. 4,500 177,187
Safeskin Corp.*............................................. 2,000 82,250
US Foodservice*............................................. 2,600 91,162
Whole Foods Market, Inc.*................................... 1,200 72,600
----------
2,069,164
----------
Energy (2.6%)
Elf Aquitaine--ADR.......................................... 3,300 234,300
Kerr-McGee Corp. ........................................... 2,100 121,537
Marine Drilling Companies, Inc.*............................ 8,000 128,000
National-Oilwell Inc.*...................................... 6,600 176,962
Newpark Resources Inc.*..................................... 13,400 149,075
Noble Drilling Corp.*....................................... 4,100 98,656
Precision Drilling Corp.*................................... 8,300 162,887
Schlumberger, Ltd. ......................................... 1,800 122,962
St. Mary Land & Exploration................................. 4,600 110,975
Stolt Comex Seaway, S.A.*................................... 4,000 77,500
Union Pacific Resources Grp................................. 7,500 131,718
USX-Marathon Group.......................................... 3,600 123,525
Varco International, Inc.*.................................. 2,200 43,587
----------
1,681,684
----------
Financial (5.5%)
Ahmanson (H.F.) & Co. ...................................... 2,500 177,500
American Int'l. Group, Inc. ................................ 2,550 372,300
Aon Corp. .................................................. 2,100 147,525
Beneficial Corp. ........................................... 1,200 183,825
Citicorp.................................................... 3,200 477,600
CMAC Investment Corp. ...................................... 2,100 129,150
Enhance Financial Svcs Group................................ 1,800 60,750
Finova Group, Inc. ......................................... 1,000 56,625
First Union Corp. .......................................... 4,000 233,000
Fleet Financial Group, Inc. ................................ 1,900 158,650
Fremont General Corp. ...................................... 500 27,093
Horace Mann Educators Corp. ................................ 4,400 151,800
Indymac Mortgage Holdings Inc. ............................. 4,200 95,550
Loews Corp. ................................................ 1,000 87,125
National City Corp. ........................................ 2,160 153,360
NationsBank Corp. .......................................... 4,400 336,600
Oriental Financial Group.................................... 7,400 272,875
Providian Financial Corp. .................................. 2,700 212,118
U.S. Bancorp................................................ 6,000 258,000
----------
3,591,446
----------
Industrial (3.9%)
American Disposal Serv., Inc.*.............................. 1,600 75,000
Applied Materials, Inc.*.................................... 10,400 306,800
Borg-Warner Automotive, Inc. ............................... 4,200 201,862
Burlington Northern Santa Fe................................ 1,400 137,462
Chart Industries, Inc. ..................................... 3,300 78,787
Cal Dive International, Inc. ............................... 4,200 115,762
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
ACTIVE ASSETS (CONTINUED):
Industrial (Continued)
Checkfree Holdings Corp. ................................... 3,300 $ 97,143
Dura Automotive Systems, Inc.*.............................. 1,500 48,187
First Data Corp. ........................................... 5,000 166,562
Foster Wheeler Corp. ....................................... 2,900 62,168
Hooper Holmes, Inc.......................................... 3,300 69,300
Kansas City Southern Inds................................... 1,600 79,400
Keane, Inc.*................................................ 780 43,680
Knoll, Inc.*................................................ 2,800 82,600
Kuhlman Corp. .............................................. 4,700 185,943
Pittway Corp. .............................................. 900 66,487
QRS Corp.*.................................................. 1,400 52,675
Sherwin-Williams Co. ....................................... 2,000 66,250
Steven Myers & Assoc. Inc.*................................. 6,000 115,500
Stolt Comex Seaway S.A. ADR*................................ 2,000 35,000
Tower Automotive, Inc.*..................................... 4,500 192,937
USA Waste Services, Inc. ................................... 1,497 73,914
