<PAGE>
Mutual of America
Institutional Funds, Inc.
ANNUAL REPORT
ALL AMERICA FUND
BOND FUND
MONEY MARKET FUND
DECEMBER 31, 1997
This report is not to be construed as an offering for sale. No offering is
made except in conjunction with a prospectus which must precede or accompany
this report.
<PAGE>
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
President's Message....................................................... 1
Performance Graphs........................................................ 2
Portfolio of Investments in Securities:
All America Fund........................................................ 4
Bond Fund............................................................... 17
Money Market Fund....................................................... 18
Statement of Assets and Liabilities....................................... 19
Statement of Operations................................................... 20
Statements of Changes in Net Assets....................................... 21
Financial Highlights...................................................... 22
Notes to Financial Statements............................................. 23
Report of Independent Public Accountants.................................. 26
</TABLE>
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
We are pleased to provide Mutual of America Institutional Funds' 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 briskly in 1997 fueled by the good profit growth which
is anticipated to slow in 1998. The markets responded with another good year
buoyed by the lowest unemployment rate in 25 years coupled with low inflation.
Strong Corporate earnings and cash flows into the equity market have propelled
the S&P 500 up 33.4% for the year. The Dow Jones Industrial Average rose
nearly 25% for the same period. In the debt markets, rates have responded to
the market pressures with the long treasury average yield at its lowest since
1993.
For 1998 we expect some disinflation with prices for goods coming down. The
market place does not feel any Federal Reserve action will be needed to raise
rates and indeed there may be some inclination to lower rates.
The annual total return performance of each fund for the year ended December
31, 1997 was as follows. For the Money Market Fund, the return shown is
cumulative from its May 1, 1997 inception.
<TABLE>
<S> <C>
All America Fund.................................................. +26.0%
Bond Fund......................................................... + 8.9%
Money Market Fund................................................. + 3.5%
</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
each fund (except the Money Market 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 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 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, comprise the remainder of the Fund. These segments concentrate
in the following areas: small cap value, small cap growth, large cap value and
mid to large cap growth.
For the year ended December 31, 1997, the Fund's total return of 26.0% was
below that of its respective index, the Standard & Poor's Composite 500 Index
(S&P 500) which returned 33.4%. 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.
All America Fund S&P 500 Index
- -------------------------------------------------------------------------------
5/96* 10,000 10,000
- -------------------------------------------------------------------------------
12/96 11,043 11,515
- -------------------------------------------------------------------------------
12/97 13,909 15,356
- -------------------------------------------------------------------------------
All America Fund S & P 500 Index
---------------- ----------------------
Period Growth Total Return Period Growth Total Return
Ended of Cumu- Annual Ended of Cumu- Annual
12/31/97 $10,000 lative Average 12/31/97 $10,000 lative Average
- ---------------------------------- ------------------------------------
1 year $12,595 26.0% 26.0% 1 year $13,336 33.4% 33.4%
Since Since
Inception* $13,909 39.1% 21.9% Inception* $15,356 53.6% 29.4%
- ---------------------------------- ------------------------------------
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's total return since its May 1, 1997 inception was 3.5%,
which when expressed as an annualized rate was 5.2%, matching the Salomon
Brothers three-month Treasury Bill Index which returned 5.2% for the year. The
seven day annualized effective yield as of 2/17/98 is 5.52%. As with all past
performance reportings, this yield is not necessarily indicative of future
actual yields.
Bond Fund Lehman Brothers\rGov't./Corp Bond Index
- -------------------------------------------------------------------------------
5/96* 10,000 10,000
- -------------------------------------------------------------------------------
12/96 10,501 10,610
- -------------------------------------------------------------------------------
12/97 11,435 11,646
- -------------------------------------------------------------------------------
BOND FUND
Bond Fund Lehman Bros. Gov't./Corp. Bond Index
--------- ----------------------------------------
Period Growth Total Return Period Growth Total Return
Ended of Cum- Annual Ended of Cumu- Annual
12/31/97 $10,000 lative Average 12/31/97 $10,000 lative Average
- ---------------------------------- ----------------------------------------
1 year $10,890 8.9% 8.9% 1 year $10,976 9.8% 9.8%
Since 5/1/96 Since 5/1/96
(Inception) $11,435 14.3% 8.4% (Inception) $11,646 16.5% 9.6%
- --------------------------------- ----------------------------------------
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 (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS:
<S> <C> <C>
Common Stocks
3Com Corp. ................................................. 1,544 $ 53,943
Abbott Laboratories......................................... 3,429 224,813
Adobe Systems, Inc. ........................................ 327 13,488
Advanced Micro Devices, Inc. ............................... 631 11,318
Aeroquip-Vickers, Inc. ..................................... 126 6,181
Aetna, Inc. ................................................ 671 47,347
Ahmanson (H.F.) & Co. ...................................... 423 28,314
Air Products & Chemicals Corp. ............................. 491 40,384
Airtouch Communications, Inc. .............................. 2,257 93,806
Alberto Culver Co. Cl B..................................... 251 8,047
Albertson's, Inc. .......................................... 1,101 52,159
Alcan Aluminum Ltd. ........................................ 1,017 28,094
Allegheny Teledyne Inc. .................................... 788 20,389
Allergan, Inc. ............................................. 291 9,766
AlliedSignal, Inc. ......................................... 2,536 98,745
Allstate Corp. ............................................. 1,922 174,661
Alltel Corp. ............................................... 837 34,369
Aluminum Co. of America..................................... 779 54,822
Alza Corp. ................................................. 381 12,120
Amerada Hess Corp. ......................................... 411 22,553
American Electric Power Co. ................................ 848 43,778
American Express Co. ....................................... 2,084 185,997
American General Corp. ..................................... 1,092 59,056
American Greetings Corp. Cl A............................... 337 13,185
American Home Products Corp. ............................... 2,906 222,309
American Int'l. Group, Inc. ................................ 3,142 341,692
American Stores Co. ........................................ 1,220 25,086
Ameritech Corp. ............................................ 2,453 197,466
Amgen, Inc. ................................................ 1,188 64,300
Amoco Corp. ................................................ 2,183 185,827
Amp, Inc. .................................................. 984 41,328
AMR Corp. .................................................. 412 52,942
Anadarko Petroleum Corp. ................................... 267 16,203
Andrew Corp. ............................................... 404 9,696
Anheuser Busch Cos., Inc. .................................. 2,204 96,976
Aon Corp. .................................................. 749 43,910
Apache Corp. ............................................... 405 14,200
Apple Computer, Inc. ....................................... 571 7,494
Applied Materials, Inc. .................................... 1,634 49,224
Archer Daniels Midland Co. ................................. 2,510 54,435
Armco, Inc. ................................................ 480 2,370
Armstrong World Inds., Inc. ................................ 183 13,679
Asarco, Inc. ............................................... 189 4,240
Ashland, Inc. .............................................. 335 17,985
AT&T Corp. ................................................. 7,279 445,838
Atlantic Richfield Co. ..................................... 1,437 115,139
Autodesk, Inc. ............................................. 215 7,955
Automatic Data Processing, Inc. ............................ 1,312 80,524
AutoZone, Inc. ............................................. 677 19,633
Avery Dennison Corp. ....................................... 462 20,674
Avon Products, Inc. ........................................ 593 36,395
Baker Hughes, Inc. ......................................... 756 32,980
Ball Corp. ................................................. 135 4,767
Baltimore Gas & Electric Co. ............................... 662 22,549
Banc One Corp. ............................................. 2,631 142,896
Bank of New York, Inc. ..................................... 1,689 97,645
BankAmerica Corp. .......................................... 3,109 226,957
BankBoston Corp. ........................................... 653 61,341
Bankers Trust New York Corp. ............................... 449 50,484
Bard (C.R.), Inc. .......................................... 257 8,047
Barnett Banks, Inc. ........................................ 865 62,171
Barrick Gold Corp. ......................................... 1,670 31,103
