<PAGE>
Mutual of America
Institutional Funds, Inc.
ANNUAL REPORT
ALL AMERICA FUND
BOND FUND
MONEY MARKET FUND
DECEMBER 31, 1998
This report is not to be construed as an offering for sale. No offering is
made except in conjunction with a prospectus which must precede or accompany
this report.
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CONTENTS
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Page
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President's Message........................................................ 1
Performance Graphs......................................................... 2
Portfolio of Investments in Securities:
All America Fund......................................................... 4
Bond Fund................................................................ 12
Money Market Fund........................................................ 14
Statement of Assets and Liabilities........................................ 15
Statement of Operations.................................................... 16
Statements of Changes in Net Assets........................................ 17
Financial Highlights....................................................... 18
Notes to Financial Statements.............................................. 19
Report of Independent Public Accountants................................... 22
</TABLE>
<PAGE>
[MUTUAL OF AMERICA INSTITUTIONAL FUNDS LETTERHEAD APPEARS HERE]
Dear Shareholder:
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.
Economic expansion continued in 1998 in what is now the longest peacetime
expansion in history. The economic turmoil in Asia, Brazil and Russia caused a
flight to quality in the U.S. and the Federal Reserve responded by lowering the
interest rate three times.
The equity market remained strong in 1998 despite giving back some of its
monumental gains. Funds are still flowing into the stock market at a rapid pace
and continue to support high valuation levels.
The Bond market has come off its lows and Treasury Securities yields have
inched up. A spike up in interest rates unrelated to domestic cyclical factors
could prove harmful to the continued growth of the economy. The Federal Reserve
will be watching this.
The annual total return performance of each fund for the year ended December
31, 1998 was as follows:
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All America Fund...................................................... +21.0%
Bond Fund............................................................. +8.3%
Money Market Fund..................................................... +5.3%
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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 1999.
Sincerely,
[SIGNATURE OF DOLORES J. MORRISSEY APPEARS HERE]
Dolores J. Morrissey
Chairman of the Board and President,
Mutual of America Institutional Funds,
Inc.
1
<PAGE>
ALL AMERICA FUND
The All America Fund is approximately 60% invested in the 500 stocks
included in the Standard & Poor's 500 Index; the performance objective of this
portion of the Fund is to replicate the returns of the Index. The remaining
40% of the Fund is actively managed by three sub-advisors and Mutual of
America Capital Management Corporation. Approximately 20% of the Fund is
invested in small capitalization stocks. Small cap stocks significantly
underperformed larger caps in 1998, as investor preference for large size
companies with high earnings predictability continued throughout the year.
When investor preferences shift back to small cap stocks, this group's
performance should improve. The All America Fund returned 21.0% for 1998. The
Standard & Poor's 500 Index returned 28.6% for the year.
[PERFORMANCE GRAPH APPEARS HERE]
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
12/98 16,835 19,744
- ------------------------------------ -------------------------------------
All America Fund S&P 500 Index
---------------- -------------
Total Return Total Return
Period Growth --------------- Period Growth ---------------
Ended of Cumu- Annual Ended of Cumu- Annual
12/31/98 $10,000 lative Average 12/31/98 $10,000 lative Average
- ------------------------------------ ------------------------------------
1 Year $12,104 21.0% 21.0% 1 Year $12,857 28.6% 28.6%
Since Since
5/1/96 5/1/96
Inception* $16,835 68.4% 21.6% Inception* $19,744 97.4% 29.1%
- ------------------------------------ -------------------------------------
The line representing the performance return of the All America Fund
includes expenses, such as transaction costs, management fees and
expenses, that reduce returns, while the performance return line of
the index does not.
2
<PAGE>
MONEY MARKET FUND
The investment objective of the Money Market Fund is to realize high current
income to the extent consistent with the maintenance of liquidity, investment
quality and stability of capital. Through investing in high quality commercial
paper and other short-term instruments, the Money-Market Fund returned 5.3%
comparing favorably to the Salomon Brothers 3-Month Treasury Bill Index return
of 5.1%. The seven-day annualized effective yield as of 2/16/99 is 4.55%. As
with all past performance reportings, this yield is not necessarily indicative
of future actual yields.
BOND FUND
The Bond Fund seeks a high level of return consistent with preservation of
capital through investment in public debt securities. The fund typically
invests heavily in Corporate and Agency securities, which yield significantly
more than U.S. Treasury securities. In 1998, several events occurred which
caused a "flight to quality" into only the most liquid U.S. Treasury
securities, leading these securities to outperform all other debt asset
classes. Over the longer term, the higher yielding securities would be
expected to outperform U.S. Treasuries. The Bond Fund returned 8.3% for 1998
versus the Lehman Brothers Government/Corporate Bond Index of 9.5%.
[PERFORMANCE GRAPH APPEARS HERE]
Lehman Brothers
Bond Fund Gov't./Corp. Bond Index
--------- -----------------------
5/96 10,000 10,000
12/96 10,501 10,610
12/97 11,435 11,646
12/98 12,379 12,748
- ------------------------------------ -------------------------------------
Lehman Brothers
Bond Fund Gov't./Corp. Bond Index
--------- -----------------------
Total Return Total Return
Period Growth --------------- Period Growth ---------------
Ended of Cumu- Annual Ended of Cumu- Annual
12/31/98 $10,000 lative Average 12/31/98 $10,000 lative Average
- ------------------------------------ ------------------------------------
1 Year $10,826 8.3% 8.3% 1 Year $10,947 9.5% 9.5%
Since Since
5/1/96 5/1/96
Inception* $12,379 23.8% 8.3% Inception* $12,748 27.5% 9.5%
- ------------------------------------ -------------------------------------
The line representing the performance return of the Bond Fund includes
expenses, such as transaction costs, management fees and expenses, that
reduce returns, while the performance return line of the index does
not.
3
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1998
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
Shares Value
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INDEXED ASSETS:
Common Stocks
3Com Corp. ................................................... 1,512 $ 67,756
Abbott Laboratories........................................... 6,437 315,413
Adobe Systems, Inc. .......................................... 288 13,464
Advanced Micro Devices, Inc. ................................. 601 17,391
Aeroquip-Vickers, Inc. ....................................... 126 3,772
AES Corp. .................................................... 749 35,483
Aetna, Inc. .................................................. 606 47,646
Air Products & Chemicals, Inc. ............................... 962 38,480
AirTouch Communications, Inc. ................................ 2,426 174,975
Alberto-Culver Co. Cl B....................................... 251 6,698
Albertson's, Inc. ............................................ 1,035 65,916
Alcan Aluminum Ltd. .......................................... 968 26,196
Alcoa, Inc. .................................................. 776 57,860
Allegheny Teledyne, Inc. ..................................... 834 17,044
Allergan, Inc. ............................................... 274 17,741
AlliedSignal, Inc. ........................................... 2,362 104,666
Allstate Corp. ............................................... 3,460 133,642
Alltel Corp. ................................................. 1,157 69,203
Alza Corp. ................................................... 362 18,914
Amerada Hess Corp. ........................................... 384 19,104
Ameren Corp. ................................................. 583 24,886
American Electric Power, Inc. ................................ 812 38,214
American Express Co. ......................................... 1,917 196,013
American General Corp. ....................................... 1,063 82,914
American Greetings Corp. Cl A................................. 310 12,729
American Home Products Corp. ................................. 5,590 314,786
American Int'l. Group, Inc. .................................. 4,444 429,401
American Stores Co. .......................................... 1,164 42,995
Ameritech Corp. .............................................. 4,679 296,531
Amgen, Inc. .................................................. 1,073 112,195
Amoco Corp. .................................................. 4,049 244,458
AMP, Inc. .................................................... 928 48,314
AMR Corp. .................................................... 773 45,896
Anadarko Petroleum Corp. ..................................... 500 15,437
Andrew Corp. ................................................. 404 6,666
Anheuser-Busch Cos., Inc. .................................... 2,016 132,300
Aon Corp. .................................................... 707 39,150
Apache Corp. ................................................. 405 10,251
Apple Computer, Inc. ......................................... 559 22,884
Applied Materials, Inc. ...................................... 1,559 66,549
Archer-Daniels-Midland Co. ................................... 2,516 43,243
Armco, Inc. .................................................. 480 2,100
Armstrong World Inds., Inc. .................................. 166 10,011
Asarco, Inc. ................................................. 189 2,846
Ascend Communications, Inc. .................................. 915 60,161
Ashland, Inc. ................................................ 318 15,383
Associates First Capital Corp. Cl A........................... 3,048 129,159
AT&T Corp. ................................................... 7,647 575,436
Atlantic Richfield Co. ....................................... 1,355 88,413
Autodesk, Inc. ............................................... 193 8,238
Automatic Data Processing, Inc ............................... 1,274 102,158
AutoZone, Inc. ............................................... 649 21,376
Avery Dennison Corp. ......................................... 494 22,260
Avon Products, Inc. .......................................... 1,114 49,294
Baker Hughes, Inc. ........................................... 1,358 24,019
Ball Corp. ................................................... 135 6,176
Baltimore Gas & Electric Co. ................................. 635 19,605
Banc One Corp. ............................................... 4,967 253,627