VWR Scientific Products Corp.*.............................. 2,500 61,562
York International Corp. ................................... 3,100 135,043
----------
2,550,024
----------
Technology (9.8%)
3Com Corp.*................................................. 11,700 359,043
Alza Corp.*................................................. 2,600 112,450
Ascend Communications, Inc.*................................ 1,600 79,300
AT&T Corp. ................................................. 2,200 125,675
Atmel Corp.*................................................ 11,900 162,137
Ballard Medical Products.................................... 4,600 82,800
Boeing Co. ................................................. 2,400 106,950
CBT Group Plc-Spon ADR*..................................... 2,900 155,150
Ciena Corp.*................................................ 4,400 306,350
Cisco Systems, Inc.*........................................ 13,050 1,201,450
Compaq Computer Corp. ...................................... 18,400 522,100
Cytyc Corporation*.......................................... 6,500 106,031
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE ASSETS (CONTINUED):
Technology (Continued)
Hewlett-Packard Co. ........................................ 1,200 $ 71,850
INCYTE Pharmaceuticals, Inc.*............................... 4,100 139,912
Intel Corp. ................................................ 7,800 578,175
Intl. Business Machines Corp. .............................. 1,800 206,662
Intuit, Inc.*............................................... 1,500 91,875
Linear Technology Corp. .................................... 4,500 271,406
Maxim Integrated Products, Inc.*............................ 7,600 240,825
N2K Inc.*................................................... 1,600 31,400
Networks Associates, Inc.*.................................. 1,200 57,450
Parametric Technology Co.*.................................. 9,800 265,825
Raytheon Co. Cl A........................................... 108 6,223
Raytheon Co. Cl B........................................... 3,800 224,675
Saville Systems Spon ADR*................................... 2,300 115,287
Technology Solutions Company*............................... 2,115 67,019
Tellabs, Inc.*.............................................. 1,100 78,787
Transaction Network Services*............................... 1,700 35,806
Visual Networks, Inc.*...................................... 1,000 36,625
Xerox Corp.*................................................ 2,350 238,818
Xilinx, Inc.*............................................... 7,500 255,000
Yahoo! Inc.*................................................ 200 31,500
-----------
6,364,556
-----------
Utilities (1.0%)
Consolidated Natural Gas Co. ............................... 1,600 94,200
Duke Energy Corp. .......................................... 1,500 88,875
Entergy Corp. .............................................. 500 14,375
MCI Communications Corp. ................................... 4,500 261,562
SBC Communications, Inc. ................................... 4,200 168,000
-----------
627,012
-----------
Total Active Assets--Common Stocks (Cost: $18,888,882) 35.7%....... $23,224,731
-----------
</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)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ------- -----------
<S> <C> <C> <C> <C>
ACTIVE ASSETS (CONTINUED):
Short-Term Debt Securities:
U.S. Government (0.1%)
U.S. Treasury Bill......................... 5.00% 9/10/98 $45,000 $ 44,545
U.S. Treasury Bill......................... 5.01 11/19/98 15,000 14,705
-----------
Total Active Assets Short-Term Debt Securities
(Cost: $59,250) 0.1%............................................. 59,250
-----------
Total Active Securities
(Cost: $18,948,132) 35.8%........................................ 23,283,981
-----------
Total Investments
(Cost: $44,484,027) 100.0%....................................... $65,041,927
===========
</TABLE>
- -------
* Non-income producing security.
- --------------
FUTURES CONTRACTS OUTSTANDING AS OF JUNE 30, 1998:
<TABLE>
<CAPTION>
UNDERLYING FACE UNREALIZED
EXPIRATION DATE AMOUNT AT VALUE GAIN
--------------- ---------------- ----------
<S> <C> <C> <C>
Purchased
6 S&P 500 Stock Index Futures
Contracts........................ September 1998 $1,714,500 $50,785
========== =======
</TABLE>
The face value of futures purchased and outstanding as percentage of total