Battle Mountain Gold Co. ................................... 1,029 6,045
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Bausch & Lomb, Inc. ........................................ 248 $ 9,827
Baxter International, Inc. ................................. 1,252 63,147
Bay Networks, Inc. ......................................... 941 24,054
BB&T Corp. ................................................. 613 39,270
Becton Dickinson & Co. ..................................... 547 27,350
Bell Atlantic Corp. ........................................ 3,479 316,589
BellSouth Corp. ............................................ 4,442 250,140
Bemis Co. .................................................. 238 10,486
Beneficial Corp. ........................................... 238 19,783
Bethlehem Steel Corp. ...................................... 505 4,355
Biomet, Inc. ............................................... 499 12,786
Black & Decker Corp. ....................................... 423 16,523
Block (H & R), Inc. ........................................ 466 20,882
Boeing Co. ................................................. 4,487 219,582
Boise Cascade Corp. ........................................ 249 7,532
Boston Scientific Corp. .................................... 870 39,911
Briggs & Stratton Corp. .................................... 114 5,536
Bristol-Myers Squibb Co. ................................... 4,457 421,743
Brown-Forman Corp. Cl B .................................... 309 17,072
Browning Ferris Inds., Inc. ................................ 854 31,598
Brunswick Corp. ............................................ 445 13,489
Burlington Northern Santa Fe Corp. ......................... 697 64,777
Burlington Resources, Inc. ................................. 1,039 46,560
Cabletron Systems, Inc. .................................... 707 10,605
Caliber System, Inc. ....................................... 174 8,471
Campbell Soup Co. .......................................... 2,051 119,214
Cardinal Health, Inc. ...................................... 486 36,510
Carolina Power & Light Co. ................................. 678 28,772
Case Corp. ................................................. 334 20,186
Caterpillar, Inc. .......................................... 1,669 81,050
CBS Corp. .................................................. 3,156 92,904
Cendant Corporation ........................................ 3,544 121,811
Centex Corp. ............................................... 130 8,181
Central & South West Corp. ................................. 951 25,736
Ceridian Corp. ............................................. 362 16,584
Champion International Corp. ............................... 430 19,484
Charles Schwab Corp. ....................................... 1,186 49,737
Charming Shoppes, Inc. ..................................... 474 2,221
Chase Manhattan Corp. ...................................... 1,898 207,831
Chevron Corp. .............................................. 2,934 225,918
Chrysler Corp. ............................................. 2,970 104,506
Chubb Corp. ................................................ 763 57,701
CIGNA Corp. ................................................ 332 57,456
Cincinnati Financial Corp. ................................. 246 34,624
Cincinnati Milacron, Inc. .................................. 179 4,642
Cinergy Corp. .............................................. 707 27,086
Circuit City Group, Inc. ................................... 441 15,683
Cisco Systems, Inc. ........................................ 4,511 251,488
Citicorp ................................................... 2,053 259,576
Clear Channel Communications, Inc. ......................... 439 34,873
Clorox Co. ................................................. 463 36,605
Coastal Corp. .............................................. 475 29,420
Coca-Cola Co. .............................................. 11,087 738,671
Cognizant Corp. ............................................ 736 32,798
Colgate-Palmolive Co. ...................................... 1,326 97,461
Columbia Energy Group ...................................... 248 19,483
Columbia HCA Healthcare Corp. .............................. 2,903 86,001
Comcast Corp. Cl A ......................................... 1,563 49,332
Comerica, Inc. ............................................. 473 42,688
Compaq Computer Corp. ...................................... 3,388 191,210
Computer Associates Intl., Inc. ............................ 2,446 129,332
Computer Sciences Corp. .................................... 346 28,891
Conagra, Inc. .............................................. 2,120 69,562
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Conseco, Inc. .............................................. 842 $ 38,258
Consolidated Edison Inc. ................................... 1,053 43,173
Consolidated Natural Gas Co. ............................... 427 25,833
Cooper Industries, Inc. .................................... 547 26,803
Cooper Tire & Rubber Co. ................................... 353 8,604
Coors (Adolph) Co. Cl B .................................... 166 5,519
CoreStates Financial Corp. ................................. 887 71,015
Corning, Inc. .............................................. 1,034 38,387
Costco Co. ................................................. 952 42,483
Countrywide Credit Industries .............................. 480 20,580
CPC International, Inc. .................................... 643 69,444
Crane Co. .................................................. 206 8,935
Crown Cork & Seal Co., Inc. ................................ 575 28,821
CSX Corp. .................................................. 976 52,704
Cummins Engine, Inc. ....................................... 171 10,099
CVS Corp. .................................................. 771 49,392
Cyprus Amax Minerals Co. ................................... 419 6,442
Dana Corp. ................................................. 468 22,230
Darden Restaurants, Inc. ................................... 686 8,575
Data General Corp. ......................................... 214 3,731
Dayton Hudson Corp. ........................................ 975 65,812
Deere & Co. ................................................ 1,130 65,893
Dell Computer Corp. ........................................ 1,463 122,892
Delta Air Lines, Inc. ...................................... 329 39,151
Deluxe Corp. ............................................... 369 12,730
Digital Equipment Corp. .................................... 663 24,531
Dillard's Inc. ............................................. 501 17,660
Disney (Walt) Co. .......................................... 3,025 299,664
Dominion Resources, Inc. ................................... 833 35,454
Donnelley (R.R.) & Sons Co. ................................ 656 24,436
Dover Corp. ................................................ 996 35,980
Dow Chemical Co. ........................................... 1,022 103,733
Dow Jones & Co., Inc. ...................................... 430 23,085
Dresser Industries, Inc. ................................... 785 32,920
DSC Communications Corp. ................................... 526 12,624
DTE Energy Co. ............................................. 650 22,546
Du Pont (E.I.) De Nemours & Co. ............................ 5,067 304,336
Duke Energy Corp. .......................................... 1,613 89,319
Dun & Bradstreet Corp. ..................................... 764 23,636
Eastern Enterprises ........................................ 91 4,095
Eastman Chemical Co. ....................................... 351 20,906
Eastman Kodak Co. .......................................... 1,460 88,786
Eaton Corp. ................................................ 346 30,880
Echlin, Inc. ............................................... 283 10,241
Echo Bay Mines, Ltd. ....................................... 625 1,523
Ecolab, Inc. ............................................... 290 16,076
Edison International ....................................... 1,710 46,490
EG&G, Inc. ................................................. 205 4,266
EMC Corp. .................................................. 2,212 60,691
Emerson Electric Co. ....................................... 1,987 112,141
Engelhard Corp. ............................................ 647 11,241
Enron Corp. ................................................ 1,426 59,268
Entergy Corp. .............................................. 1,081 32,362
Equifax, Inc. .............................................. 676 23,955
Exxon Corp. ................................................ 11,055 676,427
Fannie Mae ................................................. 4,754 271,275
Federal Express Corp. ...................................... 515 31,447
Federated Department Stores, Inc. .......................... 937 40,349
Fifth Third Bancorp ........................................ 691 56,489
First Chicago NBD Corp. .................................... 1,304 108,884
First Data Corp. ........................................... 1,919 56,130
First Union Corp. .......................................... 2,816 144,320
FirstEnergy Corp. .......................................... 984 28,536
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Fleet Financial Group, Inc. ................................ 1,120 $ 83,930
Fleetwood Enterprises, Inc. ............................... 161 6,832
Fluor Corp. ................................................ 376 14,053
FMC Corp. .................................................. 167 11,241
Ford Motor Co. ............................................. 5,380 261,938
Fort James Corp. of Virginia ............................... 936 35,802
Fortune Brands, Inc. ....................................... 768 28,464
Foster Wheeler Corp. ....................................... 182 4,925
FPL Group, Inc. ............................................ 816 48,297
Freddie Mac ................................................ 3,114 130,593
Freeport-McMoran Copper & Gold, Inc. Cl B .................. 891 14,033
Frontier Corp. ............................................. 736 17,710