Bank of New York Co., Inc. ................................... 3,208 129,122
Bankamerica Corp. ............................................ 7,325 440,415
BankBoston Corp. ............................................. 1,245 48,477
Bankers Trust New York Corp. ................................. 405 34,602
Bard (C.R.), Inc. ............................................ 235 11,632
Barrick Gold Corp. ........................................... 1,586 30,927
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ --------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Battle Mountain Gold Co. ..................................... 1,029 $ 4,244
Bausch & Lomb, Inc. .......................................... 233 13,980
Baxter International, Inc. ................................... 1,206 77,560
BB & T Corp. ................................................. 1,243 50,108
Bear Stearns Cos., Inc. ...................................... 479 17,902
Becton Dickinson & Co. ....................................... 1,049 44,779
Bell Atlantic Corp. .......................................... 6,584 348,952
BellSouth Corp. .............................................. 8,294 413,663
Bemis, Inc. .................................................. 238 9,029
Berkshire Hathaway Inc Cl A................................... 1 78,400
Bestfoods..................................................... 1,205 64,166
Bethlehem Steel Corp. ........................................ 505 4,229
Biomet, Inc. ................................................. 477 19,199
Black & Decker Corp. ......................................... 365 20,462
Block (H. & R.), Inc. ........................................ 418 18,810
BMC Software, Inc. ........................................... 914 40,730
Boeing Co. ................................................... 4,214 137,481
Boise Cascade Corp. .......................................... 249 7,719
Boston Scientific Corp. ...................................... 1,666 44,669
Briggs & Stratton Corp. ...................................... 97 4,837
Bristol-Myers Squibb Co. ..................................... 4,206 562,815
Brown-Forman Corp. Cl B....................................... 292 22,100
Browning-Ferris Inds., Inc. .................................. 739 21,015
Brunswick Corp. .............................................. 399 9,875
Burlington Northern Santa Fe Corp. ........................... 1,978 66,757
Burlington Resources, Inc. ................................... 754 27,002
Cabletron Systems, Inc. ...................................... 707 5,921
Campbell Soup Co. ............................................ 1,889 103,895
Capital One Financial Corp. .................................. 279 32,085
Cardinal Health, Inc. ........................................ 847 64,266
Carolina Power & Light Co. ................................... 643 30,261
Case Corp. ................................................... 334 7,285
Caterpillar, Inc. ............................................ 1,513 69,598
CBS Corp. .................................................... 2,978 97,529
Cendant Corp. ................................................ 3,598 68,586
Centex Corp. ................................................. 260 11,716
Central & South West Corp. ................................... 904 24,803
Ceridian Corp. ............................................... 304 21,223
Champion International Corp. ................................. 406 16,443
Charles Schwab Corp. ......................................... 1,691 95,013
Chase Manhattan Corp. ........................................ 3,587 244,140
Chevron Corp. ................................................ 2,767 229,488
Chubb Corp. .................................................. 691 44,828
CIGNA Corp. .................................................. 871 67,339
Cincinnati Financial Corp. ................................... 710 26,003
CINergy Corp. ................................................ 674 23,168
Circuit City Group, Inc. ..................................... 417 20,823
Cisco Systems, Inc. .......................................... 6,687 620,678
Citigroup Inc. ............................................... 9,618 476,091
Clear Channel Communications, Inc. ........................... 1,050 57,225
Clorox Co. ................................................... 439 51,280
Coastal Corp. ................................................ 904 31,583
Coca-Cola Co. ................................................ 10,439 698,108
Coca-Cola Enterprises, Inc. .................................. 1,653 59,094
Colgate-Palmolive Co. ........................................ 1,235 114,700
Columbia Energy Group......................................... 355 20,501
Columbia/HCA Healthcare Corp. ................................ 2,722 67,369
Comcast Corp. Cl A............................................ 1,557 91,376
Comerica, Inc. ............................................... 660 45,003
Compaq Computer Corp. ........................................ 7,210 302,369
Computer Associates Intl., Inc. .............................. 2,270 96,758
Computer Sciences Corp. ...................................... 670 43,173
Conagra, Inc. ................................................ 2,064 65,016
Conseco, Inc. ................................................ 1,334 40,770
</TABLE>
4
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Shares Value
------ --------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Consolidated Edison, Inc. .................................... 985 $ 52,081
Consolidated Natural Gas Co. ................................. 408 22,032
Consolidated Stores Corp. .................................... 455 9,185
Cooper Industries, Inc. ...................................... 430 20,505
Cooper Tire & Rubber Co. ..................................... 353 7,214
Coors (Adolph) Co. Cl B....................................... 166 9,368
Corning Inc. ................................................. 980 44,100
Costco Co. ................................................... 913 65,907
Countrywide Credit Industries, Inc. .......................... 480 24,090
Crane Co. .................................................... 309 9,327
Crown Cork & Seal, Inc. ...................................... 508 15,652
CSX Corp. .................................................... 907 37,640
Cummins Engine Co., Inc. ..................................... 171 6,070
CVS Corp. .................................................... 1,645 90,475
Cyprus Amax Minerals Co. ..................................... 419 4,190
Dana Corp. ................................................... 704 28,776
Danaher Corp. ................................................ 569 30,903
Darden Restaurants, Inc. ..................................... 608 10,944
Data General Corp. ........................................... 214 3,517
Dayton-Hudson Corp. .......................................... 1,855 100,633
Deere & Co. .................................................. 1,014 33,588
Dell Computer Corp. .......................................... 5,401 395,285
Delta Air Lines, Inc. ........................................ 607 31,564
Deluxe Corp. ................................................. 342 12,504
Dillard's Inc. Cl A........................................... 468 13,279
Disney (Walt) Co. ............................................ 8,689 260,670
Dollar General Corp. ......................................... 768 18,144
Dominion Resources, Inc. ..................................... 829 38,755
Donnelley (R.R.) & Sons Co. .................................. 564 24,710
Dover Corp. .................................................. 949 34,757
Dow Chemical Co. ............................................. 933 84,844
Dow Jones & Co., Inc. ........................................ 390 18,768
DTE Energy Co. ............................................... 617 26,453
Du Pont (E.I.) de Nemours & Co. .............................. 4,775 253,373
Duke Energy Corp. ............................................ 1,527 97,823
Dun & Bradstreet Corp. ....................................... 694 21,904
Eastern Enterprises........................................... 91 3,981
Eastman Chemical Co. ......................................... 329 14,722
Eastman Kodak Co. ............................................ 1,366 98,352
Eaton Corp. .................................................. 304 21,489
Ecolab Inc. .................................................. 550 19,903
Edison International.......................................... 1,496 41,701
EG&G, Inc. ................................................... 205 5,701
Electronic Data Systems Corp. ................................ 2,078 104,419
EMC Corp. .................................................... 2,128 180,880
Emerson Electric Co. ......................................... 1,858 112,409
Engelhard Corp. .............................................. 595 11,602
Enron Corp. .................................................. 1,395 79,602
Entergy Corp. ................................................ 1,049 32,650
Equifax Inc. ................................................. 613 20,956
Exxon Corp. .................................................. 10,296 752,895
FDX Corp. .................................................... 624 55,536
Federated Department Stores, Inc. ............................ 851 37,071
Federal Home Loan Mortgage Corp. ............................. 2,878 185,451
Fifth Third Bancorp........................................... 1,125 80,226
First Data Corp. ............................................. 1,871 59,287
First Union Corp. ............................................ 4,202 255,534
FirstEnergy Corp. ............................................ 1,008 32,823
Fleet Financial Group, Inc. .................................. 2,397 107,115
Fleetwood Enterprises, Inc. .................................. 148 5,143
Fluor Corp. .................................................. 332 14,130
FMC Corp. .................................................... 145 8,120
Federal National Mortgage Association......................... 4,398 325,452
Ford Motor Co. ............................................... 5,132 301,184
</TABLE>
<TABLE>
<CAPTION>
Shares Value
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INDEXED ASSETS (Continued):
Common Stocks (Continued)
Fort James Corp. ........................................... 937 $ 37,480
Fortune Brands, Inc. ....................................... 727 22,991
Foster Wheeler Corp. ....................................... 182 2,400
FPL Group, Inc. ............................................ 767 47,266
Franklin Resources, Inc. ................................... 1,073 34,336
Fred Meyer, Inc. ........................................... 642 38,680
Freeport-McMoran Copper & Gold Cl B......................... 725 7,567
Frontier Corp. ............................................. 736 25,024
Fruit of the Loom, Inc. Cl A................................ 328 4,530
Gannett Co., Inc. .......................................... 1,188 76,626
Gap, Inc. .................................................. 2,444 137,475
Gateway 2000, Inc. ......................................... 649 33,220
General Dynamics Corp. ..................................... 539 31,598
General Electric Co. ....................................... 13,877 1,416,321