investment in securities: 2.6%.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- ----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government (24.4%)
U.S. Treasury Bond....................... 7.13% 2/15/23 $1,500,000 $1,774,455
U.S. Treasury Note....................... 6.63 4/30/02 500,000 518,360
U.S. Treasury Note....................... 6.50 5/15/05 3,250,000 3,430,277
----------
5,723,092
----------
Agencies/Other Governments (33.0%)
Federal Home Loan Bank................... 0.00 7/2/12 5,000,000 1,660,150
Federal Home Loan Bank................... 0.00 8/18/17 5,000,000 1,118,750
FHLMC.................................... 8.00 7/15/06 321,515 335,076
FHLMC.................................... 6.50 10/15/06 400,000 402,500
FHLMC.................................... 7.00 4/15/17 350,433 352,402
FHLMC.................................... 7.50 5/15/18 8,943 8,923
FHLMC.................................... 0.00 5/22/28 5,000,000 639,850
FNMA..................................... 7.00 11/25/07 1,000,000 1,035,310
FNMA..................................... 6.80 6/25/05 397,868 398,365
FNMA..................................... 7.00 11/25/05 600,000 609,000
FNMA..................................... 7.75 10/25/18 182,526 182,239
Republic of Iceland...................... 6.13 2/1/04 1,000,000 1,008,710
----------
7,751,275
----------
Basic Materials (1.2%)
Georgia-Pacific (Timber Group)........... 8.63 4/30/25 250,000 276,797
----------
Consumer, Cyclical (5.2%)
Fruit of the Loom, Inc. ................. 7.00 3/15/11 250,000 226,635
Fruit of the Loom, Inc. ................. 7.38 11/15/23 250,000 226,280
Polaroid Corp. .......................... 7.25 1/15/07 250,000 254,850
Venator Group............................ 7.00 10/15/02 500,000 513,115
----------
1,220,880
----------
Consumer, Non-Cyclical (2.1%)
Bausch & Lomb, Inc. ..................... 6.75 12/15/04 500,000 505,165
----------
Financial (21.7%)
Bear Stearns Cos., Inc. ................. 6.63 10/1/04 1,000,000 1,022,810
Chase Manhattan Corp. ................... 6.88 12/12/12 1,000,000 1,008,890
Executive Risk, Inc. .................... 7.13 12/15/07 500,000 511,965
Harleysville Group Inc. ................. 6.75 11/15/03 250,000 255,635
Morgan (J.P.) & Co., Inc. ............... 0.00 4/15/27 2,500,000 287,575
Rank Group Financial..................... 6.75 11/30/04 500,000 506,425
Rodamco NV............................... 7.30 5/15/05 1,000,000 1,060,920
Standard Cr. Card Master Trust........... 6.70 9/7/02 200,000 201,374
Triad Guaranty........................... 7.90 1/15/28 250,000 256,380
----------
5,111,974
----------
Industrial (7.9%)
Clark Equipment Co. ..................... 8.35 5/15/23 500,000 592,675
Geon Co. ................................ 7.50 12/15/15 250,000 258,435
Williams Cos., Inc. ..................... 6.50 11/15/02 1,000,000 1,009,454
----------
1,860,564
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
Utilities (2.2%)
Utilicorp United, Inc. ................... 8.00% 3/1/23 $500,000 $ 523,390
-----------
Total Long-Term Debt Securities (Cost: $22,279,449) 97.7%......... 22,973,137
-----------
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.3%)
U.S. Treasury Bill........................ 4.90 10/15/98 60,000 59,104
-----------
Agencies/Other Government (0.4%)
FHLMC..................................... 5.56 9/1/98 95,000 94,039
-----------
Commercial Paper (1.6%)
Cargill, Inc.............................. 6.10 7/1/98 274,000 274,000
Motorola, Inc............................. 5.52 7/14/98 110,000 109,780
-----------
383,780
-----------
Total Short-Term Debt Securities
(Cost: $537,022) 2.3%............................................ 536,923
-----------
Total Investments
(Cost: $22,816,471) 100.0%....................................... $23,510,060
===========
</TABLE>
Abbreviations:FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
DISCOUNT FACE
RATINGS* RATE MATURITY AMOUNT VALUE
-------- -------- -------- ------- ----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U. S. Government (2.0%)
U.S. Treasury Bill.............. 5.00% 09/10/98 $15,000 $ 14,850
U.S. Treasury Bill.............. 5.00 10/15/98 35,000 34,477
U.S. Treasury Bill.............. 5.05 11/05/98 30,000 29,459
----------
78,786
----------
Agencies/Other Governments (3.3%)
FHLMC........................... 5.40 07/29/98 75,000 74,684
FNMA............................ 5.40 08/24/98 57,000 56,533
----------
131,217
----------
Commercial Paper (94.7%)
Alabama Power Co................ A1/P1 5.51 07/28/98 140,000 139,420