Fruit of the Loom, Inc. .................................... 328 8,405
Gannett, Inc. .............................................. 1,270 78,501
Gap, Inc. .................................................. 1,802 63,840
General Dynamics Corp. ..................................... 280 24,202
General Electric Co. ....................................... 14,679 1,076,565
General Mills, Inc. ........................................ 717 51,355
General Motors Corp. ....................................... 3,171 192,241
General Re Corp. ........................................... 357 75,684
General Signal Corp. ....................................... 226 9,534
Genuine Parts Co. .......................................... 807 27,387
Georgia-Pacific (Timber Group) ............................. 410 24,907
Giant Food, Inc. ........................................... 269 9,061
Gillette Co. ............................................... 2,508 251,897
Golden West Financial Corp. ................................ 254 24,844
Goodrich (B.F.) Co. ........................................ 242 10,027
Goodyear Tire & Rubber Co. ................................. 699 44,473
GPU Inc. ................................................... 541 22,789
Grainger (W.W.), Inc. ...................................... 223 21,672
Great Atl. & Pac. Tea Co. .................................. 171 5,076
Great Lakes Chemical Corp. ................................. 268 12,026
Green Tree Financial Corp. ................................. 609 15,948
GTE Corp. .................................................. 4,285 223,891
Guidant Corp. .............................................. 664 41,334
Halliburton Co. ............................................ 1,174 60,974
Harcourt General, Inc. ..................................... 317 17,355
Harland (John H.) Co. ...................................... 139 2,919
Harnischfeger Industries, Inc. ............................. 221 7,804
Harrah's Entertainment, Inc. ............................... 452 8,531
Harris Corp. ............................................... 356 16,331
Hartford Financial Svs Grp, Inc. ........................... 529 49,494
Hasbro, Inc. ............................................... 569 17,923
HBO & Co. .................................................. 887 42,576
HealthSouth Corp. .......................................... 1,765 48,978
Heinz (H.J.) Co. ........................................... 1,655 84,094
Helmerich & Payne, Inc. .................................... 112 7,602
Hercules, Inc. ............................................. 433 21,677
Hershey Foods Corp. ........................................ 640 39,640
Hewlett-Packard Co. ........................................ 4,661 291,312
Hilton Hotels Corp. ........................................ 1,120 33,320
Home Depot, Inc. ........................................... 3,271 192,580
Homestake Mining Co. ....................................... 658 5,839
Honeywell, Inc. ............................................ 571 39,113
Household International, Inc. .............................. 479 61,102
Houston Industries, Inc. ................................... 1,278 34,106
Humana, Inc. ............................................... 734 15,230
Huntington Bancshares, Inc. ................................ 813 29,268
Ikon Office Solutions, Inc. ................................ 595 16,734
Illinois Tool Works, Inc. .................................. 1,118 67,219
Inco Ltd. .................................................. 748 12,716
Ingersoll Rand Co. ......................................... 743 30,091
Inland Steel Industries, Inc. .............................. 219 3,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Intel Corp. ................................................ 7,334 $ 515,213
International Paper Co. .................................... 1,355 58,434
Interpublic Group of Cos., Inc. ............................ 558 27,795
Intl. Business Machines Corp. .............................. 4,358 455,683
Intl. Flavors & Fragrances.................................. 490 25,235
ITT Corp. .................................................. 522 43,260
ITT Industries, Inc. ....................................... 531 16,660
Jefferson-Pilot Corp. ...................................... 317 24,686
Johnson & Johnson .......................................... 6,029 397,160
Johnson Controls, Inc. ..................................... 375 17,906
Jostens, Inc. .............................................. 176 4,059
Kaufman & Broad Home Corp. ................................. 174 3,904
Kellogg Co. ................................................ 1,849 91,756
Kerr-McGee Corp. ........................................... 214 13,548
KeyCorp .................................................... 973 68,900
Kimberly Clark Corp. ....................................... 2,454 121,012
King World Productions, Inc. ............................... 165 9,528
KLA Tencor Corporation ..................................... 375 14,484
Kmart Corp. ................................................ 2,182 25,229
Knight-Ridder, Inc. ........................................ 379 19,708
Kroger Corp. ............................................... 1,140 42,108
Laidlaw, Inc. .............................................. 1,473 20,069
Lilly (Eli) & Co. .......................................... 4,973 346,245
Limited (The), Inc. ........................................ 1,217 31,033
Lincoln National Corp. ..................................... 457 35,703
Liz Claiborne, Inc. ........................................ 300 12,543
Lockheed Martin Corp. ...................................... 869 85,596
Loews Corp. ................................................ 515 54,654
Longs Drug Stores, Inc. .................................... 176 5,654
Louisiana-Pacific Corp. .................................... 490 9,310
Lowe's Companies, Inc. ..................................... 779 37,148
LSI Logic Corp. ............................................ 636 12,561
Lucent Technologies, Inc. .................................. 2,875 229,640
Mallinckrodt, Inc. ......................................... 329 12,502
Manor Care, Inc. ........................................... 285 9,975
Marriott International, Inc. ............................... 570 39,472
Marsh & McLennan Cos., Inc. ................................ 755 56,294
Masco Corp. ................................................ 739 37,596
Mattel, Inc. ............................................... 1,302 48,499
May Department Stores Co. .................................. 1,042 54,900
Maytag Corp. ............................................... 426 15,895
MBIA Inc. .................................................. 400 26,725
MBNA Corp. ................................................. 2,245 61,316
McDermott International Inc. ............................... 249 9,119
McDonald's Corp. ........................................... 3,083 147,213
McGraw-Hill Cos., Inc. ..................................... 443 32,782
MCI Communications Corp. ................................... 3,122 133,660
Mead Corp. ................................................. 468 13,104
Medtronic, Inc. ............................................ 2,095 109,594
Mellon Bank Corp. .......................................... 1,141 69,173
Mercantile Stores, Inc. .................................... 165 10,044
Merck & Co., Inc. .......................................... 5,372 570,775
Meredith Corp. ............................................. 240 8,565
Merrill Lynch & Co., Inc. .................................. 1,485 108,312
MGIC Investment Corp. ...................................... 511 33,981
Micron Technology, Inc. .................................... 944 24,544
Microsoft Corp. ............................................ 5,410 699,242
Millipore Corp. ............................................ 195 6,617
Minnesota Mining & Mfg. Co. ................................ 1,832 150,338
Mirage Resorts, Inc. ....................................... 801 18,222
Mobil Corp. ................................................ 3,522 254,244
Monsanto Co. ............................................... 2,658 111,636
Moore Corp., Ltd. .......................................... 398 6,019
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Morgan (J.P.) & Co., Inc. .................................. 802 $ 90,525
Morgan Stanley Dean Witter Discover and Co. ................ 2,656 157,036
Morton International, Inc. ................................. 628 21,587
Motorola, Inc. ............................................ 2,668 152,242
NACCO Industries, Inc. Cl A................................. 37 3,965
Nalco Chemical Co. ......................................... 299 11,829
National City Corp. ........................................ 964 63,383
National Semiconductor Corp. ............................... 751 19,479
National Service Industries................................. 202 10,011
NationsBank Corp. .......................................... 3,190 193,991
Navistar International Corp. ............................... 327 8,113
New York Times Co. Cl A..................................... 430 28,433
Newell Co. ................................................. 713 30,302
Newmont Mining Corp. ....................................... 700 20,562
NextLevel Systems, Inc. .................................... 660 11,797
Niagara Mohawk Power Corp. ................................. 647 6,793
Nicor, Inc. ................................................ 218 9,196
Nike, Inc. Cl B............................................. 1,294 50,789
Nordstrom, Inc. ............................................ 346 20,889
Norfolk Southern Corp. ..................................... 1,689 52,042
Northern States Power Co. .................................. 311 18,115
Northern Telecom, Ltd. ..................................... 1,175 104,575
Northrop Grumman Corp. ..................................... 299 34,385
Norwest Corp. .............................................. 3,386 130,784
Novell, Inc. ............................................... 1,564 11,730