General Instrument Corp. ................................... 695 23,586
General Mills, Inc. ........................................ 646 50,226
General Motors Corp. ....................................... 2,776 198,657
Genuine Parts Co. .......................................... 765 25,579
Georgia-Pacific (Timber Group).............................. 366 21,433
Gillette Co. ............................................... 4,705 227,310
Golden West Financial Corp. ................................ 242 22,188
Goodrich (B.F.) Co. ........................................ 316 11,336
Goodyear Tire & Rubber Co. ................................. 663 33,440
GPU, Inc. .................................................. 544 24,038
Grainger (W.W.), Inc. ...................................... 394 16,400
Great Atlantic & Pac. Tea Inc. ............................. 171 5,065
Great Lakes Chemical Corp. ................................. 246 9,840
GTE Corp. .................................................. 4,093 266,045
Guidant Corp. .............................................. 635 70,008
Halliburton Co. ............................................ 1,854 54,924
Harcourt General, Inc. ..................................... 295 15,690
Harnischfeger Industries, Inc. ............................. 221 2,251
Harrah's Entertainment, Inc. ............................... 452 7,090
Harris Corp. ............................................... 333 12,196
Hartford Financial Services Group........................... 985 54,051
Hasbro, Inc. ............................................... 556 20,085
HBO & Co. .................................................. 1,966 56,399
HCR Manor Care, Inc. ....................................... 485 14,246
HealthSouth Corp. .......................................... 1,799 27,772
Heinz (H.J.) Co. ........................................... 1,527 86,466
Helmerich & Payne, Inc. .................................... 224 4,340
Hercules, Inc. ............................................. 433 11,853
Hershey Food Corp. ......................................... 595 37,001
Hewlett-Packard Co. ........................................ 4,399 300,506
Hilton Hotels Corp. ........................................ 1,120 21,420
Home Depot, Inc. ........................................... 6,630 405,673
Homestake Mining Co. ....................................... 1,046 9,610
Honeywell, Inc. ............................................ 523 39,388
Household International Corp. .............................. 2,036 80,676
Houston Industries, Inc. ................................... 1,207 38,774
Humana, Inc. ............................................... 734 13,074
Huntington Bancshares, Inc. ................................ 897 26,966
Ikon Office Solutions, Inc. ................................ 595 5,094
Illinois Tool Works, Inc. .................................. 1,055 61,190
IMS Health, Inc. ........................................... 677 51,071
Inco Ltd. .................................................. 748 7,900
Ingersoll Rand Co. ......................................... 699 32,809
Intel Corp. ................................................ 7,059 836,932
International Paper Co. .................................... 1,299 58,211
Interpublic Group of Cos., Inc. ............................ 589 46,972
International Business Machines Corp........................ 3,951 729,947
International Flavors & Fragrances, Inc..................... 441 19,486
ITT Industries, Inc. ....................................... 431 17,132
Jefferson-Pilot Corp. ...................................... 440 33,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Johnson & Johnson........................................... 5,693 $ 477,500
Johnson Controls, Inc. ..................................... 360 21,240
Jostens, Inc. .............................................. 176 4,608
Kaufman & Broad Home Corp. ................................. 174 5,002
Kellogg Co. ................................................ 1,709 58,319
Kerr-McGee Corp. ........................................... 214 8,185
KeyCorp..................................................... 1,920 61,440
Kimberly Clark Corp. ....................................... 2,285 124,532
King World Productions, Inc. ............................... 330 9,714
KLA Tencor Corp. ........................................... 375 16,265
Kmart Corp. ................................................ 2,096 32,095
Knight-Ridder, Inc. ........................................ 334 17,075
Kohl's Corp. ............................................... 657 40,364
Kroger Co. ................................................. 1,081 65,400
Laidlaw, Inc. .............................................. 1,370 13,785
Lehman Brothers Holdings, Inc. ............................. 482 21,238
Lilly (Eli) & Co. .......................................... 4,655 413,713
Limited, Inc. .............................................. 969 28,222
Lincoln National Corp. ..................................... 420 34,361
Liz Claiborne, Inc. ........................................ 268 8,458
Lockheed Martin Corp. ...................................... 828 70,173
Loews Corp. ................................................ 482 47,356
Longs Drug Stores Corp. .................................... 176 6,600
Louisiana-Pacific Corp. .................................... 490 8,973
Lowe's Companies, Inc. ..................................... 1,487 76,115
LSI Logic Corp. ............................................ 587 9,465
Lucent Technologies, Inc. .................................. 5,567 612,370
Mallinckrodt, Inc. ......................................... 303 9,336
Marriott International, Inc. Cl A........................... 1,064 30,856
Marsh & McLennan Cos., Inc. ................................ 1,085 63,404
Masco Corp. ................................................ 1,439 41,371
Mattel, Inc. ............................................... 1,223 27,899
May Department Stores Co. .................................. 985 59,469
Maytag Corp. ............................................... 374 23,281
MBIA Inc. .................................................. 422 27,667
MBNA Corp. ................................................. 3,171 79,076
McDermott International, Inc. .............................. 271 6,690
McDonald's Corp. ........................................... 2,869 219,837
McGraw-Hill Cos., Inc. ..................................... 409 41,666
MCI WorldCom Inc. .......................................... 7,762 556,923
Mead Corp. ................................................. 437 12,809
MediaOne Group, Inc. ....................................... 2,560 120,320
Medtronic, Inc. ............................................ 2,080 154,440
Mellon Bank Corp. .......................................... 1,101 75,693
Mercantile Bancorporation................................... 654 30,165
Merck & Co., Inc. .......................................... 5,044 744,935
Meredith Corp. ............................................. 217 8,218
Merrill Lynch & Co., Inc. .................................. 1,496 99,858
MGIC Investment Corp. ...................................... 455 18,114
Micron Technology, Inc. .................................... 906 45,809
Microsoft Corp. ............................................ 10,560 1,464,730
Milacron, Inc. ............................................. 179 3,445
Millipore Corp. ............................................ 195 5,545
Minnesota Mining & Mfg. Co. ................................ 1,693 120,414
Mirage Resorts, Inc. ....................................... 801 11,964
Mobil Corp. ................................................ 3,308 288,209
Monsanto Co. ............................................... 2,642 125,495
Moore Corp., Ltd. .......................................... 398 4,378
Morgan (J.P.) & Co., Inc. .................................. 737 77,431
Morgan Stanley Dean Witter Co. ............................. 2,450 173,950
Morton International, Inc. ................................. 531 13,009
Motorola, Inc. ............................................. 2,546 155,465
NACCO Industries, Inc. Cl A................................. 37 3,404
Nalco Chemical Co. ......................................... 272 8,432
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ --------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
National City Corp. .......................................... 1,395 $101,137
National Semiconductor Corp. ................................. 690 9,315
National Service Industries................................... 176 6,688
Navistar International Corp. ................................. 293 8,350
New Century Energies, Inc. ................................... 475 23,156
New York Times Co. Cl A....................................... 758 26,293
Newell Co. ................................................... 676 27,885
Newmont Mining Corp. ......................................... 695 12,553
Nextel Communications, Inc. Cl A.............................. 1,222 28,869
Niagara Mohawk Power Corp. ................................... 778 12,545
Nicor, Inc. .................................................. 198 8,365
Nike, Inc. Cl B............................................... 1,210 49,080
Nordstrom, Inc. .............................................. 619 21,471
Norfolk Southern Corp. ....................................... 1,603 50,795
Northern States Power Co. .................................... 634 17,593
Northern Telecom, Ltd. ....................................... 2,750 137,843
Northern Trust Corp. ......................................... 461 40,251
Northrop Grumman Corp. ....................................... 286 20,913
Novell, Inc. ................................................. 1,497 27,133
Nucor Corp. .................................................. 372 16,089
Occidental Petroleum Corp. ................................... 1,437 24,249
Omnicom Group, Inc. .......................................... 701 40,658
Oneok, Inc. .................................................. 139 5,021
Oracle Corp. ................................................. 4,122 177,761
Oryx Energy Co. .............................................. 472 6,342
Owens Corning................................................. 239 8,469
Owens Illinois, Inc. ......................................... 645 19,753
Paccar, Inc. ................................................. 325 13,365
PacifiCorp.................................................... 1,264 26,623
Pall Corp. ................................................... 527 13,339
Parametric Technology Corp. .................................. 1,131 18,520
Parker Hannifin Corp. ........................................ 463 15,163
Paychex, Inc. ................................................ 695 35,749
Peco Energy Co. .............................................. 931 38,752
Penney (J.C.) Co., Inc. ...................................... 1,071 50,203
PennzEnergy Co. .............................................. 215 3,507
Pennzoil-Quaker State Co. .................................... 215 3,171
Peoples Energy Corp. ......................................... 157 6,260
Peoplesoft, Inc. ............................................. 968 18,331
Pep Boys-Manny, Moe & Jack.................................... 283 4,439
PepsiCo, Inc. ................................................ 6,223 254,754