American Express Credit Corp. .. A1/P1 5.50 07/14/98 160,000 159,680
Associates Corp. ............... A1+/P1 5.65 07/10/98 197,000 196,722
Bear Stearns Co. ............... A1/P1 5.53 07/20/98 141,000 140,588
Bellsouth Telephone............. A1+/P1 5.50 07/28/98 155,000 154,359
British Telecommunications...... A1+/P1 5.49 07/21/98 101,000 100,691
Carolina Power & Light.......... A1/P1 5.50 07/07/98 165,000 164,847
Coca-Cola Co. .................. A1+/P1 5.46 07/24/98 170,000 169,404
Daimler Benz North Amer. Corp. . A1/P1 5.53 08/18/98 154,000 152,863
Disney (Walt) Enterprises Inc. . A1/P1 5.42 07/13/98 158,000 157,713
Du Pont (E.I.) De Nemours &
Co. ........................... A1+/P1 5.50 07/10/98 100,000 99,862
Duke Power Co. ................. A1+/P1 5.50 07/30/98 155,000 154,312
Florida Power Co. .............. A1+/P1 5.51 07/23/98 133,000 132,551
Ford Motor Credit Co. .......... A1/P1 5.51 07/24/98 180,000 179,362
General Electric Capital Corp. . A1+/P1 5.52 07/06/98 173,000 172,866
GTE Funding Inc. ............... A1/P1 5.51 07/16/98 153,000 152,648
International Lease Fin Corp. .. A1/P1 6.05 07/01/98 197,000 197,000
Merrill Lynch & Co. ............ A1+/P1 5.53 07/01/98 150,000 150,000
Novartis Finance Corp. ......... A1+/P1 5.50 07/15/98 100,000 99,785
Petrofina Delaware Inc. ........ A1/P1 5.50 08/14/98 132,000 131,110
Toyota Credit de Puerto Rico.... A1+/P1 5.52 07/21/98 135,000 134,584
Toys 'R' Us, Inc. .............. A1/P1 5.50 08/04/98 180,000 179,061
UBS Finance Delw., Inc. ........ A1/P1 5.51 08/04/98 190,000 189,007
Wisconsin Electric Fuel......... A1+/P1 5.49 07/07/98 160,000 159,852
Xerox Credit Corp. ............. A1/P1 5.52 08/07/98 110,000 109,377
----------
3,777,664
----------
Total Short-Term Debt Securities (Cost: $3,987,673) 100.0%.......... $3,987,667
==========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investor
Services, Inc.
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY
ALL AMERICA BOND MARKET
FUND FUND FUND
----------- ----------- ----------
<S> <C> <C> <C>
Assets:
Investments at market value (Notes 1 and 3)
(Cost:
All America Fund-- $44,484,027
Bond Fund-- $22,816,471
Money Market-- $3,987,673).................$65,041,927.$23,510,060 $3,987,667
Cash......................................... 268,733 674 745
Interest and dividends receivable............ 58,251 235,317 --
Shareholders subscriptions receivable........ 20,746 -- 1,912
Receivable for securities sold............... 797,315 -- --
----------- ----------- ----------
Total Assets................................. 66,186,972 23,746,051 3,990,324
----------- ----------- ----------
Payable for securities purchased............. 456,360 -- --
Dividend payable to shareholders............. 618 4,077 8,538
Shareholders redemptions payable............. -- -- 30,000
Accrued expenses............................. 741 163 10
----------- ----------- ----------
Total Liabilities............................ 457,719 4,240 38,548
----------- ----------- ----------
Net Assets................................... $65,729,253 $23,741,811 $3,951,776
=========== =========== ==========
Shares Outstanding (Note 4).................. 4,560,891 2,258,050 389,302
=========== =========== ==========
Net Asset Value Per Share.................... $ 14.41 $ 10.51 $ 10.15
=========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30,1998 (UNAUDITED)
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ---------- ------------
<S> <C> <C> <C>
Investment Income (Note 1):
Dividends............................. $ 370,192 $ -- $ --
Interest.............................. 35,432 755,642 111,191
----------- ---------- --------
Total Investment Income................. 405,624 755,642 111,191
----------- ---------- --------
Expenses (Note 2):
Investment management fees............ 153,243 50,563 3,820
Directors' (independent) fees and ex-
penses............................... 10,931 10,931 10,930
Custodian expenses.................... 21,362 2,161 8,920
Accounting expenses................... 15,000 15,000 11,000
Transfer agent fees................... 8,306 6,071 9,353
Registration fees and expenses........ 19,484 13,636 15,090
Audit................................. 6,400 3,470 2,130
Printing.............................. 19,250 6,875 1,375
Other................................. 6,497 532 133
----------- ---------- --------
Total Expenses before reimbursement..... 260,473 109,239 62,751
Expense reimbursement................... (2,987) (29,699) (54,801)
----------- ---------- --------