Nucor Corp. ................................................ 394 19,035
Occidental Petroleum Corp. ................................. 1,519 44,525
Omnicom Group, Inc. ........................................ 726 30,764
Oneok, Inc. ................................................ 139 5,612
Oracle Corp. ............................................... 4,391 97,974
Oryx Energy Co. ............................................ 472 12,036
Owens Corning .............................................. 239 8,155
Owens Illinois.............................................. 629 23,862
Paccar, Inc. ............................................... 349 18,322
Pacific Enterprises......................................... 373 14,034
PacifiCorp. ................................................ 1,327 36,243
Pall Corp. ................................................. 570 11,791
Parametric Technology Co. .................................. 571 27,051
Parker Hannifin Corp. ...................................... 500 22,937
Peco Energy Co. ............................................ 997 24,177
Penney (J.C.) Co., Inc. .................................... 1,115 67,248
Pennzoil Co. ............................................... 215 14,364
Peoples Energy Corp. ....................................... 157 6,181
Pep Boys-Manny, Moe & Jack.................................. 283 6,756
Pepsico, Inc. .............................................. 6,801 247,811
Perkin-Elmer Corp. ......................................... 196 13,928
Pfizer, Inc. ............................................... 5,792 431,866
PG & E Corp. ............................................... 1,965 59,809
Pharmacia & Upjohn, Inc. ................................... 2,275 83,321
Phelps Dodge Corp. ......................................... 271 16,869
Philip Morris Cos., Inc. ................................... 10,857 491,957
Phillips Petroleum Co. ..................................... 1,180 57,377
Pioneer Hi-Bred Intl., Inc. ................................ 268 28,743
Pitney Bowes, Inc. ......................................... 647 58,189
Placer Dome, Inc. .......................................... 1,073 13,613
PNC Bank Corp. ............................................. 1,376 78,518
Polaroid Corp. ............................................. 204 9,932
Potlatch Corp. ............................................. 130 5,590
PP&L Resources, Inc. ....................................... 740 17,713
PPG Industries, Inc. ....................................... 803 45,871
Praxair, Inc. .............................................. 708 31,860
Proctor & Gamble Co. ....................................... 6,025 480,870
Progressive Corp. of Ohio................................... 323 38,719
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Providian Financial Corp. .................................. 420 $ 18,978
Public Svc. Enterprise Group, Inc. ......................... 1,039 32,923
Pulte Corp. ................................................ 95 3,972
Quaker Oats Co. ............................................ 616 32,494
Ralston Purina Co. ......................................... 477 44,331
Raychem Corp. .............................................. 390 16,794
Raytheon Co. ............................................... 208 10,286
Raytheon Co. ............................................... 1,559 78,729
Reebok International Ltd. .................................. 252 7,260
Republic New York Corp. .................................... 246 28,090
Reynolds Metals Co. ........................................ 330 19,800
Rite-Aid Corp. ............................................. 551 32,336
Rockwell Intl., Corp. ...................................... 936 48,906
Rohm & Haas Co. ............................................ 276 26,427
Rowan Cos., Inc. ........................................... 388 11,834
Royal Dutch Petro Co.--NY Shr............................... 9,609 520,687
Rubbermaid, Inc. ........................................... 672 16,800
Russell Corp. .............................................. 163 4,329
Ryder System, Inc. ......................................... 348 11,397
Safeco Corp. ............................................... 633 30,858
Safety-Kleen Corp. ......................................... 261 7,161
Sara Lee Corp. ............................................. 2,152 121,184
SBC Communications, Inc. ................................... 4,109 300,984
Schering-Plough Corp. ...................................... 3,283 203,956
Schlumberger, Ltd. ......................................... 2,218 178,549
Scientific-Atlanta, Inc. ................................... 347 5,812
Seagate Technology, Inc. ................................... 1,096 21,098
Seagram, Ltd. .............................................. 1,598 51,635
Sears Roebuck & Co. ........................................ 1,755 79,413
Service Corp. International ................................ 1,127 41,628
Shared Medical Systems Corp. ............................... 112 7,392
Sherwin-Williams Co. ....................................... 774 21,478
Sigma-Aldrich Corp. ........................................ 449 17,847
Silicon Graphics, Inc. ..................................... 839 10,435
Snap-On, Inc. .............................................. 274 11,953
Sonat, Inc. ................................................ 384 17,568
Southern Co. ............................................... 3,094 80,057
Southwest Airlines Co. ..................................... 981 24,157
Springs Industries, Inc. Cl A............................... 90 4,680
Sprint Corp. ............................................... 1,929 113,087
St. Jude Medical, Inc. ..................................... 411 12,535
St. Paul Companies (The).................................... 376 30,855
Stanley Works .............................................. 399 18,827
State Street Corp .......................................... 720 41,895
Stone Container Corp. ...................................... 445 4,644
Sun America, Inc. .......................................... 874 37,363
Sun Co., Inc. .............................................. 325 13,670
Sun Microsystems, Inc. ..................................... 1,679 66,950
Suntrust Banks, Inc. ....................................... 945 67,449
Supervalu, Inc. ............................................ 272 11,390
Synovus Financial Corp. .................................... 800 26,200
Sysco Corp. ................................................ 767 34,946
Tandy Corp. ................................................ 474 18,278
Tektronix, Inc. ............................................ 225 8,929
Tele-Communications Inc.--Cl A.............................. 2,269 63,390
Tellabs, Inc. .............................................. 811 42,881
Temple-Inland, Inc. ........................................ 255 13,339
Tenet Healthcare Corp. ..................................... 1,357 44,950
Tenneco, Inc. .............................................. 763 30,138
Texaco, Inc. ............................................... 2,457 133,599
Texas Instruments, Inc. .................................... 1,750 78,750
Texas Utilities Co. ........................................ 1,105 45,926
Textron, Inc. .............................................. 739 46,187
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
INDEXED ASSETS (CONTINUED):
<S> <C> <C>
Common Stocks (Continued)
Thermo Electron Corp. ...................................... 673 $ 29,948
Thomas & Betts Corp. ....................................... 246 11,623
Time Warner, Inc. .......................................... 2,509 155,558
Times Mirror Co. Cl A....................................... 429 26,383
Timken Co. ................................................. 282 9,693
TJX Cos., Inc. ............................................. 732 25,162
Torchmark Corp. ............................................ 620 26,078
Toys R Us, Inc. ............................................ 1,278 40,177
Transamerica Corp. ......................................... 284 30,246
Travelers Group, Inc. ...................................... 5,141 276,971
Tribune Co. ................................................ 550 34,237
Tricon Global Restaurants, Inc. ............................ 685 19,907
TRW, Inc. .................................................. 552 29,463
Tupperware Corp. ........................................... 274 7,637
Tyco International Ltd. .................................... 2,388 107,609
U.S. Bancorp ............................................... 1,097 122,795
U.S. Surgical Corp. ........................................ 329 9,643
U.S. West Media Group ...................................... 2,717 78,453
U.S. West Communications Group ............................. 2,166 97,740
Unicom Corp. ............................................... 969 29,796
Unilever N.V. .............................................. 2,868 179,070
Union Camp Corp. ........................................... 311 16,696
Union Carbide Corp. ........................................ 557 23,916
Union Electric Co. ......................................... 458 19,808
Union Pacific Corp. ........................................ 1,107 69,118
Union Pacific Resources Grp., Inc. ......................... 1,137 27,572
Unisys Corp. ............................................... 783 10,864
United Healthcare Corp. .................................... 840 41,737
United Technologies Corp. .................................. 1,044 76,016
Unocal Corp. ............................................... 1,107 42,965
UNUM Corp. ................................................. 625 33,984
US Airways Group Inc. ...................................... 452 28,250
USF&G Corp. ................................................ 497 10,965
UST, Inc. .................................................. 824 30,436
USX-Marathon Group ......................................... 1,291 43,571
USX-U.S. Steel Group, Inc. ................................. 384 12,000
V F Corp. .................................................. 829 38,082
Viacom, Inc. ............................................... 1,581 65,512