Perkin-Elmer Corp. ........................................... 207 20,195
Pfizer, Inc. ................................................. 5,496 689,404
PG & E Corp. ................................................. 1,616 50,904
Pharmacia & Upjohn, Inc. ..................................... 2,143 121,347
Phelps Dodge Corp. ........................................... 254 12,922
Phillip Morris Cos., Inc. .................................... 10,310 551,585
Phillips Petroleum Co. ....................................... 1,080 46,035
Pioneer Hi-Bred Intl., Inc. .................................. 1,027 27,729
Pitney Bowes, Inc. ........................................... 1,150 75,971
Placer Dome, Inc. ............................................ 1,039 11,948
PNC Bank Corp. ............................................... 1,269 68,684
Polaroid Corp. ............................................... 204 3,812
Potlatch Corp. ............................................... 130 4,793
PP&L Resources, Inc. ......................................... 643 17,923
PPG Industries, Inc. ......................................... 752 43,804
Praxair, Inc. ................................................ 671 23,652
Proctor & Gamble Co. ......................................... 5,617 512,902
Progressive Corp. of Ohio..................................... 307 51,998
Provident Companies, Inc. .................................... 575 23,862
Providian Financial Corp. .................................... 811 60,825
Public Svc. Enterprise Group, Inc. ........................... 948 37,920
Pulte Corp. .................................................. 190 5,284
Quaker Oats Co. .............................................. 579 34,450
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Shares Value
------ --------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Ralston Purina Co. ........................................... 1,324 $ 42,864
Raychem Corp. ................................................ 346 11,180
Raytheon Co. Cl B............................................. 1,421 75,668
Reebok International Ltd. .................................... 252 3,748
Regions Financial Corp. ...................................... 919 37,047
Republic New York Corp. ...................................... 446 20,320
Reynolds Metals Co. .......................................... 282 14,857
Rite-Aid Corp. ............................................... 1,092 54,122
RJR Nabisco Holdings Corp. ................................... 1,350 40,078
Rockwell Intl., Corp. ........................................ 794 38,558
Rohm & Haas Co. .............................................. 692 20,846
Rowan Cos., Inc. ............................................. 388 3,880
Royal Dutch Petro Co. ........................................ 9,078 434,609
Rubbermaid, Inc. ............................................. 638 20,057
Russell Corp. ................................................ 163 3,310
Ryder System, Inc. ........................................... 305 7,930
Safeco Corp. ................................................. 566 24,302
Safeway, Inc. ................................................ 2,050 124,921
Sara Lee Corp. ............................................... 3,852 108,578
SBC Communications, Inc. ..................................... 8,279 443,961
Schering-Plough Corp. ........................................ 6,233 344,373
Schlumberger, Ltd. ........................................... 2,302 106,179
Scientific-Atlanta, Inc. ..................................... 347 7,915
Seagate Technology............................................ 1,043 31,550
Seagram, Ltd. ................................................ 1,662 63,156
Sealed Air Corp. ............................................. 347 17,718
Sears Roebuck & Co. .......................................... 1,616 68,680
Sempra Energy................................................. 1,021 25,907
Service Corp. International................................... 1,094 41,640
Shared Medical Systems Corp. ................................. 112 5,586
Sherwin-Williams Co. ......................................... 731 21,473
Sigma-Aldrich Corp. .......................................... 418 12,278
Silicon Graphics, Inc. ....................................... 779 10,029
SLM Holding Corp. ............................................ 688 33,024
Snap-On, Inc. ................................................ 245 8,529
Sonat, Inc. .................................................. 484 13,098
Southern Co. ................................................. 2,941 85,472
Southwest Airlines Co. ....................................... 1,430 32,085
Springs Industries, Inc. ..................................... 90 3,729
Sprint Corp. (FON Group)...................................... 1,827 153,696
Sprint Corp. (PCS Group)...................................... 1,766 40,838
St. Jude Medical, Inc. ....................................... 375 10,382
St. Paul Companies, Inc. ..................................... 979 34,020
Stanley Works................................................. 369 10,239
Staples, Inc. ................................................ 1,317 57,536
State Street Corp. ........................................... 681 47,372
Summit Bancorp................................................ 738 32,241
Sun America, Inc. ............................................ 916 74,310
Sun Microsystems, Inc. ....................................... 1,605 137,428
Sunoco, Inc. ................................................. 389 14,028
Suntrust Banks, Inc. ......................................... 884 67,626
Supervalu, Inc. .............................................. 512 14,336
Synovus Financial Corp. ...................................... 1,137 27,714
Sysco Corp. .................................................. 1,388 38,083
Tandy Corp. .................................................. 421 17,339
Tektronix, Inc. .............................................. 225 6,764
Tele-Communications, Inc. (TCI-Gp. "A")....................... 2,269 125,504
Tellabs, Inc. ................................................ 819 56,152
Temple-Inland, Inc. .......................................... 236 13,997
Tenet Healthcare Corp. ....................................... 1,317 34,571
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Tenneco, Inc. .............................................. 723 $ 24,627
Texaco, Inc. ............................................... 2,254 119,180
Texas Instruments, Inc. .................................... 1,654 141,520
Texas Utilities Co. ........................................ 1,191 55,604
Textron, Inc. .............................................. 670 50,878
Thermo Electron Corp. ...................................... 660 11,178
Thomas & Betts Corp. ....................................... 246 10,654
Time Warner, Inc. .......................................... 5,204 322,973
Times Mirror Co. Cl A....................................... 331 18,536
Timken Co. ................................................. 282 5,322
TJX Companies............................................... 1,370 39,730
Torchmark Corp. ............................................ 596 21,046
Toys R Us, Inc. ............................................ 1,111 18,748
Transamerica Corp. ......................................... 265 30,607
Tribune Co. ................................................ 505 33,330
Tricon Global Restaurants Inc. ............................. 649 32,531
TRW, Inc. .................................................. 498 27,981
Tupperware Corp. ........................................... 274 4,503
Tyco International Ltd. .................................... 2,733 206,170
U.S. Bancorp................................................ 3,061 108,665
U.S. West, Inc. ............................................ 2,119 136,940
Unicom Corp. ............................................... 902 34,783
Unilever N.V. .............................................. 2,715 225,175
Union Camp Corp. ........................................... 294 19,845
Union Carbide Corp. ........................................ 552 23,460
Union Pacific Corp. ........................................ 1,049 47,270
Union Pacific Resources Group, Inc. ........................ 1,043 9,452
Union Planters Corp. ....................................... 565 25,601
Unisys Corp. ............................................... 1,060 36,503
United Healthcare Corp. .................................... 792 34,105
United Technologies Corp. .................................. 952 103,530
Unocal Corp. ............................................... 1,026 29,946
UNUM Corp. ................................................. 588 34,324
US Airways Group, Inc. ..................................... 363 18,876
UST, Inc. .................................................. 791 27,586
USX-Marathon Group.......................................... 1,278 38,499
USX-U.S. Steel Group........................................ 384 8,832
V F Corp. .................................................. 510 23,906
Venator Group, Inc. ........................................ 605 3,894
Viacom, Inc. Cl B........................................... 1,467 108,558
W.R. Grace & Co. ........................................... 333 5,223
Wachovia Corp. ............................................. 855 74,759
Wal-Mart Stores, Inc. ...................................... 9,540 776,913
Walgreen Co. ............................................... 2,103 123,156
Warner-Lambert Co. ......................................... 3,484 261,953
Washington Mutual, Inc. .................................... 2,502 95,545
Waste Management, Inc. ..................................... 2,422 112,925
Wells Fargo & Company....................................... 6,859 273,931
Wendy's International, Inc. ................................ 545 11,887
Westvaco Corp. ............................................. 421 11,288
Weyerhaeuser Co. ........................................... 844 42,885
Whirlpool Corp. ............................................ 316 17,498
Willamette Industries, Inc. ................................ 472 15,812
Williams Cos., Inc. ........................................ 1,808 56,387
Winn-Dixie Stores, Inc. .................................... 632 28,361
Worthington Industries, Inc. ............................... 433 5,412
Wrigley (Wm.) Jr. Co. ...................................... 493 44,154
Xerox Corp. ................................................ 1,391 164,138
-----------
Total Indexed Assets--Common Stocks (Cost: $23,363,581) 60.0%...... 42,016,332
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
----- -------- -------- -----------
<S> <C> <C> <C> <C>
INDEXED ASSETS (Continued):
Short-term Debt Securities:
<CAPTION>
U.S. Government (0.1%)
<S> <C> <C> <C> <C>
U.S. Treasury Bill........................ 4.55% 02/04/99 $ 55,000 $ 54,761
U.S. Treasury Bill........................ 4.93 02/04/99 40,000 39,809
-----------
94,570
-----------
<CAPTION>
Commercial Paper (0.2%)
<S> <C> <C> <C> <C>
Duke Energy Corp. ........................ 5.25 01/04/99 133,000 132,942
-----------
Total Indexed Short-
Term Debt Securities (Cost: $227,512) 0.3%........................ 227,512
-----------
Total Indexed Assets (Cost: $23,591,093) 60.3%..................... 42,243,844
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
ACTIVE ASSETS:
Common Stocks
Basic Materials (0.8%)