Net Expenses............................ 257,486 79,540 7,950
----------- ---------- --------
Net Investment Income................... 148,138 676,102 103,241
----------- ---------- --------
Net Realized and Unrealized Gain (Loss)
on Investments (Note 1):
Net realized gain (loss) on investments:
Net proceeds from sale................ 10,672,004 3,932,937 --
Cost of securities sold............... 9,043,051 3,780,144 --
----------- ---------- --------
Net realized gain (loss)................ 1,628,953 152,793 --
Realized gain (loss) on short-term secu-
rities................................. (22) (80) (132)
----------- ---------- --------
Net realized gain (loss) on investments. 1,628,931 152,713 (132)
Net unrealized appreciation (deprecia-
tion) of investments................... 6,294,071 57,584 (6)
----------- ---------- --------
Net Realized and Unrealized Gain (Loss)
on Investments......................... 7,923,002 210,297 (138)
----------- ---------- --------
Net Increase in Net Assets Resulting
from Operations........................ $ 8,071,140 $ 886,399 $103,103
=========== ========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALL AMERICA FUND BOND FUND MONEY MARKET FUND
---------------------------- -------------------------- -------------------------------
FOR THE PERIOD
MAY 1, 1997
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX (COMMENCEMENT
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED OF OPERATIONS) TO
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------- -------------- ------------- ------------ ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
From Operations:
Net investment income.. $ 148,138 $ 344,286 $ 676,102 $ 1,196,626 $ 103,241 $ 102,944
Net realized gain
(loss) on investments. 1,628,931 5,255,923 152,713 224,653 (132) (43)
Net unrealized
appreciation
(depreciation) of
investments........... 6,294,071 8,744,059 57,584 373,683 (6) --
----------- -------------- ----------- ----------- ---------- ----------
Net Increase (Decrease)
in Net Assets
Resulting From
Operations............ 8,071,140 14,344,268 886,399 1,794,962 103,103 102,901
----------- -------------- ----------- ----------- ---------- ----------
Dividend Distributions
(Note 5):
From net investment
income................ (135,502) (342,956) (668,138) (1,195,133) (102,152) (102,362)
From capital gains..... -- (4,524,483) -- (25,567) -- --
----------- -------------- ----------- ----------- ---------- ----------
Total Distributions.... (135,502) (4,867,439) (668,138) (1,220,700) (102,152) (102,362)
----------- -------------- ----------- ----------- ---------- ----------
Capital Share
Transactions (Note 4):
Net Proceeds from sale
of shares............. 1,040,963 2,120,648 712,500 1,388,091 1,919,025 7,907,064
Dividend reinvestments. 134,884 4,852,995 664,061 1,219,471 93,614 100,093
Cost of shares
redeemed.............. (55,395) (15,290,000) -- (2,051,357) (5,573,510) (496,000)
----------- -------------- ----------- ----------- ---------- ----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... 1,120,452 (8,316,357) 1,376,561 556,205 (3,560,871) 7,511,157
----------- -------------- ----------- ----------- ---------- ----------
Net Increase (Decrease)
in Net Assets.......... 9,056,090 1,160,472 1,594,822 1,130,467 (3,559,920) 7,511,696
Net Assets, Beginning of
Period/Year............ 56,673,163 55,512,691 22,146,989 21,016,522 7,511,696 --
----------- -------------- ----------- ----------- ---------- ----------
Net Assets, End of
Period/Year............ $65,729,253 $ 56,673,163 $23,741,811 $22,146,989 $3,951,776 $7,511,696
=========== ============== =========== =========== ========== ==========
Components of Net
Assets:
Paid-in capital........ $43,241,968 $42,121,516.00 $22,690,731 $21,314,170 $3,950,286 $7,511,157
Accumulated
undistributed net
investment income..... 16,968 4,332 14,459 6,495 1,671 582
Accumulated
undistributed net
realized gain(loss) on
investments........... 1,912,417 283,486 343,032 190,319 (175) (43)
Unrealized appreciation
(depreciation) of
investments 20,557,900 14,263,829 693,589 636,005 (6) --
----------- -------------- ----------- ----------- ---------- ----------
Net Assets, End of
Period/Year............ $65,729,253 $ 56,673,163 $23,741,811 $22,146,989 $3,951,776 $7,511,696
=========== ============== =========== =========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALL AMERICA FUND BOND FUND MONEY MARKET FUND
------------------------------------- ------------------------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