W.R. Grace & Co. ........................................... 333 26,785
Wachovia Corp. ............................................. 915 74,229
Wal-Mart Stores, Inc. ...................................... 10,102 398,397
Walgreen Co. ............................................... 2,206 69,213
Warner-Lambert Co. ......................................... 1,216 150,784
Washington Mutual, Inc. .................................... 1,154 73,639
Waste Management Inc. ...................................... 2,032 55,880
Wells Fargo & Co. .......................................... 394 133,738
Wendy's International, Inc. ................................ 590 14,196
Western Atlas, Inc. ........................................ 242 17,908
Westvaco Corp. ............................................. 457 14,366
Weyerhaeuser Co. ........................................... 894 43,861
Whirlpool Corp. ............................................ 334 18,370
Whitman Corp. .............................................. 455 11,858
Willamette Industries, Inc. ................................ 498 16,029
Williams Cos., Inc. ........................................ 1,424 40,406
Winn-Dixie Stores, Inc. .................................... 667 29,139
Woolworth Corp. ............................................ 605 12,326
WorldCom, Inc. ............................................. 4,042 122,270
Worthington Industries, Inc. ............................... 433 7,144
Wrigley (Wm.) Jr. Co. ...................................... 521 41,452
Xerox Corp. ................................................ 1,457 107,663
-----------
Total Indexed Assets--Common Stocks (Cost: $23,282,051) 60.3%....... 33,887,787
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- ----------
<S> <C> <C> <C> <C>
INDEXED ASSETS (CONTINUED):
Short-Term Debt Securities
U.S. Government (.1%)
U.S. Treasury Bill......................... 4.97% 3/12/98 $ 20,000 $ 19,796
U.S. Treasury Bill......................... 5.14 1/22/98 40,000 39,879
----------
59,675
----------
Commercial Paper (1.5%)
Duke Power Co.............................. 6.72 1/2/98 829,000 828,845
----------
Total Short-Term Debt Securities (Cost: $888,529) 1.6%............. 888,520
----------
Total Indexed Assets--Common Stocks & Short-Term Debt Securities
(Cost: $24,170,580) 61.9%......................................... 34,776,307
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE ASSETS:
Common Stocks
Basic Materials (1.3%)
Atchison Casting Corp.*..................................... 4,000 $ 65,000
DEKALB Genetics Corp. Cl B.................................. 2,200 86,350
Essex International Inc.*................................... 700 20,825
Lone Star Technologies, Inc.*............................... 6,600 187,275
Morton International, Inc. ................................. 3,900 134,062
Oregon Steel Mills, Inc. ................................... 5,500 117,218
Praxair, Inc. .............................................. 2,700 121,500
-----------
732,230
-----------
Consumer, Cyclical (9.2%)
American Greetings Corp. Cl A............................... 4,500 176,062
Avis Rent A Car, Inc.*...................................... 3,200 102,200
Bed Bath & Beyond, Inc.*.................................... 2,500 96,250
Borg-Warner Automotive, Inc. ............................... 1,600 83,200
Brylane, Inc.* ............................................. 2,100 103,425
Callaway Golf Co. .......................................... 7,300 208,506
Central Garden & Pet Co.* .................................. 3,000 78,750
Cinar Films, Inc. Cl B*..................................... 2,000 77,750
CKE Restaurants, Inc. ...................................... 1,400 58,975
Coach USA, Inc.*............................................ 2,990 100,165
Consolidation Capital Corp.*................................ 1,400 28,437
Dan River, Inc.* ........................................... 3,700 60,818
Dress Barn, Inc.* .......................................... 2,200 62,425
Earthgrains Co. ............................................ 1,900 89,300
Fairfield Communities, Inc.*................................ 3,850 170,362
Family Golf Centers, Inc.*.................................. 1,900 59,612
Finlay Enterprises, Inc.*................................... 6,700 152,425
Flowers Industries, Inc. ................................... 1,400 28,787
Fred Meyer, Inc.*........................................... 2,000 72,750
Gannett, Inc. .............................................. 2,400 148,350
General Motors Corp......................................... 1,700 103,062
Golden Bear Golf, Inc.*..................................... 5,300 42,400
Interstate Bakeries Corp. .................................. 1,200 44,850
Jacor Communications, Inc.*................................. 1,300 69,062
Linens 'n Things, Inc.*..................................... 800 34,900
Masco Corp.................................................. 3,000 152,625
May Department Stores Co.................................... 2,400 126,450
Michaels Stores, Inc.* ..................................... 2,800 81,900
Midwest Express Holdings, Inc.* ............................ 5,000 194,062
Nautica Enterprises, Inc.* ................................. 1,000 23,250
Outdoor Systems, Inc.* ..................................... 2,900 111,650
Pillowtex Corp. ............................................ 900 31,387
Polo Ralph Lauren Corp.*.................................... 1,000 24,312
Ryanair Holdings PLC--ADR*.................................. 4,600 115,575
Ryder System, Inc. ......................................... 3,500 114,625
St. John Knits, Inc......................................... 10,800 432,000
Stage Stores, Inc.* ........................................ 1,400 52,325
Suiza Foods Corp.* ......................................... 5,590 332,954
Sunbeam, Corp............................................... 2,200 92,675
The Men's Wearhouse, Inc.*.................................. 1,600 55,600
Tiffany & Co. .............................................. 3,500 126,218
Tower Automotive, Inc.*..................................... 5,800 243,962
Universal Foods Corp. ...................................... 4,500 190,125
Universal Outdoor Holdings, Inc.* .......................... 1,400 72,800
Wendy's International, Inc. ................................ 5,700 137,156
Xerox Corp.................................................. 2,500 184,531
-----------
5,149,005
-----------
Consumer, Non-Cyclical (3.2%)
Advanced Lighting Techs., Inc.*............................. 3,400 64,600
American Home Products Corp................................. 1,700 130,050
American Stores Co.......................................... 7,700 158,331
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE ASSETS (CONTINUED):
Common Stocks (Continued)
Consumer, Non-Cyclical (Continued)
AmeriSource Health Corp--Cl A*.............................. 900 $ 52,425
Bergen Brunswig............................................. 2,800 117,950
BioChem Pharma, Inc.* ...................................... 1,000 20,875
Biomet, Inc................................................. 2,400 61,500
Dura Pharmaceuticals, Inc.*................................. 1,000 45,875
Elan Corp Plc*.............................................. 500 25,593
ESC Medical Systems Ltd.* .................................. 2,200 85,250
Express Scripts, Inc--Cl A*................................. 1,400 84,000
I-STAT Corporation*......................................... 3,500 55,343
IDEC Pharmaceuticals Corp.*................................. 1,600 55,000
JP Foodservice, Inc.* ...................................... 1,500 55,406
Keystone Automotive Inds*................................... 1,400 33,250
Lincare Holdings, Inc.* .................................... 1,600 91,200
Medimmune, Inc.* ........................................... 800 34,300
Mentor Corp................................................. 2,000 73,000
Omnicare, Inc............................................... 1,800 55,800
Pediatrix Medical Group, Inc.*.............................. 1,200 51,300
Phillip Morris Cos., Inc.................................... 4,500 203,906
Safeskin Corp.*............................................. 700 39,725
Warnaco Group, Inc. Cl A.................................... 5,000 156,875
Whole Foods Market, Inc.*................................... 1,200 61,350
-----------
1,812,904
-----------
Energy (3.1%)
Elf Aquitaine--ADR.......................................... 3,300 193,462
EVI, Inc.*.................................................. 1,000 51,750
Global Industries Ltd.*..................................... 2,200 37,400
Kerr-McGee Corp. ........................................... 2,800 177,275
Mobil Corp.................................................. 1,700 122,718
Newpark Resources Inc.* .................................... 9,800 171,500
Oceaneering Int'l, Inc.* ................................... 10,400 205,400
Precision Drilling Corp.* .................................. 8,600 209,625
St. Mary Land Exploration Co. .............................. 3,500 122,500
Texaco, Inc................................................. 2,000 108,750
Union Pacific Resources Grp., Inc. ......................... 7,500 181,875
Varco International, Inc.*.................................. 2,840 60,882
Veritas DGC, Inc.*.......................................... 2,800 110,600
-----------
1,753,737
-----------
Financial (6.2%)
Ahmanson (H.F.) & Co........................................ 2,500 167,343
American Int'l. Group, Inc.................................. 2,550 277,312
Aon Corp. .................................................. 2,100 123,112
Associated Banc-Corp........................................ 500 27,562
Beneficial Corp............................................. 1,200 99,750
Checkfree Holdings Corp.* .................................. 4,900 132,300
Citicorp.................................................... 3,200 404,600
CMAC Investment Corporation................................. 2,100 126,787
Enhance Financial Svcs Group................................ 2,000 119,000
Executive Risk, Inc.* ...................................... 1,700 118,681