Barrick Gold Corp. ......................................... 1,800 $ 35,100
Cabot Corp. ................................................ 4,200 117,337
Homestake Mining Co. ....................................... 2,900 26,643
Lone Star Technologies, Inc.*............................... 7,200 72,900
Newmont Mining Corp. ....................................... 1,300 23,481
Oregon Steel Mills, Inc. ................................... 4,500 53,437
Placer Dome, Inc. .......................................... 2,600 29,900
Praxair, Inc. .............................................. 5,200 183,300
----------
542,098
----------
Consumer, Cyclical (6.2%)
American Greetings Corp. Cl A............................... 4,000 164,250
ASA Holdings, Inc. ......................................... 1,400 42,700
Atlantic Coast Airlines, Inc.*.............................. 5,600 140,000
Bed Bath & Beyond, Inc.*.................................... 6,300 214,987
Bergen Brunswig............................................. 8,400 292,950
BJ's Wholesale Club, Inc. .................................. 4,600 213,037
Blyth Industries, Inc.*..................................... 3,000 93,750
Borders Group, Inc.*........................................ 2,500 62,343
CKE Restaurants, Inc. ...................................... 781 22,990
Clear Channel Communications................................ 2,176 118,592
Coach USA, Inc.*............................................ 3,400 117,937
Consolidated Graphics, Inc.*................................ 1,500 101,343
Consolidated Stores Corp.*.................................. 4,100 82,768
ContinentalAirlines, Inc. Cl. B*............................ 1,500 50,250
Cox Radio, Inc.*............................................ 1,700 71,825
Dollar Tree Stores *........................................ 2,100 91,743
Ethan Allen Interiors, Inc. ................................ 1,800 73,800
Family Dollar Stores Inc. .................................. 6,800 149,600
Furniture Brands Intl., Inc.*............................... 1,000 27,250
Gannett Co., Inc. .......................................... 2,900 187,050
Jacor Communications, Inc.*................................. 2,600 167,375
Linens'n Things, Inc.*...................................... 6,500 257,562
Magna International, Inc. Cl A*............................. 1,500 93,000
Masco Corp. ................................................ 6,500 186,875
Mattel, Inc. ............................................... 2,300 52,468
Meredith Corp. ............................................. 2,300 87,112
Nordstrom, Inc. ............................................ 4,300 149,156
Office Depot, Inc.*......................................... 5,300 195,768
Outback Steakhouse, Inc.*................................... 3,800 151,525
Outdoor Systems, Inc.*...................................... 3,175 95,250
Rent-Way Inc.*.............................................. 2,300 55,918
Saks Incorporated*.......................................... 3,000 94,687
Skywest, Inc. .............................................. 5,700 186,318
The Men's Wearhouse, Inc.*.................................. 3,300 104,775
Tiffany & Co. .............................................. 2,400 124,500
Westpoint Stevens Inc.*..................................... 1,600 50,500
----------
4,371,954
----------
Consumer, Non-Cyclical (5.4%)
Agouron Pharmaceuticals Inc.*............................... 2,400 141,000
Amazon.com, Inc.*........................................... 700 224,875
American Home Products Corp. ............................... 3,400 191,462
Anesta Corp.*............................................... 2,800 74,550
Baxter International Inc. .................................. 1,700 109,331
Biogen Inc. ................................................ 400 33,200
Biomet, Inc. ............................................... 1,600 64,400
Diageo PLC--Sponsored ADR................................... 2,000 92,500
Dura Pharmaceuticals, Inc.*................................. 5,500 83,531
Earthgrains Co. ............................................ 5,800 179,437
Elan Corp Plc -Spons ADR*................................... 1,200 83,475
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
Shares Value
------ ----------
<S> <C> <C>
ACTIVE ASSETS (Continued):
Common Stocks (Continued)
Consumer, Non-Cyclical (Continued)
Food Lion, Inc. ............................................ 10,800 $ 114,750
Forest Laboratories, Inc.*.................................. 2,100 111,693
Fort James Corp of Virginia................................. 2,800 112,000
Fred Meyer, Inc.*........................................... 2,400 144,600
Health Management Associates*............................... 3,200 69,200
IDEC Pharmaceuticals Corp.*................................. 1,000 47,000
Integrated Health Services.................................. 3,200 45,200
Lilly (Eli) & Co. .......................................... 1,500 133,312
Medimmune, Inc.*............................................ 2,200 218,762
Medquist, Inc.*............................................. 4,300 169,850
Metzler Group, Inc.*........................................ 2,100 102,243
Omnicare, Inc. ............................................. 4,600 159,850
Phillip Morris Cos., Inc. .................................. 5,200 278,200
SangStat Medical Corp.*..................................... 2,900 61,625
Starbucks Corp.*............................................ 3,600 202,050
Suiza Foods Corp.*.......................................... 2,400 122,250
US Foodservice*............................................. 5,200 254,800
Williams-Sonoma Inc.*....................................... 4,500 181,406
----------
3,806,552
----------
Energy (1.2%)
Amoco Corp.*................................................ 3,200 193,200
Elf Aquitaine--ADR.......................................... 3,200 181,200
Schlumberger, Ltd. ......................................... 1,800 83,025
Shell Transport & Trading--ADR.............................. 3,400 126,437
USX-Marathon Group.......................................... 8,100 244,012
----------
827,874
----------
Financial (7.5%)
American Int'l. Group, Inc. ................................ 3,825 369,590
Aon Corp. .................................................. 2,100 116,287
Arden Realty Group.......................................... 4,100 95,068
ARM Financial Group, Inc. .................................. 4,500 99,843
BankAmerica Corp. .......................................... 6,323 380,170
Chicago Title Corp. ........................................ 2,200 103,262
ChoicePoint, Inc.*.......................................... 700 45,150
Citigroup Inc. ............................................. 9,800 485,100
Commerce Bancshares, Inc. ................................. 600 25,512
Cullen/Frost Bankers Inc. .................................. 1,600 87,800
Dime Bancorp Inc. .......................................... 4,400 116,325
Equity Residential Prop. Tr. ............................... 2,300 93,006
Finova Group, Inc. ......................................... 3,000 161,812
First Union Corp. .......................................... 3,500 212,843
Fleet Financial Group, Inc. ................................ 4,500 201,093
Frontier Insurance Group, Inc. ............................. 3,200 41,200
Glenborough Realty Trust, Inc. ............................. 4,800 97,800
HCC Insurance Holdings, Inc. ............................... 5,100 89,887
Heller Financial, Inc. ..................................... 5,200 152,750
Horace Mann Educators Corp. ................................ 3,800 108,300
Household International Corp. .............................. 5,279 209,180
Keystone Financial, Inc. ................................... 2,200 81,400
Kimco Realty Corp. ......................................... 2,300 91,281
Loews Corp. ................................................ 1,600 157,200
Mack-Cali Realty Corp. ..................................... 3,000 92,625
Morgan Stanley Dean Witter.................................. 2,600 184,600
National City Corp. ........................................ 2,160 156,600
Natl. Commerce Bancorporation............................... 2,800 52,675
North Fork Bancorporation, Inc. ............................ 4,100 98,143
Oriental Financial Group.................................... 4,900 153,431
Providian Financial Corp. .................................. 1,500 112,500
Public Storage, Inc. ....................................... 3,000 81,187
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
ACTIVE ASSETS (Continued):
Common Stocks (Continued)
Financial (Continued)
SL Green Realty Corp. ..................................... 5,200 $ 112,450
Sovereign Bancorp, Inc. ................................... 1,800 25,650
Spieker Pptys Inc. ........................................ 2,600 90,025
Summit Bancorp............................................. 2,000 87,375
Telebanc Financial Corp.*.................................. 2,200 74,800
Torchmark Corp. ........................................... 2,800 98,875
Waddell & Reed Financial, Inc. ............................ 542 12,637
Washington Mutual, Inc. ................................... 5,500 210,031
-----------
5,265,463
-----------
Industrial (2.4%)
AFC Cable Systems, Inc.*................................... 1,500 50,437
BISYS Group, Inc.*......................................... 2,900 149,712
Burlington Northern Santa Fe............................... 5,600 189,000
Covenant Transport, Inc. Cl A*............................. 4,500 80,437
Dycom Industries, Inc.*.................................... 1,000 57,125
First Data Corp. .......................................... 5,000 158,437
Heico Corp. ............................................... 900 28,406
Hooper Holmes, Inc. ....................................... 4,000 116,000
Kansas City Southern Inds. ................................ 2,700 132,806
Pittway Corp. ............................................. 900 29,756
QRS Corp.*................................................. 1,400 67,200
Semtech Corp. ............................................. 2,400 86,100
Sherwin-Williams Co. ...................................... 2,000 58,750
Siebel Systems Inc *....................................... 1,100 37,331
Swift Transportation Co., Inc.*............................ 3,000 84,093
Tetra Tech, Inc.*.......................................... 3,700 100,131
U.S. Xpress Enterprises, Inc. Cl A......................... 3,000 45,000
Williams Cos., Inc. ....................................... 5,300 165,293
Young & Rubicam Inc.*...................................... 900 29,137
-----------
1,665,151
-----------
Technology (12.2%)
3Com Corp.*................................................ 9,400 421,237
Altera Corp.*.............................................. 1,300 79,137
Alza Corp.*................................................ 3,900 203,775
Applied Materials, Inc.*................................... 10,400 443,950
Ascend Communications, Inc.*............................... 1,200 78,900
ASM Lithography Holding NV*................................ 2,300 70,150
At Home Corp--Ser A*....................................... 1,000 74,250
AT&T Corp. ................................................ 2,200 165,550
Atmel Corp.*............................................... 11,900 182,218
</TABLE>
- -------
* Non-income producing security.