JUNE 30, YEAR ENDED YEAR ENDED JUNE 30, YEAR ENDED YEAR ENDED JUNE 30, YEAR ENDED
1998 DECEMBER 31, DECEMBER 31, 1998 DECEMBER 31, DECEMBER 31, 1998 DECEMBER 31,
(UNAUDITED) 1997 1996(F) (UNAUDITED) 1997 1996(F) (UNAUDITED) 1997 (E)
----------- ------------ ------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period............ $12.65 $10.98 $10.00 $10.41 $10.13 $10.01 $10.15 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from
investment
operations:
Net investment
income........... 0.03 0.08 0.06 0.30 0.59 0.38 0.27 0.35
Net gains or
losses on
securities
(realized and
unrealized)...... 1.76 2.77 0.98 0.10 0.29 0.12 -- --
------ ------ ------ ------ ------ ------ ------ ------
Total from
Investment
Operations........ 1.79 2.85 1.04 0.40 0.88 0.50 0.27 0.35
------ ------ ------ ------ ------ ------ ------ ------
Less dividend
distributions:
From net
investment
income........... (0.03) (0.08) (0.06) (0.30) (0.59) (0.38) (0.27) (0.20)
From capital
gains............ -- (1.10) -- -- (0.01) -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Total
Distributions..... (0.03) (1.18) (0.06) (0.30) (0.60) (0.38) (0.27) (0.20)
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value,
End of Period..... $14.41 $12.65 $10.98 $10.51 $10.41 $10.13 $10.15 $10.15
====== ====== ====== ====== ====== ====== ====== ======
Total return (%)
(b)............... 14.2 26.0 10.4 3.9 8.9 5.0 2.7 3.5
Net assets, end of
period
($ millions)...... 65.7 56.7 55.5 23.7 22.1 21.0 4.0 7.5
Ratio of net
investment income
to average net
assets (%) (a).... 0.48 0.59 0.95 5.95 5.69 5.63 5.28 5.17
Ratio of expenses
to average net
assets (%) (a).... 0.85 0.84 0.87 0.97 1.00 0.90 3.21 2.47
Ratio of expenses
to average net
assets after
expense
reimbursement (%)
(Note 2) (a)...... 0.85 0.81 0.85 0.70 0.70 0.70 0.40 0.40
Portfolio turnover
rate (%) (c)...... 17.47 35.96 9.33 17.77 56.18 17.85 N/A N/A
Average commission
rate
paid ($) (d)...... 0.0593 .0585(g) .0483 N/A N/A N/A N/A N/A
</TABLE>
- -------
(a) 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 short-term securities.
(d)Average commission rate paid per share of stock.
(e)Commenced operations May 1, 1997.
(f)Commenced operations May 1, 1996.
(g)Restated.
N/A = Not Applicable.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 three series of common
stock representing shares of the All America Fund, Bond Fund, and Money Market
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 "Adviser").
The Investment Company is designed primarily as an investment vehicle for
endowments, foundations, corporations, municipalities and other public
entities and other institutional investors.
The All America Fund and Bond Fund commenced operations on May 1, 1996. The
Money Market Fund commenced operations on May 1, 1997.
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 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 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.Foreign source tax withheld from dividends is recorded as a
reduction from dividend income. Should reclamation succeed, such amounts are
recorded as income upon collection.
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.
The All America Fund purchases stock index futures contracts for cash
management purposes to remain more fully invested in the equity markets while
minimizing transaction costs. Initial cash margin deposits (represented by
cash or Treasury bills) are made upon entering into futures contracts. (This
initial margin, maintained in a segregated account, is equal to approximately
4% of the contract amount, and does not involve the borrowing of funds to
finance the transaction). During the period the futures contract is
outstanding, changes in the value of the contract are recognized as unrealized
gains or losses by "marking-to-market"on a daily basis to reflect the market
value of the contract at the end of each trading day. Futures contracts are
valued at the settlement price established each day by the exchange on which
traded. Depending upon whether unrealized gains or losses are incurred,
variation margin payments are received or made. When the contract is closed, a
realized gain or loss from futures transactions is recorded, equal to the net
variation margin received or paid over the period of the contract. The
"Underlying Face Amount at Value" representing the aggregate of outstanding
contractual amounts under futures contracts reflects the extent of the fund's
exposure to off-balance sheet risk.