First Union Corp. .......................................... 4,000 205,000
Fleet Financial Group, Inc. ................................ 1,900 142,381
INMC Mortgage Holdings, Inc. ............................... 4,200 98,437
Keystone Financial, Inc..................................... 5,300 213,325
Loews Corp. ................................................ 1,200 127,350
National Golf Properties, Inc. ............................. 3,100 101,718
NationsBank Corp............................................ 4,400 267,575
Oriental Financial Group.................................... 5,000 147,812
Patriot American Hospitality................................ 2,112 60,852
Providian Financial Corp. .................................. 2,700 122,006
The Money Store, Inc. ...................................... 2,750 57,750
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ ------------
<S> <C> <C>
ACTIVE ASSETS (CONTINUED):
Common Stocks (Continued)
Financial (Continued)
U.S. Bancorp............................................... 2,000 $ 223,875
Vesta Insurance Group, Inc................................. 1,900 112,812
------------
3,477,340
------------
Industrial (3.9%)
AGCO Corp.................................................. 9,000 263,250
American Disposal Serv., Inc.*............................. 1,100 40,150
Applied Materials, Inc.*................................... 10,400 313,300
Aviall, Inc.*.............................................. 4,300 64,231
Burlington Northern Santa Fe Corp. ........................ 1,400 130,112
Cambridge Tech. Partners, Inc.*............................ 800 33,300
Chart Industries, Inc...................................... 4,300 98,093
Expeditors Int'l Wash., Inc................................ 800 30,800
First Data Corp............................................ 5,000 146,250
Foster Wheeler Corp........................................ 2,900 78,481
Hardinge, Inc.............................................. 5,900 219,775
Hooper Holmes, Inc......................................... 5,400 78,637
Hvide Marine, Inc.*........................................ 1,100 28,325
Keane, Inc.*............................................... 780 31,687
Knightsbridge Tankers Ltd.................................. 3,000 84,937
Knoll, Inc.*............................................... 1,100 35,337
QuickResponse Services, Inc.*.............................. 2,400 88,800
Union Pacific Corp......................................... 3,100 193,556
USA Waste Services, Inc.*.................................. 2,597 101,932
York International Corp.................................... 3,100 122,643
------------
2,183,596
------------
Technology (9.7%)
3Com Corp.*................................................ 11,700 408,768
Advanced Fibre Communication*.............................. 2,300 66,987
America Online, Inc.*...................................... 700 62,431
Atmel Corp.*............................................... 11,900 220,893
Ballard Medical Products................................... 4,000 97,000
Boeing Co.................................................. 2,400 117,450
Boston Technology Inc*..................................... 5,500 138,187
CBT Group PLC*............................................. 1,900 156,037
CIENA Corp.*............................................... 1,100 67,237
Cisco Systems, Inc.*....................................... 13,050 727,537
Citrix Systems, Inc.*...................................... 700 53,200
Compaq Computer Corp.*..................................... 9,200 519,225
Cytyc Corporation*......................................... 3,500 87,062
INCYTE Pharmaceuticals, Inc.*.............................. 2,800 126,000
Intel Corp................................................. 7,800 547,950
Intl. Business Machines Corp............................... 1,800 188,212
Linear Technology Corp..................................... 6,100 351,512
Maxim Integrated Products, Inc*............................ 7,600 262,200
Parametric Technology Co.*................................. 4,900 232,137
Raytheon Co.-Cl B.......................................... 3,800 191,900
Raytheon Co.-Cl A*......................................... 108 5,352
Sun Microsystems, Inc.*.................................... 10,200 406,725
Technology Solutions Company*.............................. 2,115 55,783
Tellabs, Inc.*............................................. 1,100 58,162
Transaction Network Services, Inc.*........................ 1,700 29,325
Xilinx, Inc.*.............................................. 7,500 262,968
------------
5,440,240
------------
Utilities (1.0%)
Duke Energy Corp........................................... 2,700 149,512
Edison International....................................... 2,600 70,687
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<S> <C> <C>
ACTIVE ASSETS (CONTINUED):
Common Stocks (Continued)
Utilities (Continued)
MCI Communications Corp..................................... 4,500 $ 192,690
SBC Communications, Inc..................................... 2,100 153,825
-----------
566,714
-----------
Total Active Portion--Common Stocks (Cost: $17,457,664) 37.6%....... 21,115,766
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- -------- -----------
<S> <C> <C> <C> <C>
Short-Term Debt Securities
U.S. Government (**)
U.S. Treasury Bill........................ 5.20% 2/26/98 $ 10,000 $ 9,919
-----------
Commercial Paper (0.5%)
Duke Power Co............................. 6.72 1/2/98 207,000 206,962
ReliaStar Mortgage Corp................... 6.00 1/5/98 100,000 99,933
-----------
306,895
-----------
Total Short-Term Debt Securities (Cost: $316,814) 0.5%............ 316,814
-----------
Total Active Securities (Cost: $17,774,478) 38.1%................. 21,432,580
-----------
Total Investments (Cost: $41,945,058) 100.0%...................... $56,208,887
===========
</TABLE>
- -------
* Non-income producing security.
** Less than .1%.
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1997:
<TABLE>
<CAPTION>
UNDERLYING FACE UNREALIZED
EXPIRATION DATE AMOUNT AT VALUE (LOSS)
--------------- ---------------- ----------
<S> <C> <C> <C>
Purchased
4 SP 500 Stock Index Futures
Contracts........................ March 1998 $979,100 $(200)
======== =====
</TABLE>
The face value of futures purchased and outstanding as percentage of total
investment in securities: 1.7%.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE
RATE MATURITY AMOUNT VALUE
---- -------- ---------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. Government (40.0%)
U.S. Treasury Bond...................... 7.13% 2/15/23 $1,750,000 $ 1,997,730
U.S. Treasury Note...................... 6.38 3/31/01 2,000,000 2,037,500
U.S. Treasury Note...................... 6.50 5/15/05 4,000,000 4,170,000
U.S. Treasury Note...................... 6.63 4/30/02 500,000 516,405
-----------
8,721,635
-----------
Agencies/Other (35.8%)
Federal Home Loan Bank.................. 0.00 7/2/12 5,000,000 1,619,550
Federal Home Loan Bank.................. 0.00 8/18/17 5,000,000 1,081,250
FHLMC................................... 6.50 10/15/06 400,000 400,500
FHLMC................................... 8.00 7/15/06 380,116 396,624
FHLMC................................... 7.00 4/15/17 456,497 459,920
FHLMC................................... 7.50 5/15/18 241,388 242,896
FNMA.................................... 6.80 6/25/05 500,864 502,116
FNMA.................................... 7.75 10/25/18 468,836 471,911
FNMA.................................... 7.00 11/25/07 1,000,000 1,026,871
FNMA.................................... 7.00 11/25/05 600,000 608,808
Republic of Iceland..................... 6.13 2/1/04 1,000,000 998,130
-----------
7,808,576
-----------
Consumer, Cyclical (4.5%)
Fruit of the Loom, Inc.................. 7.38 11/15/23 250,000 237,535
Fruit of the Loom, Inc.................. 7.00 3/15/11 250,000 239,735
Woolworth Corp.......................... 7.00 10/15/02 500,000 509,995
-----------
987,265
-----------
Financial (11.7%)
Bear Stearns Cos., Inc.................. 6.63 10/1/04 1,000,000 1,003,240
Rank Group Financial PLC................ 6.75 11/30/04 500,000 500,525
Rodamco NV.............................. 7.30 5/15/05 1,000,000 1,040,550
-----------
2,544,315
-----------
Industrial (7.3%)
Clark Equipment Co...................... 8.35 5/15/23 500,000 584,455
Williams Cos., Inc...................... 6.50 11/15/02 1,000,000 1,004,450
1,588,905
-----------
Total Long-Term Debt Securities (Cost: $21,014,691) 99.3%......... 21,650,696
-----------
SHORT-TERM DEBT SECURITIES:
U.S. Government (*)
U.S. Treasury Bill...................... 4.87 2/5/98 10,000 9,952
-----------
Commercial Paper (0.7%)
CIT Group Holdings, Inc. ............... 5.80 1/7/98 147,000 146,858
-----------
Total Short-Term Debt Securities (Cost: $156,810) 0.7%............ 156,810
-----------
Total Investments (Cost: $21,171,501) 100.0% ..................... $21,807,506
===========
</TABLE>
- -------
* Less than .1%
Abbreviations:FHLMC = Federal Home Loan Bank
FNMA= Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DISCOUNT FACE AMORTIZED
RATING* RATE MATURITY AMOUNT COST
------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. Government (0.2%)
U.S. Treasury Bill.............. 5.00% 02/05/98 $ 15,000 $ 14,926
----------
14,926
----------
Commercial Paper (99.8%)
Abbott Laboratories............. A1+/P1 5.75 01/07/98 155,000 154,851
American Express Credit Corp. .. A1/P1 5.49 01/30/98 150,000 149,321
American Express Credit Corp. .. A1/P1 6.10 01/09/98 150,000 149,796
Anheuser Busch Cos., Inc........ A1+/P1 5.64 01/20/98 130,000 129,611
AT&T Credit Corp. .............. A1+/P1 5.52 01/02/98 167,000 166,974
Baltimore Gas & Electric Co..... A1/P1 5.95 01/13/98 151,000 150,700
Bell Atlantic Financial
Services, Inc. ................ A1/P1 5.80 01/05/98 190,000 189,877
Bellsouth Telecommunication
Corp. ......................... A1+/P1 5.73 01/13/98 100,000 99,808
Bellsouth Telecommunication
Corp. ......................... A1+/P1 5.75 02/05/98 100,000 99,440
Bemis Co........................ A1/P1 5.95 01/23/98 300,000 298,908
Central Illinois Light.......... A1/P1 5.91 01/15/98 148,000 147,659
CIT Group Holdings, Inc. ....... A1+/P1 5.80 01/07/98 230,000 229,777