<TABLE>
<CAPTION>
Shares Value
------ -----------
<S> <C> <C>
ACTIVE ASSETS (Continued):
Common Stocks (Continued)
Technology (Continued)
Centocor, Inc.*............................................. 1,800 $ 81,225
Ceridian Corp.*............................................. 2,200 153,587
Ciena Corp.*................................................ 4,400 64,350
Cisco Systems, Inc.*........................................ 17,700 1,642,821
Citrix Systems, Inc.*....................................... 1,700 165,006
Compaq Computer Corp. ...................................... 17,200 721,325
Dionex Corp *............................................... 2,700 98,887
Excite, Inc.*............................................... 1,700 71,506
Hewlett-Packard Co. ........................................ 2,800 191,275
INKTOMI CORP*............................................... 300 38,812
Intel Corp. ................................................ 6,900 818,081
Intl. Business Machines Corp. .............................. 1,300 240,175
Intuit, Inc.*............................................... 1,100 79,750
Linear Technology Corp. .................................... 6,300 564,243
Maxim Integrated Products, Inc.*............................ 9,200 401,925
Maxtor Corp.*............................................... 2,200 30,800
Newbridge Networks Corp.*................................... 900 27,337
Novellus Systems Inc.*...................................... 1,500 74,250
Parametric Technology Corp.*................................ 9,800 160,475
Raytheon Co. Cl B........................................... 3,800 202,350
Sanmina Corp.*.............................................. 1,100 68,750
Teradyne, Inc. *............................................ 2,100 88,987
Visual Networks, Inc.*...................................... 800 30,000
Xerox Corp. ................................................ 2,350 277,300
Xilinx, Inc.*............................................... 8,700 566,587
-----------
8,578,971
-----------
Utilities (1.3%)
AES Corp.*.................................................. 700 33,162
CILCORP Inc. ............................................... 600 36,712
Commonwealth Energy System.................................. 1,000 40,500
Consolidated Natural Gas Co. ............................... 2,100 113,400
Entergy Corp. .............................................. 5,700 177,412
MCI WorldCom Inc.*.......................................... 3,109 223,072
MDU Resources Group......................................... 1,200 31,575
Montana Pwr Co. ............................................ 1,200 67,875
SBC Communications, Inc. ................................... 3,000 160,875
SIGCORP, Inc. .............................................. 1,000 35,750
-----------
920,333
-----------
Total Active Assets--Common Stocks (Cost: $19,714,350) 37.0%....... 25,978,396
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
----- -------- ---------- -----------
<S> <C> <C> <C> <C>
ACTIVE ASSETS (Continued):
Short-Term Debt Securities:
<CAPTION>
Agencies (0.1%)
<S> <C> <C> <C> <C>
Federal National Mortgage Association.... 4.90% 02/05/99 $ 36,000 $ 35,828
-----------
<CAPTION>
Commercial Paper (2.6%)
<S> <C> <C> <C> <C>
Centerior Fuel Corp. .................... 5.05 01/08/99 200,000 199,804
Duke Power Company....................... 5.25 01/04/99 440,000 439,807
Ford Motor Credit Co. ................... 6.09 01/04/99 1,209,000 1,208,386
-----------
1,847,997
-----------
Total Active Assets Short-
Term Debt Securities (Cost: $1,883,825) 2.7%....................... 1,883,825
-----------
Total Active Assets (Cost: $21,598,175) 39.7%....................... 27,862,221
-----------
Total Investments (Cost: $45,189,268) 100.0%........................ $70,106,065
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1998
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
------ -------- ---------- ----------
<S> <C> <C> <C> <C>
Long-Term Debt Securities:
U.S. Government (23.8%)
U.S. Treasury Note....................... 6.63% 04/30/02 $ 500,000 $ 529,140
U.S. Treasury Note....................... 6.50 05/15/05 3,250,000 3,561,805
U.S. Treasury Bond....................... 7.13 02/15/23 1,500,000 1,848,510
----------
5,939,455
----------
Agencies/Other Governments (17.7%)
FHLMC.................................... 8.00 07/15/06 265,420 274,543
FHLMC.................................... 6.50 10/15/06 351,883 353,090
FHLMC.................................... 7.00 04/15/17 206,524 206,846
FHLMC.................................... 0.00 05/22/28 5,000,000 664,050
FNMA..................................... 6.80 06/25/05 238,970 238,671
FNMA..................................... 7.00 11/25/05 600,000 604,308
FNMA..................................... 7.00 10/25/07 1,000,000 1,028,120
Republic of Iceland...................... 6.13 02/01/04 1,000,000 1,036,970
----------
4,406,598
----------
Basic Materials (5.2%)
Georgia-Pacific Corp. ................... 8.63 04/30/25 250,000 263,455
Lyondell/Arco Petrochemical.............. 10.25 11/01/10 500,000 527,995
Praxair, Inc. ........................... 6.90 11/01/06 500,000 512,230
----------
1,303,680
----------
Consumer, Cyclical (6.7%)
Fruit of the Loom, Inc. ................. 7.00 03/15/11 250,000 234,415
Fruit of the Loom, Inc. ................. 7.38 11/15/23 250,000 222,408
Polaroid Corp. .......................... 7.25 01/15/07 250,000 233,455
Tommy Hilfiger USA, Inc. ................ 6.50 06/01/03 500,000 492,785
Venator Group, Inc. ..................... 7.00 10/15/02 500,000 489,900
----------
1,672,963
----------
Consumer, Non-Cyclical (4.0%)
Bausch & Lomb, Inc. ..................... 6.38 08/01/03 500,000 491,105
Bausch & Lomb, Inc. ..................... 6.75 12/15/04 500,000 494,535
----------
985,640
----------
Financial (24.6%)
Bear Stearns Cos., Inc. ................. 6.63 10/01/04 1,000,000 1,027,460
Chase Manhattan Corp. ................... 6.88 12/12/12 1,000,000 1,043,220
Executive Risk, Inc. .................... 7.13 12/15/07 500,000 540,955
First American Financial................. 7.55 04/01/28 500,000 515,425
Harleysville Group, Inc. ................ 6.75 11/15/03 250,000 256,898
Lehman Brothers Holdings, Inc. .......... 0.00 07/28/28 1,000,000 115,490
Morgan (J.P.) & Co., Inc. ............... 0.00 04/15/27 2,500,000 317,900
Nationwide Health Properties, Inc. ...... 7.90 11/20/06 500,000 503,635
Rank Group Financial..................... 6.75 11/30/04 500,000 487,785
Rodamco NV............................... 7.30 05/15/05 1,000,000 1,063,620
Triad Guaranty, Inc. .................... 7.90 01/15/28 250,000 266,396
----------
6,138,784
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
------ -------- ---------- -----------
<S> <C> <C> <C> <C>
Long-Term Debt Securities (Continued):
Industrial (11.1%)
Clark Equipment Co. ................... 8.35% 05/15/23 $ 500,000 $ 609,175
Geon Co. .............................. 7.50 12/15/15 250,000 265,575
Thermo Electron Corp. ................. 4.25 01/01/03 1,000,000 890,000
Williams Cos., Inc. ................... 6.50 11/15/02 1,000,000 1,009,530
-----------
2,774,280
-----------
Utilities (2.2%)
UtiliCorp United, Inc. ................ 8.00 03/01/23 500,000 548,295
-----------
Total Long-Term Debt Securities (Cost:
$22,787,468) 95.3%..................... 23,769,695
-----------
Short-Term Debt Securities:
U. S. Government (0.2%)
U.S. Treasury Bill..................... 4.50 01/21/99 10,000 9,975
U.S. Treasury Bill..................... 4.09 02/04/99 10,000 9,961
U.S. Treasury Bill..................... 4.15 02/18/99 30,000 29,832
U.S. Treasury Bill..................... 3.70 02/18/99 10,000 9,950
-----------
59,718
-----------
Agencies (0.8%)
FNMA................................... 4.95 02/04/99 60,000 59,719
FNMA................................... 5.05 02/05/99 67,000 66,670
FNMA................................... 4.91 02/19/99 71,000 70,524
-----------
196,913
-----------
Commercial Paper (3.7%)
Heinz (H.J.) Co........................ 5.20 01/14/99 274,000 273,482
Koch Industries........................ 5.20 01/04/99 638,000 637,724
-----------
911,206
-----------
Total Short-Term Debt Securities (Cost: $1,167,837) 4.7%........... 1,167,837
-----------
Total Investments (Cost: $23,955,305) 100.0% ...................... $24,937,532
===========
</TABLE>
- -------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1998
<TABLE>
<CAPTION>
Discount Face Amortized
Rating* Rate Maturity Amount Cost
------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Short-Term Debt Securities:
Agencies (16.4%)
FHLB.......................... 4.50% 01/25/99 $1,000,000 $ 997,000
FHLMC......................... 4.88 02/05/99 33,000 32,843
----------
1,029,843
----------
Commercial Paper (83.6%)
Albertson's, Inc. ............ A1/P1 5.22 01/12/99 120,000 119,808
Albertson's, Inc. ............ A1/P1 5.00 01/12/99 178,000 177,728
Associates Corp. North Ameri-
ca........................... A1+/P1 5.30 01/11/99 150,000 149,777
Bell Atlantic Network Funding. A1/P1 5.10 01/15/99 200,000 199,601
Bellsouth Telecommunications
Corp. ....................... A1+/P1 5.05 01/20/99 199,000 198,467
Bemis, Inc. .................. A1/P1 5.00 01/04/99 127,000 126,947
Bemis, Inc. .................. A1/P1 5.10 01/14/99 107,000 106,802
Carolina Power & Light Co. ... A1/P1 5.33 01/28/99 103,000 102,587
Central Illinois Light Co. ... A1+/P1 5.30 01/14/99 200,000 199,616
Coca-Cola Co. ................ A1+/P1 5.25 01/15/99 107,000 106,781
Consolidated Natural Gas Co. . A1+/P1 5.12 01/28/99 162,000 161,376
Disney (Walt) Co. ............ A1/P1 5.13 01/05/99 153,000 152,912
Du Pont (E.I.) De Numours &
Co., Inc. ................... A1+/P1 5.18 01/15/99 200,000 199,595
Duke Power Company............ A1+/P1 5.15 01/14/99 151,000 150,718
Florida Power Corp............ A1+/P1 5.25 01/12/99 200,000 199,677
Ford Motor Credit Co. ........ A1/P1 5.32 01/08/99 215,000 214,776
GTE Funding Inc. ............. A1/P1 5.15 02/01/99 200,000 199,110
Heinz (H.J.) Co. ............. A1/P1 5.20 01/14/99 102,000 101,807
IBM Credit Corp. ............. A1/P1 5.08 01/20/99 200,000 199,461
International Lease Fin.