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 Company's
Adviser.
19
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
The Investment Company has entered into an Investment Advisory Agreement
with 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, .45% of the value of the net assets for the Bond Fund, and .20% of the
value of the net assets for the Money Market Fund.
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 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,
.25% of the net assets of the Bond Fund, and .20% of the net assets of the
Money Market 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 rate established for the All America Fund was reduced to .30% in early
August, 1997 and was further reduced to .20% on October 1, 1997 so as to
maintain as close a relationship as possible between the established rate
(charged daily) and the fund's actual expenses, but not to exceed the
respective rates under the Adviser's existing expense limitation agreement. In
January, 1998 this charge was adjusted to .35% in recognition of the fund's
actual expenses.
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,
.70% of the net assets of the Bond Fund, and .40% of the net assets of the
Money Market Fund may be discontinued at any time.
The Investment Company has entered into an Investment Accounting Agreement
with the Adviser, pursuant to which the Adviser has agreed to serve as
investment accounting and recordkeeping agent for the funds and to calculate
the net asset values of the funds, effective January 2, 1997. Previous
thereto, such services were provided by an unaffiliated entity. The
compensation paid by the funds for these services prior to and subsequent to
January 2, 1997 is subject to the voluntary expense reimbursement of the
Adviser.
A sub-advisor placed a portion of its portfolio transactions with its
affiliated broker-dealer; such commissions amounted to $7,609.15 or 31% 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 six
months ended June 30, 1998 was as follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND
FUND FUND
----------- ----------
<S> <C> <C>
Cost of investment purchases....................... $10,914,576 $4,297,805
=========== ==========
Proceeds from sales of investments................. $10,514,178 $ --
=========== ==========
The cost of investment purchases and proceeds from
sales of U.S. Government (excluding short-term)
securities was as follows:
Cost of investment purchases..................... $ -- $ 627,050
=========== ==========
Proceeds from sales of investments............... $ -- $3,932,937
=========== ==========
</TABLE>
For the Money Market Fund, the cost of short-term securities purchases was
$26,643,736. Net proceeds from sales and redemptions was $30,199,989.
20
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
At June 30, 1998 the net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
Unrealized appreciation............... $22,685,587 $ 718,290 $ --
Unrealized depreciation............... 2,127,687 24,513 6
----------- ----------- ----------
Net unrealized appreciation (deprecia-
tion)................................ $20,557,900 $ 693,589 (6)
=========== =========== ==========
Aggregate cost of investments for Fed-
eral Income tax purposes............. $44,484,027 $22,816,471 $3,987,673
=========== =========== ==========
</TABLE>
4. CAPITAL SHARE ACTIVITY AND OWNERSHIP
At June 30, 1998 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 to the All America Fund and 15 million shares each to the Bond
and Money Market Funds.
Transactions in shares during the six months ending June 30, 1998 were as
follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ------- ------------
<S> <C> <C> <C>
Shares issued.................................. 74,337 67,482 186,015
Shares issued as reinvestment of dividends..... 9,359 63,158 9,222
Shares redeemed................................ (3,914) -- (546,159)
------ ------- --------
Net increase (decrease)........................ 79,782 130,640 (350,922)
====== ======= ========
</TABLE>
As at June 30, 1998, Mutual Of America Life Insurance Company and its
subsidiaries (affiliates of the Adviser) were shareholders of each fund's
outstanding shares as follows:
<TABLE>
<S> <C>
All America Fund............................ 94.7%
Bond Fund................................... 95.3%
Money Market Fund........................... 34.6%
</TABLE>
5. DIVIDENDS
On June 30, 1998, dividend distributions were declared and paid from
accumulated net investment income to shareholders of record on June 29, 1998.
Pursuant to shareholders' instructions, substantially all dividend
distributions were immediately reinvested in additional shares of each fund as
follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- --------- ------------
<S> <C> <C> <C>
Distributions from:
Net investment income.................. $ 135,502 $ 668,138 $ 102,152
Net realized capital gains............. -- -- --
--------- --------- ---------
Total dividend distributions............. $ 135,502 $ 668,138 $ 102,152
========= ========= =========
Dividend amounts per share............... $ .029780 $ .304406 $ .266822
========= ========= =========
</TABLE>
21
<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