Coca-Cola Co. .................. A1+/P1 5.56 01/09/98 220,000 219,726
Daimler Benz North Amer. Corp. . A1/P1 5.69 01/12/98 200,000 199,650
Disney (Walt) Enterprises Inc. . A1/P1 5.58 01/12/98 220,000 219,622
Duke Power Co................... A1+/P1 6.72 01/02/98 149,000 148,972
DuPont EI Nemour (Res).......... A1+/P1 5.66 02/23/98 300,000 297,497
Eaton Corp...................... A1/P1 5.95 02/09/98 300,000 298,064
Ford Motor Credit Co. .......... A1/P1 5.74 02/02/98 100,000 99,487
General Electric Capital Corp. . A1+/P1 5.50 01/05/98 150,000 149,906
General Electric Capital Corp. . A1+/P1 6.10 01/13/98 150,000 149,695
General Mills, Inc.............. A1/P1 6.69 01/05/98 100,000 99,926
GTE Funding Inc................. A1/P1 6.35 01/28/98 100,000 99,523
GTE Funding Inc................. A1/P1 5.98 01/22/98 200,000 199,299
Hewlett Packard Co. ............ A1+/P1 5.80 01/08/98 146,000 145,835
IBM Credit Corp................. A1/P1 5.59 01/06/98 220,000 219,828
International Lease Fin Corp. .. A1/P1 6.30 01/12/98 130,000 129,749
Interstate Power Corp........... A1/P1 5.83 01/23/98 230,000 229,178
Interstate Power Corp........... A1/P1 6.05 01/27/98 100,000 99,563
Kimberly-Clark Corp. ........... A1+/P1 6.20 01/13/98 300,000 299,379
Lucent Technology, Inc. ........ A1/P1 5.50 01/16/98 130,000 129,699
Merrill Lynch & Co. ............ A1+/P1 6.10 01/15/98 125,000 124,703
Merrill Lynch & Co. ............ A1+/P1 5.54 02/02/98 150,000 149,244
National Rural Utilities........ A1+/P1 5.72 02/05/98 102,000 101,431
Northern Illinois Gas Corp. .... A1+/P1 5.97 01/22/98 208,000 207,275
Novartis Finance Corp. ......... A1+/P1 5.79 01/08/98 200,000 199,774
PHH Corp. ...................... A1/P1 6.10 01/12/98 201,000 200,625
Pitney Bowes Credit Corp. ...... A1+/P1 6.00 01/14/98 180,000 179,609
Procter & Gamble Co............. A1+/P1 5.80 02/05/98 300,000 298,306
Toyota Motor Credit Corp........ A1+/P1 5.65 01/12/98 108,000 107,812
Toyota Motor Credit Corp........ A1+/P1 5.88 01/23/98 120,000 119,568
Wisconsin Electric Fuel......... A1+/P1 5.75 01/27/98 127,000 126,470
Xerox Credit Corp. ............. A1/P1 5.75 01/07/98 202,000 201,806
----------
7,417,943
----------
Total Short-Term Debt Securities (Cost: $7,432,869) 100%............ $7,432,869
==========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investor
Services, Inc.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
Assets:
Investments at market value (Notes 1 and
3)
(Cost:
All America Fund--$41,945,058
Bond Fund--$21,171,501
Money Market--$7,432,869)............. $56,208,887 $21,807,506 $7,432,869
Cash..................................... 319,628 17,848 507
Interest and dividends receivable........ 59,318 242,484 --
Shareholders subscriptions receivable.... 81,000 81,000 80,899
Receivable for securities sold........... 21,871 -- --
----------- ----------- ----------
Total Assets............................. 56,690,704 22,148,838 7,514,275
Payable for securities purchased......... 200 -- --
Dividend payable to shareholders......... 14,401 1,227 2,269
Accrued expenses......................... 2,940 622 310
----------- ----------- ----------
Net Assets............................... $56,673,163 $22,146,989 $7,511,696
=========== =========== ==========
Shares Outstanding (Note 4).............. 4,481,109 2,127,410 740,224
=========== =========== ==========
Net Asset Value Per Share................ $ 12.65 $ 10. 41 $ 10.15
=========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
---------------- ---------------- -----------------
FOR THE PERIOD
MAY 1, 1997
FOR THE YEAR FOR THE YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) TO
DECEMBER 31,1997 DECEMBER 31,1997 DECEMBER 31, 1997
---------------- ---------------- -----------------
<S> <C> <C> <C>
Investment Income: (Note
1)
Dividends............... $ 773,877 $ -- $ --
Interest................ 40,062 1,343,822 110,804
----------- ----------- --------
Total Investment Income... 813,939 1,343,822 110,804
----------- ----------- --------
Expenses: (Note 2)
Investment management
fees................... 291,620 94,370 3,930
Directors' (independent)
fees and expenses...... 22,369 22,369 15,323
Custodian expenses...... 44,624 1,945 1,909
Accounting expenses..... 26,600 26,600 12,000
Transfer agent fees..... 12,060 12,060 8,060
Legal................... 38,175 38,115 1,342
Audit................... 15,600 7,600 3,800
Printing and Other...... 38,915 8,290 2,650
----------- ----------- --------
Total Expenses before
reimbursement............ 489,963 211,349 49,014
Expense reimbursement..... (20,310) (64,153) (41,154)
----------- ----------- --------
Net Expenses.............. 469,653 147,196 7,860
----------- ----------- --------
Net Investment Income..... 344,286 1,196,626 102,944
----------- ----------- --------
Net Realized and
Unrealized Gain (Loss) on
Investments (Note 1):
Net realized gain (loss)
on investments:
Net proceeds from sale.. 34,036,469 11,097,306 --
Cost of securities sold. 28,780,474 10,871,749 --
----------- ----------- --------
Net realized gain (loss).. 5,255,995 225,557 --
Realized gain (loss) on
short-term securities.... (72) (904) (43)
----------- ----------- --------
Net realized gain (loss)
on investments........... 5,255,923 224,653 (43)
Net unrealized
appreciation
(depreciation) of
investments.............. 8,744,059 373,683 --
----------- ----------- --------
Net Realized and
Unrealized Gain (Loss) on
Investments.............. 13,999,982 598,336 (43)
----------- ----------- --------
Net Increase in Net Assets
Resulting from
Operations............... $14,344,268 $ 1,794,962 $102,901
=========== =========== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONEY MARKET
ALL AMERICA FUND BOND FUND FUND
----------------------------------- ------------------------------------ -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MAY 1, 1996 MAY 1, 1996 MAY 1, 1997
FOR THE YEAR (COMMENCEMENT FOR THE YEAR (COMMENCEMENT (COMMENCEMENT
ENDED OF OPERATIONS) TO ENDED OF OPERATIONS) TO OF OPERATIONS) TO
DECEMBER 31, 1997 DECEMBER 31, 1996 DECEMBER 31, 1997 DECEMBER 31, 1996 DECEMBER 31, 1997
----------------- ----------------- ----------------- ------------------ -----------------
<S> <C> <C> <C> <C> <C>
From Operations:
Net investment income. $ 344,286 $ 328,237 $ 1,196,626 $ 763,822 $ 102,944
Net realized gain
(loss) on
investments.......... 5,255,923 (447,954) 224,653 (8,766) (43)
Net unrealized
appreciation
(depreciation) of
investments.......... 8,744,059 5,519,770 373,683 262,322 --
------------ ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets Resulting
From Operations........ 14,344,268 5,400,053 1,794,962 1,017,378 102,901
------------ ----------- ----------- ----------- ----------
Dividend Distributions
(Note 5):
From net investment
income............... (342,956) (325,235) (1,195,133) (758,821) (102,362)
From capital gains.... (4,524,483) -- (25,567) -- --
------------ ----------- ----------- ----------- ----------
Total Distributions..... (4,867,439) (325,235) (1,220,700) (758,821) (102,362)
------------ ----------- ----------- ----------- ----------
Capital Share
Transactions (Note 4):
Net proceeds from sale
of shares............ 2,120,648 50,137,638 1,388,091 20,123,533 7,907,064
Dividend
reinvestments........ 4,852,995 325,235 1,219,471 758,821 100,093
Cost of shares
redeemed............. (15,290,000) (25,000) (2,051,357) (124,389) (496,000)
------------ ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... (8,316,357) 50,437,873 556,205 20,757,965 7,511,157
------------ ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets.......... 1,160,472 55,512,691 1,130,467 21,016,522 7,511,696
Net Assets, Beginning of
Year/Period............ 55,512,691 -- 21,016,522 -- --
------------ ----------- ----------- ----------- ----------
Net Assets, End of
Year/Period............ $ 56,673,163 $55,512,691 $22,146,989 $21,016,522 $7,511,696
============ =========== =========== =========== ==========
Components of Net
Assets:
Paid-in capital....... $ 42,121,516 $50,437,873 $21,314,170 $20,757,965 $7,511,157
Accumulated
undistributed net
investment income.... 4,332 3,002 6,495 5,001 582
Accumulated
undistributed net
realized gain (loss)
on investments....... 283,486 (447,954) 190,319 (8,766) (43)
Unrealized
appreciation
(depreciation) of
investments.......... 14,263,829 5,519,770 636,005 262,322 --
------------ ----------- ----------- ----------- ----------
Net Assets, End of
Year/Period............ $ 56,673,163 $55,512,691 $22,146,989 $21,016,522 $7,511,696
============ =========== =========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET
ALL AMERICA FUND BOND FUND FUND
------------------------- ------------------------- ------------
FOR THE YEAR
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996(F) 1997 1996(F) 1997 (E)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.98 $10.00 $10.13 $10.01 $10.00
------ ------ ------ ------ ------
Income from investment
operations:
Net investment income. 0.08 0.06 0.59 0.38 0.35
Net gains or losses on
securities (realized
and unrealized)...... 2.77 0.98 0.29 0.12 --
------ ------ ------ ------ ------
Total from Investment
Operations............. 2.85 1.04 0.88 0.50 0.35
------ ------ ------ ------ ------
Less dividend
distributions:
From net investment
income............... (0.08) (0.06) (0.59) (0.38) (0.20)
From capital gains.... (1.10) -- (0.01) -- --
------ ------ ------ ------ ------
Total Distributions..... (1.18) (0.06) (0.60) (0.38) (0.20)
------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $12.65 $10.98 $10.41 $10.13 $10.15
====== ====== ====== ====== ======
Total return (%) (b).... 26.0 10.4 8.9 5.0 3.5
Net assets, end of
period ($ millions).... 56.7 55.5 22.1 21.0 7.5
Ratio of net investment
income to average net
assets (%) (a)......... 0.59 0.95 5.69 5.63 5.17
Ratio of expenses to
average net assets (%)
(a).................... 0.84 0.87 1.00 0.90 2.47
Ratio of expenses to
average net assets
after expense
reimbursement (%) (Note
2) (a)................. 0.81 0.85 0.70 0.70 0.40
Portfolio turnover rate
(%) (c)................ 35.96 9.33 56.18 17.85 N/A
Average commission rate
paid ($) (d)........... .0321 .0483 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.