Corp. ....................... A1+/P1 5.18 01/06/99 215,000 214,845
Lucent Technologies, Inc. .... A1/P1 5.15 01/29/99 200,000 199,196
Merrill Lynch & Co., Inc. .... A1+/P1 5.16 01/06/99 200,000 199,856
National Rural Utilities
Corp. ....................... A1+/P1 5.17 01/26/99 200,000 199,280
Northern Ill. Gas Corp. ...... A1+/P1 5.20 01/08/99 125,000 124,873
OGE Energy Corp. ............. A1/P1 5.95 01/05/99 200,000 199,868
PepsiCo, Inc. ................ A1/P1 5.05 01/12/99 150,000 149,767
PetroFina Delaware, Inc. ..... A1/P1 5.38 01/05/99 200,000 199,880
PetroFina Delaware, Inc. ..... A1/P1 4.95 01/08/99 100,000 99,904
Proctor & Gamble Co. ......... A1+/P1 5.20 01/15/99 200,000 199,594
South Carolina Electric & Gas. A1/P1 5.40 02/11/99 200,000 198,769
Toyota Credit de Puerto Rico
Corp. ....................... A1+/P1 5.15 01/08/99 200,000 199,798
----------
5,253,176
----------
Total Short-Term Debt Securities: (Cost: $6,283,019) 100.0%......... $6,283,019
==========
</TABLE>
- -------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investor
Services. Inc.
Abbreviations: FHLB = Federal Home Loan Bank
FHLMC = Federal Home Loan Mortgage Corporation
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1998
<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-- $45,189,268
Bond Fund-- $23,955,305
Money Market Fund-- $6,283,019)....... $70,106,065 $24,937,532 $6,283,019
Cash and cash equivalents................ 1,031,927 590 57,622
Interest and dividends receivable........ 67,676 292,596 --
Shareholders subscriptions receivable.... 58,644 12,000 179,117
----------- ----------- ----------
Total Assets............................. 71,264,312 25,242,718 6,519,758
----------- ----------- ----------
Liabilities:
Payable for securities purchased......... 459,931 -- --
Dividends payable to shareholders........ 4,502 8,051 7,641
Accrued expenses......................... 355 115 21
----------- ----------- ----------
Total Liabilities........................ 464,788 8,166 7,662
----------- ----------- ----------
Net Assets............................... $70,799,524 $25,234,552 $6,512,096
=========== =========== ==========
Shares Outstanding (Note 4).............. 4,693,508 2,425,162 636,338
=========== =========== ==========
Net Asset Value Per Share................ $ 15.08 $ 10.41 $ 10.23
=========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF OPERATIONS
For The Year Ended December 31, 1998
<TABLE>
<CAPTION>
All America Bond Money Market
Fund Fund Fund
------------ ----------- ------------
<S> <C> <C> <C>
Investment Income (Note 1):
Dividends........................... $ 751,021 $ -- $ --
Interest............................ 105,820 1,551,557 226,327
------------ ----------- -----------
Total Investment Income............... 856,841 1,551,557 226,327
------------ ----------- -----------
Expenses (Note 2):
Investment management fees.......... 311,285 106,164 8,216
Directors' (independent) fees and
expenses........................... 25,619 25,619 25,618
Custodian expenses.................. 42,139 4,847 12,403
Accounting expenses................. 30,000 30,000 26,000
Transfer agent fees................. 21,339 16,863 22,954
Registration fees and expenses...... 44,621 26,860 29,039
Audit............................... 12,804 6,936 4,260
Printing and other.................. 34,477 12,441 2,648
------------ ----------- -----------
Total Expenses before reimbursement... 522,284 229,730 131,138
Expense reimbursement................. (9,555) (63,687) (114,706)
------------ ----------- -----------
Net Expenses.......................... 512,729 166,043 16,432
------------ ----------- -----------
Net Investment Income................. 344,112 1,385,514 209,895
------------ ----------- -----------
Net Realized and Unrealized Gain
(Loss) on Investments (Note 1):
Net realized gain (loss) on
investments:
Net proceeds from sales............. 212,021,596 47,507,019 57,674,403
Cost of securities sold............. 210,903,129 47,354,438 57,674,548
------------ ----------- -----------
Net realized gain (loss) on
investments.......................... 1,118,467 152,581 (145)
Net unrealized appreciation
(depreciation) of investments........ 10,652,968 346,222 --
------------ ----------- -----------
Net Realized and Unrealized Gain
(Loss) on Investments................ 11,771,435 498,803 (145)
------------ ----------- -----------
Net Increase in Net Assets Resulting
from Operations...................... $ 12,115,547 $ 1,884,317 $ 209,750
============ =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
All America Fund Bond Fund Money Market Fund
------------------------- ------------------------ ------------------------------------
For the Period
May 1, 1997
(Commencement
For the Year Ended For the Year Ended For the Year Ended of Operations) to
December 31, December 31, December 31, December 31,
------------------------- ------------------------ ------------------ -----------------
1998 1997 1998 1997 1998 1997
----------- ------------ ----------- ----------- ------------------ -----------------
<S> <C> <C> <C> <C> <C> <C>
From Operations:
Net investment income.. $ 344,112 $ 344,286 $ 1,385,514 $ 1,196,626 $ 209,895 $ 102,944
Net realized gain
(loss) on investments. 1,118,467 5,255,923 152,581 224,653 (145) (43)
Net unrealized
appreciation
(depreciation) of
investments........... 10,652,968 8,744,059 346,222 373,683 -- --
----------- ------------ ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets
Resulting From
Operations............ 12,115,547 14,344,268 1,884,317 1,794,962 209,750 102,901
----------- ------------ ----------- ----------- ----------- ----------
Dividend Distributions
(Note 5):
From net investment
income................ (355,096) (342,956) (1,398,540) (1,195,133) (209,896) (102,362)
From capital gains..... (608,849) (4,524,483) (535,067) (25,567) -- --
----------- ------------ ----------- ----------- ----------- ----------
Total Distributions.... (963,945) (4,867,439) (1,933,607) (1,220,700) (209,896) (102,362)
----------- ------------ ----------- ----------- ----------- ----------
Capital Share
Transactions (Note 4):
Net Proceeds from sale
of shares............. 2,124,083 2,120,648 1,216,884 1,388,091 5,332,372 7,907,064
Dividend reinvestments. 956,071 4,852,995 1,919,969 1,219,471 193,670 100,093
Cost of shares
redeemed.............. (105,395) (15,290,000) -- (2,051,357) (6,525,496) (496,000)
----------- ------------ ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets From
Capital Share
Transactions........... 2,974,759 (8,316,357) 3,136,853 556,205 (999,454) 7,511,157
----------- ------------ ----------- ----------- ----------- ----------
Net Increase (Decrease)
in Net Assets.......... 14,126,361 1,160,472 3,087,563 1,130,467 (999,600) 7,511,696
Net Assets, Beginning of
Year/Period............ 56,673,163 55,512,691 22,146,989 21,016,522 7,511,696 --
----------- ------------ ----------- ----------- ----------- ----------
Net Assets, End of
Year/Period............ $70,799,524 $ 56,673,163 $25,234,552 $22,146,989 $ 6,512,096 $7,511,696
=========== ============ =========== =========== =========== ==========
Components of Net
Assets:
Paid-in capital........ $45,096,275 $ 42,121,516 $24,451,023 $21,314,170 $ 6,511,703 $7,511,157
Accumulated
undistributed net
investment income
(loss)................ (6,652) 4,332 (6,531) 6,495 581 582
Accumulated
undistributed net
realized gain (loss)
on investments........ 793,104 283,486 (192,167) 190,319 (188) (43)
Unrealized appreciation
(depreciation) of
investments........... 24,916,797 14,263,829 982,227 636,005 -- --
----------- ------------ ----------- ----------- ----------- ----------
Net Assets, End of
Year/Period............ $70,799,524 $ 56,673,163 $25,234,552 $22,146,989 $ 6,512,096 $7,511,696
=========== ============ =========== =========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
All America Fund Bond Fund Money Market Fund
----------------------- ----------------------- -----------------
Years Ended Years Ended Years Ended
December 31, December 31, December 31,
----------------------- ----------------------- -----------------
1998 1997 1996(e) 1998 1997 1996(e) 1998 1997(d)
------ ------ ------- ------ ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Year/Period............ $12.65 $10.98 $10.00 $10.41 $10.13 $10.01 $10.15 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income... 0.07 0.08 0.06 0.61 0.59 0.38 0.52 0.35
Net gains or losses on
securities (realized
and unrealized)........ 2.57 2.77 0.98 0.24 0.29 0.12 -- --
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment
Operations............. 2.64 2.85 1.04 0.85 0.88 0.50 0.52 0.35
------ ------ ------ ------ ------ ------ ------ ------
Less dividend
distributions:
From net investment
income................. (0.08) (0.08) (0.06) (0.62) (0.59) (0.38) (0.44) (0.20)
From capital gains...... (0.13) (1.10) -- (0.23) (0.01) -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions..... (0.21) (1.18) (0.06) (0.85) (0.60) (0.38) (0.44) (0.20)
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of
Year/Period............ $15.08 $12.65 $10.98 $10.41 $10.41 $10.13 $10.23 $10.15
====== ====== ====== ====== ====== ====== ====== ======
Total return (%) (b).... 21.0 26.0 10.4 8.3 8.9 5.0 5.3 3.5
Net assets, end of
year/period ($
millions).............. 70.8 56.7 55.5 25.2 22.1 21.0 6.5 7.5
Ratio of net investment
income to average net
assets (%)............. 0.55 0.59 0.95 5.84 5.69 5.63 5.14 5.17 (a)
Ratio of expenses to
average net assets (%). 0.84 0.84 0.87 0.97 1.00 0.90 3.21 2.47 (a)
Ratio of expenses to
average net assets
after expense
reimbursement (%)...... 0.82 0.81 0.85 0.70 0.70 0.70 0.40 0.40 (a)
Portfolio turnover rate
(%) (c)................ 41.25 35.96 9.33 33.32 56.18 17.85 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) Commenced operations May 1, 1997.