N/A = Not Applicable.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT POLICIES AND ORGANIZATION
Mutual of America Institutional Funds, Inc. (the "Investment Company") was
incorporated on October 27, 1994 under the laws of Maryland and is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company (a mutual fund) currently issuing 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 Investment Company commenced operations on May 1, 1996, (the effective
date of its registration) although the Bond Fund was initially seeded with a
$100,000 cash investment on April 23, 1996 by its sponsor, Mutual of America
Capital Management Corporation. 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 on the principal exchange is
used. For any equity securities traded in the over-the-counter market
(OTC), the security is valued at the last sale price, or if no sale, at the
latest bid price available.
Short-term securities with a maturity of 60 days or less are valued at
amortized cost, which approximates market for such securities. Short-term
debt securities maturing in excess of 60 days are stated at market value.
Debt securities are valued at a composite fair market value "evaluated
bid," which may be the last sale price. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith by the Adviser under the direction of the Board of
Directors of the Investment Company.
Security Transactions--Security transactions are recorded on the trade date.
Interest income is accrued as earned. Dividend income is recorded on the ex-
dividend date. Dividend income from foreign corporations is reflected net of
imposed source tax withholding.
Realized gain and loss on the sale of short and long-term debt securities is
computed on the basis of amortized cost at the time of sale. Realized gain and
loss on the sale of common stock is based on the identified cost basis of the
security determined on a first-in, first-out ("FIFO") basis.
The All America Fund may purchase 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, equal to approximately 4% of the contract amount, 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 from futures transactions by
"marking-to-market"on a daily basis to reflect the market value of the
contract at the end of each trading day. 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 a 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 management
adviser of the Company.
23
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(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
with each fund. 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.
The All America Fund placed a portion of its portfolio transactions with an
affiliated broker-dealer of the Adviser. Total commissions paid to this
affiliate was $2,070 or 4% of total commissions for the year. In addition, a
Sub-Advisor placed a portion of its portfolio transactions with its affiliated
broker-dealer; such commissions amounted to $18,793 or 38% 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 year
ended December 31, 1997 was as follows:
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
Cost of investment purchases......... $19,937,009 $ 6,059,850 $ --
=========== =========== ==========
Proceeds from sales of investments... $34,036,469 $ 1,005,259 $ --
=========== =========== ==========
The cost of investment purchases and
proceeds from sales of U.S.
Government (excluding short-term)
securities was as follows:
Cost of investment purchases....... $ -- $ 6,088,142 $ --
=========== =========== ==========
Proceeds from sales of investments. $ -- $10,092,047 $ --
=========== =========== ==========
For the Money Market Fund, the cost of short-term securities purchases for
the year was $21,892,723. Net proceeds from sales and redemptions was
$14,570,617.
At December 31, 1997, the net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
Unrealized appreciation.............. $15,671,181 $ 636,278 $ --
Unrealized depreciation.............. 1,407,352 273 --
----------- ----------- ----------
Net unrealized appreciation
(depreciation)...................... $14,263,829 $ 636,005 $ --
=========== =========== ==========
Aggregate cost of investments for
Federal income tax purposes......... $41,945,058 $21,171,501 $7,432,869
=========== =========== ==========
</TABLE>
24
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
4. CAPITAL SHARE ACTIVITY AND OWNERSHIP
At December 31, 1997 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 year ending December 31, 1997 were as
follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
--------------------------------------------
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
-------------- ----------- ---------------
<S> <C> <C> <C>
Shares sold.......................... 156,660 136,473 778,779
Shares issued as reinvestment of
dividends (Note 5).................. 383,559 118,985 9,874
Shares redeemed...................... (1,116,180) (202,267) (48,429)
------------- ----------- ----------
Net increase (decrease).............. (575,961) 53,191 740,224
============= =========== ==========
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31, 1996
---------------------
ALL AMERICA BOND
FUND FUND
----------- ---------
<S> <C> <C>
Shares sold.............................................. 5,029,363 2,011,622
Shares issued as reinvestment of dividends (Note 5)...... 30,167 75,089
Shares redeemed.......................................... (2,461) (12,492)
--------- ---------
Net increase (decrease).................................. 5,057,069 2,074,219
========= =========
</TABLE>
As at December 31, 1997, 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.............................. 96%
Bond Fund..................................... 98%
Money Market fund............................. 14%
</TABLE>
In addition, one unaffiliated shareholder was owner of 54% of the Money
Market Fund's outstanding shares.
5. DIVIDENDS
On June 30, 1997 and September 15, 1997 dividend distributions were declared
and paid from accumulated net investment income to shareholders of record on
June 27, 1997, and September 14, 1997. On December 31, 1997, a dividend
distribution consisting of net investment income and capital gains was
declared and paid to shareholders of record on December 30, 1997. Pursuant to
shareholders' instructions, substantially all dividend distributions were
immediately reinvested in additional shares of each fund (see Note 4 above).
<TABLE>
<CAPTION>
ALL AMERICA BOND MONEY MARKET
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
Distributions from:
Net investment income................ $ 342,956 $ 1,195,133 $ 102,362
Net realized capital gains........... 4,524,483 25,567 --
----------- ----------- ---------
Total dividend distributions........... $ 4,867,439 $ 1,220,700 $ 102,362
=========== =========== =========
Dividend amounts per share............. $ 1.18 $ .60 $ .20
=========== =========== =========
</TABLE>
25
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders
of Mutual of America Institutional Funds, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments in securities, of Mutual of America
Institutional Funds, Inc. (a Maryland Corporation) comprising the All America,
Bond and Money Market Funds as of December 31, 1997, and the related statement
of operations for the year then ended and the statements of changes in net
assets for each period in the two years then ended, and the financial
highlights for each period in the two years then ended. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmations of securities
owned as of December 31, 1997 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the All America, Bond and Money Market Funds of Mutual of America
Institutional Funds, Inc. as of December 31, 1997, the results of their
operations for the year then ended and the changes in their net assets for
each period in the two years then ended and their financial highlights for
each period in the two years then ended in conformity with generally accepted
accounting principles.
/s/ Arthur Andersen LLP
New York, New York
February 20, 1998
26
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MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
Distributed by Mutual of America Securities Corporation
320 Park Avenue New York, NY 10022-6839 800 914-8716