(e) Commenced operations May 1, 1996.
N/A = Not Applicable.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies and Organization
Mutual of America Institutional Funds, Inc. (the "Investment Company") was
incorporated on October 27, 1994 under the laws of Maryland and is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company (a mutual fund) currently issuing three series of common
stock representing shares of the All America Fund, Bond Fund, and Money Market
Fund. Each fund has its own investment objective and policies. Shares of the
funds of the Investment Company are offered on a no-load basis through its
distributor, Mutual of America Securities Corporation, a registered broker-
dealer and affiliate of the Investment Company's investment management
adviser, Mutual of America Capital Management Corporation (the "Adviser").
The Investment Company is designed primarily as an investment vehicle for
endowments, foundations, corporations, municipalities and other public
entities and other institutional investors.
The All America Fund and Bond Fund commenced operations on May 1, 1996. The
Money Market Fund commenced operations on May 1, 1997.
The following is a summary of the significant accounting policies of the
Investment Company:
Security Valuation--Investment securities are valued as follows:
Equity securities are valued at the last sales price on the principal
exchange on which the security is traded. If there is no trading volume for a
particular valuation day, the last bid price is used. For any equity
securities traded in the over-the-counter market, 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 value 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.
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's indexed assets portfolio, in order to remain more
fully invested in the equity markets while minimizing its transaction costs,
may purchase stock index futures contracts. Initial cash margin deposits
(represented by cash or Treasury bills) are made upon entering into futures
contracts. (This initial margin, maintained in a segregated account, is equal
to approximately 5% of the contract amount, and does not involve the borrowing
of funds to finance the transaction). During the period the futures contract
is outstanding, changes in the value of the contract are recognized as
unrealized gains or losses by "marking-to-market" on a daily basis to reflect
the market value of the contract at the end of each trading day. Futures
contracts are valued at the settlement price established each day by the
exchange on which traded. Depending upon whether unrealized gains or losses
are incurred, variation margin payments are received or made. When the
contract is closed, a realized gain or loss from futures transactions is
recorded, equal to the net variation margin received or paid over the period
of the contract.
Investment Income--Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Foreign source tax withheld from dividends
is recorded as a reduction from dividend income. Should reclamation succeed,
such amounts are recorded as income upon collection.
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.
19
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(Continued)
2. Expenses and Other Transactions with Affiliates
Organizational expenses of the Investment Company were borne by its sponsor,
Mutual of America Capital Management Corporation, the Investment Company's
Adviser.
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 subadvisers responsible for providing management
services for a portion of the fund's assets. The Adviser (not the fund) is
responsible for compensation payable under such Sub-Advisory Agreements.
Each of the funds of the Investment Company is charged for those expenses
which can be directly attributed to a fund's operation. Expenses which cannot
be so attributed are generally allocated among the funds based on relative net
assets.
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 annual rate established for the All America Fund was reduced to .30% in
early August, 1997 and was further reduced to .20% on October 1, 1997 so as to
maintain as close a relationship as possible between the established rate
(charged daily) and the fund's actual expenses, but not to exceed the
respective rates under the Adviser's existing expense limitation agreement. In
January, 1998 this charge was adjusted to .35% in recognition of the fund's
actual expenses, but reduced in December, 1998 to an average annual rate of
.11% to adjust to the fund's actual expenses through year-end.
The Adviser's voluntary agreement to limit each fund's total expenses
(excluding brokerage commissions, transfer taxes/fees and extraordinary
expenses) to an annual rate of .85% of the net assets of the All America Fund,
.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 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. The compensation paid by the funds for these
services is subject to the voluntary expense reimbursement of the Adviser
described above.
A subadviser placed a portion of its portfolio transactions with its
affiliated broker-dealer; such commissions amounted to $15,470 or 27% of the
fund's total commissions and represented 23% of the aggregate amount of
commissionable transactions.
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, 1998 was as follows:
<TABLE>
<CAPTION>
All America Bond
Fund Fund
----------- ----------
<S> <C> <C>
Cost of investment purchases....................... $26,147,953 $8,339,191
=========== ==========
Proceeds from sales of investments................. $24,696,925 $ 200,000
=========== ==========
The cost of investment purchases and proceeds from
sales of U.S. Government (excluding short-term)
securities was as follows:
Cost of investment purchases..................... $ -- $ 627,050
=========== ==========
Proceeds from sales of investments............... $ -- $7,323,002
=========== ==========
</TABLE>
20
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS--(Continued)
For the Money Market Fund, the cost of short-term securities purchases was
$56,298,483. Net proceeds from sales and redemptions was $57,674,403.
At December 31, 1998 the net unrealized appreciation (depreciation) of
investments, based on cost for Federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
All America Bond Money Market
Fund Fund Fund
----------- ----------- ------------
<S> <C> <C> <C>
Unrealized appreciation............. $26,929,712 $ 1,124,875 $ --
Unrealized (depreciation)........... (2,012,915) (142,648) --
----------- ----------- ----------
Net unrealized appreciation
(depreciation)..................... $24,916,797 $ 982,227 --
=========== =========== ==========
Aggregate cost of investments for
Federal Income tax purposes........ $45,189,268 $23,955,305 $6,283,019
=========== =========== ==========
</TABLE>
4. Capital Share Activity and Ownership
At December 31, 1998 one billion shares of common stock has 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, 1998 were as
follows:
<TABLE>
<CAPTION>
All America Bond Money Market
Fund Fund Fund
----------- ------- ------------
<S> <C> <C> <C>
Shares issued............................. 152,245 114,465 515,796
Shares issued as reinvestment of
dividends................................ 67,564 183,287 18,999
Shares redeemed........................... (7,410) -- (638,681)
------- ------- --------
Net increase (decrease)................... 212,399 297,752 (103,886)
======= ======= ========
</TABLE>
As at December 31, 1998, Mutual Of America Life Insurance Company and its
subsidiaries (affiliates of the Adviser) were shareholders of each fund's
outstanding shares as follows:
<TABLE>
<S> <C>
All America Fund............................ 93.2%
Bond Fund................................... 93.4%
Money Market Fund........................... 21.5%
</TABLE>
5. Dividends
On June 30, 1998 and September 15, 1998 dividend distributions were declared
and paid from accumulated net investment income to shareholders of record on
June 29, 1998, and September 14, 1998. On December 31, 1998, a dividend
distribution consisting of net investment income and capital gains was
declared and paid to shareholders of record on December 30, 1998. 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................. $355,096 $1,398,540 $209,896
Net realized capital gains............ 608,849 535,067 --
-------- ---------- --------
Total dividend distributions............ $963,945 $1,933,607 $209,896
======== ========== ========
Dividend amounts per share.............. $.208486 $ .850965 $.444223
======== ========== ========
</TABLE>
6. Subsequent Event
During February 1999, Mutual of America Life Insurance Company redeemed 1.1
million shares of the All America Fund realizing proceeds of approximately
$16.6 million, reducing the Fund's net assets by a corresponding amount.
21
<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, 1998, and the related statement
of operations for the year then ended and the statement of changes in net
assets for each period in the two years then ended and the financial
highlights for each period in the three 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 confirmation of securities
owned as of December 31, 1998 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 America Institutional
Funds, Inc. as of December 31, 1998, 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 three
years then ended in conformity with generally accepted accounting principles.
New York, New York
February 19, 1999
22
<PAGE>
Mutual of America Institutional Funds, Inc.
Distributed by Mutual of America Securities Corporation
320 Park Avenue New York, NY 10022-6839 800 914-8716
